[Pages S4444-S4471]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

MILITARY CONSTRUCTION AND VETERANS AFFAIRS APPROPRIATIONS ACT, 2008

Mr. REID. Mr. President, I ask the Chair to lay before the Senate a
message from the House with respect to H.R. 2642, the supplemental
appropriations bill.
The PRESIDING OFFICER. The clerk will report the message.
The assistant legislative clerk read as follows:

H.R. 2642

Resolved, That the House agree to the amendment of the
Senate to the bill (H.R. 2642) entitled ``An Act making
appropriations for military construction, the Department of
Veterans Affairs, and related agencies for the fiscal year
ending September 30, 2008, and for other purposes'', with the
following House amendments to Senate amendment:

(1)Page 60 of the Senate engrossed amendment, after line 3,
insert the following:

TITLE X--POLICY REGARDING OPERATIONS IN IRAQ

sense of congress regarding united states military personnel

Sec. 10001. It is the sense of the Congress that the
performance of United States military personnel should be
commended, their courage and

[[Page S4445]]

sacrifice have been exceptional, and when they come home,
their service should be recognized appropriately.

units deployed for combat to be fully mission capable

Sec. 10002. (a) The Congress finds that it is the policy
of the Department of Defense that units should not be
deployed for combat unless they are rated ``fully mission
capable''.
(b) None of the funds made available in this or any other
Act may be used to deploy any unit of the Armed Forces to
Iraq unless the President has certified in writing to the
Committees on Appropriations and the Committees on Armed
Services of the House of Representatives and the Senate at
least 15 days in advance of the deployment that the unit is
fully mission capable in advance of entry into Iraq.
(c) For purposes of subsection (b), the term ``fully
mission capable'' means capable of performing assigned
mission essential tasks to the prescribed standards under the
conditions expected in the theater of operation, consistent
with the guidelines set forth in the DoD Directive 7730.65,
Subject: Department of Defense Readiness Reporting System;
the Interim Force Allocation Guidance to the Global Force
Management Board, dated February 6, 2008; and Army Regulation
220-1, Subject: Unit Status Reporting, dated December 19,
2006.
(d) The President, by certifying in writing to the
Committees on Appropriations and the Committees on Armed
Services of the House of Representatives and the Senate that
the deployment to Iraq of a unit that is not assessed mission
capable is required for reasons of national security and by
submitting along with the certification a report in
classified and unclassified form detailing the particular
reason or reasons why the unit's deployment is necessary
despite the unit commander's assessment that the unit is not
mission capable, may waive the limitations prescribed in
subsection (b) on a unit-by-unit basis.

time limit on combat deployments

Sec. 10003. (a) The Congress finds that it is the policy
of the Department of Defense that Army, Army Reserve, and
National Guard units should not be deployed for combat beyond
365 days and that Marine Corps and Marine Corps Reserve units
should not be deployed for combat beyond 210 days.
(b) None of the funds made available in this or any other
Act may be obligated or expended to initiate the development
of, continue the development of, or execute any order that
has the effect of extending the deployment for Operation
Iraqi Freedom of--
(1) any unit of the Army, Army Reserve, or Army National
Guard beyond 365 days; or
(2) any unit of the Marine Corps or Marine Corps Reserve
beyond 210 days.
(c) The limitation prescribed in subsection (b) shall not
be construed to require force levels in Iraq to be decreased
below the total United States force levels in Iraq as of
January 9, 2007.
(d) The President may waive the limitations prescribed in
subsection (b) on a unit-by-unit basis if the President
certifies in writing to the Committees on Appropriations and
the Committees on Armed Services of the House of
Representatives and the Senate that the extension of a unit's
deployment in Iraq beyond the period applicable to the unit
under such subsection is required for reasons of national
security. The certification shall include a report, in
classified and unclassified form, detailing the particular
reason or reasons why the unit's extended deployment is
necessary.

dwell time between combat deployments

Sec. 10004. (a) The Congress finds that it is the policy
of the Department of Defense that an Army, Army Reserve, or
National Guard unit should not be redeployed for combat if
the unit has been deployed within the previous 365
consecutive days and that a Marine Corps or Marine Corps
Reserve unit should not be redeployed for combat if the unit
has been deployed within the previous 210 days.
(b) None of the funds made available in this or any other
Act may be obligated or expended to initiate the development
of, continue the development of, or execute any order that
has the effect of deploying for Operation Iraqi Freedom of--
(1) any unit of the Army, Army Reserve, or Army National
Guard if such unit has been deployed within the previous 365
consecutive days; or
(2) any unit of the Marine Corps or Marine Corps Reserve if
such unit has been deployed within the previous 210
consecutive days.
(c) The limitation prescribed in subsection (b) shall not
be construed to require force levels in Iraq to be decreased
below the total United States force levels in Iraq as of
January 9, 2007.
(d) The President may waive the limitations prescribed in
subsection (b) on a unit-by-unit basis if the President
certifies in writing to the Committees on Appropriations and
the Committees on Armed Services of the House of
Representatives and the Senate that the redeployment of a
unit to Iraq in advance of the expiration of the period
applicable to the unit under such subsection is required for
reasons of national security. The certification shall include
a report, in classified and unclassified form, detailing the
particular reason or reasons why the unit's early
redeployment is necessary.

limitation on interrogation techniques

Sec. 10005. (a) No individual in the custody or under the
effective control of an element of the intelligence community
or instrumentality thereof, regardless of nationality or
physical location, shall be subject to any treatment or
technique of interrogation not authorized by the United
States Army Field Manual on Human Intelligence Collector
Operations.
(b) In this section, the term ``instrumentality'', with
respect to an element of the intelligence community, means a
contractor or subcontractor at any tier of the element of the
intelligence community.

registration with the international committee of the red cross

Sec. 10006. (a) None of the funds appropriated or
otherwise made available in this or any other Act may be used
to detain any individual who is in the custody or under the
effective control of an element of the intelligence community
or an instrumentality thereof unless the International
Committee of the Red Cross is provided notification of the
detention of and access to such person in a timely manner and
consistent with the practices of the Armed Forces of the
United States.
(b) For purposes of this section, the term
``instrumentality'', with respect to an element of the
intelligence community, means a contractor or subcontractor
at any tier of the element of the intelligence community.
(c) Nothing in this section shall be construed to create or
otherwise imply the authority to detain, or to limit or
otherwise affect any other rights or obligations which may
arise under the Geneva Conventions or other laws, or to state
all of the situations under which notification to and access
for the International Committee of the Red Cross is required
or allowed.

prohibition of permanent bases in iraq

Sec. 10007. None of the funds appropriated or otherwise
made available in this or any other Act may be obligated or
expended by the United States Government for a purpose as
follows:
(1) To establish any military installation or base for the
purpose of providing for the permanent stationing of United
States Armed Forces in Iraq.
(2) To exercise United States control over any oil resource
of Iraq.

limitation on defense agreements with the government of iraq

Sec. 10008. (a) None of the funds appropriated or
otherwise made available in this or any other Act may be used
to negotiate, enter into, or implement any agreement with the
Government of Iraq that includes security assurances for
mutual defense, unless the agreement--
(1) is in the form of a treaty requiring the advice and
consent of the Senate (or is intended to take that form in
the case of an agreement under negotiation); or
(2) is specifically authorized by a law enacted after the
date of enactment of this Act.
(b) For purposes of this section, an agreement shall be
considered to include security assurances for mutual defense
if it includes provisions addressing any of the following:
(1) A binding commitment to deploy United States Armed
Forces in defense of Iraq, or of any government or faction in
Iraq, against any foreign or domestic threat.
(2) The number of United States Armed Forces personnel to
be deployed to, or stationed in, Iraq.
(3) The mission of United States Armed Forces deployed to
Iraq.
(4) The duration of the presence of United States Armed
Forces in Iraq.

prohibition on agreements subjecting armed forces to iraqi criminal
jurisdiction

Sec. 10009. None of the funds appropriated or otherwise
made available in this or any other Act may be used to
negotiate, enter into, or implement an agreement with the
Government of Iraq that would subject members of the Armed
Forces of the United States to the jurisdiction of Iraq
criminal courts or punishment under Iraq law.

requirement for matching funds from government of iraq

Sec. 10010. (a) Notwithstanding any other provision of
law, funds appropriated or otherwise made available in this
or any other Act for assistance for Iraq, including training,
capacity building, and construction and repair of
infrastructure, shall be available only to the extent that
the Government of Iraq matches such assistance on a dollar-
for-dollar basis.
(b) subsection (a) shall not apply to--
(1) grants and cooperative agreements for programs to
promote democracy and human rights;
(2) the Community Action Program and other direct
assistance to non-governmental organizations;
(3) humanitarian demining;
(4) assistance for refugees, internally displaced persons,
and civilian victims of military operations;
(5) intelligence or intelligence-related activities; or
(6) projects with an estimated cost of less than $750,000
undertaken through the Commander's Emergency Response
Program.
(c) The Secretary of State and the Secretary of Defense
shall certify to the Committees on Appropriations of the
House of Representatives and Senate, prior to the initial
obligation by their respective Departments of funds covered
by the limitation in subsection (a), that the Government of
Iraq has committed to obligate matching funds on a dollar-
for-dollar basis. The Secretary of State shall submit a
report to the Committees on Appropriations not later than
September 30, 2009 detailing the amounts of funds obligated
and expended by the Government of Iraq to meet the
requirements of this section.
(d) Not later than 45 days after enactment of this Act, the
Secretary of State shall submit a report to the Committees on
Appropriations detailing the amounts provided by the
Government of Iraq since June 30, 2004, to assist Iraqi
refugees in Syria, Jordan, and elsewhere, and the amount of
such assistance the Government of Iraq plans to provide in
fiscal year 2008. The Secretary shall work expeditiously with
the Government of Iraq to establish an account within its
annual budget sufficient to, at a minimum, match United
States contributions on a dollar-for-dollar basis to
organizations and programs for the purpose of assisting Iraqi
refugees.

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(e) As part of the report required by section 609 of
division L of the Consolidated Appropriations Act, 2008
(Public Law 110-161), the Secretary of Defense shall submit
to Congress a report on the most recent annual budget for the
Government of Iraq, including--
(1) a description of amounts budgeted for support of Iraqi
security and police forces and an assessment of how planned
funding will impact the training, equipping and overall
readiness of those forces;
(2) an assessment of the capacity of the Government of Iraq
to implement the budget as planned, including reports on
year-to-year spend rates, if available; and
(3) a description of any budget surplus or deficit, if
applicable.

partial reimbursement from iraq for fuel costs

Sec. 10011. (a) None of the funds made available in this
Act under the heading ``Operation and Maintenance, Defense-
Wide'' for the Office of the Secretary of Defense or
Washington Headquarters Services may be obligated or expended
until the agreement described in subsection (b)(1) is
complete and the report required by subsection (b)(2) has
been transmitted to Congress, except that the limitation in
this subsection may be waived if the President determines and
certifies to the Committees on Appropriations of the House of
Representatives and Senate that such waiver is in the
national security interests of the United States.
(b) Not later than 90 days after enactment of this Act, the
President shall--
(1) complete an agreement with the Government of Iraq to
subsidize fuel costs for United States Armed Forces operating
in Iraq so the price of fuel per gallon to those forces is
equal to the discounted price per gallon at which the
Government of Iraq is providing fuel for domestic Iraqi
consumption; and
(2) transmit a report to the Committees on Appropriations
on the details and terms of that agreement.
(c) Amounts received from the Government of Iraq under an
agreement described in subsection (b)(1) shall be credited to
the appropriations or funds that incurred obligations for the
fuel costs being subsidized, as determined by the Secretary
of Defense.

timetable for redeployment of united states forces from iraq

Sec. 10012. (a) Notwithstanding any other provision of
law, funds appropriated or otherwise made available in this
Act may be used to plan and execute a safe and orderly
redeployment of United States Armed Forces from Iraq.
(b) Within 30 days after enactment of this Act, the
President shall commence an immediate and orderly
redeployment of United States Armed Forces from Iraq, with a
goal of completing such redeployment within 18 months. The
President shall endeavor to begin such redeployment with
units of the Armed Forces that have been deployed in excess
of 365 days, except to the extent those units are needed to
provide for the safe withdrawal of other units of the Armed
Forces or to protect United States and Coalition personnel
and infrastructure.
(c) After completion of the redeployment required by
subsection (b), members of the United States Armed Forces may
be deployed to, or maintained in, Iraq only to the extent
necessary to carry out the following missions:
(1) Protecting the diplomatic facilities, Armed Forces, and
citizens of the United States in Iraq.
(2) Conducting limited training of, equipping, and
providing logistical and intelligence support to, Iraqi
security forces.
(3) Engaging in targeted counterterrorism operations
against al-Qaeda, groups affiliated with al-Qaeda, and other
terrorist organizations in Iraq.
(d) Not later than July 1, 2008, and every 90 days
thereafter, the Secretary of Defense shall submit to the
congressional defense committees a report setting forth the
following:
(1) The current plan for and the status of the reduction of
United States Armed Forces in Iraq and the transition of the
Armed Forces in Iraq to a limited presence whose missions do
not exceed the missions specified in subsection (c),
including the associated force reductions and adjustments and
expectations with respect to timelines and the force levels
anticipated to perform those missions.
(2) A comprehensive current description of efforts to
prepare for the reduction and transition of United States
Armed Forces in Iraq in accordance with this section and to
limit any destabilizing consequences of such reduction and
transition, including a description of efforts to work with
the United Nations and countries in the region toward that
objective.
(e) Not later than 45 days after enactment of this Act, the
Secretary of State shall provide to the Committees on
Appropriations of the House of Representatives and Senate a
strategy for civilian-led post-conflict stabilization and
reconstruction assistance for Iraq. The strategy (which may
be provided in classified form if necessary) shall include--
(1) the plans and timetable for transfer of all
responsibility for United States post-conflict stabilization
and reconstruction assistance from the Department of Defense
to the Department of State and the United States Agency for
International Development; and
(2) the staff, security and resource requirements for
United States diplomatic efforts and assistance programs in
Iraq.

TITLE XI--REFORMS RELATED TO WAR PROFITEERING AND CONTRACTORS

CHAPTER 1--ADJUSTMENT OF WARTIME STATUTE OF LIMITATIONS

adjustment of wartime statute of limitations

Sec. 11101. Section 3287 of title 18, United States Code,
is amended--
(1) by inserting ``or Congress has enacted a specific
authorization for the use of the Armed Forces, as described
in section 5(b) of the War Powers Resolution (50 U.S.C.
1544(b)),'' after ``is at war'';
(2) by inserting ``or directly connected with or related to
the authorized use of the Armed Forces'' after ``prosecution
of the war'';
(3) by striking ``three years'' and inserting ``5 years'';
(4) by striking ``proclaimed by the President'' and
inserting ``proclaimed by a Presidential proclamation, with
notice to Congress,''; and
(5) by adding at the end the following: ``For purposes of
applying such definitions in this section, the term `war'
includes a specific authorization for the use of the Armed
Forces, as described in section 5(b) of the War Powers
Resolution (50 U.S.C. 1544(b)).''.

CHAPTER 2--WAR PROFITEERING AND FRAUD

war profiteering and fraud

Sec. 11201. (a) Prohibition on War Profiteering.--
(1) In general.--Chapter 47 of title 18, United States
Code, is amended by adding at the end the following:

``Sec. 1041. War profiteering and fraud

``(a) Prohibition.--Whoever, in any matter involving a
contract with, or the provision of goods or services to, the
United States or a provisional authority, in connection with
a mission of the United States Government overseas,
knowingly--
``(1)(A) executes or attempts to execute a scheme or
artifice to defraud the United States or that authority; or
``(B) materially overvalues any good or service with the
intent to defraud the United States or that authority;
shall be fined not more than $1,000,000 or imprisoned not
more than 20 years, or both; or
``(2) in connection with the contract or the provision of
those goods or services--
``(A) falsifies, conceals, or covers up by any trick,
scheme, or device a material fact;
``(B) makes any materially false, fictitious, or fraudulent
statements or representations; or
``(C) makes or uses any materially false writing or
document knowing the same to contain any materially false,
fictitious, or fraudulent statement or entry;
shall be fined not more than $1,000,000 or imprisoned not
more than 10 years, or both.
``(b) Extraterritorial Jurisdiction.--There is
extraterritorial Federal jurisdiction over an offense under
this section.
``(c) Venue.--A prosecution for an offense under this
section may be brought--
``(1) as authorized by chapter 211 of this title;
``(2) in any district where any act in furtherance of the
offense took place; or
``(3) in any district where any party to the contract or
provider of goods or services is located.''.
(2) Table of sections.--The table of sections for chapter
47 of such title is amended by adding at the end the
following:

``1041. War profiteering and fraud.''.
(b) Criminal Forfeiture.--Section 982(a)(2)(B) of title 18,
United States Code, is amended by striking ``or 1030'' and
inserting ``1030, or 1041''.
(c) Money Laundering.--Section 1956(c)(7)(D) of title 18,
United States Code, is amended by inserting ``section 1041
(relating to war profiteering and fraud),'' after
``liquidating agent of financial institution),''.
(d) RICO.--Section 1961(1) of title 18, United States Code,
is amended by inserting ``section 1041 (relating to war
profiteering and fraud),'' after ``in connection with access
devices),''.

CHAPTER 3--MILITARY EXTRATERRITORIAL JURISDICTION

short title

Sec. 11301. This chapter may be cited as the ``MEJA
Expansion and Enforcement Act of 2008''.

legal status of contract personnel

Sec. 11302. (a) Clarification of Military Extraterritorial
Jurisdiction Act.--
(1) Inclusion of federal employees and contractors.--
Section 3261(a) of title 18, United States Code, is amended--
(A) in paragraph (1), by striking ``or'' at the end;
(B) in paragraph (2), by striking the comma at the end and
inserting a semicolon; and
(C) by inserting after paragraph (2) the following new
paragraphs:
``(3) while employed by any Department or agency of the
United States other than the Armed Forces in a foreign
country in which the Armed Forces are conducting a qualifying
military operation; or
``(4) while employed as a security officer or security
contractor by any Department or agency of the United States
other than the Armed Forces,''.
(2) Definitions.--Section 3267 of title 18, United States
Code, is amended--
(A) in paragraph (1), by striking subparagraph (A) and
inserting the following new subparagraph:
``(A) employed by or performing services under a contract
with or grant from the Department of Defense (including a
nonappropriated fund instrumentality of the Department) as--
``(i) a civilian employee (including an employee from any
other Executive agency on temporary assignment to the
Department of Defense);
``(ii) a contractor (including a subcontractor at any
tier); or
``(iii) an employee of a contractor (including a
subcontractor at any tier);''; and
(B) by adding at the end the following new paragraphs:
``(5) The term `employed by any Department or agency of the
United States other than the Armed Forces' means--

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``(A) employed by or performing services under a contract
with or grant from any Department or agency of the United
States, or any provisional authority funded in whole or
substantial part or created by the United States Government,
other than the Department of Defense as--
``(i) a civilian employee;
``(ii) a contractor (including a subcontractor at any
tier); or
``(iii) an employee of a contractor (including a
subcontractor at any tier);
``(B) present or residing outside the United States in
connection with such employment; and
``(C) not a national of or ordinarily a resident in the
host nation.
``(6) The term `employed as a security officer or security
contractor by any Department or agency of the United States
other than the Armed Forces' means--
``(A) employed by or performing services under a contract
with or grant from any Department or agency of the United
States, or any provisional authority funded in whole or
substantial part or created by the United States Government,
other than the Department of Defense as--
``(i) a civilian employee;
``(ii) a contractor (including a subcontractor at any
tier); or
``(iii) an employee of a contractor (including a
subcontractor at any tier);
``(B) authorized in the course of such employment--
``(i) to provide physical protection to or security for
persons, places, buildings, facilities, supplies, or means of
transportation;
``(ii) to carry or possess a firearm or dangerous weapon,
as defined by section 930(g)(2) of this chapter;
``(iii) to use force against another; or
``(iv) to supervise individuals performing the activities
described in clause (i), (ii) or (iii);
``(C) present or residing outside the United States in
connection with such employment; and
``(D) not a national of or ordinarily resident in the host
nation.
``(7) The term `qualifying military operation' means--
``(A) a military operation covered by a declaration of war
or an authorization of the use of military force by Congress;
``(B) a contingency operation (as defined in section 101 of
title 10); or
``(C) any other military operation outside of the United
States, including a humanitarian assistance or peace keeping
operation, provided such operation is conducted pursuant to
an order from or approved by the Secretary of Defense.''.
(b) Department of Justice Inspector General Report.--
(1) Report required.--Not later than 180 days after the
date of the enactment of this Act, the Inspector General of
the Department of Justice, in consultation with the
Inspectors General of the Department of Defense, the
Department of State, the United States Agency for
International Development, the Department of Agriculture, the
Department of Energy, and other appropriate Federal
departments and agencies, shall submit to Congress a report
in accordance with this subsection.
(2) Content of report.--The report under paragraph (1)
shall include, for the period beginning on October 1, 2001,
and ending on the date of the report--
(A) unless the description pertains to non-public
information that relates to an ongoing investigation or
criminal or civil proceeding under seal, a description of any
alleged violations of section 3261 of title 18, United States
Code, reported to the Inspector Generals identified in
paragraph (1) or the Department of Justice, including--
(i) the date of the complaint and the type of offense
alleged;
(ii) whether any investigation was opened or declined based
on the complaint;
(iii) whether the investigation was closed, and if so, when
it was closed;
(iv) whether a criminal or civil case was filed as a result
of the investigation, and if so, when it was filed; and
(v) any charges or complaints filed in those cases; and
(B) unless the description pertains to non-public
information that relates to an ongoing investigation or
criminal or civil proceeding under seal, and with appropriate
safeguards for the protection of national security
information, a description of any shooting or escalation of
force incidents in Iraq or Afghanistan involving alleged
misconduct by persons employed as a security officer or
security contractor by any Department or agency of the United
States, and any official action taken against such persons.
(3) Form of report.--The report under paragraph (1) shall
be submitted in unclassified form, but may contain a
classified annex as appropriate.

investigative units for contractor oversight

Sec. 11303. (a) Establishment of Investigative Units for
Contractor Oversight.--
(1) In general.--The Attorney General, in consultation with
the Secretary of Defense, the Secretary of State, the
Secretary of Homeland Security, and the heads of any other
Federal departments or agencies responsible for employing
private security contractors or contractors (or
subcontractors at any tier) in a foreign country where the
Armed Forces are conducting a qualifying military operation--
(A) shall assign adequate personnel and resources through
the creation of Investigative Units for Contractor Oversight
to investigate allegations of criminal violations under
paragraphs (3) and (4) of section 3261(a) of title 18, United
States Code (as amended by section 11302(a) of this chapter);
and
(B) may authorize the overseas deployment of law
enforcement agents and other Department of Justice personnel
for that purpose.
(2) Rule of construction.--Nothing in this subsection shall
limit any existing authority of the Attorney General or any
Federal law enforcement agency to investigate violations of
Federal law or deploy personnel overseas.
(b) Referral for Prosecution.--Upon conclusion of an
investigation of an alleged violation of sections 3261(a)(3)
and 3261(a)(4) of title 18, United States Code, an
Investigative Unit for Contractor Oversight may refer the
matter to the Attorney General for further action, as
appropriate in the discretion of the Attorney General.
(c) Responsibilities of the Attorney General.--
(1) Investigation.--The Attorney General shall have the
principal authority for the enforcement of sections
3261(a)(3) and 3261(a)(4) of title 18, United States Code,
and shall have the authority to initiate, conduct, and
supervise investigations of any alleged violations of such
sections 3261(a)(3) and 3261(a)(4).
(2) Assistance on request of the attorney general.--
Notwithstanding any statute, rule, or regulation to the
contrary, the Attorney General may request assistance from
the Secretary of Defense, the Secretary of State, or the head
of any other Executive agency to enforce this chapter. This
requested assistance may include the assignment of additional
personnel and resources to an Investigative Unit for
Contractor Oversight established by the Attorney General
under subsection (a).
(3) Annual report.--Not later than one year after the date
of enactment of this Act, and annually thereafter, the
Attorney General, in consultation with the Secretary of
Defense and the Secretary of State, shall submit to Congress
a report containing--
(A) the number of violations of sections 3261(a)(3) and
3261(a)(4) of title 18, United States Code, received,
investigated, and referred for prosecution by Federal law
enforcement authorities during the previous year;
(B) the number and location of Investigative Units for
Contractor Oversight deployed to investigate violations of
such sections 3261(a)(3) and 3261(a)(4) during the previous
year; and
(C) any recommended changes to Federal law that the
Attorney General considers necessary to enforce this chapter
and the amendments made by this chapter and chapter 212 of
title 18, United States Code.

removal procedures for non-department of defense employees and
contractors

Sec. 11304. (a) Attorney General Regulations.--Section
3266 of title 18, United States Code, is amended by adding at
the end the following:
``(d) The Attorney General, after consultation with the
Secretary of Defense, the Secretary of State, and the
Director of National Intelligence, may prescribe regulations
governing the investigation, apprehension, detention,
delivery, and removal of persons described in sections
3261(a)(3) and 3261(a)(4) and describing the notice due, if
any, foreign nationals potentially subject to the criminal
jurisdiction of the United States under those sections.''.
(b) Clarifying and Conforming Amendments.--
(1) In general.--Chapter 212 of title 18, United States
Code, is amended--
(A) in section 3261(a)--
(i) by inserting ``against the United States'' after
``offense'' the first time it appears; and
(ii) by inserting ``within the United States or'' after
``had been engaged in'';
(B) in section 3262--
(i) in subsection (a), by striking ``section 3261(a)'' the
first place it appears and inserting ``section 3261(a)(1) or
3261(a)(2)'';
(ii) by redesignating subsection (b) as subsection (c); and
(iii) by inserting after subsection (a) the following new
subsection (b):
``(b) The Attorney General may designate and authorize any
person serving in a law enforcement position in the
Department of Justice, the Department of Defense, the
Department State, or any other Executive agency to arrest, in
accordance with applicable international agreements, outside
the United States any person described in section 3261(a) if
there is probable cause to believe that such person violated
section 3261(a).'';
(C) in section 3263(a), by striking ``section 3261(a)'' the
first place it appears and inserting ``section 3261(a)(1) or
3261(a)(2)'';
(D) in section 3264(a), by inserting ``described in section
3261(a)(1) or 3261(a)(2)'' before ``arrested'';
(E) section 3265(a)(1) by inserting ``described in section
3261(a)(1) or 3261(a)(2)'' before ``arrested''; and
(F) in section 3266(a), by striking ``under this chapter''
and inserting ``described in section 3261(a)(1) or
3261(a)(2)''.
(2) Additional amendment.--Section 7(9) of title 18, United
States Code, is amended by striking ``section 3261(a)'' and
inserting ``section 3261(a)(1) or 3261(a)(2)''.

rules of construction

Sec. 11305. (a) In General.--Nothing in this chapter or
the amendments made by this chapter shall apply to authorized
and otherwise lawful intelligence activities carried out by
or at the direction of the United States.
(b) Defenses.--Nothing in this section shall be construed
to limit or extinguish any defense or protection otherwise
available to any person or entity from suit, civil or
criminal liability, or damages, or to provide immunity from
prosecution for any criminal offense by the proper
authorities.
(c) Existing Extraterritorial Jurisdiction.--Nothing in
this chapter or the amendments made by this chapter shall be
construed to limit or affect the extraterritorial
jurisdiction related to any Federal statute not amended by
this chapter.

[[Page S4448]]

definition

Sec. 11306. For purposes of this chapter and the
amendments made by this chapter, the term ``Executive
agency'' has the meaning given in section 105 of title 5,
United States Code.

effective date

Sec. 11307. (a) Immediate Effectiveness.--The provisions
of this chapter shall enter into effect immediately upon the
enactment of this Act.
(b) Implementation.--The Attorney General and the head of
any other Federal department or agency to which this chapter
applies shall have 90 days after the date of the enactment of
this Act to ensure compliance with the provisions of this
chapter.

(2)Page 1 of the Senate engrossed amendment, strike line 1
and all that follows through the end of line 21 on page 59,
and insert the following:

That the following sums are appropriated, out of any money
in the Treasury not otherwise appropriated, for the fiscal
year ending September 30, 2008, and for other purposes,
namely:

TITLE I--MILITARY CONSTRUCTION, VETERANS AFFAIRS, INTERNATIONAL
AFFAIRS, AND OTHER SECURITY-RELATED MATTERS

CHAPTER 1--AGRICULTURE

DEPARTMENT OF AGRICULTURE

Foreign Agricultural Service

public law 480 title ii grants

For an additional amount for ``Public Law 480 Title II
Grants'', $850,000,000, to remain available until expended.
For an additional amount for ``Public Law 480 Title II
Grants'', $395,000,000, to become available on October 1,
2008, and to remain available until expended.

CHAPTER 2--COMMERCE, JUSTICE, AND SCIENCE

DEPARTMENT OF JUSTICE

Office of Inspector General

For an additional amount for ``Office of Inspector
General'', $4,000,000, to remain available until September
30, 2009.

Legal Activities

salaries and expenses, general legal activities

For an additional amount for ``Salaries and Expenses,
General Legal Activities'', $1,648,000, to remain available
until September 30, 2009.

salaries and expenses, united states attorneys

For an additional amount for ``Salaries and Expenses,
United States Attorneys'', $5,000,000, to remain available
until September 30, 2009.

United States Marshals Service

salaries and expenses

For an additional amount for ``Salaries and Expenses'',
$18,621,000, to remain available until September 30, 2009.

Federal Bureau of Investigation

salaries and expenses

For an additional amount for ``Salaries and Expenses'',
$92,169,000, to remain available until September 30, 2009.
For an additional amount for ``Salaries and Expenses'',
$82,600,000, to become available on October 1, 2008, and to
remain available until September 30, 2009.

Drug Enforcement Administration

salaries and expenses

For an additional amount for ``Salaries and Expenses'',
$12,166,000, to remain available until September 30, 2009.

Bureau of Alcohol, Tobacco, Firearms and Explosives

salaries and expenses

For an additional amount for ``Salaries and Expenses'',
$4,000,000, to remain available until September 30, 2009.

Federal Prison System

salaries and expenses

For an additional amount for ``Salaries and Expenses'',
$9,100,000, to remain available until September 30, 2009.

CHAPTER 3--MILITARY CONSTRUCTION AND VETERANS AFFAIRS

DEPARTMENT OF DEFENSE

Military Construction, Army

For an additional amount for ``Military Construction,
Army'', $1,432,700,000, to remain available until September
30, 2009: Provided, That notwithstanding any other provision
of law, such funds may be obligated and expended to carry out
planning and design and military construction projects not
otherwise authorized by law: Provided further, That of the
funds provided under this heading, not to exceed $73,400,000
shall be available for study, planning, design, and architect
and engineer services: Provided further, That of the funds
made available under this heading, $72,000,000 shall not be
obligated or expended until after that date on which the
Secretary of Defense submits a detailed spending plan,
including a 1391 form for each facilities replacement
project, to the Committees on Appropriations of the House of
Representatives and Senate: Provided further, That of the
funds provided under this heading, $533,700,000 shall not be
obligated or expended until the Secretary of Defense
certifies that none of the funds are to be used for the
purpose of providing facilities for the permanent basing of
United States military personnel in Iraq.

Military Construction, Navy and Marine Corps

For an additional amount for ``Military Construction, Navy
and Marine Corps'', $423,357,000, to remain available until
September 30, 2009: Provided, That notwithstanding any other
provision of law, such funds may be obligated and expended to
carry out planning and design and military construction
projects not otherwise authorized by law: Provided further,
That of the funds provided under this heading, not to exceed
$15,843,000 shall be available for study, planning, design,
and architect and engineer services.

Military Construction, Air Force

For an additional amount for ``Military Construction, Air
Force'', $409,627,000, to remain available until September
30, 2009: Provided, That notwithstanding any other provision
of law, such funds may be obligated and expended to carry out
planning and design and military construction projects not
otherwise authorized by law: Provided further, That of the
funds provided under this heading, not to exceed $36,427,000
shall be available for study, planning, design, and architect
and engineer services: Provided further, That of the funds
provided under this heading, $58,300,000 shall not be
obligated or expended until the Secretary of Defense
certifies that none of the funds are to be used for the
purpose of providing facilities for the permanent basing of
United States military personnel in Iraq.

Military Construction, Defense-Wide

For an additional amount for ``Military Construction,
Defense-Wide'', $1,009,600,000, to remain available until
September 30, 2009: Provided, That notwithstanding any other
provision of law, such funds may be obligated and expended to
carry out planning and design and military construction
projects not otherwise authorized by law: Provided further,
That of the funds provided, $982,000,000 shall be for medical
treatment facilities construction (including planning and
design) and shall remain available until September 30, 2012.

Family Housing Construction, Navy and Marine Corps

For an additional amount for ``Family Housing Construction,
Navy and Marine Corps,'' $11,766,000, to remain available
until September 30, 2009: Provided, That notwithstanding any
other provision of law, such funds may be obligated and
expended to carry out planning and design and military
construction projects not otherwise authorized by law.

Department of Defense Base Closure Account 2005

For deposit into the Department of Defense Base Closure
Account 2005, established by section 2906A(a)(1) of the
Defense Base Closure and Realignment Act of 1990 (10 U.S.C.
2687 note), $1,354,634,000, to remain available until
expended: Provided, That notwithstanding any other provision
of law, such funds may be obligated and expended to carry out
planning and design and military construction projects not
otherwise authorized by law.

DEPARTMENT OF VETERANS AFFAIRS

Departmental Administration

general operating expenses

For an additional amount for ``General Operating
Expenses'', $100,000,000, to remain available until September
30, 2009.

information technology systems

For an additional amount for ``Information Technology
Systems'', $20,000,000, to remain available until September
30, 2009.

GENERAL PROVISION, THIS CHAPTER

Sec. 1301. None of the funds appropriated in this or any
other Act may be used to terminate, reorganize, or relocate
the Armed Forces Institute of Pathology until the President
has established, as required by section 722 of the National
Defense Authorization Act for Fiscal Year 2008 (Public Law
110-181; 122 Stat. 199; 10 U.S.C. 176 note), a Joint
Pathology Center.

CHAPTER 4--DEPARTMENT OF STATE AND FOREIGN OPERATIONS

SUBCHAPTER A--SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2008

DEPARTMENT OF STATE

Administration of Foreign Affairs

diplomatic and consular programs

For an additional amount for ``Diplomatic and Consular
Programs'', $1,606,808,000, to remain available until
September 30, 2009, of which $210,508,000 for worldwide
security protection is available until expended: Provided,
That not more than $1,295,000,000 of the funds appropriated
under this heading shall be available for diplomatic
operations in Iraq: Provided further, That of the funds
appropriated under this heading, not more than $30,000,000
shall be available to establish and implement a coordinated
civilian response capacity at the United States Department of
State.

office of inspector general

(including transfer of funds)

For an additional amount for ``Office of Inspector
General'', $7,500,000, to remain available until September
30, 2009: Provided, That $2,500,000 shall be transferred to
the Special Inspector General for Iraq Reconstruction for
reconstruction oversight.

embassy security, construction, and maintenance

For an additional amount for ``Embassy Security,
Construction, and Maintenance'', $76,700,000, to remain
available until expended, for facilities in Afghanistan.

International Organizations

contributions to international organizations

For an additional amount for ``Contributions to
International Organizations'', $53,000,000 to remain
available until September 30, 2009.

contributions for international peacekeeping activities

For an additional amount for ``Contributions for
International Peacekeeping Activities'',

[[Page S4449]]

$333,600,000, to remain available until September 30, 2009,
for the United Nations-African Union Hybrid Mission in
Darfur.

BILATERAL ECONOMIC ASSISTANCE

Funds Appropriated to the President

international disaster assistance

For an additional amount for ``International Disaster
Assistance'', $200,000,000, to remain available until
expended.

operating expenses of the united states agency for international
development

For an additional amount for ``Operating Expenses of the
United States Agency for International Development'',
$142,000,000, to remain available until September 30, 2009:
Provided, That of the funds appropriated under this heading,
not more than $20,000,000 shall be available to establish and
implement a coordinated civilian response capacity at the
United States Agency for International Development.

operating expenses of the united states agency for international
development office of inspector general

For an additional amount for ``Operating Expenses of the
United States Agency for International Development Office of
Inspector General'', $4,000,000, to remain available until
September 30, 2009.

Other Bilateral Economic Assistance

economic support fund

For an additional amount for ``Economic Support Fund'',
$1,747,000,000, to remain available until September 30, 2009,
of which not more than $440,000,000 may be made available for
assistance for Iraq, $150,000,000 shall be made available for
assistance for Jordan to meet the needs of Iraqi refugees,
and up to $53,000,000 may be available for energy-related
assistance for North Korea, notwithstanding any other
provision of law: Provided, That not more than $100,000,000
of the funds appropriated under this heading shall be made
available for assistance for the West Bank and none of such
funds shall be for cash transfer assistance: Provided
further, That of the funds appropriated under this heading,
$1,000,000 shall be made available for the Office of the
United Nations High Commissioner for Human Rights in Mexico:
Provided further, That the funds made available under this
heading for energy-related assistance for North Korea may be
made available to support the goals of the Six Party Talks
Agreements after the Secretary of State determines and
reports to the Committees on Appropriations that North Korea
is continuing to fulfill its commitments under such
agreements.

Department of State

democracy fund

For an additional amount for ``Democracy Fund'',
$75,000,000, to remain available until September 30, 2009,
for democracy programs in Iraq.

international narcotics control and law enforcement

For an additional amount for ``International Narcotics
Control and Law Enforcement'', $419,300,000, to remain
available until September 30, 2009: Provided, That not more
than $25,000,000 of the funds appropriated by this subchapter
shall be made available for security assistance for the West
Bank.

migration and refugee assistance

For an additional amount for ``Migration and Refugee
Assistance'', $300,000,000, to remain available until
expended.

united states emergency refugee and migration assistance fund

For an additional amount for ``United States Emergency
Refugee and Migration Assistance Fund'', $25,000,000, to
remain available until expended.

nonproliferation, anti-terrorism, demining and related programs

For an additional amount for ``Nonproliferation, Anti-
Terrorism, Demining and Related Programs'', $11,200,000, to
remain available until September 30, 2009.

MILITARY ASSISTANCE

Funds Appropriated to the President

foreign military financing program

For an additional amount for ``Foreign Military Financing
Program'', $72,500,000, to remain available until September
30, 2009, of which up to $66,500,000 shall be made available
for assistance for Mexico.

SUBCHAPTER B--BRIDGE FUND SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR
2009

DEPARTMENT OF STATE

Administration of Foreign Affairs

diplomatic and consular programs

For an additional amount for ``Diplomatic and Consular
Programs'', $737,900,000, which shall become available on
October 1, 2008 and remain available through September 30,
2009: Provided, That of the funds appropriated under this
heading, $78,400,000 is for worldwide security protection and
shall remain available until expended: Provided further, That
not more than $581,500,000 of the funds appropriated under
this heading shall be available for diplomatic operations in
Iraq.

office of inspector general

(including transfers of funds)

For an additional amount for ``Office of Inspector
General'', $57,000,000, which shall become available on
October 1, 2008 and remain available through September 30,
2009: Provided, That $46,500,000 shall be transferred to the
Special Inspector General for Iraq Reconstruction for
reconstruction oversight and up to $5,000,000 shall be
transferred to the Special Inspector General for Afghanistan
Reconstruction for reconstruction oversight.

embassy security, construction, and maintenance

For an additional amount for ``Embassy Security,
Construction, and Maintenance,'' $41,300,000, which shall
become available on October 1, 2008 and remain available
until expended, for facilities in Afghanistan.

International Organizations

contributions to international organizations

For an additional amount for ``Contributions to
International Organizations'', $75,000,000, which shall
become available on October 1, 2008 and remain available
through September 30, 2009.

contributions for international peacekeeping activities

For an additional amount for ``Contributions for
International Peacekeeping Activities'', $150,500,000, which
shall become available on October 1, 2008 and remain
available through September 30, 2009.

RELATED AGENCY

Broadcasting Board of Governors

international broadcasting operations

For an additional amount for ``International Broadcasting
Operations'', $8,000,000, which shall become available on
October 1, 2008 and remain available through September 30,
2009.

BILATERAL ECONOMIC ASSISTANCE

Funds Appropriated to the President

global health and child survival

For an additional amount for ``Global Health and Child
Survival'', $75,000,000, which shall become available on
October 1, 2008 and remain available through September 30,
2009, for programs to combat avian influenza.

development assistance

For an additional amount for ``Development Assistance'',
$200,000,000, for assistance for developing countries to
address the international food crisis notwithstanding any
other provision of law, which shall become available on
October 1, 2008 and remain available through September 30,
2010: Provided, That such assistance should be carried out
consistent with the purposes of section 103(a)(1) of the
Foreign Assistance Act of 1961: Provided further, That not
more than $50,000,000 should be made available for local or
regional purchase and distribution of food: Provided further,
That the Secretary of State shall submit to the Committees on
Appropriations not later than 45 days after enactment of this
Act, and prior to the initial obligation of funds
appropriated under this heading, a report on the proposed
uses of such funds to alleviate hunger and malnutrition,
including a list of those countries facing significant food
shortages.

international disaster assistance

For an additional amount for ``International Disaster
Assistance'', $200,000,000, which shall become available on
October 1, 2008 and remain available until expended.

operating expenses of the united states agency for international
development

For an additional amount for ``Operating Expenses of the
United States Agency for International Development'',
$93,000,000, which shall become available on October 1, 2008
and remain available through September 30, 2009.

operating expenses of the united states agency for international
development office of inspector general

For an additional amount for ``Operating Expenses of the
United States Agency for International Development Office of
Inspector General'', $1,000,000, which shall become available
on October 1, 2008 and remain available through September 30,
2009.

Other Bilateral Economic Assistance

economic support fund

For an additional amount for ``Economic Support Fund,''
$1,147,300,000, which shall become available on October 1,
2008 and remain available through September 30, 2009, of
which not more than $100,000,000 may be made available for
assistance for Iraq, $100,000,000 shall be made available for
assistance for Jordan, and $15,000,000 may be made available
for energy-related assistance for North Korea,
notwithstanding any other provision of law: Provided, That
not more than $150,000,000 of the funds appropriated under
this heading in this subchapter shall be made available for
assistance for the West Bank.

Department of State

international narcotics control and law enforcement

For an additional amount for ``International Narcotics
Control and Law Enforcement'', $204,500,000, which shall
become available on October 1, 2008 and remain available
through September 30, 2009: Provided, That not more than
$50,000,000 of the funds made available by this subchapter
shall be made available for security assistance for the West
Bank and up to $53,500,000 shall be made available for
assistance for Mexico.

migration and refugee assistance

For an additional amount for ``Migration and Refugee
Assistance'', $350,000,000, which shall become available on
October 1, 2008 and remain available until expended.

nonproliferation, anti-terrorism, demining and related programs

For an additional amount for ``Nonproliferation, Anti-
Terrorism, Demining and Related Programs'', $4,500,000, for
humanitarian demining assistance for Iraq, which shall become
available on October 1, 2008 and remain available through
September 30, 2009.

[[Page S4450]]

MILITARY ASSISTANCE

Funds Appropriated to the President

foreign military financing program

For an additional amount for ``Foreign Military Financing
Program'', $170,000,000, which shall become available on
October 1, 2008 and remain available through September 30,
2009, of which $100,000,000 shall be made available for
assistance for Jordan and up to $50,000,000 shall be made
available for assistance for Mexico: Provided, That section
3802(c) of title III, chapter 8 of Public Law 110-28 shall
apply to funds made available under this heading for
assistance for Lebanon.

peacekeeping operations

For an additional amount for ``Peacekeeping Operations'',
$85,000,000, which shall become available on October 1, 2008
and remain available through September 30, 2009.

SUBCHAPTER C--GENERAL PROVISIONS, THIS CHAPTER

extension of authorities

Sec. 1401. Funds appropriated by this chapter may be
obligated and expended notwithstanding section 10 of Public
Law 91-672 (22 U.S.C. 2412), section 15 of the State
Department Basic Authorities Act of 1956 (22 U.S.C. 2680),
section 313 of the Foreign Relations Authorization Act,
Fiscal Years 1994 and 1995 (22 U.S.C. 6212), and section
504(a)(1) of the National Security Act of 1947 (50 U.S.C.
414(a)(1)).

afghanistan

Sec. 1402 (a) Assistance for Women and Girls.--Funds
appropriated by this chapter under the heading ``Economic
Support Fund'' that are available for assistance for
Afghanistan shall be made available, to the maximum extent
practicable, through local Afghan provincial and municipal
governments and Afghan civil society organizations and in a
manner that emphasizes the participation of Afghan women and
directly improves the economic, social and political status
of Afghan women and girls.
(b) Higher Education.--Of the funds appropriated by this
chapter under the heading ``Economic Support Fund'' that are
made available for education programs in Afghanistan, not
less than 50 percent shall be made available to support
higher education and vocational training programs in law,
accounting, engineering, public administration, and other
disciplines necessary to rebuild the country, in which the
participation of women is emphasized.
(c) Civilian Assistance.--Of the funds appropriated by this
chapter under the heading ``Economic Support Fund'' that are
available for assistance for Afghanistan, not less than
$2,000,000 shall be made available for a United States
contribution to the North Atlantic Treaty Organization/
International Security Assistance Force Post-Operations
Humanitarian Relief Fund.
(d) Anticorruption.--Not later than 90 days after enactment
of this Act, the Secretary of State shall--
(1) submit a report to the Committees on Appropriations on
actions being taken by the Government of Afghanistan to
combat corruption within the national and provincial
governments, including to remove and prosecute officials who
have committed corrupt acts;
(2) submit a list to the Committees on Appropriations, in
classified form if necessary, of senior Afghan officials who
the Secretary has credible evidence to believe have committed
corrupt acts; and
(3) certify and report to the Committees on Appropriations
that effective mechanisms are in place to ensure that
assistance to national government ministries and provincial
governments will be properly accounted for.

west bank

Sec. 1403. Not later than 90 days after the date of
enactment of this Act, and 180 days thereafter, the Secretary
of State shall submit to the Committees on Appropriations a
report on assistance provided by the United States for the
training of Palestinian security forces, including detailed
descriptions of the training, curriculum, and equipment
provided; an assessment of the training and the performance
of forces after training has been completed; and a
description of the assistance that has been pledged and
provided to Palestinian security forces by other donors:
Provided, That not later than 90 days after the date of
enactment of this Act, the Secretary of State shall report to
the Committees on Appropriations, in classified form if
necessary, on the security strategy of the Palestinian
Authority.

mexico

Sec. 1404. (a) Assistance for Mexico.--Of the funds
appropriated under the headings ``International Narcotics
Control and Law Enforcement'', ``Foreign Military Financing
Program'', and ``Economic Support Fund'' in this chapter, not
more than $296,500,000 of the funds appropriated in
subchapter A and $103,500,000 of the funds appropriated in
subchapter B shall be made available for assistance for
Mexico, only to combat drug trafficking and related violent
crime, and for judicial reform, institution building, and
rule of law activities, of which not less than $73,500,000
shall be used for judicial reform, institution building, and
rule of law activities: Provided, That none of the funds made
available under this section shall be made available for
budget support or as cash payments: Provided further, That
none of the funds made available under this section shall be
available for obligation until the Secretary of State
determines and reports to the Committees on Appropriations
that vetting procedures are in place to ensure that relevant
members and units of the Mexican armed forces and police
forces that may receive assistance pursuant to this section
have not been involved in human rights violations or corrupt
acts.
(b) Allocation of Funds.--25 percent of the funds made
available by this chapter for assistance for Mexico under the
headings ``International Narcotics Control and Law
Enforcement'' and ``Foreign Military Financing Program''
shall be withheld from obligation until the Secretary of
State reports to the Committees on Appropriations on the
requirements described in subsection (c).
(c) Requirements.--The requirements referred to in
subsection (b) are the following:
(1) The Government of Mexico is--
(A) improving the transparency and accountability of
Federal police forces and engaging with state and municipal
authorities to improve the transparency and accountability of
state and municipal police forces through mechanisms such as
police complaints commissions;
(B) ensuring meaningful engagement with civil society to
monitor efforts to combat drug trafficking and related
violent crime, judicial reform, institution building, and
rule of law activities to ensure due process and the
protection of freedom of expression, association, and
assembly in accordance with Mexican and international law;
and
(C) ensuring that, in accordance with applicable Mexican
law, the Mexican armed forces and the Federal police forces
are cooperating with civilian prosecutors and judicial
authorities in investigating and prosecuting in the civilian
justice system those individuals, including military
personnel, who have been credibly alleged under Mexican law
to have committed violations of internationally recognized
human rights, and, consistent with Mexican and international
law, is vigorously enforcing the prohibition on the use of
testimony obtained through torture or other ill-treatment.
(2) The Federal Public Security Secretary and the Minister
of Defense, respectively, in accordance with applicable
Mexican law, are suspending or placing on administrative
duty, those members of the Federal police and armed forces
who have been credibly alleged under Mexican law, to have
committed violations of internationally recognized human
rights or participated in corrupt acts and have established
policies that reward respect for human rights, in particular
regarding the use of force.
(3) The Attorney General and other relevant authorities of
the Mexican Government are investigating and prosecuting
members of the Mexican armed forces and police forces who
have been credibly alleged under Mexican law to have
committed violations of internationally recognized human
rights.
(d) Exception.--Notwithstanding subsections (b) and (c), of
the funds appropriated by subchapter A for assistance for
Mexico under the heading ``International Narcotics Control
and Law Enforcement'', $3,000,000 shall be made available for
technical and other assistance to enable the Government of
Mexico to implement a unified national registry encompassing
Federal, state, and municipal police officials, and
$5,000,000 may be made available to the Bureau of Alcohol,
Tobacco, Firearms and Explosives to deploy special agents in
Mexico to support Mexican law enforcement agencies in tracing
seized firearms and investigating firearms trafficking cases:
Provided, That section 484(a) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2291c(a)) shall not apply with respect to
assistance for Mexico made available by this chapter.
(e) Report.--The report required in subsection (b) shall
include a description of actions taken with respect to each
requirement specified in subsection (c) and the cases or
issues brought to the attention of the Secretary of State for
which the response or action taken has been inadequate.
(f) Vetting.--Not later than 30 days after the date of the
enactment of this Act, the Secretary of State shall submit to
the Committees on Appropriations a report, in classified form
if necessary, detailing the procedures used to vet Mexican
armed forces and police forces for eligibility to receive
assistance under this section.
(g) Notification.--Funds made available for Mexico by this
chapter shall be subject to the regular notification
procedures of the Committees on Appropriations and section
634A of the Foreign Assistance Act of 1961 (22 U.S.C. 2394-
1).
(h) Spending Plan.--Not later than 45 days after the date
of the enactment of this Act, the Secretary of State shall
submit to the Committees on Appropriations a detailed
spending plan for funds appropriated or otherwise made
available for Mexico by this chapter, which shall include a
strategy for combating drug trafficking and related violent
crime, judicial reform, institution building, and rule of law
activities, with concrete goals, actions to be taken, budget
proposals, and anticipated results.
(i) Consultation.--Not later than 90 days after the date of
the enactment of this Act, and every 180 days thereafter
until September 30, 2010, the Secretary of State shall
consult with Mexican and internationally recognized human
rights organizations on progress in meeting the requirements
described in subsection (c).

central america

Sec. 1405. (a) Assistance for the Countries of Central
America.--Of the funds appropriated in subchapter A under the
headings ``International Narcotics Control and Law
Enforcement'', ``Foreign Military Financing Program'',
``Nonproliferation, Anti-Terrorism, Demining and Related
Programs'', and ``Economic Support Fund'', $61,500,000 shall
be made available for assistance for the countries of Central
America, Haiti, and the Dominican Republic only to combat
drug trafficking and related violent crime, and for judicial
reform, institution building, rule of law activities, and
maritime security: Provided, That of the funds appropriated
under the heading ``Economic Support Fund'', $15,000,000
shall be made available

[[Page S4451]]

through the United States Agency for International
Development for an Economic and Social Development Fund for
the countries of Central America: Provided further, That of
the funds appropriated under the heading ``International
Narcotics Control and Law Enforcement'', $2,500,000 shall be
made available for assistance for Haiti and $2,500,000 shall
be made available for assistance for the Dominican Republic:
Provided further, That none of the funds shall be made
available for budget support or as cash payments: Provided
further, That none of the funds shall be available for
obligation until the Secretary of State determines and
reports to the Committees on Appropriations that vetting
procedures are in place to ensure that Federal and municipal
police forces and the armed forces of the countries of
Central America that may receive assistance pursuant to this
section have not been involved in human rights violations or
corrupt acts.
(b) Allocation of Funds.--(1) Up to 75 percent of the funds
appropriated under the headings ``International Narcotics
Control and Law Enforcement'' and ``Foreign Military
Financing Program'' in subchapter A that are available for
assistance for the countries of Central America may be
obligated prior to the certification and report by the
Secretary of State required in paragraph (2).
(2) The balance of the funds may be obligated not less than
120 days after the date of the enactment of this Act if,
before such obligation, the Secretary of State determines and
reports to the Committees on Appropriations that the
requirements in subsection (c) have been met.
(c) Requirements.--The requirements referred to in
subsection (b)(2) are the following:
(1) The International Law Enforcement Academy (ILEA) in San
Salvador, El Salvador is establishing a vetting procedure for
police and other public security officials attending programs
at the ILEA.
(2) The countries of Central America are--
(A) vetting members and units of Federal and municipal
police forces and the armed forces that may receive
assistance to ensure such members and units have not been
involved in human rights violations or corrupt acts;
(B) strengthening law enforcement capabilities, developing
effective systems information exchange, improving demand
reduction, and expanding public education, prevention, and
treatment programs;
(C) improving controls on chemical precursors;
(D) adopting and implementing reforms that improve the
capacity and protect the independence of the judiciary;
(E) reforming criminal procedures to ensure due process and
training Federal and municipal police leadership in modern
policing to curb police abuses;
(F) targeting organizational structures and financial and
other assets of drug cartels;
(G) taking steps to curb corruption in law enforcement
agencies; and
(H) suspending, prosecuting, and punishing members of the
police forces who have been credibly alleged to have
committed violations of human rights and corrupt acts, and
establishing policies for members of such forces that reward
respect for human rights, in particular regarding the use of
force.
(d) Report.--The report required in subsection (b)(2) shall
include actions taken with respect to each requirement and
the cases or issues brought to the attention of the Secretary
for which the response or action taken has been inadequate.
(e) Vetting.--Not later than 30 days after the date of the
enactment of this Act, the Secretary of State shall submit a
report to the Committees on Appropriations, in classified
form if necessary, detailing the procedures used by the
Government of the United States to vet the Federal and
municipal police and the armed forces of the countries of
Central America for eligibility to receive assistance under
this section.
(f) Notification.--Funds made available for the countries
of Central America in subchapter A shall be subject to the
regular notification procedures of the Committees on
Appropriations and section 634A of the Foreign Assistance Act
of 1961 (22 U.S.C. 2394-1).
(g) Spending Plan.--Not later than 45 days after enactment
of this Act the Secretary of State shall submit to the
Committees on Appropriations a detailed spending plan for
funds appropriated or otherwise made available for the
countries of Central America, Haiti and the Dominican
Republic in subchapter A, which shall include a strategy for
combating drug trafficking and related violent crime,
judicial reform, institution building, and rule of law
activities, with concrete goals, actions to be taken, budget
proposals and anticipated results.
(h) Consultation.--Not later than 90 days after the date of
enactment of this Act and every 120 days thereafter until
September 30, 2010, the Secretary of State shall consult with
internationally recognized human rights organizations, and
human rights organizations in the countries of Central
America receiving assistance pursuant to this section, on
progress in meeting the requirements described in subsection
(c).
(i) Definition.--For the purposes of this section, the term
``countries of Central America'' means Belize, Costa Rica, El
Salvador, Guatemala, Honduras, Nicaragua, and Panama.

buying power maintenance account

(including transfer of funds)

Sec. 1406. (a) Of the funds appropriated under the heading
``Diplomatic and Consular Programs'' and allocated by section
3810 of the U.S. Troop Readiness, Veterans' Care, Katrina
Recovery, and Iraq Accountability Appropriations Act, 2007
(Public Law 110-28), $26,000,000 shall be transferred to and
merged with funds in the ``Buying Power Maintenance
Account'': Provided, That of the funds made available by this
chapter up to an additional $74,000,000 may be transferred to
and merged with the ``Buying Power Maintenance Account'',
subject to the regular notification procedures of the
Committees on Appropriations and in accordance with the
procedures in section 34 of the State Department Basic
Authorities Act of 1956 (22 U.S.C. 2706). Any funds
transferred pursuant to this section shall be available,
without fiscal year limitation, pursuant to section 24 of the
State Department Basic Authorities Act of 1956 (22 U.S.C.
2696).
(b) Section 24(b)(7) of the State Department Basic
Authorities Act of 1956 (22 U.S.C. 2696(b)(7)) is amended by
amending subparagraph (D) to read as follows:
``(D) The authorities contained in this paragraph may be
exercised only with respect to funds appropriated or
otherwise made available after fiscal year 2008.''.

rescissions

Sec. 1407. (a) World Food Program.--(1) For an additional
amount for a contribution to the World Food Program to assist
farmers in countries affected by food shortages to increase
crop yields, notwithstanding any other provision of law,
$20,000,000, to remain available until expended.
(2) Of the funds appropriated under the heading ``Andean
Counterdrug Initiative'' in prior Acts making appropriations
for foreign operations, export financing, and related
programs, $20,000,000 are rescinded.
(b) Sudan.--(1) For an additional amount for
``International Narcotics Control and Law Enforcement'',
$10,000,000, for assistance for Sudan to support formed
police units, to remain available until September 30, 2009,
and subject to prior consultation with the Committees on
Appropriations.
(2) Of the funds appropriated under the heading
``International Narcotics Control and Law Enforcement'' in
prior Acts making appropriations for foreign operations,
export financing, and related programs, $10,000,000 are
rescinded.
(c) Section 8002 of this Act shall not apply to this
section.

allocations

Sec. 1408. (a) Funds provided in this chapter for the
following accounts shall be made available for programs and
countries in the amounts contained in the respective tables
included in the explanatory statement printed in the
Congressional Record accompanying this Act:
``Diplomatic and Consular Programs''
``Economic Support Fund''.
(b) Any proposed increases or decreases to the amounts
contained in such tables in the explanatory statement printed
in the Congressional Record accompanying this Act shall be
subject to the regular notification procedures of the
Committees on Appropriations and section 634A of the Foreign
Assistance Act of 1961.

reprogramming authority

Sec. 1409. Notwithstanding any other provision of law, to
include minimum funding requirements or funding directives,
funds made available under the headings ``Development
Assistance'' and ``Economic Support Fund'' in prior Acts
making appropriations for foreign operations, export
financing, and related programs may be made available to
address critical food shortages, subject to prior
consultation with, and the regular notification procedures
of, the Committees on Appropriations.

spending plan and notification procedures

Sec. 1410. (a) Subchapter A Spending Plan.--Not later than
45 days after the enactment of this Act the Secretary of
State shall submit to the Committees on Appropriations a
report detailing planned expenditures for funds appropriated
under the headings in subchapter A, except for funds
appropriated under the headings ``International Disaster
Assistance'', ``Migration and Refugee Assistance'', and
``United States Emergency Refugee and Migration Assistance
Fund''.
(b) Subchapter B Spending Plan.--The Secretary of State
shall submit to the Committees on Appropriations not later
than November 1, 2008, and prior to the initial obligation of
funds, a detailed spending plan for funds appropriated or
otherwise made available in subchapter B, except for funds
appropriated under the headings ``International Disaster
Assistance'', ``Migration and Refugee Assistance'', and
``United States Emergency Refugee and Migration Assistance
Fund''.
(c) Notification.--Funds made available in this chapter
shall be subject to the regular notification procedures of
the Committees on Appropriations and section 634A of the
Foreign Assistance Act of 1961.

terms and conditions

Sec. 1411. Unless otherwise provided for in this Act,
funds appropriated or otherwise made available by this
chapter shall be available under the authorities and
conditions provided in the Department of State, Foreign
Operations, and Related Programs Appropriations Act, 2008
(division J of Public Law 110-161), except that section 699K
of such Act shall not apply to funds in this chapter.

TITLE II--DOMESTIC MATTERS

CHAPTER 1--COMMERCE, JUSTICE, AND SCIENCE

DEPARTMENT OF COMMERCE

Bureau of the Census

periodic censuses and programs

(including transfer of funds)

For an additional amount for ``Periodic Censuses and
Programs'', $210,000,000, to remain available until expended,
for necessary expenses related to the 2010 Decennial Census:
Provided, That not less than $3,000,000 shall be transferred
to the ``Office of Inspector General'' at the Department of
Commerce for necessary expenses associated with oversight
activities of the 2010 Decennial Census: Provided further,
That not less than $1,000,000 shall be used only for a

[[Page S4452]]

reimbursable agreement with the Defense Contract Management
Agency to provide continuing contract management oversight of
the 2010 Decennial Census.

DEPARTMENT OF JUSTICE

Federal Prison System

salaries and expenses

For an additional amount for ``Salaries and Expenses'',
$178,000,000, to remain available until September 30, 2008.

CHAPTER 2--ENERGY AND WATER DEVELOPMENT

DEPARTMENT OF DEFENSE--CIVIL

DEPARTMENT OF THE ARMY

Corps of Engineers--Civil

construction

For an additional amount for ``Construction'', for
necessary expenses related to the consequences of Hurricane
Katrina and other hurricanes of the 2005 season,
$2,835,000,000, to remain available until expended: Provided,
That such sums shall not be available until October 1, 2008:
Provided further, That the Secretary of the Army is directed
to use $1,997,000,000 of the funds provided herein to modify
authorized projects in southeast Louisiana to provide
hurricane, storm and flood damage reduction in the greater
New Orleans and surrounding areas to the levels of protection
necessary to achieve the certification required for
participation in the National Flood Insurance Program under
the base flood elevations current at the time of enactment of
this Act, and shall use $1,077,000,000 of those funds for the
Lake Pontchartrain and Vicinity project and $920,000,000 of
those funds for the West Bank and Vicinity project: Provided
further, That, in addition, $838,000,000 of the funds
provided herein shall be for elements of Southeast Louisiana
Urban Drainage project within the geographic perimeter of the
West Bank and Vicinity and Lake Pontchartrain and Vicinity
projects, to provide for interior drainage of runoff from
rainfall with a ten percent annual exceedance probability:
Provided further, That the amounts provided herein shall be
subject to a 65 percent Federal / 35 percent non-Federal cost
share for the specified purposes: Provided further, That
beginning not later than 60 days after the date of enactment
of this Act, the Chief of Engineers, acting through the
Assistant Secretary of the Army for Civil Works, shall
provide monthly reports to the Committees on Appropriations
of the House of Representatives and the Senate detailing the
allocation and obligation of these funds.

flood control and coastal emergencies

For an additional amount for ``Flood Control and Coastal
Emergencies'', as authorized by section 5 of the Act of
August 18, 1941 (33 U.S.C. 701n), for necessary expenses
relating to the consequences of Hurricane Katrina and other
hurricanes of the 2005 season, $2,926,000,000, to remain
available until expended: Provided, That such sums shall not
be available until October 1, 2008: Provided further, That
funds provided herein shall be used to reduce the risk of
hurricane and storm damages to the greater New Orleans
metropolitan area, at full Federal expense, for the
following: $704,000,000 shall be used to modify the 17th
Street, Orleans Avenue, and London Avenue drainage canals and
install pumps and closure structures at or near the
lakefront; $90,000,000 shall be used for storm-proofing
interior pump stations to ensure the operability of the
stations during hurricanes, storms, and high water events;
$459,000,000 shall be used for armoring critical elements of
the New Orleans hurricane and storm damage reduction system;
$53,000,000 shall be used to improve protection at the Inner
Harbor Navigation Canal; $456,000,000 shall be used to
replace or modify certain non-Federal levees in Plaquemines
Parish to incorporate the levees into the existing New
Orleans to Venice hurricane protection project; $412,000,000
shall be used for reinforcing or replacing flood walls, as
necessary, in the existing Lake Pontchartrain and Vicinity
project and the existing West Bank and Vicinity project to
improve the performance of the systems; $393,000,000 shall be
used for repair and restoration of authorized protections and
floodwalls; and $359,000,000 shall be used to complete the
authorized protection for the Lake Pontchartrain and Vicinity
Project and for the West Bank and Vicinity Project: Provided
further, That beginning not later than 60 days after the date
of enactment of this Act, the Chief of Engineers, acting
through the Assistant Secretary of the Army for Civil Works,
shall provide monthly reports to the Committees on
Appropriations of the House of Representatives and the Senate
detailing the allocation and obligation of these funds:
Provided further, That any project using funds appropriated
under this heading shall be initiated only after non-Federal
interests have entered into binding agreements with the
Assistant Secretary of the Army for Civil Works requiring the
non-Federal interests to pay 100 percent of the operation,
maintenance, repair, replacement, and rehabilitation costs of
completed elements and to hold and save the United States
free from damages due to the construction, operation, and
maintenance of the project, except for damages due to the
fault or negligence of the United States or its contractors:
Provided further, That the expenditure of funds as provided
above may be made without regard to individual amounts or
purposes except that any reallocation of funds that is
necessary to accomplish the established goals is authorized,
subject to the approval of the House and Senate Committees on
Appropriations.

CHAPTER 3--LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION

DEPARTMENT OF LABOR

Employment and Training Administration

state unemployment insurance and employment service operations

For an additional amount for ``State Unemployment
Insurance and Employment Service Operations'' for grants to
the States for the administration of State unemployment
insurance, $110,000,000, which may be expended from the
Employment Security Administration Account in the
Unemployment Trust Fund, to be used for unemployment
insurance workloads experienced by the States through
September 30, 2008, which shall be available for Federal
obligation through December 31, 2008.

CHAPTER 4--LEGISLATIVE BRANCH

HOUSE OF REPRESENTATIVES

Payment to Widows and Heirs of Deceased Members of Congress

For payment to Annette Lantos, widow of Tom Lantos, late a
Representative from the State of California, $169,300:
Provided, That section 8002 shall not apply to this
appropriation.

TITLE III--VETERANS EDUCATIONAL ASSISTANCE

short title

Sec. 3001. This title may be cited as the ``Post-9/11
Veterans Educational Assistance Act of 2008''.

findings

Sec. 3002. Congress makes the following findings:
(1) On September 11, 2001, terrorists attacked the United
States, and the brave members of the Armed Forces of the
United States were called to the defense of the Nation.
(2) Service on active duty in the Armed Forces has been
especially arduous for the members of the Armed Forces since
September 11, 2001.
(3) The United States has a proud history of offering
educational assistance to millions of veterans, as
demonstrated by the many ``G.I. Bills'' enacted since World
War II. Educational assistance for veterans helps reduce the
costs of war, assist veterans in readjusting to civilian life
after wartime service, and boost the United States economy,
and has a positive effect on recruitment for the Armed
Forces.
(4) The current educational assistance program for veterans
is outmoded and designed for peacetime service in the Armed
Forces.
(5) The people of the United States greatly value military
service and recognize the difficult challenges involved in
readjusting to civilian life after wartime service in the
Armed Forces.
(6) It is in the national interest for the United States to
provide veterans who serve on active duty in the Armed Forces
after September 11, 2001, with enhanced educational
assistance benefits that are worthy of such service and are
commensurate with the educational assistance benefits
provided by a grateful Nation to veterans of World War II.

educational assistance for members of the armed forces who serve after
september 11, 2001

Sec. 3003. (a) Educational Assistance Authorized.--
(1) In general.--Part III of title 38, United States Code,
is amended by inserting after chapter 32 the following new
chapter:

``CHAPTER 33--POST-9/11 EDUCATIONAL ASSISTANCE

``subchapter i--definitions

``Sec.
``3301. Definitions.

``subchapter ii--educational assistance

``3311. Educational assistance for service in the Armed Forces
commencing on or after September 11, 2001: entitlement.
``3312. Educational assistance: duration.
``3313. Educational assistance: amount; payment.
``3314. Tutorial assistance.
``3315. Licensure and certification tests.
``3316. Supplemental educational assistance: members with critical
skills or specialty; members serving additional service.
``3317. Public-private contributions for additional educational
assistance.

``subchapter iii--administrative provisions

``3321. Time limitation for use of and eligibility for entitlement.
``3322. Bar to duplication of educational assistance benefits.
``3323. Administration.
``3324. Allocation of administration and costs.

``SUBCHAPTER I--DEFINITIONS

``Sec. 3301. Definitions

``In this chapter:
``(1) The term `active duty' has the meanings as follows
(subject to the limitations specified in sections 3002(6) and
3311(b) of this title):
``(A) In the case of members of the regular components of
the Armed Forces, the meaning given such term in section
101(21)(A) of this title.
``(B) In the case of members of the reserve components of
the Armed Forces, service on active duty under a call or
order to active duty under section 688, 12301(a), 12301(d),
12301(g), 12302, or 12304 of title 10.
``(2) The term `entry level and skill training' means the
following:
``(A) In the case of members of the Army, Basic Combat
Training and Advanced Individual Training.
``(B) In the case of members of the Navy, Recruit Training
(or Boot Camp) and Skill Training (or so-called `A' School).
``(C) In the case of members of the Air Force, Basic
Military Training and Technical Training.
``(D) In the case of members of the Marine Corps, Recruit
Training and Marine Corps Training (or School of Infantry
Training).
``(E) In the case of members of the Coast Guard, Basic
Training.
``(3) The term `program of education' has the meaning the
meaning given such term in section

[[Page S4453]]

3002 of this title, except to the extent otherwise provided
in section 3313 of this title.
``(4) The term `Secretary of Defense' has the meaning given
such term in section 3002 of this title.

``SUBCHAPTER II--EDUCATIONAL ASSISTANCE

``Sec. 3311. Educational assistance for service in the Armed
Forces commencing on or after September 11, 2001:
entitlement

``(a) Entitlement.--Subject to subsections (d) and (e),
each individual described in subsection (b) is entitled to
educational assistance under this chapter.
``(b) Covered Individuals.--An individual described in this
subsection is any individual as follows:
``(1) An individual who--
``(A) commencing on or after September 11, 2001, serves an
aggregate of at least 36 months on active duty in the Armed
Forces (including service on active duty in entry level and
skill training); and
``(B) after completion of service described in subparagraph
(A)--
``(i) continues on active duty; or
``(ii) is discharged or released from active duty as
described in subsection (c).
``(2) An individual who--
``(A) commencing on or after September 11, 2001, serves at
least 30 continuous days on active duty in the Armed Forces;
and
``(B) after completion of service described in subparagraph
(A), is discharged or released from active duty in the Armed
Forces for a service-connected disability.
``(3) An individual who--
``(A) commencing on or after September 11, 2001, serves an
aggregate of at least 30 months, but less than 36 months, on
active duty in the Armed Forces (including service on active
duty in entry level and skill training); and
``(B) after completion of service described in subparagraph
(A)--
``(i) continues on active duty for an aggregate of less
than 36 months; or
``(ii) before completion of service on active duty of an
aggregate of 36 months, is discharged or released from active
duty as described in subsection (c).
``(4) An individual who--
``(A) commencing on or after September 11, 2001, serves an
aggregate of at least 24 months, but less than 30 months, on
active duty in the Armed Forces (including service on active
duty in entry level and skill training); and
``(B) after completion of service described in subparagraph
(A)--
``(i) continues on active duty for an aggregate of less
than 30 months; or
``(ii) before completion of service on active duty of an
aggregate of 30 months, is discharged or released from active
duty as described in subsection (c).
``(5) An individual who--
``(A) commencing on or after September 11, 2001, serves an
aggregate of at least 18 months, but less than 24 months, on
active duty in the Armed Forces (excluding service on active
duty in entry level and skill training); and
``(B) after completion of service described in subparagraph
(A)--
``(i) continues on active duty for an aggregate of less
than 24 months; or
``(ii) before completion of service on active duty of an
aggregate of 24 months, is discharged or released from active
duty as described in subsection (c).
``(6) An individual who--
``(A) commencing on or after September 11, 2001, serves an
aggregate of at least 12 months, but less than 18 months, on
active duty in the Armed Forces (excluding service on active
duty in entry level and skill training); and
``(B) after completion of service described in subparagraph
(A)--
``(i) continues on active duty for an aggregate of less
than 18 months; or
``(ii) before completion of service on active duty of an
aggregate of 18 months, is discharged or released from active
duty as described in subsection (c).
``(7) An individual who--
``(A) commencing on or after September 11, 2001, serves an
aggregate of at least 6 months, but less than 12 months, on
active duty in the Armed Forces (excluding service on active
duty in entry level and skill training); and
``(B) after completion of service described in subparagraph
(A)--
``(i) continues on active duty for an aggregate of less
than 12 months; or
``(ii) before completion of service on active duty of an
aggregate of 12 months, is discharged or released from active
duty as described in subsection (c).
``(8) An individual who--
``(A) commencing on or after September 11, 2001, serves an
aggregate of at least 90 days, but less than 6 months, on
active duty in the Armed Forces (excluding service on active
duty in entry level and skill training); and
``(B) after completion of service described in subparagraph
(A)--
``(i) continues on active duty for an aggregate of less
than 6 months; or
``(ii) before completion of service on active duty of an
aggregate of 6 months, is discharged or released from active
duty as described in subsection (c).
``(c) Covered Discharges and Releases.--A discharge or
release from active duty of an individual described in this
subsection is a discharge or release as follows:
``(1) A discharge from active duty in the Armed Forces with
an honorable discharge.
``(2) A release after service on active duty in the Armed
Forces characterized by the Secretary concerned as honorable
service and placement on the retired list, transfer to the
Fleet Reserve or Fleet Marine Corps Reserve, or placement on
the temporary disability retired list.
``(3) A release from active duty in the Armed Forces for
further service in a reserve component of the Armed Forces
after service on active duty characterized by the Secretary
concerned as honorable service.
``(4) A discharge or release from active duty in the Armed
Forces for--
``(A) a medical condition which preexisted the service of
the individual as described in the applicable paragraph of
subsection (b) and which the Secretary determines is not
service-connected;
``(B) hardship; or
``(C) a physical or mental condition that was not
characterized as a disability and did not result from the
individual's own willful misconduct but did interfere with
the individual's performance of duty, as determined by the
Secretary concerned in accordance with regulations prescribed
by the Secretary of Defense.
``(d) Prohibition on Treatment of Certain Service as Period
of Active Duty.--The following periods of service shall not
be considered a part of the period of active duty on which an
individual's entitlement to educational assistance under this
chapter is based:
``(1) A period of service on active duty of an officer
pursuant to an agreement under section 2107(b) of title 10.
``(2) A period of service on active duty of an officer
pursuant to an agreement under section 4348, 6959, or 9348 of
title 10.
``(3) A period of service that is terminated because of a
defective enlistment and induction based on--
``(A) the individual's being a minor for purposes of
service in the Armed Forces;
``(B) an erroneous enlistment or induction; or
``(C) a defective enlistment agreement.
``(e) Treatment of Individuals Entitled Under Multiple
Provisions.--In the event an individual entitled to
educational assistance under this chapter is entitled by
reason of both paragraphs (4) and (5) of subsection (b), the
individual shall be treated as being entitled to educational
assistance under this chapter by reason of paragraph (5) of
such subsection.

``Sec. 3312. Educational assistance: duration

``(a) In General.--Subject to section 3695 of this title
and except as provided in subsections (b) and (c), an
individual entitled to educational assistance under this
chapter is entitled to a number of months of educational
assistance under section 3313 of this title equal to 36
months.
``(b) Continuing Receipt.--The receipt of educational
assistance under section 3313 of this title by an individual
entitled to educational assistance under this chapter is
subject to the provisions of section 3321(b)(2) of this
title.
``(c) Discontinuation of Education for Active Duty.--(1)
Any payment of educational assistance described in paragraph
(2) shall not--
``(A) be charged against any entitlement to educational
assistance of the individual concerned under this chapter; or
``(B) be counted against the aggregate period for which
section 3695 of this title limits the individual's receipt of
educational assistance under this chapter.
``(2) Subject to paragraph (3), the payment of educational
assistance described in this paragraph is the payment of such
assistance to an individual for pursuit of a course or
courses under this chapter if the Secretary finds that the
individual--
``(A)(i) in the case of an individual not serving on active
duty, had to discontinue such course pursuit as a result of
being called or ordered to serve on active duty under section
688, 12301(a), 12301(d), 12301(g), 12302, or 12304 of title
10; or
``(ii) in the case of an individual serving on active duty,
had to discontinue such course pursuit as a result of being
ordered to a new duty location or assignment or to perform an
increased amount of work; and
``(B) failed to receive credit or lost training time toward
completion of the individual's approved education,
professional, or vocational objective as a result of having
to discontinue, as described in subparagraph (A), the
individual's course pursuit.
``(3) The period for which, by reason of this subsection,
educational assistance is not charged against entitlement or
counted toward the applicable aggregate period under section
3695 of this title shall not exceed the portion of the period
of enrollment in the course or courses from which the
individual failed to receive credit or with respect to which
the individual lost training time, as determined under
paragraph (2)(B).

``Sec. 3313. Educational assistance: amount; payment

``(a) Payment.--The Secretary shall pay to each individual
entitled to educational assistance under this chapter who is
pursuing an approved program of education (other than a
program covered by subsections (e) and (f)) the amounts
specified in subsection (c) to meet the expenses of such
individual's subsistence, tuition, fees, and other
educational costs for pursuit of such program of education.
``(b) Approved Programs of Education.--A program of
education is an approved program of education for purposes of
this chapter if the program of education is offered by an
institution of higher learning (as that term is defined in
section 3452(f) of this title) and is approved for purposes
of chapter 30 of this title (including approval by the State
approving agency concerned).
``(c) Amount of Educational Assistance.--The amounts
payable under this subsection for pursuit of an approved
program of education are amounts as follows:
``(1) In the case of an individual entitled to educational
assistance under this chapter by reason of section 3311(b)(1)
or 3311(b)(2) of this title, amounts as follows:

[[Page S4454]]

``(A) An amount equal to the established charges for the
program of education, except that the amount payable under
this subparagraph may not exceed the maximum amount of
established charges regularly charged in-State students for
full-time pursuit of approved programs of education for
undergraduates by the public institution of higher education
offering approved programs of education for undergraduates in
the State in which the individual is enrolled that has the
highest rate of regularly-charged established charges for
such programs of education among all public institutions of
higher education in such State offering such programs of
education.
``(B) A monthly stipend in an amount as follows:
``(i) For each month the individual pursues the program of
education, other than a program of education offered through
distance learning, a monthly housing stipend amount equal to
the monthly amount of the basic allowance for housing payable
under section 403 of title 37 for a member with dependents in
pay grade E-5 residing in the military housing area that
encompasses all or the majority portion of the ZIP code area
in which is located the institution of higher education at
which the individual is enrolled.
``(ii) For the first month of each quarter, semester, or
term, as applicable, of the program of education pursued by
the individual, a lump sum amount for books, supplies,
equipment, and other educational costs with respect to such
quarter, semester, or term in the amount equal to--

``(I) $1,000, multiplied by
``(II) the fraction which is the portion of a complete
academic year under the program of education that such
quarter, semester, or term constitutes.

``(2) In the case of an individual entitled to educational
assistance under this chapter by reason of section 3311(b)(3)
of this title, amounts equal to 90 percent of the amounts
that would be payable to the individual under paragraph (1)
for the program of education if the individual were entitled
to amounts for the program of education under paragraph (1)
rather than this paragraph.
``(3) In the case of an individual entitled to educational
assistance under this chapter by reason of section 3311(b)(4)
of this title, amounts equal to 80 percent of the amounts
that would be payable to the individual under paragraph (1)
for the program of education if the individual were entitled
to amounts for the program of education under paragraph (1)
rather than this paragraph.
``(4) In the case of an individual entitled to educational
assistance under this chapter by reason of section 3311(b)(5)
of this title, amounts equal to 70 percent of the amounts
that would be payable to the individual under paragraph (1)
for the program of education if the individual were entitled
to amounts for the program of education under paragraph (1)
rather than this paragraph.
``(5) In the case of an individual entitled to educational
assistance under this chapter by reason of section 3311(b)(6)
of this title, amounts equal to 60 percent of the amounts
that would be payable to the individual under paragraph (1)
for the program of education if the individual were entitled
to amounts for the program of education under paragraph (1)
rather than this paragraph.
``(6) In the case of an individual entitled to educational
assistance under this chapter by reason of section 3311(b)(7)
of this title, amounts equal to 50 percent of the amounts
that would be payable to the individual under paragraph (1)
for the program of education if the individual were entitled
to amounts for the program of education under paragraph (1)
rather than this paragraph.
``(7) In the case of an individual entitled to educational
assistance under this chapter by reason of section 3311(b)(8)
of this title, amounts equal to 40 percent of the amounts
that would be payable to the individual under paragraph (1)
for the program of education if the individual were entitled
to amounts for the program of education under paragraph (1)
rather than this paragraph.
``(d) Frequency of Payment.--(1) Payment of the amounts
payable under subsection (c)(1)(A), and of similar amounts
payable under paragraphs (2) through (7) of subsection (c),
for pursuit of a program of education shall be made for the
entire quarter, semester, or term, as applicable, of the
program of education.
``(2) Payment of the amount payable under subsection
(c)(1)(B), and of similar amounts payable under paragraphs
(2) through (7) of subsection (c), for pursuit of a program
of education shall be made on a monthly basis.
``(3) The Secretary shall prescribe in regulations methods
for determining the number of months (including fractions
thereof) of entitlement of an individual to educational
assistance this chapter that are chargeable under this
chapter for an advance payment of amounts under paragraphs
(1) and (2) for pursuit of a program of education on a
quarter, semester, term, or other basis.
``(e) Programs of Education Pursued on Active Duty.--(1)
Educational assistance is payable under this chapter for
pursuit of an approved program of education while on active
duty.
``(2) The amount of educational assistance payable under
this chapter to an individual pursuing a program of education
while on active duty is the lesser of--
``(A) the established charges which similarly circumstanced
nonveterans enrolled in the program of education involved
would be required to pay; or
``(B) the amount of the charges of the educational
institution as elected by the individual in the manner
specified in section 3014(b)(1) of this title.
``(3) Payment of the amount payable under paragraph (2) for
pursuit of a program of education shall be made for the
entire quarter, semester, or term, as applicable, of the
program of education.
``(4) For each month (as determined pursuant to the methods
prescribed under subsection (d)(3)) for which amounts are
paid an individual under this subsection, the entitlement of
the individual to educational assistance under this chapter
shall be charged at the rate of one month for each such
month.
``(f) Programs of Education Pursued on Half-Time Basis or
Less.--(1) Educational assistance is payable under this
chapter for pursuit of an approved program of education on
half-time basis or less.
``(2) The educational assistance payable under this chapter
to an individual pursuing a program of education on half-time
basis or less is the amounts as follows:
``(A) The amount equal to the lesser of--
``(i) the established charges which similarly circumstanced
nonveterans enrolled in the program of education involved
would be required to pay; or
``(ii) the maximum amount that would be payable to the
individual for the program of education under paragraph
(1)(A) of subsection (c), or under the provisions of
paragraphs (2) through (7) of subsection (c) applicable to
the individual, for the program of education if the
individual were entitled to amounts for the program of
education under subsection (c) rather than this subsection.
``(B) A stipend in an amount equal to the amount of the
appropriately reduced amount of the lump sum amount for
books, supplies, equipment, and other educational costs
otherwise payable to the individual under subsection (c).
``(3) Payment of the amounts payable to an individual under
paragraph (2) for pursuit of a program of education on half-
time basis or less shall be made for the entire quarter,
semester, or term, as applicable, of the program of
education.
``(4) For each month (as determined pursuant to the methods
prescribed under subsection (d)(3)) for which amounts are
paid an individual under this subsection, the entitlement of
the individual to educational assistance under this chapter
shall be charged at a percentage of a month equal to--
``(A) the number of course hours borne by the individual in
pursuit of the program of education involved, divided by
``(B) the number of course hours for full-time pursuit of
such program of education.
``(g) Payment of Established Charges to Educational
Institutions.--Amounts payable under subsections (c)(1)(A)
(and of similar amounts payable under paragraphs (2) through
(7) of subsection (c)), (e)(2) and (f)(2)(A) shall be paid
directly to the educational institution concerned.
``(h) Established Charges Defined.--(1) In this section,
the term `established charges', in the case of a program of
education, means the actual charges (as determined pursuant
to regulations prescribed by the Secretary) for tuition and
fees which similarly circumstanced nonveterans enrolled in
the program of education would be required to pay.
``(2) Established charges shall be determined for purposes
of this subsection on the following basis:
``(A) In the case of an individual enrolled in a program of
education offered on a term, quarter, or semester basis, the
tuition and fees charged the individual for the term,
quarter, or semester.
``(B) In the case of an individual enrolled in a program of
education not offered on a term, quarter, or semester basis,
the tuition and fees charged the individual for the entire
program of education.

``Sec. 3314. Tutorial assistance

``(a) In General.--Subject to subsection (b), an individual
entitled to educational assistance under this chapter shall
also be entitled to benefits provided an eligible veteran
under section 3492 of this title.
``(b) Conditions.--(1) The provision of benefits under
subsection (a) shall be subject to the conditions applicable
to an eligible veteran under section 3492 of this title.
``(2) In addition to the conditions specified in paragraph
(1), benefits may not be provided to an individual under
subsection (a) unless the professor or other individual
teaching, leading, or giving the course for which such
benefits are provided certifies that--
``(A) such benefits are essential to correct a deficiency
of the individual in such course; and
``(B) such course is required as a part of, or is
prerequisite or indispensable to the satisfactory pursuit of,
an approved program of education.
``(c) Amount.--(1) The amount of benefits described in
subsection (a) that are payable under this section may not
exceed $100 per month, for a maximum of 12 months, or until a
maximum of $1,200 is utilized.
``(2) The amount provided an individual under this
subsection is in addition to the amounts of educational
assistance paid the individual under section 3313 of this
title.
``(d) No Charge Against Entitlement.--Any benefits provided
an individual under subsection (a) are in addition to any
other educational assistance benefits provided the individual
under this chapter.

``Sec. 3315. Licensure and certification tests

``(a) In General.--An individual entitled to educational
assistance under this chapter shall also be entitled to
payment for one licensing or certification test described in
section 3452(b) of this title.
``(b) Limitation on Amount.--The amount payable under
subsection (a) for a licensing or certification test may not
exceed the lesser of--
``(1) $2,000; or

[[Page S4455]]

``(2) the fee charged for the test.
``(c) No Charge Against Entitlement.--Any amount paid an
individual under subsection (a) is in addition to any other
educational assistance benefits provided the individual under
this chapter.

``Sec. 3316. Supplemental educational assistance: members
with critical skills or specialty; members serving
additional service

``(a) Increased Assistance for Members With Critical Skills
or Specialty.--(1) In the case of an individual who has a
skill or specialty designated by the Secretary concerned as a
skill or specialty in which there is a critical shortage of
personnel or for which it is difficult to recruit or, in the
case of critical units, retain personnel, the Secretary
concerned may increase the monthly amount of educational
assistance otherwise payable to the individual under
paragraph (1)(B) of section 3313(c) of this title, or under
paragraphs (2) through (7) of such section (as applicable).
``(2) The amount of the increase in educational assistance
authorized by paragraph (1) may not exceed the amount equal
to the monthly amount of increased basic educational
assistance providable under section 3015(d)(1) of this title
at the time of the increase under paragraph (1).
``(b) Supplemental Assistance for Additional Service.--(1)
The Secretary concerned may provide for the payment to an
individual entitled to educational assistance under this
chapter of supplemental educational assistance for additional
service authorized by subchapter III of chapter 30 of this
title. The amount so payable shall be payable as an increase
in the monthly amount of educational assistance otherwise
payable to the individual under paragraph (1)(B) of section
3313(c) of this title, or under paragraphs (2) through (7) of
such section (as applicable).
``(2) Eligibility for supplement educational assistance
under this subsection shall be determined in accordance with
the provisions of subchapter III of chapter 30 of this title,
except that any reference in such provisions to eligibility
for basic educational assistance under a provision of
subchapter II of chapter 30 of this title shall be treated as
a reference to eligibility for educational assistance under
the appropriate provision of this chapter.
``(3) The amount of supplemental educational assistance
payable under this subsection shall be the amount equal to
the monthly amount of supplemental educational payable under
section 3022 of this title.
``(c) Regulations.--The Secretaries concerned shall
administer this section in accordance with such regulations
as the Secretary of Defense shall prescribe.

``Sec. 3317. Public-private contributions for additional
educational assistance

``(a) Establishment of Program.--In instances where the
educational assistance provided pursuant to section
3313(c)(1)(A) does not cover the full cost of established
charges (as specified in section 3313 of this title), the
Secretary shall carry out a program under which colleges and
universities can, voluntarily, enter into an agreement with
the Secretary to cover a portion of those established charges
not otherwise covered under section 3313(c)(1)(A), which
contributions shall be matched by equivalent contributions
toward such costs by the Secretary. The program shall only
apply to covered individuals described in paragraphs (1) and
(2) of section 3311(b).
``(b) Designation of Program.--The program under this
section shall be known as the `Yellow Ribbon G.I. Education
Enhancement Program'.
``(c) Agreements.--The Secretary shall enter into an
agreement with each college or university seeking to
participate in the program under this section. Each agreement
shall specify the following:
``(1) The manner (whether by direct grant, scholarship, or
otherwise) of the contributions to be made by the college or
university concerned.
``(2) The maximum amount of the contribution to be made by
the college or university concerned with respect to any
particular individual in any given academic year.
``(3) The maximum number of individuals for whom the
college or university concerned will make contributions in
any given academic year.
``(4) Such other matters as the Secretary and the college
or university concerned jointly consider appropriate.
``(d) Matching Contributions.--(1) In instances where the
educational assistance provided an individual under section
3313(c)(1)(A) of this title does not cover the full cost of
tuition and mandatory fees at a college or university, the
Secretary shall provide up to 50 percent of the remaining
costs for tuition and mandatory fees if the college or
university voluntarily enters into an agreement with the
Secretary to match an equal percentage of any of the
remaining costs for such tuition and fees.
``(2) Amounts available to the Secretary under section
3324(b) of this title for payment of the costs of this
chapter shall be available to the Secretary for purposes of
paragraph (1).
``(e) Outreach.--The Secretary shall make available on the
Internet website of the Department available to the public a
current list of the colleges and universities participating
in the program under this section. The list shall specify,
for each college or university so listed, appropriate
information on the agreement between the Secretary and such
college or university under subsection (c).

``SUBCHAPTER III--ADMINISTRATIVE PROVISIONS

``Sec. 3321. Time limitation for use of and eligibility for
entitlement

``(a) In General.--Except as provided in this section, the
period during which an individual entitled to educational
assistance under this chapter may use such individual's
entitlement expires at the end of the 15-year period
beginning on the date of such individual's last discharge or
release from active duty.
``(b) Exceptions.--(1) Subsections (b), (c), and (d) of
section 3031 of this title shall apply with respect to the
running of the 15-year period described in subsection (a) of
this section in the same manner as such subsections apply
under section 3031 of this title with respect to the running
of the 10-year period described in section 3031(a) of this
title.
``(2) Section 3031(f) of this title shall apply with
respect to the termination of an individual's entitlement to
educational assistance under this chapter in the same manner
as such section applies to the termination of an individual's
entitlement to educational assistance under chapter 30 of
this title, except that, in the administration of such
section for purposes of this chapter, the reference to
section 3013 of this title shall be deemed to be a reference
to 3312 of this title.
``(3) For purposes of subsection (a), an individual's last
discharge or release from active duty shall not include any
discharge or release from a period of active duty of less
than 90 days of continuous service, unless the individual is
discharged or released as described in section 3311(b)(2) of
this title.

``Sec. 3322. Bar to duplication of educational assistance
benefits

``(a) In General.--An individual entitled to educational
assistance under this chapter who is also eligible for
educational assistance under chapter 30, 31, 32, or 35 of
this title, chapter 107, 1606, or 1607 of title 10, or the
provisions of the Hostage Relief Act of 1980 (Public Law 96-
449; 5 U.S.C. 5561 note) may not receive assistance under two
or more such programs concurrently, but shall elect (in such
form and manner as the Secretary may prescribe) under which
chapter or provisions to receive educational assistance.
``(b) Inapplicability of Service Treated Under Educational
Loan Repayment Programs.--A period of service counted for
purposes of repayment of an education loan under chapter 109
of title 10 may not be counted as a period of service for
entitlement to educational assistance under this chapter.
``(c) Service in Selected Reserve.--An individual who
serves in the Selected Reserve may receive credit for such
service under only one of this chapter, chapter 30 of this
title, and chapters 1606 and 1607 of title 10, and shall
elect (in such form and manner as the Secretary may
prescribe) under which chapter such service is to be
credited.
``(d) Additional Coordination Matters.--In the case of an
individual entitled to educational assistance under chapter
30, 31, 32, or 35 of this title, chapter 107, 1606, or 1607
of title 10, or the provisions of the Hostage Relief Act of
1980, or making contributions toward entitlement to
educational assistance under chapter 30 of this title, as of
August 1, 2009, coordination of entitlement to educational
assistance under this chapter, on the one hand, and such
chapters or provisions, on the other, shall be governed by
the provisions of section 3003(c) of the Post-9/11 Veterans
Educational Assistance Act of 2008.

``Sec. 3323. Administration

``(a) In General.--(1) Except as otherwise provided in this
chapter, the provisions specified in section 3034(a)(1) of
this title shall apply to the provision of educational
assistance under this chapter.
``(2) In applying the provisions referred to in paragraph
(1) to an individual entitled to educational assistance under
this chapter for purposes of this section, the reference in
such provisions to the term `eligible veteran' shall be
deemed to refer to an individual entitled to educational
assistance under this chapter.
``(3) In applying section 3474 of this title to an
individual entitled to educational assistance under this
chapter for purposes of this section, the reference in such
section 3474 to the term `educational assistance allowance'
shall be deemed to refer to educational assistance payable
under section 3313 of this title.
``(4) In applying section 3482(g) of this title to an
individual entitled to educational assistance under this
chapter for purposes of this section--
``(A) the first reference to the term `educational
assistance allowance' in such section 3482(g) shall be deemed
to refer to educational assistance payable under section 3313
of this title; and
``(B) the first sentence of paragraph (1) of such section
3482(g) shall be applied as if such sentence ended with
`equipment'.
``(b) Information on Benefits.--(1) The Secretary of
Veterans Affairs shall provide the information described in
paragraph (2) to each member of the Armed Forces at such
times as the Secretary of Veterans Affairs and the Secretary
of Defense shall jointly prescribe in regulations.
``(2) The information described in this paragraph is
information on benefits, limitations, procedures, eligibility
requirements (including time-in-service requirements), and
other important aspects of educational assistance under this
chapter, including application forms for such assistance
under section 5102 of this title.
``(3) The Secretary of Veterans Affairs shall furnish the
information and forms described in paragraph (2), and other
educational materials on educational assistance under this
chapter, to educational institutions, training
establishments, military education personnel, and such other
persons and entities as the Secretary considers appropriate.
``(c) Regulations.--(1) The Secretary shall prescribe
regulations for the administration of this chapter.
``(2) Any regulations prescribed by the Secretary of
Defense for purposes of this chapter shall apply uniformly
across the Armed Forces.

[[Page S4456]]

``Sec. 3324. Allocation of administration and costs

``(a) Administration.--Except as otherwise provided in this
chapter, the Secretary shall administer the provision of
educational assistance under this chapter.
``(b) Costs.--Payments for entitlement to educational
assistance earned under this chapter shall be made from funds
appropriated to, or otherwise made available to, the
Department of Veterans Affairs for the payment of
readjustment benefits.''.
(2) Clerical amendments.--The tables of chapters at the
beginning of title 38, United States Code, and at the
beginning of part III of such title, are each amended by
inserting after the item relating to chapter 32 the following
new item:

``33. Post-9/11 Educational Assistance......................3301''.....

(b) Conforming Amendments.--
(1) Amendments relating to duplication of benefits.--
(A) Section 3033 of title 38, United States Code, is
amended--
(i) in subsection (a)(1), by inserting ``33,'' after
``32,''; and
(ii) in subsection (c), by striking ``both the program
established by this chapter and the program established by
chapter 106 of title 10'' and inserting ``two or more of the
programs established by this chapter, chapter 33 of this
title, and chapters 1606 and 1607 of title 10''.
(B) Paragraph (4) of section 3695(a) of such title is
amended to read as follows:
``(4) Chapters 30, 32, 33, 34, 35, and 36 of this title.''.
(C) Section 16163(e) of title 10, United States Code, is
amended by inserting ``33,'' after ``32,''.
(2) Additional conforming amendments.--
(A) Title 38, United States Code, is further amended by
inserting ``33,'' after ``32,'' each place it appears in the
following provisions:
(i) In subsections (b) and (e)(1) of section 3485.
(ii) In section 3688(b).
(iii) In subsections (a)(1), (c)(1), (c)(1)(G), (d), and
(e)(2) of section 3689.
(iv) In section 3690( b)(3)(A).
(v) In subsections (a) and (b) of section 3692.
(vi) In section 3697(a).
(B) Section 3697A(b)(1) of such title is amended by
striking ``or 32'' and inserting ``32, or 33''.
(c) Applicability to Individuals Under Montgomery GI Bill
Program.--
(1) Individuals eligible to elect participation in post-9/
11 educational assistance.--An individual may elect to
receive educational assistance under chapter 33 of title 38,
United States Code (as added by subsection (a)), if such
individual--
(A) as of August 1, 2009--
(i) is entitled to basic educational assistance under
chapter 30 of title 38, United States Code, and has used, but
retains unused, entitlement under that chapter;
(ii) is entitled to educational assistance under chapter
107, 1606, or 1607 of title 10, United States Code, and has
used, but retains unused, entitlement under the applicable
chapter;
(iii) is entitled to basic educational assistance under
chapter 30 of title 38, United States Code, but has not used
any entitlement under that chapter;
(iv) is entitled to educational assistance under chapter
107, 1606, or 1607 of title 10, United States Code, but has
not used any entitlement under such chapter;
(v) is a member of the Armed Forces who is eligible for
receipt of basic educational assistance under chapter 30 of
title 38, United States Code, and is making contributions
toward such assistance under section 3011(b) or 3012(c) of
such title; or
(vi) is a member of the Armed Forces who is not entitled to
basic educational assistance under chapter 30 of title 38,
United States Code, by reason of an election under section
3011(c)(1) or 3012(d)(1) of such title; and
(B) as of the date of the individual's election under this
paragraph, meets the requirements for entitlement to
educational assistance under chapter 33 of title 38, United
States Code (as so added).
(2) Cessation of contributions toward gi bill.--Effective
as of the first month beginning on or after the date of an
election under paragraph (1) of an individual described by
subparagraph (A)(v) of that paragraph, the obligation of the
individual to make contributions under section 3011(b) or
3012(c) of title 38, United States Code, as applicable, shall
cease, and the requirements of such section shall be deemed
to be no longer applicable to the individual.
(3) Revocation of remaining transferred entitlement.--
(A) Election to revoke.--If, on the date an individual
described in subparagraph (A)(i) or (A)(iii) of paragraph (1)
makes an election under that paragraph, a transfer of the
entitlement of the individual to basic educational assistance
under section 3020 of title 38, United States Code, is in
effect and a number of months of the entitlement so
transferred remain unutilized, the individual may elect to
revoke all or a portion of the entitlement so transferred
that remains unutilized.
(B) Availability of revoked entitlement.--Any entitlement
revoked by an individual under this paragraph shall no longer
be available to the dependent to whom transferred, but shall
be available to the individual instead for educational
assistance under chapter 33 of title 38, United States Code
(as so added), in accordance with the provisions of this
subsection.
(C) Availability of unrevoked entitlement.--Any entitlement
described in subparagraph (A) that is not revoked by an
individual in accordance with that subparagraph shall remain
available to the dependent or dependents concerned in
accordance with the current transfer of such entitlement
under section 3020 of title 38, United States Code.
(4) Post-9/11 educational assistance.--
(A) In general.--Subject to subparagraph (B) and except as
provided in paragraph (5), an individual making an election
under paragraph (1) shall be entitled to educational
assistance under chapter 33 of title 38, United States Code
(as so added), in accordance with the provisions of such
chapter, instead of basic educational assistance under
chapter 30 of title 38, United States Code, or educational
assistance under chapter 107, 1606, or 1607 of title 10,
United States Code, as applicable.
(B) Limitation on entitlement for certain individuals.--In
the case of an individual making an election under paragraph
(1) who is described by subparagraph (A)(i) of that
paragraph, the number of months of entitlement of the
individual to educational assistance under chapter 33 of
title 38, United States Code (as so added), shall be the
number of months equal to--
(i) the number of months of unused entitlement of the
individual under chapter 30 of title 38, United States Code,
as of the date of the election, plus
(ii) the number of months, if any, of entitlement revoked
by the individual under paragraph (3)(A).
(5) Continuing entitlement to educational assistance not
available under 9/11 assistance program.--
(A) In general.--In the event educational assistance to
which an individual making an election under paragraph (1)
would be entitled under chapter 30 of title 38, United States
Code, or chapter 107, 1606, or 1607 of title 10, United
States Code, as applicable, is not authorized to be available
to the individual under the provisions of chapter 33 of title
38, United States Code (as so added), the individual shall
remain entitled to such educational assistance in accordance
with the provisions of the applicable chapter.
(B) Charge for use of entitlement.--The utilization by an
individual of entitlement under subparagraph (A) shall be
chargeable against the entitlement of the individual to
educational assistance under chapter 33 of title 38, United
States Code (as so added), at the rate of one month of
entitlement under such chapter 33 for each month of
entitlement utilized by the individual under subparagraph (A)
(as determined as if such entitlement were utilized under the
provisions of chapter 30 of title 38, United States Code, or
chapter 107, 1606, or 1607 of title 10, United States Code,
as applicable).
(6) Additional post-9/11 assistance for members having made
contributions toward gi bill.--
(A) Additional assistance.--In the case of an individual
making an election under paragraph (1) who is described by
clause (i), (iii), or (v) of subparagraph (A) of that
paragraph, the amount of educational assistance payable to
the individual under chapter 33 of title 38, United States
Code (as so added), as a monthly stipend payable under
paragraph (1)(B) of section 3313(c) of such title (as so
added), or under paragraphs (2) through (7) of that section
(as applicable), shall be the amount otherwise payable as a
monthly stipend under the applicable paragraph increased by
the amount equal to--
(i) the total amount of contributions toward basic
educational assistance made by the individual under section
3011(b) or 3012(c) of title 38, United States Code, as of the
date of the election, multiplied by
(ii) the fraction--

(I) the numerator of which is--

(aa) the number of months of entitlement to basic
educational assistance under chapter 30 of title 38, United
States Code, remaining to the individual at the time of the
election; plus
(bb) the number of months, if any, of entitlement under
such chapter 30 revoked by the individual under paragraph
(3)(A); and

(II) the denominator of which is 36 months.

(B) Months of remaining entitlement for certain
individuals.--In the case of an individual covered by
subparagraph (A) who is described by paragraph (1)(A)(v), the
number of months of entitlement to basic educational
assistance remaining to the individual for purposes of
subparagraph (A)(ii)(I)(aa) shall be 36 months.
(C) Timing of payment.--The amount payable with respect to
an individual under subparagraph (A) shall be paid to the
individual together with the last payment of the monthly
stipend payable to the individual under paragraph (1)(B) of
section 3313(c) of title 38, United States Code (as so
added), or under paragraphs (2) through (7) of that section
(as applicable), before the exhaustion of the individual's
entitlement to educational assistance under chapter 33 of
such title (as so added).
(7) Continuing entitlement to additional assistance for
critical skills or speciality and additional service.--An
individual making an election under paragraph (1)(A) who, at
the time of the election, is entitled to increased
educational assistance under section 3015(d) of title 38,
United States Code, or section 16131(i) of title 10, United
States Code, or supplemental educational assistance under
subchapter III of chapter 30 of title 38, United States Code,
shall remain entitled to such increased educational
assistance or supplemental educational assistance in the
utilization of entitlement to educational assistance under
chapter 33 of title 38, United States Code (as so added), in
an amount equal to the quarter, semester, or term, as
applicable, equivalent of the monthly amount of such
increased educational assistance or supplemental educational
assistance payable with respect to the individual at the time
of the election.
(8) Irrevocability of elections.--An election under
paragraph (1) or (3)(A) is irrevocable.
(d) Effective Date.--This section and the amendments made
by this section shall take effect on August 1, 2009.

[[Page S4457]]

increase in amounts of basic educational assistance under the
montgomery gi bill

Sec. 3004. (a) Educational Assistance Based on Three-Year
Period of Obligated Service.--Subsection (a)(1) of section
3015 of title 38, United States Code, is amended--
(1) by striking subparagraphs (A) through (C) and inserting
the following new subparagraph:
``(A) for months occurring during the period beginning on
August 1, 2008, and ending on the last day of fiscal year
2009, $1,321; and''; and
(2) by redesignating subparagraph (D) as subparagraph (B).
(b) Educational Assistance Based on Two-Year Period of
Obligated Service.--Subsection (b)(1) of such section is
amended--
(1) by striking subparagraphs (A) through (C) and inserting
the following new subparagraph:
``(A) for months occurring during the period beginning on
August 1, 2008, and ending on the last day of fiscal year
2009, $1,073; and''; and
(2) by redesignating subparagraph (D) as subparagraph (B).
(c) Modification of Mechanism for Cost-of-Living
Adjustments.--Subsection (h)(1) of such section is amended by
striking subparagraphs (A) and (B) and inserting the
following new subparagraphs:
``(A) the average cost of undergraduate tuition in the
United States, as determined by the National Center for
Education Statistics, for the last academic year preceding
the beginning of the fiscal year for which the increase is
made, exceeds
``(B) the average cost of undergraduate tuition in the
United States, as so determined, for the academic year
preceding the academic year described in subparagraph (A).''.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on August 1, 2008.
(2) No cost-of-living adjustment for fiscal year 2009.--The
adjustment required by subsection (h) of section 3015 of
title 38, United States Code (as amended by this section), in
rates of basic educational assistance payable under
subsections (a) and (b) of such section (as so amended) shall
not be made for fiscal year 2009.

modification of amount available for reimbursement of state and local
agencies administering veterans education benefits

Sec. 3005. Section 3674(a)(4) of title 38, United States
Code, is amended by striking ``may not exceed'' and all that
follows through the end and inserting ``shall be
$19,000,000.''.

TITLE IV--EMERGENCY UNEMPLOYMENT COMPENSATION

federal-state agreements

Sec. 4001. (a) In General.--Any State which desires to do
so may enter into and participate in an agreement under this
title with the Secretary of Labor (in this title referred to
as the ``Secretary''). Any State which is a party to an
agreement under this title may, upon providing 30 days'
written notice to the Secretary, terminate such agreement.
(b) Provisions of Agreement.--Any agreement under
subsection (a) shall provide that the State agency of the
State will make payments of emergency unemployment
compensation to individuals who--
(1) have exhausted all rights to regular compensation under
the State law or under Federal law with respect to a benefit
year (excluding any benefit year that ended before May 1,
2007);
(2) have no rights to regular compensation or extended
compensation with respect to a week under such law or any
other State unemployment compensation law or to compensation
under any other Federal law (except as provided under
subsection (e)); and
(3) are not receiving compensation with respect to such
week under the unemployment compensation law of Canada.
(c) Exhaustion of Benefits.--For purposes of subsection
(b)(1), an individual shall be deemed to have exhausted such
individual's rights to regular compensation under a State law
when--
(1) no payments of regular compensation can be made under
such law because such individual has received all regular
compensation available to such individual based on employment
or wages during such individual's base period; or
(2) such individual's rights to such compensation have been
terminated by reason of the expiration of the benefit year
with respect to which such rights existed.
(d) Weekly Benefit Amount, Etc.--For purposes of any
agreement under this title--
(1) the amount of emergency unemployment compensation which
shall be payable to any individual for any week of total
unemployment shall be equal to the amount of the regular
compensation (including dependents' allowances) payable to
such individual during such individual's benefit year under
the State law for a week of total unemployment;
(2) the terms and conditions of the State law which apply
to claims for regular compensation and to the payment thereof
shall apply to claims for emergency unemployment compensation
and the payment thereof, except where otherwise inconsistent
with the provisions of this title or with the regulations or
operating instructions of the Secretary promulgated to carry
out this title; and
(3) the maximum amount of emergency unemployment
compensation payable to any individual for whom an emergency
unemployment compensation account is established under
section 4002 shall not exceed the amount established in such
account for such individual.
(e) Election by States.--Notwithstanding any other
provision of Federal law (and if State law permits), the
Governor of a State that is in an extended benefit period may
provide for the payment of emergency unemployment
compensation prior to extended compensation to individuals
who otherwise meet the requirements of this section.

emergency unemployment compensation account

Sec. 4002. (a) In General.--Any agreement under this title
shall provide that the State will establish, for each
eligible individual who files an application for emergency
unemployment compensation, an emergency unemployment
compensation account with respect to such individual's
benefit year.
(b) Amount in Account.--
(1) In general.--The amount established in an account under
subsection (a) shall be equal to the lesser of--
(A) 50 percent of the total amount of regular compensation
(including dependents' allowances) payable to the individual
during the individual's benefit year under such law, or
(B) 13 times the individual's average weekly benefit amount
for the benefit year.
(2) Weekly benefit amount.--For purposes of this
subsection, an individual's weekly benefit amount for any
week is the amount of regular compensation (including
dependents' allowances) under the State law payable to such
individual for such week for total unemployment.
(c) Special Rule.--
(1) In general.--Notwithstanding any other provision of
this section, if, at the time that the individual's account
is exhausted or at any time thereafter, such individual's
State is in an extended benefit period (as determined under
paragraph (2)), then, such account shall be augmented by an
amount equal to the amount originally established in such
account (as determined under subsection (b)(1)).
(2) Extended benefit period.--For purposes of paragraph
(1), a State shall be considered to be in an extended benefit
period, as of any given time, if--
(A) such a period is then in effect for such State under
the Federal-State Extended Unemployment Compensation Act of
1970;
(B) such a period would then be in effect for such State
under such Act if section 203(d) of such Act--
(i) were applied by substituting ``4'' for ``5'' each place
it appears; and
(ii) did not include the requirement under paragraph
(1)(A); or
(C) such a period would then be in effect for such State
under such Act if--
(i) section 203(f) of such Act were applied to such State
(regardless of whether the State by law had provided for such
application); and
(ii) such section 203(f)--

(I) were applied by substituting `6.0' for `6.5' in
paragraph (1)(A)(i); and
(II) did not include the requirement under paragraph
(1)(A)(ii).

payments to states having agreements for the payment of emergency
unemployment compensation

Sec. 4003. (a) General Rule.--There shall be paid to each
State that has entered into an agreement under this title an
amount equal to 100 percent of the emergency unemployment
compensation paid to individuals by the State pursuant to
such agreement.
(b) Treatment of Reimbursable Compensation.--No payment
shall be made to any State under this section in respect of
any compensation to the extent the State is entitled to
reimbursement in respect of such compensation under the
provisions of any Federal law other than this title or
chapter 85 of title 5, United States Code. A State shall not
be entitled to any reimbursement under such chapter 85 in
respect of any compensation to the extent the State is
entitled to reimbursement under this title in respect of such
compensation.
(c) Determination of Amount.--Sums payable to any State by
reason of such State having an agreement under this title
shall be payable, either in advance or by way of
reimbursement (as may be determined by the Secretary), in
such amounts as the Secretary estimates the State will be
entitled to receive under this title for each calendar month,
reduced or increased, as the case may be, by any amount by
which the Secretary finds that the Secretary's estimates for
any prior calendar month were greater or less than the
amounts which should have been paid to the State. Such
estimates may be made on the basis of such statistical,
sampling, or other method as may be agreed upon by the
Secretary and the State agency of the State involved.

financing provisions

Sec. 4004. (a) In General.--Funds in the extended
unemployment compensation account (as established by section
905(a) of the Social Security Act (42 U.S.C. 1105(a)) of the
Unemployment Trust Fund (as established by section 904(a) of
such Act (42 U.S.C. 1104(a)) shall be used for the making of
payments to States having agreements entered into under this
title.
(b) Certification.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums payable to such State under this title. The
Secretary of the Treasury, prior to audit or settlement by
the Government Accountability Office, shall make payments to
the State in accordance with such certification, by transfers
from the extended unemployment compensation account (as so
established) to the account of such State in the Unemployment
Trust Fund (as so established).
(c) Assistance to States.--There are appropriated out of
the employment security administration account (as
established by section 901(a) of the Social Security Act (42
U.S.C. 1101(a)) of the Unemployment Trust Fund, without
fiscal year limitation, such funds as may be necessary for
purposes of assisting States (as provided in title III of the
Social Security Act (42 U.S.C. 501 et seq.)) in meeting the
costs of administration of agreements under this title.
(d) Appropriations for Certain Payments.--There are
appropriated from the general fund of the Treasury, without
fiscal year

[[Page S4458]]

limitation, to the extended unemployment compensation account
(as so established) of the Unemployment Trust Fund (as so
established) such sums as the Secretary estimates to be
necessary to make the payments under this section in respect
of--
(1) compensation payable under chapter 85 of title 5,
United States Code; and
(2) compensation payable on the basis of services to which
section 3309(a)(1) of the Internal Revenue Code of 1986
applies.

Amounts appropriated pursuant to the preceding sentence shall
not be required to be repaid.

fraud and overpayments

Sec. 4005. (a) In General.--If an individual knowingly has
made, or caused to be made by another, a false statement or
representation of a material fact, or knowingly has failed,
or caused another to fail, to disclose a material fact, and
as a result of such false statement or representation or of
such nondisclosure such individual has received an amount of
emergency unemployment compensation under this title to which
such individual was not entitled, such individual--
(1) shall be ineligible for further emergency unemployment
compensation under this title in accordance with the
provisions of the applicable State unemployment compensation
law relating to fraud in connection with a claim for
unemployment compensation; and
(2) shall be subject to prosecution under section 1001 of
title 18, United States Code.
(b) Repayment.--In the case of individuals who have
received amounts of emergency unemployment compensation under
this title to which they were not entitled, the State shall
require such individuals to repay the amounts of such
emergency unemployment compensation to the State agency,
except that the State agency may waive such repayment if it
determines that--
(1) the payment of such emergency unemployment compensation
was without fault on the part of any such individual; and
(2) such repayment would be contrary to equity and good
conscience.
(c) Recovery by State Agency.--
(1) In general.--The State agency may recover the amount to
be repaid, or any part thereof, by deductions from any
emergency unemployment compensation payable to such
individual under this title or from any unemployment
compensation payable to such individual under any State or
Federal unemployment compensation law administered by the
State agency or under any other State or Federal law
administered by the State agency which provides for the
payment of any assistance or allowance with respect to any
week of unemployment, during the 3-year period after the date
such individuals received the payment of the emergency
unemployment compensation to which they were not entitled,
except that no single deduction may exceed 50 percent of the
weekly benefit amount from which such deduction is made.
(2) Opportunity for hearing.--No repayment shall be
required, and no deduction shall be made, until a
determination has been made, notice thereof and an
opportunity for a fair hearing has been given to the
individual, and the determination has become final.
(d) Review.--Any determination by a State agency under this
section shall be subject to review in the same manner and to
the same extent as determinations under the State
unemployment compensation law, and only in that manner and to
that extent.

definitions

Sec. 4006. In this title, the terms ``compensation'',
``regular compensation'', ``extended compensation'',
``benefit year'', ``base period'', ``State'', ``State
agency'', ``State law'', and ``week'' have the respective
meanings given such terms under section 205 of the Federal-
State Extended Unemployment Compensation Act of 1970 (26
U.S.C. 3304 note).

applicability

Sec. 4007. (a) In General.--Except as provided in
subsection (b), an agreement entered into under this title
shall apply to weeks of unemployment--
(1) beginning after the date on which such agreement is
entered into; and
(2) ending on or before March 31, 2009.
(b) Transition for Amount Remaining in Account.--
(1) In general.--Subject to paragraphs (2) and (3), in the
case of an individual who has amounts remaining in an account
established under section 4002 as of the last day of the last
week (as determined in accordance with the applicable State
law) ending on or before March 31, 2009, emergency
unemployment compensation shall continue to be payable to
such individual from such amounts for any week beginning
after such last day for which the individual meets the
eligibility requirements of this title.
(2) Limit on augmentation.--If the account of an individual
is exhausted after the last day of such last week (as so
determined), then section 4002(c) shall not apply and such
account shall not be augmented under such section, regardless
of whether such individual's State is in an extended benefit
period (as determined under paragraph (2) of such section).
(3) Limit on compensation.--No compensation shall be
payable by reason of paragraph (1) for any week beginning
after June 30, 2009.

TITLE V--MEDICAID PROVISIONS

Sec. 5001. (a) Moratoria on Certain Medicaid Regulations.--
(1) Extension of certain moratoria in public law 110-28.--
Section 7002(a)(1) of the U.S. Troop Readiness, Veterans'
Care, Katrina Recovery, and Iraq Accountability
Appropriations Act, 2007 (Public Law 110-28) is amended--
(A) by striking ``prior to the date that is 1 year after
the date of enactment of this Act'' and inserting ``prior to
April 1, 2009'';
(B) in subparagraph (A), by inserting after ``Federal
Regulations)'' the following: ``or in the final regulation,
relating to such parts, published on May 29, 2007 (72 Federal
Register 29748)''; and
(C) in subparagraph (C), by inserting before the period at
the end the following: ``, including the proposed regulation
published on May 23, 2007 (72 Federal Register 28930)''.
(2) Extension of certain moratoria in public law 110-173.--
Section 206 of the Medicare, Medicaid, and SCHIP Extension
Act of 2007 (Public Law 110-173) is amended--
(A) by striking ``June 30, 2008'' and inserting ``April 1,
2009'';
(B) by inserting ``, including the proposed regulation
published on August 13, 2007 (72 Federal Register 45201),''
after ``rehabilitation services''; and
(C) by inserting ``, including the final regulation
published on December 28, 2007 (72 Federal Register 73635),''
after ``school-based transportation''.
(3) Additional moratoria.--
(A) In general.--Notwithstanding any other provision of
law, the Secretary of Health and Human Services shall not,
prior to April 1, 2009, take any action (through promulgation
of regulation, issuance of regulatory guidance, use of
Federal payment audit procedures, or other administrative
action, policy, or practice, including a Medical Assistance
Manual transmittal or letter to State Medicaid directors) to
impose any restrictions relating to a provision described in
subparagraph (B), (C), or (D) if such restrictions are more
restrictive in any aspect than those applied to the
respective provision as of the date specified in subparagraph
(E) for such provision.
(B) Portion of interim final regulation relating to
medicaid treatment of optional case management services.--
(i) In general.--Subject to clause (ii), the provision
described in this subparagraph is the interim final
regulation relating to optional State plan case management
services under the Medicaid program published on December 4,
2007 (72 Federal Register 68077) in its entirety.
(ii) Exception.--The provision described in this
subparagraph does not include the portion of such regulation
as relates directly to implementing section 1915(g)(2)(A)(ii)
of the Social Security Act, as amended by section 6052 of the
Deficit Reduction Act of 2005 (Public Law 109-171), through
the definition of case management services and targeted case
management services contained in proposed section 440.169 of
title 42, Code of Federal Regulations, but only to the extent
that such portion is not more restrictive than the policies
set forth in the Dear State Medicaid Director letter on case
management issued on January 19, 2001 (SMDL #01-013), and
with respect to community transition case management, the
Dear State Medicaid Director letter issued on July 25, 2000
(Olmstead Update 3).
(C) Proposed regulation relating to redefinition of
medicaid outpatient hospital services.--The provision
described in this subparagraph is the proposed regulation
relating to clarification of outpatient clinic and hospital
facility services definition and upper payment limit under
the Medicaid program published on September 28, 2007 (72
Federal Register 55158) in its entirety.
(D) Portion of proposed regulation relating to medicaid
allowable provider taxes.--
(i) In general.--Subject to clause (ii), the provision
described in this subparagraph is the final regulation
relating to health-care-related taxes under the Medicaid
program published on February 22, 2008 (73 Federal Register
9685) in its entirety.
(ii) Exception.--The provision described in this
subparagraph does not include the portions of such regulation
as relate to the following:

(I) Reduction in threshold.--The reduction from 6 percent
to 5.5 percent in the threshold applied under section
433.68(f)(3)(i) of title 42, Code of Federal Regulations, for
determining whether or not there is an indirect guarantee to
hold a taxpayer harmless, as required to carry out section
1903(w)(4)(C)(ii) of the Social Security Act, as added by
section 403 of the Medicare Improvement and Extension Act of
2006 (division B of Public Law 109-432).
(II) Change in definition of managed care.--The change in
the definition of managed care as proposed in the revision of
section 433.56(a)(8) of title 42, Code of Federal
Regulations, as required to carry out section
1903(w)(7)(A)(viii) of the Social Security Act, as amended by
section 6051 of the Deficit Reduction Act of 2005 (Public Law
109-171).

(E) Date specified.--The date specified in this
subparagraph for the provision described in--
(i) subparagraph (B) is December 3, 2007;
(ii) subparagraph (C) is September 27, 2007; or
(iii) subparagraph (D) is February 21, 2008.
(b) Funds to Reduce Medicaid Fraud and Abuse.--
(1) In general.--For purposes of reducing fraud and abuse
in the Medicaid program under title XIX of the Social
Security Act--
(A) there is appropriated to the Secretary of Health and
Human Services, out of any money in the Treasury not
otherwise appropriated, $25,000,000, for fiscal year 2009;
and
(B) there is authorized to be appropriated to the Secretary
$25,000,000 for fiscal year 2010 and each subsequent fiscal
year.

Amounts appropriated under this section shall remain
available for expenditure until expended and shall be in
addition to any other amounts appropriated or made available
to the Secretary for such purposes with respect to the
Medicaid program.
(2) Annual report.--Not later than September 30 of 2009 and
of each subsequent year, the Secretary of Health and Human
Services shall submit to the Committee on Energy and

[[Page S4459]]

Commerce of the House of Representatives and the Committee on
Finance of the Senate a report on the activities (and the
results of such activities) funded under paragraph (1) to
reduce waste, fraud, and abuse in the Medicaid program under
title XIX of the Social Security Act during the previous 12
month period, including the amount of funds appropriated
under such paragraph for each such activity and an estimate
of the savings to the Medicaid program resulting from each
such activity.
(c) Study and Reports to Congress.--
(1) Secretarial report identifying problems.--Not later
than July 1, 2008, the Secretary of Health and Human Services
shall submit to the Committee on Energy and Commerce of the
House of Representatives and the Committee on Finance of the
Senate a report that--
(A) outlines the specific problems the Medicaid regulations
referred to in the amendments made by paragraphs (1) and (2)
of subsection (a) and in the provisions described in
subparagraph (B) through (D) of paragraph (3) of such
subsection were intended to address;
(B) detailing how these regulations were designed to
address these specific problems; and
(C) cites the legal authority for such regulations.
(2) Independent comprehensive study and report.--
(A) In general.--Not later than July 1, 2008, the Secretary
of Health and Human Services shall enter into a contract with
an independent organization for the purpose of--
(i) producing a comprehensive report on the prevalence of
the problems outlined in the report submitted under paragraph
(1);
(ii) identifying strategies in existence to address these
problems; and
(iii) assessing the impact of each regulation referred to
in such paragraph on each State and the District of Columbia.
(B) Additional matter.--The report under subparagraph (A)
shall also include--
(i) an identification of which claims for items and
services (including administrative activities) under title
XIX of the Social Security Act are not processed through
systems described in section 1903(r) of such Act;
(ii) an examination of the reasons why these claims for
such items and services are not processed through such
systems; and
(iii) recommendations on actions by the Federal government
and the States that can make claims for such items and
services more accurate and complete consistent with such
title.
(C) Deadline.--The report under subparagraph (A) shall be
submitted to the Committee on Energy and Commerce of the
House of Representatives and the Committee on Finance of the
Senate not later than March 1, 2009.
(D) Cooperation of states.--If the Secretary of Health and
Human Services determines that a State or the District of
Columbia has not cooperated with the independent organization
for purposes of the report under this paragraph, the
Secretary shall reduce the amount paid to the State or
District under section 1903(a) of the Social Security Act (42
U.S.C. 1396b(a)) by $25,000 for each day on which the
Secretary determines such State or District has not so
cooperated. Such reduction shall be made through a process
that permits the State or District to challenge the
Secretary's determination.
(3) Funding.--
(A) In general.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated to the Secretary without further appropriation,
$5,000,000 to carry out this subsection.
(B) Availability; amounts in addition to other amounts
appropriated for such activities.--Amounts appropriated
pursuant to subparagraph (A) shall--
(i) remain available until expended; and
(ii) be in addition to any other amounts appropriated or
made available to the Secretary of Health and Human Services
with respect to the Medicaid program.
(d) Asset Verification Through Access to Information Held
by Financial Institutions.--
(1) Addition of authority.--Title XIX of the Social
Security Act is amended by inserting after section 1939 the
following new section:

``asset verification through access to information held by financial
institutions

``Sec. 1940. (a) Implementation.--
``(1) In general.--Subject to the provisions of this
section, each State shall implement an asset verification
program described in subsection (b), for purposes of
determining or redetermining the eligibility of an individual
for medical assistance under the State plan under this title.
``(2) Plan submittal.--In order to meet the requirement of
paragraph (1), each State shall--
``(A) submit not later than a deadline specified by the
Secretary consistent with paragraph (3), a State plan
amendment under this title that describes how the State
intends to implement the asset verification program; and
``(B) provide for implementation of such program for
eligibility determinations and redeterminations made on or
after 6 months after the deadline established for submittal
of such plan amendment.
``(3) Phase-in.--
``(A) In general.--
``(i) Implementation in current asset verification demo
states.--The Secretary shall require those States specified
in subparagraph (C) (to which an asset verification program
has been applied before the date of the enactment of this
section) to implement an asset verification program under
this subsection by the end of fiscal year 2009.
``(ii) Implementation in other states.--The Secretary shall
require other States to submit and implement an asset
verification program under this subsection in such manner as
is designed to result in the application of such programs, in
the aggregate for all such other States, to enrollment of
approximately, but not less than, the following percentage of
enrollees, in the aggregate for all such other States, by the
end of the fiscal year involved:

``(I) 12.5 percent by the end of fiscal year 2009.
``(II) 25 percent by the end of fiscal year 2010.
``(III) 50 percent by the end of fiscal year 2011.
``(IV) 75 percent by the end of fiscal year 2012.
``(V) 100 percent by the end of fiscal year 2013.

``(B) Consideration.--In selecting States under
subparagraph (A)(ii), the Secretary shall consult with the
States involved and take into account the feasibility of
implementing asset verification programs in each such State.
``(C) States specified.--The States specified in this
subparagraph are California, New York, and New Jersey.
``(D) Construction.--Nothing in subparagraph (A)(ii) shall
be construed as preventing a State from requesting, and the
Secretary approving, the implementation of an asset
verification program in advance of the deadline otherwise
established under such subparagraph.
``(4) Exemption of territories.--This section shall only
apply to the 50 States and the District of Columbia.
``(b) Asset Verification Program.--
``(1) In general.--For purposes of this section, an asset
verification program means a program described in paragraph
(2) under which a State--
``(A) requires each applicant for, or recipient of, medical
assistance under the State plan under this title on the basis
of being aged, blind, or disabled to provide authorization by
such applicant or recipient (and any other person whose
resources are material to the determination of the
eligibility of the applicant or recipient for such
assistance) for the State to obtain (subject to the cost
reimbursement requirements of section 1115(a) of the Right to
Financial Privacy Act but at no cost to the applicant or
recipient) from any financial institution (within the meaning
of section 1101(1) of such Act) any financial record (within
the meaning of section 1101(2) of such Act) held by the
institution with respect to the applicant or recipient (and
such other person, as applicable), whenever the State
determines the record is needed in connection with a
determination with respect to such eligibility for (or the
amount or extent of) such medical assistance; and
``(B) uses the authorization provided under subparagraph
(A) to verify the financial resources of such applicant or
recipient (and such other person, as applicable), in order to
determine or redetermine the eligibility of such applicant or
recipient for medical assistance under the State plan.
``(2) Program described.--A program described in this
paragraph is a program for verifying individual assets in a
manner consistent with the approach used by the Commissioner
of Social Security under section 1631(e)(1)(B)(ii).
``(c) Duration of Authorization.--Notwithstanding section
1104(a)(1) of the Right to Financial Privacy Act, an
authorization provided to a State under subsection (b)(1)
shall remain effective until the earliest of--
``(1) the rendering of a final adverse decision on the
applicant's application for medical assistance under the
State's plan under this title;
``(2) the cessation of the recipient's eligibility for such
medical assistance; or
``(3) the express revocation by the applicant or recipient
(or such other person described in subsection (b)(1), as
applicable) of the authorization, in a written notification
to the State.
``(d) Treatment of Right to Financial Privacy Act
Requirements.--
``(1) An authorization obtained by the State under
subsection (b)(1) shall be considered to meet the
requirements of the Right to Financial Privacy Act for
purposes of section 1103(a) of such Act, and need not be
furnished to the financial institution, notwithstanding
section 1104(a) of such Act.
``(2) The certification requirements of section 1103(b) of
the Right to Financial Privacy Act shall not apply to
requests by the State pursuant to an authorization provided
under subsection (b)(1).
``(3) A request by the State pursuant to an authorization
provided under subsection (b)(1) is deemed to meet the
requirements of section 1104(a)(3) of the Right to Financial
Privacy Act and of section 1102 of such Act, relating to a
reasonable description of financial records.
``(e) Required Disclosure.--The State shall inform any
person who provides authorization pursuant to subsection
(b)(1)(A) of the duration and scope of the authorization.
``(f) Refusal or Revocation of Authorization.--If an
applicant for, or recipient of, medical assistance under the
State plan under this title (or such other person described
in subsection (b)(1), as applicable) refuses to provide, or
revokes, any authorization made by the applicant or recipient
(or such other person, as applicable) under subsection
(b)(1)(A) for the State to obtain from any financial
institution any financial record, the State may, on that
basis, determine that the applicant or recipient is
ineligible for medical assistance.
``(g) Use of Contractor.--For purposes of implementing an
asset verification program under this section, a State may
select and enter into a contract with a public or private
entity meeting such criteria and qualifications as the State
determines appropriate, consistent with requirements in
regulations relating to general contracting provisions and
with section 1903(i)(2). In carrying out activities under
such contract, such an entity shall be subject to the same
requirements and limitations on use and disclosure of
information as would apply if the State were to carry out
such activities directly.
``(h) Technical Assistance.--The Secretary shall provide
States with technical assistance to aid in implementation of
an asset verification program under this section.

[[Page S4460]]

``(i) Reports.--A State implementing an asset verification
program under this section shall furnish to the Secretary
such reports concerning the program, at such times, in such
format, and containing such information as the Secretary
determines appropriate.
``(j) Treatment of Program Expenses.--Notwithstanding any
other provision of law, reasonable expenses of States in
carrying out the program under this section shall be treated,
for purposes of section 1903(a), in the same manner as State
expenditures specified in paragraph (7) of such section.''.
(2) State plan requirements.--Section 1902(a) of such Act
(42 U.S.C. 1396a(a)) is amended--
(A) in paragraph (69) by striking ``and'' at the end;
(B) in paragraph (70) by striking the period at the end and
inserting ``; and''; and
(C) by inserting after paragraph (70), as so amended, the
following new paragraph:
``(71) provide that the State will implement an asset
verification program as required under section 1940.''.
(3) Withholding of federal matching payments for
noncompliant states.--Section 1903(i) of such Act (42 U.S.C.
1396b(i)) is amended--
(A) in paragraph (22) by striking ``or'' at the end;
(B) in paragraph (23) by striking the period at the end and
inserting ``; or''; and
(C) by adding after paragraph (23) the following new
paragraph:
``(24) if a State is required to implement an asset
verification program under section 1940 and fails to
implement such program in accordance with such section, with
respect to amounts expended by such State for medical
assistance for individuals subject to asset verification
under such section, unless--
``(A) the State demonstrates to the Secretary's
satisfaction that the State made a good faith effort to
comply;
``(B) not later than 60 days after the date of a finding
that the State is in noncompliance, the State submits to the
Secretary (and the Secretary approves) a corrective action
plan to remedy such noncompliance; and
``(C) not later than 12 months after the date of such
submission (and approval), the State fulfills the terms of
such corrective action plan.''.
(4) Repeal.--Section 4 of Public Law 110-90 is repealed.
(e) Adjustment to PAQI Fund.--Section 1848(l)(2) of the
Social Security Act (42 U.S.C. 1395w-4(l)(2)), as amended by
section 101(a)(2) of the Medicare, Medicaid, and SCHIP
Extension Act of 2007 (Public Law 110-173), is amended--
(1) in subparagraph (A)(i)--
(A) in subclause (III), by striking ``$4,960,000,000'' and
inserting ``$3,940,000,000''; and
(B) by adding at the end the following new subclause:

``(IV) For expenditures during 2014, an amount equal to
$3,750,000,000.'';

(2) in subparagraph (A)(ii), by adding at the end the
following new subclause:

``(IV) 2014.--The amount available for expenditures during
2014 shall only be available for an adjustment to the update
of the conversion factor under subsection (d) for that
year.''; and

(3) in subparagraph (B)--
(A) in clause (ii), by striking ``and'' at the end;
(B) in clause (iii), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following new clause:
``(iv) 2014 for payment with respect to physicians'
services furnished during 2014.''.

TITLE VI--ACCOUNTABILITY AND TRANSPARENCY IN GOVERNMENT CONTRACTING

CHAPTER 1--CLOSE THE CONTRACTOR FRAUD LOOPHOLE

short title

Sec. 6101. This chapter may be cited as the ``Close the
Contractor Fraud Loophole Act''.

revision of the federal acquisition regulation

Sec. 6102. The Federal Acquisition Regulation shall be
amended within 180 days after the date of the enactment of
this Act pursuant to FAR Case 2007-006 (as published at 72
Fed Reg. 64019, November 14, 2007) or any follow-on FAR case
to include provisions that require timely notification by
Federal contractors of violations of Federal criminal law or
overpayments in connection with the award or performance of
covered contracts or subcontracts, including those performed
outside the United States and those for commercial items.

definition

Sec. 6103. In this chapter, the term ``covered contract''
means any contract in an amount greater than $5,000,000 and
more than 120 days in duration.

CHAPTER 2--GOVERNMENT FUNDING TRANSPARENCY

short title

Sec. 6201. This chapter may be cited as the ``Government
Funding Transparency Act of 2008''.

financial disclosure requirements for certain recipients of federal
awards

Sec. 6202. (a) Disclosure Requirements.--Section 2(b)(1)
of the Federal Funding Accountability and Transparency Act
(Public Law 109-282; 31 U.S.C. 6101 note) is amended--
(1) by striking ``and'' at the end of subparagraph (E);
(2) by redesignating subparagraph (F) as subparagraph (G);
and
(3) by inserting after subparagraph (E) the following new
subparagraph:
``(F) the names and total compensation of the five most
highly compensated officers of the entity if--
``(i) the entity in the preceding fiscal year received--

``(I) 80 percent or more of its annual gross revenues in
Federal awards; and
``(II) $25,000,000 or more in annual gross revenues from
Federal awards; and

``(ii) the public does not have access to information about
the compensation of the senior executives of the entity
through periodic reports filed under section 13(a) or 15(d)
of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a),
78o(d)) or section 6104 of the Internal Revenue Code of
1986.''.
(b) Regulations Required.--The Director of the Office of
Management and Budget shall promulgate regulations to
implement the amendment made by this chapter. Such
regulations shall include a definition of ``total
compensation'' that is consistent with regulations of the
Securities and Exchange Commission at section 402 of part 229
of title 17 of the Code of Federal Regulations (or any
subsequent regulation).

TITLE VII--GI BILL FINANCING PROVISION

gi bill financing provision

Sec. 7001. (a) In General.--Part I of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 1 the following new section:

``SEC. 1A. INCREASE IN TAX ON HIGH INCOME INDIVIDUALS TO
FINANCE THE GI BILL.

``(a) General Rule.--In the case of a taxpayer other than a
corporation, there is hereby imposed (in addition to any
other tax imposed by this subtitle) a tax equal to 0.47
percent of so much of modified adjusted gross income as
exceeds $500,000 ($1,000,000 in the case of a joint return or
a surviving spouse (as defined in section 2(a)).
``(b) Modified Adjusted Gross Income.--For purposes of this
section, the term `modified adjusted gross income' means
adjusted gross income reduced by any deduction allowed for
investment interest (as defined in section 163(d)). In the
case of an estate or trust, a rule similar to the rule of
section 67(e) shall apply for purposes of determining
adjusted gross income for purposes of this section.
``(c) Nonresident Alien.--In the case of a nonresident
alien individual, only amounts taken into account in
connection with the tax imposed by section 871(b) shall be
taken into account under this section.
``(d) Marital Status.--For purposes of this section,
marital status shall be determined under section 7703.
``(e) Not Treated as Tax Imposed by This Chapter for
Certain Purposes.--The tax imposed under this section shall
not be treated as tax imposed by this chapter for purposes of
determining the amount of any credit under this chapter or
for purposes of section 55.''.
(b) Clerical Amendment.--The table of sections for part I
of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 1 the following
new item:

``Sec. 1A. Increase in tax on high income individuals to finance the GI
bill.''.

(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.
(d) Section 15 Not to Apply.--The amendment made by
subsection (a) shall not be treated as a change in a rate of
tax for purposes of section 15 of the Internal Revenue Code
of 1986.

TITLE VIII--GENERAL PROVISIONS

availability of funds

Sec. 8001. No part of any appropriation contained in this
Act shall remain available for obligation beyond the current
fiscal year unless expressly so provided herein.

emergency designation

Sec. 8002. Each amount in each title of this Act is
designated as an emergency requirement and necessary to meet
emergency needs pursuant to subsections (a) and (b) of
section 204 of S. Con. Res. 21 (110th Congress), the
concurrent resolution on the budget for fiscal year 2008.

short title

Sec. 8003. This Act may be cited as the ``Supplemental
Appropriations Act, 2008''.

Amendment No. 4789

(Purpose: In the nature of a substitute)

Mr. REID. Mr. President, I move to concur in the House amendment--
that is amendment No. 2--with an amendment that is at the desk.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:

The Senator from Nevada [Mr. Reid] moves to concur in the
House amendment No. 2 with an amendment numbered 4789.

Mr. REID. Mr. President, I ask unanimous consent that reading of the
amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
(The amendment is printed in today's Record under ``Text of
Amendments.'')
Mr. REID. Mr. President, I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There appears to be a sufficient second.
The yeas and nays were ordered.

Amendment No. 4790 to Amendment No. 4789

Mr. REID. Mr. President, I have a second-degree amendment at the
desk, and I ask for its consideration.

[[Page S4461]]

The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:

The Senator from Nevada [Mr. Reid] proposes an amendment
numbered 4790 to amendment No. 4789.

(The amendment is printed in today's Record under ``Text of
Amendments.'')
The PRESIDING OFFICER. The Senator from West Virginia is recognized.
Mr. BYRD. Mr. President, I thank the Chair.
I ask unanimous consent to speak from my desk.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BYRD. I thank the Chair, Mr. President.

Senator Ted Kennedy

Mr. President, before we begin consideration of this important
spending bill, I wish to take a moment to say how distraught and
terribly shaken I am over the news of my dear friend, my dear, dear
friend, Ted Kennedy. My thoughts and my humble prayers are with Senator
Kennedy, my dear friend, Ted; with his wife Vicki; and with the members
of the Kennedy family.

I hope and pray that an all-caring, unlimited God will watch over Ted
and keep Ted here for us and for America. Ted, Ted, my dear friend, I
love you and I miss you. And Erma, Erma, my darling wife Erma, would
say: Thank God for you, Ted. Thank God for you.

=========================== NOTE ===========================

On page S4461, May 20, 2008, the Record reads: And Irma, Irma,
my darling wife Irma

The online Record has been corrected to read: And Erma, Erma, my
darling wife Erma

========================= END NOTE =========================

Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. BYRD. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BYRD. Mr. President, this afternoon we take up legislation making
emergency supplemental appropriations for the wars in Iraq and
Afghanistan and to help Americans cope with a sagging economy. One year
ago, Congress sent the President a war funding supplemental that
included clear direction to bring our troops home, home, home, sweet
home, from Iraq by December of 2007. The President chose to do what?
Shame. He chose to veto that bill. If he had signed that bill, most of
our troops would be home, home, home, sweet home today. Instead of
bringing our troops home, the President demanded an increase in our
commitment of U.S. troops--shame--and treasure to this terrible, awful
war that has now entered its sixth year--sixth year. How long? How
long, O Lord, how long?
Mr. President, 4,081 American soldiers have died--died. One can only
die once. Over 30,000 U.S. soldiers have been wounded. By the end of
2008, the war in Iraq will have cost over $608 billion--over $608
billion. That is more than $608 for every minute since Jesus Christ was
born.
Today we are considering the President's request for another $178
billion--another $178--billion for the wars at a time when the U.S.
economy is in trouble. Well, one thing is clear. Yes, I am sorry to say
one thing is clear in this request: American fighting men and women--
your brothers and sisters and mine--will continue to be in Iraq when
the Presidency of George W. Bush ends on January 20, 2009. Shame. I was
against that terrible, horrible war from the beginning and so stated on
this floor time after time after time.
Long after our military fulfilled its mission in Iraq, the White
House failed to advance a viable strategy for establishing long-term
stability in Iraq. In response, we in the Congress will support our
troops--your troops, my troops, our troops--but we will also continue
our efforts to get our troops out--O-U-T--of Iraq with honor and take
care of our troops after they come home.
In the third committee amendment, we set a goal for reducing the
scope of the mission in Iraq by June of 2009. We ensure our troop
readiness levels are maintained. We limit the time our troops will
serve in Iraq. We require Iraq to use more of its surplus oil revenues
for reconstruction costs, and we require that any long-term commitments
this lameduck President may make with the Government of Iraq be
considered as treaties, subject to approval by this Senate.
While the war continues in its sixth year--shame--our economy at home
is in trouble. Because of President Bush's failed fiscal leadership, in
the last 7 years the U.S. Government has amassed the five largest
deficits in the history of this great Republic. President Bush has more
than doubled the U.S. debt held by China, Japan, and other countries.
Economic growth almost came to a halt at the end of last year, with the
gross domestic product falling from 4.9 percent in the third quarter to
0.6 percent--0.6 percent--in the fourth quarter.
Growth remains at a paltry 0.6 percent this year. Since March 2007,
the number of unemployed has increased by 1.1 million workers up to 7.8
million workers. In April, the number of Americans who were out of work
for at least 27 weeks rose to 1.35 million.
Yet the President--your President, my President, our President--is
satisfied to allow unemployment benefits to expire after just 26 weeks.
Did you hear that? Shame. I have reviewed the President's request
carefully, and there is no evidence--none--of the President asking for
funding to invest in America or to help struggling Americans deal with
the faltering economy.
Yet the President--your President, this President, our President--has
already thrown down the gauntlet by threatening to veto the
supplemental bill if the Congress has the temerity--did you hear that--
to add one thin dime above his request in order to help our citizens at
home.
Thirty-two months after Hurricane Katrina, the President continues to
resist efforts to help the victims of that terrible storm. The homeless
population in New Orleans has doubled to nearly 12,000 since Hurricane
Katrina. Only 48 percent of the pre-Katrina hospital beds in the region
were staffed as of November of 2006. Violent crime in Louisiana grew 53
percent last year.
In the last 18 months, the President has designated 61 disasters for
floods in 32 States. Yet the President has not--n-o-t, not--you know,
there was a duel between John Shot and John Not. In this case, it was
better to be Shot than Not. The President has not requested funds to
repair levees or other flood prevention efforts, leaving our citizens
in Arkansas--did you hear that--Missouri, Louisiana, and other States,
vulnerable to more flooding. But when it comes to Iraq, the President
wants the dollars to flow, flow, flow.
Congress has already approved $45 billion requested by the President
for reconstruction projects in Iraq. Despite the fact that the Iraqi
Government is running a huge surplus due to excess oil revenues, our
President--your President, my President, the American President--is
asking this Congress--the buck stops here--asking you and me and the
people in this Congress to approve another $5.6 billion of American
taxpayer dollars for reconstruction in Iraq.
The President claims that by adding funding for America to this bill
we are holding hostage money for the troops. Oh, my heavens, what
hogwash. What hogwash. Last year, we sent the President a war
supplemental that increased funding to provide better health care for
our soldiers, better health care for our veterans, more funding to
equip and train the National Guard and Reserve, more funding for mine
resistant vehicles, and clear direction to bring our troops home--home
sweet home. This year, we once again take care of our troops, but we
also invest in America.
Last week, the Senate Appropriations Committee met and approved
amendments that meet these objectives. Based on the committee action,
the Senate will consider amendments that fully fund the President's
request for the war. In fact, the legislation increases funding above
the President's $168 billion request for the Department of Defense. We
include increases for the health care of our troops, for Guard and
Reserve equipment, for repairing and constructing barracks, for the
mission in Afghanistan, for military childcare facilities, for
improving contract management, and for helping--yes, Senator Webb--
wounded troops returning home--home sweet home.
We honor those who have served America by increasing educational
benefits for our veterans. We extend unemployment benefits by another
13 weeks. We honor promises made to the victims of Hurricane Katrina by
funding a 100-year levee in Louisiana, restoring barrier islands in
Mississippi, and by rebuilding hospitals, helping

[[Page S4462]]

the homeless, and fighting crime. We roll back Medicaid regulations
that our Nation's Governors believe disrupt health coverage for
vulnerable citizens. We respond to dramatic increases in food prices by
increasing funding for the global food aid program.
We are also generous in providing humanitarian relief to disaster
victims in China, Bangladesh, and Burma. We reduce funding for
reconstruction in Iraq. We limit the size of taxpayer-financed
reconstruction projects. And we require Iraq to match our tax dollars
with their surplus oil revenues.
This legislation includes provisions that have broad bipartisan
support. The veterans legislation has 58 cosponsors. The Medicaid
legislation passed the House by a vote of 349 to 62. I have a letter
from 56 Senators seeking additional Byrne crimefighting funding. We
fund the Rural Schools Program, which runs out of money on June 30,
2008.
In total, the amendments include $194 billion for programs under the
jurisdiction of the Appropriations Committee, $10 billion above the
President's request. This increase is less than what we spend in Iraq
in 1 month.

So I say to my fellow Senators, Mr. President, this is responsible
legislation that supports our troops, responsible legislation that
honors our veterans, responsible legislation that helps our citizens
cope with a troubled economy.
I urge the adoption of the amendment.
I yield the floor.
The PRESIDING OFFICER. The Senator from Mississippi, Mr. Cochran.
Mr. COCHRAN. Mr. President, we are still wrestling with the challenge
of what to do about the supplemental appropriations that have been
requested by the administration.
This morning, in our Appropriations Subcommittee on Defense, chaired
by the distinguished Chair's State colleague, Mr. Inouye, and also led
on the Republican side by the distinguished Senator from Alaska, Mr.
Stevens, we heard testimony from the Secretary of Defense, Mr. Gates,
and the Chairman of the Joint Chiefs of Staff, Admiral Mullen. They
drew a very frightening picture of what is happening to the military
forces, not just in Iraq and Afghanistan and deployed elsewhere in the
world, but also in our training accounts, many other support activities
for our military, pay and allowances--all the accounts that fund the
Department of Defense that have been included in the supplemental
budget request are suffering and many are running dry. The accounts are
running dry.
We are at a point that is past serious. I am not going to say it is
desperate, but it certainly concerns this Senator that we continue to
wait and wait and wait on Congress to act on the President's request
for supplemental appropriations for our military forces at a time when
they are engaged in military action overseas and protecting our
security interests here at home. So I am pleased the Senate is taking
up this request to fund activities in Afghanistan and Iraq and to
respond to domestic natural disasters.
It is important that we act expeditiously to consider this
legislation so we can reconcile our differences with the other body and
with the President. The President submitted the bulk of his
supplemental request in February 2007 in conjunction with his regular
fiscal year 2008 budget submission. He did so because Congress clearly
expressed its desire for a full-year estimate of war costs. But
Congress did not appropriate a full year's funding. Instead, Congress
approved a $70 billion bridge fund to support our operations in Iraq
and Afghanistan. Enacting even that amount required a protracted
struggle among the House, the Senate, and the President. As a result,
the Department of Defense had to issue furlough notices, make a series
of inefficient transfers and reprogrammings, and generally function in
ways that detracted from its primary duties.
We find ourselves today facing a very similar situation. It has been
more than 15 months since the President submitted this request. We have
not approved or otherwise acted upon some $108 billion of that request.
The personnel and operations and maintenance accounts that support
our activities in Iraq and Afghanistan are running low. This morning,
Secretary Gates was asked about the consequences of this situation, and
I am going to read into the Record, with the permission of my
colleagues, some comments directly from that hearing this morning. This
is Secretary Gates:

There is, however, a more immediate concern. Congress has
yet to pass the pending $102.5 billion global war on terror
request for fiscal year 2008. And as a result, the Defense
Department is currently using fourth quarter funds from the
base budget to cover current war costs. Shortly, two critical
accounts will run dry. First, Army military personnel after
June 15. We will run out of funds in this account to pay
soldiers, including those in Iraq and Afghanistan. Second,
operations and maintenance accounts. Around July 5, O&M funds
across the services will run out, starting with the Army.
This may result in civilian furloughs, limits on training,
and curbing family support activities.
If war funds are not available, the Defense Department can
transfer funds from Navy and Air Force military personnel
accounts to pay soldiers, but that would get us only to late
July. Using the limited transfer authority granted by
Congress would also help get us to late July. Doing so,
however, is a shell game which will disrupt existing programs
and push the services O&M accounts to the edge of fiscal
viability.

I could go on. He went on into some more detail about other accounts.
I think we get the picture. I got the picture.
Our full subcommittee membership was in attendance for most of the
hearing. I was disappointed that I was sitting there listening to the
consequences of deliberate actions by the Congress to delay the
availability of funding for our national defense, not just war funding
for Iraq and Afghanistan; it has implications across the Department of
Defense and into other accounts in other departments that are likewise
affected by this denial of funding for our forces at a time when we
need them to be fully prepared, fully trained, and fully engaged to
help win the war against terror.
According to an earlier letter, so you won't get the impression that
we have not been forewarned, the Deputy Secretary of Defense, Gordon
England, wrote us a letter on May 15 advising us that the Army would
run out of military personnel funds by mid-June. He said if the
supplemental legislation is not enacted by Memorial Day, the Department
of Defense will be compelled to borrow funds from other services to
finance Army operations into July and the Army would be out of options
to pay its soldiers. He said the Department would be compelled to
constrain expenditures from the Army operations and maintenance
accounts. He said it will have to issue notices of potential furloughs
of civilians funded from this account.
So we have been on notice from the Deputy Secretary and now this
morning from the Secretary himself, as well as the Chairman of the
Joint Chiefs of Staff.
We have been advised that the operations and maintenance accounts
also fund the Commander's Emergency Response Program, a program that is
critical to the success of our military commanders in Iraq and
Afghanistan. He said those funds will run out in June.
I ask unanimous consent, Mr. President, to have printed in the Record
the letter from Secretary England.
There being no objection, the material was ordered to be printed in
the Record, as follows:

Department of Defense

Washington, DC, May 15, 2008.
Hon. Thad Cochran
Ranking Member, Committee on Appropriations, U.S. Senate,
Washington, DC.
Dear Senator Cochran: I am writing you to follow up on the
Secretary's letter of May 5 regarding the Department's
financial posture and the urgent need for Congress to pass
supplemental funding legislation for the Global War on Terror
(GWOT).
As briefed to senior Congressional staff last week, absent
additional Congressional action, the Army will run out of
Military Personnel funds by mid-June and Operation and
Maintenance (O&M) funds by early July. Funding for civilian
personnel is included in the O&M account. Also included
within the O&M account is the authority to continue the
Commander's Emergency Response Program (CERP) activities in
Central Command. CERP funding is a critical enabler that our
ground force commanders are using on a daily basis in Iraq
and Afghanistan to shape the strategic environment. This
authority will be fully expended in June, and reprogramming
actions cannot extend this particular authority.
If GWOT supplemental legislation is not enacted by Memorial
Day, then the Department will submit to the Congress two
reprogramming actions on May 27. These reprogramming actions
for personnel and for

[[Page S4463]]

O&M accounts will finance Army operations until late July by
borrowing money from other Services. By that point in late
July, the entire Department will be in extremis, having
exhausted all avenues of funding and will be unable to make
payroll for both military and civilian personnel throughout
the Department. Service members, including those engaged in
Iraq and Afghanistan, would continue to serve but without pay
since military personnel accounts would be exhausted.
Further, at that time, O&M funding would also be depleted,
and DoD activities around the globe would be reduced to
essential activities. Additionally, other measures would need
to be taken, such as civilian furloughs and limits on non-
essential operations. These highly disruptive steps would
have to begin well before late July.
While the Department has the reprogramming recourse on May
27th as discussed, if legislation is not passed by Memorial
Day, the Department will still be operating with less than
the desired effectiveness and efficiency. Therefore, I urge
you to provide the essential GWOT funding before the Memorial
Day recess.
Sincerely,
Gordon England,
Deputy Secretary of Defense.

Mr. COCHRAN. Mr. President, what are we going to do? Are we going to
let our men and women in the field stop their activities? Is that what
Congress is urging be done, just sit down, stop what you are doing in
Iraq and Afghanistan? I don't believe that. That is not the message
this Senate wants to send or intends to send. But we should not put the
men and women of our Armed Forces and their families here at home
through such an ordeal and a period of such unnecessary uncertainty. We
should not cause the Department of Defense to operate at less than peak
efficiency or take actions that are demoralizing for Department
personnel simply because Congress fails to act in a timely manner.
I don't know why it has taken Congress so long to act. I do know the
request has been before the Congress for more than 15 months. Think
about it: an emergency supplemental request for funds for national
security languishing in Congress for 15 months. Most people don't know
that.
We have held hearings, we have had meetings with administration
officials, we have heard testimony from General Petraeus, our commander
in Iraq. Our Ambassador in Iraq has testified about the consequences on
accounts for the Department of State which are also included in the
legislation. But instead of marking up a supplemental bill to respond
to the request a month ago, as had originally been planned, the
majority chose to spend weeks talking with the majority in the other
body, trying to decide what to do, when to do it, negotiating with
themselves.
I would have hoped that the legislation could have been brought up
under a better parliamentary scheme designed to get the job done, not
to just create political advantage, not just to put off the inevitable
day of reckoning. That is an unfortunate choice to make. The fact is,
had we followed the regular order, we could have had a bill to the
President by now. Had he chosen to veto the bill, we might well be
working this week to resolve differences with the administration and
produce a bill that could be signed or whatever the Congress decided to
do to work its will, but to act. Instead, we are facing the approach of
a Memorial Day recess with no clear path, no clear plan to enactment of
legislation and little prospect for meaningful input by Members of the
Senate.
I applaud the chairman of the Appropriations Committee, my good
friend from West Virginia, for calling our committee to a markup of the
supplemental. When it became apparent that the leadership plan was to
bypass the Appropriations Committee in both Houses, our side wrote a
letter to the chairman expressing our preference for a committee
markup. I suspected that was consistent with his views, too, and that
was correct.
We know about the prerogatives of the Appropriations Committee and
how the chairman safeguards those and how he respects all members of
our committee. So he honored that request. But the other body has not
acted in this way. There still has been no markup in the other body.
So we are in this dilemma. We are asked by our respective Houses--the
Appropriations Subcommittee on Defense--to make recommendations, to
produce legislation to take care of our country, to defend our
interests, but we have not found a pathway to enacting a bill or
responding in a professional way to the wishes of our Members.
As it stands now, the Senate amendments contain a number of
legislative provisions and appropriations that were not included in the
President's request. The President has said very clearly he will veto
this bill if it includes language that unduly constrains our military
commanders in the field in Iraq and Afghanistan or which imposes
artificial timelines for withdrawal. He has also said he will veto a
bill that is too costly.
I am not one who thinks an appropriations request submitted by this
President or any other President is written in holy tablets, somehow
immutable and not subject to improvement or change during the
legislative process. The Senate and the House have a right to work
their will. Since the President saw fit to recommend certain measures
to protect the State of Louisiana from future hurricanes in response to
Members' requests for those funds, I thought it appropriate to
recommend certain projects that would similarly be helpful to my State,
which was also a victim of Katrina, to deal with the continuing
challenges to the security and the well-being of the citizens of that
region if other hurricanes strike in the future.
The President has every right to look at those requests and make his
decision. But I do not think he is going to veto this bill because of
those requests that are included in the bill. I think he is sympathetic
to the needs of the Mississippi and Louisiana gulf coasts and elsewhere
in the country, so accounts that were depleted because of the
destruction of the hurricane can be renewed and resupplied in this
supplemental. The committee has approved including those funds.
We need to find common ground. This is what I am saying. We have had
differences of opinion with the administration--Members on my side
have; some on the other side have--for various reasons. But let's get
to a point where we can work out our differences. If he wants to veto
the bill, he will veto the bill, and we will see whether we have the
votes to override it. If we do not, we can try again. Eventually these
funds have to be made available. These requests are too important to be
ignored any longer. We need to find common ground. That is what I am
saying. And we need to do it now.
We do not need to prolong this activity--describe it however you want
to--any longer. We need to get down to brass tacks. We cannot allow
political maneuvering on either side to obscure our core duty in this
matter. We need to provide our men and women in the field with the
resources necessary to conduct successfully the mission assigned to
them by our Government, and to do it without undue delay.
I do not think the exchange of messages--strategy, or whatever you
want to call it--is appropriate or necessary as a substitute for
legislation. I do not think it will result in an enacted bill any
sooner than had we simply acted in the regular order. But that choice
has been made, and we must deal with it. I will do my best. I commit
myself to work with the Senate leadership, with our colleagues in the
other body, and with the President to find a way to get the job done in
a timely manner.
I yield the floor.
Mr. BYRD. Hear, hear.
The PRESIDING OFFICER (Mr. Salazar). The Senator from West Virginia
is recognized.
Mr. BYRD. Mr. President, I thank Senator Cochran for his views and
his many courtesies. Last week the Senate Appropriations Committee had
a 3\1/2\-hour markup of the important legislation that is now before
the Senate. I hope the Senate can approve this legislation to support
the troops and to help Americans cope with the sagging economy--this
week.
I yield the floor.
The PRESIDING OFFICER. The Senator from Virginia.
Mr. WEBB. Mr. President, I ask unanimous consent I be allowed to
engage in a colloquy with the senior Senator from Nebraska and the
senior Senator from Virginia.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. WEBB. Mr. President, I would like to join two of my three
principal cosponsors on S. 22 in speaking about how important this
piece of legislation

[[Page S4464]]

is, and how appropriate it is to have it be placed on the supplemental
appropriations measure. The senior Senator from Virginia has an
amendment we are going to offer. Hopefully, in the spirit of what the
Senator from Mississippi just said, we will try to lay some of these
arguments by the wayside and get a bill that will truly provide the
right kind of readjustment benefits to those who have been performing
such exemplary service since 9/11.
S. 22 was introduced on the first day of this Congress. From that
point we have had strong bipartisan and bicameral support. We now have
58 cosponsors in the Senate, including 11 Republicans. Among those
Republicans is the senior Senator from Virginia, the former chairman of
the Armed Services Committee, and the senior Senator from Nebraska, the
only Member of this body to have served in a high-ranking position in
the Department of Veterans Affairs.
Just last week in the House, in spite of some of the debates that
went into pay-for provisions and tax provisions, we saw a strong vote.
We had 300 sponsors of this provision in the House, including more than
90 Republicans. Even on what was largely viewed as a partisan vote in
other areas, we had 33 Republicans vote for this bill.
This bill is supported by the current chairman of the Armed Services
Committee; as I mentioned, Senator Warner, the former chairman of the
Armed Services Committee and the former Secretary of the Navy; the
serving chairman of the Veterans' Committee, Senator Akaka, who was
just in the chair; the former chairman of the Veterans' Committee,
Senator Specter. It has the strong support of all of our leading
veterans organizations, including the American Legion, the Veterans of
Foreign Wars, the Iraq-Afghanistan Veterans. The Disabled American
Veterans have taken a firm position, as have many more.
We have, I would say, at least 15 of the top veterans organizations
having participated in the modification of this bill and strongly
supporting it. Many major higher educational institutions and
associations have endorsed this bill, including the American Council on
Education, the National Association of Independent Colleges and
Universities, and the National Association of State and Land Grant
Colleges.
This bill is carefully crafted. It has been substantially improved by
the participation of all of the groups that I just mentioned plus many
of our Members. It is appropriate on this legislation as a cost of war.
There are people who discuss this in terms of cost. This is a bill
that closely resembles the benefits that we gave to our returning
veterans in World War II--a series of educational benefits which
leveled the playing field in America and allowed those who served a
first-class opportunity to move into the future. We owe these young
men and women who have been serving since 9/11 no less. We owe them no
less. This is emphatically a cost of war.

When we can spend $600 billion and, by some estimates, $3 trillion in
a life cycle as a result of this war, the least we can do is spend the
money in this bill to allow these people the best opportunity they have
to succeed in their lives.
There has been some resistance from some of the Members of this
body--some of the Republican Members of this body--and also from the
administration to this bill. Some have said it is too generous. I just
discussed that. We worked very hard to make it fair and relevant to the
priorities we should be having. Some have said it would be difficult to
administer. We have worked with the Department of Veterans Affairs and
with the Department of Defense on areas where they had concerns, and we
addressed those concerns. It is interesting to point out, for those who
talk about the potential difficulty of administering a bill such as
this, that the U.S. Department of Veterans Affairs was able to
administer a very similar bill after World War II in a day where we
didn't have computers, and they were able to do it for 8 million
people. We are not talking anywhere near that number, so I believe we
have addressed all of those concerns.
The last issue that has been discussed, and it has come up again and
again, is the concern that provisions such as are contained in this
bill would affect retention in the Active-Duty military. As someone who
has spent 5 years in the Pentagon, 1 as a marine and 4 as a defense
executive working on manpower issues--and I am sure Senator Warner who
spent more time in the Pentagon than I have would share this
commentary--I believe the provisions of this bill actually will
dramatically increase recruitment and that the manpower model would
benefit from it.
With respect to retention itself, the discussion has been made that a
bill like this should have, as a part of it, a concept called
transferability, which would allow Active-Duty military people to
transfer this educational benefit to family members.
I want to make a clarification as to where the main target of this
bill is, then I want to speak very briefly about transferability, and
then I would like to recognize my colleague from Nebraska.
I believe there is a misperception in this country that because we
have an all-volunteer system, we actually have an all-career military.
We do not. A lot of people come to the military in the United States
because they love their country, because they have a family tradition,
because they want to soldier for a while and then move on to other
things. Frankly, these are the people who have not been properly taken
care of in the years since 9/11, and they are the principal target of
our legislation.
The U.S. military has done a very good job taking care of its career
force. When you hear arguments about entitlement to transferability,
again, they are talking about managing the career force. But these are
the actual numbers that have been given to us by the manpower chiefs in
the Department of Defense.
In the U.S. Army, by the time a cohort group has finished its first
enlistment, 75.5 percent of them have left or will leave the U.S. Army
at the end of a first enlistment. In the Marine Corps, 70 percent of
the people who enlist will leave by the end of their first enlistment,
either through attrition or deciding not to reenlist. For approximately
50 percent of the Air Force and the Navy it is the same.
If you look at the Active-Duty military on the enlisted side, an
overwhelming majority of them leave the military by the end of their
first enlistment. These are the people who have had readjustment
difficulties that we have talked about. These are the people who
deserve to have a first-class education in order to move them into the
future.
This group over here, about a quarter of the Army, about 30 percent
of the Marine Corps, and about half of the Air Force and the Navy, are
the people who reenlist at least for one term. This is the group that
has received so much of the argument of this administration on issues
of retention. We need to take care of this group. We are prepared today
to discuss a way to address this transferability issue with this
smaller but very important group.
I point out with the issue of transferability that Senator Warner had
introduced a provision that was enacted into law about 6 years ago that
allowed the Service Secretaries to provide transferability to military
people at the discretion of the Service Secretaries as a retention
device. This has been in the law for 6 years with respect to the
Montgomery GI bill, the bill we are going to replace. It has almost
never been used.
On the one hand, we hear all this talk from the Department of Defense
about how important this is and how they hear about it every day when
they go out to their meetings and their townhall meetings, but the
Service Secretaries have almost never used this benefit that has
already been on the books. So I am concerned about how widely this
benefit would actually be used.
At the same time, I believe it is important, and our principal
sponsors believe it is important, that we continue the existing law
with some modification to give the U.S. Department of Defense the
opportunity to test it again, to put it in this bill, continue it as
law with some tweaks on it. As the Senator from Mississippi had said
earlier, I hope with this gesture that we can get full support for this
legislation and get it into law. The clock ticks for young people after
they leave the military in terms of how they are going to readjust to
the rest of their lives. The clock has

[[Page S4465]]

been ticking for a lot of people since 9/11, and it is our duty to do
something about it this year.
With that, Mr. President, I yield to my colleague from Nebraska, my
longtime friend, Vietnam combat veteran, and former official in the
Department of Veterans Affairs.
The PRESIDING OFFICER. The Senator from Nebraska is recognized.
Mr. HAGEL. Mr. President, I am grateful to my colleague, the junior
Senator from Virginia, for his continued leadership and years of
contributions to our country, especially on behalf of our veterans. I
would like to make some remarks focused on the general scope of what
this effort is about.
The Senator from Virginia has laid out very concisely, cogently, some
of the realities of the force structure we have today and why it is
important and in the opinion of almost 60 Senators and over 300 House
Members that we take the so-called GI educational benefits this country
committed to beginning in 1944 when President Truman signed the first
bill and roll those forward into the 21st century, because what has
happened is that we are now caught in a different kind of a world,
different kinds of wars, different kinds of requirements. But what has
not changed is the absolute necessity that we rely on quality
individuals to man our force structure. In a world that is far more
complicated, combustible, and dangerous than ever before, it has
required new sets of skills, obviously technologies, to defend our
country, our interests in the world. It is that reality that we must
adjust to within the framework of all of our policies.
What we are doing here is not adding a new benefit, we are not adding
a welfare program; what we are doing is we are bringing up to date the
benefits earned by men and women who have committed a good part of
their lives to our country. We had that debate a long time ago, whether
America wants to do that. Now, unless there are some individuals in the
Congress or in America who want to go back and reengage that issue, we
can do that, but I do not think that is the case. I think we recognize
those who serve. I think we also, in recognizing their service,
understand they have earned certain benefits.
So we are rotating a GI educational benefit system forward into the
21st century, a system that has not been changed for 25 years. And as
reflected in Senator Webb's charts--these, by the way, I remind our
colleagues, as was noted by the junior Senator from Virginia, these are
not his numbers, these are numbers from the Defense Department. So if
we are to take care of our people, because we rely on our people to
take care of us, if we rely on that rifleman, that person at the bottom
who has always been the one whom we have asked to fight the war--fight
the war, die in the war, sacrifices by their families, those who do not
come back, many who come back are seriously scarred, wounded, will
never recover. That is the reality of the world in which we are living.
So we are talking about a relevant system, relevant to today's costs
for an education.
I benefited from the GI bill when I came back from Vietnam, as did
the junior Senator from Virginia, as did the senior Senator from
Virginia when he came back from World War II, the Korean war, as did
almost every veteran in this body who has fought in a war benefitted
from this program. So it is important that we get something very clear;
that is, this is not a new program.
Now, as the Senator from Virginia noted, this then fits into the
larger framework of a cost of war. Unless we are going to just discard
the people whom we count on, that rifleman at the bottom who does not
have much say in all of this, by the way--he is told to take the hill;
he takes the hill. He doesn't set policy. Our military doesn't set our
war policy. They have input and influence into the strategy, into the
tactics, but we, the elected officials of America, starting with the
President, his team, and the Congress, we are the ones who set policy,
we are the ones who engage our Nation in war.
By the way, just as an aside, I think we should go back to a day in
this country when we wanted and did, in fact, commit our Nation to war,
we should declare that in the Congress of the United States, we should
declare war rather than these skirmishes that we kind of on the side
fund and we on the side deal with. We on the side never really come
clean with the reality.
Here is an opportunity for us to do what is right and what is wise--
what is right and wise; that is, to bring this educational benefit
program forward.
The Senator from Virginia noted something that is very important--the
administration of this program. That is always important, who
administers the program, how will it work, can it work?
We have worked very diligently--our staffs, with many Members
involved--with the Veterans' Administration, the Department of Defense,
to make this work. We have ample testimony, recent testimony before the
Veterans' Committee in the Senate from senior Veterans Administration'
officials saying: This can work. We can now do this. We can implement
this.
The cost. The cost is an interesting debate, in my opinion, because
if, in fact, we are a nation that can afford the cost of war, we can
afford $12 billion a month waging the war in Iraq, we can afford all
the requirements it takes for a nation to go to war, but somehow we are
disconnected from the obligation and responsibility of taking care of
those who fight the wars? We somehow can't find the money for that? We
somehow want to look the other way? I don't think so. I don't think the
American people--and they never have been--are in agreement with that.
As to the retention issue, the Senator from Virginia again addressed
this. Even taking the Senator's arguments, as clearly as the Senator
from Virginia did, and making those arguments--and I can make them
again, and others will--I am not sure that is even necessary because
this is not a retention bill. There is a consequence to this bill, of
course. We should frame within the text and the context of this bill a
dynamic of retention: How can we make it attractive for our young
people to serve aside from the fact that they love their country, they
want to be part of something larger than their own self-interest, they
want to make a noble contribution to freedom, to the world, to peace,
to their families, to their future? And you can't substitute that. That
is bigger than any benefit. Of course it is.
But the reality is, just as Harry Truman and just as our leaders back
during World War II understood, just as every leader has understood
since then, as we have continued to commit to our veterans, those who
fight the wars and their families, it is wise to reinvest in our
society.
How do you reinvest in our society? Well, one way, certainly an
important way, is education. It is assuring these men and women who
give of themselves--in a very selfless way that very few people do, by
the way, especially today, when you look at less than 1 percent of the
society, the American society, our population, less than 1 percent is
bearing all of the burden. They are carrying it all for the rest of us.
What do I mean by that? Because they are the few who are serving in two
wars, rotation after rotation in Afghanistan and Iraq and on duty all
over the world and in this country. So when they are finished, just as
the Senator from Virginia has noted, in the Army and Marine Corps, it
is more than 50 percent, after the first enlistment, that leave. Would
it not be smarter, would it not be wise to reinvest in these people, to
help them get an education so they can continue to contribute to
America and strengthen America in every way?

National security is not only about the military. In fact, I think we
can make a pretty strong argument that the military is obviously an
essential component, but just as important is the economic vitality,
this culture, the society, the commitment, the education of a society.
That all has an awful lot to do with the national security of a nation.
This makes sense. This bill makes sense. It makes sense on this
supplemental. This isn't divorced from that. This isn't an add-on to
that. This isn't something we just invented. This is part of a larger
context of service and earned benefits for those who serve.
I am very pleased that we are finding more and more ways to enlist
more individuals in this effort. I think with what the Senator from
Virginia noted as to an add-on on transferability, it

[[Page S4466]]

makes it more attractive. The senior Senator from Virginia, I assume,
is going to speak to that when he takes the floor in a moment. I think
when we frame up all of this, as the Senator from Virginia noted, this
is the product of a composite of contributions from many individuals,
from almost every veterans group I am aware of, from people who care
about their country, who care about the veterans who serve this
country, and care about our future.
I appreciate the leadership of the junior Senator from Virginia.
I understand in our series of colloquies that the senior Senator from
Virginia is prepared to make some comments.
I yield the floor.
The PRESIDING OFFICER. The senior Senator from Virginia.
Mr. WARNER. Mr. President, I thank my colleague, Senator Hagel, and I
thank my distinguished partner in the Senate, Mr. Webb. We have known
each other for a very long time, over 30 years. When I was in the
Pentagon, we were associated together at that time. He had a long and
distinguished career in the U.S. Marine Corps and following that in the
Department of Defense in two very senior--including Secretary of the
Navy--positions of civilian leadership. He has shown that same
leadership from the day he crossed the threshold of the Senate, that
this is his No. 1 priority. And how pleased and, indeed, humbled I am
to join him and my good friend, Senator Hagel, in making this possible.
What we are trying to do, very simply, is to enable this generation
of young men and women to have, as nearly as possible, the same
benefits as former generations--most specifically, the generation from
World War II and the Korean War generation of which I was a part.
Both of these gentlemen are highly decorated combat veterans. I have
a less significant career in the service. But all three of us bring our
own experience to bear on thinking this is essential for this
generation who is going out and fighting as courageously as any
servicemember in the history of this country and, in fact, perhaps with
an added measure of courage because they are fighting an enemy that is
so difficult to define, an enemy that does not have any state-sponsored
nation attached to it, which is the form of the terrorism today.
I wish to thank the distinguished chairman of the Appropriations
Committee, who has graced us on this floor for the purpose of listening
in on this debate, for guiding it through the current supplemental bill
in the Senate, and including Senator Webb's bill in it. Indeed, I saw
Senator Murray here and Senator Inouye, who both helped us get that
done.
Now, much has been said by my colleagues about how we are trying to
bring up the level of funding for the GI bill from the current existing
Montgomery GI bill.
Mr. President, I ask unanimous consent to have printed in the Record
this document which traces the history of what is known as the Pell
Grant Program.
There being no objection, the material was ordered to be printed in
the Record, as follows:

PELL GRANT FUNDING, FY2000-09
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fiscal year Academic year Maximum award Recipients Average award Appropriation
--------------------------------------------------------------------------------------------------------------------------------------------------------
2000.......................................................... 2001-01 $3,300 3,899,433 $2,040 $7,639,717,000
2001.......................................................... 2001-01 3,750 4,812,000 2,411 8,756,000,000
2002.......................................................... 2002-03 4,000 4,778,507 2,434 11,314,000,000
2003.......................................................... 2003-04 4,050 5,139,638 2,469 11,364,647,000
2004.......................................................... 2004-05 4,050 5,308,433 2,473 12,006,738,000
2005.......................................................... 2005-06 4,050 5,164,000 2,455 12,364,997,000
2006.......................................................... 2006-07 4,050 5,159,139 2,480 * 17,345,230,000
2007.......................................................... 2007-08 4,310 5,427,611 2,650 13,660,711,000
2008 Discretionary............................................ 4,241 14,215,000,0000
2008 Mandatory................................................ 490 2,030,000,000
2008 Total.................................................... 2008-09 4,731 5,577,937 2,945 16,245,000,000
2009 Request.................................................. 4,310 13,851,059,000
2009 Mandatory................................................ 490 2,090,000,000
2009 Total Request............................................ 2009-2010 $4,800 5,764,108 $3,154 $18,941,059,000
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Compiled by CRS from Department of Education tables, based on December 2007 assumptions.
Note: Appropriations may include funds to retire previous year shortfalls. This amount inlcudes $4.3 billion in mandatory funding to eliminate the
program's accumulated funding shortfall.

Mr. WARNER. That is a very fine program enabling individuals who are
qualified to go to colleges and universities all across America--all
across America--to any college or university that accepts them, to
obtain a grant from the United States of America to help him or her
with their tuition and other expenses.
This is the interesting thing. The program was initiated in 2000, but
I use as a benchmark the year 2001. There were 4.8 million individuals
who accessed this program. The Congress appropriated $8.7 billion to
defer their expenses. Fast forwarding from 2001 until 2009, the total
request is as follows: roughly, a 20-percent increase in the number of
individuals going. It goes from 4.8 million to 5.7 million, a little
under 1 million. Now here is the astonishing thing. The amount of money
Congress appropriates for the 2009 class of 5.7 million is $18.9
million.
Mr. WEBB. Will the Senator yield?
Mr. WARNER. Yes.
Mr. WEBB. My understanding of the program is that would be $18
billion.
Mr. WARNER. I thank the Senator for correcting me. In the year 2009,
it is $18.9 billion. That is over a 100-percent increase, keeping up
with inflation, keeping up with added expenses. But that is not the
case with the existing GI bill. Although there has been a CPI
adjustment, it doesn't compare to how Congress has treated the
category, a well-deserving category, of the Pell grants. So this is
essentially what we are trying to do.
My colleagues, the three of us, have worked together on the question
of transferability. I wish to go back and acquaint the Senate with some
history. I was chairman in 2001 of the Armed Services Committee, and I
worked with a distinguished former colleague, Senator Max Cleland. He
introduced, along with myself, on May 23, 2001, an amendment on the
ability of a service person, after stipulating periods of time, to have
some transferability to his family. The cosponsors, at that time, of
the original amendment were Senators Bingaman, Dayton, Kennedy, Levin,
and myself. I was the only Republican. There were several other
Senators, four more. I was the only Republican who stepped up at that
time. Later it became a bipartisan effort. In the evolution of events
that year, we marked it up. But here is the interesting thing. On June
28, 2001, in the Senate Committee on Veterans' Affairs, at a full
committee hearing, there was no markup or no action taken on the bill.
So then we decided, on the Armed Services Committee, we would act. In
September of 2001, our bill was accepted by the full Senate and became
law on December 28, 2001.
I pay my respect to those who formulated the concept of
transferability originally in the Senate. It is the law today. I will
send to the desk later today an amendment, which Senator Webb, Senator
Hagel, and I worked on. We are joined by two other original cosponsors,
Senator Levin, current chairman of the Armed Services Committee, and
Senator Akaka, current chairman of the Veterans' Affairs Committee.
This amendment will be filed at the desk this afternoon. We are going
to make a technical adjustment to it. The purpose of this amendment is
to provide a 2-year pilot program of transferability. We track as
closely as possible the original law I recited that was enacted on
December 28, 2001. The details will be provided to the full Senate when
we file the amendment.
Essentially, we are asking an individual to complete his or her first
4-year term of enlistment and then, if they enlist for another 6 years,
there is a vesting over a period of time of the

[[Page S4467]]

full transferability of their benefits, as a sequence of time, to their
family.
In the letter from the Secretary of Defense to the Senate, which
talked about the need for transferability--and I am not sure at that
time whether he was referring to the existing law or a new law--he
said: ``Transferability supports military families, thereby enhancing
retention.''
There it is. We are meeting the Secretary of Defense's letter to the
Senate expressing the need for this transferability.
In my career, winding up 30 years in the Senate, I can't think of a
piece of legislation in which I have had a greater emotional
involvement. I am so pleased to share it with my good friend, the
junior Senator from Virginia, and my friend from Nebraska. As I said
when we first began to debate this bill, with a deep sense of humility,
it is highly unlikely I would have ever achieved the opportunity to
come to the Senate had it not been for the GI bill given to me by the
United States in return for modest service in the last year of World
War II and then a second period of active duty service during the
Korean War, this time in the Marine Corps. I feel it so strongly in my
heart. I don't know of any time I have felt more strongly the need to
do something than this today.
Through the years, I have been to Iraq many times, Afghanistan.
Throughout the intervening period, I visited military bases and spent
as much time as I could with the men and women of the Armed Forces
today. Each of us does the same thing, works with our military. On
Monday, I was privileged to go into the State that Senator Webb and I
are privileged to represent. We worked together to get funding in years
past--and he is supporting it today--to build a new armory for the
National Guard in Virginia, a famous regiment that fought in World War
I and World War II. Members of that regiment were the first to go in on
D-Day. They fought subsequently. I felt at that time that we are doing
the right thing with this bill, taking care of those future guardsmen
and reservists and active-duty individuals. This is the right thing for
the Senate to do.
I understand there are honest differences of viewpoints and
approaches. That is true with all legislation. Other colleagues have
put in a different bill. It had a section on transferability. In some
ways, it tracked what is existing law but not in the way we are doing
this. This amendment, this bill, if amended, will bring forward
existing law, incorporate it into the underlying amendment sponsored by
Senator Webb and ourselves, and that will become, hopefully, at some
point in time the new law that will govern future benefits of our GIs
and sailors, airmen and marines. We file it today because I do not know
exactly how this supplemental will go through. I don't know if there
will be a window of opportunity put on it. If there is, we will
exercise that opportunity. But if it is not, we are going to, as a
team, bring it to the attention of the Armed Services Committee in the
context of the annual authorization bill, which I presume will be done
just before the Fourth of July recess.
We will affix to it that bill so it will eventually be amending the
underlying bill, which I hope becomes law very soon as a component of
the supplemental process now being undertaken by the Senate and the
House.
Again, I salute my colleague from Virginia and my colleague from
Nebraska. We have been here together. We have shared many opportunities
to do something such as this together but none as important as this
one.
I yield the floor.
The PRESIDING OFFICER. The Senator from West Virginia.
Mr. BYRD. Mr. President, I thank Senator Webb, Senator Warner, and
Senator Hagel for their leadership on this extremely critical issue of
providing education benefits to our veterans. I am a cosponsor of their
legislation and was happy to include it in the emergency supplemental
legislation, approved by the committee last week and now pending before
the Senate.
On another subject, for purposes of compliance with Senate rule XLIV,
I certify that the information required by Senate rule XLIV related to
congressionally directed spending has been identified in the committee
explanatory statement filed on May 19, 2008, and that the required
information has been available on a publicly accessible congressional
Web site in a searchable format at least 48 hours before a vote on the
pending bill.
Mr. WARNER. Mr. President, I thank my longtime friend and Member of
this institution, Senator Byrd, for endorsing this bill and becoming a
cosponsor. I also thank the Senator from Washington, Mrs. Murray, who
worked on this legislation and seeing that it was put into the
supplemental.
The PRESIDING OFFICER. The Senator from West Virginia.
Mr. BYRD. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. DOMENICI. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.

Senator Ted Kennedy

Mr. DOMENICI. Mr. President, I do not wish to use much of the
Senate's time--just a few moments--but I came to the floor to say some
words to my good friend, Senator Kennedy, and his family.
We heard the early news, and then we heard the late news, in which
you have been described as being a little bit more ill than we thought.
I wish to say to you and your family, as a fellow Senator from the
other side of the aisle: I wish for you the best and hope the Good Lord
intends for you to get well so you can come back and accomplish some
more things and so you and I can have some more arguments and so you
and I can have red faces when you argue and I argue and my wife calls
up and says: You both are arguing so much that your faces are so red
nobody will listen to you.
That happened once, and I did communicate to Senator Kennedy that my
wife had told me I was getting too red in the face because I was
yelling. I asked her: What about Senator Kennedy? And she said: Well,
that is not your business, but he is yelling too much too. So I told
him that, and he had a big laugh.
I wish to say to him that this great big bill we are working on--
parity for the mentally ill by the insurance companies of America;
about a 6-year project of his and mine--the House sent us back the bill
today, Senator Kennedy, believe it or not. After all these days we have
been wishing we could get something, they sent us that bill today. They
did not send us exactly our bill, so who knows how much longer we will
have to work at it. But this one, big bipartisan bill you started
helping me with when I was in the majority, we have not got it there
yet, but we will. It has been a pleasure working with you on that and
many other things.
But most of all, I came to the floor knowing it is not easy to get a
hold of you, and I do not intend to try to bother anybody, but at least
in the Senate, we are free to speak, so I am speaking how I feel: that
I hope you get well, and I hope the Dear Lord blesses you and your
wonderful wife, whom I have known, not as well as I know you, but what
a nice lady she is. On behalf of Nancy and myself, we say to her, we
hope everything goes the very best it can. You are in the best of
care--and that is what you should have--and we hope you get well.
Thank you. I thank the Senate for the few moments yielded to me.
Mr. President, I yield the floor.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. DORGAN. Madam President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER (Mrs. McCaskill). Without objection, it is so
ordered.
Mr. DORGAN. Madam President, midday today during our Democratic
Caucus, when we learned our colleague Senator Kennedy is now facing
some very serious health problems, it is an understatement to say we
were all shocked by that news and saddened by it.
Senator Kennedy has for decades been a major presence in this Senate
Chamber. He is a friend, a colleague, and all of us have said prayers
today for his recovery.

[[Page S4468]]

Senator Kennedy has faced much adversity in his life, but he has also
contributed so much to this country. I know he will meet this challenge
with the same strength and the same grace he has met other challenges.
It is my purpose today to say it is my prayerful hope, and I know the
prayerful hope of all Members of this Chamber, that in the row behind
me and four desks to my left we will once again at some point in the
future see Senator Kennedy among us to continue his service to his
country.
My thoughts and prayers are with our colleague for a full recovery.
Madam President, I wish to visit for a few moments on the piece of
legislation in front of us which includes the GI bill. We have had a GI
bill in this country for many decades. There is a new GI bill in the
underlying legislation that is brought to the floor of the Senate. I am
so proud to be a cosponsor of it and to be a part of what so many in
this Chamber have put together. The GI bill is such an important part
of what this country does and says to those who serve this country.
This weekend I traveled, and at an airport in Minneapolis there was a
family--a man, a woman, and three children; three very young children--
getting on the same plane I was boarding. They were from North Dakota
but they lived on a military base in Georgia. The wife came up to me
and said hello. She said: My husband has done three deployments in
Iraq. I hope--I so hope--that you can find a way to end this war.
This is a woman who has watched her husband leave for Iraq three
times; a woman who is taking care of her three young children while her
husband is deployed three times to the country of Iraq. I visited with
her husband and her children, and I know that family is proud to serve
their country. I know the entire family is proud of that soldier's
service. But I also know the costs of that service, because you could
see it in the eyes of that soldier's spouse.
Also on Saturday morning I went to an event in one of our cities. It
was a homecoming event for 35 soldiers who had just come back from
deployment in Afghanistan. These were National Guard soldiers. They too
were so proud to have served their country, and some of them had been
deployed twice; two deployments to Iraq or Afghanistan. One or two had
been on their third deployment. Their families were there and all of
them were enormously relieved and pleased to have their loved ones
home.
I was thinking about those events: meeting a family at an airport, a
soldier who is stationed in Georgia but who is a North Dakota native,
and visiting with the family members at the National Guard event and
saying thank you to them from a grateful nation.
I was thinking about a day much earlier when I was asked to present
medals earned by an American Indian who served in the Second World War
but had never received his medals. His name was Edmund Young Eagle. He
was a Standing Rock Sioux Indian. He was someone who enlisted in the
Army in the Second World War and went to war. He served in northern
Africa, Normandy, and across Europe. He served with great distinction
as an American soldier in some very difficult fighting.
He then came back to the Indian reservation and lived kind of a tough
life. He never had very much. He never married. He never had very much
in his life, but he lived a good life nonetheless. At the end of his
life, he was in the veterans home and then got sick and was put in the
veterans hospital in Fargo, ND. His sister contacted my office and
asked if her brother could receive the medals he had earned during the
Second World War but had never received. We said of course. On a Sunday
morning in Fargo, ND, I went to the veterans hospital with the medals
for Edmund Young Eagle. The doctors and the nurses and others from the
hospital crowded into his hospital room that Sunday morning. Edmund was
sick with lung cancer. I didn't know it at the time, but he didn't have
many days left. He died about a week later of lung cancer. But on that
morning he was fully aware of what was happening, and I was there
granting the wish of his sister to get the medals from the Department
of Defense that Edmund Young Eagle had earned in the Second World War.
We cranked his hospital bed up to a seated position and then I pinned a
row of medals on Edmund Young Eagle's pajama top there at the veterans
hospital and told him: Thank you from a grateful nation for serving
this country in the Second World War. This very sick man looked up at
me and said: This is one of the proudest days of my life. He died about
a week later. But he served his country and was enormously proud of it.

There are so many circumstances around this country where one by one
or in groups we honor our soldiers because they put on America's
uniform. This morning, soldiers halfway around the world not only put
on a uniform, but put on body armor and went out in harm's way, some to
be shot at. They didn't ask why; they just did what their country asked
them to do.
Now the question is: When it is all over, when they come home and
their service is done, what will their country say then? What will
their country say to them, other than thank you?
What we said in the Second World War with a GI bill was when those
soldiers came home, we offered them an opportunity to go to college, to
help them to be able to purchase a home. So a substantial number of
returning soldiers went to college and got a college degree. They went
back home and married their sweetheart. They built a home. They built a
community. They built their churches. They expanded the middle class.
They created an economic boom in this country. Later, it was estimated
that for every dollar we spent on the GI bill, $7 was returned because
it was an unbelievably good investment for our country.
Senator Webb, Senator Warner, Senator Hagel, Senator Murray, and so
many others--myself included--as cosponsors of this bill have said it
is time again to write a GI bill that is appropriate for wartime and
for returning veterans. When soldiers return and become veterans, the
question is: What will the GI bill offer for them? How will we invest
in their lives, and thereby invest in this country?
The previous GI bill was the Montgomery bill written during
peacetime. Frankly, it does not do what we have historically been able
to do and willing to do for those who serve our country, in addition to
saying thank you. The Montgomery bill existed--and we are pleased it
did--but this new GI bill is something very different. It tries to say
to soldiers, as we did some 60 years ago, not only thank you, but we
want to invest in your lives and invest thereby in this country. It is
a new GI bill. It allows an opportunity to go to college and to be able
to pay the in-State cost of college with a stipend for living during
that period of time that you get your college degree. It invests in the
lives of those who have invested their lives in this country. This is a
very important piece of legislation.
I am told there are some who now come to the floor of the Senate,
nearing three-quarters of a trillion dollars having been spent on
emergency supplemental appropriations bills requested by President Bush
to prosecute the war in Iraq and in Afghanistan, and say: Well, we can
afford that and we have to do that on an emergency basis, but we don't
have the money to try to help veterans when they come home. A veterans
program is the cost of war.
It is the cost of war. How does anyone say that somehow the three-
quarters of a trillion dollars for so many hundreds and thousands of
different accounts and contractors and replenishment of various
accounts is more important than the single account of the GI bill,
which says we want to invest in our soldiers? How does anybody say
those myriad other accounts are more important than investing in our
soldiers when they become veterans? I don't understand that. It makes
no sense.
It is a significant claim and priority for this country to understand
that part of the cost of war is to provide health care that is promised
to veterans and a GI bill this country can be proud of, which invests
in those veterans and our country. That is what this bill is about.
This new GI bill is every bit as important--perhaps more important--
than any other provision that exists in this large emergency
supplemental requested by this President.
The Congress undoubtedly, at some point, in some way, will enact this
legislation providing for some supplemental appropriations. When it
does, in

[[Page S4469]]

my judgment, it must do more than just say thank you to veterans, as we
do, but it must invest in veterans, which this new GI bill will do.
This makes a lot of sense for our country.
I commend especially those I have mentioned previously, including
Senators Webb, Warner, Hagel, Murray, and so many others. I am proud to
be one among them to say that this too is a priority for this country.
I hope when the sun sets at the end of this week, if we have passed
this legislation called the emergency supplemental appropriations bill,
it will include something that ought to give all of us a reason to be
proud and that it will include a new GI bill to say to veterans in this
country: You matter. It matters to us what you did for our country. I
hope we manifest that by passing a new GI bill in the name of their
service.
I yield the floor and suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. DORGAN. Madam President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.

Energy

Mr. DORGAN. Madam President, I know we are on the emergency
supplemental bill. However, I want to talk a bit about the energy
issue, so I will begin on that. I want to make a couple of points.
First, we sent a bill that the President signed, I believe, this
morning, which I offered here along with my colleague Senator Reid in
the Senate last week. We passed it on Thursday. It said stop putting
oil underground when oil prices are bouncing around at $128 a barrel or
so. We told the Department of Energy stop putting 70,000 barrels a day
underground. We have a Strategic Petroleum Reserve--which makes sense
to me because if you run into trouble, you will have oil you have put
away. But we have put that oil away, and it is now 97 percent full. Yet
the DOE and the Bush administration are topping it off by putting
70,000 barrels a day every day underground.
Our legislation says stop that. When oil is going through the roof
and the price of gasoline is so high, stop putting it underground. It
makes no sense. You are putting upward pressure on prices, which is the
last thing we should do.
I am pleased the President signed the bill today. Some have said it
won't make any difference, that there are factors other than the 70,000
barrels going underground that are at play here, and I will talk about
them. But it certainly doesn't hurt to put additional oil, and
therefore gasoline, into the supply pipeline. That ought to bring
prices down. It is common sense.
I used to teach a little economics and the supply/demand curve hasn't
changed. If demand remains unchanged and supply is increased, prices
are going to be lower. So I never understood why they decided when the
Strategic Petroleum Reserve is 97 percent full, why they are taking
sweet light crude from the Gulf of Mexico and sticking it underground
for a rainy day. It is raining at the gas pumps these days. Stop that
and put it into the supply chain and put downward pressure on oil and
gas prices.
I am pleased that we finally did it last week. The House passed the
bill. We got it to the President and he signed it. That is one step in
the right direction. A big step, giant step? Probably not, but it is a
step in the right direction in dealing with the question of the price
of gasoline.
Now, there is something curious going on in this country. It is not
explainable, frankly. This chart says oil prices nearly doubled in 1
year--up, up, up, and up. They doubled in 1 year. What would cause
that? Well, here is speculators' activity in the oil futures market. It
looks like oil prices, doesn't it? It also goes up, up, and up. There
is more and more speculation in the oil futures market. These are not
people who want to buy oil--oh, no. They want to buy a contract. They
don't ever want to take delivery or get their hands dirty with oil;
they want to speculate and gamble in the oil futures market. They want
to buy what they will never get from people who never had it, and walk
away grinning and deposit their money in the bank--big profits, by the
way. It doesn't matter what the consequences are. The wreckage can lie
in the gas pump lines, on the family farms, and elsewhere, because they
push up prices with this speculation. As you can see on the chart, the
speculation looks exactly like the runup in the prices.
The senior vice president of ExxonMobil Oil, on April 1, last month,
said:
The price of oil should be about $50 or $55 per barrel.

But it is not. It is $128 a barrel, $129 a barrel today, and is
headed north. So an oil company senior vice president said it ought to
be $50 or $55 a barrel.
Clarence Cazalot, CEO, Marathon Oil, said:

$100 oil isn't justified by the physical demand in the
market.

He is president of an oil company.
In January, the Newark Star Ledger said:

Experts, including the former head of ExxonMobil, say
financial speculation in the energy markets has grown so much
over the last 30 years that it now adds 20 to 30 percent, or
more, to the price of a barrel of oil.

Fadel Gheit, 30 years with Oppenheimer Company, senior energy trader,
said this:

There is absolutely no shortage of oil. I am absolutely
convinced that oil prices shouldn't be a dime above $55 a
barrel. I call it the world's largest gambling hall. It's
open 24/7. Unfortunately, it is totally unregulated. This is
like a highway with no cops and no speed limits, and
everybody is going 120 miles an hour.

Andrew Hall--I don't know him. I have said I would not know him from
a cord of wood. All I know is that the Wall Street Journal reports this
trader hit the jackpot on oil as the commodity boom roars on. When they
say commodity boom, they are not talking about oil wells, or drilling
rigs, or oil tanks; they are talking about the commodities market.
Again, it is a market in which speculators abound--an orgy of
speculation, with people buying things they will never get from people
who never had it, nobody wanting the oil, but wanting to speculate in
this class called speculators. Mr. Hall earned a quarter of a billion
dollars--$250 million--in 5 years. That is a pretty big payout,
actually.
All of these folks who are neck deep in futures markets include hedge
funds, investment banks, unbelievable speculation in the futures
market, which is driving up the price of gasoline and the price of oil.
Now, it is interesting to me, and I think important for us to
understand, that as the price is going up, and it is going up again
today, that more pressure will push prices higher. In this country,
people will drive to the pumps tonight and try to figure out, how do I
pay for this tank of gas? I need it and I have to drive to work. Or as
the farmer tries to figure out, how do I fill that farm gas tank and
pay for that? Or a small family trucking company tries to figure out
how do I make ends meet, or will I have to close the doors, perhaps,
like one of the CEOs of the five airlines that have filed bankruptcy at
this point because of fuel prices?
As all of this is happening, let me make a couple of points. One, we
have more oil in our inventory and more fuel in our inventory right now
than we did in January of this year. We are somewhere over 30 million
to 40 million barrels of oil in inventory above where we were in
January. So go figure. Inventory is up. Shouldn't prices come down a
bit? You would think so. Not only is inventory up but demand is also
down because our economy slowed down some, and because the price of
gasoline and fuel is very high, people are driving a bit less. Some
estimate that demand has dipped around 4 or 5 percent. So our
inventories are up, demand is down, and what is happening to oil
prices? They are continuing to go up.
Refiners are actually refining less at the moment, by their own
design, because they believe there is an excess of inventory, so they
want to catch up a bit, or allow the inventory to catch up with demand.
So they are refining less than they previously refined. You would
think, then, if supply is up, with millions more barrels of oil in
inventory, the supply of gasoline having increased sufficiently so that
refiners are cutting back refining capability, that the price of
gasoline and oil would begin to come down. But it is not true. What is
happening today is it is reaching record highs. So what does that tell

[[Page S4470]]

us? It tells us there is this unbelievable amount of speculation in
which speculators have taken over the commodity markets and driven oil
prices to levels that are doing great damage to this economy, great
damage to this country, great damage to America's families, and great
damage to businesses in this country. They don't care much about that.
All they care about is going to the bank with a pile of money. All they
care about is making all this money.
I am telling you, at the top, take a look at the compensation of the
top hedge fund managers in this country. It is unbelievable. It almost
makes you ill. They are all making a lot of money, and they are doing
it by speculating in a market that is driving up prices beyond where
the fundamentals of oil and gas supply and demand would justify. There
is no justification for this at all.
American families have a right to ask the question of this Congress:
What on Earth are you going to do about it? Does anybody care? Or are
the consumers just pawns in this big game while the speculators run off
with all the money?
It seems to me, when markets don't work we have a responsibility to
do something about it. If you have a computer handy, you can find a
search engine and find excesses of speculation. In fact, over the last
decade and a half, we have seen two bubbles already, and now a third.
We saw the tech bubble, and it burst. We saw the housing bubble, and it
burst. Now we see a bubble on the commodities exchanges, and it will
burst at some point. The question is when and what damage will be done
between now and then.
These exchanges are supposed to be regulating certain kinds of
activities. I have a little experience in this--not a lot, but a
little. I chaired the hearings in the Senate on Enron. We did it in a
Commerce subcommittee. I had Ken Lay come in front of me in my
committee. He raised his hand and swore an oath to tell the truth, sat
down, and took the fifth amendment. We had Jeffrey Skilling come. He is
now in prison. He wouldn't stop talking, by the way. Through it all,
the suggestion was, there is nothing going on here.
There was this unbelievable runup of wholesale electricity prices on
the west coast during that period. We now know it was criminal
activity, a criminal enterprise. We now know they were fixing things.
They were shutting down plants. They were manipulating supply. They
were speculating.
I am not suggesting speculation is necessarily, or even in most
cases, criminal behavior. It is not. But the combination, going back to
Enron, of not being able to see the dark money, the money that moves in
the shadows behind the regulatory opportunities that some agencies
have, means consumers can be manipulated and injured dramatically.
There is a lesson, it seems to me, as we take a look at what is
happening in energy. I remember when President Bush came to town. He
appointed a new Chairman of the Securities and Exchange Commission. I
believe his name was Harvey Pitt. He said when he took office there is
going to be a new attitude around here. This was the Securities and
Exchange Commission, a regulatory body.
He said: There is going to be a new attitude around here, a business-
friendly attitude. And sure enough, it sure was business friendly, and
not just there but virtually every agency. We don't want to regulate.
Yes, we are a regulatory body, but we don't want to regulate. Yes,
regulators are supposed to be the referees, wear the striped shirts,
call the fouls; we don't want to do that. We don't even like Government
very much. We just come here and say it is business friendly, so do
what you want.
Over the past 7 years we have seen an unbelievable amount of avarice
and greed and speculation. Is it any wonder that we saw the bubble
burst with respect to housing? Who wasn't minding the store? We know
what happened then.
We had ads on television from these mortgage companies. Anybody who
watched one of them would have known this doesn't work.
The ads said: Hey, you have been bankrupt, you can't pay your bills?
Are you missing your house payments? Come over here. We will give you a
new mortgage. You don't have to worry about all that. You have bad
credit? Come to us. We will give you credit. In fact, we will give you
a mortgage where you don't even have to pay all the interest. In fact,
we will give you a mortgage loan where you don't have to pay any
interest the first year; we will pay the interest for you, and the
principal. We will say to you: You don't even have to document your
income to us. You have to pay a slightly higher interest rate, but you
get a mortgage with us, and you don't even have to document your
income. It is called a no doc loan.
So, no documents, no interest payment for the first year and no
principal payment for a long while. And by the way, when we set your
interest rate, you pay an incredibly low interest rate.
I saw an advertisement that said pay one-fourth of 1 percent interest
rate--not telling them, of course, it is going to reset at 10 percent
in 3 years. They don't have a ghost of a chance of making those
payments, and they are going to lose their house. We are sorry. They
never tell them that.
Where were the regulators? Were they watching? No, they weren't
watching. They didn't care.
So you have this buildup of speculation, mortgages, housing, and now
the entire economy pays a price for that.
On top of that, we have this unbelievable buildup of speculation in
the commodities market and oil, which is an essential commodity for
every part of this economy, and the cost is going through the roof.
Today it is setting a record.
Think of this economy and the national result. Does it matter that
oil is different? Sure does. We suck 85 million barrels of oil out of
this world every single day. We take 85 million barrels and suck it out
of this planet. We need to use one-fourth of it in this country. We use
25 percent of all oil pulled out of this planet every day, and we only
produce 10 percent. We use 25 percent of the world's oil, and we
produce only 10 percent. That means we have to get a lot of it from
elsewhere, and we do. Mr. President, 60 percent plus comes from
offshore, much of it from troubled parts of the world.
We have a major issue with respect to oil. We have to deal with it.
In the short term, though, we have to deal with this. John Maynard
Keynes said in the long run, we are all dead. In the short run, we
drive to the gas pumps and say: How can we possibly afford this? How
can we pay this price? Then we understand this price isn't even
justified. There is nothing in supply and demand that justifies this
price. The supply is up, demand is down, and the price of oil is going
through the roof. That is not about market system. Those are arteries
clogged in the free market system, and this Congress has a
responsibility to do something about it.
What do we do? There are a number of approaches a group of us are
working on. It includes trying to find ways to make certain we know
what is happening on all of these exchanges. The folks who run the
exchanges in this country say: The problem is, if you increase the
margin requirement, all this stuff is going to go to the
Intercontinental Exchange, called ICE, over in London. You can't do
that; it goes offshore and you never see it.
That is another part of the dark money strategy in this country where
they all make money and injure this economy. We are looking for ways,
and I believe we will find a way in a couple of days, to get our arms
around this issue called regulatory need with respect to excess
speculation on all markets. This is damaging this country's economy,
and we cannot and should not stand for it. Speculators have had their
day. They have made their money. They have injured this country. Now it
is time for us to wring that speculation out of those commodity
markets.
We need commodity exchanges. We need futures markets. We need them
for liquidity. We need them for hedging. But when we have speculators
grab these markets by the neck and pervert them, this Congress has a
responsibility to act.
I conclude by saying the price of oil is setting new records today
despite the fact that we in this country have an increased supply of
oil since January, month after month after month, and demand is going
down by the consumer because of price. So supply is up,

[[Page S4471]]

demand is down, and this perversion in the marketplace is producing the
highest price for oil we have seen. That is an unbelievable perversion
of what the free market ought to be.
We hear people say free market. There is no free market here. You
have an OPEC cartel sitting behind closed doors. It would be illegal in
this country. That does not contribute to a free market. That is a
fixed market. And we have oil companies bigger and stronger. They
almost all have two names now--ExxonMobile, ConocoPhillips--because
they all merged and everybody thought that was fine, at least in this
administration. So they are bigger and stronger and have more muscle in
the marketplace. Then we have this perversion in the futures market.
That combination is a combination that I say damages this economy. We
mean to address it. In the coming days, I intend to talk about
legislation that will tie into this speculation, wring it out of the
markets and say: You can't continue to damage the economy of this
country; you can't continue to injure the consumers in this country
because we are not going to stand for it.
Mr. AKAKA. Madam President, I am delighted to be an original
cosponsor of the amendment offered by the distinguished senior Senator
from Virginia which would clarify that the provisions in current law
regarding the transferability of educational assistance benefits to
family members would apply to the new GI bill for the 21st century.
This amendment would further give the Department of Defense the
ability to conduct a 2-year test of somewhat expanded transferability
options to individuals who have completed 4 years of active duty
service, who agree to complete an additional 6r years of service, and
who meet such additional criteria as the Secretary of Defense
establishes.
I have consistently stated that I believe that transferability can be
an important retention tool for the military and that the provisions of
current law would apply to the provisions in S. 22 as revised. However,
I have also noted that there is no data that demonstrate the retention
value of the transferability option.
The Army implemented a pilot program in July 2006 which allows
soldiers who reenlist in critical skills to transfer their Montgomery
GI bill benefits to their spouses. Mr. President, I will ask unanimous
consent that the Department of Defense annual report on entitlement
transfers, dated March 20, 2008, be printed in the Record at the
conclusion of my remarks so that Members can see that less than two
percent of those who were offered the opportunity to transfer benefits
took advantage of that option.
It is on this basis that I believe that this authority needs to be
continued and expanded slightly in the context of this new GI bill for
the 21st century. But to rely on transferability solely or in lieu of
the legislation that has been carefully developed by Senator Webb and
others would be a mistake.
I urge the Senate to approve the amendment offered by Senator Warner.
I ask unanimous consent that the text of the letter be printed in the
Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

Office of the

Under Secretary of Defense,

Washington, DC, March 20, 2008.
Hon. Daniel K. Akaka,
Chairman, Committee on Veterans Affairs, U.S. Senate,
Washington, DC.
Dear Mr. Chairman: This letter serves as the annual report
on entitlement transfers of basic educational assistance to
eligible dependents under the Montgomery GI Bill (MGIB) as
required by Section 3020(1) of title 38, United States Code.
The Army implemented a pilot program in July 2006, allowing
Soldiers, who reenlist in critical skills, the ability to
transfer MGIB benefits to their spouse. The Army defined
critical skills as any Soldier who qualified for a Selective
Reenlistment Bonus (SRB) incentive and was entitled to a Zone
B or Zone C bonus under current messages at the time of their
reenlistment. This SRB is reduced by an amount equal to the
actuarial per capita cost. These payments were then deposited
into the DoD Education Benefit Fund for transfer to the
Department of Veterans Affairs.
In Fiscal Year 2007, 296 Soldiers chose this option, or
less than 2 percent of the over 17K Soldiers eligible upon
reenlistment. Of the 296 Soldiers, the majority were mid-
career Soldiers (SGT/SSG) assigned to U.S. Forces Command and
U.S. Special Operations Command. Initial feedback from the
field indicates that Soldiers want to be able to transfer
benefits to all their dependents, including children. The
Army extended the program to allow eligibility for both
spouses and children in November 2007.
None of the other Services exercised their MGIB
transferability authority and, instead, relied on traditional
reenlistment/retention incentives. In spite of the fact that
this program was not offered by those Services, each
experienced a successful retention year in Fiscal Year 2007.
However, all the Services are closely watching the results of
the Army pilot and continue to retain the authority to
include MGIB transferability in their retention programs
should circumstances warrant.
The Department plans to include the expansion of MGIB
transferability in its Fiscal Year 2009 legislative proposal.
This expansion will support the President's State of the
Union address, where he called for Congress to join him in
``allowing our troops to transfer their unused education
benefits to their spouses or children.''
I trust that this report will prove useful in your
consideration of Defense personnel programs. Similar letters
have been sent to the Ranking Member of the Senate Committee
on Veterans Affairs, the Chairman and Ranking Member of the
House Committee on Armed Services, and the Chairmen and
Ranking Members of the House Committee on Veterans Affairs.
Sincerely,
Michael L. Dominguez,
Principal Deputy.

Madam President, I yield the floor.
The PRESIDING OFFICER. The Senator from Washington.

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