[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5376 Reported in House (RH)]
<DOC>
Union Calendar No. 94
117th CONGRESS
1st Session
H. R. 5376
[Report No. 117-130]
To provide for reconciliation pursuant to title II of S. Con. Res. 14.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 27, 2021
Mr. Yarmuth, from the Committee on the Budget, reported the following
bill; which was committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______________________________________________________________________
A BILL
To provide for reconciliation pursuant to title II of S. Con. Res. 14.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
TITLE I--AGRICULTURE
Subtitle A--General Provisions
SECTION 10001. DEFINITIONS.
In this title:
(1) The term ``insular area'' has the meaning given such
term in section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103).
(2) The term ``Secretary'' means the Secretary of
Agriculture.
Subtitle B--Forestry
SEC. 11001. NATIONAL FOREST SYSTEM RESTORATION AND FUELS REDUCTION
PROJECTS.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2031--
(1) $10,000,000,000 for hazardous fuels reduction projects
within the wildland-urban interface;
(2) $4,000,000,000 for, on a determination by the Secretary
that hazardous fuels within the wildland-urban interface have
been effectively treated to prevent the spread of wildfire to
at-risk communities, hazardous fuels reduction projects outside
the wildland-urban interface that are--
(A) noncommercial in nature, except on a
determination by the Secretary, in accordance with the
best available science, that the harvest of
merchantable materials is ecologically necessary for
restoration and to enhance ecological integrity,
subject to the requirement that the sale of
merchantable materials shall be limited to small
diameter trees or biomass that are a byproduct of
projects under this paragraph;
(B) collaboratively developed; and
(C) carried out in a manner that--
(i) enhances the ecological integrity and
achieves the restoration of a forest ecosystem;
(ii) maximizes the retention of old-growth
and large trees, as appropriate for the forest
type; and
(iii) focuses on prescribed fire as the
primary means to achieve modified wildland fire
behavior, as measured by the projected
reduction of uncharacteristically severe
wildfire effects for the forest type;
(3) $1,000,000,000 for vegetation management projects
carried out solely on National Forest System land that the
Secretary shall select following the receipt of proposals
submitted in accordance with subsections (a), (b), and (c) of
section 4003 of the Omnibus Public Land Management Act of 2009
(16 U.S.C. 7303);
(4) $500,000,000 for vegetation management projects carried
out in accordance with--
(A) a water source management plan; or
(B) a watershed protection and restoration action
plan;
(5) $500,000,000 for vegetation management projects that--
(A) maintain, or contribute toward the restoration
of, old growth characteristics, including structure,
composition, function, and connectivity, according to
the reference old growth conditions characteristic of
the forest type, taking into account--
(i) the contribution of the project to
landscape fire adaptation and the ecological
integrity of watershed and ecosystem health;
and
(ii) the goal of retaining the large trees
contributing to old growth structure;
(B) focus primarily on small diameter trees and
prescribed fire to modify fire behavior, as measured by
the projected reduction of uncharacteristically severe
wildfire effects for the forest type; and
(C) maximize the retention of large trees, as
appropriate for the forest type;
(6) $450,000,000 for the Legacy Roads and Trails program of
the Forest Service;
(7) $350,000,000 for National Forest System land management
planning and monitoring, with a focus on--
(A) the assessment of watershed, ecological, and
carbon conditions on National Forest System land; and
(B) the revision and amendment of older land
management plans that present opportunities to protect,
maintain, restore, and monitor ecological integrity,
ecological conditions for at-risk species, and carbon
storage;
(8) $100,000,000 for maintenance of trails on National
Forest System land, with a focus on trails that provide to
underserved communities access to National Forest System land;
(9) $100,000,000 for capital maintenance and improvements
on National Forest System land, with a focus on maintenance
level 3, 4, and 5 roads and improvements that restore
ecological integrity and conditions for at-risk species;
(10) $100,000,000 to provide for more efficient and more
effective environmental reviews by the Chief of the Forest
Service in satisfying the obligations of the Chief of the
Forest Service under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) through--
(A) the hiring and training of additional
personnel;
(B) the development of programmatic assessments or
templates;
(C) the procurement of technical or scientific
services;
(D) the development of data or technology systems;
(E) stakeholder and community engagement; and
(F) the purchase of new equipment;
(11) $50,000,000 to develop and carry out activities and
tactics for the protection of older and mature forests on
National Forest System land, including completing an inventory
of older and mature forests within the National Forest System;
(12) $50,000,000 to develop and carry out activities and
tactics for the maintenance and restoration of habitat
conditions necessary for the protection and recovery of at-risk
species on National Forest System land in implementing Forest
Service hazardous fuels reduction and other vegetation
management programs and projects based on a science-based
analysis carried out by the Secretary;
(13) $50,000,000 to carry out post-fire recovery plans
that--
(A) emphasize the use of locally adapted native
plant materials to restore the ecological integrity of
disturbed areas; and
(B) do not include salvage logging;
(14) $50,000,000 to develop and carry out nonlethal
activities and tactics to reduce human-wildlife conflicts on
National Forest System land; and
(15) $2,250,000,000 to be used for staffing, salaries, and
other workforce needs to support the development of a Civilian
Climate Corps for the purposes of managing National Forest
System land, subject to the conditions that--
(A) the amounts made available under this paragraph
shall be in addition to any amounts required for
salaries and expenses needed to carry out projects
under this subsection; and
(B) members of the Civilian Climate Corps shall be
compensated at not less than 200 percent of the annual
Federal poverty line.
(b) Priority for Funding.--The Secretary shall prioritize for
implementation under this section projects described in paragraphs (1)
through (5) of subsection (a)--
(1) for which an environmental assessment or an
environmental impact statement required under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) has
been completed;
(2) that are collaboratively developed; or
(3) that include opportunities to restore sustainable
recreation infrastructure or access or accomplish other
recreation outcomes, if the opportunities are compatible with
the primary restoration purposes of the project.
(c) Limitations.--None of the funds made available by this section
may be used for any activity--
(1) conducted in a wilderness area or wilderness study
area;
(2) that includes the construction of a permanent road or
permanent trail;
(3) that includes the construction of a temporary road,
except in the case of a temporary road that is decommissioned
by the Secretary not later than 3 years after the earlier of--
(A) the date on which the temporary road is no
longer needed; and
(B) the date on which the project for which the
temporary road was constructed is completed;
(4) inconsistent with the applicable land management plan;
(5) inconsistent with the prohibitions of the rule of the
Forest Service entitled ``Special Areas; Roadless Area
Conservation'' (66 Fed. Reg. 3244 (January 12, 2001)), as
modified by subparts C and D of part 294 of title 36, Code of
Federal Regulations; or
(6) carried out on any land that is not National Forest
System land, including other forested land on Federal, State,
Tribal, or private land.
(d) Definitions.--In this section:
(1) At-risk community.--The term ``at-risk community'' has
the meaning given the term in section 101 of the Healthy
Forests Restoration Act of 2003 (16 U.S.C. 6511).
(2) Collaboratively developed.--The term ``collaboratively
developed'' means, with respect to a project located
exclusively on National Forest System land, that the project is
developed and implemented through a collaborative process
that--
(A) includes multiple interested persons
representing diverse interests; and
(B)(i) is transparent and nonexclusive; or
(ii) meets the requirements for a resource advisory
committee under subsections (c) through (f) of section
205 of the Secure Rural Schools and Community Self-
Determination Act of 2000 (16 U.S.C. 7125).
(3) Decommission.--The term ``decommission'' means, with
respect to a road--
(A) reestablishing native vegetation on the road;
(B) restoring any natural drainage, watershed
function, or other ecological processes that were
disrupted or adversely impacted by the road by removing
or hydrologically disconnecting the road prism and
reestablishing stable slope contours; and
(C) effectively blocking the road to vehicular
traffic, where feasible.
(4) Ecological integrity.--The term ``ecological
integrity'' has the meaning given the term in section 219.19 of
title 36, Code of Federal Regulations (as in effect on the date
of enactment of this Act).
(5) Hazardous fuels reduction project.--The term
``hazardous fuels reduction project'' means an activity,
including the use of prescribed fire, to protect structures and
communities from wildfire that is carried out on National
Forest System land.
(6) Restoration.--The term ``restoration'' has the meaning
given the term in section 219.19 of title 36, Code of Federal
Regulations (as in effect on the date of enactment of this
Act).
(7) Vegetation management project.--The term ``vegetation
management project'' means an activity carried out on National
Forest System land to enhance the ecological integrity and
achieve the restoration of a forest ecosystem through--
(A) the removal of vegetation;
(B) the use of prescribed fire;
(C) the restoration of aquatic habitat; or
(D) the decommissioning of an unauthorized,
temporary, or system road.
(8) Water source management plan.--The term ``water source
management plan'' means a plan developed under section
303(d)(1) of the Healthy Forests Restoration Act of 2003 (16
U.S.C. 6542(d)(1)).
(9) Watershed protection and restoration action plan.--The
term ``watershed protection and restoration action plan'' means
a plan developed under section 304(a)(3) of the Healthy Forests
Restoration Act of 2003 (16 U.S.C. 6543(a)(3)).
(10) Wildland-urban interface.--The term ``wildland-urban
interface''--
(A) in the case of the lower 48 States, means the
areas mapped as the wildland-urban interface in the
document entitled ``The Wildland-Urban Interface of the
Conterminous United States'', and published by the
Department of Agriculture in 2015; and
(B) in the case of the States of Alaska and Hawaii,
has the meaning given the term in section 101 of the
Healthy Forests Restoration Act of 2003 (16 U.S.C.
6511).
SEC. 11002. NON-FEDERAL LAND FOREST RESTORATION AND FUELS REDUCTION
PROJECTS AND RESEARCH.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2031--
(1) $9,000,000,000 to award grants to a Tribal, State, or
local government, a regional organization, a special district,
or a nonprofit organization to support, on non-Federal land,
forest restoration and resilience projects, including projects
to reduce the risk of wildfires and establish defensible space
around structures within at-risk communities;
(2) $1,000,000,000 to award grants to a Tribal, State, or
local government, a regional organization, a special district,
or a nonprofit organization to implement community wildfire
protection plans (as defined in section 101 of the Healthy
Forests Restoration Act of 2003 (16 U.S.C. 6511)), purchase
firefighting equipment, provide firefighter training, and
increase the capacity for planning, coordinating, and
monitoring projects on non-Federal land to protect at-risk
communities (as defined in section 101 of the Healthy Forests
Restoration Act of 2003 (16 U.S.C. 6511));
(3) $250,000,000 to award grants to a Tribal, State, or
local government, a regional organization, a special district,
or a nonprofit organization for projects on non-Federal land to
aid in the recovery and rehabilitation of burned areas,
including reforestation;
(4) $250,000,000 to award grants to a Tribal, State, or
local government, a regional organization, a special district,
or a nonprofit organization for projects on non-Federal land to
expand equitable outdoor access and promote tourism on non-
Federal forested land for members of underserved groups;
(5) $250,000,000 for the State Fire Assistance and
Volunteer Fire Assistance programs established under the
Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2101 et
seq.), to be distributed at the discretion of the Secretary;
(6) $250,000,000 for the implementation of State-wide
forest resource strategies under section 2A of the Cooperative
Forestry Assistance Act of 1978 (16 U.S.C. 2101a);
(7) $250,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2109a) for providing through that program a cost
share to carry out climate mitigation or forest resilience
practices in the case of underserved forest landowners, subject
to the condition that subsection (h) of that section shall not
apply;
(8) $250,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2109a) for providing through that program grants to
support the participation of underserved forest landowners in
emerging private markets for climate mitigation or forest
resilience, subject to the condition that subsection (h) of
that section shall not apply;
(9) $250,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2109a) for providing through that program grants to
support the participation of forest landowners who own less
than 2,500 acres of forest land in emerging private markets for
climate mitigation or forest resilience, subject to the
condition that subsection (h) of that section shall not apply;
(10) $500,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2109a) to provide grants to states and other
eligible entities to provide payments to owners of private
forest land for implementation of forestry practices on private
forest land, that are determined by the Secretary, based on the
best available science, to provide measurable increases in
carbon sequestration and storage beyond customary practices on
comparable land, subject to the conditions that--
(A) those payments shall not preclude landowners
from participation in other public and private sector
financial incentive programs; and
(B) subsection (h) of that section shall not apply;
(11) $50,000,000 to carry out the healthy forests reserve
program established under section 501 of the Healthy Forests
Restoration Act of 2003 (16 U.S.C. 6571);
(12) $50,000,000 for the forest inventory and analysis
program established under section 3(e) of the Forest and
Rangeland Renewable Resources Research Act of 1978 (16 U.S.C.
1642(e)) for collaborative partnerships with the National
Association of University Forest Resources Programs;
(13) $50,000,000 for the forest inventory and analysis
program established under section 3(e) of the Forest and
Rangeland Renewable Resources Research Act of 1978 (16 U.S.C.
1642(e)) for activities and tactics to accelerate and expand
existing research efforts to improve forest carbon monitoring
technologies to better predict changes in forest carbon due to
climate change;
(14) $100,000,000 for the forest inventory and analysis
program established under section 3(e) of the Forest and
Rangeland Renewable Resources Research Act of 1978 (16 U.S.C.
1642(e)) to carry out recommendations from a panel of relevant
experts convened by the Secretary that has reviewed and, based
on the review, issued recommendations regarding the current
priorities and future needs of the forest inventory and
analysis program with respect to climate change, forest health,
sustainable wood products, and increasing carbon storage in
forests;
(15) $50,000,000 for the forest inventory and analysis
program established under section 3(e) of the Forest and
Rangeland Renewable Resources Research Act of 1978 (16 U.S.C.
1642(e)) to provide enhancements to the technology managed and
used by the forest inventory and analysis program, including
cloud computing and remote sensing for purposes such as small
area estimation;
(16) $1,000,000,000 to provide grants under the wood
innovation grant program under section 8643 of the Agriculture
Improvement Act of 2018 (7 U.S.C. 7655d), including for the
construction of new facilities that advance the purposes of the
program, subject to the conditions that--
(A) the amount of such a grant shall be not more
than $5,000,000;
(B) notwithstanding subsection (d) of that section,
a recipient of such a grant shall provide funds equal
to not less than 50 percent of the amount received
under the grant, to be derived from non-Federal
sources; and
(C) a priority shall be placed on projects that
create a financial model for addressing forest
restoration needs on public or private forest land;
(17) $50,000,000 for the research mission area of the
Forest Service to accelerate and expand existing research
efforts relating to strategies to increase carbon stocks on
National Forest System land;
(18) $50,000,000 for the research mission area of the
Forest Service to accelerate and expand existing research
efforts relating to the impacts of climate change and weather
variability on national forest ecosystems;
(19) $50,000,000 for the research mission area of the
Forest Service to accelerate and expand existing research
efforts relating to strategies to ensure that national forest
ecosystems, including forests, plants, aquatic ecosystems, and
wildlife, are able to adapt to climate change and weather
variability;
(20) $50,000,000 for the research mission area of the
Forest Service to assess the quantity of carbon sequestration
and storage accomplished by different forest practices when
applied in diverse ecological and geographic settings;
(21) $50,000,000 for the research mission area of the
Forest Service to carry out greenhouse gas life cycle analyses
of domestic wood products;
(22) $50,000,000 for the Forest Health Monitoring Program
of the Forest Service for activities and tactics to reduce the
spread of invasive species on non-Federal forested land; and
(23) $2,250,000,000 to be used for staffing, salaries, and
other workforce needs and expenses to support the development
of a Civilian Climate Corps for carrying out projects on non-
Federal land through the Forest Service State and private
forestry mission area and other Department of Agriculture
programs, including rural and urban conservation and tree
planting projects, subject to the conditions that--
(A) the amounts made available under this paragraph
shall be in addition to any amounts required for
salaries and expenses needed to carry out projects
under this subsection; and
(B) members of the Civilian Climate Corps shall be
compensated at not less than 200 percent of the annual
Federal poverty line.
(b) Submission of Non-Federal Restoration Areas by States.--
(1) In general.--The Governor of a State may submit to the
Secretary, in writing, a request to include with land on which
a project is carried out using amounts made available by this
section certain non-Federal land in the State.
(2) Inclusions.--A written request submitted under
paragraph (1) may include 1 or more maps or recommendations.
(3) Authorization.--On approval of a written request
submitted under paragraph (1), a project may be carried out
using amounts made available by this section on the non-Federal
land in the State that is the subject of the request.
(c) Cost-sharing Requirement.--
(1) In general.--The grants made available under paragraphs
(1) through (5) of subsection (a) shall be subject to a non-
Federal match requirement of not less than 20 percent of the
overall project cost.
(2) Waiver.--The cost-sharing requirement under paragraph
(1) may be waived, at the discretion of the Secretary, for high
priority projects that--
(A) have the purpose of protecting human life or
critical infrastructure; and
(B) are located in counties where the average
median household income of the population is less than
150 percent of the poverty line.
SEC. 11003. STATE AND PRIVATE FORESTRY CONSERVATION PROGRAMS.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2031--
(1) $1,250,000,000 to provide competitive grants to
eligible entities through the Forest Legacy Program established
under section 7 of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2103c) to acquire land and interests in land
that--
(A) offer significant natural carbon sequestration
benefits; or
(B) contribute to the resilience of community
infrastructure, local economies, or natural systems;
(2) $3,000,000,000 to provide multi-year, programmatic,
competitive grants to a State agency, a local governmental
entity, an Indian Tribe, or a nonprofit organization through
the Urban and Community Forestry Assistance program established
under section 9(c) of the Cooperative Forestry Assistance Act
of 1978 (16 U.S.C. 2105(c)) for tree planting and related
activities to increase community tree canopy and associated
societal and climate co-benefits, with a priority for projects
that increase tree equity; and
(3) $100,000,000 for the acquisition of urban and community
forests through the Community Forest and Open Space Program of
the Forest Service.
(b) Priority.--In providing grants under this section, the
Secretary shall--
(1) with respect to grants under subsection (a)(2), give
priority to projects that are located in--
(A) a census block group in which 30 percent or
more of the population lives below the poverty line;
and
(B) a neighborhood with lower tree canopy and
higher maximum daytime summer temperatures compared to
surrounding neighborhoods, as determined by the
Secretary, based on publicly available information;
(2) with respect to grants under paragraphs (1) and (2) of
subsection (a), give priority to grant applications from
underserved populations; and
(3) set aside not less than 10 percent of the amounts made
available under each of paragraphs (1) and (2) of subsection
(a) to provide grants under each of those paragraphs to
individuals who are members of underserved populations.
SEC. 11004. LIMITATION.
The funds made available under this subtitle are subject to the
condition that the Secretary shall not--
(1) enter into any agreement--
(A) that is for a term extending beyond September
30, 2031; and
(B) under which any payment could be outlaid or
funds disbursed after September 30, 2031; and
(2) use any other funds available to the Secretary to
satisfy obligations initially made under this subtitle.
Subtitle C--Rural Development and Energy
SEC. 12001. ADDITIONAL SUPPORT FOR THE USDA BUSINESS AND INDUSTRY LOAN
PROGRAM.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, and notwithstanding sections 381E through
381H and 381N of the Consolidated Farm and Rural Development Act (7
U.S.C. 2009d through 2009g and 2009m), $40,000,000, to remain available
until September 30, 2031, for the cost of direct loans and loan
guarantees for the rural business development programs authorized under
section 310B of the Consolidated Farm and Rural Development Act and
described in subsections (a) and (g) of section 310B of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1932(a) and (g)).
SEC. 12002. ADDITIONAL SUPPORT FOR USDA RURAL WATER PROGRAMS.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, and notwithstanding sections 381E through
381H and 381N of the Consolidated Farm and Rural Development Act (7
U.S.C. 2009d through 2009g and 2009m), $430,000,000, to remain
available until September 30, 2031, for the cost of grants for rural
water and waste water programs authorized by sections 306, 306C, and
306D and described in sections 306C(a)(2) and 306D of the Consolidated
Farm and Rural Development Act in--
(1) persistent poverty counties or, notwithstanding any
population limits specified in the Consolidated Farm and Rural
Development Act, a county seat of a persistent poverty county
with a population that does not exceed the authorized
population limit by more than 10 percent; and
(2) insular areas.
SEC. 12003. SUBSIDY FOR CERTAIN USDA RURAL DEVELOPMENT LOAN PAYMENTS.
(a) Appropriation.--In addition to the amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $390,000,000, to
remain available until September 30, 2031, to carry out this section.
(b) Use of Funds.--
(1) Payment.--The Secretary shall make a payment to the
lender on a covered loan equal to half of the total of the
installment amounts owed by the borrower on the loan for 1
year, if the borrower has the opportunity to opt out of the
payment.
(2) Additional payments.--To the extent that amounts made
available by subsection (a) remain after making the payments
under paragraph (1), the Secretary shall make additional loan
payments on a covered loan.
(c) Terms and Conditions.--
(1) Waiver.--The Secretary shall waive statutory limits on
maximum loan maturities for any covered loan durations,
including those where the lender provides a deferral and
extends the maturity of a covered loan during the 1-year period
beginning with the date of enactment of this Act.
(2) Extension.--The Secretary shall, when necessary to
provide more time because of the potential of higher volumes,
travel restrictions, and the inability to access some
properties during the COVID-19 pandemic, extend lender site
visit requirements to--
(A) not more than 60 days (which may be extended at
the discretion of the Secretary) after the occurrence
of an adverse event, other than a payment default, that
causes a loan to be classified as in liquidation; and
(B) not more than 90 days after a payment default.
(d) Definition.--In this section, the term ``covered loan'' means--
(1) a business and industry loan made or guaranteed before
January 1, 2021, under subsection (a) or (g) of section 310B of
the Consolidated Farm and Rural Development Act (7 U.S.C.
1932(a) or (g));
(2) a loan that is made by an intermediary lender before
January 1, 2021, to an ultimate recipient using a loan received
under section 1323 of the Food Security Act of 1985 (7 U.S.C.
1932 note; Public Law 99-198) or section 310H of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1936b);
and
(3) a loan that is made by a microenterprise development
organization before January 1, 2021, to a microentrepreneur
under section 379E of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2008s).
SEC. 12004. RURAL ENERGY SAVINGS PROGRAM.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $200,000,000, to
remain available until September 30, 2031, to carry out this section.
(b) Use of Funds.--
(1) In general.--Except as provided in paragraph (2) of
this subsection, at the election of an eligible entity to which
a loan is made under section 6407(c) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8107a(c)), the Secretary
shall make a grant to the eligible entity in an amount equal to
not more than 5 percent of the loan amount for the purposes of
costs incurred in--
(A) applying for a loan received under section
6407(c) of such Act;
(B) making a loan under section 6407(d) of such
Act;
(C) making repairs to the property of a qualified
consumer that facilitate the energy efficiency measures
for the property financed through a loan under section
6407(d) of such Act;
(D) entering into a contract under section 6407(e)
of such Act; or
(E) carrying out the duties of an eligible entity
under section 6407 of such Act.
(2) Persistent poverty counties.--In the case that the
grant is for the purpose of making a loan under section 6407(d)
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8107a(d)) to a qualified consumer in a persistent poverty
county (as determined by the Secretary), the percentage
limitation in paragraph (1) of this subsection shall be 10
percent.
(c) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' has the
meaning given the term in section 6407(b) of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 8107a(b)).
(2) Qualified consumer.--The term ``qualified consumer''
has the meaning given the term in section 6407(b) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 8107a(b)).
SEC. 12005. RURAL ENERGY FOR AMERICA PROGRAM.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary, out of any money in the
Treasury not otherwise appropriated, for eligible projects under the
Rural Energy for America Program established under section 9007 of the
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107)--
(1) $811,750,000 for fiscal year 2022, to remain available
until September 30, 2031, and for which there may be no outlays
after September 30, 2031; and
(2) $272,000,000 for each of fiscal years 2023 through
2027, to remain available until September 30, 2031, and for
which there may be no outlays after September 30, 2031.
(b) Underutilized Renewable Energy Technologies.--In addition to
amounts otherwise available, there is appropriated to the Secretary,
out of any money in the Treasury not otherwise appropriated, to provide
grants and other financial assistance under the program described in
subsection (a) relating to underutilized renewable energy technologies,
and to provide technical assistance for applying to such program, as
determined by the Secretary, and to the extent the following amounts
remain available at the end of each fiscal year, the Secretary shall
use such amounts in accordance with subsection (a)--
(1) $143,250,000 for fiscal year 2022, to remain available
until September 30, 2031, and for which there may be no outlays
after September 30, 2031; and
(2) $48,000,000 for each of fiscal years 2023 through 2027,
to remain available until September 30, 2031, and for which
there may be no outlays after September 30, 2031.
(c) Non-federal Share.--Notwithstanding section 9007(c)(3)(A) of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
8107(c)(3)(A)), the amount of a grant provided using amounts made
available by this section shall not exceed 50 percent of the cost of
the activity carried out using the grant funds.
SEC. 12006. BIOFUEL INFRASTRUCTURE AND AGRICULTURE PRODUCT MARKET
EXPANSION.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $960,000,000, to
remain available until September 30, 2031, to carry out this section.
(b) Use of Funds.--The Secretary shall use the amounts made
available by subsection (a) to provide grants, on a competitive basis,
to eligible entities described in subsection (c)--
(1) to install, retrofit, or otherwise upgrade fuel
dispensers or pumps and related equipment, storage tank system
components, and other infrastructure required at a location to
ensure the environmentally safe availability of fuel containing
ethanol blends at levels greater than 10 percent (as determined
by the Secretary) or fuel containing biodiesel blends at levels
greater than 20 percent (as determined by the Secretary); and
(2) to build and retrofit distribution systems for ethanol
blends, traditional and pipeline biodiesel terminal operations
(including rail lines), and home heating oil distribution
centers or equivalent entities--
(A) to blend biodiesel; and
(B) to carry ethanol and biodiesel.
(c) Eligible Entities.--Entities eligible to receive a grant under
this section are transportation fueling facilities and distribution
facilities, including fueling stations, convenience stores, hypermarket
retailer fueling stations, fleet facilities, as well as fuel terminal
operations, midstream partners, and heating oil distribution facilities
or equivalent entities.
(d) Federal Share.--The Federal share of the total cost of carrying
out a project for which a grant is provided under this section shall be
not more than 75 percent.
(e) Limitation.--The Secretary may not limit the amount of funding
an eligible entity may receive under this section.
SEC. 12007. CLEAN ENERGY REPOWERING FOR RURAL UTILITIES.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $9,700,000,000, to
remain available until September 30, 2031, to provide to an eligible
entity assistance under paragraphs (1) and (2) by prioritizing such
assistance to eligible entities that will achieve the greatest
reduction in greenhouse gas emissions using such assistance and that
will otherwise aid disadvantaged communities (as determined by the
Secretary) when--
(1) making grants and loans (including the cost of loans
and modifications thereof as defined in section 502 of the
Congressional Budget Act of 1974) to purchase renewable energy
or renewable energy systems (as defined in section 9001(15) and
(16) of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8101(15) and (16))), deploy renewable energy systems, or
make energy efficiency improvements after the date of enactment
of this Act; and
(2) making grants for debt relief and other costs
associated with terminating, after the date of enactment of
this Act or up to one year prior to the date of enactment, the
use of--
(A) facilities with high greenhouse gas emissions;
and
(B) related transmission assets.
(b) Limitation.--No eligible entity may receive an amount equal to
more than 10 percent of the total amount made available by this
section.
(c) Definition of Eligible Entity.--In this section, the term
``eligible entity'' means--
(1) an electric cooperative described in section 501(c)(12)
or 1381(a)(2) of the Internal Revenue Code of 1986; and
(2) an entity primarily owned or controlled by 1 or more
entities described in paragraph (1).
SEC. 12008. RURAL PARTNERSHIP PROGRAM.
(a) Rural Prosperity Development Grants.--
(1) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $3,500,000,000, to remain available until
September 30, 2031, to carry out this subsection to provide
grants to support rural development under this subsection.
(2) Allocation of funds.--
(A) Formula.--The Secretary shall establish a
formula pursuant to which the Secretary shall allocate,
for each State and for Indian Tribes, an amount to be
provided under this subsection to eligible applicants
described in paragraph (3).
(B) Requirements.--
(i) Formula.--The formula established under
subparagraph (A) shall include a graduated
scale for the amount to be allocated under this
subsection for eligible applicants in each
State and eligible applicants of Indian Tribes,
with higher amounts provided based on lower
populations and lower income levels, as
determined by the Secretary.
(ii) Priority.--In awarding grants under
this subsection to eligible applicants in each
State and eligible applicants of Indian Tribes,
the Secretary shall give priority to eligible
applicants representing a micropolitan
statistical area (as defined by the Office of
Management and Budget) and 1 or more rural
areas contiguous to that micropolitan
statistical area.
(3) Eligible applicants.--The Secretary may make a grant
under this subsection to a partnership no member of which has
received a grant under subsection (b) and that--
(A) is composed of--
(i) entities representing a region composed
of 1 or more rural areas, including--
(I) except as provided in
subparagraph (B), 1 or more of--
(aa) a unit of local
government;
(bb) a Tribal government;
or
(cc) an authority, agency,
or instrumentality of an entity
described in item (aa) or (bb);
and
(II) a nonprofit or for-profit
organization, including a public
benefit corporation, an economic
development organization, a community
or labor organization, an institution
of higher education, a community
development financial institution, a
philanthropic organization, an
instrumentality of a State agency
relevant to community and rural
development, a cooperative extension,
an institution in the Farm Credit
System, and a local food policy
council; and
(ii) such other entities as the Secretary
or the partnership may determine to be
appropriate;
(B) does not include a member described in
subparagraph (A)(i)(I), but demonstrates significant
community support sufficient to support a likelihood of
success on the proposed projects, as determined by the
Secretary; and
(C) demonstrates, as determined by the Secretary,
cooperation among the members of the partnership
necessary to complete comprehensive, asset-based rural
development to align Federal, State, regional, and
Tribal investment, while leveraging nongovernmental
resources, to build economic resilience and aid
economic recovery, including in communities impacted by
economic transitions and climate change.
(4) Eligible activities.--The use of grant funds provided
under this subsection may be used for the following purposes,
provided that, where applicable, the performance of any
construction work completed with the grant funds shall meet the
condition described section 9003(f) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8103(f)):
(A) Conducting comprehensive rural development and
pre-development activities and planning.
(B) Supporting organizational operating expenses
relating to the rural development activities for which
the grant was provided.
(C) Implementing planned rural development
activities and projects.
(5) Terms and conditions.--
(A) In general.--The recipient of a grant under
this subsection may not receive an additional grant
under this subsection or funding to implement
activities pursuant to a rural development plan unless
the recipient provides to the Secretary an annual plan
and report, which the Secretary has approved, on the
use of each grant provided to the recipient under this
subsection.
(B) Limitation.--Not more than 25 percent of
amounts received by a recipient of a grant under this
subsection may be used to satisfy a Federal matching
requirement of any other program.
(6) Matching requirement.--
(A) In general.--Subject to subparagraph (B), the
recipient of a grant under this subsection shall
contribute a non-Federal match of 25 percent of the
amount of the grant, which may be satisfied through an
in-kind contribution.
(B) Waiver.--The Secretary may waive any portion of
the matching requirement described in subparagraph (A)
on a finding that the recipient of the applicable grant
is economically distressed.
(b) Rural Prosperity Innovation Grants.--
(1) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $370,000,000, to remain available until September
30, 2031, to carry out this subsection.
(2) Eligible applicants.--The Secretary may make a grant
under this subsection to an entity that has not received a
grant under subsection (a) and that--
(A) serves rural areas; and
(B) is a qualified nonprofit corporation or an
institution of higher education.
(3) Eligible activities.--A grant provided under this
subsection may be used--
(A) to support activities of the recipient relating
to--
(i) development and predevelopment planning
aspects of rural development; and
(ii) organizational capacity-building
necessary to support the rural development
activities funded by the grant; and
(B) to support the recipient of a grant under
subsection (a) in carrying out activities for which
that grant was provided.
(4) Matching requirement.--The recipient of a grant under
this subsection shall contribute a non-Federal match of 20
percent of the amount of the grant.
(c) Definitions.--In this section:
(1) Rural area.--The term ``rural area'' has the meaning
given the term in section 343(a)(13)(C) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1991(a)(13)(C)).
(2) State.--The term ``State'' means--
(A) the 50 States of the United States;
(B) the District of Columbia; and
(C) the insular areas.
SEC. 12009. ADDITIONAL USDA RURAL DEVELOPMENT ADMINISTRATIVE FUNDS.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $545,000,000, to remain available until
September 30, 2031, for administrative costs and salaries and expenses
for the Rural Development mission area and for research, data
collection, and other associated costs for section 12008.
Subtitle D--Research and Urban Agriculture
SEC. 13001. DEPARTMENT OF AGRICULTURE RESEARCH FUNDING.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary, out of any money in the
Treasury not otherwise appropriated, to remain available until
September 30, 2031--
(1) to the Agricultural Research Service, $250,000,000 for
fiscal year 2022, to carry out agricultural research relating
to climate change, including through climate hubs, long-term
agroecosystem research, nutrient uses and outcomes, soil carbon
data collection, and other related agricultural climate
science;
(2) to the Economic Research Service, $45,000,000 for
fiscal year 2022, to carry out economic analysis and economic
agricultural research relating to climate change;
(3) to the Office of the Chief Economist, $3,200,000 for
each of fiscal years 2022 through 2026, to carry out economic
analysis and economic agricultural research relating to climate
change and environmental services markets;
(4) to the National Agricultural Statistics Service--
(A) $40,000,000 for fiscal year 2022, to carry out
data collection and agricultural research relating to
climate change; and
(B) $14,000,000 for fiscal year 2022, for
measurements, a survey, and data collection to conduct
the study required under section 7212(b) of the
Agriculture Improvement Act of 2018 (Public Law 115-
334; 132 Stat. 4812), which shall be completed not
later than December 31, 2022;
(5) to the National Institute of Food and Agriculture--
(A) to carry out agricultural education, extension,
and research relating to climate change--
(i) through the Agriculture and Food
Research Initiative established by subsection
(b) of the Competitive, Special, and Facilities
Research Grant Act (7 U.S.C. 3157(b))--
(I) $25,000,000 for each of fiscal
years 2022 and 2023; and
(II) $150,000,000 for each of
fiscal years 2024 through 2026;
(ii) through the sustainable agriculture
research education program established under
sections 1619, 1621, 1622, 1628, and 1629 of
the Food, Agriculture, Conservation, and Trade
Act of 1990 (7 U.S.C. 5801, 5811, 5812, 5831,
5832)--
(I) $25,000,000 for each of fiscal
years 2022 and 2023; and
(II) $150,000,000 for each of
fiscal years 2024 through 2026;
(iii) through the crop protection pest
management competitive grant program authorized
under section 406 of the Agricultural Research,
Extension, and Education Reform Act of 1998 (7
U.S.C. 7626), $30,000,000 for fiscal year 2022;
(iv) through the Agricultural Genome to
Phenome Initiative established under section
1671 of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5924),
$20,000,000 for fiscal year 2022;
(v) through the organic agriculture
research and extension initiative established
under section 1672B of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C.
5925b)--
(I) $15,000,000 for fiscal year
2022;
(II) $5,000,000 for fiscal year
2023; and
(III) $60,000,000 for each of
fiscal years 2024 through 2026;
(vi) through the urban, indoor, and other
emerging agricultural production research,
education, and extension initiative established
under section 1672E of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C.
5925g), $65,000,000 for fiscal year 2022;
(vii) through the centers of excellence led
by 1890 Institutions established under section
1673(d) of the Food, Agriculture, Conservation,
and Trade Act of 1990 (7 U.S.C. 5926(d)),
$15,000,000 for fiscal year 2022;
(viii) through the specialty crop research
and extension initiative established by section
412 of the Agricultural Research, Extension,
and Education Reform Act of 1998 (7 U.S.C.
7632)--
(I) $10,000,000 for each of fiscal
years 2022 and 2023; and
(II) $60,000,000 for each of fiscal
years 2024 through 2026;
(ix) through the cooperative extension
under the Smith-Lever Act (7 U.S.C. 341 et
seq.) for technical assistance, technology
adoption, and other extension activities
relating to climate change--
(I) $60,000,000 for each of fiscal
years 2022 and 2023; and
(II) $160,000,000 for each of
fiscal years 2024 through 2026;
(x) through the cooperative extension at
1994 Institutions in accordance with section
3(b)(3) of the Smith-Lever Act (7 U.S.C.
343(b)(3)), $8,000,000 for each of fiscal years
2022 through 2026; and
(xi) through the cooperative extension at
1890 Institutions under section 1444 of the
National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3221),
$25,200,000 for each of fiscal years 2022
through 2026;
(B) $2,664,500,000 for fiscal year 2022, for grants
for construction, alteration, acquisition,
modernization, renovation, or remodeling of
agricultural research facilities, including related
building costs associated with compliance with
applicable Federal and State law, under section 4 of
the Research Facilities Act (7 U.S.C. 390b), subject to
the condition that, notwithstanding section 3(c)(2)(A)
of that Act (7 U.S.C. 390a(c)(2)(A)), the recipient of
a grant provided using those amounts shall not be
required to provide any non-Federal share of total
funding provided under this subparagraph;
(C) $985,500,000 for fiscal year 2022, for grants
to covered institutions for construction, alteration,
acquisition, modernization, renovation, or remodeling
of agricultural research facilities, including related
building costs associated with compliance with
applicable Federal and State law, under section 4 of
the Research Facilities Act (7 U.S.C. 390b), subject to
the condition that notwithstanding section 3(c)(2)(A)
of that Act (7 U.S.C. 390a(c)(2)(A)), the recipient of
a grant provided using those amounts shall not be
required to provide any non-Federal share of total
funding provided under this subparagraph;
(D) $100,000,000 for fiscal year 2022, for research
equipment grants under section 1462A of the National
Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3310a);
(E) for the scholarships for students at 1890
Institutions grant program under section 1446 of the
National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3222a)--
(i) $10,000,000 for each of fiscal years
2022 and 2023;
(ii) $50,000,000 for each of fiscal years
2024 and 2025; and
(iii) $70,000,000 for fiscal year 2026;
(F) $10,000,000 for each of fiscal years 2022
through 2026, for grants to land-grant colleges and
universities to support Tribal students under section
1450 of that Act (7 U.S.C. 3222e) and for purposes of
this subparagraph, section 1450(b)(4) of such Act shall
not apply; and
(G) $10,000,000 for each of fiscal years 2022
through 2026, for the Higher Education Multicultural
Scholars Program carried out pursuant to section 1417
of that Act (7 U.S.C. 3152);
(6) to the Office of the Chief Scientist, to carry out
advanced research and development relating to climate through
the Agriculture Advanced Research and Development Authority
under section 1473H of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319k)--
(A) $10,000,000 for each of fiscal years 2022 and
2023; and
(B) $120,000,000 for each of fiscal years 2024
through 2026;
(7) to the Foundation for Food and Agriculture Research, to
carry out activities relating to climate change in accordance
with section 7601 of the Agricultural Act of 2014 (7 U.S.C.
5939), to be considered as provided pursuant to subsection
(g)(1)(A) of that section, and subject to the condition that
the Foundation shall not secure funds from any institution of
higher education (as defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001)) to fulfill the matching
funds requirement under section 7601(g)(1)(B)(i) of the
Agricultural Act of 2014 (7 U.S.C. 5939(g)(1)(B)(i))--
(A) $45,000,000 for each of fiscal years 2022 and
2023; and
(B) $150,000,000 for each of fiscal years 2024
through 2026;
(8) for biomass research, $5,000,000 for fiscal year 2022,
to carry out agriculture climate research on biomass, including
pyrolysis and biochar, and related activities in accordance
with section 9008 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8108); and
(9) to the Office of Urban Agriculture and Innovative
Production, $62,000,000 for each of fiscal years 2022 and 2023,
to carry out activities in accordance with section 222 of the
Department of Agriculture Reorganization Act of 1994 (7 U.S.C.
6923).
(b) Covered Institution Defined.--In this section, the term
``covered institution'' means--
(1) an 1890 Institution (as defined in section 2 of the
Agricultural Research, Extension, and Education Reform Act of
1998 (7 U.S.C. 7601));
(2) a 1994 Institution (as defined in section 532 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C.
301 note; Public Law 103-382));
(3) an Alaska Native serving institution or Native Hawaiian
serving institution eligible to receive grants under
subsections (a) and (b), respectively, of section 1419B of the
National Agricultural Research, Extension, and Teaching Policy
Act of 1977 (7 U.S.C. 3156);
(4) Hispanic-serving agricultural colleges and universities
and Hispanic-serving institutions (as those terms are defined
in section 1404 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103));
(5) an eligible institution (as defined in section 1489 of
the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3361) (relating to institutions of
higher education in insular areas)); and
(6) the University of the District of Columbia established
pursuant to the Act of July 2, 1862 (commonly known as the
``First Morrill Act'') (7 U.S.C. 301 et seq.).
SEC. 13002. LIMITATION.
The funds made available under this subtitle are subject to the
condition that the Secretary shall not--
(1) enter into any agreement--
(A) that is for a term extending beyond September
30, 2031; and
(B) under which any payment could be outlaid or
funds disbursed after September 30, 2031; and
(2) use any other funds available to the Secretary to
satisfy obligations initially made under this subtitle.
Subtitle E--Miscellaneous
SEC. 14001. ADDITIONAL SUPPORT FOR USDA OFFICE THE INSPECTOR GENERAL.
In addition to amounts otherwise made available, there is
appropriated to the Office of the Inspector General of the Department
of Agriculture for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $5,000,000 to remain available until
September 30, 2031, for audits, investigations, and other oversight
activities of projects and activities carried out with funds made
available to the Department of Agriculture under this title.
TITLE II--COMMITTEE ON EDUCATION AND LABOR
Subtitle A--Education Matters
PART 1--ELEMENTARY AND SECONDARY EDUCATION
SEC. 20001. REBUILD AMERICA'S SCHOOLS GRANT PROGRAM.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Department of Education--
(1) for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $1,270,000,000, to remain available
until September 30, 2025, for carrying out this section; and
(2) for each of fiscal years 2023 through 2024, out of any
money in the Treasury not otherwise appropriated,
$39,643,650,000, to remain available until September 30, 2026,
for carrying out this section.
(b) Rebuild America's Schools Grants Authorized.--From funds
provided under paragraphs (1) and (2) of subsection (a), the Secretary
shall award grants in fiscal years 2022 through 2024 to State
educational agencies in accordance with subsection (c).
(c) Rebuild America's Schools Grants.--
(1) Eligibility.--A State educational agency is eligible
for an allocation under this section--
(A) with respect to fiscal year 2022, for the
purpose of public school facilities inventory efforts
in accordance with paragraph (3)(A); and
(B) with respect to fiscal years 2023 and 2024, if
such State educational agency has had approved by the
Secretary a State facilities plan developed under
paragraph (3)(A)(ii)(I), for the purpose of improving
public school facilities in accordance with paragraph
(3)(B).
(2) Allocations to states.--The amount allocated to each
State educational agency under paragraph (1) shall be in the
same proportion as the amounts distributed to the State under
part A of title I of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6311) in the most recent fiscal year,
relative to the total amount received under such part by all
other States receiving an allocation under this section in such
fiscal year.
(3) State uses of funds.--A State educational agency that
receives an allocation under paragraph (1)--
(A) with respect to fiscal year 2022, shall use--
(i) not less than 80 percent of such
allocation to award subgrants to local
educational agencies (including public charter
schools that are local educational agencies) in
the State, in proportion to the amount of funds
such local educational agencies and charter
schools received under part A of title I of the
Elementary and Secondary Education Act of 1965
(20 U.S.C. 6311) in the most recent fiscal
year, to support each such local educational
agency in--
(I) the development and publication
of a local facilities master plan to
address the health, safety, education
equity, enrollment diversity,
environmental sustainability, and
climate resiliency of the public school
facilities operated by such agency; and
(II) the collection and submission
of data to the State educational agency
to support implementation of the State
school facilities database; and
(ii) not more than 20 percent of such
allocation to--
(I) develop a State facilities plan
that details--
(aa) how the State will use
grant funds received under this
section and State funds to make
improvements to public school
facilities of eligible local
educational agencies to address
disparities in both the
financing and expenditures of
school facilities capital
outlay projects and in the
conditions of public school
facilities between eligible
local educational agencies and
other local educational
agencies in the State;
(bb) how the State will
develop a competitive process
to provide subgrants to
eligible local educational
agencies, including the State's
criteria for subgrant
eligibility; and
(cc) how the State will, in
carrying out the competitive
process for subgrants described
in item (bb), take into
consideration the impact that
such subgrants may have on
increasing student diversity
and decreasing racial and
socioeconomic isolation of
students attending public
elementary or secondary schools
improved by such subgrants;
(II) develop and operate (directly
or through grants or contracts) the
State school facilities database; and
(III) provide technical assistance
to local educational agencies in
carrying out activities described in
clause (i) and supports related to the
requirements of paragraph (4) for
eligible local educational agencies;
and
(B) with respect to each of fiscal years 2023 and
2024, shall--
(i) use not less than 90 percent of such
allocation to award subgrants on a competitive
basis to eligible local educational agencies
with approved applications described in
paragraph (4)(A); and
(ii) use not more than 10 percent of such
allocation to--
(I) maintain and update (directly
or through grants or contracts) the
State school facilities database;
(II) provide technical assistance
to eligible local educational agencies
in the State in carrying out school
facilities capital outlay projects,
including technical assistance
regarding capital construction, energy
efficiency, and climate resiliency;
(III) develop and implement State-
level strategies for safe, healthy,
energy efficient, and environmentally
resilient public school facilities that
address--
(aa) indoor air quality;
(bb) water quality;
(cc) energy and water
efficiency;
(dd) renewable energy and
decarbonization;
(ee) exposure to toxic
substances, including mercury,
radon, polychlorinated
biphenyls, lead, vapor
intrusions, and asbestos;
(ff) climate resiliency;
(gg) emergency preparedness
for natural or man-made
disasters or emergencies; and
(hh) structural hazards
created by pyrrhotite, as
determined by an engineer's
report and pyrrhotite testing;
(IV) provide professional
development opportunities for State and
local staff involved in maintenance and
operations and school facilities
capital outlay projects; and
(V) administer and monitor the
implementation of subgrants provided
under clause (i).
(4) Rebuild america's schools subgrants to eligible local
educational agencies.--
(A) Application.--The State educational agency
shall require an eligible local educational agency
desiring a subgrant under paragraph (3)(B)(i) to submit
an application to the State educational agency that, at
a minimum, includes--
(i) a certification that the eligible local
educational agency shall use subgrant funds for
school facilities capital outlay projects that
prioritize the improvement of the public school
facilities of such agency that serve the
highest numbers or percentages of students who
are eligible for a free or reduced price lunch
under the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751), under a method
established by the Secretary; and
(ii) such agency's facilities master plan.
(B) Rebuild america's schools subgrant use of
funds.--An eligible local educational agency that
receives a subgrant under paragraph (3)(B)(i) shall use
such funds to carry out school facilities capital
outlay projects, including 1 or more of the following:
(i) Assessing, planning, designing,
constructing, modernizing, retrofitting, or
decarbonizing public school facilities.
(ii) Carrying out major repairs of public
school facilities, including repairs to extend
the life of facilities systems and components
by not less than 10 years.
(iii) Upgrading or replacing major
facilities systems, components, furniture,
fixtures, and equipment with a life of not less
than 10 years.
(iv) Constructing new public school
facilities, including when student enrollment
exceeds the physical and instructional capacity
of public school facilities.
(v) Purchasing and preparing sites on which
public school facilities will be constructed.
(vi) Improving energy and water efficiency
in public school facilities, including
improvements related to clean energy.
(vii) Reducing or eliminating the presence
of health and safety hazards in public school
facilities, including--
(I) toxic substances, including
mercury, radon, polychlorinated
biphenyls, lead, and asbestos;
(II) mold or mildew;
(III) rodents and pests; and
(IV) structural hazards created by
pyrrhotite.
(viii) Improving instructional or outdoor
public school facilities relating to early
learning, special education, science,
technology, career and technical education,
physical education, the arts, literacy
(including library programs), or community-
based partnerships.
(ix) Improving the public school facilities
of magnet schools, or other instructional
programs, designed to increase student
diversity and decrease racial or socioeconomic
isolation.
(x) Supporting independent commissioning
and certification of public school facilities,
public school facility systems, and school
facilities capital outlay projects.
(d) Conditions.--
(1) State matching requirement.--
(A) In general.--As a condition of receiving an
allocation under subsection (c)(1)(B), a State shall
contribute, from non-Federal sources, an amount equal
to 10 percent of the amount of the allocation received
under such subsection to carry out activities supported
by such allocation.
(B) Exemption.--States that contributed an average
of 10 percent or greater toward total local educational
agency capital outlay from non-Federal funds, within
the most recent 5-year fiscal period, are exempt from
the State matching requirement under subparagraph (A).
(2) State maintenance of effort.--
(A) In general.--The State shall provide an
assurance to the Secretary that for each fiscal year
that the State receives an allocation under this
section, the State's share of school facilities capital
outlay will be not less than 90 percent of the average
of the State's share of school facilities capital
outlay for the 5 years preceding the 2020 fiscal year.
(B) Waiver.--Notwithstanding subparagraph (A), in
response to a request from a State, the Secretary may
modify or waive, in whole or in part, the requirement
of subparagraph (A) if the Secretary determines that
such State demonstrates an exceptional or
uncontrollable circumstance, such as a natural
disaster, pandemic, or precipitous decline in revenue.
(3) Supplement not supplant.--As a condition of receiving
an allocation under subsection (c)(1)(B), a State shall use
funds received under this section only to supplement the level
of State and local public funds that would, in the absence of
the receipt of Federal funds under this section, be made
available for the State's contribution to school facilities
capital outlays, and not to supplant those other funds.
(e) Definitions.--
(1) ESEA terms.--The terms ``elementary school'', ``local
educational agency'', ``secondary school'', and ``State
educational agency'' have the meanings given the terms in
section 8101 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7801).
(2) Eligible local educational agency.--The term ``eligible
local educational agency'' means a local educational agency
(including a public charter school that is a local educational
agency under State law) in a State that--
(A) is identified by the State based on the
criteria established under the State facilities plan as
among the local educational agencies in such State
with--
(i) the highest numbers or percentages of
students counted under section 1124(c) of the
Elementary and Secondary Education Act of 1965
(20 U.S.C. 6333(c)); or
(ii) the most limited capacity to raise
funds for the long-term improvement of public
school facilities, as determined by an
assessment of factors determined by the
Secretary;
(B) certifies that any funds received under this
section shall be used to prioritize the improvement of
public school facilities of public elementary or
secondary schools that serve the highest percentages of
students who are eligible for a free or reduced price
lunch under the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751), under a method established
by the Secretary; and
(C) certifies that any public school facilities
improved by funds received under this section are--
(i) operated and managed by a public agency
or a non-profit private entity; and
(ii)(I) owned or leased from a public
agency; or
(II) owned or leased from a private entity,
except that no individual associated with such
private entity may have a financial interest or
management role in the local educational
agency.
(3) Local facilities master plan.--The term ``local
facilities master plan'' means a plan of a local educational
agency developed under subsection (c)(3)(A)(i)(I) by the local
educational agency, in consultation with local stakeholders,
which includes an assessment of such agency's public school
facilities, financing of school capital project outlays, and
student enrollment levels, and other factors determined by the
Secretary.
(4) Operations and maintenance of school facilities.--The
term ``operations and maintenance of school facilities'' means
the labor, contracts, and supplies and materials supported by a
local educational agency's annual operating budget related to--
(A) cleaning, groundskeeping, and preventive and
routine maintenance of public school facilities and
grounds;
(B) minor repairs and operations of building
systems and equipment for public school facilities; and
(C) payments for utilities for public school
facilities.
(5) Public school facility.--The term ``public school
facility'' means a school facility operated by a local
educational agency that is primarily used to educate students,
including outdoor facilities and grounds, but does not
include--
(A) a facility that is primarily used for athletic
contests or exhibitions or other events for which
admission is charged to the general public;
(B) a vehicle; or
(C) a district central office, operation center, or
other school facility if it is not primarily used to
educate students.
(6) School facilities capital outlay project.--The term
``school facilities capital outlay project'' means the
assessment, planning, design, construction, renovation, repair,
management, and financing of a public school facility project
with a life expectancy of at least 10 years, but does not
include operations and maintenance of school facilities.
(7) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(8) State.--The term ``State'' means each of the 50 States,
the District of Columbia, and the Commonwealth of Puerto Rico.
(9) State's contribution to school facilities capital
outlays.--The term ``State's contribution to school facilities
capital outlays'' means the total amount of State
appropriations on elementary and secondary education capital
expenditures in the State, including--
(A) State aid reimbursements for school facilities
capital outlay projects;
(B) State payment of debt service for school
facilities capital outlay projects;
(C) direct payment of school facilities capital
outlay projects; and
(D) grants or facilities allowances to charter
schools for facilities capital projects.
(10) State facilities plan.--The term ``State facilities
plan'' means a State's plan developed by the State educational
agency, in accordance with subsection (c)(3)(A)(ii)(I) and
including plan elements determined by the Secretary, for the
purpose of being eligible for an allocation described in
subsection (c)(1)(B).
(11) State school facilities database.--The term ``State
school facilities database'' means an electronic, publicly
available database maintained by the State educational agency
that contains an inventory of the infrastructure of all public
school facilities in the State, including the data elements
determined by the Secretary.
SEC. 20002. OUTLYING AREAS.
In addition to amounts otherwise available, there is appropriated
to the Department of Education for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $410,900,000, to remain
available until September 30, 2026, for the Secretary of Education to
allocate to each outlying area (as defined in section 8101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)) an
amount in proportion to the amount received by the outlying area under
part A of title I of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6311) in the most recent fiscal year relative to the total
amount received under such part for such fiscal year by all outlying
areas, to carry out the activities described in section 20001(c) in the
outlying areas.
SEC. 20003. IMPACT AID CONSTRUCTION GRANTS.
In addition to amounts otherwise available, there is appropriated
to the Department of Education for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $410,900,000, to remain
available until September 30, 2026, for making payments to local
educational agencies in accordance with the same terms and conditions
as the terms and conditions of section 7007 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7707), except that--
(1) subsection (a)(2)(A) of such section shall be applied
by substituting ``20 percent'' for ``50 percent'';
(2) subsection (a)(2)(B) of such section shall be applied
by substituting ``20 percent'' for ``50 percent''; and
(3) clauses (i) and (vi) of subsection (b)(5)(A) of such
section shall not apply to funds provided or received under
this section.
SEC. 20004. BUREAU OF INDIAN EDUCATION.
In addition to amounts otherwise available, there is appropriated
to the Bureau of Indian Education for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated--
(1) $369,810,000, to remain available until September 30,
2026, for necessary expenses related to construction, repair,
improvement, and maintenance of buildings, utilities, and other
facilities necessary for the operation of Indian education
programs, including architectural and engineering services by
contract, acquisition of lands, and interests in lands, of
which no more than 3 percent shall be used for administrative
costs to carry out this section; and
(2) $41,090,000, to remain available until September 30,
2026, for digital infrastructure to improve access to high-
speed broadband sufficient for digital learning and related
digital infrastructure activities or programs operated or
funded by the Bureau of Indian Education, for Bureau-funded
schools (as defined in section 1141(3) of the Education
Amendments of 1978 (25 U.S.C. 2021(3))).
SEC. 20005. GALLAUDET UNIVERSITY.
In addition to amounts otherwise available, there is appropriated
to the Department of Education for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $150,000,000, to remain
available until September 30, 2026, for the Kendall Demonstration
Elementary School and the Model Secondary School for the Deaf at
Gallaudet University for construction, as defined in section 201(2) of
the Education of the Deaf Act of 1986 (20 U.S.C. 4351(2)).
SEC. 20006. GROW YOUR OWN PROGRAMS.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Department of Education for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$197,000,000, to remain available through September 30, 2025, to award
grants for the development and support of Grow Your Own Programs, as
described in section 202(g) of the Higher Education Act of 1965 (20
U.S.C. 1022a(g)).
(b) In General.--Section 202 of the Higher Education Act of 1965
(20 U.S.C. 1022a) is amended--
(1) in subsection (b)(6)(C), by striking ``subsection (f)
or (g)'' and inserting ``subsection (f) or (h)'';
(2) in subsection (c)(1), by inserting ``a Grow Your Own
program under subsection (g),'' after ``subsection (e),'';
(3) by redesignating subsections (g), (h), (i), (j), and
(k), as subsections (h), (i), (j), (k), and (l), respectively;
and
(4) by inserting after subsection (f) the following:
``(g) Partnership Grants for the Establishment of `Grow Your Own'
Programs.--
``(1) In general.--An eligible partnership that receives a
grant under this section shall carry out an effective `Grow
Your Own' program to address shortages of teachers in high-need
subjects, fields, schools, and geographic areas, or shortages
of school leaders in high-need schools, and to increase the
diversity of qualified individuals entering into the teacher,
principal, or other school leader workforce.
``(2) Requirements of a grow your own program.--In addition
to carrying out each of the activities described in paragraphs
(1) through (6) of subsection (d), an eligible partnership
carrying out a Grow Your Own program under this subsection
shall--
``(A) integrate career-focused courses on education
topics with a year-long school-based clinical
experience in which candidates teach or lead alongside
an expert mentor teacher or school leader who is the
teacher or school leader of record in the same local
educational agencies in which the candidates expect to
work;
``(B) provide opportunities for candidates to
practice and develop teaching skills or school
leadership skills;
``(C) support candidates as they complete their
associate (in furtherance of their baccalaureate),
baccalaureate, or master's degree or earn their
teaching or school leadership credential;
``(D) work to provide academic, counseling, and
programmatic supports to candidates;
``(E) provide academic and nonacademic supports,
including advising and financial assistance, to
candidates to enter and complete teacher or school
leadership preparation programs and to access and
complete State licensure exams;
``(F) include efforts to recruit individuals with
experience in high-need subjects or fields who are not
certified to teach or lead, with a specific focus on
recruiting individuals--
``(i) from groups or populations that are
underrepresented; and
``(ii) who live in and come from the
communities the schools serve;
``(G) evaluate the effectiveness of the program,
including, at a minimum, using the data required under
section 204(a)(1);
``(H) require candidates to complete all State
requirements to become fully certified; and
``(I) provide stipends for candidates to engage in
school-based clinical placements.''.
SEC. 20007. TEACHER RESIDENCIES.
In addition to amounts otherwise available, there is appropriated
to the Department of Education for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $198,000,000, to remain
available through September 30, 2025, to award grants for the
development and support of high-quality teaching residency programs, as
described in section 202(e) of the Higher Education Act of 1965 (20
U.S.C. 1022a(e)), except that amounts available under this section
shall be available for residency programs for prospective teachers in a
bachelor's or master's degree program.
SEC. 20008. SUPPORT SCHOOL PRINCIPALS.
In addition to amounts otherwise available, there is appropriated
to the Department of Education for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $198,000,000, to remain
available through September 30, 2025, to award grants for the
development and support of school leadership programs, as described in
section 2243 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6673).
SEC. 20009. HAWKINS.
In addition to amounts otherwise available, there is appropriated
to the Department of Education for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $198,000,000, to remain
available through September 30, 2025, to award grants for the Augustus
F. Hawkins Centers of Excellence Program, as described in section 242
of the Higher Education Act of 1965 (20 U.S.C. 1033a).
SEC. 20010. FUNDING FOR THE INDIVIDUALS WITH DISABILITIES EDUCATION
PART D PERSONNEL DEVELOPMENT.
In addition to amounts otherwise available, there is appropriated
to the Department of Education for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $297,000,000, to remain
available until September 30, 2025, for personnel development in
section 662 of the Individuals with Disabilities Education Act (20
U.S.C. 1462).
PART 2--HIGHER EDUCATION
Subpart A--America's College Promise
SEC. 20021. GRANTS FOR TUITION-FREE COMMUNITY COLLEGE.
Title VII of the Higher Education Act of 1965 (20 U.S.C. 1133 et
seq.) is amended by adding at the end the following:
``PART F--AMERICA'S COLLEGE PROMISE
``Subpart 1--Grants for Tuition-Free Community College
``SEC. 785. GRANT AWARDS.
``(a) In General.--Beginning with award year 2023-2024, from
amounts appropriated to carry out this subpart for any fiscal year, the
Secretary shall award grants to States and eligible Tribal Colleges and
Universities to pay the Federal share of expenditures needed to carry
out the activities and services described in section 789.
``(b) Timing of Grant Awards.--The Secretary shall award grant
funds under subsection (a) for an award year not less than 30 days
before the first day of the award year.
``SEC. 786. FEDERAL SHARE; STATE SHARE.
``(a) Federal Share.--
``(1) In general.--
``(A) Amount.--Subject to paragraph (2), the amount
of the Federal share of a grant under this subpart
shall be based on a formula that provides, for each
eligible student enrolled in a community college
operated or controlled by the State or in an eligible
Tribal College or University, a per-student amount
(based on full-time equivalent enrollment) that is
equal to the applicable percent described in
subparagraph (B), or the percent described in paragraph
(2) with respect to an eligible Tribal College or
University, of--
``(i) for the 2023-2024 award year, the
median resident community college tuition and
fees per student in all States, not weighted
for enrollment, for the most recent award year
for which data are available; and
``(ii) for each subsequent award year, the
amount determined under this paragraph for the
preceding award year, increased by the lesser
of--
``(I) a percentage equal to the
estimated percentage increase in the
Consumer Price Index (as determined by
the Secretary) since the date of such
determination; or
``(II) 3 percent.
``(B) Applicable percent.--The applicable percent
for a State receiving a grant under this subpart shall
be--
``(i) for the 2023-2024 award year, 100
percent;
``(ii) for the 2024-2025 award year, 95
percent;
``(iii) for the 2025-2026 award year, 90
percent;
``(iv) for the 2026-2027 award year, 85
percent; and
``(v) for the 2027-2028 award year, 80
percent.
``(2) Tribal colleges and universities.--The amount of the
Federal share for an eligible Tribal College or University
receiving a grant under this subpart shall be the greater of--
``(A) 100 percent of the per-student amount
determined in accordance with clause (i) or (ii) of
paragraph (1)(A), as applicable, with respect to
eligible students enrolled in such eligible Tribal
College or University (based on full-time equivalent
enrollment); or
``(B) the amount that is 100 percent of the total
amount needed to set tuition and fees to $0 for all
eligible students enrolled in such eligible Tribal
College or University for the 2021-2022 award year,
increased by the percentage increase in the Consumer
Price Index (as determined by the Secretary) between
July 1, 2021, and the applicable award year, and
adjusted to reflect the enrollment in such eligible
Tribal College or University for such applicable award
year.
``(b) State Share.--
``(1) Formula.--
``(A) In general.--The State share of a grant under
this subpart for each award year shall be the amount
needed to pay the applicable percent described in
subparagraph (B) of the median resident community
college tuition and fees in all States, not weighted
for enrollment, per student (based on full-time
equivalent enrollment) determined in accordance with
subsection (a)(1)(A)(i) for all eligible students
enrolled in a community college operated or controlled
by the State for such award year.
``(B) Applicable percent.--The applicable percent
shall be--
``(i) for the 2023-2024 award year, 0
percent;
``(ii) for the 2024-2025 award year, 5
percent;
``(iii) for the 2025-2026 award year, 10
percent;
``(iv) for the 2026-2027 award year, 15
percent; and
``(v) for the 2027-2028 award year, 20
percent.
``(C) Obligation to provide share.--The State shall
provide the State share even if the State is able to
set tuition and fees charged to eligible students
attending community colleges operated or controlled by
the State to $0 as required by section 788(a) without
such State share.
``(D) No double counting funds.--Except with
respect to funding described in paragraph (2)(A), no
funds that count toward the maintenance of effort
requirement under section 788(c) may also count toward
the State share under this subsection.
``(E) Special rule for outlying areas and
territories.--
``(i) In general.--If the Secretary
determines that requiring an outlying area or
territory to provide a State share in
accordance with this subsection would represent
a substantial hardship for the outlying area or
territory, the Secretary may reduce or waive
the State share for such area or territory. If
the Secretary so reduces or waives the amount
of the State share of an outlying area or
territory, the Secretary shall increase the
applicable percent used to calculate the
Federal share for such area or territory, in
proportion to the reduction in the applicable
percent used to calculate such State share.
``(ii) Definition.--For the purposes of
this subparagraph, the term `outlying area or
territory' means the Commonwealth of Puerto
Rico, the District of Columbia, Guam, American
Samoa, the United States Virgin Islands, the
Commonwealth of the Northern Mariana Islands,
and the Freely Associated States.
``(2) Inclusion of state financial aid and local funds.--In
the case of a State that demonstrates to the satisfaction of
the Secretary that community colleges operated or controlled by
such State will not experience a net reduction in total per-
student revenue (including revenue derived from tuition and
fees) as compared to the preceding fiscal year in such State, a
State may include, as part of the State share--
``(A) any financial aid that is provided from State
funds to an eligible student and that--
``(i)(I) is not awarded predominantly on
the basis of merit, including programs awarded
on the basis of predicted or actual academic
performance or assessments; and
``(II) may be used by such student to pay
any component of cost of attendance, as defined
under section 472; and
``(B) any funds provided to community colleges by
local governments in such State for the purpose of
carrying out this subpart.
``(3) Relationship to maintenance of effort.--The inclusion
of funds described in paragraph (2) as part of a State's share
shall modify the maintenance of effort requirements under
section 788(c) in accordance with the provisions of--
``(A) section 791(10)(B)(iii), with respect to
funds included under paragraph (2)(A); and
``(B) section 791(10)(A)(ii), with respect to funds
included under paragraph (2)(B).
``(4) No in-kind contributions.--A State shall not include
in-kind contributions for purposes of the State share described
in paragraph (1).
``(c) Determining Number of Eligible Students.--
``(1) In general.--For purposes of subsections (a) and (b),
the Secretary shall, in consultation with the State or eligible
Tribal College or University concerned, determine the estimated
number of eligible students enrolled in the community colleges
operated or controlled by such State or in such eligible Tribal
College or University for the applicable award year.
``(2) Adjustment of grant amount.--For each year for which
a State or eligible Tribal College or University receives a
grant under this subpart, the Secretary shall, once final
enrollment data for such year are available--
``(A) in consultation with the State or eligible
Tribal College or University concerned, determine the
actual number of eligible students enrolled in the
community colleges operated or controlled by such State
or in such eligible Tribal College or University for
the year covered by the grant; and
``(B) adjust the Federal share of the grant amount
received by the State or eligible Tribal College or
University and the State share under subsection (b) to
reflect the actual number of eligible students, which
may include applying the relevant adjustment to such
Federal share or the State share, or both, in the
subsequent award year.
``(d) Community Colleges Operated or Controlled by State to Include
Community Colleges Operated or Controlled by Local Governments Within
the State.--For purposes of this subpart, the term `community college
operated or controlled by a State' shall include a community college
operated or controlled by a local government within such State.
``(e) Inapplicability of State Requirements to Eligible TCUs.--The
Secretary may not apply any requirements applicable only to States
under this subpart to an eligible Tribal College or University,
including the requirements under subsection (b), section 788(b) and
(c), and section 790.
``SEC. 787. APPLICATIONS.
``In order to receive a grant under this subpart, a State or
eligible Tribal College or University shall submit an application to
the Secretary that includes--
``(1) an estimate of the number of eligible students
enrolled in the community colleges operated or controlled by
the State or in the eligible Tribal College or University and
the cost of waiving tuition and fees for all eligible students
for each award year covered by the grant;
``(2) in the case of a State, a list of each of the
community colleges operated or controlled by the State;
``(3) an assurance that each community college operated or
controlled by the State, or the eligible Tribal College or
University, as applicable, will set community college tuition
and fees for eligible students to $0 as required by section
788(a);
``(4) a description of how the State or eligible Tribal
College or University will ensure that programs leading to a
recognized postsecondary credential meet the quality criteria
established by the State under section 122(b)(1) of the
Workforce Innovation and Opportunity Act (29 U.S.C. 3152(b)(1))
or other quality criteria determined appropriate by the State
or eligible Tribal College or University;
``(5) an assurance that each community college operated or
controlled by the State or the eligible Tribal College or
University, as applicable, has entered into a program
participation agreement under section 487;
``(6) an assurance that the State or eligible Tribal
College or University will assist eligible students in
obtaining information about and accessing means-tested Federal
benefit programs and similar State, tribal, and local benefit
programs that can provide financial assistance for any
component of the student's cost of attendance, as defined under
section 472, other than tuition and fees;
``(7) an assurance that, for each year of the grant, the
State or eligible Tribal College or University will notify each
eligible student of the student's remaining eligibility for
assistance under this subpart;
``(8) if the application is submitted by a State--
``(A) an assurance that the State will meet the
requirements of section 788(b)(1) relating to the
alignment of secondary and postsecondary education; and
``(B) an assurance that the State will meet the
requirements of section 788(b)(2) relating to the
improvement of transfer pathways between institutions
of higher education; and
``(9) an assurance that the State or eligible Tribal
College or University will clearly communicate to prospective
students, including students with prior college experience who
have not completed a postsecondary degree or credential, their
families, and the general public--
``(A) plans to implement the program funded under
this subpart; and
``(B) how eligible students can attend a community
college operated or controlled by the State or an
eligible Tribal College or University without paying
tuition and fees.
``SEC. 788. PROGRAM REQUIREMENTS.
``(a) General Requirements.--As a condition of receiving a grant
under this subpart in each award year, a State or eligible Tribal
College or University shall--
``(1) ensure that the total amount of tuition and fees
charged to an eligible student attending a community college
operated or controlled by the State or the eligible Tribal
College or University, as applicable, is $0;
``(2) not apply financial assistance for which an eligible
student qualifies to tuition or fees; and
``(3) not use any funds provided under this subpart for
administrative purposes relating to such grant.
``(b) State Requirements.--In addition to the requirements under
subsection (a), as a condition of receiving a grant under this subpart
a State shall meet the following requirements:
``(1) Alignment of secondary and higher education.--The
State shall--
``(A) submit and implement a plan to align the
requirements for receiving a regular high school
diploma from public schools in the State with the
requirements for entering credit-bearing coursework at
community colleges in such State; and
``(B) not later than 3 years after the date on
which the State first receives a grant under this
subpart, certify to the Secretary that such alignment
has been achieved.
``(2) Transfer pathways.--The State shall--
``(A) submit a plan, developed in collaboration
with faculty from institutions of higher education in
the State, to improve transfer pathways among
institutions of higher education in the State,
including by--
``(i) ensuring that associate degrees
awarded by community colleges in the State are
fully transferable to, and credited as, the
first 2 years of related baccalaureate programs
at public institutions of higher education in
such State;
``(ii) increasing the transferability of
individual courses within the certificate or
associate programs offered by community
colleges in the State to related baccalaureate
programs offered by institutions of higher
education in such State to maximize the
transferability of credits for students who
transfer before completing an associate degree;
``(iii) expanding the use of reverse
transfer policies that allow institutions to--
``(I) implement the process of
retroactively granting a certificate or
associate degree to students who had
not completed the requirements for such
certificate or degree before they
transferred; and
``(II) allow academic credits for
coursework completed at a 4-year
institution to be applied to a
previously-attended community college
for the purpose of obtaining an
associate degree or a certificate; and
``(iv) ensuring that students attending
community colleges in the State have access to
comprehensive counseling and supports to
facilitate the process of transferring to a 4-
year institution of higher education; and
``(B) not later than 3 years after the date on
which the State first receives a grant under this
subpart, certify to the Secretary that the State is
carrying out the plan submitted in accordance with
subparagraph (A) and is meeting the requirements of
clauses (i) through (iv) of such subparagraph.
``(c) State Maintenance of Effort.--A State receiving a grant under
this subpart shall be entitled to receive its full allotment of funds
under this subpart for a fiscal year only if, for each year of the
grant, the State provides--
``(1) State fiscal support for higher education per full-
time equivalent student at a level equal to or exceeding the
average amount of State fiscal support for higher education per
full-time equivalent student provided for the 3 consecutive
preceding fiscal years;
``(2) financial support for operating expenses (excluding
capital expenses and research and development costs) for public
4-year institutions of higher education at a level equal to or
exceeding the average amount provided for the 3 consecutive
preceding State fiscal years; and
``(3) financial support for need-based financial aid at a
level equal to or exceeding the average amount provided for the
3 consecutive preceding State fiscal years.
``(d) No Additional Eligibility Requirements.--A State or eligible
Tribal College or University that receives a grant under this subpart
may not impose additional eligibility requirements on eligible students
other than the requirements under this subpart.
``(e) Eligibility for Benefits.--No individual shall be determined
to be ineligible to receive benefits provided under this subpart
(including tuition and fees set to $0 and other aid provided under this
subpart) on the basis of citizenship, alienage, or immigration status.
``SEC. 789. ALLOWABLE USES OF FUNDS.
``(a) In General.--Except as provided in subsection (b)--
``(1) a State shall use a grant under this subpart only to
provide funds to each community college operated or controlled
by the State to enable each such community college to set
community college tuition and fees for eligible students to $0
as required under section 788(a); and
``(2) an eligible Tribal College or University shall use a
grant under this subpart only to set community college tuition
and fees for eligible students to $0 as required under section
788(a).
``(b) Additional Uses.--If a State or an eligible Tribal College or
University demonstrates to the Secretary that the State or eligible
Tribal College or University has grant funds remaining after meeting
the demand for activities described in subsection (a), the State or
eligible Tribal College or University shall use the remaining funds to
carry out 1 or more of the following:
``(1) Providing need-based financial aid to students that
may be used by such students to pay any component of cost of
attendance, as defined under section 472.
``(2) Reducing unmet need at public 4-year institutions of
higher education.
``(3) Improving student outcomes by implementing evidence-
based institutional reforms or practices, including reforms or
practices that are described in section 795D(b)(1) or that meet
an evidence tier defined in section 795E(2).
``(4) Expanding access to dual or concurrent enrollment
programs or early college high school programs.
``(c) Supplement, Not Supplant.--Except as provided in section
786(b)(2)(A), funds made available under this subpart shall be used to
supplement, and not supplant, other Federal, State, tribal, and local
funds that would otherwise be expended to carry out activities
described in this section.
``(d) Continuation of Funding.--
``(1) In general.--Except as provided in paragraph (2), a
State or an eligible Tribal College or University receiving a
grant under this subpart for an award year may continue to
receive funding under this subpart for subsequent award years
conditioned on the availability of budget authority and on
meeting the requirements of the grant, as determined by the
Secretary.
``(2) Discontinuation.--The Secretary shall discontinue or
reduce funding of the Federal share of a grant under this
subpart if the State or an eligible Tribal College or
University has violated the terms of the grant.
``(e) Rule of Construction Regarding BIE Funds.--Nothing in this
subpart shall be construed to impact the availability of funds from, or
uses of funds provided by, the Bureau of Indian Education for Tribal
Colleges and Universities.
``SEC. 790. AUTOMATIC STABILIZERS FOR AMERICA'S COLLEGE PROMISE.
``(a) Maintenance of Effort Relief.--A State that meets the
qualifying spending requirement may request a waiver of the
requirements under section 788(c). Upon request by such a State, the
Secretary shall waive the requirements of section 788(c) for the State
as follows:
``(1) Tier i.--With respect to each State eligible for
relief under tier I, such requirements shall be waived for the
fiscal year succeeding the fiscal year for which the
determination of the State's eligibility for such relief is
made.
``(2) Tiers ii through v.--With respect to each State
eligible for relief under tier II, III, IV, or V, such
requirements shall be waived, in accordance with subsection
(d), for--
``(A) the fiscal year for which the determination
of the State's eligibility for such relief is made;
``(B) the fiscal year succeeding the fiscal year
described in subparagraph (A); or
``(C) both such fiscal years.
``(b) State Share Relief.--
``(1) State share relief.--A State that meets the
qualifying spending requirement and is eligible for relief
under tier II, III, IV, or V may request relief with respect to
the requirements of section 786(b)(1)(B). Upon request by such
a State, the Secretary shall provide relief from the
requirements of section 786(b)(1)(B), for the applicable award
year or years, for the State as follows:
``(A) Tier ii.--With respect to a State that is
eligible for relief under tier II, the Secretary
shall--
``(i) apply section 786(a)(1)(B)(v) by
substituting `85 percent' for `80 percent'; and
``(ii) apply section 786(b)(1)(B)(v) by
substituting `15 percent' for `20 percent'.
``(B) Tier iii.--With respect to a State that is
eligible for relief under tier III, the Secretary
shall--
``(i) apply section 786(a)(1)(B)(iv) by
substituting `90 percent' for `85 percent';
``(ii) apply section 786(a)(1)(B)(v) by
substituting `90 percent' for `80 percent';
``(iii) apply section 786(b)(1)(B)(iv) by
substituting `10 percent' for `15 percent'; and
``(iv) apply section 786(b)(1)(B)(v) by
substituting `10 percent' for `20 percent'.
``(C) Tier iv.--With respect to a State that is
eligible for relief under tier IV, the Secretary
shall--
``(i) apply section 786(a)(1)(B)(iii) by
substituting `95 percent' for `90 percent';
``(ii) apply section 786(a)(1)(B)(iv) by
substituting `95 percent' for `85 percent';
``(iii) apply section 786(a)(1)(B)(v) by
substituting `95 percent' for `80 percent';
``(iv) apply section 786(b)(1)(B)(iii) by
substituting `5 percent' for `10 percent';
``(v) apply section 786(b)(1)(B)(iv) by
substituting `5 percent' for '15 percent'; and
``(vi) apply section 786(b)(1)(B)(v) by
substituting `5 percent' for `20 percent'.
``(D) Tier v.--With respect to a State that is
eligible for relief under tier V, the Secretary shall--
``(i) apply section 786(a)(1)(B)(ii) by
substituting `100 percent' for `95 percent';
``(ii) apply section 786(a)(1)(B)(iii) by
substituting `100 percent' for `90 percent';
``(iii) apply section 786(a)(1)(B)(iv) by
substituting `100 percent' for `85 percent';
``(iv) apply section 786(a)(1)(B)(v) by
substituting `100 percent' for `80 percent';
``(v) apply section 786(b)(1)(B)(ii) by
substituting `0 percent' for `5 percent';
``(vi) apply section 786(b)(1)(B)(iii) by
substituting `0 percent' for `10 percent';
``(vii) apply section 786(b)(1)(B)(iv) by
substituting `0 percent' for '15 percent'; and
``(viii) apply section 786(b)(1)(B)(v) by
substituting `0 percent' for `20 percent'.
``(2) Applicable award years.--With respect to each State
eligible for relief under tier II, III, IV, or V, the Secretary
shall provide the relief under paragraph (1), in accordance
with subsection (d), for--
``(A) the award year for which the determination of
the State's eligibility for such relief is made;
``(B) the award year succeeding the award year
described in subparagraph (A); or
``(C) both such award years.
``(c) State Eligibility.--A State's eligibility for relief under
this section shall be determined as follows:
``(1) Tier i.--A State shall be eligible for relief under
tier I for a fiscal year for which--
``(A) the State is in an elevated unemployment
period at any point in the fiscal year; and
``(B) the State is not eligible for relief under
any other tier.
``(2) Tier ii.--A State shall be eligible for relief under
tier II for a fiscal or award year, as applicable, for which--
``(A)(i) the State average unemployment rate is
equal to or greater than 6.5 percent but less than 7.5
percent at any point in the fiscal or award year; or
``(ii) the national average unemployment rate is
equal to or greater than 6.5 percent but less than 7.5
percent at any point in the fiscal or award year; and
``(B) the State is not eligible for relief under
tier III, IV, or V.
``(3) Tier iii.--A State shall be eligible for relief under
tier III for a fiscal or award year, as applicable, for which--
``(A)(i) the State average unemployment rate is
equal to or greater than 7.5 percent but less than 8.5
percent at any point in the fiscal or award year; or
``(ii) the national average unemployment rate is
equal to or greater than 7.5 percent but less than 8.5
percent at any point in the fiscal or award year; and
``(B) the State is not eligible for relief under
tier IV or V.
``(4) Tier iv.--A State shall be eligible for relief under
tier IV for a fiscal or award year, as applicable, for which--
``(A)(i) the State average unemployment rate is
equal to or greater than 8.5 percent but less than 9.5
percent at any point in the fiscal or award year; or
``(ii) the national average unemployment rate is
equal to or greater than 8.5 percent but less than 9.5
percent at any point in the fiscal or award year; and
``(B) the State is not eligible for relief under
tier V.
``(5) Tier v.--A State shall be eligible for relief under
tier V for a fiscal or award year, as applicable, for which--
``(A) the State average unemployment rate is equal
to or greater than 9.5 percent at any point in the
fiscal or award year; or
``(B) the national average unemployment rate is
equal to or greater than 9.5 percent at any point in
the fiscal or award year.
``(d) Discretion in the Provision of Relief.--In determining the
fiscal years for which to provide relief in accordance with subsection
(a)(2), or the award years for which to provide relief in accordance
with subsection (b), to a State that is eligible under tier II, III,
IV, or V, the Secretary shall take into account the following:
``(1) In the case of a State that requests relief under
subsection (a)(2), the fiscal years for which the State
requests such relief, including--
``(A) if the State requests such relief for the
fiscal year for which the determination of the State's
eligibility for such relief is made, the amount by
which the State is unable to meet the requirements of
section 788(c) for such fiscal year; and
``(B) if the State requests such relief for the
fiscal year succeeding the year described in
subparagraph (A), the amount by which the State
anticipates being unable to meet such requirements for
such succeeding fiscal year.
``(2) In the case of a State that requests relief under
subsection (b), the award years for which the State requests
such relief, including--
``(A) if the State requests such relief for the
award year for which the determination of the State's
eligibility for such relief is made, the extent to
which the State is unable to meet the requirements of
section 786(b)(1)(B) for such award year; and
``(B) if the State requests such relief for the
award year succeeding the year described in
subparagraph (A), the extent to which the State
anticipates being unable to meet such requirements for
such succeeding award year.
``(3) The actual or anticipated timing, severity, and
duration of the unemployment rate increase during--
``(A) the fiscal or award year, as applicable, for
which the determination of the State's eligibility for
such relief is made;
``(B) the fiscal or award year, as applicable,
succeeding the fiscal or award year described in
subparagraph (A); and
``(C) the fiscal or award year, as applicable,
preceding the fiscal or award year described in
subparagraph (A).
``(4) Other factors determined to be relevant by the
Secretary.
``(e) Continued Payment to Employees.--A State that receives relief
under subsection (a) or (b) shall, to the greatest extent practicable,
continue to pay its employees of, and contractors with, public
institutions of higher education in the State during the period in
which the State is receiving such relief.
``(f) Definitions.--In this section:
``(1) Elevated unemployment period.--The term `elevated
unemployment period'--
``(A) when used with respect to the Nation as a
whole, means a consecutive, 3-month period in a fiscal
year for which the national average unemployment rate
is not less than 0.5 percentage points above the lowest
national average unemployment rate for the 12-month
period preceding such 3-month period; and
``(B) when used with respect to a State, means a
consecutive, 3-month period in a fiscal year in which
the State average unemployment rate is not less than
0.5 percentage points above the lowest State average
unemployment rate for such State for the 12-month
period preceding such 3-month period.
``(2) Qualifying spending requirement.--The term
`qualifying spending requirement', when used with respect to
determining whether a State has met such requirement, means the
State has not disproportionately decreased spending for any of
the categories described in paragraphs (1) through (3) of
section 788(c) relative to such State's overall decrease in
spending averaged over the 3 consecutive preceding fiscal
years.
``(3) National average unemployment rate.--The term
`national average unemployment rate' means the average
(seasonally adjusted) rate of total unemployment in all States
for a consecutive, 3-month period in a fiscal year, based on
data from the Bureau of Labor Statistics of the Department of
Labor.
``(4) State average unemployment rate.--The term `State
average unemployment rate' means the average (seasonally
adjusted) rate of total unemployment in a State for a
consecutive, 3-month period in a fiscal year, based on data
from the Bureau of Labor Statistics of the Department of Labor.
``SEC. 791. DEFINITIONS.
``In this subpart:
``(1) Career pathway.--The term `career pathway' has the
meaning given the term in section 3 of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3102).
``(2) Community college.--The term `community college'
means--
``(A) a degree-granting public institution of
higher education at which--
``(i) the highest degree awarded is an
associate degree; or
``(ii) an associate degree is the
predominant degree awarded;
``(B) an eligible Tribal College or University;
``(C) a degree-granting branch campus of a 4-year
public institution of higher education, if, at such
branch campus--
``(i) the highest degree awarded is an
associate degree; or
``(ii) an associate degree is the
predominant degree awarded; or
``(D) at the designation of the Secretary, in the
case of a State that does not operate or control any
institution that meets a definition under subparagraph
(A) or (C), a college or similarly defined and
structured academic entity--
``(i) that was in existence on July 1,
2021;
``(ii) within a 4-year public institution
of higher education; and
``(iii) at which--
``(I) the highest degree awarded is
an associate degree; or
``(II) an associate degree is the
predominant degree awarded.
``(3) Dual or concurrent enrollment program.--The term
`dual or concurrent enrollment program' has the meaning given
the term in section 8101 of the Elementary and Secondary
Education Act of 1965.
``(4) Early college high school.--The term `early college
high school' has the meaning given the term in section 8101 of
the Elementary and Secondary Education Act of 1965.
``(5) Eligible student.--The term `eligible student' means
a student who--
``(A) is enrolled as an undergraduate student in an
eligible program (as defined in section 481(b)) at a
community college on not less than a half-time basis;
``(B) in the case of a student who is enrolled in a
community college that charges different tuition rates
on the basis of in-State or in-district residency,
either--
``(i) qualifies for in-State or in-district
resident tuition at such community college; or
``(ii) would qualify for such in-State or
in-district resident tuition at such community
college, but for the immigration status of such
student;
``(C) has not been enrolled (whether full-time or
less than full-time) for more than 6 semesters (or the
equivalent) for which the community college tuition and
fees of the student were set to $0 pursuant to section
788(a);
``(D) is not enrolled in a dual or concurrent
enrollment program or early college high school; and
``(E) in the case of a student who is a United
States citizen, has filed a Free Application for
Federal Student Aid described in section 483 for the
applicable award year for which the student is
enrolled.
``(6) Eligible tribal college or university.--The term
`eligible Tribal College or University' means--
``(A) a 2-year Tribal College or University; or
``(B) a degree-granting Tribal College or
University--
``(i) at which the highest degree awarded
is an associate degree; or
``(ii) an associate degree is the
predominant degree awarded.
``(7) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 101.
``(8) Means-tested federal benefit program.--The term
`means-tested Federal benefit program' has the meaning given
the term in section 479.
``(9) Recognized postsecondary credential.--The term
`recognized postsecondary credential' has the meaning given the
term in section 3 of the Workforce Innovation and Opportunity
Act (29 U.S.C. 3102).
``(10) State fiscal support for higher education.--
``(A) Inclusions.--
``(i) In general.--Except as provided in
subparagraph (B), the term `State fiscal
support for higher education', used with
respect to a State for a fiscal year, means an
amount that is equal to--
``(I) the gross amount of
applicable State funds appropriated or
dedicated, and expended by the State,
including funds from lottery receipts,
in the fiscal year, that are used to
support institutions of higher
education and student financial aid for
higher education in the State; and
``(II) any funds described in
clause (ii), if applicable.
``(ii) Local funds.--In the case of a State
that includes, as part of the State share under
section 786(b)(2)(B) for an award year, funds
provided to community colleges by local
governments in such State for the purpose of
carrying out this subpart, local funds provided
to community colleges operated or controlled by
such State for operating expenses (excluding
capital expenses and research and development
costs) shall be included in the calculation of
the State fiscal support for higher education
for such award year under clause (i).
``(B) Exclusions.--State fiscal support for higher
education for a State for a fiscal year shall not
include--
``(i) funds described in subparagraph (A)
that are returned to the State;
``(ii) State-appropriated funds derived
from Federal sources, including funds provided
under section 786(a) and section 795A(a)(2);
``(iii) funds that are included in the
State share under section 786(b), including
funds included in the State share in accordance
with paragraph (2)(A) of such section;
``(iv) amounts that are portions of
multiyear appropriations to be distributed over
multiple years that are not to be spent for the
year for which the calculation under this
paragraph is being made, subject to
subparagraph (C);
``(v) tuition, fees, or other educational
charges paid directly by a student to a public
institution of higher education or to the
State;
``(vi) funds for--
``(I) financial aid to students
attending, or operating expenses of--
``(aa) out-of-State
institutions of higher
education;
``(bb) proprietary
institutions of higher
education (as defined in
section 102(b));
``(cc) institutions of
higher education not accredited
by an agency or association
recognized by the Secretary
pursuant to section 496;
``(II) financial aid to students
awarded predominantly on the basis of
merit, including programs awarded on
the basis of predicted or actual
academic performance or assessments;
``(III) research and development;
or
``(IV) hospitals, athletics, or
other auxiliary enterprises;
``(vii) corporate or other private
donations directed to one or more institutions
of higher education permitted to be expended by
the State; or
``(viii) any other funds that the Secretary
determines shall not be included in the
calculation of State fiscal support for higher
education for such State.
``(C) Adjustments for biennial appropriations.--The
Secretary shall take into consideration any adjustments
to the calculations under this paragraph that may be
required to accurately reflect State fiscal support for
higher education in States with biennial appropriation
cycles.
``(11) State fiscal support for higher education per full-
time equivalent student.--The term `State fiscal support for
higher education per full-time equivalent student', when used
with respect to a State for a fiscal year, means the amount
that is equal to--
``(A) the State fiscal support for higher education
for the previous fiscal year; divided by
``(B) the number of full-time equivalent students
enrolled in public institutions of higher education in
such State for such previous fiscal year.
``(12) Tribal college or university.--The term `Tribal
College or University' has the meaning given such term in
section 316(b)(3).
``SEC. 792. SUNSET.
``(a) In General.--The authority to make grants under this subpart
shall expire at the end of award year 2027-2028.
``(b) Inapplicability of GEPA Contingent Extension of Programs.--
Section 422 of the General Education Provisions Act (20 U.S.C. 1226a)
shall not apply to this subpart.
``SEC. 793. APPROPRIATION.
``In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, such sums as may be necessary, to remain available until
September 30, 2030, for carrying out this subpart.''.
SEC. 20022. RETENTION AND COMPLETION GRANTS.
Part F of title VII of the Higher Education Act of 1965 (20 U.S.C.
1133 et seq.), as added by section 20021, is further amended by adding
at the end the following:
``Subpart 2--Retention and Completion Grants
``SEC. 795. RETENTION AND COMPLETION GRANTS.
``Beginning with award year 2023-2024, from amounts appropriated to
carry out this subpart for any fiscal year, the Secretary shall carry
out a grant program to make grants (which shall be known as `retention
and completion grants') to eligible States and Tribal Colleges and
Universities to enable the eligible States and Tribal Colleges and
Universities to carry out the activities described in section 795D.
``SEC. 795A. GRANT AMOUNTS.
``(a) Reservation.--From the amounts appropriated to carry out this
subpart, the Secretary shall--
``(1) reserve an amount equal to 3 percent of such amounts
to allocate grants to Tribal Colleges and Universities, which
shall be distributed according to the formula in section
316(d)(3)(B), to carry out the activities described in section
795D(b)(1) and implement reforms or practices that meet an
evidence tier defined in section 795E(2); and
``(2) use the amount remaining after the allocation under
paragraph (1) to award competitive grants to eligible States
that have submitted applications under section 795B.
``(b) Supplement, Not Supplant.--Grant funds awarded under this
subpart shall be used to supplement, and not supplant, other Federal,
State, tribal, and local funds that would otherwise be expended to
carry out activities assisted under this subpart.
``(c) Grant Period.--Subject to the requirements under section
795C, a grant under this subpart shall be for a period of not more than
7 years.
``SEC. 795B. APPLICATIONS.
``(a) In General.--As a condition of receiving a grant under this
subpart, an eligible State shall submit an application to the Secretary
that includes--
``(1) a description of--
``(A) how the eligible State will use the funds to
implement evidence-based institutional reforms or
practices at institutions of higher education in such
State to improve student outcomes and meet the
requirements of section 795D(b)(2), including--
``(i) how such eligible State will use
grant funds to implement 1 or more reforms or
practices described in section 795D(b)(1) at
such institutions;
``(ii) the extent to which each reform or
practice to be implemented meets an evidence
tier defined in section 795E(2); and
``(iii) annual implementation benchmarks
that the eligible State will use to track
progress in implementing such reforms or
practices;
``(B) how such eligible State will increase support
for the public institutions of higher education
identified in accordance with paragraph (2)(B); and
``(C) the improvements the eligible State
anticipates in student outcomes, including improvements
in retention, completion, or transfer rates or labor
market outcomes, or a combination of such student
outcomes, disaggregated by student demographics
including, at a minimum, race, ethnicity, income,
disability status, remediation, and status as a first
generation college student;
``(2)(A) with respect to each State public institution of
higher education--
``(i) the total per-student funding;
``(ii) the amount of per-student funding that is
from State-appropriated funds; and
``(iii) the share of students at the institution
who are students of color, low-income students,
students with disabilities, students in need of
remediation, or first generation college students; and
``(B) an identification of public institutions of
higher education in the eligible State that received
less funding on a per-student basis as described in
clause (i) or (ii), or both, of subparagraph (A), and
are serving disproportionately high shares of students
of color, low-income students, students with
disabilities, students in need of remediation, or first
generation college students;
``(3) a description of the steps the eligible State will
take to ensure the sustainability of the institutional reforms
or practices identified in paragraph (1)(A); and
``(4) a description of how the eligible State will evaluate
the effectiveness of activities funded under this subpart,
including how such eligible State will assess impacts on
student outcomes, including retention, transfer, and completion
rates and labor market outcomes.
``(b) Priorities.--In awarding funds under this subpart, the
Secretary shall give priority to eligible States that do one or more of
the following:
``(1) Propose to use a significant share of grant funds for
reforms or practices that meet an evidence tier defined in
section 795E(2).
``(2) Propose to use a significant share of grant funds to
improve retention, transfer, and completion rates and labor
market outcomes among students of color, low-income students,
students with disabilities, students in need of remediation,
first generation college students, and other underserved
student populations in such State.
``(3) Propose to use a significant share of grant funds to
improve retention, transfer, and completion rates and labor
market outcomes among students attending institutions
identified in subsection (a)(2)(B).
``(4) Demonstrate a commitment to supporting activities
funded under this subpart with non-Federal funds.
``SEC. 795C. PROGRAM REQUIREMENTS.
``(a) In General.--As a condition of continuing to receive funds
under this subpart, for each year in which an eligible State
participates in the program under this subpart, the eligible State
shall submit to the Secretary the eligible State's progress--
``(1) in meeting the annual implementation benchmarks
included in the application of such eligible State under
section 795B(a)(1)(A)(iii);
``(2) in increasing funding for the public institutions of
higher education identified in accordance with section
795B(a)(2)(B), as included in the application of such eligible
State under section 795B(a)(1)(B); and
``(3) in improving the student outcomes identified by the
State under section 795B(a)(1)(C).
``(b) Eligibility for Benefits.--No individual shall be determined
to be ineligible to receive benefits provided under this subpart
(including services and other aid provided under this subpart) on the
basis of citizenship, alienage, or immigration status.
``SEC. 795D. USES OF FUNDS.
``(a) General Requirement for States.--Except as provided in
subsection (c), an eligible State shall use a grant under this subpart
only to carry out activities described in the application for such year
under section 795B(a)(1).
``(b) Evidence-based Institutional Reforms or Practices.--
``(1) In general.--An eligible State or Tribal College or
University receiving a grant under this subpart shall, directly
or in collaboration with institutions of higher education and
other non-profit organizations, use the grant funds to
implement one or more of the following evidence-based
institutional reforms or practices:
``(A) Providing comprehensive academic, career, and
student support services, including mentoring,
advising, case management services, or career pathway
navigation.
``(B) Providing assistance in applying for and
accessing direct support services, means-tested Federal
benefit programs, or similar State, tribal, or local
benefit programs.
``(C) Providing emergency financial aid grants to
students for unexpected expenses and to meet basic
needs.
``(D) Providing accelerated learning opportunities,
including dual or concurrent enrollment programs and
early college high school programs, and pathways to
graduate and professional degree programs, and
reforming course scheduling and credit awarding
policies.
``(E) Reforming remedial and developmental
education.
``(F) Utilizing career pathways, including through
building capacity for career and technical education as
defined in section 3 of the Carl D. Perkins Career and
Technical Education Act of 2006 (20 U.S.C. 2302),
programs of study as defined in such section, or degree
pathways.
``(G) Improving transfer pathways between community
colleges and four-year institutions of higher education
in the eligible State, or, in the case of a Tribal
College or University, between the Tribal College or
University and other institutions of higher education.
``(2) State allocation minimums with respect to evidence
tiers.--An eligible State receiving a grant under this subpart
shall use not less than 30 percent of the grant funds for
evidence-based reforms or practices that meet an evidence tier
defined in section 795E(2), of which at least two-thirds shall
be used for evidence-based reforms or practices that meet
evidence tier 1.
``(c) Use of Funds for Administrative Purposes.--An eligible State
or Tribal College or University that receives a grant under this
subpart may use--
``(1) not more than 3 percent of such grant for
administrative purposes relating to the grant under this
subpart; and
``(2) not more than 3 percent of such grant to evaluate the
effectiveness of activities carried out under this subpart.
``SEC. 795E. DEFINITIONS.
``In this subpart:
``(1) Eligible state.--The term `eligible State' means a
State that is a recipient of a grant under subpart 1.
``(2) Evidence tiers.--
``(A) Evidence tier 1.--The term `evidence tier 1',
when used with respect to a reform or practice, means a
reform or practice that meets the criteria for
receiving an expansion grant from the education
innovation and research program under section 4611 of
the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7261), as determined by the Secretary in
accordance with such section.
``(B) Evidence tier 2.--The term `evidence tier 2',
when used with respect to a reform or practice, means a
reform that meets the criteria for receiving a mid-
phase grant from the education innovation and research
program under section 4611 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7261), as
determined by the Secretary in accordance with such
section.
``(3) First generation college student.--The term `first
generation college student' has the meaning given the term in
section 402A(h).
``(4) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 101.
``(5) Tribal college or university.--The term `Tribal
College or University' has the meaning given the term in
section 316(b)(3).
``SEC. 795F. SUNSET.
``(a) In General.--The authority to make grants under this subpart
shall expire at the end of award year 2029-2030.
``(b) Inapplicability of GEPA Contingent Extension of Programs.--
Section 422 of the General Education Provisions Act (20 U.S.C. 1226a)
shall not apply to this subpart.
``SEC. 795G. APPROPRIATION.
``In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $9,000,000,000, to remain available until September 30,
2030, for carrying out this subpart.''.
SEC. 20023. TUITION ASSISTANCE FOR STUDENTS AT HISTORICALLY BLACK
COLLEGES AND UNIVERSITIES, TRIBAL COLLEGES AND
UNIVERSITIES, AND MINORITY-SERVING INSTITUTIONS.
Part F of title VII of the Higher Education Act of 1965 (20 U.S.C.
1133 et seq.), as added and amended by this Act, is further amended by
adding at the end the following:
``Subpart 3--Tuition Assistance for Students at Historically Black
Colleges and Universities, Tribal Colleges and Universities, and
Minority-serving Institutions
``SEC. 796. TUITION ASSISTANCE FOR HISTORICALLY BLACK COLLEGES AND
UNIVERSITIES.
``Beginning with award year 2023-2024, from amounts appropriated to
carry out this subpart for any fiscal year, the Secretary shall award
grants to participating historically Black colleges and universities
that are eligible institutions.
``SEC. 796A. TUITION ASSISTANCE FOR TRIBAL COLLEGES AND UNIVERSITIES.
``Beginning with award year 2023-2024, from amounts appropriated to
carry out this subpart for any fiscal year, the Secretary shall award
grants to participating Tribal Colleges and Universities that are
eligible institutions.
``SEC. 796B. TUITION ASSISTANCE FOR ALASKA NATIVE-SERVING INSTITUTIONS,
ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC ISLANDER-
SERVING INSTITUTIONS, HISPANIC-SERVING INSTITUTIONS,
NATIVE AMERICAN-SERVING NONTRIBAL INSTITUTIONS, NATIVE
HAWAIIAN-SERVING INSTITUTIONS, AND PREDOMINANTLY BLACK
INSTITUTIONS.
``(a) In General.--Beginning with award year 2023-2024, from
amounts appropriated to carry out this subpart for any fiscal year, the
Secretary shall award grants to participating Alaska Native-serving
institutions, Asian American and Native American Pacific Islander-
serving institutions, Hispanic-serving institutions, Native American-
serving nontribal institutions, Native Hawaiian-serving institutions,
and Predominantly Black institutions that are eligible institutions.
``(b) Status of Institution.--An institution's status as an
eligible institution described in subsection (a) shall--
``(1) be based on the most recent data available; and
``(2) be reviewed annually to ensure that the institution
continues to meet the requirements for status as an institution
described in subsection (a).
``SEC. 796C. GRANT TERMS.
``(a) Grant Amount.--
``(1) In general.--For each year for which an eligible
institution participates in the grant program under this
subpart, such eligible institution shall receive a grant in an
amount equal to the product of--
``(A) the number of eligible students enrolled at
the institution for such year; and
``(B)(i) for the 2023-2024 award year, the median
resident community college tuition and fees per student
in all States, not weighted for enrollment, for the
most recent award year for which data are available;
and
``(ii) for the 2024-2025 award year and each
subsequent award year, the amount determined under this
subparagraph for the preceding award year, increased by
the lesser of--
``(I) a percentage equal to the estimated
percentage increase in the Consumer Price Index
(as determined by the Secretary) since the date
of such determination; or
``(II) 3 percent.
``(2) First-year tuition and fees.--As a condition of
receiving a grant under this subpart, an eligible institution
shall not increase tuition and fees during the first year of
participation in the grant program under this subpart at a rate
greater than the average annual increase at the eligible
institution in the previous 5 years.
``(3) Students enrolled less than full-time.--The Secretary
shall develop and implement a formula for making adjustments to
grant amounts under this subpart based on the number of
eligible students at each eligible institution enrolled less
than full-time and the associated tuition and fees charged to
such students in proportion to the degree to which each such
student is not attending on a full-time basis.
``(4) Data adjustments.--
``(A) In general.--The Secretary shall establish a
process through which each eligible institution that
participates in the program under this section--
``(i) provides the necessary eligible
student enrollment data at the start of the
award year; and
``(ii) initially receives grant funds, as
calculated under this subsection, based on such
data.
``(B) Adjustment of grant amount.--For each year
for which an eligible institution receives a grant
under this subpart, the Secretary shall, once final
enrollment data for such year are available--
``(i) in consultation with the eligible
institution concerned, determine the actual
number of eligible students for the year
covered by the grant; and
``(ii) adjust the grant amount received by
the eligible institution to reflect the actual
number of eligible students, which may include
applying the relevant adjustment to such grant
amount in the subsequent award year.
``(b) Duplicate Grants Prohibited.--An institution shall not
receive more than one grant at a time under this subpart.
``(c) Application.--An eligible institution that desires a grant
under this subpart shall submit an application to the Secretary that
includes--
``(1) an assurance that the institution commits to
maintaining, expanding, or adopting and implementing evidence-
based institutional reforms or practices to improve student
outcomes, which shall include one or more of the practices
described in section 795D(b)(1); and
``(2) in the case of an eligible institution that enrolls
students who transfer from another institution, an assurance
that the institution--
``(A) commits to increasing the transferability of
individual courses within certificate or associate
programs offered by community colleges in the State to
related baccalaureate programs offered by such
institution to maximize the transferability of credits
for students who transfer before completing an
associate degree;
``(B) will ensure that students attending community
colleges in the State have access to comprehensive
counseling and other easily accessible tools regarding
the process for transferring to such institution; and
``(C) has a formal, statewide articulation
agreement with community colleges in the State in which
such institution operates that, at a minimum, ensures
that associate degrees awarded by community colleges in
the State are fully transferable to, and credited as,
the first 2 years of related baccalaureate programs at
such institution.
``(d) Use of Funds.--
``(1) Required use.--Funds awarded under this subpart to a
participating eligible institution shall be used to reduce
tuition and fees for eligible students by an amount that is not
less than the minimum per-student amount described in paragraph
(2), unless the actual cost of tuition and fees at such
institution is not more than such per-student amount, in which
case such institution shall use such funds to waive all such
tuition and fees charged to such students and use any remaining
funds in accordance with paragraph (3).
``(2) Minimum per-student amount.--The minimum per-student
amount described in this paragraph shall be equal to--
``(A) for the 2023-2024 award year, the median
resident community college tuition and fees per student
in all States, not weighted for enrollment, for the
most recent award year for which data are available;
and
``(B) for the 2024-2025 award year and each
subsequent award year, the amount determined under this
paragraph for the preceding award year, increased by
the lesser of--
``(i) a percentage equal to the estimated
percentage increase in the Consumer Price Index
(as determined by the Secretary) since the date
of such determination; or
``(ii) 3 percent.
``(3) Additional uses.--A participating eligible
institution shall use any grant funds remaining after meeting
the requirements of paragraph (1) to provide financial aid to
eligible students that may be used by such students to pay for
any component of cost of attendance other than tuition and
fees, which may include emergency financial aid grants.
``(e) Supplement, Not Supplant.--Funds made available to carry out
this subpart shall be used to supplement, and not supplant, other
Federal, State, tribal, and local funds that would otherwise be
expended to carry out activities under this subpart.
``(f) Sixty Credits.--Funds under this subpart may only be used to
waive or reduce tuition and fees for the first 60 credits for which an
eligible student is enrolled in the participating eligible institution
except that, when calculating the number of credits in which the
student has been enrolled for the purpose of carrying out this
subpart--
``(1) no student shall be considered to have been enrolled
for more than 12 credits per semester (or the equivalent)
during the period for which the student is receiving benefits
under this subpart; and
``(2) the participating eligible institution may exclude
any credits that a student enrolled in and did not complete at
such institution if the institution determines that such
exclusion would be in the best interest of the student, except
that an institution may exclude no more than 15 credits under
this paragraph for each individual student.
``(g) Eligibility for Benefits.--No individual shall be determined
to be ineligible to receive benefits provided under this subpart
(including reduction of tuition and fees and other aid provided under
this subpart) on the basis of citizenship, alienage, or immigration
status.
``SEC. 796D. DEFINITIONS.
``In this subpart:
``(1) Alaska native-serving institution.--The term `Alaska
Native-serving institution' has the meaning given such term in
section 317(b).
``(2) Asian american and native american pacific islander-
serving institution.--The term `Asian American and Native
American Pacific Islander-serving institution' has the meaning
given such term in section 371(c).
``(3) Cost of attendance.--The term `cost of attendance'
has the meaning given such term in section 472.
``(4) Eligible institution.--
``(A) In general.--The term `eligible institution'
means a public or nonprofit 4-year institution of
higher education that has an undergraduate student body
of which not less than 35 percent are low-income
students.
``(B) Continuing eligibility.--The Secretary's
determination of whether an institution meets the
requirement under subparagraph (A) shall be based on
the most recent data available, and shall be reviewed
annually to ensure that the institution continues to
meet the requirements for participation.
``(5) Eligible student.--
``(A) In general.--The term `eligible student'
means a student, regardless of age, who--
``(i) is enrolled as an undergraduate
student in an eligible program (as defined in
section 481(b)) at a participating eligible
institution, on at least a half-time basis;
``(ii) is a low-income student;
``(iii) has been enrolled at such
participating eligible institution under this
subpart for not more than 60 credits, subject
to section 796C(f);
``(iv) has not been enrolled (whether full-
time or less than full-time) for more than 6
semesters (or the equivalent) for which the
student received a benefit under this subpart;
``(v) is not enrolled in a dual or
concurrent enrollment program or early college
high school;
``(vi) has not completed an undergraduate
baccalaureate course of study; and
``(vii) in the case of a student who is a
United States citizen, has filed a Free
Application for Federal Student Aid described
in section 483 for the applicable award year
for which the student is enrolled.
``(B) Continued eligibility.--In the case of an
eligible student who receives assistance under this
subpart and attends an institution that loses status as
an eligible institution or as an institution described
in section 796B(a), the student may continue to receive
such assistance for the period for which the student
would have been eligible if the institution at which
they are enrolled had retained such status.
``(6) Hispanic-serving institution.--The term `Hispanic-
serving institution' has the meaning given such term in section
502.
``(7) Historically black college or university.--The term
`historically Black college or university' means a part B
institution as defined in section 322.
``(8) Low-income student.--The term `low-income student'
means a student who meets the financial eligibility criteria
for receiving a Federal Pell Grant under section 401,
regardless of whether such student is otherwise eligible to
receive such Federal Pell Grant.
``(9) Native american-serving nontribal institution.--The
term `Native American-serving nontribal institution' has the
meaning given such term in section 319.
``(10) Native hawaiian-serving institution.--The term
`Native Hawaiian-serving institution' has the meaning given
such term in section 317(b).
``(11) Predominantly black institution.--The term
`Predominantly Black institution' has the meaning given such
term in section 371(c).
``(12) Tribal college or university.--The term `Tribal
College or University' has the meaning given such term in
section 316(b)(3).
``SEC. 796E. SUNSET.
``(a) In General.--The authority to make grants under this subpart
shall expire at the end of award year 2029-2030.
``(b) Inapplicability of GEPA Contingent Extension of Programs.--
Section 422 of the General Education Provisions Act (20 U.S.C. 1226a)
shall not apply to this subpart.
``SEC. 796F. APPROPRIATION.
``In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, such sums as may be necessary, to remain available until
September 30, 2030, for carrying out this subpart.''.
SEC. 20024. NORTHERN MARIANA ISLANDS, AMERICAN SAMOA, UNITED STATES
VIRGIN ISLANDS, AND GUAM COLLEGE ACCESS.
Part F of title VII of the Higher Education Act of 1965 (20 U.S.C.
1133 et seq.), as added and amended by this Act, is further amended by
adding at the end the following:
``SEC. 798. NORTHERN MARIANA ISLANDS, AMERICAN SAMOA, UNITED STATES
VIRGIN ISLANDS, AND GUAM COLLEGE ACCESS GRANTS.
``(a) Grants.--
``(1) Grant amounts.--
``(A) In general.--Beginning with award year 2023-
2024, from amounts appropriated to carry out this
section, the Secretary shall provide such sums as may
be necessary to the Governors of each outlying area for
such Governors to award grants to eligible institutions
that enroll eligible students to pay the difference
between the tuition and fees charged for in-State
students and the tuition and fees charged for out-of-
State students on behalf of each eligible student
enrolled in the eligible institution.
``(B) Maximum student amounts.--The amount paid on
behalf of an eligible student under this section shall
be--
``(i) not more than $15,000 for any one
award year (as defined in section 481); and
``(ii) not more than $75,000 in the
aggregate.
``(C) Proration.--The Governor shall prorate
payments under this section with respect to eligible
students who attend an eligible institution on less
than a full-time basis.
``(2) Application.--Each eligible student desiring a
payment under this section shall submit an application to the
eligible institution at which such student is enrolled or plans
to enroll.
``(3) Eligibility for benefits.--No individual shall be
determined to be ineligible to receive benefits provided under
this subpart (including tuition payments and other aid provided
under this subpart) on the basis of citizenship, alienage, or
immigration status.
``(b) Administration of Program.--
``(1) In general.--Each Governor shall carry out the
program under this section in consultation with the Secretary.
Each Governor may enter into a grant, contract, or cooperative
agreement with another public or private entity to administer
the program under this section.
``(2) Memorandum of agreement.--Each Governor and the
Secretary shall enter into a memorandum of agreement that
describes--
``(A) the manner in which the Governor will consult
with the Secretary with respect to administering the
program under this section; and
``(B) any technical or other assistance to be
provided to the Governor by the Secretary for purposes
of administering the program under this section (which
may include access to the information in the Free
Application for Federal Student Aid described in
section 483).
``(3) Construction.--Nothing in this section shall be
construed to require an institution of higher education to
alter the institution's admissions policies or standards in any
manner to enable an eligible student to enroll in the
institution.
``(4) Grant authority.--The authority to make grants under
this section shall expire at the end of award year 2029-2030.
``(c) Inapplicability of GEPA Contingent Extension of Programs.--
Section 422 of the General Education Provisions Act (20 U.S.C. 1226a)
shall not apply to this section.
``(d) Definitions.--In this section:
``(1) Eligible institution.--The term `eligible
institution' means an institution that--
``(A) is a public four-year institution of higher
education located in one of the several States of the
United States, the District of Columbia, Puerto Rico,
or an outlying area;
``(B) is eligible to participate in the student
financial assistance programs under title IV; and
``(C) enters into an agreement with the Governor of
an outlying area, or with two or more of such Governors
(except that such institution may not enter into an
agreement with the Governor of the outlying area in
which such institution is located), containing such
conditions as each Governor may specify, including a
requirement that the institution use the funds made
available under this section to supplement and not
supplant assistance that otherwise would be provided to
eligible students from outlying areas.
``(2) Eligible student.--The term `eligible student' means
an individual who--
``(A) was domiciled in an outlying area for not
less than 12 consecutive months preceding the
commencement of the freshman year at an institution of
higher education;
``(B) has not completed an undergraduate
baccalaureate course of study;
``(C) begins the individual's course of study at an
eligible institution within 3 calendar years (excluding
any period of service on active duty in the Armed
Forces or service under the Peace Corps Act (22 U.S.C.
2501 et seq.) or subtitle D of title I of the National
and Community Service Act of 1990 (42 U.S.C. 12571 et
seq.)) of--
``(i) graduation from secondary school, or
obtaining the recognized equivalent of a
secondary school diploma; or
``(ii) transfer from an institution of
higher education located in an outlying area
(including transfer following the completion of
an associate degree or certificate at such
institution); and
``(D) is enrolled or accepted for enrollment, on at
least a half-time basis, in a baccalaureate degree or
other program (including a program of study abroad
approved for credit by the institution at which such
student is enrolled) leading to a recognized
educational credential at an eligible institution.
``(3) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 101.
``(4) Governor.--The term `Governor' means the Governor of
an outlying area.
``(5) Outlying area.--The term `outlying area' means the
Northern Mariana Islands, American Samoa, the United States
Virgin Islands, and Guam.
``(e) Appropriations.--In addition to amounts otherwise available,
there is appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, such sums as may be necessary, to
remain available until September 30, 2030, for carrying out this
section.''.
Subpart B--Pell Grants and Student Loans
SEC. 20031. INCREASING THE MAXIMUM FEDERAL PELL GRANT.
(a) Award Year 2022-2023.--Section 401(b)(7) of the Higher
Education Act of 1965 (20 U.S.C. 1070a(b)(7)) is amended--
(1) in subparagraph (A)(iii), by inserting ``and such sums
as may be necessary for fiscal year 2022 to carry out the $500
increase provided under subparagraph (C)(iii)'' before ``;
and''; and
(2) in subparagraph (C)(iii), by inserting before the
period at the end the following: ``, except that, for award
year 2022-2023, such amount shall be increased by $500''.
(b) Subsequent Award Years Through 2029-2030.--
(1) In general.--Section 401(b) of the Higher Education Act
of 1965 (20 U.S.C. 1070a(b)), as amended by section 703 of the
FAFSA Simplification Act (title VII of division FF of Public
Law 116-260), is amended--
(A) in paragraph (5)(A)--
(i) in clause (i), by striking ``and''
after the semicolon;
(ii) by redesignating clause (ii) as clause
(iii); and
(iii) by inserting after clause (i) the
following:
``(ii) for each of award years 2023-2024
through 2029-2030, an additional $500; and'';
and
(B) in paragraph (6)(A)--
(i) in clause (i)--
(I) by striking ``appropriated)
such'' and inserting the following:
``appropriated)--
``(I) such''; and
(II) by adding at the end the
following:
``(II) such sums as are necessary
to carry out paragraph (5)(A)(ii) for
each of fiscal years 2023 through 2029;
and''; and
(ii) in clause (ii), by striking
``(5)(A)(ii)'' and inserting ``(5)(A)(iii)''.
(2) Effective date.--The amendments made by paragraph (1)
shall take effect as if included in section 703 of the FAFSA
Simplification Act (title VII of division FF of Public Law 116-
260) and in accordance with section 701(b) of such Act.
SEC. 20032. FEDERAL STUDENT AID ELIGIBILITY.
Section 484(a)(5) of the Higher Education Act of 1965 (20 U.S.C.
1091(a)(5)) is amended by inserting ``, or, with respect to any grant,
loan, or work assistance received under this title for award years
2022-2023 through 2029-2030, be subject to a grant of deferred enforced
departure or have deferred action pursuant to the Deferred Action for
Childhood Arrivals policy of the Secretary of Homeland Security or
temporary protected status under section 244 of the Immigration and
Nationality Act (8 U.S.C. 1254a)'' after ``becoming a citizen or
permanent resident''.
SEC. 20033. ACTIVE DUTY DEFERMENT PERIODS COUNTED TOWARD PUBLIC SERVICE
LOAN FORGIVENESS.
Section 455(m) of the Higher Education Act of 1965 (20 U.S.C.
1087e(m)) is amended--
(1) by redesignating paragraphs (2) through (4) as
paragraphs (3) through (5), respectively; and
(2) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``paragraph (2)'' and inserting ``paragraph
(3)''; and
(3) by inserting after paragraph (1) the following:
``(2) Active duty deferment periods.--
``(A) In general.--Notwithstanding paragraph(1)(A)
and subject to subparagraph (B), the Secretary shall
deem each month for which a loan payment was in
deferment under subsection (f)(2) of this section or
for which a loan payment was in forbearance under
section 685.205(a)(7) of title 34, Code of Federal
Regulations, (or similar successor regulations), for a
borrower described in subsection (f)(2)(C) as if the
borrower of the loan had made a payment for the purpose
of public service loan forgiveness under this
subsection.
``(B) Limitation.--Subparagraph (A) shall apply
only to eligible Federal Direct Loans originated before
the first day of fiscal year 2031.''.
Subpart C--Investments in Historically Black Colleges and Universities,
Tribal Colleges and Universities, and Minority-Serving Institutions
SEC. 20041. INSTITUTIONAL AID.
(a) In General.--In addition to amounts otherwise available, there
is appropriated for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated--
(1) $113,738,000, to remain available until September 30,
2022, for carrying out section 371(b)(2)(B) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(B)) in fiscal year
2022;
(2) $113,738,000, to remain available until September 30,
2023, for carrying out section 371(b)(2)(B) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(B)) in fiscal year
2023;
(3) $113,738,000, to remain available until September 30,
2024, for carrying out section 371(b)(2)(B) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(B)) in fiscal year
2024;
(4) $113,738,000, to remain available until September 30,
2025, for carrying out section 371(b)(2)(B) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(B)) in fiscal year
2025;
(5) $113,738,000, to remain available until September 30,
2026, for carrying out section 371(b)(2)(B) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(B)) in fiscal year
2026;
(6) $113,738,000, to remain available until September 30,
2022, for carrying out section 371(b)(2)(C) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(C)) in fiscal year
2022;
(7) $113,738,000, to remain available until September 30,
2023, for carrying out section 371(b)(2)(C) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(C)) in fiscal year
2023;
(8) $113,738,000, to remain available until September 30,
2024, for carrying out section 371(b)(2)(C) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(C)) in fiscal year
2024;
(9) $113,738,000, to remain available until September 30,
2025, for carrying out section 371(b)(2)(C) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(C)) in fiscal year
2025;
(10) $113,738,000, to remain available until September 30,
2026, for carrying out section 371(b)(2)(C) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(C)) in fiscal year
2026;
(11) $34,104,000, to remain available until September 30,
2022, for carrying out section 371(b)(2)(D)(i) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(i)) in fiscal
year 2022;
(12) $34,104,000, to remain available until September 30,
2023, for carrying out section 371(b)(2)(D)(i) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(i)) in fiscal
year 2023;
(13) $34,104,000, to remain available until September 30,
2024, for carrying out section 371(b)(2)(D)(i) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(i)) in fiscal
year 2024;
(14) $34,104,000, to remain available until September 30,
2025, for carrying out section 371(b)(2)(D)(i) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(i)) in fiscal
year 2025;
(15) $34,104,000, to remain available until September 30,
2026, for carrying out section 371(b)(2)(D)(i) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(i)) in fiscal
year 2026;
(16) $17,052,000, to remain available until September 30,
2022, for carrying out section 371(b)(2)(D)(ii) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(ii)) in fiscal
year 2022;
(17) $17,052,000, to remain available until September 30,
2023, for carrying out section 371(b)(2)(D)(ii) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(ii)) in fiscal
year 2023;
(18) $17,052,000, to remain available until September 30,
2024, for carrying out section 371(b)(2)(D)(ii) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(ii)) in fiscal
year 2024;
(19) $17,052,000, to remain available until September 30,
2025, for carrying out section 371(b)(2)(D)(ii) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(ii)) in fiscal
year 2025;
(20) $17,052,000, to remain available until September 30,
2026, for carrying out section 371(b)(2)(D)(ii) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(ii)) in fiscal
year 2026;
(21) $5,684,000, to remain available until September 30,
2022, for carrying out section 371(b)(2)(D)(iii) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(iii) in fiscal
year 2022;
(22) $5,684,000, to remain available until September 30,
2023, for carrying out section 371(b)(2)(D)(iii) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(iii) in fiscal
year 2023;
(23) $5,684,000, to remain available until September 30,
2024, for carrying out section 371(b)(2)(D)(iii) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(iii) in fiscal
year 2024;
(24) $5,684,000, to remain available until September 30,
2025, for carrying out section 371(b)(2)(D)(iii) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(iii) in fiscal
year 2025;
(25) $5,684,000, to remain available until September 30,
2026, for carrying out section 371(b)(2)(D)(iii) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(iii) in fiscal
year 2026;
(26) $5,684,000, to remain available until September 30,
2022, for carrying out section 371(b)(2)(D)(iv) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(iv) in fiscal
year 2022;
(27) $5,684,000, to remain available until September 30,
2023, for carrying out section 371(b)(2)(D)(iv) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(iv) in fiscal
year 2023;
(28) $5,684,000, to remain available until September 30,
2024, for carrying out section 371(b)(2)(D)(iv) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(iv) in fiscal
year 2024;
(29) $5,684,000, to remain available until September 30,
2025, for carrying out section 371(b)(2)(D)(iv) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(iv) in fiscal
year 2025; and
(30) $5,684,000, to remain available until September 30,
2026, for carrying out section 371(b)(2)(D)(iv) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(b)(2)(D)(iv) in fiscal
year 2026;
(b) Use of Funds.--The Secretary shall use 15 percent of each of
the amounts appropriated under paragraphs (6) through (10) of
subsection (a) to award 25 additional grants under section
371(b)(2)(C)(ii).
SEC. 20042. RESEARCH AND DEVELOPMENT INFRASTRUCTURE COMPETITIVE GRANT
PROGRAM.
Title III of the Higher Education Act of 1965 (20 U.S.C. 1051 et
seq.) is amended--
(1) by redesignating part G as part H; and
(2) by inserting after section 371 the following:
``PART G--IMPROVING RESEARCH & DEVELOPMENT INFRASTRUCTURE FOR MINORITY-
SERVING INSTITUTIONS
``SEC. 381. IMPROVING RESEARCH & DEVELOPMENT INFRASTRUCTURE FOR
MINORITY-SERVING INSTITUTIONS.
``(a) Eligible Institution.--In this section, the term `eligible
institution' means an institution that--
``(1) is described in section 371(a);
``(2) is a 4-year institution; and
``(3) is not an institution classified as very high
research activity by the Carnegie Classification of
Institutions of Higher Education.
``(b) Authorization of Grant Programs.--
``(1) Planning grants.--The Secretary shall award planning
grants, on a competitive basis, to eligible institutions to
assist the eligible institutions in developing a strategic
plan, assessing capacity, and carrying out other activities to
develop and submit an application for an implementation grant
under paragraph (2) to support research and development
infrastructure. Planning grants awarded under this paragraph
shall be for a period of 1 to 2 years.
``(2) Implementation grants.--The Secretary shall award
implementation grants, on a competitive basis, to eligible
institutions to assist the eligible institutions in supporting
research and development infrastructure. Implementation grants
awarded under this paragraph shall be for a period of 1 to 5
years.
``(c) Applications.--
``(1) In general.--
``(A) Planning grants.--An eligible institution
that desires to receive a planning grant under
subsection (b)(1) shall submit an application to the
Secretary. Such application shall include--
``(i) a description of the activities that
will be carried out with grant funds; and
``(ii) an assurance that the grant funds
provided under subsection (b)(1) shall be used
to supplement, and not supplant, other Federal,
State, tribal, and local funds that would
otherwise be expended to develop a plan, assess
capacity, or carry out other activities related
to research and development infrastructure.
``(B) Implementation grants.--
``(i) In general.--An eligible institution
that desires to receive an implementation grant
under subsection (b)(2) shall submit an
application to the Secretary. Such application
shall include--
``(I) a description of the projects
that will be carried out with grant
funds and, in the case of an
institution that was previously awarded
a planning grant under subsection
(b)(1), the strategic plan developed as
part of such planning grant;
``(II) a description of how such
projects will support the research and
development infrastructure of the
institution; and
``(III) an assurance that the grant
funds provided under subsection (b)(2)
shall be used to supplement, and not
supplant, other Federal, State, tribal,
and local funds that would otherwise be
expended to support research and
development infrastructure.
``(2) Consortia.--An eligible institution may apply to
receive a grant under this section on behalf of a consortium,
which may include institutions classified as very high research
activity by the Carnegie Classification of Institutions of
Higher Education, two-year institutions of higher education,
and other academic partners, philanthropic organizations, and
industry partners, provided that the eligible institution is
the lead member and fiscal agent of the consortium.
``(3) No comprehensive development plan.--The requirement
under section 391(b)(1) shall not apply to grants awarded under
this section.
``(d) Priority in Awards.--In awarding planning and implementation
grants under this section, the Secretary shall give priority to
eligible institutions that meet any of the following:
``(1) Received less than $10,000,000 for the previous
fiscal year for research and development from all Federal
sources combined, except that, in the case of an eligible
institution being considered for an implementation grant, the
calculation of such amount shall not include a planning grant
under this section.
``(2) In the case of eligible institutions being considered
for an implementation grant, have received a planning grant
under this section and have developed and submitted to the
Secretary a high-quality strategic plan, in accordance with the
requirements of such planning grant.
``(e) Use of Funds.--
``(1) Planning grants.--An eligible institution that
receives a planning grant under subsection (b)(1) shall use the
grant funds to develop a strategic plan, assess capacity, and
carry out other activities to develop and submit an application
for an implementation grant to support research and development
infrastructure. In carrying out the activities under such
grant, each such eligible institution--
``(A) shall develop a high-quality strategic plan
for improving institutional research and development
infrastructure that includes--
``(i) an assessment of the existing
institutional research capacity and research
and development infrastructure; and
``(ii) a detailed description of how
research and development infrastructure funds
provided by an implementation grant under this
section would be used to increase institutional
research capacity and support research and
development infrastructure; and
``(B) in developing such strategic plan, may work
in partnership with entities described in subsection
(c)(2) to identify and secure non-Federal funding to
support research and development infrastructure.
``(2) Implementation grants.--An eligible institution that
receives an implementation grant under subsection (b)(2) shall
use the grant funds to support research and development
infrastructure, which shall include carrying out at least one
of the following activities:
``(A) Providing funding for a program under
paragraph (1), (2), or (9) of section 311(c) or under
paragraph (1), (2), or (8) of section 503(b) related to
research and development infrastructure that is being
carried out by the eligible institution on the date on
which the eligible institution receives a grant under
this section.
``(B) Providing for the improvement of
infrastructure existing on the date of the grant award,
including deferred maintenance, or the establishment of
new physical infrastructure, including instructional
program spaces, laboratories, or research facilities
relating to the fields of science, technology,
engineering, the arts, mathematics, health,
agriculture, education, medicine, law, and other
disciplines.
``(C) Hiring and retaining faculty, students,
research-related staff, or other personnel, including
research personnel skilled in operating, using, or
applying technology, equipment, or devices used to
conduct or support research.
``(D) Supporting research internships and
fellowships for students, including undergraduate,
graduate, and post-doctoral positions, which may
include providing direct student financial assistance
to such students.
``(E) Creating new, or expanding existing, academic
positions, including internships, fellowships, and
post-doctoral positions, in fields of research for
which research and development infrastructure funds
have been awarded under this section.
``(F) Creating and supporting inter- and intra-
institutional research centers (including formal and
informal communities of practice) in fields of research
for which research and development infrastructure funds
have been awarded under this section, including hiring
staff, purchasing supplies and equipment, and funding
travel to relevant conferences and seminars to support
the work of such centers.
``(G) Building new institutional support structures
and departments that help faculty learn about, and
increase faculty and student access to, Federal
research and development grant funds and non-Federal
academic research grants.
``(H) Building data and collaboration
infrastructure so that early findings and research can
be securely shared to facilitate peer review and other
appropriate collaboration.
``(I) Providing programs of study and courses in
fields of research for which research and development
infrastructure funds have been awarded under this
section.
``(J) Paying operating and administrative expenses
for, and coordinating project partnerships with members
of, a consortium described in subsection (c)(2) on
behalf of which the eligible institution has received a
grant under this section.
``(K) Installing or extending the life and
usability of basic systems and components of campus
facilities related to research, including high-speed
broadband internet infrastructure sufficient to support
digital and technology-based learning.
``(L) Expanding, remodeling, renovating, or
altering biomedical and behavioral research facilities
existing on the date of the grant award that receive
support under section 404I of the Public Health Service
Act (42 U.S.C. 283k).
``(M) Acquiring and installing furniture, fixtures,
and instructional research-related equipment and
technology for academic instruction in campus
facilities in fields of research for which research and
development infrastructure funds have been awarded
under this section.
``(N) Providing increased funding to programs that
support research and development at the eligible
institution that are funded by National Institutes of
Health, including the Path to Excellence and Innovation
program with the National Institutes of Health.
``(f) Eligibility for Benefits.--No individual shall be determined
to be ineligible to receive benefits provided with grant funds awarded
under this section (including direct student financial assistance) on
the basis of citizenship, alienage, or immigration status.
``(g) Sunset.--
``(1) In general.--The authority to make--
``(A) planning grants under subsection (b)(1) shall
expire at the end of fiscal year 2025; and
``(B) implementation grants under subsection (b)(2)
shall expire at the end of fiscal year 2027.
``(2) Inapplicability of gepa contingent extension of
programs.--Section 422 of the General Education Provisions Act
(20 U.S.C. 1226a) shall not apply to this section.
``(h) Appropriations.--In addition to amounts otherwise available,
there is appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $2,000,000,000, to remain
available until September 30, 2028, for carrying out this section.''.
PART 3--MISCELLANEOUS
SEC. 20051. OFFICE OF INSPECTOR GENERAL.
In addition to amounts otherwise available, there is appropriated
to the Department of Education for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $35,000,000, to remain
available until expended, for the Office of Inspector General of the
Department of Education, for salaries and expenses necessary for
oversight, investigations, and audits of programs, grants, and projects
funded under this subtitle and sections 22101 and 22102 carried out by
the Office of Inspector General.
SEC. 20052. PROGRAM ADMINISTRATION FUNDS.
In addition to amounts otherwise available, there is appropriated
to the Department of Education for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $738,000,000, to remain
available until expended, for necessary administrative expenses
associated with carrying out this subtitle and sections 22101 and
22102.
SEC. 20053. STUDENT AID ADMINISTRATION.
In addition to amounts otherwise available, there is appropriated
to the Department of Education for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $91,000,000, to remain
available through September 30, 2030, for Student Aid Administration
within the Department of Education for necessary administrative
expenses associated with carrying out this subtitle.
Subtitle B--Labor Matters
SEC. 21001. DEPARTMENT OF LABOR.
In addition to amounts otherwise available, out of any money in the
Treasury not otherwise appropriated, there are appropriated to the
Department of Labor for fiscal year 2022, to remain available until
September 30, 2026, the following amounts:
(1) $195,000,000 to the Employee Benefits Security
Administration for carrying out enforcement activities.
(2) $707,000,000 to the Occupational Safety and Health
Administration for carrying out enforcement, standards
development, whistleblower investigations, compliance
assistance, funding for State plans, and related activities
within the Occupational Safety and Health Administration.
(3) $133,000,000 to the Mine Safety and Health
Administration for carrying out enforcement, standard setting,
technical assistance, and related activities.
(4) $405,000,000 to the Wage and Hour Division for carrying
out activities.
(5) $121,000,000 to the Office of Workers' Compensation
Programs for carrying out activities of the Office relating to
claims activity, policy and standards development, and
monitoring of State workers' compensation programs.
(6) $201,000,000 to the Office of Federal Contract
Compliance Programs for carrying out audit, investigation,
enforcement, and compliance assistance, and other activities.
(7) $176,000,000 to the Office of the Solicitor for
carrying out necessary legal support for activities carried out
by the Office related to and in support of the activities of
those Department of Labor agencies receiving additional funding
in this section.
SEC. 21002. NATIONAL LABOR RELATIONS BOARD.
In addition to amounts otherwise available, out of any money in the
Treasury not otherwise appropriated, there are appropriated to the
National Labor Relations Board for fiscal year 2022, $350,000,000, to
remain available until September 30, 2026, for carrying out the
activities of the Board, of which not more than $5,000,000 shall be for
the implementation of systems to conduct electronic voting for union
representation elections.
SEC. 21003. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION.
In addition to amounts otherwise available, out of any money in the
Treasury not otherwise appropriated, there are appropriated to the
Equal Employment Opportunity Commission for fiscal year 2022,
$321,000,000, to remain available until September 30, 2026, for
carrying out investigation, enforcement, outreach, and related
activities.
SEC. 21004. ADJUSTMENT OF CIVIL PENALTIES.
(a) Occupational Safety and Health Act of 1970.--Section 17 of the
Occupational Safety and Health Act of 1970 (29 U.S.C. 666) is amended--
(1) in subsection (a)--
(A) by striking ``$70,000'' and inserting
``$700,000''; and
(B) by striking ``$5,000'' and inserting
``$50,000'';
(2) in subsection (b), by striking ``$7,000'' and inserting
``$70,000''; and
(3) in subsection (d), by striking ``$7,000'' and inserting
``$70,000''.
(b) Fair Labor Standards Act of 1938.--Section 16(e) of the Fair
Labor Standards Act of 1938 (29 U.S.C. 216(e)) is amended--
(1) in paragraph (1)(A)--
(A) in clause (i), by striking ``$11,000'' and
inserting ``$132,270''; and
(B) in clause (ii), by striking ``$50,000'' and
inserting ``$601,150''; and
(2) in paragraph (2)--
(A) in the first sentence, by striking ``$1,100''
and inserting ``$20,740''; and
(B) in the second sentence, by striking ``$1,100''
and inserting ``$11,620''.
(c) Migrant and Seasonal Agricultural Worker Protection Act.--
Section 503(a)(1) of the Migrant and Seasonal Agricultural Worker
Protection Act (29 U.S.C. 1853(a)(1)) is amended by striking ``$1,000''
and inserting ``$25,790''.
(d) Effective Date.--The amendments made by this section shall take
effect on January 1, 2022.
SEC. 21005. CIVIL MONETARY PENALTIES FOR PARITY VIOLATIONS.
(a) Civil Monetary Penalties Relating to Parity in Mental Health
and Substance Use Disorders.--Section 502(c)(10) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1132(c)(10)(A)) is
amended--
(1) in the heading, by striking ``use of genetic
information'' and inserting ``use of genetic information and
parity in mental health and substance use disorder benefits'';
and
(2) in subparagraph (A)--
(A) by striking ``any plan sponsor of a group
health plan'' and inserting ``any plan sponsor or plan
administrator of a group health plan''; and
(B) by striking ``for any failure'' and all that
follows through ``in connection with the plan.'' and
inserting ``for any failure by such sponsor,
administrator, or issuer, in connection with the plan--
``(i) to meet the requirements of
subsection (a)(1)(F), (b)(3), (c), or (d) of
section 702 or section 701 or 702(b)(1) with
respect to genetic information; or
``(ii) to meet the requirements of
subsection (a) of section 712 with respect to
parity in mental health and substance use
disorder benefits.''.
(b) Exception to the General Prohibition on Enforcement.--Section
502 of such Act (29 U.S.C. 1132) is amended--
(1) in subsection (a)(6), by striking ``or (9)'' and
inserting ``(9), or (10)''; and
(2) in subsection (b)(3)--
(A) by striking ``subsections (c)(9) and (a)(6)''
and inserting ``subsections (c)(9), (c)(10), and
(a)(6)'';
(B) by striking ``under subsection (c)(9))'' and
inserting ``under subsections (c)(9) and (c)(10)), and
except with respect to enforcement by the Secretary of
section 712''; and
(C) by striking ``706(a)(1)'' and inserting
``733(a)(1)''.
(c) Effective Date.--The amendments made by subsection (a) shall
apply with respect to group health plans, or any health insurance
issuer offering health insurance coverage in connection with such plan,
for plan years beginning after the date that is 1 year after the date
of enactment of this Act.
SEC. 21006. PENALTIES UNDER THE NATIONAL LABOR RELATIONS ACT.
(a) In General.--Section 12 of the National Labor Relations Act (29
U.S.C. 162) is amended--
(1) by striking ``sec. 12. Any person'' and inserting the
following:
``SEC. 12. PENALTIES.
``(a) Violations for Interference With Board.--Any person''; and
(2) by adding at the end the following:
``(b) Civil Penalties for Unfair Labor Practices.--Any employer who
commits an unfair labor practice within the meaning of section 8(a)
affecting commerce shall be subject to a civil penalty in an amount not
to exceed $50,000 for each such violation, except that, with respect to
such an unfair labor practice within the meaning of paragraph (3) or
(4) of section 8(a) or such a violation of section 8(a) that results in
the discharge of an employee or other serious economic harm to an
employee, the Board shall double the amount of such penalty, to an
amount not to exceed $100,000, in any case where the employer has
within the preceding 5 years committed another such violation of such
paragraph (3) or (4) or such violation of section 8(a) that results in
such discharge or other serious economic harm. A civil penalty under
this paragraph shall be in addition to any other remedy ordered by the
Board.
``(c) Considerations.--In determining the amount of any civil
penalty under this section, the Board shall consider--
``(1) the gravity of the actions of the employer resulting
in the penalty, including the impact of such actions on the
charging party or on other persons seeking to exercise rights
guaranteed by this Act;
``(2) the size of the employer;
``(3) the history of previous unfair labor practices or
other actions by the employer resulting in a penalty; and
``(4) the public interest.
``(d) Director and Officer Liability.--If the Board determines,
based on the particular facts and circumstances presented, that a
director or officer's personal liability is warranted, a civil penalty
for a violation described in this section may also be assessed against
any director or officer of the employer who directed or committed the
violation, had established a policy that led to such a violation, or
had actual or constructive knowledge of and the authority to prevent
the violation and failed to prevent the violation.''.
(b) Additional Penalties.--The National Labor Relations Act (29
U.S.C. 151 et seq.) is amended by inserting after section 12 (29 U.S.C.
162) the following:
``SEC. 12A. ADDITIONAL PENALTIES.
``(a) Civil Penalties for Additional Conduct.--Any employer who
violates subsection (d) affecting commerce shall be subject to a civil
penalty in an amount not to exceed $50,000 for each such violation,
except that, with respect to such a violation that results in the
discharge of an employee or other serious economic harm to an employee,
the Board shall double the amount of such penalty, to an amount not to
exceed $100,000, in any case where the employer has within the
preceding 5 years committed another such violation of subsection (d)
that results in such discharge or other serious economic harm.
``(b) Considerations.--In determining the amount of any civil
penalty under this section, the Board shall consider--
``(1) the gravity of the actions of the employer resulting
in the penalty, including the impact of such actions on the
charging party or on other persons seeking to exercise rights
guaranteed by this Act;
``(2) the size of the employer;
``(3) the history of previous unfair labor practices or
other actions by the employer resulting in a penalty; and
``(4) the public interest.
``(c) Director and Officer Liability.--If the Board determines,
based on the particular facts and circumstances presented, that a
director or officer's personal liability is warranted, a civil penalty
for a violation described in this section may also be assessed against
any director or officer of the employer who directed or committed the
violation, had established a policy that led to such a violation, or
had actual or constructive knowledge of and the authority to prevent
the violation and failed to prevent the violation.
``(d) Prohibition.--It shall be unlawful for an employer--
``(1) to promise, threaten, or take any action--
``(A) to permanently replace an employee who
participates in a strike as defined by section 501(2)
of the Labor Management Relations Act, 1947 (29 U.S.C.
142(2));
``(B) to discriminate against an employee who is
working or has unconditionally offered to return to
work for the employer because the employee supported or
participated in such a strike; or
``(C) to lockout, suspend, or otherwise withhold
employment from employees in order to influence the
position of such employees or the representative of
such employees in collective bargaining prior to a
strike;
``(2) to communicate or misrepresent to an employee under
section 2(3) that such employee is excluded from the definition
of employee under section 2(3);
``(3) to require or coerce an employee to attend or
participate in such employer's campaign activities unrelated to
the employee's job duties, including activities that are
subject to the requirements under section 203(b) of the Labor-
Management Reporting and Disclosure Act of 1959 (29 U.S.C.
433(b)); or
``(4) to violate subsection (e).
``(e) Collective Action.--
``(1) In general.--No employer shall--
``(A) enter into or attempt to enforce any
agreement, express or implied, whereby prior to a
dispute to which the agreement applies, an employee
undertakes or promises not to pursue, bring, join,
litigate, or support any kind of joint, class, or
collective claim arising from or relating to the
employment of such employee in any forum that, but for
such agreement, is of competent jurisdiction;
``(B) coerce an employee into undertaking or
promising not to pursue, bring, join, litigate, or
support any kind of joint, class, or collective claim
arising from or relating to the employment of such
employee; or
``(C) retaliate or threaten to retaliate against an
employee for refusing to undertake or promise not to
pursue, bring, join, litigate, or support any kind of
joint, class, or collective claim arising from or
relating to the employment of such employee.
``(2) Exception.--This subsection shall not apply to any
agreement embodied in or expressly permitted by a contract
between an employer and a labor organization.
``(f) Enforcement.--The provisions of section 10 and 11 shall apply
to a violation of this section in the same manner as such provisions
apply to an unfair labor practice, except that--
``(1) an order under section 10 with respect to a violation
of this section--
``(A) shall require only that the person in such
violation pay a civil penalty under subsection (a); and
``(B) shall not include a requirement for a person
to cease and desist such violation or any form of
affirmative action other than the payment of such
penalty;
``(2) a petition under subsection (e) of section 10 with
respect to a violation of this section may be only for
enforcement of an order for the payment of a civil penalty
under subsection (a);
``(3) a petition under subsection (f) of section 10 with
respect to a violation of this section may be only for review
of an order for the payment of such a civil penalty; and
``(4) a court under section 10 may not grant any form of
relief, including temporary relief, a restraining order, or any
other form of injunctive relief, for a violation of this
section other than a decree to enforce, modify, or set aside in
whole or in part an order of the Board imposing a civil penalty
under subsection (a) for a violation of this section.''.
(c) Effective Date.--The amendments made by this section shall take
effect on January 1, 2022.
Subtitle C--Workforce Development Matters
PART 1--DEPARTMENT OF LABOR
SEC. 22001. DISLOCATED WORKER EMPLOYMENT AND TRAINING ACTIVITIES.
(a) In General.--In addition to amounts otherwise made available,
there is appropriated to the Department of Labor for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$16,000,000,000, to remain available until September 30, 2026, except
that no amounts may be expended after September 30, 2031, which shall
be reserved and allotted to States in accordance with subsection (b)(2)
of section 132 of the Workforce Innovation and Opportunity Act (29
U.S.C. 3172), reserved and allocated to local areas in accordance with
subsections (a) and (b)(1)(B) of section 133 of such Act (29 U.S.C.
3173), and reserved by such local areas as follows:
(1) Not less than 20 percent shall be reserved for carrying
out the career services authorized under subsection (c)(2) of
section 134 of the Workforce Innovation and Opportunity Act (29
U.S.C. 3174) and expanding access to the individualized career
services described in section 134(c)(2)(A)(xii) of such Act (29
U.S.C. 3174(c)(2)(A)(xii)).
(2) Not less than 20 percent shall be reserved for carrying
out the supportive services and providing the needs-related
payments authorized under paragraphs (2) and (3) of section
134(d) of the Workforce Innovation and Opportunity Act (29
U.S.C. 3174(d)), except that for purposes of the reservation
under this paragraph the requirements of subparagraphs (B) and
(C) of paragraph (3) of such section shall not apply; and
(3) Not less than 50 percent shall be reserved for carrying
out the training services--
(A) of which, not less than 60 percent shall be
made available for individual training accounts
authorized under section 134(c)(3) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3174(c)(3)).
(B) except that for purposes of providing
transitional jobs as part of those services under this
section, section 134(d)(5) of such Act (29 U.S.C.
3174(d)(5)) shall be applied by substituting ``40
percent'' for ``10 percent''.
(b) Supplement Not Supplant.--Amounts made available to carry out
this section shall be used to supplement and not supplant other
Federal, State, and local public funds expended to provide employment
and training activities for dislocated workers, including funds
provided under the Workforce Innovation and Opportunity Act (29 U.S.C.
3101 et seq.).
SEC. 22002. ADULT WORKER EMPLOYMENT AND TRAINING ACTIVITIES.
(a) In General.--In addition to amounts otherwise made available,
there is appropriated to the Department of Labor for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$15,000,000,000, to remain available until September 30, 2026, except
that no amounts may be expended after September 30, 2031, which shall
be reserved and allotted to States in accordance with subsection (b)(1)
of section 132 of the Workforce Innovation and Opportunity Act (29
U.S.C. 3172), reserved and allocated to local areas in accordance with
subsections (a) and (b)(1)(A) of section 133 of such Act (29 U.S.C.
3173), and reserved by such local areas as follows:
(1) Not less than 20 percent shall be reserved for carrying
out the career services authorized under subsection (c)(2) of
section 134 of the Workforce Innovation and Opportunity Act (29
U.S.C. 3174) and expanding access to the individualized career
services described in section 134(c)(2)(A)(xii) of such Act (29
U.S.C. 3174(c)(2)(A)(xii)).
(2) Not less than 10 percent shall be reserved for carrying
out the supportive services and providing the needs-related
payments authorized under paragraphs (2) and (3) of section
134(d) of the Workforce Innovation and Opportunity Act (29
U.S.C. 3174(d)).
(3) Not less than 50 percent shall be reserved for carrying
out the training services--
(A) of which, not less than 60 percent shall be
made available for individual training accounts or
contracts authorized under of section 134(c)(3) of the
Workforce Innovation and Opportunity Act (29 U.S.C.
3174(c)(3)); and
(B) except that for purposes of providing incumbent
worker training as part of those services under this
section, if such training is provided to low-wage
workers, section 134(d)(4)(A)(i) of the Workforce
Innovation and Opportunity Act (29 U.S.C.
3174(d)(4)(A)(i)) shall be applied by substituting ``40
percent'' for ``20 percent''.
(b) Supplement Not Supplant.--Amounts made available to carry out
this section shall be used to supplement and not supplant other
Federal, State, and local public funds expended to provide adult
employment and training activities, including funds provided under the
Workforce Innovation and Opportunity Act (29 U.S.C. 3101 et seq.).
SEC. 22003. YOUTH WORKFORCE INVESTMENT ACTIVITIES.
(a) In General.--In addition to amounts otherwise made available,
there is appropriated to the Department of Labor for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$9,054,000,000, to remain available until September 30, 2026, except
that no amounts may be expended after September 30, 2031, which shall
be reserved and allotted to States in accordance with subparagraphs (B)
and (C) of section 127(b)(1) of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3162(b)(1)), reserved and allocated to local
areas in accordance with subsections (a) and (b) of section 128 of such
Act (29 U.S.C. 3163), and reserved by such local areas as follows:
(1) 25 percent shall be reserved for carrying out the youth
workforce investment activities authorized under section 129 of
the Workforce Innovation and Opportunity Act (29 U.S.C. 3164 et
seq.).
(2) 75 percent shall be reserved to provide opportunities
for in-school youth and out-of-school youth to participate in
paid work experiences described in subsection (c)(2)(C) of
section 129 of the Workforce Innovation and Opportunity Act (29
U.S.C. 3164).
(b) Partnerships.--Not less than 20 percent of amounts made
available under subsection (a) shall be used by local areas to partner
with community-based organizations serving out-of-school youth to carry
out activities described in paragraphs (1) and (2) of subsection (a),
including those residing in high-crime or high-poverty areas.
(c) Supplement Not Supplant.--Amounts made available to carry out
this section shall be used to supplement and not supplant other
Federal, State, and local public funds expended for youth workforce
investment activities, including funds provided under the Workforce
Innovation and Opportunity Act (29 U.S.C. 3101 et seq.).
SEC. 22004. EMPLOYMENT SERVICE.
In addition to amounts otherwise made available, there is
appropriated to the Department of Labor for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, the following
amounts, to remain available until September 30, 2026, except that no
amounts may be expended after September 30, 2031
(1) $1,250,000,000 for carrying out the State grant
activities authorized under section 7 of the Wagner-Peyser Act
(29 U.S.C. 49f), which shall be allotted in accordance with
section 6 of such Act (29 U.S.C. 49e), except that, for
purposes of this section, funds shall also be provided to the
Commonwealth of the Northern Mariana Islands and American Samoa
in amounts the Secretary determines appropriate prior to the
allotments being made in accordance with section 6 of such Act
(29 U.S.C. 49d).
(2) $100,000,000 for carrying out improvements to the
workforce and labor market information systems authorized under
section 15 of the Wagner-Peyser Act (29 U.S.C. 49l-2).
SEC. 22005. RE-ENTRY EMPLOYMENT OPPORTUNITIES.
In addition to amounts otherwise made available, there is
appropriated to the Department of Labor for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $3,600,000,000,
to remain available until September 30, 2026, except that no amounts
may be expended after September 30, 2031, for carrying out ex-offender
activities, under the authority of section 169 of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3224). Not less than 25
percent of such funds shall be for competitive grants to national and
regional intermediaries for activities that prepare for employment of
young adults with criminal records, young adults who have been justice
system-involved, or young adults who have dropped out of school or
other educational programs, with a priority for projects serving high-
crime, high-poverty areas.
SEC. 22006. REGISTERED APPRENTICESHIPS, YOUTH APPRENTICESHIPS, AND PRE-
APPRENTICESHIPS.
(a) In General.--In addition to amounts otherwise made available,
there is appropriated to the Department of Labor for fiscal year 2022,
out of any amounts in the Treasury not otherwise appropriated,
$5,000,000,000, to remain available until September 30, 2026, except
that no amounts may be expended after September 30, 2031, to carry out
activities through grants, cooperative agreements, contracts or other
arrangements, with States and other appropriate entities, including
equity intermediaries and business and labor industry partner
intermediaries, to create or expand only--
(1) apprenticeship programs registered under the Act of
August 16, 1937 (commonly known as the ``National
Apprenticeship Act''; 50 Stat. 664, chapter 663; 29 U.S.C. 50
et seq.); and
(2) youth apprenticeship programs and pre-apprenticeship
programs that articulate to apprenticeship programs described
in paragraph (1).
(b) Reservation.--Not less than 50 percent of the funds made
available under section (a) shall be reserved for--
(1) entities serving a high number or high percentage of
individuals with barriers to employment (as defined in section
3 of the Workforce Innovation and Opportunity Act (29 U.S.C.
3102)), including individuals with disabilities, or
nontraditional apprenticeship populations; or
(2) youth apprenticeships or pre-apprenticeships that
articulate to such registered apprenticeships programs.
SEC. 22007. COMMUNITY COLLEGE AND INDUSTRY PARTNERSHIP GRANTS.
(a) Definitions.--In this section--
(1) Eligible institution.--The term ``eligible
institution'' means an institution of higher education (as
defined in section 101 or 102(c) of the Higher Education Act of
1965 (20 U.S.C. 1001, 1002(c)), including a Tribal College or
University (as defined in section 316 of such Act (20 U.S.C.
1059c)), or a consortium of such institutions--
(A) at which the highest degree awarded is an
associate degree; or an associate degree is the
predominant degree awarded; and
(B) that is working directly with an industry or
sector partnership, or in the process of establishing
such partnership, to carry out a grant under this
section.
(2) Perkins cte definitions.--The terms ``career and
technical education'', ``career guidance and academic
counseling'' , ``dual or concurrent enrollment program'',
``evidence-based'' and ``work-based learning'' have the
meanings given the terms in section 3 of the Carl D. Perkins
Career and Technical Education Act of 2006 (20 U.S.C. 2302).
(3) Registered apprenticeship program.--The term
``registered apprenticeship program'' means an apprenticeship
registered under the Act of August 16, 1937 (commonly known as
the ``National Apprenticeship Act''; 50 Stat. 664, chapter 663;
29 U.S.C. 50 et seq.).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(5) Wioa definitions.--
(A) In general.--The terms ``career pathway'',
``in-demand industry sector or occupation'',
``individual with a barrier to employment'', ``industry
or sector partnership'', ``integrated education and
training'', ``recognized postsecondary credential'' and
``supportive services'' have the meanings given the
terms in section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102).
(B) Career services.--The term ``career services''
means services described in section 134(c)(2) of the
Workforce Innovation and Opportunity Act (29 U.S.C.
3174(c)(2)).
(b) In General.--In addition to amounts otherwise made available,
there is appropriated to the Department of Labor for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$2,000,000,000, to remain available until September 30, 2026, except
that no amounts may be expended after September 30, 2031, to carry out
this section.
(c) Grants.--From funds appropriated under subsection (b) and not
reserved under subsection (e), and under the authority of section
169(b)(5) of the Workforce Innovation and Opportunity Act (29 U.S.C.
3224(b)(5)), the Secretary shall award grants on a competitive basis to
eligible institutions for the purposes of expanding workforce
development and employment opportunities in high-skill, high-wage, or
in-demand industry sectors or occupations. To receive such a grant, an
eligible institution shall submit to the Secretary an application at
such time, in such manner, and containing such information as specified
by the Secretary, including a description of the related programs,
recognized postsecondary credentials, and employment opportunities.
(d) Use of Grant Funds.--
(1) In general.--An eligible institution awarded a grant
under this section shall use such grant funds to expand
opportunities for attainment of recognized postsecondary
credentials that are nationally portable and stackable for
high-skill, high-wage, or in-demand industry sectors or
occupations by--
(A) establishing, improving, or scaling high-
quality, evidence-based education and training
programs, such as career and technical education
programs, career pathway programs, and work-based
learning programs (including programs of registered
apprenticeships or pre-apprenticeships that articulate
to registered apprenticeships);
(B) creating, developing, or expanding articulation
agreements (as defined in section 486A(a) of the Higher
Education Act of 1965 (20 U.S.C. 1093a(a))), credit
transfer agreements, corequisite remediation programs,
dual or concurrent enrollment programs, or policies and
processes to award academic credit for prior learning
or career training programs supported by the funds
described in subsection (c);
(C) making available open, searchable, and
comparable information on curriculum or recognized
postsecondary credentials, including those created or
developed using such funds, and information on the
related skills or competencies, and related employment
and earnings outcomes;
(D) establishing or implementing plans for
providers of programs supported with such funds to be
included on the eligible training services provider
list described in section 122(d) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3152(d));
(E) purchasing, leasing, or refurbishing
specialized equipment necessary to carry out the
education or career training programs supported by such
funds;
(F) reducing or eliminating out-of-pocket expenses
related to participants' cost of attendance in the
education or career training activities supported by
such funds; or
(G) establishing or expanding industry or sector
partnerships to successfully carry out the activities
described in subparagraphs (A) through (F).
(2) Reservation.--An eligible institution awarded a grant
under this section shall use not less than 15 percent of such
grant funds to provide services to help individuals with
barriers to employment complete and successfully transition out
of education or career training programs supported by such
funds, which shall include providing supportive services,
career services, career guidance and academic counseling, or
job placement assistance.
(e) Reservations.--From the amounts made available under subsection
(b), the Secretary shall reserve not more than 5 percent for--
(1) targeted outreach to eligible institutions serving a
high number or high percentage of low-income individuals or
individuals with barriers to employment, and rural-serving
eligible institutions, to provide guidance and assistance in
the grant application process under this section;
(2) administration of the program described in this
section, including providing technical assistance and oversight
to support eligible institutions (including consortia of
eligible institutions); and
(3) evaluating and reporting on the performance and impact
of programs funded under this section.
(f) Supplement Not Supplant.--Amounts available to carry out this
section shall be used to supplement and not supplant other Federal,
State, and local public funds expended to support community college
education or career training programs.
SEC. 22008. INDUSTRY OR SECTOR PARTNERSHIP GRANTS.
(a) In General.--In addition to amounts otherwise made available,
there is appropriated to the Department of Labor for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$10,000,000,000, to remain available until September 30, 2026, except
that no amounts may be expended after September 30, 2031, to carry out
this section.
(b) Grants.--From amounts appropriated under subsection (a) and not
reserved under subsection (d), and under the authority of section
169(b)(5) of the Workforce Innovation and Opportunity Act (29 U.S.C.
3224(b)(5)), the Secretary shall award grants on a competitive basis to
eligible partnerships for the purposes of expanding workforce
development and employment opportunities for high-skill, high-wage, or
in-demand industry sectors or occupations, including information
technology, clean energy, arts and entertainment, infrastructure and
transportation, advanced manufacturing, health care, public health,
home care, and early childhood care and education. To receive such a
grant, an eligible partnership shall submit to the Secretary an
application at such time, in such manner, and containing such
information as specified by the Secretary.
(c) Uses of Funds.--An eligible partnership awarded such a grant
under this section shall use--
(1) such grant funds to engage and regularly convene
stakeholders in a collaborative structure to identify, develop,
improve, or expand training, employment, and growth
opportunities for the high-skill, high-wage, or in-demand
industry sector or occupation on which such partnership is
focused;
(2) not less than 50 percent of such grant funds to
directly provide, or arrange for the provision of, high-
quality, evidence-based training for the high-skill, high-wage,
or in-demand industry sector or occupation on which such
partnership is focused, which shall include--
(A) training services described in any clause of
subparagraph (D) of section 134(c)(3) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3174(c)(3)))
provided through contracts that meet the requirements
of that section 134(c)(3); or
(B) training provided through registered
apprenticeship programs, youth apprenticeship, or pre-
apprenticeship programs that articulate to registered
apprenticeship programs, or through joint labor-
management partnerships; and
(C) establishing or implementing plans for
providers of programs supported with such funds to be
included on the eligible training services provider
list described in section 122(d) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3152(d)).
(3) not less than 15 percent of such grant funds to
directly provide, or arrange for the provision of, services to
help individuals with barriers to employment complete and
successfully transition out of training described in paragraph
(2), which services shall include career services, supportive
services, or the provision of needs-related payments authorized
under subsections (c)(2), (d)(2), and (d)(3) of section 134 of
the Workforce Innovation and Opportunity Act (29 U.S.C. 3174).
(d) Reservations.--
(1) In general.--From the amounts made available under
subsection (a), the Secretary shall reserve not more than 5
percent for--
(A) targeted outreach and support to eligible
partnerships serving local areas with high unemployment
rates or high percentages of individuals with low
incomes or individuals with barriers to employment, to
provide guidance and assistance in the grant
application process under this section;
(B) administration of the program described in this
section, including providing comprehensive technical
assistance and oversight to support eligible
partnerships; and
(C) evaluating and reporting on the performance and
impact of programs funded under this section.
(2) State board or local board funds.--From amounts made
available under subsection (a), the Secretary shall reserve not
less than 5 percent to provide direct assistance to State
boards or local boards to support the creation or expansion of
industry or sector partnerships in local areas with high
unemployment rates or high percentages of individuals with low
incomes or individuals with barriers to employment, as compared
to State or national averages for such rates or percentages.
(e) Supplement Not Supplant.--Amounts made available to carry out
this section shall be used to supplement and not supplant other
Federal, State, and local public funds expended to support activities
described in this section.
(f) Definitions.--In this section:
(1) Eligible partnership.--The term ``eligible
partnership'' means--
(A) an industry or sector partnership, which shall
include multiple representatives described in each of
clauses (i) through (iii) of paragraph (26)(A) of
section 3 of the Workforce Innovation and Opportunity
Act (29 U.S.C. 3102); or
(B) a partnership of multiple entities described in
section 3(26) of such Act (29 U.S.C. 3102(26)), and a
State board or local board, that is in the process of
establishing an industry or sector partnership.
(2) Perkins cte definitions.--The terms ``career guidance
and academic counseling'' and ``evidence-based'' have the
meanings given the terms in section 3 of the Carl D. Perkins
Career and Technical Education Act of 2006 (20 U.S.C. 2302).
(3) Registered apprenticeship program.--The term
``registered apprenticeship program'' means an apprenticeship
registered under the Act of August 16, 1937 (commonly known as
the ``National Apprenticeship Act''; 50 Stat. 664, chapter 663;
29 U.S.C. 50 et seq.).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(5) Wioa definitions.--The terms ``career pathway'', ``in-
demand industry sector or occupation'', ``individual with a
barrier to employment'', ``industry or sector partnership'',
``local area'', ``local board'', and ``State board'' have the
meanings given the terms in section 3 of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3102).
SEC. 22009. JOB CORPS.
In addition to amounts otherwise made available, there is
appropriated to the Department of Labor for fiscal year 2022, out of
any amounts in the Treasury not otherwise appropriated, $1,500,000,000,
to remain available until September 30, 2026, except that no amounts
may be expended after September 30, 2031, for the Job Corps program
authorized under section 143 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3193), including improving and expanding
access to allowances and supports described in section 150 of such Act
(29 U.S.C. 3200), except that for the purposes of this section,
outlying areas as defined in section 3 of such Act (29 U.S.C. 3102)
shall be considered eligible to receive funds under this section. Of
such funds, no less than $750,000,000 shall be reserved for
construction, rehabilitation and acquisition of Job Corps Centers.
SEC. 22010. NATIVE AMERICAN PROGRAMS.
In addition to amounts otherwise made available, there is
appropriated to the Department of Labor for fiscal year 2022, out of
any amounts in the Treasury not otherwise appropriated, $450,000,000,
to remain available until September 30, 2026, except that no amounts
may be expended after September 30, 2031, for the Native American
programs authorized under the Workforce Innovation and Opportunity Act.
SEC. 22011. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.
In addition to amounts otherwise made available, there is
appropriated to the Department of Labor for fiscal year 2022, out of
any amounts in the Treasury not otherwise appropriated, $450,000,000,
to remain available until September 30, 2026, except that no amounts
may be expended after September 30, 2031, for the migrant and seasonal
farmworker programs authorized under Workforce Innovation and
Opportunity Act, except that, for purposes of providing services under
those programs to low-income individuals under this section, section
3(36)(A)(ii)(I) of such Act (29 U.S.C. 3102(36)(A)(ii)(I)) shall be
applied by substituting ``150 percent of the poverty line'' for ``the
poverty line''.
SEC. 22012. YOUTHBUILD PROGRAM.
In addition to amounts otherwise made available, there is
appropriated to the Department of Labor for fiscal year 2022, out of
any amounts in the Treasury not otherwise appropriated, $500,000,000,
to remain available until September 30, 2026, except that no amounts
may be expended after September 30, 2031, for the YouthBuild program
authorized under the Workforce Innovation and Opportunity Act (29
U.S.C. 3226), including for the purposes of improving and expanding
access to services, stipends, wages, and benefits described in
subsections (c)(2)(A)(vii) and (c)(2)(F) of section 171 of such Act.
SEC. 22013. SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM.
In addition to amounts otherwise made available, there is
appropriated to the Department of Labor for fiscal year 2022, out of
any amounts in the Treasury not otherwise appropriated, $100,000,000,
to remain available until September 30, 2026, except that no amounts
may be expended after September 30, 2031, for the Senior Community
Service Employment program authorized under title V of the Older
Americans Act (42 U.S.C. 3056 et seq.).
SEC. 22014. PROGRAM ADMINISTRATION.
In addition to amounts otherwise made available, there is
appropriated to the Department of Labor for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $720,000,000, to
remain available until September 30, 2028, except that no amounts may
be expended after September 30, 2031, for program administration within
the Department of Labor for salaries and expenses necessary to
implement this part, parts 3 and 4, and section 22402 of part 5 of this
subtitle, including for management, legal, or other support necessary
to implement such parts or section.
PART 2--DEPARTMENT OF EDUCATION
SEC. 22101. ADULT EDUCATION AND LITERACY.
(a) In General.--In addition to amounts otherwise made available,
there is appropriated to the Department of Education for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$3,600,000,000, to remain available until September 30, 2028, to carry
out title II of the Workforce Innovation and Opportunity Act (29 U.S.C.
3101 et seq.), which shall be reserved, and granted and allotted to
eligible agencies in accordance with subsections (a), (b), and (c) of
section 211 of such Act, respectively.
(b) Requirement.--With respect to each eligible agency that
receives funds appropriated by this section, for each fiscal year for
which such eligible agency receives such funds, section 222(a)(1) of
the Workforce Innovation and Opportunity Act (29 U.S.C. 3302(a)(1)) the
shall be applied by substituting ``not less than 10 percent'' for ``not
more than 20 percent''.
SEC. 22102. CAREER AND TECHNICAL EDUCATION.
(a) In General.--In addition to amounts otherwise made available,
there is appropriated to the Department of Education for fiscal year
2022, out of any money in the Treasury not otherwise appropriated, the
following amounts, to remain available until September 30, 2028:
(1) $3,000,000,000 for carrying out career and technical
education programs authorized under section 124 and section 135
of the Carl D. Perkins Career and Technical Education Act of
2006 (20 U.S.C. 2301 et seq.), which shall be allotted in
accordance with section 111 and section 112 of such Act (20
U.S.C. 2321, 2322), except that subsection (b) of section 112
of such Act (20 U.S.C. 2322) shall not apply.
(2) $1,000,000,000 for carrying out the innovation and
modernization program described in subsection(e) of section 114
of the Carl D. Perkins Career and Technical Education Act of
2006 (20 U.S.C. 2324(e)), except that for purposes of this
paragraph--
(A) the 20 percent limitation in paragraph (1) of
such subsection, and paragraph (2) of such subsection,
shall not apply; and
(B) eligible agencies (as defined in section 3 of
such Act) shall be eligible to receive grants under
section 114(e) of such Act.
(b) Supplement Not Supplant.--Amounts made available to carry out
this section shall be used to supplement and not supplant other
Federal, State, and local public funds expended for career and
technical education programs, including the funds provided under the
Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C.
2301 et seq.).
PART 3--COMPETITIVE INTEGRATED EMPLOYMENT TRANSFORMATION GRANT PROGRAM
SEC. 22201. COMPETITIVE INTEGRATED EMPLOYMENT TRANSFORMATION GRANT
PROGRAM.
(a) In General.--In addition to amounts otherwise made available,
there is appropriated to the Department of Labor, $300,000,000 for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, to remain available until expended, for the Secretary of
Labor (referred to in this section as the ``Secretary'') to award
grants to States in accordance with this section to assist employers in
such States who were issued special certificates under section 14(c) of
the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)) in transforming
(or continuing to transform) their business and program models from
providing employment using special certificates to business and program
models that employ and support people with disabilities in competitive
integrated employment and to cover any administrative costs associated
with such grants.
(b) Reservations and Allotments; Duration of Awards.--
(1) Reservations.--
(A) Allotments to non-covered states.--
(i) In general.--The Secretary shall
reserve 10 percent of the amount appropriated
by subsection (a) to award grants, in
accordance to clause (ii), to States described
in subsection (c)(3) that submit an application
under subsection (c) meeting the applicable
requirements of such subsection.
(ii) Allotment amount.--The Secretary shall
allot grants to each State under clause (i) a
grant in an amount that bears the same
relationship to the total amount reserved under
clause (i) as the population of the State bears
to the total population of all States described
in such clause.
(B) National technical assistance center.--The
Secretary shall use 2 percent of the amounts
appropriated in subsection (a) to establish, either
directly or through grants, contracts, or cooperative
agreements, a national technical assistance center to
provide technical assistance to employers who are
transforming from employing people with disabilities
using special certificates to providing competitive
integrated employment and to collect and disseminate
evidence-based practices with respect to the
transformations and in providing competitive integrated
employment and integrated services.
(2) Allotments to covered states.--
(A) 15 or more covered states.--
(i) In general.--In the case that, as of a
date determined appropriate by the Secretary,
there are 15 or more covered States the
Secretary shall allot to each covered State a
grant in an amount equal to the sum of the
allotted to such State under clauses (ii) and
(iii).
(ii) Allotment based on number of employees
under special certificates.--From the total
amount that is 70 percent of the funds
appropriated under subsection (a) and not
reserved under paragraph (1), the Secretary
shall allot to each covered State an amount
that bears the same relationship to such total
amount as the number of people with
disabilities who are employed under a special
certificate in the covered State bears to the
total number of people with disabilities who
are employed under a special certificate in all
covered States.
(iii) Allotment based on employers with
special certificates.--From the total amount
that is 30 percent of the funds appropriated
under subsection (a) and not reserved under
paragraph (1), the Secretary shall allot to
each covered State an amount that bears the
same relationship to such total amount as the
number of employers in the covered State who
have in effect a special certificate bears to
the total number of employers in all covered
States who have in effect such a certificate.
(B) 14 or fewer covered states.--In the case that,
as of the date determined appropriate by the Secretary
under subparagraph (A), there are fewer than 15 covered
States, the Secretary shall award grants to each
covered State on a competitive basis in an amount that
the Secretary determines necessary to accomplish the
purpose of the grant described in subsection (a).
(C) Covered state.--In this subsection, the term
``covered State'' means a State that--
(i) is not described in subsection (c)(3);
and
(ii) submits an application under
subsection (c) that meets the applicable
requirements under such subsection.
(3) Duration of awards.--A grant under this section shall
be awarded for a period of 5 years.
(4) Cutoff.--The Secretary may not issue a grant under this
subsection after September 30, 2025.
(c) Applications.--
(1) In general.--To be eligible to receive a grant under
this section, a State shall submit an application to the
Secretary at such time, in such manner, and including such
information as the Secretary may reasonably require.
(2) Contents.--In the case of a State not described in
paragraph (3), an application submitted under paragraph (1)
shall include--
(A) a description of the status of the employers in
the State providing employment using special
certificates, which may include--
(i) the number of employers in the State
using special certificates to employ and pay
people with disabilities;
(ii) the number of employees in the State
employed under a special certificate;
(iii) the average number of hours such
employees work per week; and
(iv) the average hourly wage for such
employees;
(B) a description of activities to be funded under
the grant, and the goals of such activities, including
the activities of the State with respect to competitive
integrated employment for people with disabilities; and
(C) assurances that--
(i) the activities carried out under the
grant will, by not later than the end of the 5-
year grant period, result in--
(I) each employer in the State
voluntarily ceasing to use special
certificates by the end of the 5-year
grant period and no longer applying for
or renewing such certificates; or
(II) in the case of an employer in
the State that, as of the date of
enactment of this Act, provides
employment using special certificates,
the employer--
(aa) transforms its
business and program models as
described in subsection
(d)(1)(A); or
(bb) ceases providing
specialized employment services
for people with disabilities;
and
(ii) each individual in the State who is
employed under a special certificate on or
after the date of enactment will be employed in
competitive integrated employment or a
combination of competitive integrated
employment and integrated services, including
by compensating all employees of the employer
for all hours worked at a rate that is--
(I) not less than the higher of the
rate specified in section 6(a)(1) of
the Fair Labor Standards Act of 1938
(29 U.S.C. 206(a)(1)) or the rate
specified in the applicable State or
local minimum wage law, or the
applicable prevailing wage rate under
the McNamara-O'Hara Service Contract
Act (41 U.S.C. 6701 et seq.); and
(II) not less than the rate paid by
the employer for the same or similar
work performed by other employees who
are not people with disabilities, and
who are similarly situated in similar
occupations by the same employer and
who have similar training, experience,
and skills; and
(iii) the State will establish an advisory
council described in subsection (e) to monitor
and guide the process of transforming business
and program models of employers in the State as
described in subsection (d)(1)(A).
(3) Applications for states receiving amount from
reservation.--In the case of a State that, as of the date of
enactment of this Act, is determined by the Secretary to have
phased out or to be in the process of phasing out the use of
special certificates in the State, an application under this
subsection from such State shall include only the information
described in paragraph (2)(B).
(d) Use of Funds.--
(1) In general.--In the case of a State not described in
paragraph (2), such State shall use the grant funds for each of
the following activities:
(A) Identifying each employer in the State that
will transform its business and program models from
employing people with disabilities using special
certificates to employing people with disabilities in
competitive integrated employment settings, or a
setting involving a combination of competitive
integrated employment and integrated services.
(B) Implementing a service delivery infrastructure
to support people with disabilities who have been
employed under special certificates through such a
transformation, including providing enhanced integrated
services to support people with the most significant
disabilities.
(C) Expanding competitive integrated employment and
integrated services to be provided to such people as a
result of transformations described in subparagraph
(A).
(2) States receiving amount from reservation.--A State
that, as of the date of enactment of this Act, is determined by
the Secretary to have phased out or to be in the process of
phasing out the use of special certificates in the State, shall
use the grant funds for expansion of competitive integrated
employment and integrated services to be provided to people
with disabilities.
(e) Members of the Advisory Council.--A State receiving a grant
under this section shall, for the purpose described in subsection
(c)(2)(C)(iii), establish an advisory council composed of the
following:
(1) People with disabilities, including people with
intellectual or developmental disabilities and people with
mental health disabilities, who are or were employed under a
special certificate, who shall comprise not less than 25
percent of the members of such advisory council.
(2) Family members of a person with an intellectual,
developmental, or mental health disability who is or was
employed under a special certificate or is employed in
competitive integrated employment.
(3) An employer providing competitive integrated
employment.
(4) An employer providing employment under special
certificates.
(5) Representatives of relevant State agencies with
expertise in competitive integrated employment, disability
organizations with such expertise, and disability related
offices and groups with such expertise.
SEC. 22202. DEFINITIONS.
In this part:
(1) Competitive integrated employment.--The term
``competitive integrated employment'' has the meaning given
such term in section 7(5) of the Rehabilitation Act of 1973 (29
U.S.C. 705(5)).
(2) Employee; employer.--The terms ``employee'' and
``employer'' have the meanings given such terms in section 3 of
the Fair Labor Standards Act of 1938 (29 U.S.C. 203).
(3) Integrated community participation and wraparound
services; integrated services.--The terms ``integrated
community participation and wraparound services'' or
``integrated services'' mean services for people with
disabilities that are--
(A) designed to assist such people in developing
skills and abilities to reside successfully in home and
community-based settings;
(B) provided in accordance with a person-centered
written plan of care;
(C) created using evidence-based practices that
lead to such people--
(i) maintaining competitive integrated
employment;
(ii) achieving independent living; or
(iii) maximizing socioeconomic self-
sufficiency, optimal independence, and full
participation in the community;
(D) provided in a community location that is not
specifically intended for people with disabilities;
(E) provided in a location that--
(i) allows the people receiving the
services to interact with people without
disabilities to the fullest extent possible;
and
(ii) makes it possible for the people
receiving the services to access community
resources that are not specifically intended
for people with disabilities and to have the
same opportunity to participate in the
community as people who do not have a
disability; and
(F) provided in multiple locations to allow the
individual receiving the services to have options,
thereby--
(i) optimizing individual initiative,
autonomy, and independence; and
(ii) facilitating choice regarding services
and supports, and choice regarding the provider
of such services.
(4) People with disabilities.--The term ``people with
disabilities'' includes individuals described in section
14(c)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C.
214(c)(1)).
(5) State.--The term ``State'' has the meaning given the
term in section 3 of the Fair Labor Standards Act of 1938 (29
U.S.C. 203)).
PART 4--RECRUITMENT, EDUCATION AND TRAINING, RETENTION, AND CAREER
ADVANCEMENTS FOR THE DIRECT CARE WORKFORCE
SEC. 22301. DEFINITIONS.
In this part:
(1) Cte definitions.--The terms ``evidence-based'' and
``work-based learning'' have the meanings given such terms in
section 3 of the Carl D. Perkins Career and Technical Education
Act of 2006 (20 U.S.C. 2302).
(2) Wioa definitions.--The terms ``career pathway'',
``career planning'', ``individual with a barrier to
employment'', ``local board'', ``older individual'', ``on-the-
job training'', ``recognized postsecondary credential'', and
``State board'' have the meanings given such terms in section 3
of the Workforce Innovation and Opportunity Act (29 U.S.C.
3102).
(3) Other definitions.--
(A) Career and technical education school.--The
term ``career and technical education school'' has the
meaning given the term ``eligible recipient'' in
section 3 of the 3 of the Carl D. Perkins Career and
Technical Education Act of 2006 (20 U.S.C. 2302).
(B) Direct care worker.--The term ``direct care
worker'' means--
(i) a direct support professional;
(ii) any worker who provides direct care
services in home or community-based setting;
(iii) a respite care provider who provides
short-term support and care to an individual in
order to provide relief to a family caregiver;
(iv) a palliative care worker;
(v) a direct care worker, as defined in
section 799B of the Public Health Service Act
(42 U.S.C. 795p); or
(vi) an individual in any other position or
job related to those described in clauses (i)
through (vi), as determined by the Secretary in
consultation with the Secretary of Health and
Human Services acting through the Administrator
for the Administration for Community Living.
(C) Eligible entity.--The term ``eligible entity''
means an entity that is--
(i) a State;
(ii) a labor organization, a joint labor-
management organization, or a Multi-Employer
Training and Education Fund;
(iii) a nonprofit organization with
experience in aging, disability, supporting the
rights and interests of direct care workers, or
training or educating direct care workers;
(iv) an Indian Tribe or Tribal organization
(as defined in section 4 of the Indian Self-
Determination and Education Assistance Act (25
U.S.C. 5304));
(v) an urban Indian organization (as
defined in section 4 of the Indian Health Care
Improvement Act (25 U.S.C. 1603));
(vi) a State board or local board;
(vii) an area agency on aging (as defined
in section 102 of the Older Americans Act of
1965 (42 U.S.C. 3002));
(viii) when in partnership with an entity
described in any of clauses (i) through (vii)--
(I) an institution of higher
education (as defined in section 101 of
the Higher Education Act of 1965 (20
U.S.C. 1001) or section 102(a)(1)(B) of
such Act (20 U.S.C. 1002(a)(1)(B))); or
(II) a career and technical
education school; or
(ix) a consortium of entities listed in any
of clauses (i) through (vii).
(D) Family caregiver.--The term ``family
caregiver'' means a paid or unpaid adult family member
or other individual who has a significant relationship
with, and who provides a broad range of assistance to,
an individual with a chronic or other health condition,
disability, or functional limitation.
(E) Home and community-based services.--The term
``home and community-based services'' has the meaning
given such term in section 9817(a)(2) of the American
Rescue Plan Act of 2021 (Public Law 117-2).
(F) Person with a disability.--The term ``person
with a disability'' means an individual with a
disability as defined in section 3 of the Americans
with Disabilities Act of 1990 (42 U.S.C. 12102).
(G) Pre-apprenticeship program.--The term ``pre-
apprenticeship program'' means a program that
articulates to a registered apprenticeship program.
(H) Registered apprenticeship program.--The term
``registered apprenticeship program'' means an
apprenticeship program registered under the Act of
August 16, 1937 (commonly known as the ``National
Apprenticeship Act''; 50 Stat. 664, chapter 663; 29
U.S.C. 50 et seq.).
(I) Secretary.--The term ``Secretary'' means the
Secretary of Labor.
(J) State.--The term ``State'' means each of the 50
States of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, American Samoa, Guam,
the United States Virgin Islands, and the Commonwealth
of the Northern Mariana Islands.
SEC. 22302. GRANTS TO SUPPORT THE DIRECT CARE WORKFORCE.
(a) Grants Authorized.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $1,480,000,000, to
remain available until September 30, 2031, for awarding, on a
competitive basis, grants to eligible entities to carry out the
activities described in subsection (c) with respect to direct care
workers.
(b) Applications; Award Basis.--
(1) Applications.--
(A) In general.--An eligible entity seeking a grant
under subsection (a) shall submit to the Secretary an
application at such time, in such manner, and
containing such information as the Secretary, in
coordination with the Secretary of Health and Human
Services acting through the Administrator of the
Administration for Community Living, may require.
(B) Contents.--Each application under subparagraph
(A) shall include--
(i) a description of the type or types of
direct care workers the entity plans to serve
through the activities supported by the grant;
(ii) a description of the one or more
eligible partnering entities collaborating to
carry out the activities described in
subsection (c);
(iii) an assurance that--
(I) the eligible entity will
establish a consultative process, as
described in subsection (c)(2); and
(II) the eligible entity will
consult on the implementation of the
grant, or coordinate the activities of
the grant, with the agencies in the
State that are responsible for
developmental disability services,
aging, education, workforce
development, and Medicaid, to the
extent that each such entity is not the
eligible entity; and
(iv) a plan for ensuring that the eligible
entity will remain neutral in any organizing
effort involving direct care workers served by
the grant who seek to form, join, or assist a
labor organization.
(2) Consideration.--In awarding grants under subsection
(a), the Secretary, in coordination with the Secretary of
Health and Human services acting through the Administrator of
the Administration for Community Living, shall ensure equitable
geographic diversity in distribution of the grants, including
by selecting recipients in rural areas and selecting recipients
in urban areas.
(3) Duration of grants.--A grant awarded under this section
shall be for a period of 3 years, and may be renewed. The
Secretary, in coordination with the Secretary of Health and
Human Services acting through the Administrator of the
Administration for Community Living, shall award grants
(including any renewals) under this section in 3-year cycles
subject to the limits set forth in subsection (a).
(c) Use of Funds.--
(1) In general.--
(A) Required use of funds.--Each eligible entity
receiving a grant under subsection (a) shall use the
grant funds to provide competitive wages, benefits, and
other supportive services, including transportation,
child care, dependent care, workplace accommodations,
and workplace health and safety protections, to the
direct care workers served by the grant that are
necessary to enable such workers to participate in the
activities supported by the grant.
(B) Additional activities.--In addition to the
requirement described in subparagraph (A), each
eligible entity receiving a grant under subsection (a)
shall use the grant funds for one or more of the
following activities:
(i) Developing and implementing a strategy
for the recruitment of direct care workers.
(ii) Developing and implementing a strategy
for the retention of direct care workers using
evidence-based best practices, such as
providing mentoring to such workers.
(iii) Developing or implementing an
education and training program for the direct
care workers served by the grant, which shall
include--
(I) education and training on--
(aa) the rights of direct
care workers under applicable
Federal, State, or local
employment law on--
(AA) wages and
hours, including under
the Fair Labor
Standards Act of 1938
(29 U.S.C. 201 et
seq.);
(BB) safe working
conditions, including
under the Occupational
Safety and Health Act
of 1970 (29 U.S.C. 651
et seq.);
(CC) forming,
joining, or assisting a
labor organization,
including under the
National Labor
Relations Act (29
U.S.C. 153 et seq.);
and
(DD) other
applicable terms and
conditions of
employment; and
(bb) relevant Federal and
State laws (including
regulations) on the provision
of home and community-based
services; and
(II) providing a progressively
increasing, clearly defined schedule of
hourly wages to be paid to each direct
care worker served by the grant for
each hour the worker spends on
education or training provided through
the program described in this clause,
with a schedule of hourly wages that--
(aa) is consistent with
measurable skill gains or
attainment of a recognized
postsecondary credential
received as a result of
participation in or completion
of such education or training
program; and
(bb) ensures that each such
worker is compensated for each
hour the worker spends on
education or training through
such program at an entry rate
that is not less than the
greater of the applicable
minimum wage required by other
applicable Federal, State, or
local law, or a collective
bargaining agreement;
(III) developing and implementing a
strategy for the retention and career
advancement of the direct care workers
served by the grant, including
providing career planning for the
direct care workers served by the grant
to support the identification of
advancement opportunities, and career
pathways in the direct care or home
care sectors; and
(IV) using evidence-based models
and standards for achievement for the
attainment of any associated recognized
postsecondary credentials, which
include--
(aa) supporting
opportunities to participate in
pre-apprenticeship or
registered apprenticeship
programs, work-based learning,
or on-the-job training;
(bb) providing on-the-job
supervision or mentoring to
support the development of
related skills and competencies
throughout completion of such
credentials; and
(cc) training on the in-
demand skills and competencies
of direct care workers served
by the grant, including the
provision of culturally
competent and disability
competent supports and
services.
(2) Consultation.--Each eligible entity receiving a grant
under this section shall consult in the development and
implementation of the grant with--
(A) individuals with disabilities;
(B) older individuals;
(C) direct care workers;
(D) family caregivers, guardians, or family
members; or
(E) representatives of--
(i) organizations representing the rights
and interests of people receiving home and
community-based services;
(ii) provider agencies or employers of
direct care workers served by the grant;
(iii) labor or joint labor-management
organizations, or advocacy organizations,
representing direct care workers served by the
grant; or
(iv) institutions of higher education or
career and technical education schools
providing education and training on direct
care.
(d) Supplement and Not Supplant.--An eligible entity receiving a
grant under this section shall use such grant only to supplement, and
not supplant, the amount of funds that, in the absence of such grant,
would be available to the eligible entity to address the recruitment,
education and training, retention, or career advancement of direct care
workers in the State served by the grant.
PART 5--WORKFORCE DEVELOPMENT PROGRAMS IN SUPPORT OF COMMUNITIES AND
THE ENVIRONMENT
SEC. 22401. CORPORATION FOR NATIONAL AND COMMUNITY SERVICE.
(a) In General.--
(1) Americorps state and national programs.--
(A) In general.--In addition to amounts otherwise
made available, there is appropriated for fiscal year
2023, out of any money in the Treasury not otherwise
appropriated, to the Corporation for National and
Community Service, $1,305,000,000, to remain available
until September 30, 2027, for carrying out national
service programs authorized under section 122(a)(3)(B)
of the National and Community Service Act of 1990 (42
U.S.C. 12572(a)(3)(B)) which shall be used to make
funding adjustments to existing (as of the date of
enactment of this Act) awards and make new awards to
entities to support national service programs
authorized under the AmeriCorps State and National
program (whether or not the entities are already grant
recipients under such provisions on the date of
enactment of this Act) and to increase the living
allowances of participants in national service
programs.
(B) Waiver of matching requirement.--For the
purposes of carrying out this subparagraph, the
Corporation shall waive any match requirement in whole
or in part where a grantee demonstrates such waiver
would increase access and remove barriers for
organizations that serve communities that are adversely
affected by persistent poverty, discrimination, or
inequality.
(2) National civilian community corps.--In addition to
amounts otherwise made available, there is appropriated for
fiscal year 2023, out of any money in the Treasury not
otherwise appropriated, to the Corporation for National and
Community Service, $80,000,000, to remain available until
September 30, 2027, for carrying out the National Civilian
Community Corps authorized under section 152 of the National
and Community Service Act of 1990 (42 U.S.C. 12612).
(3) Volunteers in service to america program.--In addition
to amounts otherwise made available, there is appropriated for
fiscal year 2023, out of any money in the Treasury not
otherwise appropriated, to the Corporation for National and
Community Service, $100,000,000, to remain available until
September 30, 2027, for carrying out the Volunteers in Service
to America (VISTA) program for the purposes described in
section 101 of the Domestic Volunteer Service Act of 1973 (42
U.S.C. 4951), including to increase the living allowances of
volunteers, described in section 105(b) of such Act (42 U.S.C.
4955).
(4) State commissions.--In addition to amounts otherwise
made available, there is appropriated for fiscal year 2023, out
of any money in the Treasury not otherwise appropriated, to the
Corporation for National and Community Service, $40,000,000, to
remain available until September 30, 2027, to make adjustments
to existing (as of the date of enactment of this Act) awards
and new and additional awards, including awards to State
Commissions on National and Community Service, under section
126(a) of the National and Community Service Act of 1990 (42
U.S.C. 12576(a)).
(5) Use of funds.--Amounts made available under paragraphs
(1) through (4) shall be used by the Corporation for National
and Community Service to carry out activities described in
section 122(a)(3)(B) of the National and Community Service Act
of 1990 (42 U.S.C. 12572(a)(3)(B)) and for activities related
to environmental resiliency, remediation, or mitigation by--
(A) ensuring at least 50 percent of such funds are
awarded to entities that serve, and have representation
from, low-income communities, Tribal, Alaska Native, or
Native Hawaiian communities, or communities
experiencing (or at risk of experiencing) adverse
health and environmental conditions;
(B) taking into account the diversity of
communities served by such entities and the diversity
of AmeriCorps members serving in these projects,
including racial, ethnic, socioeconomic, linguistic, or
geographic diversity, and utilizing culturally
competent and multilingual strategies in the provision
of services to communities and in the recruitment of
members;
(C) supporting projects that are planned and
implemented with the community served by such
activities;
(D) providing participants with workforce
development opportunities such as pre-apprenticeship
programs that articulate to registered apprenticeships,
and pathways to post-service employment in high-quality
jobs or registered apprenticeships; and
(E) coordinating with and providing resources to
the Departments of Labor and Education to improve the
readiness of participants to transition to high-quality
jobs or further education.
(b) Administrative Costs.--
(1) In general.--In addition to amounts otherwise made
available, there is appropriated for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, to the
Corporation for National and Community Service, $199,650,000,
to remain available until September 30, 2027, which shall be
used for administrative expenses as provided under section
501(a)(5) of the National and Community Service Act of 1990 (42
U.S.C. 12681(a)(5)) and under section 504(a) of the Domestic
Volunteer Service Act of 1973 (42 U.S.C. 5084(a)), including an
evaluation of the Corporation's information technology
security, corrective actions to address recommendations arising
from audits of the agency and the National Service Trust, and,
in consultation with the Inspector General, the development of
grant fraud prevention and detection controls and risk-based
anti-fraud grant monitoring. Not less than 5 percent of funds
under this paragraph shall be reserved for outreach to and
recruitment of members from communities traditionally
underrepresented in the programs and activities funded under
this section.
(2) Project, operations, and management plan.--In addition
to amounts otherwise made available, there is appropriated for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, to the Corporation for National and
Community Service, $350,000, to remain available until
September 30, 2023, which shall be used by the Chief Executive
Officer of the Corporation for National and Community Service
in collaboration with the Department of Labor, to develop,
issue, and implement a project, operations, and management plan
for funds appropriated under this section. In developing the
financial management portion of the plan, the Chief Executive
Officer shall consult with the Inspector General. Such plan
shall be provided to the Committee on Education and Labor of
the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate prior to
obligating funds or making outlays for funds appropriated under
subsection (a).
(c) Office of Inspector General.--In addition to amounts otherwise
made available, there is appropriated for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, to the Office of
Inspector General of the Corporation for National and Community
Service, $15,000,000 to remain available until September 30, 2030,
which shall be used by the Office of Inspector General of the
Corporation for National and Community Service for salaries and
expenses necessary for oversight and audit of programs, activities and
operations funded under this section.
(d) National Service Trust.--In addition to amounts otherwise made
available, there is appropriated for fiscal year 2023, out of any money
in the Treasury not otherwise appropriated, to the National Service
Trust, $260,000,000, to remain available until expended, for--
(1) administration of the National Service Trust; and
(2) payment to the Trust for the provision of educational
awards pursuant to section 145(a)(1)(A) and section 148 of the
National and Community Service Act of 1990 (42 U.S.C.
12601(a)(1)(A); 12604).
SEC. 22402. DEPARTMENT OF LABOR.
(a) In General.--
(1) Youthbuild program.--In addition to amounts otherwise
made available, there is appropriated for fiscal year 2023, out
of any money in the Treasury not otherwise appropriated, to the
Department of Labor, $250,000,000, to remain available until
September 30, 2027, except that no amounts may be expended
after September 30, 2031, for the YouthBuild program authorized
under section 171(c)(1) of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3226(c)(1)), including for the
purposes of improving and expanding access to services,
stipends, wages, and benefits described in subsections
(c)(2)(A)(vii) and (c)(2)(F) of section 171 of such Act.
(2) Job corps program.--In addition to amounts otherwise
made available, there is appropriated for fiscal year 2023, out
of any money in the Treasury not otherwise appropriated, to the
Department of Labor, $500,000,000, to remain available until
September 30, 2030, except that no amounts may be expended
after September 30, 2031, for the Job Corps program authorized
under section 143 of the Workforce Innovation and Opportunity
Act (29 U.S.C. 3193 et seq.), including Civilian Conservation
Centers as described in section 147(d)(1) of such Act (29
U.S.C. 3197) and for the purposes of improving and expanding
access to allowances and supports described in section 150 of
such Act (29 U.S.C. 3200).
(3) Ex-offender activities.--In addition to amounts
otherwise made available, there is appropriated for fiscal year
2023, out of any money in the Treasury not otherwise
appropriated, to the Department of Labor, $500,000,000, to
remain available until September 30, 2027, except that no
amounts may be expended after September 30, 2031, for ex-
offender activities under the authority of section 169(b)(5) of
the Workforce Innovation and Opportunity Act (29 U.S.C.
3224(b)(5)).
(4) Apprenticeship programs.--In addition to amounts
otherwise made available, there is appropriated for fiscal year
2023, out of any money in the Treasury not otherwise
appropriated, to the Department of Labor, $1,000,000,000, to
remain available until September 30, 2027, except that no
amounts may be expended after September 30, 2031, to carry out
activities through grants, cooperative agreements, contracts or
other arrangements, with States and other appropriate entities,
including equity intermediaries and business and labor industry
partner intermediaries, to create or expand only apprenticeship
programs registered under the Act of August 16, 1937 (commonly
known as the ``National Apprenticeship Act''; 50 Stat. 664,
chapter 663; 29 U.S.C. 50 et seq.), youth apprenticeship
programs, and pre-apprenticeship programs articulating to
apprenticeship programs registered under such Act.
(5) Paid youth employment activities.--In addition to
amounts otherwise made available, there is appropriated for
fiscal year 2023, out of any money in the Treasury not
otherwise appropriated, to the Department of Labor,
$249,800,000, to remain available until September 30, 2030,
except that no amounts may be expended after September 30,
2031, for paid youth employment activities under the authority
of section 169(b)(5) of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3224(b)(5)) for in-school and out-
of-school youth as defined in section 3 of such Act (29 U.S.C.
3102).
(b) Use of Funds.--Amounts made available under paragraphs (1)
through (8) of subsection (a) shall be used for activities to include
training for careers in industry sectors and occupations related to
environmental resiliency, remediation, or mitigation and activities to
increase diversity within such industry sectors and occupations, taking
into account the diversity of communities and participants served by
such programs, including racial, ethnic, socioeconomic, linguistic, or
geographic diversity.
(c) Project, Operations, and Management Plan.--In addition to
amounts otherwise made available, there is appropriated for fiscal year
2022, out of any money in the Treasury not otherwise appropriated, to
the Department of Labor, $200,000, to remain available until September
30, 2023, which shall be used by the Secretary of Labor in
collaboration with the Chief Executive Officer of the Corporation for
National and Community Service, to develop and issue a project,
operations, and management plan for funds appropriated under this
section. Such plan shall be provided to the Committee on Education and
Labor of the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate prior to obligating funds
or making outlays for funds appropriated under subsection (a).
PART 6--DEPARTMENT OF LABOR INSPECTOR GENERAL FUNDING
SEC. 22501. DEPARTMENT OF LABOR INSPECTOR GENERAL FUNDING.
In addition to amounts otherwise available, there is appropriated
to the Office of Inspector General of the Department of Labor for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available until expended for
salaries and expenses necessary for oversight, investigations, and
audits of programs, grants, and projects of the Department of Labor
funded under this subtitle and subtitle B of this title.
Subtitle D--Child Care and Universal Pre-Kindergarten
SEC. 23001. BIRTH THROUGH FIVE CHILD CARE AND EARLY LEARNING
ENTITLEMENT.
(a) Short Title.--This section may be cited as the ``Birth Through
Five Child Care and Early Learning Entitlement Act''.
(b) Definitions.--
(1) In general.--The definitions in section 658P of the
Child Care and Development Block Grant Act of 1990 (42 U.S.C.
9858n) shall apply to this section, except as provided in
subparagraph (2) and as otherwise specified.
(2) Additional terms.--In this section:
(A) Child care certificate.--
(i) In general.--The term ``child care
certificate'' means a certificate (that may be
a check or other disbursement) that is issued
by a State or local government under this
section directly to a parent who may use such
certificate only as payment for child care
services or as a deposit for child care
services if such a deposit is required of other
children being cared for by the provider.
(ii) Rule.--Nothing in this section shall
preclude the use of such certificates for
sectarian child care services if freely chosen
by the parent. For the purposes of this
section, child care certificates shall be
considered Federal financial assistance to the
provider.
(B) Child experiencing homelessness.--The term
``child experiencing homelessness'' means an individual
who is a homeless child or youth under section 725 of
the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11434a).
(C) Eligible activity.--The term ``eligible
activity'', with respect to a parent, shall include, at
minimum, activities consisting of--
(i) full-time or part-time employment;
(ii) self-employment;
(iii) job search activities;
(iv) job training;
(v) secondary, postsecondary, or adult
education, including education through a
program of high school classes, a course of
study at an institution of higher education,
classes towards an equivalent of a high school
diploma recognized by State law, or English as
a second language classes;
(vi) health treatment (including mental
health and substance use treatment) for a
condition that prevents the parent from
participating in other eligible activities;
(vii) activities to prevent child abuse and
neglect, or family violence prevention or
intervention activities;
(viii) employment and training activities
under the supplemental nutrition assistance
program established under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.);
(ix) employment and training activities
under the Workforce Innovation and Opportunity
Act (29 U.S.C. 3101)
(x) work activities under the program of
block grants to States for temporary assistance
for needy families under part A of title IV of
the Social Security Act (42 U.S.C. 601 et
seq.); and
(xi) taking leave under the Family and
Medical Leave Act of 1993 (29 U.S.C. 2601 et
seq.) (or equivalent provisions for Federal
employees), a State or local paid or unpaid
leave law, or a program of employer-provided
leave.
(D) Eligible child.--The term ``eligible child''
means an individual (without regard to the immigration
status of the individual or of any parent of the
individual)--
(i) who is less than 6 years of age;
(ii) who is not yet in kindergarten;
(iii) whose family income--
(I) does not exceed 100 percent of
the State median income for a family of
the same size for fiscal year 2022;
(II) does not exceed 115 percent of
such State median income for fiscal
year 2023;
(III) does not exceed 130 percent
of such State median income for fiscal
year 2024; and
(IV) for each of the fiscal years
2025 through 2027, is of any level;
(iv) whose family assets do not exceed
$1,000,000 (as certified by a member of such
family); and
(v) who--
(I) resides with a parent
participating in an eligible activity;
(II) is included in a population of
vulnerable children identified by the
lead agency involved, which at a
minimum shall include children
experiencing homelessness, children in
foster care, children in kinship care,
and children who are receiving, or need
to receive, child protective services;
or
(III) resides with a parent who is
more than 65 years of age.
(E) Eligible child care provider.--
(i) In general.--The term ``eligible child
care provider'' means a center-based child care
provider, a family child care provider, or
other provider of child care services for
compensation that--
(I) is licensed to provide child
care services under State law;
(II) participates in the State's
tiered system for measuring the quality
of child care providers described in
subsection(f)(4)(B)--
(aa) not later than the
last day of the third fiscal
year for which the State
receives funds under this
section; and
(bb) for the remainder of
the period for which the
provider receives funds under
this section; and
(III) satisfies the State and local
requirements applicable to eligible
child care providers under the Child
Care and Development Block Grant Act of
1990 (42 U.S.C. 9857 et seq.),
including those requirements described
in section 658E(c)(2)(I) of such Act
(42 U.S.C. 9858c(c)(2)(I)).
(ii) Special rule.--A child care provider
who has been eligible to provide child care
services in a State for children receiving
assistance under the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9857 et
seq.) on the date the State submits an
application for funds under this section and
remains in good standing with the State, shall
be deemed to be an eligible child care provider
under this section for 3 years after the State
receives funding under this section.
(F) FMAP.--The term ``FMAP'' has the meaning given
the term ``Federal medical assistance percentage'' in
the first sentence of section 1905(b) of the Social
Security Act (42 U.S.C. 1396d(b)).
(G) Family child care provider.--Family child care
provider means one or more individuals who provide
child care services less than 24 hours per day per
child, in a private residence other than the residences
of the children, unless care for 24 hours is provided
due to the nature of the parent(s)' work.
(H) Inclusive care.--The term ``inclusive'', with
respect to care (including child care), means care
provided by an eligible child care provider--
(i) for whom the percentage of children
served by the provider who are children with
disabilities or infants or toddlers with
disabilities reflects the prevalence of
children with disabilities and infants and
toddlers with disabilities (whichever the
provider serves) among children within the
State involved; and
(ii) that provides care and full
participation for children with disabilities
and infants and toddlers with disabilities
(whichever the provider serves) alongside
children who are--
(I) not children with disabilities;
and
(II) not infants and toddlers with
disabilities.
(I) Infant or toddler.--The term ``infant or
toddler'' means an individual who is less than 3 years
of age.
(J) Infant or toddler with a disability.--The term
``infant or toddler with a disability'' has the meaning
given the term in section 632 of the Individuals with
Disabilities Education Act (20 U.S.C. 1432).
(K) Lead agency.--The term ``lead agency'' means
the agency designated or established under subsection
(e).
(L) State.--The term ``State'' means any of the 50
States and the District of Columbia.
(M) Territory.--The term ``territory'' means the
Commonwealth of Puerto Rico, the Virgin Islands of the
United States, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.
(N) Tribal organization.--The term ``Tribal
organization'' has the meaning given the term in
section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b).
(O) Urban indian organization.--The term ``Urban
Indian organization'' has the meaning given the term in
section 4 of the Indian Health Care Improvement Act (25
U.S.C. 1603).
(c) Appropriations.--
(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Department of Health
and Human Services, out of any money in the Treasury not
otherwise appropriated, for carrying out this section--
(A) $20,000,000,000 for fiscal year 2022, to remain
available until September 30, 2025,
(B) $30,000,000,000 for fiscal year 2023, to remain
available until September 30, 2026
(C) $40,000,000,000 for fiscal year 2024, to remain
available until September 30, 2027;
(D) such sums as may be necessary for each of
fiscal years 2025 through 2027, to remain available for
one fiscal year.
(2) Administration.--
(A) Fiscal years 2022 through 2024.--In addition to
amounts otherwise available, there is appropriated to
the Department of Health and Human Services, out of any
money in the Treasury not otherwise appropriated,
$130,000,000 for each of fiscal years 2022, 2023, and
2024, to carry out subsection (k). Amounts appropriated
by the preceding sentence shall be available for one
fiscal year.
(B) Fiscal years 2025 through 2027.--From the
amounts appropriated under subsection (a), the
Secretary shall reserve, to carry out subsection (k),
up to 1 percent of such amounts for each of fiscal
years 2025, 2026, and 2027, which shall be in addition
to amounts otherwise available for this purpose.
Amounts appropriated by the preceding sentence shall be
available for one fiscal year.
(d) Establishment of Birth Through Five Child Care and Early
Learning Entitlement Program.--
(1) In general.--The Secretary is authorized to administer
a child care and early learning entitlement program under which
families, in States, territories, and Indian Tribes with an
approved application under subsection (f) or (g), shall be
provided an opportunity to obtain high-quality child care
services for eligible children, subject to the requirements of
this section.
(2) Assistance for every eligible child.--Beginning on
October 1, 2024, every family who applies for assistance under
this section with respect to a child in a State with an
approved application under subsection (g), or in a territory or
Indian tribe with an approved application under subsection (f),
and who is determined, by a lead agency (or other entity
designated by a lead agency) following standards and procedures
established by the Secretary by rule, to be an eligible child,
shall be offered child care assistance in accordance with and
subject to the requirements and limitations of this section.
(e) Lead Agency.--The Governor of a State or the head of a
territory or Indian tribe, desiring to receive assistance under this
section shall designate an agency (which may be an appropriate
collaborative agency), or establish a joint interagency office--
(1) to serve as the lead agency for the State, territory,
or Indian tribe under this section; and
(2) to administer, directly or through other governmental
or nongovernmental agencies of the State, territory or Indian
tribe the financial assistance received under this section by
the State, territory, or Indian tribe, including by certifying
the eligibility of children.
(f) Applications and State Plans.--
(1) Application.--To be eligible to receive assistance
under this section, a State shall prepare and submit to the
Secretary for approval an application at such time, in such
manner, and containing a State plan that--
(A) for a transitional State plan, meets the
requirements under subsection (c) and contains such
information as the Secretary may require, to
demonstrate the State will meet the requirements of
this section; and
(B) for a full State plan, meets the requirements
under subsection (d) and contains that information.
(2) Period covered by plan.--A State plan contained in the
application shall be designed to be implemented--
(A) for a transitional State plan, during a 1-year
period; and
(B) for a full State plan, during a 3-year period.
(3) Requirements for transitional state plans.--For a
period of 1 year following the date of enactment of this Act,
the Secretary shall award funds under this section to States
with an approved application that contains a transitional State
plan, submitted under paragraph (1)(A) that includes, at a
minimum--
(A) an assurance that the State will submit a State
plan under paragraph (4); and
(B) a description of how the funds received by the
State under this section will be spent to expand access
to child care assistance and increase the supply and
quality of child care providers within the State, in
alignment with the requirements of this section.
(4) Requirements for full state plans.--The Secretary may
award funds under this section to States with an approved
application that contains a subsequent State plan, submitted
under subsection (a)(2), that includes, at a minimum, the
following:
(A) Payment rates and cost estimation.--
(i) Payment rates.--The State plan shall
certify that payment rates for the provision of
child care services for which assistance is
provided in accordance with this section for
the period covered by the plan, within 3 years
after the State receives funds under this
section--
(I) will be sufficient to meet the
cost of child care, and set in
accordance with a cost estimation model
or cost study described in clause (ii)
that is approved by the Secretary; and
(II) will correspond to differences
in quality (including improved quality)
based on the State's tiered system for
measuring the quality of eligible child
care providers described in
subparagraph (B).
(ii) Cost estimation.--Such State plan
shall--
(I) demonstrate that the State has,
after consulting with relevant entities
and stakeholders, developed and uses a
statistically valid and reliable cost
estimation model or cost study for the
payment rates of child care services in
the State that reflect rates for
providers at each of the tiers of the
State's tiered system for measuring the
quality of child care providers
described in subparagraph (B), and
variations in the cost of child care
services by geographic area, type of
provider, and age of child, and the
additional costs associated with
providing inclusive child care
services; and
(II) certify that the State's
payment rates for child care services
for which assistance is provided in
accordance with this section--
(aa) are set in accordance
with the most recent estimates
from the most recent cost
estimation model or cost study
under subclause (I), so that
providers at each tier of the
tiered system for measuring
provider quality described in
subparagraph (B) receive a
payment that is sufficient to
meet the requirements of such
tier;
(bb) are set so as to
provide payments to providers
not at the top tier of the
tiered system that are
sufficient to enable the
providers to increase quality
to meet the requirements for
the next tier;
(cc) ensure adequate wages
for staff of child care
providers providing such child
care services that--
(AA) at a minimum,
provide a living wage
for all staff of such
child care providers;
and
(BB) are equivalent
to wages for elementary
educators with similar
credentials and
experience in the
State; and
(dd) are adjusted on an
annual basis for cost of living
increases to ensure those
payment rates remain sufficient
to meet the requirements of
this section.
(iii) Payment practices.--Such State plan
shall include an assurance that the State will
implement payment practices that support the
fixed costs of providing child care services.
(B) Tiered system for measuring the quality of
child care providers.--Such State plan shall certify
that the State has implemented, or assure that the
State will implement within 3 years after receiving
funds under this section, a tiered system for measuring
the quality of eligible child care providers who
provide child care services for which assistance is
made available under this section. Such tiered system
shall--
(i) include a set of standards, for
determining the tier of quality of a child care
provider, that--
(I) uses standards for a highest
tier that at a minimum are equivalent
to Head Start program performance
standards described in section
641A(a)(1)(B) of the Head Start Act (42
U.S.C. 9836a(a)(1)(B)) or other
equivalent evidence-based standards
approved by the Secretary; and
(II) includes quality indicators
and thresholds that are appropriate for
child development in different types of
child care provider settings, including
child care centers and the settings of
family child care providers, and are
appropriate for providers serving
different age groups (including mixed
age groups) of children;
(ii) include a different set of standards
that includes indicators, when appropriate, for
care during nontraditional hours of operation;
and
(iii) provide for sufficient resources and
supports for child care providers at tiers
lower than the highest tier to facilitate
progression toward higher quality standards.
(C) Achieving high quality for all children.--Such
State plan shall certify the State has implemented, or
will implement within 3 years of receiving funds under
this section, policies and financing practices that
will ensure all families of eligible children can
choose for the children to attend child care at the
highest quality tier within 6 years after the date of
enactment of this Act.
(D) Compensation.--Such plan shall provide a
certification that the State has or will have within 3
years after receiving funds under this section, a wage
ladder for staff of eligible child care providers
receiving assistance under this section, including a
certification that wages for such staff, at a minimum,
will meet the requirements of subparagraph
(A)(ii)(II)(cc).
(E) Sliding fee scale for copayments.--
(i) In general.--Except as provided in
clauses (ii)(I) and (iii), the State plan shall
provide an assurance that the State will for
the period covered by the plan use a sliding
fee scale described in clause (ii) to determine
a copayment for a family receiving assistance
under this section (or, for a family receiving
part-time care, a reduced copayment that is the
proportionate amount of the full copayment).
(ii) Sliding fee scale.--A full copayment
described in clause (i) shall use a sliding fee
scale that provides that, for a family with a
family income--
(I) of not more than 75 percent of
State median income for a family of the
same size, the family shall not pay a
copayment, toward the cost of the child
care involved for all eligible children
in the family;
(II) of more than 75 percent but
not more than 100 percent of State
median income for a family of the same
size, the copayment shall be more than
0 but not more than 2 percent of that
family income, toward such cost for all
such children;
(III) of more than 100 percent but
not more than 125 percent of State
median income for a family of the same
size, the copayment shall be more than
2 but not more than 4 percent of that
family income, toward such cost for all
such children;
(IV) of more than 125 percent but
not more than 150 percent of State
median income for a family of the same
size, the copayment shall be more than
4 but not more than 7 percent of that
family income, toward such cost for all
such children; and
(V) of more than 150 percent of the
State median income for a family of the
same size, the copayment shall be 7
percent of that family income, toward
such cost for all such children.
(iii) Special rules.--The State shall not
require a copayment under this subparagraph for
any eligible child of a family with a child
that is eligible for a Head Start program under
the Head Start Act (42 U.S.C. 9831 et seq.), or
a child who has been identified as a member of
a population listed in subsection
(b)(2)(D)(v)((II). A State or another entity
may pay a copayment (full or reduced) under
this subparagraph on behalf of a family, but
may not receive Federal reimbursement under
this section for such payment.
(F) Prohibition on charging more than copayment.--
The State plan shall certify that the State shall not
permit a child care provider receiving financial
assistance under this section to charge, for child care
for an eligible child, more than the total of--
(i) the financial assistance provided for
the child under this section; and
(ii) any applicable copayment pursuant to
subparagraph (E).
(G) Eligibility.--The State plan shall assure that
each child who receives assistance under this section
will be considered to meet all eligibility requirements
for such assistance, and will receive such assistance,
for not less than 24 months, and the child's
eligibility determination and redetermination,
including any determination based on the State's
definition of eligible activities, shall be implemented
in such a manner that supports child well-being and
reduces barriers to enrollment, including continuity of
services.
(H) Policies to support access to child care for
underserved populations.--The State plan shall assure
that the State will prioritize increasing access to,
and the quality and the supply of, child care in the
State for underserved populations, including at a
minimum, low-income children, children in underserved
areas, infants and toddlers, children with disabilities
and infants and toddlers with disabilities, children
who are dual language learners, and children who
receive care during nontraditional hours.
(I) Policies.--The State plan shall include a
certification that the State will apply, under this
section, the policies and procedures described in
subparagraphs (A), (B), (I), (J), (K)(i), (R), and (U)
of section 658E(c)(2) of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858c(c)(2)), and
the policies and procedures described in section 658H
of such Act, to child care services provided under this
section.
(J) Licensing.--The State plan shall include an
assurance that the State has or will develop within 3
years after receiving funds under this section,
licensing standards for child care providers and a
pathway to such licensure that is available to and
appropriate for child care providers in a variety of
settings, to ensure providers eligible under the Child
Care and Development Block Grant Act of 1990 (42 U.S.C.
9857 et seq.), have a pathway to become eligible
providers under this section.
(K) Reports.--The State plan shall include an
agreement to provide to the Secretary such periodic
reports, providing a detailed accounting of the uses of
such funds received under this section, as the
Secretary may require for the administration of this
section.
(g) Payments.--
(1) Transition payments for fiscal years 2022 through
2024.--
(A) Reservations and allotments.--
(i) In general.--For each of fiscal years
2022 through 2024, the Secretary shall, from
the amount appropriated under subsection
(c)(1)(A) for each such fiscal year--
(I) reserve not less than 4 percent
for Indian Tribes, Tribal
organizations, and Urban Indian
organizations for child care
assistance;
(II) reserve not less than 0.5 of 1
percent for Guam, American Samoa, the
Commonwealth of the Northern Mariana
Islands, and the United States Virgin
Islands for child care assistance; and
(III) from the amount so
appropriated and not reserved under
subclauses (I) and (II), make
allotments to each State in the same
manner as the Secretary makes such
allotments using the formula under
section 658O(b) of the Child Care and
Development Block Grant Act of 1990 (42
U.S.C. 9858n(b)).
(IV) $9,600,000,000 for each of the
fiscal years 2022 through 2027 to carry
out the program of grants to localities
in subsection (i).
(ii) Definition.--For purposes of this
paragraph, the term ``State'' means the 50
States, the District of Columbia, and the
Commonwealth of Puerto Rico.
(B) Payments.--
(i) Indian tribes, tribal organizations,
and urban indian organizations.--
(I) In general.--For each of fiscal
years 2022 through 2024, from the
amount reserved for Indian Tribes,
Tribal organizations, and Urban Indian
organizations under subparagraph
(A)(i)(I), the Secretary shall make
payments to Indian Tribes, Tribal
organizations, and Urban Indian
organizations, and the Tribes, Tribal
organizations, and Indian organizations
shall be entitled to such payments, for
carrying out programs or activities
consistent with the objectives of this
section.
(II) Applications.--An Indian
Tribe, Tribal organization, or Urban
Indian organization seeking a payment
under clause (ii)(II) shall submit an
application to the Secretary at such
time, in such manner, and containing
such information as the Secretary may
specify, including the agreement
described in subsection (f)(4)(K).
(ii) Territories.--
(I) In general.--For each of fiscal
years 2022 through 2024, from the
amount reserved for territories under
subsection (A)(i)(II), the Secretary
shall make payments to the territories
specified in that paragraph, and the
territories shall be entitled to such
payments, for carrying out programs or
activities consistent with the
objectives of this section.
(II) Applications.--A territory
specified in clause (i)(II) seeking a
payment under this clause shall submit
an application to the Secretary at such
time, in such manner, and containing
such information as the Secretary may
specify, including the agreement
described in subsection (f)(4)(K).
(iii) States.--For each of fiscal years
2022 through 2024, each State that has an
application approved under subsection (f) shall
be entitled to a payment under this clause in
the amount equal to its allotment under
subparagraph (A) for such fiscal year.
(C) Authorities.--Notwithstanding any other
provision of this paragraph, for each of fiscal years
2022 through 2024, the Secretary shall have the
authority to reallot funds that were allotted under
subparagraph (A) from any State without an approved
application under subsection (f) by the date required
by the Secretary, to States with approved applications
under that subsection, to Tribes with an approved
application under subparagraph (A)(ii), and to
territories with an approved application under .
(2) Payments for fiscal years 2025 through 2027.--
(A) In general.--For each of fiscal years 2025
through 2027:
(i) Child care assistance for eligible
children.--
(I) In general.--The Secretary
shall pay to each State with an
approved application under subsection
(f), and that State shall be entitled
to, an amount for each quarter equal to
90 percent of expenditures in the
quarter for child care assistance for
eligible children described under
subsection (h)(2)(B). The Secretary
shall pay to each State with an
approved application under subsection
(f), and that State shall be entitled
to, an amount for each quarter equal to
90 percent of expenditures in the
quarter for the components of the child
care entitlement program described
under subsection (h)(2)(B).
(II) Exception.--Funds reserved
from the amount under subsection
(h)(2)(C) shall be subject to clause
(ii).
(ii) Activities to improve the quality and
supply of child care services.--The Secretary
shall pay to each State with such an approved
application, and that State shall be entitled
to, an amount for each quarter equal to the
FMAP of expenditures in the quarter to carry
out the quality and supply building activities
under subsection (h)(2)(C) subject to the limit
specified in clause (i) of such subsection.
(iii) Administration.--The Secretary shall
pay to each State with such an approved
application, and that State shall be entitled
to, an amount for each quarter equal to 50
percent of expenditures in the quarter for the
costs of administration incurred by the State--
(I) which shall include reasonable
costs incurred by the State in carrying
out the child care program established
in this section; and
(II) which may include, at the
option of the State, costs associated
with carrying out requirements,
policies, and procedures described in
section 658H of the Child Care and
Development Block Grant Act (42 U.S.C.
9858f).
(B) Advance payment; retrospective adjustment.--For
each of fiscal years 2025 through 2027, the Secretary
may make payments under this subsection for each
quarter on the basis of advance estimates of
expenditures submitted by the State and such other
investigation as the Secretary may find necessary, and
shall reduce or increase the payments as necessary to
adjust for any overpayment or underpayment for previous
quarters.
(C) Flexibility in submittal of claims.--Nothing in
this subsection shall be construed as preventing a
State from claiming as expenditures in a quarter
expenditures that were incurred in a previous quarter
and not claimed in such previous quarter.
(D) Territories and tribes.--For each of fiscal
years 2025 through 2027, the Secretary shall make
payments to territories, and Indian tribes, tribal
organizations, and Urban Indian organizations, with
applications submitted as described in subsection (a),
and approved by the Secretary. The territories, Indian
tribes, tribal organizations, and Urban Indian
organizations shall be entitled to such payments to
carry out the activities described in subsection
(h)(2).
(h) Use of Funds.--
(1) Use of funds for transition years.--For each of fiscal
years 2022 through 2024, a State that receives a payment under
subsection (g)(1) shall reserve and use--
(A) 50 percent of such payment for activities to--
(i) expand access to child care assistance
for eligible children (with priority for
providing access for children in families with
incomes less than 85 percent of the State
median income); and
(ii) increase child care provider payment
rates to support the cost of providing high-
quality child care services, including rates
sufficient to support increased wages for staff
of eligible child care providers;
(B) 25 percent of such payment for activities
described in subsection (b)(3); and
(C) 25 percent for activities under subparagraph
(A) or activities under subparagraph (B), as determined
by the State.
(2) Use of funds for fiscal years 2025 through 2027.--
(A) In general.--Starting on October 1, 2024, a
State shall use amounts provided to the State under
subsection (g)(2) for child care services (provided on
a sliding fee scale basis), activities to improve the
quality and supply of child care services, and State
administration.
(B) Child care assistance for eligible children.--
(i) In general.--The State shall ensure
that parents of eligible children can access
child care services provided by an eligible
child care provider through a grant or contract
under clause (ii) or a certificate under clause
(iii).
(ii) Grants and contracts.--The State shall
award grants or contracts to eligible child
care providers, consistent with the
requirements under this section, for the
provision of child care services for eligible
children that, at minimum, support providers'
operating expenses to meet and sustain health,
safety, quality, and wage standards required
under this section.
(iii) Certificates.--The State shall issue
a child care certificate directly to a child
care provider on behalf of a parent who may use
such certificate only as payment for child care
services or as a deposit for child care
services if such a deposit is required of other
children being cared for by the provider,
consistent with the requirements under this
section.
(C) Activities to improve the quality and supply of
child care services.--
(i) Quality child care activities.--
(I) Amount.--For each of fiscal
years 2025 through 2027, from the total
of the annual payments made to the
State for a particular fiscal year, the
State shall reserve and use a quality
child care amount equal to not less
than 5 percent and not more than 10
percent of the amount made available to
the State through such payments for
that particular fiscal year (and shall
reserve and use a proportional amount
from each quarterly payment made to the
State for that particular fiscal year).
(II) Use of quality child care
amount.--Each State shall use the
quality child care amount described in
subclause (I) to implement activities
described in subparagraphs (B) and (C)
that increase the quality and supply of
eligible child care providers, and the
number of available slots in the State
for child care services funded under
this section, prioritizing assistance
for child care providers who are in
underserved communities and who are
providing, or are seeking to provide,
child care services for underserved
populations identified in subsection
(f)(4)(H).
(III) Administration.--Assistance
provided under this subparagraph may be
administered--
(aa) directly by the lead
agency; or
(bb) through other State
government agencies, local or
regional child care resource
and referral organizations,
community development financial
institutions, other
intermediaries with experience
supporting child care
providers, or other appropriate
entities that enter into a
contract with the State to
provide such assistance.
(ii) Activities.--Activities funded under
the quality child care amount described in
clause (i) shall include each of the following:
(I) Startup grants and supply
expansion grants.--
(aa) In general.--From a
portion of the quality child
care amount, a State shall make
startup and supply expansion
grants to support child care
providers who are providing, or
seeking to provide, child care
services to children receiving
assistance under this section,
with priority for providers
providing or seeking to provide
child care in underserved
communities and for underserved
populations identified in
subsection (f)(4)(H), to--
(AA) support
startup and expansion
costs; and
(BB) assist such
providers in meeting
health and safety
requirements and
achieving licensure.
(bb) Requirement.--As a
condition of receiving a
startup or supply expansion
grant under this subclause, a
child care provider shall
commit to meeting the
requirements of an eligible
provider under this section,
and providing child care
services to children receiving
assistance under this section
on an ongoing basis.
(II) Quality grants.--From a
portion of the quality child care
amount, a State shall provide quality
grants to eligible child care providers
providing child care services to
children receiving assistance under
this section to improve the quality of
such providers, including--
(aa) supporting such
providers in meeting or making
progress toward the
requirements for the highest
tier of the State's tiered
system for measuring the
quality of child care providers
under subsection (f)(4)(B); and
(bb) supporting such
providers in sustaining child
care quality.
(III) Facilities grants.--
(aa) In general.--From a
portion of the quality child
care amount, a State shall
provide support, including
through awarding facilities
grants, for remodeling,
renovation, or repair of a
building or facility to the
extent permitted under section
658F(b) of the Child Care and
Development Block Grant Act of
1990 (42 U.S.C. 9858).
(bb) Additional uses.--For
fiscal years 2022 through 2024,
and in subsequent years with
approval from the Secretary, a
State may provide such
facilities grants for
construction, permanent
improvement, or major
renovation of a building or
facility primarily used for
providing child care services,
in accordance with the
following:
(AA) Federal
interest provisions
will not apply to the
renovation or
rebuilding of
privately-owned family
child care homes under
this subclause.
(BB) Eligible child
care providers may not
use funds for buildings
or facilities that are
used primarily for
sectarian instruction
or religious worship.
(CC) The Secretary
shall develop
parameters on the use
of funds under this
subclause for family
child care homes.
(DD) The Secretary
shall not retain
Federal interest after
a period of 10 years in
any facility built,
renovated, or repaired
with funds awarded
under this subclause.
(IV) Additional activities to
improve the quality of child care
services.--A State shall use a portion
of the quality child care amount to
improve the quality of child care
services, which shall include--
(aa) supporting the
training and professional
development of the early
childhood workforce, including
supporting degree attainment
and credentialing for early
childhood educators;
(bb) developing,
implementing, or enhancing the
State's tiered system for
measuring the quality of child
care providers under subsection
(f)(4)(B);
(cc) improving the supply
and quality of developmentally
appropriate child care programs
and services for underserved
populations described in
subsection (f)(4)(H);
(dd) improving access to
child care services for
children experiencing
homelessness and children in
foster care; and
(ee) other activities to
improve the supply and quality
of child care services,
including activities described
in paragraphs (1) through (10)
of section 658G(b) of the Child
Care and Development Block
Grant Act of 1990 42 U.S.C.
9858e).
(V) Technical assistance.--From a
portion of the quality child care
amount, the State shall provide
technical assistance to increase the
supply and quality of eligible child
care providers who are providing, or
seeking to provide, child care services
to children receiving assistance under
this section, including providing
support to enable providers to achieve
licensure.
(i) Grants to Localities.--
(1) Definition of eligible locality.---In this subsection
the term ``eligible locality'' means a city, county, or other
unit of general local government, or a Head Start grantee.
(2)(A) In general.--The Secretary shall use funds reserved
in subsection (g)(1)(A)(i)(IV)) to award local Birth through
Five Child Care and Early Learning Grants to eligible
localities located in States that have made it apparent that
they will not apply for payments under subsection (f). The
Secretary shall award the grants to eligible localities in a
State from the allotment made for that State under subparagraph
(B). The Secretary shall specify the requirements for an
eligible locality to provide access to child care to children
in families with income that does not exceed 200 percent of the
Federal poverty level, which shall, to the greatest extent
practicable, be consistent with the requirements applicable to
States under this section.
(B) Application.--To receive a grant from the
corresponding State allotment under this subsection, an
eligible locality shall submit an application to the
Secretary at such time, in such manner, and containing
such information as the Secretary may require. The
requirements for the application shall, to the greatest
extent practicable, be consistent with the State plan
requirements applicable to States under this subsection
(f).
(C) Priority for localities serving underserved
populations.--In awarding a grant under this paragraph,
the Secretary, shall give priority to eligible
localities seeking to serve underserved populations.
(j) Program Requirements.--
(1) Nondiscrimination.--The following provisions of law
shall apply to any program or activity that receives funds
provided under this section:
(A) Title IX of the Education Amendments of 1972
(20 U.S.C. 1681 et seq.).
(B) Title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d et seq.).
(C) Section 504 of the Rehabilitation Act of 1973
(29 U.S.C. 794).
(D) The Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.).
(E) Section 654 of the Head Start Act (42 U.S.C.
9849).
(2) Maintenance of effort.--To be eligible to receive a
grant under this section, a State shall that receives payments
under this section for a fiscal year, in using the funds made
available through the payments, shall maintain child care
assistance for families at levels not less than the levels
provided by the State in fiscal year 2021. The Secretary shall
determine the State expenditures allowable under this
requirement.
(k) Monitoring and Enforcement.--
(1) Review of compliance with requirements and state
plan.--The Secretary shall review and monitor State compliance
with this section and the plan described in subsection (f)(4)
of the State.
(2) Issuance of rule.--The Secretary shall establish by
rule procedures for--
(A) receiving, processing, and determining the
validity of complaints or findings concerning any
failure of a State to comply with the State plan or any
other requirement of this section;
(B) notifying a State when the Secretary has
determined there has been a failure by the State to
comply with a requirement of this section; and
(C) imposing sanctions under this subsection for
such a failure.
(l) Administration.--Using funds reserved under subsection (b)(2),
the Secretary shall provide technical assistance to States, territories
and Indian Tribes and carry out research, evaluations, and
administration related to this section.
(m) Transition Provisions.--
(1) Treatment of child care and development block grant
funds.--For each of fiscal years 2025, 2026, and 2027, a State
receiving assistance under this section shall not use more than
10 percent of any funds received under the Child Care and
Development Block Grant Act of 1990 to provide child care
assistance to children under the age of 6, who are eligible
under that Act.
(2) Special rules regarding eligibility.--Any child who is
less than 6 years of age, is not yet in kindergarten, and is
receiving assistance under the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9857 et seq.) on the date funding
is first allocated to the lead agency under this section--
(A) shall be deemed immediately eligible to receive
assistance under this section; and
(B) may continue to use the child care provider of
the family's choice.
(3) Transition procedures.--The Secretary is authorized to
institute procedures for implementing this section, including
issuing guidance for States receiving funds under subsection
(g).
SEC. 23002. UNIVERSAL PRESCHOOL.
(a) Definitions.--In this section:
(1) Child experiencing homelessness.--The term ``child
experiencing homelessness'' means an individual who is a
homeless child or youth under section 725 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11434a).
(2) Child with a disability.--The term ``child with a
disability'' has the meaning given the term in section 602 of
the Individuals with Disabilities Education Act (20 U.S.C.
1401).
(3) Comprehensive services.--The term ``comprehensive
services'' means services that are provided to low-income
children and their families, and that are health, educational,
nutritional, social, and other services that are determined,
based on family needs assessments, to be necessary, within the
means of section 636 of the Head Start Act (42 U.S.C. 9831).
(4) Dual language learner.--The term ``dual language
learner'' means an individual who is limited English
proficient, as defined in section 637 of the Head Start Act (42
U.S.C. 9832).
(5) Eligible child.--The term ``eligible child'' means a
child who is age 3 or 4, on the date established by the
applicable local educational agency for kindergarten entry.
(6) Eligible provider.--The term ``eligible provider''
means--
(A) a local educational agency, acting alone or in
a consortium or in collaboration with an educational
service agency (as defined in section 8101 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801)), that is licensed by the State or meets
comparable health and safety standards;
(B) a Head Start agency or delegate agency funded
under the Head Start Act (42 U.S.C. 9831 et seq.);
(C) a licensed center-based child care provider,
licensed family child care provider, or community- or
neighborhood-based network of licensed family child
care providers; or
(D) a consortium of entities described in any of
subparagraphs (A), (B), and (C).
(7) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(8) Local educational agency.--The term ``local educational
agency'' has the meaning given the term in section 8101 of the
Elementary and Secondary Education Act of 1965.
(9) Poverty guidelines.--The term ``poverty guidelines''
means the poverty guidelines updated periodically in the
Federal Register by the Department of Health and Human Services
under the authority of section 673 of the Community Services
Block Grant Act (42 U.S.C. 9902).
(10) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(11) State.--The term ``State'' means each of the several
States and the District of Columbia.
(12) Territory.--The term ``territory'' means each of the
Commonwealth of Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, and the Commonwealth of the Northern
Mariana Islands.
(13) Tribal organization.--The term ``Tribal organization''
has the meaning given the term ``tribal organization'' in
section 658P of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858n).
(14) Urban indian organization.--The term ``Urban Indian
organization'' has the meaning given the term in section 4 of
the Indian Health Care Improvement Act (25 U.S.C. 1602).
(b) Universal Preschool.--
(1) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Secretary for each of
fiscal years 2022 through 2028, out of any money in the
Treasury not otherwise appropriated, such sums as may be
necessary to carry out this section and provide the Federal
share of the cost of universal, high-quality, free, inclusive,
and mixed delivery preschool services, on a voluntary basis, to
children throughout the States under this section, including
providing the Federal share of the cost of State activities
described in subsection (c)(4).
(2) Secretarial reservations.--The Secretary, in
collaboration with the Secretary of Education, shall reserve,
from the amount appropriated under this subsection--
(A) not less than 4 percent for payments to Indian
Tribes, Tribal organizations, and Urban Indian
organizations for activities described in this section;
(B) not more than \1/2\ of 1 percent for the
territories, to be distributed among the territories on
the basis of their relative need, as determined by the
Secretary of Health and Human Services in accordance
with the objectives of this section, for activities
described in this section;
(C) \1/2\ of 1 percent for eligible local entities
that serve children in families who are engaged in
migrant or seasonal agricultural labor, for activities
described in this section;
(D) for Federal activities, including
administration, monitoring, technical assistance, and
research--
(i) $165,000,000 for fiscal year 2022 and
$200,000,000 for fiscal year 2023; and
(ii) for each of fiscal years 2025 through
2028, not more than 2 percent;
(E) $2,500,000,000 for each of fiscal years 2022
through 2027 to improve compensation of Head Start
staff consistent with subparagraphs (A)(i) and
(B)(viii) of section 640(a)(5) of the Head Start Act
(42 U.S.C. 9835(a)(5)), notwithstanding section
653(a)(1) of such Act (43 U.S.C. 9848(a)(1); and
(F) $1,250,000,000 annually for each of fiscal
years 2023 through 2028 to carry out the program of
grants to localities described in subsection (e).
(c) Payments for State Universal Preschool Services.--
(1) In general.--A State that has submitted, and had
approved by the Secretary, a State plan for universal preschool
services is entitled to a payment under this subsection.
(2) Payments to states.--
(A) Preschool services.--The Secretary shall pay to
each State with an approved State plan under paragraph
(6), an amount for each year equal to--
(i) 100 percent of the State's expenditures
in the year for preschool services described in
subsection (d), for each of fiscal years 2022,
2023, and 2024;
(ii) 90 percent of the State's expenditures
in the year for such preschool services, for
fiscal year 2025;
(iii) 80 percent of the State's
expenditures in the year for such preschool
services, for fiscal year 2026;
(iv) 70 percent of the State's expenditures
in the year for such preschool services, for
fiscal year 2027; and
(v) 60 percent of the State's expenditures
in the year for such preschool services, for
fiscal year 2028.
(B) State activities.--The Secretary shall pay to
each State with an approved State plan under paragraph
(6) an amount for a fiscal year equal to 50 percent of
the amount of the State's expenditures for the
activities described in paragraph (4), except that in
no case shall a payment for a fiscal year under this
subparagraph exceed the amount equal to 10 percent of
the State's expenditures described in subparagraph (A)
for such fiscal year.
(C) Non-federal share.--The remainder of the cost
paid by the State for preschool services, that is not
provided under subparagraph (A), shall be considered
the non-Federal share of the cost of those services.
The remainder of the cost paid by the State for State
activities, that is not provided under subparagraph
(B), shall be considered the non-Federal share of the
cost of those activities.
(3) Advance payment; retrospective adjustment.--The
Secretary may make a payment under subparagraph (A) or (B) of
paragraph (2) for a year on the basis of advance estimates of
expenditures submitted by the State and such other
investigation as the Secretary may find necessary, and may
reduce or increase the payment as necessary to adjust for any
overpayment or underpayment for a previous year.
(4) State activities.--A State that receives a payment
under paragraph (2)(B) shall carry out all of the following
activities:
(A) State administration of the State's preschool
services program described in this section.
(B) Supporting a continuous quality improvement
system through the use of data, researching,
monitoring, training, technical assistance,
professional development, and coaching to support
providers participating or seeking to participate in
the State's preschool services program and to support
such providers in meeting the requirements of this
section.
(C) Providing outreach and enrollment support for
families of eligible children, including specific
outreach to families of underserved populations.
(D) Supporting data systems building.
(E) Supporting staff of eligible providers in
pursuing credentials and degrees, including
baccalaureate degrees.
(F) Supporting activities that ensure access to
inclusive preschool programs for children with
disabilities, including, as applicable, activities that
redesign or restructure existing preschool programs, as
of the date of the activity, to improve inclusive
services for children with disabilities.
(G) Providing age-appropriate transportation
services for children, which at a minimum shall include
transportation services for children experiencing
homelessness and children in foster care.
(H) Conducting or updating the State's statewide
needs assessment used for purposes of paragraph
(6)(B)(ii).
(5) Lead agency.--The Governor of a State desiring to
receive a payment under this subsection shall designate a State
lead agency (such as a State agency or joint interagency
office) for the administration of the universal preschool
services program under this section.
(6) State plan.--In order to be eligible for payments under
this section, the Governor of a State shall submit a State plan
for universal, high-quality, free, inclusive, and mixed
delivery preschool services to the Secretary for approval at
such time, in such manner, and containing such information as
the Secretary, in collaboration with the Secretary of
Education, may require. Such plan shall include each of the
following:
(A) A certification that the State has in place
developmentally appropriate, evidence-based preschool
standards that, at a minimum are as rigorous as the
standards specified in subparagraph (B) of section
641A(a)(1) of the Head Start Act (42 U.S.C.
9836a(a)(1)) and include program standards for class
sizes and ratios.
(B) A certification that the State will prioritize
the establishment and expansion of universal, high-
quality, free, inclusive, and mixed delivery preschool
services in high-need communities, as identified by the
State, including--
(i) a description of which high-need
communities the State will prioritize for that
establishment and expansion within and across
those communities;
(ii) a description of how the State
determined which communities are high-need
communities, including how the State used a
research-based methodology, approved by the
Secretary, to identify and serve such
communities, as determined by--
(I) the rate of poverty among
eligible children in the community;
(II) rates of access to high-
quality preschool within the community,
including, as applicable, rates of
disparities for underserved or
vulnerable populations as identified
through a periodic needs assessment
conducted through the preschool
development grants program under
section 9212 of the Every Student
Succeeds Act (42 U.S.C. 9831 note) as
applicable, or through another such
statewide needs assessment; and
(III) other indicators of community
need as required by the Secretary; and
(iii) an assurance that the State will
distribute funding for such preschool services
under this section within such a high-need
community so that a majority of children in the
community are offered such preschool services
before the State establishes and expands free
preschool services in communities with lower
levels of need.
(C) As applicable, a description of how the State
plans to use funding provided under this section to
ensure that existing (as of the date of submission of
the State plan) publicly funded preschool programs in
the State meet the requirements of this section for a
preschool program.
(D) A certification that the State will, in
establishing and operating the program of preschool
services supported under this section, support a mixed
delivery preschool system, including a certification
that the State will facilitate the participation in the
system of Head Start programs and programs offered by
other eligible providers, including providers of
licensed family child care).
(E) An assurance that the State will use funding
provided under this section to ensure children with
disabilities have access to and participate in
inclusive preschool programs consistent with provisions
in the Individuals with Disabilities Education Act,
including an assurance that the State will offer
inclusive programming that supports the least
restrictive environment requirements in Section 619 of
the Individuals with Disabilities Act for all eligible
children who are children with disabilities.
(F) A certification that the State will support the
continuous quality improvement of programs providing
preschool services under this section, including
support through technical assistance, monitoring, and
research.
(G) A certification that the State will ensure a
highly qualified early childhood workforce to support
the requirements of this section.
(H) A description of how the State will coordinate
the State's preschool standards described in
subparagraph (A) with other early learning standards
within the State.
(I) A description of how the State will--
(i) coordinate services and funding
provided under this section with services and
funding for other Federal, State, and local
child care and early childhood development
programs;
(ii) at the option of an Indian Tribe or
Tribal organization in the State, collaborate
and coordinate services and funding with such
Indian Tribe or Tribal organization;
(iii) partner with Head Start agencies to
ensure the full utilization of Head Start
programs within the State;
(iv) collaborate with entities carrying out
programs under section 619 or part C of the
Individuals with Disabilities Education Act, to
support inclusive preschool programs; and
(v) improve transitions of children from
early childhood education to elementary school.
(J) An assurance that the State will partner with
not less than 1 institution of higher education to
facilitate degree attainment for staff of preschool
programs.
(K) An assurance that the State will ensure all
preschool services in the State funded under this
section will be--
(i)(I) universally available to all
children in the State without any additional
eligibility requirements; and
(II) be high quality, free, and
inclusive;
(ii) by not later than 1 year after
receiving such funding, meet the State's
preschool education standards described in
subparagraph (A);
(iii) offer programming that meets the
duration requirements of at least 1,020 annual
hours, in the program performance standards
applicable to Head Start programs described in
section 641A of the Head Start Act (42 U.S.C.
9836a);
(iv) adopt policies and practices to
conduct outreach and provide expedited
enrollment, including prioritization, to--
(I) children experiencing
homelessness;
(II) children in foster care or
kinship care;
(III) children in families who are
engaged in migrant or seasonal
agricultural labor;
(IV) children with disabilities,
including children served under part C
of the Individuals with Disabilities
Education Act who are an eligible child
under section 101(a)(3) of this Act;
and
(V) dual language learners;
(v) provide salaries, and set salary
schedules, for staff that are equivalent to
salaries of elementary school staff with
similar credentials and experience;
(vi) at a minimum, provide a living wage
for all staff of such providers; and
(vii) require educational qualifications
for teachers (excluding individuals who were
employed by an eligible child care provider or
early education program for a cumulative three
of the last five years from the date of
enactment and have the necessary content
knowledge and teaching skills for early
childhood educators, as demonstrated through
measures determined by the State) in the
preschool program including, at a minimum,
requiring that lead teachers in the preschool
program have a baccalaureate degree in early
childhood education or a related field by not
later than 7 years after the date of enactment
of this Act (The requirements specified in this
clause shall not apply to individuals who were
employed by an eligible child care provider or
early education program for a cumulative 3 of
the last 5 years from the date of enactment and
have the necessary content knowledge and
teaching skills for early childhood educators,
as demonstrated through measures determined by
the State.).
(L) An assurance that the State will meet the
requirements of clauses (ii) and (iii) of section
658E(c)(2)(T) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858c(c)(2)(T)), with
respect to funding and assessments under this section.
(M) A certification that subgrant amounts described
under subsection (d) are sufficient to enable the
eligible provider to meet the requirements of this
title, and will provide for increased staff payment
amounts based on the criteria described in (K)(v) and
(vi).
(N) A certification that preschool seats will be
distributed equitably among child care (including
family child care), Head Start, and schools within the
State.
(7) Duration of the plan.--Each State plan shall remain in
effect for a period of 3 years. Amendments to the State plan
shall remain in effect for the duration of the plan.
(8) Transitional State Plan--The Secretary shall make
available a transitional State plan for a period of one year
that contains such information as the Secretary may require, to
demonstrate the State will meet the requirements of this title
and that includes--
(A) an assurance that the State will submit a State
plan under paragraph (6); and
(B) a description of how the funds received by the
State under this title will be spent to expand access
to universal, high-quality, free, inclusive, and mixed
delivery preschool programs in alignment with the
requirements of this title.
(d) Subgrants and Contracts for Local Preschool Programs.--
(1) Subgrants and contracts.--
(A) In general.--A State that receives a payment
under subsection (c)(2)(A) for a fiscal year shall use
amounts provided through the payment to pay the Federal
share of the costs of subgrants to, or contracts with,
eligible providers to operate universal, high-quality,
free, inclusive, and mixed delivery preschool programs
through the State preschool program in accordance with
paragraph (2). A State shall reduce or increase the
amounts provided under such subgrants or contracts if
needed to adjust for any overpayment or underpayment
described in subsection (c)(3).
(B) Amount.--A State shall award a subgrant or
contract under this subsection in a sufficient amount
to enable the eligible provider to operate a universal,
high-quality, free, and inclusive preschool program
that meets the requirements of subsection (c)(6)(K) and
which amount shall reflect variations in the cost of
preschool services by geographic area, type of
provider, and age of child, and the additional costs
associated with providing inclusive preschool services
for children with disabilities .
(C) Duration.--The State shall award a subgrant or
contract under this subsection for a period of not less
than 3 years, unless the subgrant or contract is
terminated or suspended, or the subgrant period is
reduced, for cause.
(2) Enhanced payments for comprehensive services.--In
awarding subgrants or contracts under this subsection and in
addition to meeting the requirements of paragraph (1)(B), the
State shall award subgrants or contracts with enhanced payments
to eligible providers that offer preschool programs funded
under this subsection to a high percentage of low-income
children to support--
(A) comprehensive services, including social,
emotional and other services that support child well-
being;
(B) health and developmental screenings; and
(C) service referral for children and families
served by the program involved.
(3) Establishing and expanding universal preschool
programs.--
(A) Establishing and expanding universal preschool
programs in high-need communities.--In awarding
subgrants or contracts under this subsection, the State
shall first prioritize establishing and expanding
universal preschool programs within and across high-
need communities identified under subsection (c)(6)(B)
by awarding subgrants or contracts to eligible
providers operating within, or with capacity to operate
within and across, such high-need communities. Such
subgrants or contracts shall be used to enroll and
serve children in the preschool program, including--
(i) personnel (including classroom and
administrative personnel), including
compensation and benefits;
(ii) costs associated with implementing the
State's preschool standards, providing
curriculum sports, and meeting early learning
and development standards;
(iii) professional development, teacher
supports, and training;
(iv) implementing developmentally
appropriate health and safety standards
(including licensure, where applicable),
teacher to child ratios, and group size
maximums;
(v) materials, equipment and supplies;
(vi) meeting health and safety standards,
including licensure; and
(vii) rent or mortgage, utilities, building
security, indoor and outdoor maintenance, and
insurance.
(4) Establishing and expanding universal preschool programs
in additional communities.--Once a State that receives a
payment under subsection (c)(2)(A) meets the requirements of
paragraph (2) with respect to establishing and expanding
preschool programs within and across high-need communities, the
State shall use any remaining funds from such payment to enroll
and serve children in preschool programs, as described in such
paragraph, to additional communities in accordance with the
statewide needs assessment used for purposes of paragraph
(6)(B)(ii). Such funds shall be used for the activities
described in (2)(A)(i)-(viii).
(e) Grants to Localities.--
(1) Definitions.--In this subsection:
(A) Eligible locality.--The term ``eligible
locality'' means a city, county, or other unit of
general local government, a local educational agency,
or a Head Start agency.
(B) Low-income young child.--The term ``low-income
young child'' means a child who is under age 6 and from
a family with a family income that is not more than 200
percent of the poverty guidelines.
(2) In general.--The Secretary shall use funds reserved in
subsection (b)(2)(F) to award local universal preschool grants
to eligible localities located in States that have made it
apparent that they will not apply for payments under subsection
(c)(2)(A). The Secretary shall award the grants to eligible
localities in a State from the allotment made for that State
under paragraph (3). The Secretary shall specify the
requirements for an eligible locality to conduct a preschool
services program under this subsection which shall, to the
greatest extent practicable, be consistent with the
requirements applicable to States under this section, including
ensuring a free, universal, high-quality, inclusive mixed
delivery preschool system.
(3) Allotments.--For each State described in paragraph (2),
the Secretary shall allot for the State an amount that bears
the same relationship to the funds reserved under subsection
(b)(2)(F) as the number of low-income young children in the
State bears to the total of all such children in States
described in paragraph (2).
(4) Application.--To receive a grant from the corresponding
State allotment under this subsection, an eligible locality
shall submit an application to the Secretary at such time, in
such manner, and containing such information as the Secretary
may require. The requirements for the application shall, to the
greatest extent practicable, be consistent with the State plan
requirements applicable to States under this section.
(5) Priority for localities serving underserved
communities.--In awarding a grant under this subsection, the
Secretary, in collaboration with the Secretary of Education,
shall give priority to eligible localities serving high-need
communities, determined in accordance with subsection
(d)(2)(B).
(f) Allowable Sources of Non-Federal Share.--For purposes of
calculating the amount of the non-Federal share, as determined under
subsection (c), relating to a payment under such subsection, a State's
non-Federal share--
(1) may be in cash or in kind, fairly evaluated, including
facilities or property, equipment, or services;
(2) shall include any increase in amounts spent by the
State to expand half-day kindergarten programs in the State, as
of the day before the date of enactment of this Act, into full-
day kindergarten programs;
(3) shall not include contributions being used as a non-
Federal share or match for another Federal award;
(4) shall be provided from State or local sources,
contributions from philanthropy or other private organizations,
or a combination of such sources and contributions and
(5) shall count no more than 50 percent of the State's
current spending on prekindergarten programs (as of the date of
enactment of this Act) toward the State match.
(g) Maintenance of Effort.--
(1) In general.--If a State reduces its combined fiscal
effort per child for the State's preschool program (whether a
publicly funded preschool program or a program under this
section) or through State supplemental assistance funds for
Head Start programs assisted under the Head Start Act (42
U.S.C. 9831 et seq.), or through any State spending on
preschool services for any fiscal year that a State receives
payments under subparagraphs (A) and (B) of subsection (c)(2)
(referred to in this paragraph as the ``reduction fiscal
year'') relative to the previous fiscal year, the Secretary, in
collaboration with the Secretary of Education, shall reduce
support for such State under such subsection by the same amount
as the total reduction in State fiscal effort for such
reduction fiscal year.
(2) Waiver.--The Secretary, in collaboration with the
Secretary of Education, may waive the requirements of paragraph
(1) if--
(A) the Secretaries determine that a waiver would
be appropriate due to a precipitous decline in the
financial resources of a State as a result of
unforeseen economic hardship, or a natural disaster,
that has necessitated across-the-board reductions in
State services during the 5-year period preceding the
date of the determination, including for early
childhood education programs; or
(B) due to the circumstance of a State requiring
reductions in specific programs, including early
childhood education, the State presents to the
Secretaries a justification and demonstration why other
programs could not be reduced and how early childhood
education programs in the State will not be
disproportionately harmed by such State reductions.
(h) Supplement Not Supplant.--Funds received under this section
shall be used to supplement and not supplant other Federal, State, and
local public funds expended on early childhood education programs in
the State.
(i) Nondiscrimination Provisions.--The following provisions of law
shall apply to any program or activity that receives funds provided
under this section:
(1) Title IX of the Education Amendments of 1972 (20 U.S.C.
1681 et seq.).
(2) Title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.).
(3) Section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794).
(4) The Americans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.).
(5) Section 654 of the Head Start Act (42 U.S.C. 9849)
Subtitle E--Child Nutrition and Related Programs
SEC. 24001. EXPANDING COMMUNITY ELIGIBILITY.
(a) Multiplier and Threshold Adjusted.--
(1) Multiplier.--Clause (vii) of section 11(a)(1)(F) of the
Richard B. Russell National School Lunch Act (42 U.S.C.
1759a(a)(1)(F)) is amended to read as follows:
``(vii) Multiplier.--
``(I) Implementation in 2022-
2030.--For each school year beginning
on or after July 1, 2022, and ending
before July 1, 2030, the Secretary
shall use a multiplier of 2.5.
``(II) Implementation after 2030.--
For each school year beginning on or
after July 1, 2030, the Secretary shall
use a multiplier of 1.6.''.
(2) Threshold.--Clause (viii) of section 11(a)(1)(F) of the
Richard B. Russell National School Lunch Act (42 U.S.C.
1759a(a)(1)(F)) is amended to read as follows:
``(viii) Threshold.--
``(I) Implementation in 2022-
2030.--For each school year beginning
on or after July 1, 2022, and ending
before July 1, 2030, the threshold
shall be not more than 25 percent.
``(II) Implementation after 2030.--
For each school year beginning on or
after July 1, 2030, the threshold shall
be not more than 40 percent.''.
(3) Applicability.--The amendments made by this subsection
shall apply to a local educational agency with respect to a
school year beginning on or after July 1, 2022, for which such
local educational agency elects to receive special assistance
payments under subparagraph (F) of section 11(a)(1) of the
Richard B. Russell National School Lunch Act (42 U.S.C.
1759a(a)(1)).
(b) Statewide Community Eligibility.--Section 11(a)(1)(F) of the
Richard B. Russell National School Lunch Act (42 U.S.C. 1759a(a)(1)(F))
is amended by adding at the end the following:
``(xiv) Statewide community eligibility.--
For each school year beginning on or after July
1, 2022, and ending before July 1, 2030, the
Secretary shall establish a statewide community
eligibility program under which, in the case of
a State agency that agrees to provide funding
from sources other than Federal funds to ensure
that local educational agencies in the State
receive the free reimbursement rate for 100
percent of the meals served at applicable
schools--
``(I) the multiplier described in
clause (vii) shall apply;
``(II) the threshold described in
clause (viii) shall be applied by
substituting zero for 25; and
``(III) the percentage of enrolled
students who were identified students
shall be calculated across all
applicable schools in the State
regardless of local educational
agency.''.
SEC. 24002. DIRECT CERTIFICATION FOR CHILDREN RECEIVING MEDICAID
BENEFITS.
(a) In General.--Section 9 of the Richard B. Russell National
School Lunch Act (42 U.S.C. 1758(b)) is amended--
(1) in subsection (b)--
(A) by amending paragraph (5) to read as follows:
``(5) Discretionary certification.--
``(A) Free lunches or breakfasts.--Subject to
paragraph (6), any local educational agency may certify
any child as eligible for free lunches or breakfasts,
without further application, by directly communicating
with the appropriate State or local agency to obtain
documentation of the status of the child as--
``(i) a member of a family that is
receiving assistance under the temporary
assistance for needy families program funded
under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) that the Secretary
determines complies with standards established
by the Secretary that ensure that the standards
under the State program are comparable to or
more restrictive than those in effect on June
1, 1995;
``(ii) a homeless child or youth (defined
as 1 of the individuals described in section
725(2) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11434a(2));
``(iii) served by the runaway and homeless
youth grant program established under the
Runaway and Homeless Youth Act (42 U.S.C. 5701
et seq.);
``(iv) a migratory child (as defined in
section 1309 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6399));
``(v) an eligible child (as defined in
paragraph (15)(A)); or
``(vi)(I) a foster child whose care and
placement is the responsibility of an agency
that administers a State plan under part B or E
of title IV of the Social Security Act (42
U.S.C. 621 et seq.); or
``(II) a foster child who a court has
placed with a caretaker household.
``(B) Reduced price lunches or breakfasts.--Subject
to paragraph (6), any local educational agency may
certify any child who is not eligible for free school
lunch or breakfast as eligible for reduced price
lunches or breakfasts, without further application, by
directly communicating with the appropriate State or
local agency to obtain documentation of the status of
the child as a child eligible for reduced price meals
(as defined in paragraph (15)(A)).'';
(B) in paragraph (6)(A), by striking ``or (5)''
both places it appears and inserting ``(5), or (15)'';
and
(C) in paragraph (15)--
(i) in subparagraph (A)--
(I) by amending clause (i) to read
as follows:
``(i) Eligible child.--The term `eligible
child' means a child--
``(I)(aa) who is eligible for and
receiving medical assistance under the
Medicaid program; and
``(bb) who is a member of a family
with an income as measured by the
Medicaid program that does not exceed
133 percent of the poverty line (as
determined under the poverty guidelines
updated periodically in the Federal
Register by the Department of Health
and Human Services under the authority
of section 673(2) of the Community
Services Block Grant Act (42 U.S.C.
9902(2), including any revision
required by such section)) applicable
to a family of the size used for
purposes of determining eligibility for
the Medicaid program;
``(II) who is eligible for the
Medicaid program because such child
receives supplemental security income
benefits under title XVI of the Social
Security Act (42 U.S.C. 1381-1385) or
State supplementary benefits of the
type referred to in section 1616(a) of
such Act (or payments of the type
described in section 212(a) of Public
Law 93-66);
``(III) who is eligible for the
Medicaid program because such child
receives an adoption assistance payment
made under section 473(a) of the Social
Security Act (42 U.S.C. 673(a)) or
under a similar State-funded or State-
operated program, as determined by the
Secretary;
``(IV) who is eligible for the
Medicaid program because such child
receives a kinship guardianship
assistance payment made under section
473(d) of the Social Security Act (42
U.S.C. 673(d)) or under a similar
State-funded or State-operated program,
as determined by the Secretary, without
regard to whether such child was
previously in foster care; or
``(V) who is a member of a
household (as that term is defined in
section 245.2 of title 7, Code of
Federal Regulations (or successor
regulations)) with a child described in
subclause (I), (II), (III), or (IV).'';
and
(II) by adding at the end the
following:
``(iii) Child eligible for reduced price
meals.--The term `child eligible for reduced
price meals' means a child--
``(I)(aa) who is eligible for and
receiving medical assistance under the
Medicaid program; and
``(bb) who is a member of a family
with an income as measured by the
Medicaid program that does exceed 133
percent but does not exceed 185 percent
of the poverty line (as determined
under the poverty guidelines updated
periodically in the Federal Register by
the Department of Health and Human
Services under the authority of section
673(2) of the Community Services Block
Grant Act (42 U.S.C. 9902(2), including
any revision required by such section))
applicable to a family of the size used
for purposes of determining eligibility
for the Medicaid program; or
``(II) who is a member of a
household (as that term is defined in
section 245.2 of title 7, Code of
Federal Regulations (or successor
regulations)) with a child described in
subclause (I).'';
(ii) by striking subparagraphs (B), (C),
(D), (E), (G), and (H);
(iii) in subparagraph (F)--
(I) in the enumerator, by striking
``(F)'' and inserting ``(D)''; and
(II) by striking ``conducting the
demonstration project under this
paragraph'' and inserting ``carrying
out this paragraph'';
(iv) by inserting after subparagraph (A)
the following:
``(B) Agreements to carry out certification.--To
certify a child under subparagraph (A)(v) or (B) of
paragraph (5), a State agency shall enter into an
agreement with 1 or more State agencies conducting
eligibility determinations for the Medicaid program.
``(C) Procedures.--Subject to paragraph (6), an
agreement under subparagraph (B) shall establish
procedures under which--
``(i) an eligible child may be certified
for free lunches under this Act and free
breakfasts under section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773), without
further application (as defined in paragraph
(4)(G)); and
``(ii) a child eligible for reduced price
meals may be certified for reduced price
lunches under this Act or reduced price
breakfasts under section 4 of the Child
Nutrition Act of 1966 (42 U.S.C. 1773), without
further application (as defined in paragraph
(4)(G)).''; and
(v) by adding at the end the following:
``(E) Sunset.--The authority under this paragraph
shall terminate on the last day of school year 2030-
2031.''; and
(2) in subsection (d)(2)(G), by inserting ``or child
eligible for reduced price meals'' after ``eligible child''.
(b) Applicability.--The amendments made by this section shall apply
with respect to the period--
(1) beginning on July 1, 2022; and
(2) ending on the last day of school year 2030-2031.
SEC. 24003. SUMMER ELECTRONIC BENEFITS TRANSFER FOR CHILDREN PROGRAM.
The Richard B. Russell National School Lunch Act is amended by
inserting after section 13 (42 U.S.C. 1761) the following:
``SEC. 13A. SUMMER ELECTRONIC BENEFITS TRANSFER FOR CHILDREN PROGRAM.
``(a) Program Established.--The Secretary shall establish a program
under which States and covered Indian Tribal organizations
participating in such program shall, beginning with summer 2023 and
annually for each summer before the date described in subsection (g),
issue to eligible households summer EBT benefits--
``(1) in accordance with this section; and
``(2) for the purpose of providing nutrition assistance
through electronic benefits transfer during the summer months
for eligible children, to ensure continued access to food when
school is not in session for the summer.
``(b) Summer EBT Benefits Requirements.--
``(1) Purchase options.--
``(A) Benefits issued by states.--
``(i) WIC participation states.--In the
case of a State that participated in a
demonstration program under section 749(g) of
the Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies
Appropriations Act, 2010 (Public Law 111-80;
123 Stat. 2132) during calendar year 2018 using
a WIC model, summer EBT benefits issued
pursuant to subsection (a) by such a State may
only be used by the eligible household that
receives such summer EBT benefits to purchase--
``(I) supplemental foods from
retailers that have been approved for
participation in--
``(aa) the special
supplemental nutrition program
for women, infants, and
children under section 17 of
the Child Nutrition Act of 1966
(42 U.S.C. 1786); or
``(bb) the program under
this section; or
``(II) food (as defined in section
3(k) of the Food and Nutrition Act of
2008 (7 U.S.C. 2011(k))) from retail
food stores that have been approved for
participation in the supplemental
nutrition assistance program
established under such Act, in
accordance with section 7(b) of such
Act (7 U.S.C. 2016(b)).
``(ii) Other states.--Summer EBT benefits
issued pursuant to subsection (a) by a State
not described in clause (i) may only be used by
the eligible household that receives such
summer EBT benefits to purchase food (as
defined in section 3(k) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2011(k))) from
retail food stores that have been approved for
participation in the supplemental nutrition
assistance program established under such Act,
in accordance with section 7(b) of such Act (7
U.S.C. 2016(b)).
``(B) Benefits issued by covered indian tribal
organizations.--Summer EBT benefits issued pursuant to
subsection (a) by a covered Indian Tribal organization
may only be used by the eligible household that
receives such summer EBT benefits to purchase
supplemental foods from retailers that have been
approved for participation in--
``(i) the special supplemental nutrition
program for women, infants, and children under
section 17 of the Child Nutrition Act of 1966
(42 U.S.C. 1786); or
``(ii) the program under this section.
``(2) Amount.--Summer EBT benefits issued pursuant to
subsection (a)--
``(A) shall be--
``(i) for calendar year 2023, in an amount
equal to $75 for each child in the eligible
household per month during the summer; and
``(ii) for calendar year 2024 and each year
thereafter, in an amount equal to the amount
described in clause (i), adjusted to the
nearest lower dollar increment to reflect
changes to the cost of the thrifty food plan
(as defined in section 3(u) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2012(u)) for
the 12-month period ending on November 30 of
the preceding calendar year; and
``(B) may be issued--
``(i) in the form of an EBT card; or
``(ii) through electronic delivery.
``(c) Enrollment in Program.--
``(1) State requirements.--States participating in the
program under this section shall--
``(A) with respect to a summer, automatically
enroll eligible children in the program under this
section without further application;
``(B) establish procedures to carry out the
enrollment described in subparagraph (A); and
``(C) require local educational agencies to allow
eligible households to opt out of participation in the
program under this section and establish procedures for
opting out of such participation.
``(2) Covered indian tribal organization requirements.--
Covered Indian Tribal organizations participating in the
program under this section shall, to the maximum extent
practicable, meet the requirements under subparagraphs (A)
through (C) of paragraph (1).
``(d) Implementation Grants.--On and after October 1, 2021, the
Secretary shall carry out a program to make grants to States and
covered Indian Tribal organizations to build capacity for implementing
the program under this section.
``(e) Alternate Plans in the Case of Continuous School Calendar.--
The Secretary shall establish alternative plans for when summer EBT
benefits may be issued pursuant to subsection (a) in the case of
children who are under a continuous school calendar.
``(f) Funding.--
``(1) Program funding.--In addition to amounts otherwise
available, there is appropriated for each of fiscal years 2022
through 2029, out of any money in the Treasury not otherwise
appropriated, such sums, to remain available for the period
described in paragraph (2), as may be necessary to carry out
this section, including for administrative expenses incurred by
the Secretary, States, covered Indian Tribal organizations, and
local educational agencies.
``(2) Period described.--With respect to each fiscal year
under paragraph (1), amounts made available for such a fiscal
year under such paragraph shall remain available for the 2-year
period following the date such amounts are made available.
``(3) Implementation grant funding.--In addition to amounts
otherwise available, including under paragraph (1), there is
appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $50,000,000, to remain
available until expended, to carry out subsection (d).
``(g) Sunset.--The authority under this section shall terminate on
September 30, 2029.
``(h) Definitions.--In this section:
``(1) Covered indian tribal organization.--The term
`covered Indian Tribal organization' means an Indian Tribal
organization that participates in the special supplemental
nutrition program for women, infants, and children under
section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786).
``(2) Eligible child.--The term `eligible child' means,
with respect to a summer, a child who was, during the school
year immediately preceding such summer--
``(A) certified to receive free or reduced price
lunch under the school lunch program under this Act;
``(B) certified to receive free or reduced price
breakfast under the school breakfast program under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773); or
``(C) enrolled in a school described in
subparagraph (B), (C), (D), (E), or (F) of section
11(a)(1).
``(3) Eligible household.--The term `eligible household'
means a household that includes at least 1 eligible child.
``(4) Supplemental foods.--The term `supplemental foods'--
``(A) means foods--
``(i) containing nutrients determined by
nutritional research to be lacking in the diets
of children; and
``(ii) that promote the health of the
population served by the program under this
section, as indicated by relevant nutrition
science, public health concerns, and cultural
eating patterns, as determined by the
Secretary; and
``(B) includes foods not described in subparagraph
(A) substituted by State agencies, with the approval of
the Secretary, that--
``(i) provide the nutritional equivalent of
foods described in such subparagraph; and
``(ii) allow for different cultural eating
patterns than foods described in such
subparagraph.''.
SEC. 24004. SCHOOL KITCHEN EQUIPMENT GRANTS.
(a) In addition to amounts otherwise available, there is
appropriated to the Secretary of Agriculture for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated, $500,000,000,
to remain available until expended, to award grants to States (as
defined in section 12(d) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1760(d))) to make competitive subgrants to local
educational agencies and schools to purchase equipment with a value of
greater than $1,000 that, with respect to the school lunch program
established under the Richard B. Russell National School Lunch Act (42
U.S.C. 1751-1769j) and the school breakfast program established under
section 4 of the Child Nutrition Act of 1966 (42 U.S.C. 1773), is
necessary to serve healthier meals, improve food safety, and increase
scratch cooking.
(b) The Secretary may set aside up to 5 percent of the funds made
available under subsection (a) for the purpose of training and
technical assistance to support scratch cooking, which may be
administered by States or other entities.
SEC. 24005. HEALTHY FOOD INCENTIVES DEMONSTRATION.
(a) In addition to amounts otherwise available, there is
appropriated to the Secretary of Agriculture for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated, $634,000,000,
to remain available until expended, to provide competitive grants to
States in accordance with this section.
(b) A State that receives a grant under this section shall use such
grant funds to make subgrants to local educational agencies and schools
for activities that support--
(1) serving healthy school meals and afterschool snacks
that meet discretionary goals established by the Secretary;
(2) increasing scratch cooking;
(3) conducting experiential nutrition education activities,
including school garden programs;
(4) procuring local, regional, and culturally appropriate
foods and foods produced by underserved or limited resource
farmers, as defined by the Secretary, to serve as part of the
child nutrition programs under the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751-1769j) or the Child Nutrition
Act of 1966 (42 U.S.C. 1771-1793);
(5) reducing the availability of less healthy foods, as
defined by the Secretary, during the school day; or
(6) carrying out additional activities to encourage the
development of healthy nutrition and physical activity habits
among children.
(c) A State that receives a grant under this section may use such
grant funds to fund a statewide nutrition education coordinator to--
(1) support individual school food authority nutrition
education efforts; and
(2) facilitate collaboration with other nutrition education
efforts in the State.
(d) A State that receives a grant under this section may not use
more than 5 percent of such grant funds to carry out administrative
activities.
(e) In this section, the term ``State'' has the meaning given the
term in section 12(d) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1760(d)).
Subtitle F--Human Services and Community Supports
SEC. 25001. ASSISTIVE TECHNOLOGY.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $10,000,000, to remain available until expended, to carry
out the Assistive Technology Act of 1998 (29 U.S.C. 3001 et seq.).
SEC. 25002. FAMILY VIOLENCE PREVENTION AND SERVICES FUNDING.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $27,000,000, to remain available until expended, for
necessary administrative expenses to carry out sections 303, 309, and
313 of the Family Violence Prevention and Services Act (42 U.S.C.
10401-10414) and section 2204 of the American Rescue Plan Act of 2021
(Public Law 117-2).
SEC. 25003. PREGNANCY ASSISTANCE FUND.
Section 10214 of the Patient Protection and Affordable Care Act (42
U.S.C. 18204) is amended by striking the period and inserting ``, and
$25,000,000 for each of fiscal years 2022 through 2024, to remain
available until expended, to carry out this part.''.
SEC. 25004. FUNDING FOR THE AGING NETWORK AND INFRASTRUCTURE.
(a) Appropriation.--In addition to amounts otherwise available,
there are appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, to the Department of Health and
Human Services--
(1) $75,000,000 for the Research, Demonstration, and
Evaluation Center for the Aging Network to carry out the
activities of the Center under section 201(g) of the Older
Americans Act of 1965 (OAA) (42 U.S.C. 3011(g));
(2) $655,000,000 to carry out part B of title III of the
OAA (42 U.S.C. 3030d), including for--
(A) supportive services of the type made available
for fiscal year 2021 and authorized under such part;
(B) investing in the aging services network for the
purposes of improving the availability of supportive
services, including investing in the aging services
network workforce;
(C) the acquisition, alteration, or renovation of
facilities, including multipurpose senior centers and
mobile units; and
(D) construction or modernization of facilities to
serve as multipurpose senior centers;
(3) $140,000,000 to carry out part C of title III of the
OAA (42 U.S.C. 3030d-21-3030g-23), including to support the
modernization of infrastructure and technology, including
kitchen equipment and delivery vehicles, to support the
provision of congregate nutrition services and home delivered
nutrition services under such part;
(4) $150,000,000 to carry out part E of title III of the
OAA (42 U.S.C. 3030s-3030s-2), including section 373(e) of such
part (42 U.S.C. 3030s-1(e));
(5) $50,000,000 to carry out title VI of the OAA (42 U.S.C.
3057-3057o), including part C of such title (42 U.S.C. 3057k-
11);
(6) $50,000,000 to carry out the long-term care ombudsman
program under title VII of the OAA (42 U.S.C. 3058-3058ff);
(7) $59,000,000 for technical assistance centers or
national resource centers supported under the OAA, including
all such centers that received funding under title IV of the
OAA (42 U.S.C. 3031-3033a) for fiscal year 2021, in order to
support technical assistance and resource development related
to culturally appropriate care management and services for
older individuals with the greatest social need, including
racial and ethnic minority individuals;
(8) $15,000,000 for technical assistance centers or
national resource centers supported under the OAA that are
focused on providing services for older individuals who are
underserved due to their sexual orientation or gender identity;
(9) $1,000,000 for efforts of national training and
technical assistance centers supported under the OAA to--
(A) support expanding the reach of the aging
services network to more effectively assist older
individuals in remaining socially engaged and active;
(B) provide additional support in technical
assistance and training to the aging services network
to address the social isolation of older individuals;
(C) promote best practices and identify innovation
in the field; and
(D) continue to support a repository for
innovations designed to increase the ability of the
aging services network to tailor social engagement
activities to meet the needs of older individuals; and
(10) $5,000,000 to carry out section 417 of the OAA (42
U.S.C. 3032f).
Amounts appropriated by this subsection shall remain available until
expended.
(b) Nonapplicability of Certain Requirements.--The non-Federal
contribution requirements under sections 304(d)(1)(D) and 431(a) of the
Older Americans Act of 1965 (42 U.S.C. 3024(d)(1)(D), 3033(a)), and
section 373(h)(2) of such Act (42 U.S.C. 3030s-1(h)(2)), shall not
apply to--
(1) any amounts made available under this section; or
(2) any amounts made available under section 2921 of the
American Rescue Plan Act of 2021 (Public Law 117-2).
SEC. 25005. OFFICE OF THE INSPECTOR GENERAL OF THE DEPARTMENT OF HEALTH
AND HUMAN SERVICES.
In addition to amounts otherwise available, there is appropriated
to the Department of Health and Human Services for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$50,000,000, to remain available until expended, for the Office of
Inspector General of the Department of Health and Human Services, for
salaries and expenses necessary for oversight, investigations, and
audits of programs, grants, and projects funded under subtitles D and F
of this title.
SEC. 25006. TECHNICAL ASSISTANCE CENTER FOR SUPPORTING DIRECT CARE AND
CAREGIVING.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary of Health and Human Services, acting
through the Administrator for the Administration for Community Living,
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $5,000,000, to remain available until September 30, 2026,
to establish, directly or through grants, contracts, or cooperative
agreements, a national technical assistance center (referred to in this
section as the ``Center'') to--
(1) provide technical assistance for supporting direct care
workforce recruitment, education and training, retention,
career advancement, and for supporting family caregivers and
caregiving activities;
(2) develop and disseminate a set of replicable models or
evidence-based or evidence-informed strategies or best
practices for--
(A) recruitment, education and training, retention,
and career advancement of direct care workers;
(B) reducing barriers to accessing direct care
services; and
(C) increasing access to alternatives to direct
care services, including assistive technology, that
reduce reliance on such services;
(3) provide recommendations for education and training
curricula for direct care workers; and
(4) provide recommendations for activities to further
support paid and unpaid family caregivers, including expanding
respite care.
(b) Direct Care Worker Defined.--The term ``direct care worker''
has the meaning given such term in section 22301.
TITLE III--COMMITTEE ON ENERGY AND COMMERCE
Subtitle A--Air Pollution
SEC. 30101. CLEAN HEAVY-DUTY VEHICLES.
(a) Appropriation.--
(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$5,000,000,000, to remain available until expended (except that
no funds shall be disbursed after September 30, 2031), to carry
out section 132 of the Clean Air Act, as added by subsection
(b).
(2) Reservation.--Of the funds appropriated by paragraph
(1), the Administrator of the Environmental Protection Agency
shall reserve 3 percent for administrative costs necessary to
carry out section 132 of the Clean Air Act, as added by
subsection (b).
(b) Amendment.--Part A of title I of the Clean Air Act (42 U.S.C.
7401 et seq.) is amended by adding at the end the following:
``SEC. 132. CLEAN HEAVY-DUTY VEHICLES.
``(a) Program.--Beginning not later than 180 days after the date of
enactment of this section, the Administrator shall implement a program
to make awards of grants and rebates to eligible recipients, and to
make awards of contracts to eligible contractors for providing rebates,
for up to 100 percent of costs for--
``(1) replacing eligible vehicles with zero-emission
vehicles;
``(2) infrastructure needed to charge, fuel, or maintain
zero-emission vehicles;
``(3) workforce development and training to support the
maintenance, charging, fueling, and operation of zero-emission
vehicles; and
``(4) planning and technical activities to support the
adoption and deployment of zero-emission vehicles.
``(b) Applications.--To seek an award under this section, an
eligible recipient or eligible contractor shall submit to the
Administrator an application in such form and manner as the
Administrator shall prescribe.
``(c) Allocation.--Of any amount appropriated to carry out this
section, no less than 40 percent shall be used for awards to eligible
recipients proposing to replace eligible vehicles to serve one or more
communities located in an air quality area designated pursuant to
section 107 as nonattainment for any air pollutant.
``(d) Definitions.--For purposes of this section:
``(1) Eligible contractor.--The term `eligible contractor'
means a contractor that is a for-profit or nonprofit entity
that has the capacity--
``(A) to sell zero-emission vehicles, or charging
or other equipment needed to charge, fuel, or maintain
zero-emission vehicles, to individuals or entities that
own an eligible vehicle; or
``(B) to arrange financing for such a sale.
``(2) Eligible recipient.--The term `eligible recipient'
means--
``(A) a State or local governmental entity;
``(B) an Indian Tribe (as defined in section 302);
``(C) a nonprofit school transportation
association; or
``(D) an eligible contractor.
``(3) Eligible vehicle.--The term `eligible vehicle' means
a Class 6 or Class 7 heavy-duty vehicle as defined in section
1037.801 of title 40, Code of Federal Regulations (as in effect
on the date of enactment of this section).
``(4) Zero-emission vehicle.--The term `zero-emission
vehicle' means a vehicle that has a drivetrain that produces,
under any possible operational mode or condition, zero exhaust
emission of--
``(A) any air pollutant that is listed pursuant to
section 108(a) (or any precursor to such an air
pollutant); and
``(B) any greenhouse gas.''.
SEC. 30102. GRANTS TO REDUCE AIR POLLUTION AT PORTS.
Part A of title I of the Clean Air Act (42 U.S.C. 7401 et seq.), as
amended, is further amended by adding at the end the following:
``SEC. 133. GRANTS TO REDUCE AIR POLLUTION AT PORTS.
``(a) In General.--In addition to amounts otherwise available,
there is appropriated to the Administrator for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $3,500,000,000,
to remain available until expended (except that no funds shall be
disbursed after September 30, 2031), to award rebates and grants to
eligible recipients on a competitive basis to--
``(1) purchase or install zero-emissions port equipment and
technology for use at, or to directly serve, one or more ports;
``(2) conduct any relevant planning or permitting in
connection with such zero-emissions port equipment and
technology; and
``(3) develop qualified climate action plans.
``(b) Reservation.--Of the funds made available by this section,
$875,000,000 shall be reserved for awards to eligible recipients to
carry out activities with respect to ports located in nonattainment
areas for any air pollutant.
``(c) Limitation.--Funds awarded under this section shall not be
used--
``(1) to purchase fully automated cargo-handling equipment
or terminal infrastructure that is designed for fully automated
cargo-handling equipment; or
``(2) by any recipient or sub-recipient to perform
construction, alteration, installation, or repair work that is
not located at, or does not directly serve, the one or more
ports involved.
``(d) Administration of Funds.--Of the funds made available by this
section, the Administrator shall reserve 2 percent for administrative
costs necessary to carry out this section.
``(e) Definitions.--For purposes of this section:
``(1) Eligible recipient.--The term `eligible recipient'
means--
``(A) a port authority;
``(B) a State, regional, local, or Tribal agency
that has jurisdiction over a port authority or a port;
``(C) an air pollution control agency; or
``(D) a private entity (including any nonprofit
organization) that--
``(i) applies for a grant under this
section in partnership with an entity described
in subparagraphs (A), (B), or (C); and
``(ii) owns, operates, or uses the
facilities, cargo-handling equipment,
transportation equipment, or related technology
of a port.
``(2) Qualified climate action plan.--The term `qualified
climate action plan' means a detailed and strategic plan that--
``(A) establishes goals, implementation strategies,
and accounting and inventory practices (including
practices used to measure progress towards stated
goals) to reduce emissions at one or more ports of--
``(i) greenhouse gases;
``(ii) any air pollutant that is listed
pursuant to section 108(a) (or any precursor to
such an air pollutant); and
``(iii) hazardous air pollutants; and
``(B) includes a strategy to collaborate with,
communicate with, and address potential effects on
stakeholders that may be affected by implementation of
such plan, including low-income and disadvantaged near-
port communities.
``(3) Zero-emissions port equipment and technology.--The
term `zero-emissions port equipment and technology' means any
equipment or technology that--
``(A) produces zero emissions of any air pollutant
that is listed pursuant to section 108(a) (or any
precursor to such an air pollutant) and any greenhouse
gas other than water vapor; or
``(B) captures 100 percent of such emissions
produced by an ocean-going vessel at berth.''.
SEC. 30103. GREENHOUSE GAS REDUCTION FUND.
Part A of title I of the Clean Air Act (42 U.S.C. 7401 et seq.), as
amended, is further amended by adding at the end the following:
``SEC. 134. GREENHOUSE GAS REDUCTION FUND.
``(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated--
``(1) $7,495,000,000 to the Administrator, to remain
available until expended (except that no funds shall be
disbursed after September 30, 2026), to make grants, on a
competitive basis and not later than 180 calendar days after
the date of enactment of this section, to States, units of
local government, the District of Columbia, territories of the
United States, Tribal governments, and eligible recipients for
the purposes of providing financial and technical assistance to
enable low-income and disadvantaged communities to deploy zero-
emission technologies, including distributed zero-emission
technologies on residential rooftops, and to carry out other
greenhouse gas emission reduction activities, as determined
appropriate by the Administrator in accordance with this
section;
``(2) $19,995,000,000 to the Administrator, to remain
available until expended (except that no funds shall be
disbursed after September 30, 2026), to make grants, on a
competitive basis and not later than 180 calendar days after
the date of enactment of this section, to eligible recipients,
of which $8,000,000,000 shall be used to provide financial
assistance in low-income and disadvantaged communities; and
``(3) $10,000,000 to the Administrator, to remain available
until expended (except that no funds shall be disbursed after
September 30, 2031), for the administrative costs necessary to
carry out activities under this section.
``(b) Use of Funds.--An eligible recipient that receives a grant
pursuant to subsection (a) shall operate in accordance with the
following:
``(1) Direct investment.--An eligible recipient shall--
``(A) use a broad range of finance and investment
tools to provide financial assistance to qualified
projects at the national, regional, State, and local
levels, including, as applicable, through both
concessionary and market rate financing;
``(B) prioritize investment in qualified projects
that would otherwise lack access to financing;
``(C) retain, manage, recycle, and monetize all
repayments and other revenue received from fees,
interest, repaid loans, and all other types of
financial assistance provided using grant funds under
this section to ensure continued operability; and
``(D) meet any requirements set forth by the
Administrator to ensure accountability and proper
management of funds appropriated by this section.
``(2) Indirect investment.--An eligible recipient shall
provide financial and technical assistance to establish new or
support existing public, quasi-public, or nonprofit entities
that provide financial assistance to qualified projects at the
State, local, territorial, or Tribal level or in the District
of Columbia, including community- and low-income-focused
lenders and capital providers.
``(c) Definitions.--In this section:
``(1) Eligible recipient.--The term `eligible recipient'
means a nonprofit organization that--
``(A) is designed to provide capital, including by
leveraging private capital, and other forms of
financial assistance for the rapid deployment of low-
and zero-emission products, technologies, and
activities;
``(B) does not take deposits, other than from
repayments and other revenue received from financial
assistance provided using grant funds under this
section;
``(C) is funded by public or charitable
contributions; and
``(D) invests in or finances projects alone or in
conjunction with other investors.
``(2) Qualified project.--The term `qualified project'
includes any low- or zero-emission project, technology, or
activity that--
``(A) reduces or avoids greenhouse gas emissions
and other forms of air pollution in partnership with,
and by leveraging investment from, the private sector;
or
``(B) assists communities in the efforts of those
communities to reduce or avoid greenhouse gas emissions
and other forms of air pollution.
``(3) Zero-emission technology.--The term `zero-emission
technology' means any technology that produces zero emissions
of--
``(A) any air pollutant that is listed pursuant to
section 108(a) (or any precursor to such an air
pollutant); and
``(B) any greenhouse gas.''.
SEC. 30104. COLLABORATIVE COMMUNITY WILDFIRE AIR GRANTS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $150,000,000, to remain available until
expended (except that no funds shall be disbursed after September 30,
2031), for grants authorized under section 103 of the Clean Air Act (42
U.S.C. 7403) to assist eligible entities in developing and implementing
collaborative community plans to prepare for smoke from wildfires,
reduce risks of smoke exposure due to wildfires, and mitigate the
health and environmental effects of smoke from wildfires.
(b) Technical Assistance.--The Administrator of the Environmental
Protection Agency may use amounts made available under subsection (a)
to provide technical assistance to any eligible entity in--
(1) submitting an application for a grant to be made
pursuant to this section; or
(2) carrying out a project using a grant made pursuant to
this section.
(c) Administrative Costs.--Of the amounts made available under
subsection (a), the Administrator of the Environmental Protection
Agency shall reserve 7.5 percent for administrative costs to carry out
this section.
(d) Eligible Entities.--In this section, the term ``eligible
entity'' means a State, a territory, a unit of local government
(including any special district, such as an air quality management
district), or an Indian Tribe.
SEC. 30105. DIESEL EMISSIONS REDUCTIONS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $170,000,000, to remain available until
expended (except that no funds shall be disbursed after September 30,
2031), to address diesel emissions, of which--
(1) $100,000,000 shall be for grants, rebates, loans, and
other Environmental Protection Agency activities under subtitle
G of title VII of the Energy Policy Act of 2005 (42 U.S.C.
16131 through 16137) to identify and reduce diesel emissions
resulting from goods movement facilities, and vehicles
servicing goods movement facilities, in low-income and
disadvantaged communities to address the health impacts of such
emissions on such communities;
(2) $50,000,000 shall be for grants, rebates, loans, and
other Environmental Protection Agency activities under subtitle
G of title VII of the Energy Policy Act of 2005; and
(3) $20,000,000 shall be for grants, rebates, loans, and
other Environmental Protection Agency activities under subtitle
G of title VII of the Energy Policy Act of 2005 to identify and
reduce diesel emissions in low-income and disadvantaged
communities to address the health impacts of such emissions on
such communities.
(b) Administrative Costs.--The Administrator of the Environmental
Protection Agency shall reserve 5 percent of the amounts made available
under subsection (a) for the administrative costs necessary to carry
out activities pursuant to such subsection.
SEC. 30106. FUNDING TO ADDRESS AIR POLLUTION.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $320,000,000, to remain available until
expended (except that no funds shall be disbursed after September 30,
2031), to address air pollution, of which--
(1) $265,000,000 shall be for grants and other activities
authorized under sections 102, 103, and 105 of the Clean Air
Act (42 U.S.C. 7402, 7403, and 7405), of which--
(A) $122,000,000 shall be to deploy, integrate,
support, and maintain fenceline monitoring and
screening air monitoring, including national air toxics
trend stations and other air toxics and community
monitoring;
(B) $75,000,000 shall be to expand the national
ambient air quality monitoring network with new
multipollutant monitoring stations and to replace,
repair, operate, and maintain existing monitors;
(C) $3,000,000 shall be to deploy, integrate, and
operate air quality sensors in low-income and
disadvantaged communities; and
(D) $15,000,000 shall be for testing and other
agency activities to address emissions from wood
heaters; and
(E) $50,000,000 shall be for monitoring emissions
of methane;
(2) $50,000,000 shall be to carry out, with respect to
greenhouse gases, sections 111, 115, 169, 177, 202, 211, 213,
231, and 612, and other sections of the Clean Air Act (42
U.S.C. 7411, 7415, 7479, 7507, 7521, 7545, 7547, 7571, 7671k,
and others); and
(3) $5,000,000 shall be to provide grants to States to
adopt and implement greenhouse gas and zero-emission standards
for mobile sources pursuant to section 177 of the Clean Air Act
(42 U.S.C. 7507).
(b) Administration of Funds.--Of the funds made available pursuant
to subsection (a)(1), the Administrator of the Environmental Protection
Agency shall reserve 5 percent for activities funded pursuant to such
subsection other than grants.
SEC. 30107. FUNDING TO ADDRESS AIR POLLUTION AT SCHOOLS.
In addition to amounts otherwise available, there is appropriated
to the Administrator of the Environmental Protection Agency for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$50,000,000, to remain available until expended, for grants, rebates,
contracts, and other activities to monitor and reduce air pollution and
greenhouse gas emissions at schools in low-income and disadvantaged
communities under subsections (a) through (c) of section 103 of the
Clean Air Act (42 U.S.C. 7403) and section 105 of that Act (42 U.S.C.
7405), of which the Administrator shall reserve not less than 25
percent for technical assistance to such schools--
(1) to address environmental issues;
(2) to develop school environmental quality plans that
include standards for school building, design, construction,
and renovation; and
(3) to identify and mitigate ongoing air pollution hazards.
SEC. 30108. LOW EMISSIONS ELECTRICITY PROGRAM.
Part A of title I of the Clean Air Act (42 U.S.C. 7401 et seq.), as
amended, is further amended by adding at the end the following:
``SEC. 135. LOW EMISSIONS ELECTRICITY PROGRAM.
``(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Administrator for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $100,000,000, to
remain available until expended (except that no funds shall be
disbursed after September 30, 2031), to carry out this section.
``(b) Use of Funds.--Of the amounts made available by subsection
(a), the Administrator shall use--
``(1) not less than $10,000,000 for consumer-related
education and partnerships with respect to reductions in
greenhouse gas emissions that result from domestic electricity
generation and use;
``(2) not less than $10,000,000 for education, technical
assistance, and partnerships within low-income and
disadvantaged communities with respect to reductions in
greenhouse gas emissions that result from domestic electricity
generation and use;
``(3) not less than $10,000,000 for industry-related
outreach and technical assistance, including through
partnerships, with respect to reductions in greenhouse gas
emissions that result from domestic electricity generation and
use;
``(4) not less than $10,000,000 for outreach and technical
assistance to State and local governments, including through
partnerships, with respect to reductions in greenhouse gas
emissions that result from domestic electricity generation and
use;
``(5) not less than $1,000,000 to assess, not later than
the date that is 1 year after the date of enactment of this
section, the reductions in greenhouse gas emissions that result
from changes in domestic electricity generation and use that
are anticipated to occur on an annual basis through fiscal year
2031; and
``(6) not less than $20,000,000 to carry out this section
to ensure that the anticipated reductions in greenhouse gas
emissions from domestic electricity generation and use as
assessed under paragraph (5) are achieved through use of the
authorities of this Act, including through the establishment of
requirements under this Act.''.
SEC. 30109. FUNDING FOR SECTION 211 OF THE CLEAN AIR ACT.
In addition to amounts otherwise available, there is appropriated
to the Administrator of the Environmental Protection Agency for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$15,000,000, to remain available until expended, to carry out section
211 of the Clean Air Act (42 U.S.C. 7545), of which--
(1) not less than $5,000,000 shall be for the development
and establishment of tests and protocols regarding the
environmental and public health effects of a fuel or fuel
additive; internal and extramural data collection and analyses
to regularly update applicable regulations, guidance, and
procedures for determining lifecycle greenhouse gas emissions
of a fuel; and the review, analysis and evaluation of the
impacts of all transportation fuels, including fuel lifecycle
implications, on the general public and on low-income and
disadvantaged communities; and
(2) not less than $5,000,000 shall be for new grants to
industry and other related activities to support investments in
advanced biofuels.
SEC. 30110. FUNDING FOR IMPLEMENTATION OF THE AMERICAN INNOVATION AND
MANUFACTURING ACT.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $42,000,000, to remain available until
September 30, 2026, to carry out section 103 of division S of Public
Law 116-260, of which--
(1) $3,500,000 shall be to deploy new implementation and
compliance tools; and
(2) $15,000,000 shall be for competitive grants for reclaim
and innovative destruction technologies.
(b) Administration of Funds.--Of the funds made available pursuant
to subsection (a)(2), the Administrator of the Environmental Protection
Agency shall reserve 5 percent for administrative costs of carrying out
such section 103.
SEC. 30111. FUNDING FOR ENFORCEMENT TECHNOLOGY AND PUBLIC INFORMATION.
In addition to amounts otherwise available, there is appropriated
to the Administrator of the Environmental Protection Agency for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$50,000,000, to remain available until expended (except that no funds
shall be disbursed after September 30, 2031), to address air pollution,
of which--
(1) $37,000,000 shall be to update Integrated Compliance
Information System of the Environmental Protection Agency and
any associated systems, necessary information technology
infrastructure, or public access software tools to ensure
access to compliance data and related information;
(2) $7,000,000 shall be for grants to States, Indian
Tribes, and air pollution control agencies (as such terms are
defined in section 302 of the Clean Air Act (42 U.S.C. 7602))
to update their systems to ensure communication with such
Integrated Compliance Information System and any associated
systems; and
(3) $6,000,000 shall be to acquire or update inspection
software for use by the Environmental Protection Agency,
States, Indian Tribes, and air pollution control agencies (as
such terms are defined in section 302 of the Clean Air Act (42
U.S.C. 7602)), or to acquire necessary devices on which to run
such inspection software.
SEC. 30112. GREENHOUSE GAS CORPORATE REPORTING.
In addition to amounts otherwise available, there is appropriated
to the Environmental Protection Agency Office of Air and Radiation for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $5,000,000, to remain available until expended (except
that no funds shall be disbursed after September 30, 2031), for the
Environmental Protection Agency to support--
(1) enhanced standardization and transparency of corporate
climate action commitments and plans to reduce greenhouse gas
emissions;
(2) enhanced transparency regarding progress toward meeting
such commitments and implementing such plans; and
(3) progress toward meeting such commitments and
implementing such plans.
SEC. 30113. ENVIRONMENTAL PRODUCT DECLARATION ASSISTANCE.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $250,000,000, to remain available until
expended (except that no funds shall be disbursed after September 30,
2031), to develop and carry out a program, to be known as the
Environmental Product Declaration Assistance Program, to support the
development, and enhanced standardization and transparency, of
environmental product declarations for construction materials and
products, including by--
(1) providing grants to businesses that manufacture
construction materials and products for developing and
verifying environmental product declarations;
(2) providing technical assistance to businesses that
manufacture construction materials and products in developing
and verifying environmental product declarations; and
(3) carrying out other activities that assist in measuring
and steadily reducing the quantity of embodied carbon of
construction materials and products.
(b) Administration of Funds.--Of the amounts made available under
this section, the Administrator of the Environmental Protection Agency
shall reserve 7.5 percent for administrative costs necessary to carry
out this section.
(c) Definitions.--In this section:
(1) Embodied carbon.--The term ``embodied carbon'' means
the quantity of greenhouse gas emissions associated with all
relevant stages of production of a material or product,
measured in kilograms of carbon dioxide-equivalent per unit of
such material or product.
(2) Environmental product declaration.--The term
``environmental product declaration'' means a document that
reports the environmental impact of a material or product
that--
(A) includes measurement of the embodied carbon of
the material or product;
(B) conforms with international standards, such as
a Type III environmental product declaration, as
defined by the International Organization for
Standardization standard 14025; and
(C) is developed in accordance with any
standardized reporting criteria specified by the
Administrator of the Environmental Protection Agency.
SEC. 30114. ENVIRONMENTAL PROTECTION AGENCY METHANE FEE.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Administrator of the Environmental
Protection Agency for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $75,000,000, to remain available
until expended (except that no funds shall be disbursed after September
30, 2024), to carry out section 136 of the Clean Air Act, as added by
this section.
(b) Amendment.--Part A of title I of the Clean Air Act (42 U.S.C.
7401 et seq.), as amended, is further amended by adding at the end the
following:
``SEC. 136. METHANE FEE FROM PETROLEUM AND NATURAL GAS SYSTEMS.
``(a) In General.--The Administrator shall impose and collect a fee
from the owner or operator of each applicable facility that is required
to report methane emissions pursuant to subpart W of part 98 of title
40, Code of Federal Regulations (or any successor regulations).
``(b) Applicable Facility.--For purposes of this section, the term
`applicable facility' means a facility within the following industry
segments, as defined in subpart W of part 98 of title 40, Code of
Federal Regulations (or any successor regulations):
``(1) Offshore petroleum and natural gas production.
``(2) Onshore petroleum and natural gas production.
``(3) Natural gas processing,
``(4) Natural gas transmission and compression.
``(5) Underground natural gas storage.
``(6) Liquefied natural gas storage.
``(7) Liquefied natural gas import and export equipment.
``(8) Onshore petroleum and natural gas gathering and
boosting.
``(9) Onshore natural gas transmission pipeline
``(c) Fee Amount.--The amount of a fee imposed and collected under
subsection (a) for an applicable facility shall be equal to the product
obtained by multiplying--
``(1) subject to subsection (d), the number of tons of
methane reported for the applicable facility pursuant to
subpart W of part 98 of title 40, Code of Federal Regulations
(or any successor regulations), during the previous reporting
period; and
``(2) $1500.
``(d) Intensity Threshold.--
``(1) Petroleum and natural gas production.--With respect
to imposing and collecting the fee under subsection (a) for an
applicable facility in an industry segment listed in paragraph
(1) or (2) of subsection (b), the Administrator shall impose
and collect the fee on the reported tons of methane emissions
that exceed 0.20 percent of the natural gas sent to sale from
such facility.
``(2) Nonproduction petroleum and natural gas systems.--
With respect to imposing and collecting the fee under
subsection (a) for an applicable facility in an industry
segment listed in paragraph (3), (5), (6), (7), or (8) of
subsection (b), the Administrator shall impose and collect the
fee on the reported tons of methane emissions that exceed 0.05
percent of the natural gas sent to sale from such facility.
``(3) Natural gas transmission.--With respect to imposing
and collecting the fee under subsection (a) for an applicable
facility in an industry segment listed in paragraph (4) or (9)
of subsection (b), the Administrator shall impose and collect
the fee on the reported tons of methane emissions that exceed
0.11 percent of the natural gas sent to sale from such
facility.
``(e) Period.--The fee under subsection (a) shall be imposed and
collected beginning with respect to emissions reported for calendar
year 2023 and for each year thereafter.
``(f) Implementation.--In addition to other authorities in this Act
addressing air pollution from the oil and natural gas sectors, the
Administrator may issue guidance or regulations as necessary to carry
out this section.
``(g) Reporting.--Not later than 2 years after the date of
enactment of this section, and as necessary thereafter, the
Administrator shall revise the requirements of subpart W of part 98 of
title 40, Code of Federal Regulations--
``(1) to reduce the facility emissions threshold for
reporting under such subpart and for paying the fee imposed
under this section to 10,000 metric tons of carbon dioxide
equivalent of greenhouse gases emitted per year; and
``(2) to ensure the reporting under such subpart, and
calculation of fees under subsection (c) of this section, are
based on empirical data and accurately reflect the total
methane emissions from the applicable facilities.
``(h) Liability for Fee Payment.--A facility owner or operator's
liability for payment of the fee under subsection (a) is not affected
in any way by emission standards, permit fees, penalties, or other
requirements under this Act or any other legal authorities.
``(i) Use of Proceeds.--
``(1) Transfer of funds.--For each applicable fiscal year,
the Secretary of the Treasury shall, without further
appropriation, transfer to the Administrator an amount equal to
75 percent of the amounts received during the preceding fiscal
year as a result of the methane fee in subsection (a).
``(2) Use of funds.--The Administrator shall, without
further appropriation, use the amounts transferred under
paragraph (1) (except that no funds shall be disbursed after
September 30, 2028)--
``(A) to cover all direct and indirect costs
required to develop and administer this section,
including the costs of--
``(i) implementing the fee;
``(ii) continuous emissions and ambient
methane and other greenhouse gas monitoring;
``(iii) preparing generally applicable
regulations, or guidance;
``(iv) modeling, analyses, and
demonstrations; and
``(v) preparing inventories, gathering
empirical data, and tracking emissions;
``(B) for grants, rebates, contracts and other
activities of the Environmental Protection Agency for
the purposes of providing financial and technical
assistance to owners and operators of applicable
facilities preparing and submitting greenhouse gas
reports under subpart W of part 98 of title 40, Code of
Federal Regulations (or successor regulations);
``(C) for grants, rebates, contracts, and other
activities of the Environmental Protection Agency
authorized under section 103 for methane emissions
monitoring; and
``(D) for grants, rebates, contracts, and other
activities of the Environmental Protection Agency for
the purposes of providing financial and technical
assistance to reduce methane and other greenhouse gas
emissions from petroleum and natural gas systems,
mitigate legacy air pollution from petroleum and
natural gas systems, and provide support for
communities, including funding for--
``(i) improving climate resiliency of
communities and petroleum and natural gas
systems;
``(ii) improving and deploying industrial
equipment and processes that reduce methane and
other greenhouse gas emissions;
``(iii) supporting innovation in reducing
methane and other greenhouse gas emissions from
petroleum and natural gas systems;
``(iv) mitigating health effects of methane
and other greenhouse gas emissions, and legacy
air pollution from petroleum and natural gas
systems in low-income and disadvantaged
communities; and
``(v) supporting environmental
restoration.''.
Subtitle B--Hazardous Materials
SEC. 30201. SUPERFUND INVESTMENTS.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $10,000,000,000, to remain available until expended, for
response actions carried out by Federal agencies, consistent with
section 120 of the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9620) at Federal facilities
included on the National Priority List published pursuant to section
105 of such Act (42 U.S.C. 9605), which shall supplement, not supplant,
individual agency appropriations for such response actions.
SEC. 30202. FUNDING TO ADDRESS TOXICS IN SCHOOLS.
In addition to amounts otherwise available, there is appropriated
to the Administrator of the Environmental Protection Agency for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$50,000,000, to remain available until expended, for grants, contracts,
and other activities to reduce pollution at schools in low-income and
disadvantaged communities under title V of the Toxic Substances Control
Act (15 U.S.C. 2695 et seq.).
SEC. 30203. GRANTS TO REDUCE WASTE IN COMMUNITIES.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $750,000,000, to remain available until
expended (except that no funds shall be disbursed after September 30,
2031), to make grants, on a competitive basis, to eligible recipients
to--
(1) minimize the amount of waste generated from
manufacturing processes or when consumer products are disposed
of, including by encouraging product or manufacturing redesign
or redevelopment that reduces packaging and waste byproducts;
(2) construct, expand, or modernize infrastructure for
organics recycling and reuse, including any facility,
machinery, or equipment used to collect and process organic
material;
(3) create market demand or manufacturing capacity for
recovered, recyclable, or recycled commodities and products;
(4) support projects and programs that reduce food waste;
or
(5) support the development and implementation of
activities that reduce the amount of waste disposed of in
landfills, including--
(A) expanding the availability of curbside organic
waste collection;
(B) encouraging diversion of organic waste from
landfills; or
(C) increasing fees imposed on the disposal of
waste, including organic waste, at landfills.
(b) Reservation.--Of the funds made available under this section,
the Administrator of the Environmental Protection Agency shall reserve
$300,000,000 for grants for projects in low-income or disadvantaged
communities.
(c) Administration of Funds.--Of the funds made available under
this section, the Administrator of the Environmental Protection Agency
shall reserve 2 percent for administrative costs to carry out this
section.
(d) Definition of Eligible Recipient.--In this section, the term
``eligible recipient'' means--
(1) a single unit of State, local, or Tribal government;
(2) a partnership of multiple units of State, local, or
Tribal governments;
(3) a partnership of one or more units of State, local, or
Tribal governments and one or more for-profit or nonprofit
organizations; or
(4) a nonprofit organization or a partnership of nonprofit
organizations.
SEC. 30204. ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Administrator of the Environmental
Protection Agency for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $5,000,000,000, to remain
available until expended (except that no funds shall be disbursed after
September 30, 2031), to carry out this section.
(b) Grants.--
(1) In general.--The Administrator of the Environmental
Protection Agency may use amounts made available under
subsection (a) to award grants for periods of up to 3 years to
eligible entities to carry out activities described in
paragraph (2) that benefit disadvantaged communities, as
defined by the Administrator.
(2) Eligible activities.--An eligible entity may use a
grant awarded under this subsection for--
(A) investments in community low-emission, zero-
emission, and emission-reducing infrastructure,
including construction of such infrastructure;
(B) climate resiliency, mitigation, and adaptation
projects, including projects related to urban heat
islands, extreme heat, wood heater emissions, and
wildfire events;
(C) community-led pollution monitoring, prevention,
and remediation, including any necessary job training
programs;
(D) reducing indoor toxics and indoor air
pollution;
(E) facilitating engagement of disadvantaged
communities in State and Federal public processes,
including facilitating such engagement in advisory
groups, workshops, and rulemakings; or
(F) any other activity the Administrator of the
Environmental Protection Agency determines appropriate.
(3) Eligible entities.--In this subsection, the term
``eligible entity'' means--
(A) a partnership between an Indian Tribe, a local
government, or an institution of higher education and a
community-based nonprofit organization;
(B) a community-based nonprofit organization; or
(C) a partnership of community-based nonprofit
organizations.
(4) Priority.--In awarding grants under this subsection,
the Administrator of the Environmental Protection Agency shall
give priority to eligible entities described in subparagraph
(B) or (C) of paragraph (3).
(c) Technical Assistance.--The Administrator of the Environmental
Protection Agency shall reserve $500,000,000 of the amounts made
available under subsection (a) for grants or contracts for technical
assistance throughout the United States related to grants awarded in
this section.
Subtitle C--Drinking Water
SEC. 30301. LEAD SERVICE LINE REPLACEMENT.
(a) In General.--In addition to amounts otherwise available, there
is appropriated for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $30,000,000,000, to make capitalization
grants under section 1452 of the Safe Drinking Water Act (42 U.S.C.
300j-12), to remain available until expended, for full lead service
line replacement projects and associated activities directly connected
to the identification, planning, design, and full replacement of lead
service lines, of which $20,000,000,000 shall be for subsidies to
disadvantaged communities (as defined in subsection (d)(3) of such
section) in the form of loans, with 100 percent forgiveness of
principal, or grants, notwithstanding subsection (d)(2) of such
section.
(b) Prohibition on Partial Line Replacement.--No funds made
available under this section may be used for partial replacement of
lead service lines.
(c) No Leveraging.--Funds made available under this section may not
be used as a source of payment of, or security for (directly or
indirectly), in whole or in part, any obligation the interest on which
is exempt from the tax imposed under chapter 1 of the Internal Revenue
Code of 1986.
SEC. 30302. COMMUNITY WATER SYSTEM RISK AND RESILIENCE.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $500,000,000, to remain available until expended, for
grants under section 1433(g) of the Safe Drinking Water Act (42 U.S.C.
300i-2(g)).
SEC. 30303. GRANTS FOR STATE PROGRAMS.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available until expended, for
grants under section 1443 of the Safe Drinking Water Act (42 U.S.C.
300j-2).
SEC. 30304. ASSISTANCE FOR COLONIAS.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available until expended, for
grants under section 1456 of the Safe Drinking Water Act (42 U.S.C.
300j-16).
SEC. 30305. GRANTS TO REDUCE LEAD IN SCHOOL DRINKING WATER.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $700,000,000, to remain available until expended, for
grants under sections 1464 and 1465 of the Safe Drinking Water Act (42
U.S.C. 300j-24 and 300j-25), of which--
(1) $420,000,000 shall be for grants for the installation
and maintenance of lead filtration stations at schools and
child care programs;
(2) $150,000,000 shall be for grants under section 1464(d);
and
(3) $50,000,000 shall be for grants under section
1465(b)(1) to pay the costs of replacement of drinking water
fountains in schools.
SEC. 30306. GRANTS FOR INDIAN RESERVATION DRINKING WATER
INFRASTRUCTURE.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available until expended, to
implement eligible projects under section 2001 of America's Water
Infrastructure Act of 2018 (42 U.S.C. 300j-3c note), notwithstanding
the geographic limitations in that section.
SEC. 30307. ASSISTANCE FOR AREAS AFFECTED BY NATURAL DISASTERS.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available until expended, for
grants under section 2020 of America's Water Infrastructure Act of 2018
(42 U.S.C. 300j-12 note), of which, notwithstanding subsection (a)(2)
of such section, $10,000,000 shall be available to make grants to Guam,
the Virgin Islands, American Samoa, and the Northern Mariana Islands
for the purposes of providing assistance to eligible systems to restore
or increase compliance with national primary drinking water regulations
in an underserved area.
SEC. 30308. ASSISTANCE FOR DISADVANTAGED COMMUNITIES.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $200,000,000, to remain available until expended, for
grants under section 1459A(b) of the Safe Drinking Water Act (42 U.S.C.
300j-19a(b)).
SEC. 30309. GRANTS FOR CONTAMINANT MONITORING.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available until expended, to make
grants to pay for the costs of monitoring required under section
1445(a)(2) of the Safe Drinking Water Act (42 U.S.C. 300j-4(a)(2)).
SEC. 30310. TECHNICAL ASSISTANCE TO SMALL PUBLIC WATER SYSTEMS.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available until expended, to
provide technical assistance under section 1442(e) of the Safe Drinking
Water Act (42 U.S.C. 300j-1(e)).
SEC. 30311. FUNDING FOR WATER ASSISTANCE PROGRAM.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary of Health and Human Services (in this
section referred to as the ``Secretary'') for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $500,000,000, to
remain available until expended, for grants to States and Indian Tribes
to assist low-income households, particularly those with the lowest
incomes, that pay a high proportion of household income for drinking
water and wastewater services, by providing funds to owners or
operators of public water systems or treatment works to reduce
arrearages of and rates charged to such households for such services.
(b) Allotment.--The Secretary shall--
(1) allot amounts appropriated in this section to a State
or Indian Tribe based on--
(A) the percentage of households in the State, or
under the jurisdiction of the Indian Tribe, with annual
income equal to or less than 150 percent of the Federal
poverty line; and
(B) the percentage of households in the State, or
under the jurisdiction of the Indian Tribe, that spend
more than 30 percent of monthly income on housing; and
(2) reserve up to 3 percent of the amount appropriated in
this section for Indian Tribes and Tribal organizations.
(c) Definition.--In this section, the term ``State'' means each of
the 50 States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, American Samoa, Guam, the Virgin Islands,
and the Commonwealth of the Northern Mariana Islands.
Subtitle D--Energy
PART 1--CLEAN ELECTRICITY PERFORMANCE PROGRAM
SEC. 30411. CLEAN ELECTRICITY PERFORMANCE PROGRAM.
(a) Appropriation.--
(1) Administration.--In addition to amounts otherwise
available, there is appropriated to the Secretary of Energy for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $250,000,000, to remain available until
September 30, 2031 (except that no funds shall be disbursed
after September 30, 2031), for the administrative expenses of
carrying out section 224 of the Federal Power Act (as added by
this section).
(2) Grants.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Energy for each of
fiscal years 2023 through 2031, out of any money in the
Treasury not otherwise appropriated, such sums as are necessary
to issue grants under section 224 of the Federal Power Act (as
added by this section) (except that no funds shall be disbursed
after September 30, 2031).
(b) Program.--Part II of the Federal Power Act is amended by adding
after section 223 (16 U.S.C. 824w) the following:
``SEC. 224. CLEAN ELECTRICITY PERFORMANCE PROGRAM.
``(a) Establishment of Program.--Not later than 1 year after the
date of enactment of this section, the Secretary shall establish a
program to--
``(1) issue grants for each of calendar years 2023 through
2030 to eligible electricity suppliers in accordance with this
section; and
``(2) collect payments for each of calendar years 2023
through 2030 from eligible electricity suppliers in accordance
with this section.
``(b) Grants to Eligible Electricity Suppliers.--
``(1) Eligibility for grants.--
``(A) In general.--Except as provided in
subparagraph (B), an eligible electricity supplier
shall be eligible for a grant under this section for a
performance year if the certified clean electricity
percentage of the eligible electricity supplier for
that performance year is increased by at least 4
percentage points from the greater of--
``(i) the highest certified clean
electricity percentage of the eligible
electricity supplier for any year prior to that
performance year; or
``(ii) the baseline clean electricity
percentage of the eligible electricity
supplier.
``(B) Adjustment.--With respect to a performance
year in which an eligible electricity supplier
submitted a payment under this section for the year
prior to that performance year, the eligible
electricity supplier shall be eligible for a grant
under this section if the certified clean electricity
percentage of the eligible electricity supplier for
that performance year is increased by at least--
``(i) the number of percentage points
described in subparagraph (A); plus
``(ii) the number of percentage points that
equals the sum described in subsection
(c)(2)(B) for the year for which the payment
was submitted.
``(2) Grant calculation.--Except as provided in subsection
(d), the Secretary shall issue to an eligible electricity
supplier a grant under this section for a performance year in
an amount equal to $150 for each megawatt-hour of qualified
clean electricity validly claimed by the eligible electricity
supplier under subsection (e)(1)(A)(i) for that performance
year that exceeds the sum of--
``(A) the product obtained by multiplying--
``(i) the total load of the eligible
electricity supplier for that performance year;
and
``(ii) 0.015; and
``(B) the greater of--
``(i) the largest quantity of megawatt-
hours of qualified clean electricity claimed by
the eligible electricity supplier under
subsection (e)(1)(A)(i) for any year prior to
that performance year; or
``(ii) the quantity of megawatt-hours
represented by the baseline clean electricity
percentage of the eligible electricity
supplier.
``(3) Initial grants.--In calculating a grant for
performance year 2023, the product described in paragraph
(2)(A) shall be obtained by substituting 0.025 for 0.015.
``(c) Payments.--
``(1) In general.--Except as provided in paragraph (3) and
subsection (d), the Secretary shall collect a payment for a
performance year in accordance with this subsection from each
eligible electricity supplier that does not have a certified
clean electricity percentage for that performance year that is
increased by at least 4 percentage points above the greater
of--
``(A) the highest certified clean electricity
percentage of the eligible electricity supplier from
any year prior to that performance year; or
``(B) the baseline clean electricity percentage of
the eligible electricity supplier.
``(2) Payment calculation.--For each eligible electricity
supplier, the payment described in paragraph (1) shall be equal
to the dollar amount that is the product obtained by
multiplying--
``(A) $40; and
``(B) the quantity of megawatt-hours that
represents the percentage of the total electricity load
of the eligible electricity supplier for the
performance year that is represented by the number that
equals the sum of--
``(i) 4; plus
``(ii) the number that is equal to--
``(I) the greater of--
``(aa) the highest
certified clean electricity
percentage of the eligible
electricity supplier for any
year prior to that performance
year; or
``(bb) the baseline clean
electricity percentage of the
eligible electricity supplier;
minus
``(II) the certified clean
electricity percentage of the eligible
electricity supplier for that
performance year.
``(3) Exception.--The Secretary shall not collect a payment
for a performance year from an eligible electricity supplier
that has a certified clean electricity percentage for that
performance year that is 85 percent or greater, subject to the
condition that the certified clean electricity percentage of
the eligible electricity supplier for that performance year is
not less than the certified clean electricity percentage of the
eligible electricity supplier for the year prior to that
performance year.
``(4) Deadline.--The Secretary shall collect a payment
under this section from an eligible electricity supplier not
later than 6 months after the date on which the eligible
electricity supplier submits the applicable certification under
subsection (e)(1)(A)(i).
``(5) Restriction.--An eligible electricity supplier may
not recover the cost of a payment submitted under this section
from any person other than the shareholders or owners of the
eligible electricity supplier.
``(d) Deferral of Grants and Payments.--
``(1) In general.--Subject to paragraph (2), with respect
to any of calendar years 2023 through 2029, an eligible
electricity supplier may elect to defer a grant or a payment
for the calendar year, and shall notify the Secretary of such
election at such time and in such form as the Secretary
requires.
``(2) Limitation.--An eligible electricity supplier may not
make an election described in paragraph (1) for a calendar year
if the eligible electricity supplier made that election for the
preceding 2 calendar years.
``(3) Grant or payment following deferral.--
``(A) Eligibility.--An eligible electricity
supplier making an election under this subsection shall
be eligible for a grant, or shall submit a payment, for
a performance year following a deferred year based on
whether its certified clean electricity percentage
increased, on average, by 4 or more percentage points
in that performance year and each consecutive deferred
year immediately preceding that performance year.
``(B) Amounts.--The amount of a grant or payment
pursuant to this subsection shall be based on the
calculations set forth in subsections (b) and (c),
respectively, adjusted to account for the performance
year and each deferred year.
``(e) Requirements.--
``(1) Conditions.--In each of calendar years 2024 through
2031, each eligible electricity supplier--
``(A) shall submit to the Secretary, by a date
determined by the Secretary (but not later than June
1)--
``(i) a performance certification for the
preceding calendar year, using such methods and
subject to such audit provisions as the
Secretary determines appropriate, of--
``(I) the total electricity load of
the eligible electricity supplier in
such preceding calendar year;
``(II) the quantity of megawatt-
hours of qualified clean electricity
that the eligible electricity supplier
claims for such preceding calendar year
for purposes of this section; and
``(III) the percentage of the total
electricity load certified under
subclause (I) that is qualified clean
electricity claimed under subclause
(II);
``(ii) a written assurance that the
eligible electricity supplier will promptly
report to any applicable commission, board, or
governance body that regulates the eligible
electricity supplier any grant received or
payment submitted by the eligible electricity
supplier under this section; and
``(iii) a compliance certification that the
eligible electricity supplier has complied,
with respect to each grant received or payment
submitted by the eligible electricity supplier
under this section, as applicable, with--
``(I) all written assurances
submitted under this section;
``(II) the requirements of
paragraph (3); and
``(III) requirements established by
the Secretary to ensure the financial
integrity of grants issued and payments
collected under this section; and
``(B) may not receive a grant under this section
for a performance year unless the eligible electricity
supplier--
``(i) complies with subparagraph (A) with
respect to that performance year; and
``(ii) submits to the Secretary, for that
performance year, a written assurance in
accordance with section 803(b)(3) of the Energy
Independence and Security Act (42 U.S.C.
17282(b)(3)) (for purposes of which any
reference to a grant under that section shall
be considered to be a reference to a grant
under this section).
``(2) Baseline.--Each eligible electricity supplier,
including each new eligible electricity supplier, shall provide
sufficient information to the Secretary, as determined by the
Secretary, to establish its baseline clean electricity
percentage.
``(3) Use of funds.--An eligible electricity supplier shall
use a grant received under this section exclusively for the
benefit of the ratepayers of the eligible electricity supplier,
including direct bill assistance to ratepayers, investments in
qualified clean electricity and energy efficiency, and worker
retention.
``(f) Definitions.--In this section:
``(1) Baseline clean electricity percentage.--
``(A) In general.--Except as provided in
subparagraph (B), the term `baseline clean electricity
percentage' means, with respect to an eligible
electricity supplier, the average percentage of the
total electricity load of the eligible electricity
supplier for calendar years 2019 and 2020 that is
represented by, as determined by the Secretary--
``(i) the average clean electricity
percentage of the eligible electricity supplier
for such calendar years; and
``(ii) a share of any unallocated qualified
clean electricity for such calendar years.
``(B) New eligible electricity suppliers.--With
respect to a new eligible electricity supplier, the
term `baseline clean electricity percentage' means the
prevailing average clean electricity percentage of
comparable eligible electricity suppliers in the area
in which the new eligible electricity supplier provides
end-use electricity customers with electricity, as
determined by the Secretary.
``(2) Carbon dioxide equivalent emissions.--The term
`carbon dioxide equivalent emissions' means, with respect to a
greenhouse gas, the number of metric tons of carbon dioxide
emissions with the same global warming potential over a 20-year
period as 1 metric ton of emissions of the greenhouse gas, as
determined by the Secretary, taking into consideration relevant
methods and information described in assessment reports
prepared by the Intergovernmental Panel on Climate Change.
``(3) Carbon intensity.--The term `carbon intensity' means
the carbon dioxide equivalent emissions released into the
atmosphere from the generation of 1 megawatt-hour of
electricity by an electric generating unit, as determined by
the Secretary.
``(4) Certified clean electricity percentage.--The term
`certified clean electricity percentage' means, with respect to
an eligible electricity supplier, the percentage certified by
the eligible electricity supplier under subsection
(e)(1)(A)(i)(III), which may only include qualified clean
electricity with respect to which the eligible electricity
supplier holds the exclusive rights to the qualifying
attributes.
``(5) Clean electricity percentage.--The term `clean
electricity percentage' means, with respect to an eligible
electricity supplier, the percentage of the total electricity
load of the eligible electricity supplier that is qualified
clean electricity, with respect to which the eligible
electricity supplier holds the exclusive rights to the
qualifying attributes.
``(6) Eligible electricity supplier.--The term `eligible
electricity supplier' means, notwithstanding section 201(b)(1),
any entity within the United States, including an entity
described in section 201(f), that--
``(A) provides end-use electricity customers with
electricity; and
``(B) is granted the authority or has an obligation
pursuant to Federal, State, or local law or regulation
to provide electricity to end-use electricity
customers.
``(7) New eligible electricity supplier.--The term `new
eligible electricity supplier' means an eligible electricity
supplier that did not provide electricity to end-use
electricity customers in both of calendar years 2019 and 2020.
``(8) Performance year.--The term `performance year' means
the calendar year for which a certification was submitted under
subsection (e)(1)(A)(i).
``(9) Qualified clean electricity.--The term `qualified
clean electricity' means electricity generated by an electric
generating unit, or technology type or class thereof, that has
a carbon intensity that is not more than 0.10.
``(10) Secretary.--The term `Secretary' means the Secretary
of Energy.
``(11) Total electricity load.--The term `total electricity
load' means, with respect to an eligible electricity supplier,
the total quantity, in megawatt-hours, of electricity provided
by the eligible electricity supplier to end-use electricity
customers in a calendar year.''.
PART 2--RESIDENTIAL EFFICIENCY AND ELECTRIFICATION REBATES
SEC. 30421. HOME ENERGY PERFORMANCE-BASED, WHOLE-HOUSE REBATES AND
TRAINING GRANTS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Energy (referred to in this
section as the ``Secretary'') for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $9,000,000,000, to remain
available until September 30, 2031, to institute guidelines for State
energy offices to provide rebates to homeowners and aggregators for
whole-house energy saving retrofits as authorized under section 362 of
the Energy Policy and Conservation Act (42 U.S.C. 6322), which shall be
made available as follows:
(1) Home on-line performance-based energy efficiency (hope)
contractor training grants.--
(A) In general.--$500,000,000 shall be available
for the Secretary to award grants to States through the
State Energy Program, which shall partner with
nonprofit organizations to fund qualifying programs
described in subparagraph (B) that provide training
courses and opportunities to support home energy
efficiency upgrade construction services to train
workers, both on-line and in-person, to support and
provide for the home energy efficiency retrofits under
paragraph (2).
(B) Qualifying programs.--For the purposes of this
paragraph, qualifying programs are programs that--
(i) provide the equivalent of at least 30
hours in total course time;
(ii) are provided by a provider that is
accredited by the Interstate Renewable Energy
Council or has other accreditation determined
to be equivalent by the Secretary;
(iii) are, with respect to a particular
job, aligned with the relevant National
Renewable Energy Laboratory Job Task Analysis,
or other credentialing program foundation that
helps identify the necessary core knowledge
areas, critical work functions, or skills, as
approved by the Secretary;
(iv) have established learning objectives;
(v) include, as the Secretary determines
appropriate, an appropriate assessment of such
learning objectives that may include a final
exam, to be proctored on-site or through remote
proctoring, or an in-person field exam; and
(vi) include training related to--
(I) contractor certification;
(II) energy auditing or assessment;
(III) home energy systems
(including Energy Star-qualified HVAC
systems and Wi-Fi-enabled home energy
communications technology, or any
future technology that achieves the
same goals);
(IV) insulation installation and
air leakage control;
(V) health and safety regarding the
installation of energy efficiency
measures or health and safety impacts
associated with energy efficiency
retrofits;
(VI) indoor air quality;
(VII) energy efficiency retrofits
in manufactured housing; and
(VIII) residential electrification
training and conversion training.
(C) State energy program providers.--A State energy
office may use not more than 10 percent of the amounts
made available to the State energy office under this
paragraph to administer a qualifying program described
in subparagraph (B), including for the conduct of
design and operations activities.
(D) Terms and conditions.--
(i) Eligible use of funds.--Of the amounts
made available to a State under this paragraph,
85 percent shall be used by the State--
(I) to support the operations of
qualifying programs, including
establishing, modifying, or maintaining
the online systems, staff time, and
software and online program management,
through a course that meets the
applicable criteria;
(II) to reimburse the contractor
company for training costs for
employees;
(III) to provide any home
technology support needed for an
employee to receive training pursuant
to this section; and
(IV) to support wages of employees
during training.
(ii) Timing of obligations.--Amounts made
available under this paragraph shall be used,
as necessary, to cover or reimburse allowable
costs incurred after the date of enactment of
this Act.
(iii) Unobligated amounts.--Amounts made
available under this paragraph which are not
accepted, are voluntarily returned, or
otherwise recaptured for any reason shall be
used to fund grants under paragraph (2).
(2) Home owner managing energy savings (homes) rebates.--
(A) In general.--95 percent of amounts made
available under this section shall be available to the
Secretary to award grants to State energy offices to
establish Home Owner Managing Energy Savings (HOMES)
Rebate Programs through the State Energy Program under
part B of title III of the Energy Policy and
Conservation Act (42 U.S.C. 6291 et seq.), in
accordance with the formula for the State Energy
Program in effect on January 1, 2021.
(B) Coordination.--In carrying out this section,
the Secretary shall coordinate with State energy
offices to ensure that programs that receive awards are
formulated to achieve maximum greenhouse gas emissions
reductions and household energy and costs savings.
(C) Application.--In order to receive a grant under
this section a State shall submit to the Secretary an
application that includes a plan to implement a
qualifying State program that includes--
(i) a plan to ensure that each home energy
efficiency retrofit under the program--
(I) is completed by a contractor
who meets minimum training
requirements, certification
requirements, and other requirements
established by the Secretary; and
(II) includes installation of 1 or
more home energy efficiency retrofit
measures that are modeled to achieve,
or are shown to achieve, the minimum
reduction required in home energy use,
or with respect to a portfolio of home
energy efficiency retrofits, in
aggregated home energy use for such
portfolio;
(ii) a plan--
(I) to utilize, for purposes of
modeled performance home rebates,
modeling software, methods, and
procedures for determining and
documenting the reductions in home
energy use resulting from the
implementation of a home energy
efficiency retrofit that is calibrated
to historical energy usage for a home
consistent with BPI 2400, that are
approved by the Secretary, that can
provide evidence for necessary
improvements to a State program, and
that can help to calibrate models for
accuracy;
(II) to utilize, for purposes of
measured performance home rebates,
open-source advanced measurement and
verification software approved by the
Secretary for determining and
documenting the monthly and hourly (if
available) weather-normalized baseline
energy use of a home, the reductions in
monthly and hourly (if available)
weather-normalized energy use of a home
resulting from the implementation of a
home energy efficiency retrofit, and
open-source advanced measurement and
verification software approved by the
Secretary; and
(III) to value savings based on
time, location, or greenhouse gas
emissions;
(iii) procedures for a homeowner to
transfer the right to claim a rebate to the
contractor performing the applicable home
energy efficiency retrofit or to an aggregator,
if the State program will utilize aggregators;
(iv) if the State program will utilize
aggregators to facilitate delivery of rebates
to homeowners or contractors, requirements for
an entity to be eligible to serve as an
aggregator;
(v) quality monitoring to ensure that each
installation that receives a rebate is
documented in a certificate, provided by the
contractor to the homeowner, that details the
work, including information about the
characteristics of equipment and materials
installed, as well as projected energy savings
or energy generation, in a way that will enable
the homeowner to clearly communicate the value
of the high-performing features funded by the
rebate to buyers, real estate agents,
appraisers and lenders; and
(vi) a procedure for providing the
contractor performing a home energy efficiency
retrofit or an aggregator who has the right to
claim such rebate with $200 for each home
located in an underserved community that
receives a home efficiency retrofit for which a
rebate is provided under the program.
(D) Amount of rebates for single family and
multifamily homes.--Of the amounts provided to a State
energy office under this section, 85 percent shall be
used to provide Home Owner Managing Energy Savings
(HOMES) Rebates to--
(i) individuals and aggregators for the
energy efficiency upgrades of single-family
homes of not more than 4 units--
(I) $2,000 for a retrofit that
achieves at least 20 percent modeled
energy system savings or 50 percent of
the project cost, whichever is lower;
(II) $4,000 for a retrofit that
achieves at least 35 percent modeled
energy system savings or 50 percent of
the project cost, whichever is lower;
or
(III) for measured energy savings,
a payment per kilowatt hour saved, or
kilowatt hour-equivalent saved, equal
to $2,000 for a 20 percent reduction of
energy use for the average home in the
State, for homes or portfolios of homes
that achieve at least 15 percent energy
savings, or 50 percent of the project
cost, whichever is lower;
(ii) multifamily building owners and
aggregators for the energy efficiency upgrades
of multifamily buildings--
(I) $2,000 per dwelling unit for a
retrofit that achieves at least 20
percent modeled energy system savings
up a maximum of $200,000 per
multifamily building;
(II) $4,000 per dwelling unit for a
retrofit that achieves at least 35
percent modeled energy system savings
up to a maximum of $400,000 per
multifamily building; or
(III) for measured energy savings,
a payment rate per kilowatt hours
saved, or kilowatt hour-equivalent
saves, equal to $2,000 for a 20 percent
reduction of energy use for the average
multifamily building in the State, for
multifamily buildings or portfolios of
buildings that achieve at least 15
percent energy savings, or 50 percent
of the project cost, whichever is
lower; or
(iii) individuals and aggregators for the
energy efficiency upgrades of single family
homes of 4 units or less or multifamily
buildings that are occupied by residents with
an annual income of less than 80 percent of the
area median income as published by the
Department of Housing and Urban Development--
(I) $4,000 for a retrofit that
achieves at least 20 percent modeled
energy system savings or 80 percent of
the project cost, whichever is lower;
(II) $8,000 for a retrofit that
achieves at least 35 percent modeled
energy system savings or 80 percent of
the project cost, whichever is lower;
or
(III) for measured energy savings,
a payment rate per kilowatt hour saved,
or kilowatt hour-equivalent saved,
equal to $4,000 for a 20 percent
reduction of energy use for the average
multifamily building in the State, for
multifamily buildings or portfolios of
buildings that achieve at least 15
percent energy savings, or 80 percent
of the project cost, whichever is
lower.
(E) Requirement.--Not less than 25 percent of the
funds provided to a State energy office under this
section shall be used for the purposes of each of
clauses (i), (ii), and (iii) of subparagraph (D).
(F) Eligibility of certain appliances.--In
calculating total energy savings for single family or
multifamily homes under this section, a program may
include savings from the purchase of high-efficiency
natural gas HVAC systems and water heaters certified
under the Energy Star program until the date that is 6
years after the date of enactment of this Act.
(G) Planning.--Not to exceed 20 percent of any
grant made with funds made available under this
paragraph shall be expended for planning and management
development and administration.
(H) Technical assistance.--Amounts made available
under this paragraph shall be used for single family,
multifamily, and manufactured housing rebates and the
Secretary shall, in consultation with States,
contractors, and other technical experts design
support, methodology, and contractor criteria as
appropriate for the different building stock.
(I) Use of funds.--Rebate amounts made available
through the High-Efficiency Electric Home Rebate
Program established under subsection (b)(1) of section
124 of the Energy Policy Act of 2005 (42 U.S.C. 15821)
(as amended by section 30422 of this subtitle) may be
used in conjunction with the funds made available under
this section.
(b) Definitions.--In this section:
(1) Aggregator.--The term ``aggregator'' means a gas
utility, electric utility, or commercial, nonprofit, or
government entity that may receive rebates provided under a
State program under this section for 1 or more portfolios
consisting of 1 or more energy efficiency retrofits.
(2) Contractor certification.--The term ``contractor
certification'' means--
(A) an industry recognized certification that may
be obtained by a residential contractor to advance the
expertise and education of the contractor in energy
efficiency retrofits of residential buildings; and
(B) any other certification the Secretary
determines appropriate for purposes of the HOMES Rebate
Program established under subsection (a)(2).
(3) Contractor company.--The term ``contractor company''
means a company--
(A) the business of which is to provide services to
residential building owners with respect to HVAC
systems, insulation, air sealing, or other services
that are approved by the Secretary;
(B) that holds the licenses and insurance required
by the State in which the company provides services;
and
(C) that provides services for which a rebate may
be provided pursuant to the HOMES Rebate Program
established under subsection (a)(2).
(4) Energy star program.--The term ``Energy Star program''
means the program established by section 324A of the Energy
Policy and Conservation Act (42 U.S.C. 6294a).
(5) Home.--The term ``home'' means a building with not more
than 4 dwelling units or a manufactured housing unit (including
a unit built before June 15, 1976), that--
(A) is located in the United States;
(B) was constructed before the date of enactment of
this Act; and
(C) is occupied at least 6 months out of the year.
(6) HVAC system.--The term ``HVAC system'' means a system--
(A) is certified under the Energy Star program;
(B) consisting of a heating component, a
ventilation component, and an air-conditioning
component; and
(C) the components of which may include central air
conditioning, a heat pump, a furnace, a boiler, a
rooftop unit, and a window unit.
(7) Multifamily building.--The term ``multifamily
building'' means a building with 5 or more dwelling units.
(8) State energy office.--The term ``State energy office''
means the State agency responsible for developing State energy
conservation plans under section 362 of the Energy Policy and
Conservation Act (42 U.S.C. 6322).
(9) Underserved community.--The term ``underserved
community'' means--
(A) a community located in a ZIP Code that includes
1 or more census tracts that are identified as--
(i) a low-income community; or
(ii) a community of racial or ethnic
minority concentration; or
(B) any other community that the Secretary
determines is disproportionately vulnerable to, or
bears a disproportionate burden of, any combination of
economic, social, and environmental stressors.
SEC. 30422. HIGH-EFFICIENCY ELECTRIC HOME REBATE PROGRAM.
(a) In General.--Section 124 of the Energy Policy Act of 2005 (42
U.S.C. 15821) is amended to read as follows:
``SEC. 124. HIGH-EFFICIENCY ELECTRIC HOME REBATE PROGRAM.
``(a) Appropriations.--
``(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $3,500,000,000, to remain available until
September 30, 2031, to carry out this section, including to
provide rebates under this section, of which the Secretary--
``(A) may use not more than $5,000,000 for
community and consumer education and outreach related
to this section; and
``(B) shall use not more than $300,000,000--
``(i) to administer this section; and
``(ii) to provide administrative and
technical support to certified contractor
companies, qualified providers, States, and
Indian Tribes.
``(2) Additional funding for tribal communities and low- or
moderate-income households.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $5,500,000,000, to remain available until
September 30, 2031, for--
``(A) rebates under this section relating to
qualified electrification projects carried out in
Tribal communities or for low- or moderate-income
households; and
``(B) any necessary administrative or technical
support for those qualified electrification projects.
``(b) High-efficiency Electric Home Rebates for Qualified
Electrification Projects.--
``(1) High-efficiency electric home rebates.--The Secretary
shall establish a program within the Department, to be known as
the `High-Efficiency Electric Home Rebate Program', under which
the Secretary shall provide to homeowners and owners of
multifamily buildings high-efficiency electric home rebates, in
accordance with this subsection, for qualified electrification
projects carried out at, or relating to, the homes or
multifamily buildings, as applicable.
``(2) Amount of rebate.--
``(A) In general.--Subject to subsection (c)(1)(A),
a high-efficiency electric home rebate under paragraph
(1) shall be equal to--
``(i) in the case of a qualified
electrification project described in subsection
(d)(11)(A)(i)(II) that installs a heat pump
used for water heating, not more than $1,250;
``(ii) in the case of a qualified
electrification project described in subsection
(d)(11)(A)(i)(II) that installs a heat pump
HVAC system--
``(I)(aa) not more than $3,000 if
the heat pump HVAC system has a heating
capacity of not less than 27,500 Btu
per hour; or
``(bb) not more than $4,000 if the
heat pump HVAC system meets Energy Star
program cold climate criteria and is
installed in a cold climate, as
determined by the Secretary;
``(II)(aa) not more than $1,500 if
the heat pump HVAC system has a heating
capacity of less than 27,500 Btu per
hour; or
``(bb) not more than $2,000 if the
heat pump HVAC system meets Energy Star
program cold climate criteria and is
installed in a cold climate, as
determined by the Secretary; and
``(III) $250, in addition to the
amount described in subclause (I) or
(II), if a qualified electrification
project described in subsection
(d)(11)(A)(i)(V) that installs
insulation, air sealing, and
ventilation in accordance with clause
(v) is completed within 6 months before
or after the qualified electrification
project described in that subclause;
``(iii) in the case of a qualified
electrification project described in subclause
(III) or (IV) of subsection (d)(11)(A)(i), not
more than $600;
``(iv) in the case of a qualified
electrification project described in subsection
(d)(11)(A)(i)(I) that installs an electric load
or service center panel that enables the
installation and use of any upgrade, appliance,
system, equipment, infrastructure, component,
or other item installed pursuant to any other
qualified electrification project, not more
than $3,000;
``(v) in the case of a qualified
electrification project described in subsection
(d)(11)(A)(i)(V) that installs insulation and
air sealing, not more than $800; and
``(vi) in the case of any other qualified
electrification project, including a qualified
electrification project described in any of
subclauses (I) through (III) of subsection
(d)(11)(A)(ii), for which the Secretary
provides a high-efficiency electric home
rebate, not more than an amount determined by
the Secretary for that qualified
electrification project, subject to
subparagraph (B).
``(B) Limitations on amount of rebate.--
``(i) Maximum total amount.--Subject to
subsection (c)(1)(B), the maximum total amount
that may be awarded as high-efficiency electric
home rebates under this subsection shall be
$10,000 with respect to each home for which a
high-efficiency electric home rebate is
provided.
``(ii) Costs.--
``(I) In general.--Subject to
subsection (c)(1)(C), the amount of a
high-efficiency electric home rebate
provided to a homeowner under this
subsection shall not exceed 50 percent
of the total cost of the applicable
qualified electrification project.
``(II) Labor costs.--Subject to
subsection (c)(1)(C), not more than 50
percent of the labor costs associated
with a qualified electrification
project may be included in the 50
percent of total costs for which a
high-efficiency electric home rebate is
provided under this subsection, as
described in subclause (I), subject to
the condition that labor costs account
for not more than 50 percent of the
amount of the high-efficiency electric
home rebate.
``(3) Limitations on qeps.--
``(A) Contractors.--A high-efficiency electric home
rebate may be provided for a qualified electrification
project carried out by a contractor company only if
that contractor company is a certified contractor
company.
``(B) Heat pump hvac systems.--A high-efficiency
electric home rebate may be provided for a qualified
electrification project that installs or enables the
installation of a heat pump HVAC system only if the
heat pump HVAC system--
``(i) replaces--
``(I) a nonelectric HVAC system;
``(II) an electric resistance HVAC
system; or
``(III) an air conditioning unit
that--
``(aa) does not have a
reversing valve; and
``(bb) has a lower seasonal
energy-efficiency ratio than
the heat pump HVAC system; or
``(ii) is part of new construction, as
determined by the Secretary.
``(C) Heat pumps for water heating.--A high-
efficiency electric home rebate may be provided for a
qualified electrification project that installs or
enables the installation of a heat pump used for water
heating only if the heat pump--
``(i) replaces--
``(I) a nonelectric heat pump water
heater;
``(II) a nonelectric water heater;
or
``(III) an electric resistance
water heater; or
``(ii) is part of new construction, as
determined by the Secretary.
``(D) Electric stoves, cooktops, ranges, and
ovens.--A high-efficiency electric home rebate may be
provided for a qualified electrification project
described in subsection (d)(11)(A)(i)(III) only if the
applicable electric stove, cooktop, range, or oven--
``(i) replaces a nonelectric stove,
cooktop, range, or oven; or
``(ii) is part of new construction, as
determined by the Secretary.
``(E) Electric heat pump clothes dryers.--A high-
efficiency electric home rebate may be provided for a
qualified electrification project described in
subsection (d)(11)(A)(i)(IV) only if the applicable
electric heat pump clothes dryer--
``(i) replaces a nonelectric clothes dryer;
or
``(ii) is part of new construction.
``(4) Additional incentives for contractors and qualified
providers.--
``(A) General incentive.--
``(i) In general.--With respect to each
qualified electrification project described in
clause (ii), the Secretary shall provide a
payment of $100 to the certified contractor
company or qualified provider carrying out the
qualified electrification project.
``(ii) Qualified electrification project
described.--A qualified electrification project
referred to in clause (i) is a qualified
electrification project--
``(I) that is carried out at a home
or multifamily building;
``(II) for which a rebate is
provided under this subsection; and
``(III) with respect to which the
certified contractor company or
qualified provider is not eligible for
a higher payment under any of
subparagraphs (B) through (D).
``(B) Incentive for qeps in certain communities and
households.--
``(i) In general.--With respect to each
qualified electrification project described in
clause (ii), the Secretary shall provide a
payment of $200 to the certified contractor
company or qualified provider carrying out the
qualified electrification project.
``(ii) Qualified electrification project
described.--A qualified electrification project
referred to in clause (i) is a qualified
electrification project--
``(I) that is carried out at a home
or multifamily building that--
``(aa) is located in an
underserved community or a
Tribal community; or
``(bb) is certified, or the
household of the homeowner of
which is certified, as
applicable, as low- or
moderate-income;
``(II) for which a rebate is
provided under this subsection; and
``(III) with respect to which the
certified contractor company or
qualified provider is not eligible for
a higher payment under subparagraph (C)
or (D).
``(C) Incentive for certain labor practices.--
``(i) In general.--With respect to each
qualified electrification project described in
clause (ii), the Secretary shall provide a
payment of $250 to the certified contractor
company or qualified provider carrying out the
qualified electrification project.
``(ii) Qualified electrification project
described.--A qualified electrification project
referred to in clause (i) is a qualified
electrification project--
``(I) that is carried out--
``(aa) at a home or
multifamily building; and
``(bb) by a certified
contractor company or qualified
provider that allows for the
use of collective bargaining
agreements;
``(II) for which a rebate is
provided under this subsection; and
``(III) with respect to which--
``(aa) all laborers and
mechanics employed on the
qualified electrification
project are paid wages at rates
not less than those prevailing
on projects of a character
similar in the locality; and
``(bb) the certified
contractor company or qualified
provider is not eligible for a
higher payment under
subparagraph (D).
``(D) Maximum incentive.--
``(i) In general.--With respect to each
qualified electrification project described in
clause (ii), the Secretary shall provide a
payment of $500 to the certified contractor
company or qualified provider carrying out the
qualified electrification project.
``(ii) Qualified electrification project
described.--A qualified electrification project
referred to in clause (i) is a qualified
electrification project--
``(I) that is carried out--
``(aa) at a home or
multifamily building that--
``(AA) is located
in an underserved
community or a Tribal
community; or
``(BB) is
certified, or the
household of the
homeowner of which is
certified, as
applicable, as low- or
moderate-income; and
``(bb) by a certified
contractor company or qualified
provider that allows for the
use of collective bargaining
agreements;
``(II) for which a rebate is
provided under this subsection; and
``(III) with respect to which all
laborers and mechanics employed on the
qualified electrification project are
paid wages at rates not less than those
prevailing on projects of a character
similar in the locality.
``(E) Clarification.--An amount provided to a
certified contractor company or qualified provider
under any of subparagraphs (A) through (D) shall be in
addition to the amount of any high-efficiency electric
home rebate received by the certified contractor
company or qualified provider.
``(5) Claim.--
``(A) In general.--Subject to paragraph (2)(B), a
homeowner, a certified contractor company, or a
qualified provider may claim a separate high-efficiency
electric home rebate under this subsection for each
qualified electrification project carried out at a
home.
``(B) Transfer.--The Secretary shall establish and
publish procedures pursuant to which a homeowner or
owner of a multifamily building may transfer the right
to claim a rebate under this subsection to the
certified contractor company or qualified provider
carrying out the applicable qualified electrification
project.
``(6) Multifamily buildings.--
``(A) In general.--Subject to subparagraph (B), the
owner of a multifamily building may combine the amounts
of high-efficiency electric home rebates for each
dwelling unit in the multifamily building into a single
rebate, subject to--
``(i) the condition that the applicable
qualified electrification projects benefit each
dwelling unit with respect to which the rebate
is claimed; and
``(ii) any maximum per-dwelling unit rate
established by the Secretary.
``(B) Costs.--
``(i) In general.--Subject to clause (ii),
the amount of a rebate under subparagraph (A)
shall not exceed 50 percent of the total cost,
including labor costs, of the applicable
qualified electrification projects.
``(ii) Low- or moderate-income buildings.--
In the case of a multifamily building that is
certified by the Secretary as low- or moderate-
income, the amount of a rebate under
subparagraph (A) shall not exceed 100 percent
of the total cost of the applicable qualified
electrification projects.
``(C) Procedures.--The Secretary shall establish
and publish procedures--
``(i) pursuant to which the owner of a
multifamily building may combine rebate amounts
in accordance with this subsection; and
``(ii) for the enforcement of any
limitations under this subsection.
``(7) Process.--
``(A) Rebate process.--Not later than July 1, 2022,
the Secretary shall establish a rebate processing
system that provides immediate price relief for
consumers who purchase and have installed qualified
electrification projects, in accordance with this
section.
``(B) Qualified electrification project list.--
``(i) In general.--Not later than July 1,
2022, the Secretary shall publish a list of
qualified electrification projects for which a
high-efficiency electric home rebate may be
provided under this subsection that includes,
at a minimum, the qualified electrification
projects described in subsection (d)(11)(A).
``(ii) Requirements.--The list published
under clause (i) shall include specifications
for each qualified electrification project
included on the list, including--
``(I) appropriate certifications
under the Energy Star program; and
``(II) other applicable
requirements, such as requirements
relating to grid-interactive
capability.
``(iii) Updates.--
``(I) In general.--Not less
frequently than once every 3 years and
subject to subclause (II), the
Secretary shall publish an updated list
of qualified electrification projects
for which a high-efficiency electric
home rebate may be provided under this
subsection.
``(II) Limitation.--An updated list
under subclause (I) shall not allow for
any reductions in efficiency levels for
qualified electrification projects
included on the updated list that are
below an efficiency level provided in a
previously published version of the
list.
``(c) Special Provisions for Low- and Moderate-income Households
and Multifamily Buildings.--
``(1) Maximum amounts.--With respect to a qualified
electrification project carried out at a location described in
paragraph (2)--
``(A) a high-efficiency electric home rebate shall
be equal to--
``(i) in the case of a qualified
electrification project described in subsection
(b)(2)(A)(i), not more than $1,750;
``(ii) in the case of a qualified
electrification project described in subsection
(b)(2)(A)(ii)--
``(I)(aa) not more than $6,000 if
the applicable heat pump HVAC system
has a heating capacity of not less than
27,500 Btu per hour; or
``(bb) not more than $7,000 if the
applicable heat pump HVAC system meets
Energy Star program cold climate
criteria and is installed in a cold
climate, as determined by the
Secretary; and
``(II)(aa) not more than $3,000 if
the applicable heat pump HVAC system
has a heating capacity of less than
27,500 Btu per hour; or
``(bb) not more than $3,500 if the
applicable heat pump HVAC system meets
Energy Star program cold climate
criteria and is installed in a cold
climate, as determined by the
Secretary;
``(iii) in the case of a qualified
electrification project described in subsection
(b)(2)(A)(iii), not more than $840;
``(iv) in the case of a qualified
electrification project described in subsection
(b)(2)(A)(iv), not more than $4,000;
``(v) in the case of a qualified
electrification project described in subsection
(b)(2)(A)(v) that installs insulation and air
sealing, not more than $1,600; and
``(vi) in the case of a qualified
electrification project described in subsection
(b)(2)(A)(vi), not more than an amount
determined by the Secretary for that qualified
electrification project, subject to
subparagraph (B);
``(B) the maximum total amount of high-efficiency
electric home rebates that may be awarded with respect
to each home of a homeowner shall be $14,000; and
``(C) the amount of a high-efficiency electric home
rebate may be used to cover not more than 100 percent
of the costs, including labor costs, of the applicable
qualified electrification project.
``(2) Location described.--The maximum amounts described in
paragraph (1) shall apply to--
``(A) a home--
``(i) with respect to which the household
of the homeowner is certified as low- or
moderate-income;
``(ii) that is located in a Tribal
community; or
``(iii) in the case of a home that is
rented, with respect to which the household of
the renter is certified as low- or moderate-
income; or
``(B) a multifamily building--
``(i) that--
``(I) is certified as low- or
moderate-income; or
``(II) is located in a Tribal
community; and
``(ii) with respect to which more than more
than \1/2\ of the dwelling units in the
multifamily building--
``(I) are occupied by households
the annual household incomes of which
do not exceed 80 percent of the median
annual household income for the area in
which the multifamily building is
located; and
``(II) have average monthly rental
prices that are equal to, or less than,
an amount that is equal to 30 percent
of the average monthly household income
for the area in which the multifamily
building is located.
``(3) Requirement.--The Secretary may provide a rebate in
an amount described in paragraph (1) to the owner of a
multifamily building or home (in the case of a home that is
rented) that meets the requirements of this section if the
owner agrees in writing to provide commensurate benefits of
future savings to renters in the multifamily building or home.
``(d) Definitions.--In this section:
``(1) Certified contractor.--The term `certified
contractor' means a contractor with a certification reflecting
training, education, or other technical expertise relating to
qualified electrification projects for residential buildings,
as identified by the Secretary.
``(2) Certified contractor company.--The term `certified
contractor company' means a company--
``(A) the business of which is to provide
services--
``(i) to residential building owners; and
``(ii) for which a rebate may be provided
pursuant to this section;
``(B) that holds the licenses and insurance
required by the State in which the company provides
services; and
``(C) that employs 1 or more certified contractors
that perform the services for which a rebate may be
provided under this section.
``(3) Electric load or service center upgrade.--The term
`electric load or service center upgrade' means an improvement
to a circuit breaker panel that enables the installation and
use of--
``(A) a QEP described in any of subclauses (II)
through (IV) of paragraph (9)(A)(i); or
``(B) a QEP described in any of subclauses (I)
through (III) of paragraph (9)(A)(ii).
``(4) Energy star program.--The term `Energy Star program'
means the program established by section 324A of the Energy
Policy and Conservation Act (42 U.S.C. 6294a).
``(5) Heat pump.--The term `heat pump' means a heat pump
used for water heating, space heating, or space cooling that--
``(A) relies solely on electricity for its source
of power; and
``(B) is air-sourced, geothermal- or ground-
sourced, or water-sourced.
``(6) High-efficiency electric home rebate.--The term
`high-efficiency electric home rebate' means a rebate provided
in accordance with subsection (b).
``(7) Home.--The term `home' means each of--
``(A) a building with not more than 4 dwelling
units, individual condominium units, or manufactured
housing units, that--
``(i) is located in a State; and
``(ii)(I) is the primary residence of--
``(aa) the owner of that building,
condominium unit, or manufactured
housing unit, as applicable; or
``(bb) a renter; or
``(II) is a new-construction single-family
residential home; and
``(B) a unit of a multifamily building that--
``(i) is owned by an individual who is not
the owner of the multifamily building;
``(ii) is located in a State, the District
of Columbia, or a territory of the United
States; and
``(iii) is the primary residence of--
``(I) the owner of that unit; or
``(II) a renter.
``(8) HVAC.--The term `HVAC' means heating, ventilation,
and air conditioning.
``(9) Low- or moderate-income.--The term `low - or moderate
-income', with respect to a household, means a household--
``(A) with an annual income that is less than 80
percent of the annual median income of the area in
which the household is located; or
``(B) that is low-income (as defined in section 412
of the Energy Conservation and Production Act (42
U.S.C. 6862)).
``(10) Multifamily building.--The term `multifamily
building' means any building--
``(A) with 5 or more dwelling units that--
``(i) are built on top of one another or
side-by-side; and
``(ii) may share common facilities; and
``(B) that is not a home.
``(11) Qualified electrification project; qep.--
``(A) In general.--The terms `qualified
electrification project' and `QEP' mean a project that,
as applicable--
``(i) installs, or enables the installation
and use of, in a home or multifamily building--
``(I) an electric load or service
center upgrade;
``(II) an electric heat pump;
``(III) an induction or
noninduction electric stove, cooktop,
range, or oven;
``(IV) an electric heat pump
clothes dryer; or
``(V) insulation, air sealing, and
ventilation, in accordance with
requirements established by the
Secretary; or
``(ii) installs, or enables the
installation and use of, in a home or
multifamily building described in subparagraph
(B)--
``(I) a solar photovoltaic system,
including any electrical equipment,
wiring, or other components necessary
for the installation and use of the
solar photovoltaic system, including a
battery storage system;
``(II) electric vehicle charging
infrastructure or electric vehicle
support equipment necessary to recharge
an electric vehicle on-site; or
``(III) electrical rewiring, power
sharing plugs, or other installation
tasks directly related to and necessary
for the safe and effective functioning
of a QEP in a home or multifamily
building.
``(B) Home or multifamily building described.--A
home or multifamily building referred to in
subparagraph (A)(ii) is a home or multifamily building
that is certified, or the household of the homeowner of
which is certified, as applicable, as low- or moderate-
income.
``(C) Exclusions.--The terms `qualified
electrification project' and `QEP' do not include any
project with respect to which the appliance, system,
equipment, infrastructure, component, or other item
described in clause (i) or (ii) of subparagraph (A) is
not certified under the Energy Star program if, as of
the date on which the project is carried out, the item
is of a category for which a certification is provided
under that program.
``(12) Qualified provider.--The term `qualified provider'
means an electric utility, Tribal-owned entity or Tribally
Designated Housing Entity (TDHE), or commercial, nonprofit, or
government entity, including a retailer and a certified
contractor company, that provides services for which a rebate
may be provided pursuant to this section for 1 or more
portfolios that consist of 1 or more qualified electrification
projects.
``(13) Solar photovoltaic system.--The term `solar
photovoltaic system' means a system--
``(A) placed on-site at a home or multifamily
building, or as part of the community of the home or
multifamily building; and
``(B) that generates electricity from the sun
specifically for the home, multifamily building, or
community.
``(14) Tribal community.--The term `Tribal community' means
a Tribal tract or Tribal block group.
``(15) Underserved community.--The term `underserved
community' means a community located in a census tract that is
identified by the Secretary as--
``(A) a low- or moderate-income community; or
``(B) a community of racial or ethnic minority
concentration.''.
(b) Conforming Amendments.--
(1) The table of contents for the Energy Policy Act of 2005
(Public Law 109-58; 119 Stat. 594) is amended by striking the
item relating to section 124 and inserting the following:
``Sec. 124. High-Efficiency Electric Home Rebate Program.''.
(2) Section 3201(c)(2)(A)(i) of the Energy Act of 2020 (42
U.S.C. 17232(c)(2)(A)(i)) is amended by striking ``(a)'' each
place it appears.
PART 3--BUILDING EFFICIENCY AND RESILIENCE
SEC. 30431. WEATHERIZATION ASSISTANCE PROGRAM.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary of Energy for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $3,500,000,000,
to remain available until September 30, 2031, to carry out activities
under part A of title IV of the Energy Conservation and Production Act
(42 U.S.C. 6861 through 6872).
(b) Financial Assistance for WAP Enhancement and Innovation.--
Notwithstanding subsections (j) and (k) of section 414D of the Energy
Conservation and Production Act (42 U.S.C. 6864d(j) and (k)), the
Secretary shall use $850,000,000 of the amount made available under
subsection (a) of this section to award financial assistance under such
section 414D, including financial assistance to implement measures to
make dwelling units that are occupied by low-income persons
weatherization-ready.
(c) Average Cost Per Dwelling Unit.--Section 415(c) of the Energy
Conservation and Production Act (42 U.S.C. 6865(c)) is amended--
(1) in paragraph (1), by striking ``$6,500'' and inserting
``$12,000''; and
(2) in paragraph (4), by striking ``$3,000'' and inserting
``$6,000''.
SEC. 30432. CRITICAL FACILITY MODERNIZATION.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Energy for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$3,200,000,000, to remain available until September 30, 2031, to carry
out a program under which the Secretary of Energy provides funds to
States to be used in accordance with subsection (c).
(b) Allocation of Funds.--The Secretary of Energy shall allocate
funds made available under subsection (a) to States in accordance with
the formula used to allocate Federal financial assistance granted
pursuant to section 363 of the Energy Policy and Conservation Act (42
U.S.C. 6323) (as of January 1, 2021), except that no matching
requirement shall apply.
(c) Use of Funds.--
(1) In general.--A State that receives funds under this
section shall use such funds to--
(A) provide technical assistance for carrying out a
covered project;
(B) facilitate carrying out a covered project,
including by providing a grant, loan, or other
financial assistance to another entity;
(C) carry out a covered project; or
(D) pay for any administrative expenses related to
any activity described in subparagraphs (A) through
(C).
(2) Limit on technical assistance.--A State that receives
funds under this section may not use more than 10 percent of
such funds to provide technical assistance under paragraph
(1)(A) related to the development, facilitation, management,
oversight, or measurement of results of covered projects.
(d) Definitions.--In this section:
(1) Covered project.--The term ``covered project'' means a
building project at an eligible facility that--
(A) increases--
(i) the resiliency of an eligible facility,
which includes--
(I) making improvements to public
health and safety;
(II) mitigating power outages;
(III) hardening against natural
disasters;
(IV) improving indoor air quality;
and
(V) making any modifications
necessitated by the COVID-19 pandemic;
(ii) energy efficiency;
(iii) the use of renewable energy; or
(iv) grid integration; and
(B) may include a combined heat and power,
microgrid, or energy storage component.
(2) Eligible facility.--The term ``eligible facility''
means any public or nonprofit building, as determined by the
Secretary, including--
(A) a public school, including an elementary school
and a secondary school;
(B) a facility used to operate an early childhood
education program;
(C) the facilities of a local educational agency;
(D) a medical facility;
(E) a local or State government building;
(F) a community facility;
(G) a public safety facility;
(H) a day care center;
(I) an institution of higher education;
(J) a public library; and
(K) a wastewater treatment facility.
(3) Public or nonprofit building.--The term ``public or
nonprofit building'' means a public or nonprofit building
described in section 362(d)(5)(B) of the Energy Policy and
Conservation Act (42 U.S.C. 6322(d)(5)(B)).
(4) State.--The term ``State'' has the meaning given the
term in section 3 of the Energy Policy and Conservation Act (42
U.S.C. 6202).
SEC. 30433. ASSISTANCE FOR LATEST AND ZERO BUILDING ENERGY CODE
ADOPTION.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Energy for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$300,000,000, to remain available until September 30, 2031, to carry
out activities under part D of title III of the Energy Policy and
Conservation Act (42 U.S.C. 6321 through 6326), of which--
(1) $100,000,000, shall be for grants to assist States, and
units of local government that have authority to adopt building
codes, to--
(A) adopt--
(i) a building energy code (or codes) for
residential buildings that meets or exceeds the
2021 International Energy Conservation Code, or
achieves equivalent or greater energy savings;
(ii) a building energy code (or codes) for
commercial buildings that meets or exceeds the
ANSI/ASHRAE/IES Standard 90.1-2019, or achieves
equivalent or greater energy savings; or
(iii) any combination of building energy
codes described in clause (i) or (ii); and
(B) implement a plan for the jurisdiction to
achieve full compliance with any building energy code
adopted under subparagraph (A) in new and renovated
residential or commercial buildings, as applicable,
which plan shall include active training and
enforcement programs and measurement of the rate of
compliance each year; and
(2) $200,000,000, shall be for grants to assist States, and
units of local government that have authority to adopt building
codes, to--
(A) adopt a building energy code (or codes) for
residential and commercial buildings that meets or
exceeds the zero energy provisions in the 2021
International Energy Conservation Code or an equivalent
stretch code; and
(B) implement a plan for the jurisdiction to
achieve full compliance with any building energy code
adopted under subparagraph (A) in new and renovated
residential and commercial buildings, which plan shall
include active training and enforcement programs and
measurement of the rate of compliance each year.
(b) State Match.--The State cost share requirement under the item
relating to ``Department of Energy--Energy Conservation'' in title II
of the Department of the Interior and Related Agencies Appropriations
Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall not apply to
assistance provided under this section.
(c) Administrative Costs.--Of the amounts made available under this
section, the Secretary shall reserve 5 percent for administrative costs
necessary to carry out this section.
PART 4--ZERO EMISSIONS VEHICLE INFRASTRUCTURE BUILDOUT
SEC. 30441. DEFINITIONS.
In this part:
(1) Electric vehicle.--The term ``electric vehicle'' means
a vehicle that derives all or part of its power from
electricity.
(2) Electric vehicle supply equipment.--The term ``electric
vehicle supply equipment'' means any conductors, including
ungrounded, grounded, and equipment grounding conductors,
electric vehicle connectors, attachment plugs, and all other
fittings, devices, power outlets, electrical equipment, off-
grid charging installations, or apparatuses installed
specifically for the purpose of delivering energy to an
electric vehicle or to a battery intended to be used in an
electric vehicle.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 30442. ELECTRIC VEHICLE SUPPLY EQUIPMENT REBATE PROGRAM.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $2,000,000,000, to
remain available until expended (except that no funds shall be
disbursed after September 30, 2031), to establish and carry out a
rebate program to provide rebates to eligible entities for covered
expenses associated with electric vehicle supply equipment located at
workplaces, multi-unit housing structures, and publicly accessible
locations.
(b) Rebate Program Requirements.--
(1) Eligible equipment and locations.--
(A) In general.--Not later than 180 days after the
date of the enactment of this Act, the Secretary shall
publish and maintain on the Department of Energy
internet website a list of electric vehicle supply
equipment that is eligible for the rebate program. Such
list may include technical specifications and
requirements for such electric vehicle supply equipment
to enhance safety, cybersecurity, performance,
accessibility, and alignment with relevant codes and
standards, as determined appropriate by the Secretary.
(B) Location requirement.--An eligible entity may
receive a rebate under the rebate program only if the
electric vehicle supply equipment included on the list
published under subparagraph (A) is installed--
(i) in the United States;
(ii) on property--
(I) owned by the eligible entity;
or
(II) on which the eligible entity
has authority to install electric
vehicle supply equipment; and
(iii) at a location that is--
(I) a multi-unit housing structure;
(II) a workplace, and available to
employees of such workplace or
employees of a nearby workplace; or
(III) publicly accessible,
including a publicly accessible
commercial location.
(C) Public accessibility.--For electric vehicle
supply equipment not located at a multi-unit housing
structure or a workplace, an eligible entity may
receive a rebate under the rebate program only if the
installed electric vehicle supply equipment is--
(i) publicly accessible for a minimum of 12
hours per day at least 5 days per week; and
(ii) networked or otherwise capable of
being monitored remotely.
(2) Application.--In order to receive a rebate under the
rebate program, an eligible entity shall submit to the
Secretary an application. Such application shall include--
(A) the estimated cost of covered expenses to be
expended on the electric vehicle supply equipment that
is eligible under paragraph (1);
(B) the estimated installation cost of the electric
vehicle supply equipment that is eligible under
paragraph (1);
(C) the global positioning system location,
including the integer number of degrees, minutes, and
seconds, of where such electric vehicle supply
equipment is to be installed, and identification of
whether such location is--
(i) a multi-unit housing structure;
(ii) a workplace; or
(iii) publicly accessible, including a
publicly accessible commercial location, in
accordance with paragraph (1)(C);
(D) the technical specifications of such electric
vehicle supply equipment, including the maximum power
voltage and amperage of such equipment;
(E) an assessment of the electrical capacity at the
location where such electric vehicle supply equipment
is to be installed, and, as necessary, proof of
communication with the electric utility that will serve
the electric vehicle supply equipment to be installed;
and
(F) any other information determined by the
Secretary to be necessary for a complete application.
(3) Funding set-asides.--Each fiscal year, the Secretary
may set aside an amount of funding under the rebate program to
ensure, to the extent possible given the applications meeting
the requirements of the rebate program submitted, rebates are
distributed--
(A) to individuals and small businesses, as
determined by the Secretary; and
(B) for electric vehicle supply equipment--
(i) located in rural communities, as
determined by the Secretary; and
(ii) located in low-income and
disadvantaged communities, as determined by the
Secretary.
(4) Rebate amount.--
(A) In general.--Except as provided in subparagraph
(B), the amount of a rebate made under the rebate
program for new electric vehicle supply equipment at a
location shall be the lesser of--
(i) 75 percent of the applicable covered
expenses;
(ii) $1,000 for covered expenses associated
with the purchase and installation of non-
networked level 2 charging equipment;
(iii) $4,000 for covered expenses
associated with the purchase and installation
of networked level 2 charging equipment; or
(iv) $100,000 for covered expenses
associated with the purchase and installation
of networked direct current fast charging
equipment.
(B) Rebate amount for replacement equipment.--The
amount of a rebate made under the rebate program for
replacement of pre-existing electric vehicle supply
equipment of similar specifications at a location shall
be the lesser of--
(i) 75 percent of the applicable covered
expenses;
(ii) $500 for covered expenses associated
with the purchase and installation of non-
networked level 2 charging equipment;
(iii) $2,000 for covered expenses
associated with the purchase and installation
of networked level 2 charging equipment; or
(iv) $35,000 for covered expenses
associated with the purchase and installation
of networked direct current fast charging
equipment.
(5) Disbursement of rebate.--
(A) Materials required for disbursement of
rebate.--Before a rebate may be disbursed to an
eligible entity, such eligible entity shall submit to
the Secretary--
(i) a record of payment for covered
expenses expended on the installation of the
electric vehicle supply equipment that is
eligible under paragraph (1);
(ii) a record of payment for the electric
vehicle supply equipment that is eligible under
paragraph (1);
(iii) the global positioning system
location, including the integer number of
degrees, minutes, and seconds, of where such
electric vehicle supply equipment was installed
and identification of whether such location
is--
(I) a multi-unit housing structure;
(II) a workplace; or
(III) publicly accessible,
including a publicly accessible
commercial location, in accordance with
paragraph (1)(C);
(iv) the technical specifications of the
electric vehicle supply equipment that is
eligible under paragraph (1), including the
maximum power voltage and amperage of such
equipment; and
(v) any other information determined by the
Secretary to be necessary.
(B) Agreement to maintain.--To be eligible for a
rebate under the rebate program, an eligible entity
shall enter into an agreement with the Secretary to
maintain the electric vehicle supply equipment that is
eligible under paragraph (1) in a satisfactory manner,
and at the location stated in the application or in the
materials submitted under subparagraph (A), as
applicable, for not fewer than 5 years after the date
on which the eligible entity receives the rebate under
the rebate program.
(C) Exception.--The Secretary may decline to
disburse a rebate under the rebate program if materials
submitted under subparagraph (A) vary significantly, as
determined by the Secretary, from the global
positioning system location and technical
specifications for the electric vehicle supply
equipment that is eligible under paragraph (1) provided
in an application under paragraph (2).
(6) Multi-port chargers.--An eligible entity shall be
awarded a rebate under the rebate program for covered expenses
relating to the purchase and installation of a multi-port
charger based on the number of publicly accessible charging
ports, with each subsequent port after the first port being
eligible for 75 percent of the full rebate amount.
(7) Hydrogen fuel cell refueling equipment.--Hydrogen fuel
cell refueling equipment shall be eligible for a rebate under
the rebate program as though it were networked direct current
fast charging equipment, and all applicable requirements
related to such equipment shall apply.
(8) Networked direct current fast charging.--Of amounts
appropriated to carry out the rebate program, not more than 40
percent may be used for rebates of networked direct current
fast charging equipment or hydrogen fuel cell refueling
equipment.
(c) Definitions.--In this section:
(1) Covered expenses.--The term ``covered expenses'' means
an expense that is associated with the purchase and
installation of electric vehicle supply equipment, including--
(A) the cost of electric vehicle supply equipment;
(B) labor costs associated with the installation of
such electric vehicle supply equipment;
(C) material costs associated with the installation
of such electric vehicle supply equipment, including
expenses borne by rebate recipients for electrical
equipment and necessary upgrades or modifications to
the electrical grid and associated infrastructure
required for the installation of such electric vehicle
supply equipment;
(D) permit costs associated with the installation
of such electric vehicle supply equipment; and
(E) the cost of an on-site energy storage system
that supports electrical load balancing or otherwise
improves the performance of such electric vehicle
supply equipment.
(2) Eligible entity.--The term ``eligible entity'' means an
individual, a State, local, Tribal, or Territorial government,
a private entity, a not-for-profit entity, a nonprofit entity,
or a metropolitan planning organization.
(3) Level 2 charging equipment.--The term ``level 2
charging equipment'' means electric vehicle supply equipment
that provides an alternating current power source at a minimum
of 208 volts.
(4) Multi-port charger.--The term ``multi-port charger''
means electric vehicle charging unit capable of charging more
than one electric vehicle simultaneously.
(5) Networked direct current fast charging equipment.--The
term ``networked direct current fast charging equipment'' means
electric vehicle supply equipment that is capable of providing
a direct current power source at a minimum of 50 kilowatts and
is enabled to connect to a network to facilitate data
collection and access.
(6) Rebate program.--The term ``rebate program'' means the
rebate program established under subsection (a).
SEC. 30443. ELECTRIC VEHICLE CHARGING EQUITY PROGRAM.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $1,000,000,000, to
remain available until September 30, 2031 (except that no funds shall
be disbursed after September 30, 2031), to carry out this section.
(b) Program.--The Secretary shall use amounts made available under
subsection (a) to establish and carry out a program, to be known as the
EV Charging Equity Program, to--
(1) provide technical assistance to eligible entities
described in subsection (f);
(2) award grants on a competitive basis to eligible
entities described in subsection (f) for projects that increase
deployment and accessibility of electric vehicle supply
equipment in underserved or disadvantaged communities,
including projects that are--
(A) publicly accessible;
(B) located within or are easily accessible to
residents of--
(i) public or affordable housing;
(ii) multi-unit dwellings; or
(iii) single-family homes; and
(C) located within or easily accessible to places
of work, provided that such electric vehicle supply
equipment is accessible no fewer than 5 days per week;
and
(3) provide education and outreach regarding the EV
Charging Equity Program and the benefits and opportunities for
electric vehicle charging to individuals and relevant entities
that live within or serve underserved or disadvantaged
communities, including by providing--
(A) an electric vehicle charging resource guide
that is maintained electronically on a website, is
public, and is directed towards individuals and
relevant entities that live within or serve underserved
or disadvantaged communities;
(B) targeted outreach towards, and coordinated
public outreach with, relevant local, State, and Tribal
entities, nonprofit organizations, and institutions of
higher education, that are located within or serve
underserved or disadvantaged communities; and
(C) any other form of education or outreach as the
Secretary determines appropriate.
(c) Cost Share.--
(1) In general.--Except as provided in paragraph (2), the
amount of a grant awarded under this section for a project
shall not exceed 80 percent of project costs.
(2) Single-family homes.--The amount of a grant awarded
under this section for a project that involves, as a primary
focus, single-family homes shall not exceed 60 percent of
project costs.
(d) Priority.--In awarding grants and providing technical
assistance under this section, the Secretary shall give priority to
projects that--
(1) provide the greatest benefit to the greatest number of
people within an underserved or disadvantaged community;
(2) incorporate renewable energy resources;
(3) maximize local job creation, particularly among low-
income, women, and minority workers; or
(4) utilize or involve locally owned small and
disadvantaged businesses, including women and minority-owned
businesses.
(e) Limitation.--Not more than 15 percent of the amount awarded for
grants under this section in a fiscal year shall be awarded for
projects that involve, as a primary focus, single-family homes.
(f) Eligible Entities.--
(1) In general.--To be eligible for a grant or technical
assistance under the EV Charging Equity Program, an entity
shall be--
(A) an individual or household that is the owner of
where a project will be carried out;
(B) a State, local, Tribal, or Territorial
government, or an agency or department thereof;
(C) an electric utility, including--
(i) a municipally owned electric utility;
(ii) a publicly owned electric utility;
(iii) an investor-owned utility; and
(iv) a rural electric cooperative;
(D) a nonprofit organization or institution;
(E) a public housing authority;
(F) an institution of higher education, as
determined by the Secretary;
(G) an entity that utilizes or involves locally
owned small and disadvantaged businesses, including
women and minority-owned businesses; or
(H) a partnership between any number of eligible
entities described in subparagraphs (A) through (G).
(2) Updates.--The Secretary may add to or otherwise revise
the list of eligible entities as the Secretary determines
necessary.
(g) Definitions.--In this section:
(1) Publicly accessible.--The term ``publicly accessible''
means, with respect to electric vehicle supply equipment,
electric vehicle supply equipment that is available, at zero or
reasonable cost, to members of the public for the purpose of
charging a privately owned or leased electric vehicle, or
electric vehicle that is available for use by members of the
general public as part of a ride service or vehicle sharing
service or program, including within or around--
(A) public sidewalks and streets;
(B) public parks;
(C) public buildings, including--
(i) libraries;
(ii) schools; and
(iii) government offices;
(D) public parking;
(E) shopping centers; and
(F) commuter transit hubs.
(2) Underserved or disadvantaged community.--The term
``underserved or disadvantaged community'' means a community or
geographic area that is identified as--
(A) a low-income community;
(B) a Tribal community;
(C) having a disproportionately low number of
electric vehicle charging stations per capita, compared
to similar areas; or
(D) any other community that the Secretary
determines is disproportionately vulnerable to, or
bears a disproportionate burden of, any combination of
economic, social, environmental, and climate stressors.
SEC. 30444. STATE ENERGY PLANS.
(a) Appropriation.--Section 365(f) of the Energy Policy and
Conservation Act (42 U.S.C. 6325(f)) is amended to read as follows:
``(f) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $500,000,000, to
remain available until September 30, 2031 (except that no funds shall
be disbursed after September 30, 2031), to carry out section 367.''.
(b) State Energy Transportation Plans.--
(1) In general.--The Energy Policy and Conservation Act is
amended by adding after section 366 (42 U.S.C. 6326) the
following:
``SEC. 367. STATE ENERGY TRANSPORTATION PLANS.
``(a) In General.--The Secretary may provide financial assistance
and technical assistance to a State to develop a State energy
transportation plan, for inclusion in a State energy conservation plan
under section 362(d), to promote the electrification of the
transportation system, reduced consumption of fossil fuels, and reduced
energy demand.
``(b) Development.--A State developing a State energy
transportation plan under this section shall carry out this activity
through the State energy office that is responsible for developing the
State energy conservation plan under section 362.
``(c) Contents.--A State developing a State energy transportation
plan under this section shall include in such plan a plan to--
``(1) deploy a network of electric vehicle supply equipment
to ensure access to electricity for electric vehicles,
including commercial vehicles, to an extent that such electric
vehicles can travel throughout the State without running out of
a charge; and
``(2) promote modernization of the electric grid, including
through the use of renewable energy sources to power the
electric grid, to accommodate demand for power to operate
electric vehicle supply equipment and to utilize energy storage
capacity provided by electric vehicles, including commercial
vehicles.
``(d) Technical Assistance.--Upon request of the Governor of a
State, the Secretary shall provide information and technical assistance
in the development, implementation, or revision of a State energy
transportation plan.
``(e) Electric Vehicle Supply Equipment Defined.--For purposes of
this section, the term `electric vehicle supply equipment' means any
conductors, including ungrounded, grounded, and equipment grounding
conductors, electric vehicle connectors, attachment plugs, and all
other fittings, devices, power outlets, electrical equipment, off-grid
charging installations, or apparatuses installed specifically for the
purpose of delivering energy to an electric vehicle or to a battery
intended to be used in an electric vehicle.''.
(2) Conforming amendment.--The table of contents for part D
of title III of the Energy Policy and Conservation Act is
amended by adding at the end the following:
``Sec. 367. State energy transportation plans.''.
(c) State Energy Conservation Plans.--Section 362(d) of the Energy
Policy and Conservation Act (42 U.S.C. 6322(d)) is amended--
(1) in paragraph (16), by striking ``; and'' and inserting
a semicolon;
(2) by redesignating paragraph (17) as paragraph (18); and
(3) by inserting after paragraph (16) the following:
``(17) a State energy transportation plan developed in
accordance with section 367; and''.
SEC. 30445. TRANSPORTATION ELECTRIFICATION.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, to remain available
until September 30, 2031 (except that no funds shall be disbursed after
September 30, 2031)--
(1) $4,000,000,000 for grants under section 131(b) of the
Energy Independence and Security Act of 2007 (42 U.S.C.
17011(b)); and
(2) $6,000,000,000 for grants under subsection (b) of this
section.
(b) Use of Funds.--The Secretary may use amounts made available
under subsection (a)(2) of this section to--
(1) provide grants under subsection (c) of section 131 of
the Energy Independence and Security Act of 2007 (42 U.S.C.
17011) for the conduct of qualified electric transportation
projects (as defined in such section 131); and
(2) provide grants in accordance with section 131(c) of
such Act for the conduct of any of the following projects:
(A) Installation of electric vehicle supply
equipment for recharging plug-in electric drive
vehicles, including such equipment that is accessible
in rural and urban areas and in underserved or
disadvantaged communities and such equipment for
medium- and heavy-duty vehicles, including at depots
and in-route locations.
(B) Multi-use charging hubs used for multiple forms
of transportation.
(C) Medium- and heavy-duty vehicle smart charging
management and refueling.
(D) Battery recycling and secondary use, including
for medium- and heavy-duty vehicles.
(E) Shipside or shoreside electrification for
ground support equipment at ports.
(F) Electric airport ground support vehicles.
(G) Sharing of best practices, and technical
assistance provided by the Department of Energy to
public utilities commissions and utilities, for medium-
and heavy-duty vehicle electrification.
(c) Priority.--In making grants under section 131(b) of the Energy
Independence and Security Act of 2007 (42 U.S.C. 17011(b)) using
amounts made available under subsection (a)(1) of this section, in
addition to the priority considerations described in paragraph (3) of
such section 131(b), the Secretary shall give priority consideration to
applications that are likely to make a significant contribution to the
advancement of the production of the components and charging equipment
for the vehicles described in paragraph (1) of such section 131(b) in
the United States.
PART 5--DOE LOAN AND GRANT PROGRAMS
SEC. 30451. FUNDING FOR DEPARTMENT OF ENERGY LOAN PROGRAMS OFFICE.
(a) Commitment Authority.--In addition to commitment authority
otherwise available and previously provided, the Secretary of Energy
may make commitments to guarantee loans for eligible projects under
section 1703 of the Energy Policy Act of 2005 up to a total principal
amount of $30,000,000,000, to remain available until September 30,
2031, except that no commitments shall be made using the authority
provided by this section after September 30, 2031: Provided, That for
amounts collected pursuant to section 1702(b)(2) of the Energy Policy
Act of 2005, the source of such payment received from borrowers may not
be a loan or other debt obligation that is guaranteed by the Federal
Government: Provided further, That none of the loan guarantee authority
made available by this section shall be available for any project
unless the Director of the Office of Management and Budget has
certified in advance in writing that the loan guarantee and the project
comply with the provisions under this section: Provided further, That
none of such loan guarantee authority made available by this section
shall be available for commitments to guarantee loans for any projects
where funds, personnel, or property (tangible or intangible) of any
Federal agency, instrumentality, personnel, or affiliated entity are
expected to be used (directly or indirectly) through acquisitions,
contracts, demonstrations, exchanges, grants, incentives, leases,
procurements, sales, other transaction authority, or other
arrangements, to support the project or to obtain goods or services
from the project: Provided further, That the previous proviso shall not
be interpreted as precluding the use of the loan guarantee authority
provided by this section for commitments to guarantee loans for--
(1) projects as a result of such projects benefitting from
otherwise allowable Federal tax benefits;
(2) projects as a result of such projects benefitting from
being located on Federal land pursuant to a lease or right-of-
way agreement for which all consideration for all uses is--
(A) paid exclusively in cash;
(B) deposited in the Treasury as offsetting
receipts; and
(C) equal to the fair market value as determined by
the head of the relevant Federal agency;
(3) projects as a result of such projects benefitting from
Federal insurance programs; or
(4) electric generation projects using transmission
facilities owned or operated by a Federal Power Marketing
Administration or the Tennessee Valley Authority that have been
authorized, approved, and financed independent of the project
receiving the guarantee.
(b) Appropriation.--In addition to amounts otherwise available and
previously provided, there is appropriated to the Secretary of Energy
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $700,000,000, to remain available until expended (except
that no funds shall be disbursed after September 30, 2031), for the
costs of guarantees made under section 1703 of the Energy Policy Act of
2005, using the loan guarantee authority provided under subsection (a)
of this section, for renewable or energy efficient systems and
manufacturing, and distributed energy generation, transmission, and
distribution.
(c) Administrative Expenses.--Of the amount made available under
subsection (b), the Secretary of Energy shall reserve 3 percent for
administrative expenses to carry out title XVII of the Energy Policy
Act of 2005 and for carrying out section 1702(h)(3) of such Act.
SEC. 30452. ADVANCED TECHNOLOGY VEHICLE MANUFACTURING.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Energy for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$3,000,000,000, to remain available until expended (except that no
funds shall be disbursed after September 30, 2031), for the costs of--
(1) providing direct loans under subsection (d) of section
136 of the Energy Independence and Security Act of 2007 (42
U.S.C. 17013); and
(2) providing direct loans in accordance with such section
136, for reequipping, expanding, or establishing a
manufacturing facility in the United States to produce, or for
engineering integration performed in the United States of, any
of the following that emit, under any possible operational mode
or condition, zero exhaust emissions of any greenhouse gas:
(A) A medium duty vehicle or a heavy duty vehicle.
(B) A train or locomotive.
(C) A maritime vessel.
(D) An aircraft.
(E) Hyperloop technology.
(b) Administrative Costs.--The Secretary shall reserve $12,000,000
of amounts made available under subsection (a) for administrative costs
of providing loans as described in subsection (a).
(c) Elimination of Loan Program Cap.--Section 136(d)(1) of the
Energy Independence and Security Act of 2007 (42 U.S.C. 17013(d)(1)) is
amended by striking ``a total of not more than $25,000,000,000 in''.
SEC. 30453. DOMESTIC MANUFACTURING CONVERSION GRANTS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Energy for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$1,000,000,000, to remain available until expended (except that no
funds shall be disbursed after September 30, 2031), for grants relating
to domestic production of zero-emission vehicles under section 712 of
the Energy Policy Act of 2005 (42 U.S.C. 16062).
(b) Administrative Costs.--The Secretary shall reserve 2 percent of
amounts made available under subsection (a) for administrative costs of
making grants described in such subsection (a) pursuant to section 712
of the Energy Policy Act of 2005 (42 U.S.C. 16062).
SEC. 30454. ENERGY COMMUNITY REINVESTMENT FINANCING.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $2,000,000,000, to
remain available until expended (except that no funds shall be
disbursed after September 30, 2031), for the cost of providing
financial support under section 1706 of the Energy Policy Act of 2005.
(b) Amendment.--Title XVII of the Energy Policy Act of 2005 (42
U.S.C. 16511 et seq.) is amended by adding at the end the following:
``SEC. 1706. ENERGY COMMUNITY REINVESTMENT FINANCING PROGRAM.
``(a) Establishment.--Notwithstanding section 1702(f) and section
1703, and not later than 180 days after the date of enactment of this
section, the Secretary shall establish a program to provide financial
support, in such form and on such terms and conditions as the Secretary
determines appropriate, to eligible entities for the purpose of
enabling low-carbon reinvestments in energy communities, which such
reinvestments may include--
``(1) supporting workers who are or have been engaged in
providing, or have been affected by the provision of, energy-
intensive goods or services by helping such workers find
employment opportunities, including by providing training and
education;
``(2) redeveloping a community that is or was engaged in
providing, or has been affected by the provision of, energy-
intensive goods or services;
``(3) accelerating remediation of environmental damage
caused by the provision of energy-intensive goods or services;
and
``(4) mitigating the effects on customers of any
significant reduction in the carbon intensity of goods or
services provided by the eligible entity, including by the
cost-effective abatement of greenhouse gas emissions from
continuing operations and the repowering, retooling,
repurposing, redeveloping, or remediating of any long-lived
assets, lands, or infrastructure currently or previously used
by the eligible entity primarily to support the provision of
energy-intensive goods or services.
``(b) Application Requirement.--To apply for financial support
provided under this section, an eligible entity shall submit to the
Secretary an application at such time, in such manner, and containing
such information as the Secretary may require, which such application
shall include--
``(1) a detailed plan describing the activities to be
carried out in accordance with subsection (a), including
activities for the measurement, monitoring, and verification of
emissions of greenhouse gases; and
``(2) if the eligible entity is a utility subject to
regulation by a State commission or other State regulatory
authority, assurances, as determined appropriate by the
Secretary, that such eligible entity shall pass through any
financial benefit from the provision of any financial support
under this section to its customers or energy communities.
``(c) Other Requirements.--
``(1) Fees.--Notwithstanding section 1702(h)(1), the
Secretary shall charge and collect a fee from each eligible
entity that received financial support provided under this
section in an amount the Secretary determines sufficient to
cover applicable administrative expenses (including any costs
associated with third party consultants engaged by the
Secretary).
``(2) Use of appropriated funds.--Any cost for any
financial support provided under this section shall be paid by
the Secretary using appropriated funds.
``(3) Application of other law.--Section 20320(a) of
division B of Public Law 109-289 (42 U.S.C. 16515(a)) shall not
apply to this section.
``(d) Definitions.--In this section:
``(1) Cost; direct loan.--The terms `cost' and `direct
loan' have the meanings given such terms in section 502 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
``(2) Eligible entity.--The term `eligible entity' means
any entity that is directly affiliated with the provision of
energy-intensive goods or services.
``(3) Energy community.--The term `energy community' means
a community whose members are or were engaged in providing, or
have been affected by the provision of, energy-intensive goods
and services.
``(4) Financial support.--The term `financial support'
means any credit product or support the Secretary determines
appropriate to implement this section, including--
``(A) a direct loan;
``(B) a line of credit; and
``(C) a guarantee, including of a letter of credit
for the purposes of subsection (a)(3).
``(5) Guarantee.--The term `guarantee' has the meaning
given such term in section 1701.''.
PART 6--ELECTRIC TRANSMISSION
SEC. 30461. TRANSMISSION LINE AND INTERTIE GRANTS AND LOANS.
(a) Appropriation.--
(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Secretary of Energy for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $8,000,000,000, to remain available
until September 30, 2031 (except that no funds shall be
disbursed after September 30, 2031), for purposes of providing
grants and direct loans under subsection (b), and for
administrative expenses associated with carrying out this
section: Provided, That none of such loan authority made
available by this section shall be available for loans for any
projects where funds, personnel, or property (tangible or
intangible) of any Federal agency, instrumentality, personnel,
or affiliated entity are expected to be used (directly or
indirectly) through acquisitions, contracts, demonstrations,
exchanges, grants, incentives, leases, procurements, sales,
other transaction authority, or other arrangements to support
the project or to obtain goods or services from the project:
Provided further, That the previous proviso shall not be
interpreted as precluding the use of the loan authority
provided by this section for commitments to loans for: (1)
projects benefitting from otherwise allowable Federal tax
benefits; (2) projects benefitting from being located on
Federal land pursuant to a lease or right-of-way agreement for
which all consideration for all uses is: (A) paid exclusively
in cash; (B) deposited in the Treasury as offsetting receipts;
and (C) equal to the fair market value as determined by the
head of the relevant Federal agency; (3) projects benefitting
from Federal insurance programs; or (4) electric generation
projects using transmission facilities owned or operated by a
Federal Power Marketing Administration or the Tennessee Valley
Authority that have been authorized, approved, and financed
independent of the project receiving the guarantee: Provided
further, That none of the loan authority made available by this
section shall be available for any project unless the Director
of the Office of Management and Budget has certified in advance
in writing that the loan and the project comply with the
provisions under this section.
(2) Limit.--Not more than $1,000,000,000 of the amount
appropriated under paragraph (1) may be used to pay for the
costs of providing direct loans under subsection (b).
(b) In General.--Except as provided in subsection (c), the
Secretary of Energy may provide grants and direct loans to eligible
entities to construct new, or make upgrades to existing, eligible
transmission lines or eligible interties, including the related
facilities thereof, if the Secretary of Energy determines that such
construction or upgrade would support--
(1) a more robust and resilient electric grid; and
(2) the integration of electricity from a clean energy
facility into the electric grid.
(c) Other Requirements.--
(1) Interest rates.--The Secretary of Energy shall
determine the rate of interest to charge on direct loans
provided under subsection (b) by taking into consideration
market yields on outstanding marketable obligations of the
United States of comparable maturities as of the date the loan
is disbursed.
(2) Terms and conditions.--In providing direct loans under
subsection (b), the Secretary may require such terms and
conditions the Secretary determines appropriate.
(3) Recovery of costs for grants.--A grant provided under
this section may not be used to construct new, or make upgrades
to existing, eligible transmission lines or eligible interties
if the costs for such construction or upgrade are approved for
recovery through a Transmission Organization (as defined in
section 3 of the Federal Power Act (16 U.S.C. 796)).
(d) Definitions.--In this section:
(1) Clean energy facility.--The term ``clean energy
facility'' means any electric generating unit that does not
emit carbon dioxide.
(2) Direct loan.--The term ``direct loan'' means a
disbursement of funds by the Government to a non-Federal
borrower under a contract that requires the repayment of such
funds with or without interest. The term includes the purchase
of, or participation in, a loan made by another lender and
financing arrangements that defer payment for more than 90
days, including the sale of a government asset on credit terms.
(3) Eligible entity.--The term ``eligible entity'' means a
non-Federal entity.
(4) Eligible intertie.--The term ``eligible intertie''
means--
(A) any interties across the seam between the
Western Interconnection and the Eastern
Interconnection;
(B) the Pacific Northwest-Pacific Southwest
Intertie;
(C) any interties between the Electric Reliability
Council of Texas and the Western Interconnection or the
Eastern Interconnection; or
(D) such other interties that the Secretary
determines contribute to--
(i) a more robust and resilient electric
grid; and
(ii) the integration of electricity from a
clean energy facility into the electric grid.
(5) Eligible transmission line.--The term ``eligible
transmission line'' means an electric power transmission line
that--
(A) in the case of new construction under
subsection (b), has a transmitting capacity of not less
than 1,000 megawatts;
(B) in the case of an upgrade made under subsection
(b), the upgrade to which will increase its
transmitting capacity by not less than 500 megawatts;
and
(C) is capable of transmitting electricity--
(i) across any eligible intertie;
(ii) from an offshore wind generating
facility; or
(iii) along a route, or in a corridor,
determined by the Secretary of Energy to be
necessary to meet interregional or national
electricity transmission needs.
SEC. 30462. GRANTS TO FACILITATE THE SITING OF INTERSTATE ELECTRICITY
TRANSMISSION LINES.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Energy for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$800,000,000, to remain available until September 30, 2031 (provided no
funds shall be disbursed after such date), for making grants in
accordance with this section and for administrative expenses associated
with carrying out this section.
(b) Use of Funds.--
(1) In general.--The Secretary may make a grant under this
section to a siting authority for, with respect to a covered
transmission project, any of the following activities:
(A) Studies and analyses of the impacts of the
covered transmission project, including the
environmental, reliability, wildlife, cultural,
historical, water, land-use, public health, employment,
tax-revenue, market, cost, and rate regulation impacts.
(B) Examination of up to 3 alternate siting
corridors within which the covered transmission project
feasibly could be sited.
(C) Hosting and facilitation of negotiations in
settlement meetings involving the siting authority, the
covered transmission project applicant, and opponents
of the covered transmission project, for the purpose of
identifying and addressing issues that are preventing
approval of the application relating to the siting or
permitting of the covered transmission project.
(D) Participation by the siting authority in
regulatory proceedings or negotiations in another
jurisdiction, or under the auspices of a Transmission
Organization (as defined in section 3 of the Federal
Power Act (16 U.S.C. 796)) that is also considering the
siting or permitting of the covered transmission
project.
(E) Participation by the siting authority in
regulatory proceedings at the Federal Energy Regulatory
Commission or a State regulatory commission for
determining applicable rates and cost allocation for
the covered transmission project.
(F) Other measures and actions that may improve the
chances of, and shorten the time required for, approval
by the siting authority of the application relating to
the siting or permitting of the covered transmission
project, as the Secretary determines appropriate.
(2) Economic development.--The Secretary may make a grant
under this section to a siting authority, or other State,
local, or Tribal governmental entity, for economic development
activities for communities that may be affected by the
construction and operation of a covered transmission project.
(c) Conditions.--
(1) Final decision on application.--In order to receive a
grant for an activity described in subsection (b)(1), the
Secretary shall require a siting authority to agree, in
writing, to reach a final decision on the application relating
to the siting or permitting of the applicable covered
transmission project not later than 2 years after the date on
which such grant is provided, unless the Secretary authorizes
an extension for good cause.
(2) Federal share.--The Federal share of the cost of an
activity described in subparagraph (D) or (E) of subsection
(b)(1) shall not exceed 50 percent.
(3) Economic development.--The Secretary may only disburse
grant funds for economic development activities under
subsection (b)(2)--
(A) to a siting authority upon approval by the
siting authority of the applicable covered transmission
project; and
(B) to any other State, local, or Tribal
governmental entity upon commencement of construction
of the applicable covered transmission project in the
area under the jurisdiction of the entity.
(d) Returning Funds.--If a siting authority that receives a grant
for an activity described in subsection (b)(1) fails to use all grant
funds within 2 years of receipt, the siting authority shall return to
the Secretary any such unused funds.
(e) Definitions.--In this section:
(1) Covered transmission project.--The term ``covered
transmission project'' means a high-voltage interstate
electricity transmission line--
(A) that is proposed to be constructed and to
operate at a minimum of 275 kilovolts of either
alternating-current or direct-current electric energy
by an entity; and
(B) for which such entity has applied, or informed
a siting authority of such entity's intent to apply,
for regulatory approval.
(2) Siting authority.--The term ``siting authority'' means
a State, local, or Tribal governmental entity with authority to
make a final determination regarding the siting, permitting, or
regulatory status of a covered transmission project that is
proposed to be located in an area under the jurisdiction of the
entity.
SEC. 30463. ORGANIZED WHOLESALE ELECTRICITY MARKET TECHNICAL ASSISTANCE
GRANTS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $100,000,000, to
remain available until fiscal year 2031 (except that no funds shall be
disbursed after September 30, 2031), for purposes of providing
technical assistance and grants under subsection (b).
(b) Technical Assistance and Grants.--The Secretary shall use
amounts made available under subsection (a) to--
(1) provide grants to States to pay for--
(A) technical assistance for any of the activities
described in subsection (c); or
(B) the procurement of data or technology systems
related to any of the activities described in
subsection (c); and
(2) provide technical assistance for the activities
described in subsection (c).
(c) Activities.--The activities described in this subsection are--
(1) forming, expanding, or improving an organized wholesale
electricity market, including with respect to--
(A) market governance assistance;
(B) planning and policy assistance; and
(C) regulatory development assistance;
(2) aligning the policies of an organized wholesale
electricity market with relevant State policies; and
(3) evaluating the economic, operational, reliability,
environmental, and other benefits of organized wholesale
electricity markets.
(d) Applications.--
(1) In general.--To apply for technical assistance or a
grant provided under this section, a State shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.
(2) Grants.--An application for a grant submitted under
paragraph (1) shall certify how the State will use the grant in
accordance with subsection (b).
(e) Priority.--In evaluating applications submitted under
subsection (c), the Secretary shall give priority to applications that
are submitted by more than one State.
(f) Definitions.--In this section:
(1) Independent system operator; regional transmission
organization.--The terms ``Independent System Operator'' and
``Regional Transmission Organization'' have the meanings given
such terms in section 3 of the Federal Power Act (16 U.S.C.
796).
(2) Organized wholesale electricity market.--The term
``organized wholesale electricity market'' means an Independent
System Operator or a Regional Transmission Organization.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(4) State.--The term ``State'' means any State of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Virgin Islands, American Samoa, the
Commonwealth of the Northern Mariana Islands, and Guam.
SEC. 30464. INTERREGIONAL AND OFFSHORE WIND ELECTRICITY TRANSMISSION
PLANNING, MODELING, AND ANALYSIS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Energy for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available until September 30, 2031 (except that
no funds shall be disbursed after such date), to carry out this
section.
(b) Use of Funds.--The Secretary of Energy shall use amounts made
available under subsection (a) to--
(1) pay expenses associated with convening relevant
stakeholders, including States, generation and transmission
developers, regional transmission organizations, independent
system operators, environmental organizations, Indian Tribes,
and other stakeholders the Secretary determines appropriate, to
address the development of interregional electricity
transmission and transmission of electricity that is generated
by offshore wind; and
(2) conduct planning, modeling, and analysis regarding
interregional electricity transmission and transmission of
electricity that is generated by offshore wind, taking into
account the local, regional, and national economic,
reliability, resilience, security, public policy, and
environmental benefits of interregional electricity
transmission and transmission of electricity that is generated
by offshore wind, including planning, modeling, and analysis,
as the Secretary determines appropriate, pertaining to--
(A) clean energy integration into the electric
grid, including the identification of renewable energy
zones;
(B) the effects of changes in weather due to
climate change on the reliability and resilience of the
electric grid;
(C) cost allocation methodologies that facilitate
the expansion of the bulk power system;
(D) the benefits of coordination between generator
interconnection processes and transmission planning
processes;
(E) the effect of increased electrification on the
electric grid;
(F) power flow modeling;
(G) the benefits of increased interconnections or
interties between or among the Western Interconnection,
the Eastern Interconnection, the Electric Reliability
Council of Texas, and other interconnections, as
applicable;
(H) the cooptimization of transmission and
generation, including variable energy resources, energy
storage, and demand-side management;
(I) the opportunities for use of nontransmission
alternatives and grid-enhancing technologies;
(J) economic development opportunities for
communities arising from development of interregional
electricity transmission and transmission of
electricity that is generated by offshore wind; and
(K) evaluation of existing rights-of-way and the
need for additional transmission corridors.
PART 7--ENVIRONMENTAL REVIEWS
SEC. 30471. DEPARTMENT OF ENERGY.
In addition to amounts otherwise available, there is appropriated
to the Department of Energy for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $200,000,000, to remain
available until September 30, 2031 (except that no amounts may be
disbursed after September 30, 2031), to provide for more efficient and
more effective environmental reviews under the National Environmental
Policy Act of 1969 through the hiring and training of additional
personnel, the development of programmatic assessments or templates,
the procurement of technical or scientific services, the development of
data or technology systems, stakeholder and community engagement, and
the purchase of new equipment.
SEC. 30472. FEDERAL ENERGY REGULATORY COMMISSION.
In addition to amounts otherwise available, there is appropriated
to the Federal Energy Regulatory Commission for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated, $100,000,000,
to remain available until September 30, 2031 (except that no amounts
may be disbursed after September 30, 2031), to provide for more
efficient and more effective environmental reviews under the National
Environmental Policy Act of 1969 through the hiring and training of
additional personnel, the development of programmatic assessments or
templates, the procurement of technical or scientific services, the
development of data or technology systems, stakeholder and community
engagement, and the purchase of new equipment.
PART 8--OTHER ENERGY MATTERS
SEC. 30481. FEDERAL ENERGY EFFICIENCY FUND.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Energy for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$17,500,000,000, to remain available until expended (except that no
funds shall be disbursed after September 30, 2031), to provide grants
to agencies to assist them in meeting the requirements of section 543
of the National Energy Conservation Policy Act (42 U.S.C. 8253) or to
assist agencies in reducing the carbon emissions of new or existing
Federal buildings and Federal fleets.
(b) Use of Funds.--The Secretary shall use the funds made available
pursuant to subsection (a) to provide grants to agencies pursuant to
section 546(b) of the National Energy Conservation Policy Act (42
U.S.C. 8256(b)), and to establish a program to provide competitive
grants to agencies, to carry out projects for onsite or offsite
measures that--
(1) are applied to or serve a Federal building or Federal
fleet; and
(2) involve energy conservation, cogeneration facilities,
renewable energy sources, low carbon materials, improvements in
operations and maintenance efficiencies, retrofit activities,
automotive supply equipment, building electrification, energy
storage devices, energy consuming devices and required support
structures, or carbon-pollution free electricity.
(c) Considerations.--In providing grants under subsection (b), the
Secretary may consider--
(1) the cost-effectiveness of the project;
(2) the extent to which a project promotes the integration
of clean energy, carbon pollution-free electricity, low carbon
materials, automotive supply equipment, and such other onsite
or offsite measures as the Secretary determines to be
appropriate;
(3) the amount of energy and cost savings anticipated to
the Federal Government;
(4) the amount of funding committed to the project by the
agency requesting the grant;
(5) the extent that a proposal leverages financing from
other non-Federal sources; and
(6) any other factor which the Secretary determines is in
furtherance of this section.
(d) Definitions.--In this section:
(1) Automotive supply equipment.--The term ``automotive
supply equipment'' means any conductors, including ungrounded,
grounded, and equipment grounding conductors, electric vehicle
connectors, attachment plugs, and all other fittings, devices,
power outlets, electrical equipment, or apparatuses installed
specifically for the purpose of delivering energy to an
electric vehicle or to a battery intended to be used in an
electric vehicle.
(2) Low carbon material.--The term ``low carbon material''
means any material for which the quantity of greenhouse gases
(measured in kilograms of carbon dioxide equivalent) emitted to
the atmosphere by the manufacture, transportation,
installation, maintenance, and disposal of the material is
significantly lower than such quantity for another, similar
material, as measured and reported in an environmental product
declaration.
SEC. 30482. ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANTS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary of Energy for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $5,000,000,000,
to remain available until September 30, 2031 (except that no funds
shall be disbursed after September 30, 2031), to carry out the Energy
Efficiency and Conservation Block Grant Program established under
section 542(a) of the Energy Independence and Security Act of 2007 (42
U.S.C. 17152(a)), of which--
(1) $2,500,000,000 shall be distributed in accordance with
section 543 of such Act (42 U.S.C. 17153); and
(2) $2,5000,000,000 shall be awarded to eligible entities
on a competitive basis.
(b) Program.--In carrying out subsection (a), in addition to
providing assistance described in section 542(b)(1) of the Energy
Independence and Security Act of 2007 (42 U.S.C. 17152(b)(1)), the
Secretary may also provide assistance to eligible entities for
implementing strategies to reduce fossil fuel emissions created as a
result of activities within the jurisdictions of eligible entities in a
manner that diversifies energy supplies, including by facilitating and
promoting the use of alternative fuels.
(c) Use of Funds.--In carrying out subsection (a), for purposes of
section 544 of the Energy Independence and Security Act of 2007 (42
U.S.C. 17154), the Secretary may also consider to be activities that
achieve the purposes of the Energy Efficiency and Conservation Block
Grant Program--
(1) the deployment of energy distribution technologies that
significantly increase energy efficiency or expand access to
alternative fuels, including distributed resources, district
heating and cooling systems, and infrastructure for delivering
alternative fuels; and
(2) programs for financing energy efficiency, renewable
energy, and zero-emission transportation (and associated
infrastructure) capital investments, projects, and programs--
(A) which may include loan programs and performance
contracting programs for leveraging of additional
public and private sector funds, and programs that
allow rebates, grants, or other incentives for the
purchase and installation of energy efficiency,
renewable energy, and zero-emission transportation (and
associated infrastructure) measures; or
(B) which may be used or implemented in connection
with buildings owned and operated by a State, a
political subdivision of a State, an agency or
instrumentality of a State, or an organization exempt
from taxation under section 501(c)(3) of the Internal
Revenue Code of 1986 (26 U.S.C. 501(c)(3)).
(d) Competitive Grants.--In carrying out subsection (a), for
purposes of section 546(c)(2) of the Energy Independence and Security
Act of 2007 (42 U.S.C. 17156(c)(2)), the Secretary may give priority to
units of local government that plan to carry out projects to expand the
use of alternative fuels that would result in significant energy
efficiency improvements or reductions in fossil fuel use.
(e) Administrative Expenses.--Of the amount made available under
subsection (a), the Secretary shall reserve 10 percent for
administrative expenses to carry out this section.
(f) Technical Amendments.--Section 543 of the Energy Independence
and Security Act of 2007 (42 U.S.C. 17153) is amended--
(1) in subsection (c), by striking ``subsection (a)(2)''
and inserting ``subsection (a)(3)''; and
(2) in subsection (d), by striking ``subsection (a)(3)''
and inserting ``subsection (a)(4)''.
SEC. 30483. LOW-INCOME SOLAR.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Department of Energy for fiscal year 2022,
out of any amounts in the Treasury not otherwise appropriated,
$2,500,000,000, to remain available until expended (except that no
funds shall be disbursed after September 30, 2031), to carry out this
section.
(b) In General.--The Secretary shall use funds appropriated by
subsection (a) to provide financial assistance to eligible entities
to--
(1) carry out eligible planning projects; or
(2) carry out eligible installation projects.
(c) Applications.--
(1) In general.--To be eligible to receive assistance under
this section, an eligible entity shall submit to the Secretary
an application at such time, in such manner, and containing
such information as the Secretary may require.
(2) Inclusion for installation assistance.--For an eligible
entity to receive assistance for an eligible installation
project, the Secretary shall require the eligible entity to
include in an application under paragraph (1)--
(A) information that demonstrates that the eligible
entity has obtained, or has the capacity to obtain,
necessary permits, subscribers, access to an
installation site, and any other items or agreements
necessary to complete the installation of the
applicable covered facility;
(B) information that demonstrates that the covered
facility installed using such assistance will comply
with local building and safety codes and standards;
(C) a description of the mechanism through which
financial benefits will be distributed to beneficiaries
or subscribers; and
(D) an estimate of the anticipated financial
benefit for beneficiaries or subscribers.
(3) Consideration of planning projects.--The Secretary may
consider the completion of an eligible planning project
pursuant to subsection (b)(1) by the eligible entity to be
sufficient to demonstrate the ability of the eligible entity to
meet the requirements of paragraph (2)(A).
(d) Selection.--
(1) In general.--In selecting eligible projects to receive
assistance under this section, the Secretary shall--
(A) prioritize--
(i) eligible installation projects that
will result in the most financial benefit for
beneficiaries, as determined by the Secretary;
(ii) eligible installation projects that
will result in development of covered
facilities in underserved areas; and
(iii) eligible projects that include
apprenticeship, job training, or community
participation as part of their application; and
(B) ensure that such assistance is provided in a
manner that results in eligible projects being carried
out on a geographically diverse basis within and among
States.
(2) Determination of financial benefit.--In determining the
amount of financial benefit for low-income households of an
eligible installation project, the Secretary shall ensure that
all calculations for estimated household energy savings are
based solely on electricity offsets from the applicable covered
facility and use formulas established by the State or local
government with jurisdiction over the applicable covered
facility for verifiable household energy savings estimates that
accrue to low-income households.
(e) Assistance.--
(1) Form.--The Secretary may provide assistance under this
section in the form of a grant, rebate, or low-interest loan.
(2) Multiple projects for same facility.--
(A) In general.--An eligible entity may apply for
assistance under this section for an eligible planning
project and an eligible installation project for the
same covered facility.
(B) Separate selections.--Selection by the
Secretary for assistance under this section of an
eligible planning project does not require the
Secretary to select for assistance under this section
an eligible installation project for the same covered
facility.
(f) Use of Assistance.--
(1) Eligible planning projects.--An eligible entity
receiving assistance for an eligible planning project under
this section may use such assistance to pay the costs of pre-
installation activities associated with an applicable covered
facility, including--
(A) feasibility studies;
(B) permitting;
(C) site assessment;
(D) identification of beneficiaries or subscribers;
or
(E) such other costs determined by the Secretary to
be appropriate.
(2) Eligible installation projects.--An eligible entity
receiving assistance for an eligible installation project under
this section may use such assistance to pay the costs of--
(A) installation and operation of a covered
facility, including costs associated with materials,
permitting, labor, or site preparation;
(B) storage technology sited at a covered facility;
(C) interconnection service expenses;
(D) offsetting the cost of a subscription for a
covered facility described in subsection (h)(4)(A) for
subscribers that are members of a low-income household;
or
(E) such other costs determined by the Secretary to
be appropriate.
(g) Use of Funds.--Of the funds appropriated by this section, the
Secretary shall use not less than 85 percent to provide assistance for
eligible installation projects.
(h) Definitions.--In this section:
(1) Beneficiary.--The term ``beneficiary'' means a low-
income household that receives a financial benefit from the
installation and operation of a covered facility.
(2) Community solar facility.--The term ``community solar
facility'' means a solar generating facility that--
(A) has multiple subscribers that receive financial
benefits that are directly attributable to the
facility; and
(B) has a nameplate rating of 5 megawatts AC or
less.
(3) Community solar subscription.--The term ``community
solar subscription'' means a share in the capacity, or a
proportional interest in the electricity generation, of a
community solar facility.
(4) Covered facility.--The term ``covered facility''
means--
(A) a community solar facility at least 50 percent
of the capacity of which is reserved for low-income
households;
(B) a solar generating facility located at a
residence of a low-income household; or
(C) a solar generating facility located at a multi-
family affordable housing complex.
(5) Eligible entity.--The term ``eligible entity'' means--
(A) a nonprofit organization that provides services
to low-income households or multi-family affordable
housing complexes;
(B) a developer, owner, or operator of a covered
facility;
(C) a State, or political subdivision thereof;
(D) an Indian Tribe, tribally owned electric
utility, or tribal energy development organization;
(E) a Native Hawaiian community-based organization;
(F) any other national or regional entity that has
experience developing or installing solar generating
facilities for low-income households that maximize
financial benefits to those households; and
(G) an electric cooperative or a municipality that
is an electric utility (as such terms are defined in
section 3 of the Federal Power Act).
(6) Eligible installation project.--The term ``eligible
installation project'' means a project to install and operate a
covered facility.
(7) Eligible planning project.--The term ``eligible
planning project'' means a project to carry out pre-
installation activities for the development of a covered
facility.
(8) Eligible project.--The term ``eligible project''
means--
(A) an eligible planning project; or
(B) an eligible installation project.
(9) Feasibility study.--The term ``feasibility study''
means a study or assessment that determines the feasibility of
a specific solar generating facility, including a customer
interest assessment and a siting assessment, as determined by
the Secretary.
(10) Indian tribe.--The term ``Indian Tribe'' means any
Indian Tribe, band, nation, Tribal Organization, or other
organized group or community, including any Alaska Native
village, Regional Corporation, or Village Corporation, that is
recognized as eligible for the special programs and services
provided by the United States to Indians because of their
status as Indians.
(11) Interconnection service.--The term ``interconnection
service'' has the meaning given such term in section 111(d)(15)
of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2621(d)(15)).
(12) Low-income household.--The term ``low-income
household'' means a household with an income that--
(A) is at or below 80 percent of the area median
income, or 200 percent of the Federal poverty level,
whichever is higher, except that the Secretary may
establish a higher level if the Secretary determines
that such a higher level is necessary to carry out the
purposes of this section; or
(B) if the State in which the household is located
elects, is the basis for eligibility for assistance
under the Low-Income Home Energy Assistance Act of 1981
(42 U.S.C. 8621 et seq.), provided that such basis is
at least 200 percent of the Federal poverty level.
(13) Multi-family affordable housing complex.--The term
``multi-family affordable housing complex'' means any federally
subsidized affordable housing complex in which at least 50
percent of the units are reserved for low-income households.
(14) Native hawaiian community-based organization.--The
term ``Native Hawaiian community-based organization'' means any
organization that is composed primarily of Native Hawaiians
from a specific community and that assists in the social,
cultural, and educational development of Native Hawaiians in
that community.
(15) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(16) Solar generating facility.--The term ``solar
generating facility'' means--
(A) a generator that creates electricity from
photons; and
(B) the accompanying hardware enabling that
electricity to flow--
(i) onto the electric grid;
(ii) into a facility or structure; or
(iii) into an energy storage device.
(17) State.--The term ``State'' means each of the 50
States, the District of Columbia, Guam, the Commonwealth of
Puerto Rico, the Northern Mariana Islands, the Virgin Islands,
and American Samoa.
(18) Subscriber.--The term ``subscriber'' means a person
who--
(A) owns a community solar subscription, or an
equivalent unit or share of the capacity or generation
of a community solar facility; or
(B) is a member of a low-income household that
financially benefits from a community solar facility,
even if the person does not own a community solar
subscription for the facility.
(19) Underserved area.--The term ``underserved area''
means--
(A) a geographical area with low or no photovoltaic
solar deployment, as determined by the Secretary;
(B) a geographical area that has low or no access
to electricity, as determined by the Secretary;
(C) a geographical area with a high energy burden,
as determined by the Secretary; or
(D) trust land, as defined in section 3765 of title
38, United States Code.
SEC. 30484. OVERSIGHT.
In addition to amounts otherwise available, there is appropriated
to the Department of Energy for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $50,000,000, to remain
available until September 30, 2031 (except that no funds shall be
disbursed after September 30, 2031), for oversight by the Department of
Energy Office of Inspector General of the Department of Energy
activities for which funding is appropriated in this subtitle.
Subtitle F--Affordable Health Care Coverage
SEC. 30601. ENSURING AFFORDABILITY OF COVERAGE FOR CERTAIN LOW-INCOME
POPULATIONS.
(a) Reducing Cost Sharing Under Qualified Health Plans.--Section
1402 of the Patient Protection and Affordable Care Act (42 U.S.C.
18071) is amended--
(1) in subsection (b)--
(A) in paragraph (2), by inserting ``(or, with
respect to plan years 2023 and 2024, whose household
income does not exceed 400 percent of the poverty line
for a family of the size involved)'' before the period;
and
(B) in the matter following paragraph (2), by
adding at the end the following new sentence: ``In the
case of an individual with a household income that does
not exceed 138 percent of the poverty line for a family
of the size involved for any month occurring during the
period beginning on January 1, 2022, and ending on
December 31, 2022, such individual shall, for such
month and for each succeeding month during such period,
be treated as having household income equal to 100
percent for purposes of applying this section.''; and
(2) in subsection (c)--
(A) in paragraph (1)(A), in the matter preceding
clause (i), by inserting ``, with respect to eligible
insureds (other than, with respect to plan years 2023
and 2024, specified enrollees (as defined in paragraph
(6)(C))),'' after ``first be achieved'';
(B) in paragraph (2), in the matter preceding
subparagraph (A), by inserting ``with respect to
eligible insureds (other than, with respect to plan
years 2023 and 2024, specified enrollees)'' after
``under the plan'';
(C) in paragraph (3)--
(i) in subparagraph (A), by striking ``this
subsection'' and inserting ``paragraph (1) or
(2)''; and
(ii) in subparagraph (B), by striking
``this section'' and inserting ``paragraphs (1)
and (2)''; and
(D) by adding at the end the following new
paragraph:
``(6) Special rule for specified enrollees.--
``(A) In general.--The Secretary shall establish
procedures under which the issuer of a qualified health
plan to which this section applies shall reduce cost-
sharing under the plan with respect to months occurring
during plan years 2023 and 2024 for enrollees who are
specified enrollees (as defined in subparagraph (C)) in
a manner sufficient to increase the plan's share of the
total allowed costs of benefits provided under the plan
to 99 percent of such costs.
``(B) Methods for reducing cost sharing.--
``(i) In general.--An issuer of a qualified
health plan making reductions under this
paragraph shall notify the Secretary of such
reductions and the Secretary shall, out of
funds made available under clause (ii), make
periodic and timely payments to the issuer
equal to 12 percent of the total allowed costs
of benefits provided under each such plan to
specified enrollees during plan years 2023 and
2024.
``(ii) Appropriation.--In addition to
amounts otherwise available, there are
appropriated, out of any money in the Treasury
not otherwise appropriated, such sums as may be
necessary to the Secretary to make payments
under clause (i).
``(C) Specified enrollee defined.--For purposes of
this section, the term `specified enrollee' means, with
respect to a month occurring during a plan year, an
eligible insured with a household income that does not
exceed 138 percent of the poverty line for a family of
the size involved during such month. Such insured shall
be deemed to be a specified enrollee for each
succeeding month in such plan year.''.
(b) Open Enrollments Applicable to Certain Lower-income
Populations.--Section 1311(c) of the Patient Protection and Affordable
Care Act (42 U.S.C. 18031(c)) is amended--
(1) in paragraph (6)--
(A) in subparagraph (C), by striking at the end
``and'';
(B) in subparagraph (D), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(E) with respect to a qualified health plan with
respect to which section 1402 applies, for months
occurring during the period beginning on January 1,
2022, and ending on December 31, 2024, enrollment
periods described in subparagraph (A) of paragraph (8)
for individuals described in subparagraph (B) of such
paragraph.''; and
(2) by adding at the end the following new paragraph:
``(8) Special enrollment period for certain low-income
populations.--
``(A) In general.--The enrollment period described
in this paragraph is, in the case of an individual
described in subparagraph (B), the continuous period
beginning on the first day that such individual is so
described.
``(B) Individual described.--For purposes of
subparagraph (A), an individual described in this
subparagraph is an individual--
``(i) with a household income that does not
exceed 138 percent of the poverty line for a
family of the size involved; and
``(ii) who is not eligible for minimum
essential coverage (as defined in section
5000A(f) of the Internal Revenue Code of 1986),
other than for coverage described in any of
subparagraphs (B) through (E) of paragraph (1)
of such section.''.
(c) Additional Benefits for Certain Low-income Individuals for Plan
Year 2024.--Section 1301(a) of the Patient Protection and Affordable
Care Act (42 U.S.C. 18021(a)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C)(iv), by striking the period
and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(D) provides, with respect to a plan offered in
the silver level of coverage to which section 1402
applies during plan year 2024, for benefits described
in paragraph (5) in the case of an individual who, for
a month during such plan year, has a household income
that does not exceed 138 percent of the poverty line
for a family of the size involved, and who is eligible
to receive cost-sharing reductions under section
1402.''; and
(2) by adding at the end the following new paragraph:
``(5) Additional benefits for certain low-income
individuals for plan year 2024.--
``(A) In general.--For purposes of paragraph
(1)(D), the benefits described in this paragraph to be
provided by a qualified health plan are benefits
consisting of non-emergency medical transportation
services (as described in section 1902(a)(4)) and
services described in subsection (a)(4)(C) of section
1905 of the Social Security Act, without any
restriction on the choice of a qualified provider from
whom such an individual so enrolled in such plan may
receive such services described in such subsection, and
without any imposition of cost sharing, which are not
otherwise provided under such plan as part of the
essential health benefits package described in section
1302(a).
``(B) Payments for additional benefits.--
``(i) In general.--An issuer of a qualified
health plan making payments for services
described in subparagraph (A) furnished to
individuals described in paragraph (1)(D)
during plan year 2024 shall notify the
Secretary of such payments and the Secretary
shall, out of funds made available under clause
(ii), make periodic and timely payments to the
issuer equal to payments for such services so
furnished.
``(ii) Appropriation.--In addition to
amounts otherwise available, there is
appropriated, out of any money in the Treasury
not otherwise appropriated, such sums as may be
necessary to the Secretary to make payments
under clause (i).''.
(d) Education and Outreach Activities.----
(1) In general.--Section 1321(c) of the Patient Protection
and Affordable Care Act (42 U.S.C. 18041(c)) is amended by
adding at the end the following new paragraph:
``(3) Outreach and educational activities.--
``(A) In general.--In the case of an Exchange
established or operated by the Secretary within a State
pursuant to this subsection, the Secretary shall carry
out outreach and educational activities for purposes of
informing individuals described in section
1902(a)(10)(A)(i)(VIII) of the Social Security Act who
reside in States that have not expended amounts under a
State plan (or waiver of such plan) under title XIX of
such Act for all such individuals about qualified
health plans offered through the Exchange, including by
informing such individuals of the availability of
coverage under such plans and financial assistance for
coverage under such plans. Such outreach and
educational activities shall be provided in a manner
that is culturally and linguistically appropriate to
the needs of the populations being served by the
Exchange (including hard-to-reach populations, such as
racial and sexual minorities, limited English
proficient populations, individuals residing in areas
where the unemployment rates exceeds the national
average unemployment rate, individuals in rural areas,
veterans, and young adults).
``(B) Limitation on use of funds.--No funds
appropriated under this paragraph shall be used for
expenditures for promoting non-ACA compliant health
insurance coverage.
``(C) Non-aca compliant health insurance
coverage.--For purposes of subparagraph (B):
``(i) The term `non-ACA compliant health
insurance coverage' means health insurance
coverage, or a group health plan, that is not a
qualified health plan.
``(ii) Such term includes the following:
``(I) An association health plan.
``(II) Short-term limited duration
insurance.
``(D) Funding.--In addition to amounts otherwise
available, there is appropriated, out of any money in
the Treasury not otherwise appropriated, to remain
available until expended, $15,000,000 for fiscal year
2022, and $30,000,000 for each of fiscal years 2023 and
2024, to carry out this paragraph.''.
(2) Navigator program.--Section 1311(i)(6) of the Patient
Protection and Affordable Care Act (42 U.S.C. 18031(i)(6)) is
amended--
(A) by striking ``Funding.--Grants under'' and
inserting ``Funding.--
``(A) State exchanges.--Grants under''; and
(B) by adding at the end the following new
subparagraph:
``(B) Federal exchanges.--For purposes of carrying
out this subsection, with respect to an Exchange
established and operated by the Secretary within a
State pursuant to section 1321(c), the Secretary shall
obligate $10,000,000 out of amounts collected through
the user fees on participating health insurance issuers
pursuant to section 156.50 of title 45, Code of Federal
Regulations (or any successor regulations) for fiscal
year 2022, and $20,000,000 for each of fiscal years
2023 and 2024. Such amount so obligated for a fiscal
year shall remain available until expended.''.
SEC. 30602. TEMPORARY EXPANSION OF HEALTH INSURANCE PREMIUM TAX CREDITS
FOR CERTAIN LOW-INCOME POPULATIONS.
(a) In General.--Section 36B is amended by redesignating subsection
(h) as subsection (i) and by inserting after subsection (g) the
following new subsection:
``(h) Certain Temporary Rules for 2022 Through 2024.--With respect
to any taxable year beginning after December 31, 2021, and before
January 1, 2025--
``(1) Eligibility for credit not limited based on income.--
Section 36B(c)(1)(A) shall be disregarded in determining
whether a taxpayer is an applicable taxpayer.
``(2) Credit allowed to certain low-income employees
offered employer-provided coverage.--Subclause (II) of
subsection (c)(2)(C)(i) shall not apply if the taxpayer's
household income does not exceed 138 percent of the poverty
line for a family of the size involved. The last sentence of
such subsection shall also apply for purposes of this
paragraph. Subclause (II) of subsection (c)(2)(C)(i) shall also
not apply to an individual described in the last sentence of
such subsection if the taxpayer's household income does not
exceed 138 percent of the poverty line for a family of the size
involved.
``(3) Credit allowed to certain low-income employees
offered qualified small employer health reimbursement
arrangements.--A qualified small employer health reimbursement
arrangement shall not be treated as constituting affordable
coverage for an employee (or any spouse or dependent of such
employee) for any months of a taxable year if the employee's
household income for such taxable year does not exceed 138
percent of the poverty line for a family of the size involved.
``(4) Limitations on recapture.--
``(A) In general.--In the case of a taxpayer whose
household income is less than 200 percent of the
poverty line for the size of the family involved for
the taxable year, the amount of the increase under
subsection (f)(2)(A) shall in no event exceed $300
(one-half of such amount in the case of a taxpayer
whose tax is determined under section 1(c) for the
taxable year).
``(B) Limitation on increase for certain non-
filers.--In the case of any taxpayer who would not be
required to file a return of tax for the taxable year
but for any requirement to reconcile advance credit
payments under subsection (f), if an Exchange
established under title I of the Patient Protection and
Affordable Care Act has determined that--
``(i) such taxpayer is eligible for advance
payments under section 1412 of such Act for any
portion of such taxable year, and
``(ii) such taxpayer's household income for
such taxable year is projected to not exceed
138 percent of the poverty line for a family of
the size involved,
subsection (f)(2)(A) shall not apply to such taxpayer
for such taxable year and such taxpayer shall not be
required to file such return of tax.
``(C) Information provided by exchange.--The
information required to be provided by an Exchange to
the Secretary and to the taxpayer under subsection
(f)(3) shall include such information as is necessary
to determine whether such Exchange has made the
determinations described in clauses (i) and (ii) of
subparagraph (B) with respect to such taxpayer.''.
(b) Employer Shared Responsibility Provision Not Applicable With
Respect to Certain Low-income Taxpayers Receiving Premium Assistance.--
Section 4980H(c)(3) is amended to read as follows:
``(3) Applicable premium tax credit and cost-sharing
reduction.--
``(A) In general.--The term `applicable premium tax
credit and cost-sharing reduction' means--
``(i) any premium tax credit allowed under
section 36B,
``(ii) any cost-sharing reduction under
section 1402 of the Patient Protection and
Affordable Care Act, and
``(iii) any advance payment of such credit
or reduction under section 1412 of such Act.
``(B) Exception with respect to certain low-income
taxpayers.--Such term shall not include any premium tax
credit, cost-sharing reduction, or advance payment
otherwise described in subparagraph (A) if such credit,
reduction, or payment is allowed or paid for a taxable
year of an employee (beginning after December 31, 2021,
and before January 1, 2025) with respect to which--
``(i) an Exchange established under title I
of the Patient Protection and Affordable Care
Act has determined that such employee's
household income for such taxable year is
projected to not exceed 138 percent of the
poverty line for a family of the size involved,
or
``(ii) such employee's household income for
such taxable year does not exceed 138 percent
of the poverty line for a family of the size
involved.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 30603. ESTABLISHING A HEALTH INSURANCE AFFORDABILITY FUND.
(a) In General.--Subtitle D of title I of the Patient Protection
and Affordable Care Act is amended by inserting after part 5 (42 U.S.C.
18061 et seq.) the following new part:
``PART 6--IMPROVE HEALTH INSURANCE AFFORDABILITY FUND
``SEC. 1351. ESTABLISHMENT OF PROGRAM.
``There is hereby established the `Improve Health Insurance
Affordability Fund' to be administered by the Secretary of Health and
Human Services, acting through the Administrator of the Centers for
Medicare & Medicaid Services (in this section referred to as the
`Administrator'), to provide funding, in accordance with this part, to
the 50 States and the District of Columbia (each referred to in this
section as a `State') beginning on January 1, 2023, for the purposes
described in section 1352.
``SEC. 1352. USE OF FUNDS.
``(a) In General.--A State shall use the funds allocated to the
State under this part for one of the following purposes:
``(1) To provide reinsurance payments to health insurance
issuers with respect to individuals enrolled under individual
health insurance coverage (other than through a plan described
in subsection (b)) offered by such issuers.
``(2) To provide assistance (other than through payments
described in paragraph (1)) to reduce out-of-pocket costs, such
as copayments, coinsurance, premiums, and deductibles, of
individuals enrolled under qualified health plans offered on
the individual market through an Exchange and of individuals
enrolled under standard health plans offered through a basic
health program established under section 1331.
``(b) Exclusion of Certain Grandfathered Plans, Transitional Plans,
Student Health Plans, and Excepted Benefits.--For purposes of
subsection (a), a plan described in this subsection is the following:
``(1) A grandfathered health plan (as defined in section
1251).
``(2) A plan (commonly referred to as a `transitional
plan') continued under the letter issued by the Centers for
Medicare & Medicaid Services on November 14, 2013, to the State
Insurance Commissioners outlining a transitional policy for
coverage in the individual and small group markets to which
section 1251 does not apply, and under the extension of the
transitional policy for such coverage set forth in the
Insurance Standards Bulletin Series guidance issued by the
Centers for Medicare & Medicaid Services on March 5, 2014,
February 29, 2016, February 13, 2017, April 9, 2018, March 25,
2019, January 31, 2020, and January 19, 2021, or under any
subsequent extensions thereof.
``(3) Student health insurance coverage (as defined in
section 147.145 of title 45, Code of Federal Regulations, or
any successor regulation).
``(4) Excepted benefits (as defined in section 2791(c) of
the Public Health Service Act).
``SEC. 1353. STATE ELIGIBILITY AND APPROVAL; DEFAULT SAFEGUARD.
``(a) Encouraging State Options for Allocations.--
``(1) In general.--Subject to subsection (b), to be
eligible for an allocation of funds under this part for a year
(beginning with 2023), a State shall submit to the
Administrator an application at such time (but, in the case of
allocations for 2023, not later than 120 days after the date of
the enactment of this part and, in the case of allocations for
a subsequent year, not later than January 1 of the previous
year) and in such form and manner as specified by the
Administrator containing--
``(A) a description of how the funds will be used;
and
``(B) such other information as the Administrator
may require.
``(2) Automatic approval.--An application so submitted is
approved (as outlined in the terms of the plan) unless the
Administrator notifies the State submitting the application,
not later than 90 days after the date of the submission of such
application, that the application has been denied for not being
in compliance with any requirement of this part and of the
reason for such denial.
``(3) 5-year application approval.--If an application of a
State is approved for a purpose described in section 1352 for a
year, such application shall be treated as approved for such
purpose for each of the subsequent 4 years.
``(4) Oversight authority and authority to revoke
approval.--
``(A) Oversight.--The Secretary may conduct
periodic reviews of the use of funds provided to a
State under this section, with respect to a purpose
described in section 1352, to ensure the State uses
such funds for such purpose and otherwise complies with
the requirements of this section.
``(B) Revocation of approval.--The approval of an
application of a State, with respect to a purpose
described in section 1352, may be revoked if the State
fails to use funds provided to the State under this
section for such purpose or otherwise fails to comply
with the requirements of this section.
``(b) Default Federal Safeguard for 2023 and 2024 for Certain
States.--
``(1) In general.--For 2023 and 2024, in the case of a
State described in paragraph (5), with respect to such year,
the State shall not be eligible to submit an application under
subsection (a), and the Administrator, in consultation with the
applicable State authority, shall from the amount calculated
under paragraph (3) for such year, carry out the purpose
described in paragraph (2) in such State for such year.
``(2) Specified use.--The amount described in paragraph
(3), with respect to a State described in paragraph (5) for
2023 or 2024, shall be used to carry out the purpose described
in section 1352(a)(1) in such State for such year, as
applicable, by providing reinsurance payments to health
insurance issuers with respect to attachment range claims (as
defined in section 1354(b)(2), using the dollar amounts
specified in subparagraph (B) of such section for such year) in
an amount equal to, subject to paragraph (4), the percentage
(specified for such year by the Secretary under such
subparagraph) of the amount of such claims.
``(3) Amount described.--The amount described in this
paragraph, with respect to 2023 or 2024, is the amount equal to
the total sum of amounts that the Secretary would otherwise
estimate under section 1354(b)(2)(A)(i) for such year for each
State described in paragraph (5) for such year, as applicable,
if each such State were not so described for such year.
``(4) Adjustment.--For purposes of this subsection, the
Secretary may apply a percentage under paragraph (3) with
respect to a year that is less than the percentage otherwise
specified in section 1354(b)(2)(B) for such year, if the cost
of paying the total eligible attachment range claims for States
described in paragraph (5) for such year at such percentage
otherwise specified would exceed the amount calculated under
paragraph (3) for such year.
``(5) State described.--A State described in this
paragraph, with respect to years 2023 and 2024, is a State
that, as of January 1 of 2022 or 2023, respectively, was not
expending amounts under the State plan (or waiver of such plan)
for all individuals described in section
1902(a)(10)(A)(i)(VIII) during such year.
``SEC. 1354. ALLOCATIONS.
``(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated, out of any money in the Treasury not otherwise
appropriated, $10,000,000,000 for 2023 and each subsequent year to
provide allocations for States under subsection (b) and payments under
section 1353(b) .
``(b) Allocations.--
``(1) Payment.--
``(A) In general.--From amounts appropriated under
subsection (a) for a year, the Secretary shall, with
respect to a State not described in section 1353(b) for
such year and not later than the date specified under
subparagraph (B) for such year, allocate for such State
the amount determined for such State and year under
paragraph (2).
``(B) Specified date.--For purposes of subparagraph
(A), the date specified in this subparagraph is--
``(i) for 2023, the date that is 90 days
after the date of the enactment of this part;
and
``(ii) for 2024 or a subsequent year,
January 1 of the previous year.
``(C) Notifications of allocation amounts.--For
2024 and each subsequent year, the Secretary shall
notify each State of the amount determined for such
State under paragraph (2) for such year by not later
than January 1 of the previous year.
``(2) Allocation amount determinations.--
``(A) In general.--For purposes of paragraph (1),
the amount determined under this paragraph for a year
for a State described in paragraph (1)(A) for such year
is the amount equal to--
``(i) the amount that the Secretary
estimates would be expended under this part for
such year on attachment range claims of
individuals residing in such State if such
State used such funds only for the purpose
described in paragraph (1) of section 1352(a)
at the dollar amounts and percentage specified
under subparagraph (B) for such year; minus
``(ii) the amount, if any, by which the
Secretary determines--
``(I) the estimated amount of
premium tax credits under section 36B
of the Internal Revenue Code of 1986
that would be attributable to
individuals residing in such State for
such year without application of this
part; exceeds
``(II) the estimated amount of
premium tax credits under section 36B
of the Internal Revenue Code of 1986
that would be attributable to
individuals residing in such State for
such year if section 1353(b) applied
for such year and applied with respect
to such State for such year.
For purposes of the previous sentence and section
1353(b)(3), the term `attachment range claims' means,
with respect to an individual, the claims for such
individual that exceed a dollar amount specified by the
Secretary for a year, but do not exceed a ceiling
dollar amount specified by the Secretary for such year,
under subparagraph (B).
``(B) Specifications.--For purposes of subparagraph
(A) and section 1353(b)(3), the Secretary shall
determine the dollar amounts and the percentage to be
specified under this subparagraph for a year in a
manner to ensure that the total amount of expenditures
under this part for such year is estimated to equal the
total amount appropriated for such year under
subsection (a) if such expenditures were used solely
for the purpose described in paragraph (1) of section
1352(a) for attachment range claims at the dollar
amounts and percentage so specified for such year.
``(3) Availability.--Funds allocated to a State under this
subsection for a year shall remain available through the end of
the subsequent year.''.
(b) Basic Health Program Funding Adjustments.--Section 1331 of the
Patient Protection and Affordable Care Act (42 U.S.C. 18051) is
amended--
(1) in subsection (a), by adding at the end the following
new paragraph:
``(3) Provision of information on qualified health plan
premiums.--
``(A) In general.--For plan years beginning on or
after January 1, 2023, the program described in
paragraph (1) shall provide that a State may not
establish a basic health program unless such State
furnishes to the Secretary, with respect to each
qualified health plan offered in such State during a
year that receives any reinsurance payment from funds
made available under part 6 for such year, the adjusted
premium amount (as defined in subparagraph (B)) for
each such plan and year.
``(B) Adjusted premium amount defined.--For
purposes of subparagraph (A), the term `adjusted
premium amount' means, with respect to a qualified
health plan and a year, the monthly premium for such
plan and year that would have applied had such plan not
received any payments described in subparagraph (A) for
such year.''; and
(2) in subsection (d)(3)(A)(ii), by adding at the end the
following new sentence: ``In making such determination, the
Secretary shall calculate the value of such premium tax credits
that would have been provided to such individuals enrolled
through a basic health program established by a State during a
year using the adjusted premium amounts (as defined in
subsection (a)(3)(B)) for qualified health plans offered in
such State during such year.''.
Subtitle G--Medicaid
PART 1--FEDERAL MEDICAID PROGRAM TO CLOSE THE COVERAGE GAP
SEC. 30701. CLOSING THE MEDICAID COVERAGE GAP.
(a) Federal Medicaid Program to Close Coverage Gap in Nonexpansion
States.--Title XIX of the Social Security Act (42 U.S.C. 1396 et seq.)
is amended by adding at the end the following new section:
``SEC. 1948. FEDERAL MEDICAID PROGRAM TO CLOSE COVERAGE GAP IN
NONEXPANSION STATES.
``(a) Establishment.--Not later than January 1, 2025, the Secretary
shall establish a program (in this section referred to as the `Federal
Medicaid program' or the `Program' under which, in the case of a State
that the Secretary determines (based on the State plan under this
title, waiver of such plan, or other relevant information) is not
expected to expend amounts under the State plan (or waiver of such
plan) for all individuals who would be entitled to medical assistance
pursuant to section 1902(a)(10)(A)(i)(VIII) during a year (beginning
with 2025), (in this section defined as `a coverage gap State', with
respect to such year), the Secretary shall (including through contract
with eligible entities (as specified by the Secretary), consistent with
subsection (b)) provide for the offering to such individuals residing
in such State of health benefits. The Federal Medicaid program shall be
offered in a coverage gap State for each quarter during the period
beginning on January 1 of such year, and ending with the last day of
the first quarter during which the State provides medical assistance to
all such individuals under the State plan (or waiver of such plan).
Under the Federal Medicaid program, the Secretary--
``(1) may use the Federally Facilitated Marketplace to
facilitate eligibility determinations and enrollments under the
Federal Medicaid Program and shall establish a set of
eligibility rules to be applied under the Program in a manner
consistent with section 1902(e)(14);
``(2) shall establish benefits, beneficiary protections,
and access to care standards by, at a minimum--
``(A) establishing a minimum set of health benefits
to be provided (and providing such benefits) under the
Federal Medicaid program, which shall be in compliance
with the requirements of section 1937 and shall consist
of benchmark coverage described in section 1937(b)(1)
or benchmark equivalent coverage described in section
1937(b)(2) to the same extent as medical assistance
provided to such an individual under this title
(without application of this section) is required under
section 1902(k)(1) to consist of such benchmark
coverage or benchmark equivalent coverage;
``(B) applying the provisions of sections
1902(a)(8), 1902(a)(34), and 1943 with respect to such
an individual, health benefits under the Federal
Medicaid program, and making application for such
benefits in the same manner as such provisions would
apply to such an individual, medical assistance under
this title (other than pursuant to this section), and
making application for such medical assistance under
this title (other than pursuant to this section); and
providing that redeterminations and appeals of
eligibility and coverage determinations of items and
services (including benefit reductions, terminations,
and suspension) shall be conducted under the Federal
Medicaid program in accordance with a Federal fair
hearing process established by the Secretary that is
subject to the same requirements as applied under
section 1902(a)(3) with respect to redeterminations and
appeals of eligibility, and with respect to coverage of
items and services (including benefit reductions,
terminations, and suspension), under a State plan under
this title and that may provide for such fair hearings
related to denials of eligibility (based on modified
adjusted gross income eligibility determinations) to be
conducted through the Federally Facilitated Marketplace
for Exchanges;
``(C) applying, in accordance with subsection (d),
the provisions of section 1927 (other than
subparagraphs (B) and (C) of subsection (b)(1) of such
section) with respect to the Secretary and payment
under the Federal Medicaid program for covered
outpatient drugs with respect to a rebate period in the
same manner and to the same extent as such provisions
apply with respect to a State and payment under the
State plan for covered outpatient drugs with respect to
the rebate period;
``(D) applying the provisions of sections
1902(a)(14), 1902(a)(23), 1902(a)(47), and 1920 through
1920C (as applicable) to the Federal Medicaid program
and such individuals enrolled in and entitled to health
benefits under such program in the same manner and to
the same extent as such provisions apply to such
individuals eligible for medical assistance under the
State plan, and applying the provisions of section
1902(a)(30)(A) with respect to medical assistance
available under the Federal Medicaid program in the
same manner and to the same extent as such provisions
apply to medical assistance under a State plan under
this title, except that--
``(i) the Secretary shall provide that no
cost sharing shall be applied under the Federal
Medicaid program;
``(ii) the Secretary may waive the
provisions of subparagraph (A) of section
1902(a)(23) to the extent deemed appropriate to
facilitate the implementation of managed care;
``(iii) in applying the provisions of
section 1902(a)(47) and sections 1920 through
1920C, the Secretary--
``(I) shall establish a single
presumptive eligibility process for
individuals eligible under the Federal
Medicaid program, under which the
Secretary may contract with entities to
carry out such process; and
``(II) may apply such provisions
and process in accordance with such
phased-in implementation as the
Secretary deems necessary, but
beginning as soon as practicable); and
``(E) prohibiting payment from being available
under the Federal Medicaid program for any item or
service subject to a payment exclusion under this title
or title XI.
``(b) Administration of Federal Medicaid Program Through Contracts
With Medicaid Managed Care Organization and Third Party Plan
Administrator Requirements.--
``(1) In general.--For the purpose of providing medical
assistance to individuals described in section
1902(a)(10)(A)(i)(VIII) enrolled under the Federal Medicaid
program across all coverage gap geographic areas (as defined in
paragraph (8)) in which such individuals reside, the Secretary
shall solicit bids described in paragraph (2) and enter into
contracts with a total of at least 2 eligible entities (as
specified by the Secretary, which may be a medicaid managed
care organization (in this section defined as a managed care
organization described in section 1932(a)(1)(B)(i)), a third
party plan administrator, or both). An eligible entity entering
into a contract with the Secretary under this paragraph may
administer such benefits as a medicaid managed care
organization (as so defined), in which case such contract shall
be in accordance with paragraph (3) with respect to such
geographic area, or as a third-party administrator, in which
case such contract shall be in accordance with paragraph (4)
with respect to such geographic area. The Secretary may so
contract with a Medicaid managed care organization or third
party plan administrator in each coverage gap geographic area
(and may specify which type of eligible entity may bid with
respect to a coverage gap geographic area or areas) and may
contract with more than one such eligible entity in the same
coverage gap geographic area.
``(2) Bids.--
``(A) In general.--To be eligible to enter into a
contract under this subsection, for a year, an entity
shall submit (at such time, in such manner, and
containing such information as specified by the
Secretary) one or more bids to provide medical
assistance under the Program in one or more coverage
gap geographic areas, which are actuarially sound and
reflect the projected monthly cost to the entity of
providing medical assistance under the Program to an
individual enrolled under the Program in such a
geographic area (or areas) for such year.
``(B) Selection.--In selecting from bids submitted
under subparagraph (A) for purposes of entering into
contracts with eligible entities under this subsection,
with respect to a coverage gap geographic area, the
Secretary shall take into account at least each of the
following, with respect to each such bid:
``(i) Network adequacy (as proposed in the
submitted bid).
``(ii) The amount, duration, and scope of
benefits (such as value-added services offered
in the submitted bid), as compared to the
minimum set of benefits established by the
Secretary under subsection (a)(2)(A).
``(iii) The amount of the bid, taking into
account the average per member cost of
providing medical assistance under State plans
under this title (or waivers of such plans) to
individuals enrolled in such plans (or waivers)
who are at least 18 years of age and residing
in the coverage gap geographic area, as well as
the average cost of providing medical
assistance under State plans under this title
(and waivers of such plans) to individuals
described in section 1902(a)(10)(A)(i)(VIII).
``(iv) The organizational capacity of the
entity, the experience of the entity with
Medicaid managed care, the experience of the
entity with Medicaid managed care for
individuals described in section
1902(a)(10)(A)(i)(VIII), the performance of the
entity (if available) on the adult core set
quality measures in States that are not
coverage gap States.
``(3) Contract with medicaid managed care organization.--In
the case of a contract under paragraph (1) between the
Secretary and an eligible entity administering benefits under
the Program as a Medicaid managed care organization, with
respect to one or more coverage gap geographic areas, the
following shall apply:
``(A) The provisions of clauses (i) through (xi) of
section 1903(m)(2)(A), clause (xii) of such section (to
the extent such clause relates to subsections (b), (d),
(f), and (i) of section 1932), and clause (xiii) of
such section 1903(m)(2)(A) shall, to the greatest
extent practicable, apply to the contract, to the
Secretary, and to the Medicaid managed care
organization, with respect to providing medical
assistance under the Federal Medicaid program with
respect to such area (or areas), in the same manner and
to the same extent as such provisions apply to a
contract under section 1903(m) between a State and an
entity that is a medicaid managed care organization (as
defined in section 1903(m)(1)), to the State, and to
the entity, with respect to providing medical
assistance to individuals eligible for benefits under
this title.
``(B) The provisions of section 1932(h) shall apply
to the contract, Secretary, and Medicaid managed care
organization.
``(C) The contract shall provide that the entity
pay claims in a timely manner and in accordance with
the provisions of section 1902(a)(37).
``(D) The contract shall provide that the Secretary
shall make payments under this section to the entity,
with respect to coverage of each individual enrolled
under the Program in such a coverage gap geographic
area with respect to which the entity administers the
Program in an amount specified in the contract, subject
to subparagraph (D)(ii) and paragraph (6).
``(E) The contract shall require--
``(i) the application of a minimum medical
loss ratio (as calculated under subsection (d)
of section 438.8 of title 42, Code of Federal
Regulations (or any successor regulation)) for
payment for medical assistance administered by
the managed care organization under the
Program, with respect to a year, that is equal
to or greater than 85 percent (or such higher
percent as specified by the Secretary); and
``(ii) in the case, with respect to a year,
the minimum medical loss ratio (as so
calculated) for payment for services under the
benefits so administered is less than 85
percent (or such higher percent as specified by
the Secretary under clause (i)), remittance by
the organization to the Secretary of any
payments (or portions of payments) made to the
organization under this section in an amount
equal to the difference in payments for medical
assistance, with respect to the year, resulting
from the organization's failure to meet such
ratio for such year.
``(F) The contract shall require that the eligible
entity submit to the Secretary--
``(i) the number of individuals enrolled in
the Program with respect to each coverage gap
geographic area and month with respect to which
the contract applies;
``(ii) encounter data (disaggregated by
race, ethnicity, and age) with respect to each
coverage gap geographic area and month with
respect to which the contract applies; and
``(iii) such additional information as
specified by the Secretary for purposes of
payment, program integrity, oversight, quality
measurement, or such other purpose specified by
the Secretary.
``(G) The contract shall require that the eligible
entity perform any other activity identified by the
Secretary.
``(4) Contract with a third party plan administrator.--
``(A) In general.--In the case of a contract under
paragraph (1) between the Secretary and an eligible
entity to administer the Program as a third party plan
administrator, with respect to one or more coverage gap
geographic areas, such contract shall provide that,
with respect to medical assistance provided under the
Federal Medicaid program to individuals who are
enrolled in the Program with respect to such area (or
areas)--
``(i) the third party plan administrator
shall, consistent with such requirements as may
be established by the Secretary--
``(I) establish provider networks,
payment rates, and utilization
management, consistent with the
provisions of section 1902(a)(30)(A),
as applied by subsection (a)(4) of this
section;
``(II) pay claims in a timely
manner and in accordance with the
provisions of section 1902(a)(37);
``(III) submit to the Secretary--
``(aa) the number of
individuals enrolled in the
Program with respect to each
coverage gap geographic area
and month with respect to which
the contract applies;
``(bb) encounter data
(disaggregated by race,
ethnicity, and age) with
respect to each coverage gap
geographic area and month with
respect to which the contract
applies; and
``(cc) such additional
information as specified by the
Secretary for purposes of
payment, program integrity,
oversight, quality measurement,
or such other purpose specified
by the Secretary; and
``(IV) perform any other activity
identified by the Secretary;
``(ii) the Secretary shall make payments
(for the claims submitted by the third party
plan administrator and for an economic and
efficient administrative fee) under this
section to the third party plan administrator,
with respect to coverage of each individual
enrolled under the Program in a coverage gap
geographic area with respect to which the third
party plan administrator administers the
Program in an amount determined under the
contract, subject to subclause (VI)(bb) and
paragraph (7); and
``(iii) the provisions of clause (xii) of
section 1903(m)(2)(A) (to the extent such
clause relates to subsections (b), (d), (f),
and (i) of section 1932) shall, to the greatest
extent practicable, apply to the contract, to
the Secretary, and to the third party plan
administrator, with respect to providing
medical assistance under the Federal Medicaid
program with respect to such area (or areas),
in the same manner and to the same extent as
such provisions apply to a contract under
section 1903(m) between a State and an entity
that is a medicaid managed care organization
(as defined in section 1903(m)(1)), to the
State, and to the entity, with respect to
providing medical assistance to individuals
eligible for benefits under this title
``(B) Third party plan administrator defined.--For
purposes of this section, the term `third party plan
administrator' means an entity that satisfies such
requirements as established by the Secretary, which
shall include at least that such an entity administers
health plan benefits, pays claims under the plan,
establishes provider networks, sets payment rates, and
are not risk-bearing entities.
``(5) Administrative authority.--The Secretary may take
such actions as are necessary to administer this subsection,
including by setting network adequacy standards, establishing
quality requirements, establishing reporting requirements,
limiting administrative costs, and specifying any other program
requirements or standards necessary in contracting with
specified entities under this subsection, and overseeing such
entities, with respect to the administration of the Federal
Medicaid program.
``(6) Preemption.--In carrying out the duties under a
contract entered into under paragraph (1) between the Secretary
and a Medicaid managed care organization or a third party plan
administrator, with respect to a coverage gap State--
``(A) the Secretary may establish minimum standards
and licensure requirements for such a Medicaid managed
care organization or third party plan administrator for
purposes of carrying out such duties; and
``(B) any provisions of law of that State which
relate to the licensing of the organization or
administrator and which prohibit the organization or
administrator from providing coverage pursuant to a
contract under this section shall be superseded.
``(7) Penalties.--In the case of an eligible entity with a
contract under this section that fails to comply with the
requirements of such entity pursuant to this section or such
contract, the Secretary may withhold payment (or any portion of
such payment) to such entity under this section in accordance
with a process specified by the Secretary, impose a corrective
action plan on such entity, terminate the contract, or impose a
civil monetary penalty on such entity in an amount not to
exceed $10,000 for each such failure. In implementing this
paragraph, the Secretary shall have the authorities provided
the Secretary under section 1932(e) and subparts F and I of
part 438 of title 42, Code of Federal Regulations.
``(8) Coverage gap geographic area.--For purposes of this
section, the term `coverage gap geographic area' means an area
of one or more coverage gap States, as specified by the
Secretary, or any area within such a State, as specified by the
Secretary.
``(c) Periodic Data Matching.--The Secretary shall, including
through contract, periodically verify the income of an individual
enrolled in the Federal Medicaid program for a year, before the end of
such year, to determine if there has been any change in the
individual's eligibility for benefits under the program. For purposes
of the previous sentence, in the case that, pursuant to such
verification, an individual is determined to have had a change in
income that results in such individual no longer be included as an
individual described in section 1902(a)(10)(A)(i)(VIII), the Secretary
shall apply the same processes and protections as States are required
under this title to apply with respect to an individual who is
determined to have had a change in income that results in such
individual no longer being included as eligible for medical assistance
under this title (other than pursuant to this section).
``(d) Drug Rebates.--For purposes of subsection (a)(2)(C), in
applying section 1927, the Secretary shall (either directly or through
contracts)--
``(1) require an eligible entity with a contract under
subsection (b) to report the data required to be reported under
section 1927(b)(2) by a State agency and require such entity to
submit to the Secretary rebate data, utilization data, and any
other information that would otherwise be required under
section 1927 to be submitted to the Secretary by a State;
``(2) shall take such actions as are necessary and develop
or adapt such processes and mechanisms as are necessary to
report and collect data as is necessary and to bill and track
rebates under section 1927, as applied pursuant to subsection
(a)(2)(B) for drugs that are provided under the Federal
Medicaid program;
``(3) provide that the coverage requirements of
prescription drugs under the Federal Medicaid program comply
with the coverage requirements under section 1927;
``(4) require that in order for payment to be available
under the Federal Medicaid program or under section 1903(a) for
covered outpatient drugs of a manufacturer, the manufacturer
must have entered into and have in effect a rebate agreement to
provide rebates under section 1927 to the Federal Medicaid
program in the same form and manner as the manufacturer is
required to provide rebates under an agreement described in
section 1927(b) to a State Medicaid program under this title;
``(5) require an eligible entity with a contract under
subsection (b) to provide for a drug use review program
described in subsection (g) of section 1927 in accordance with
the requirements applicable to a State under such subsection
(g) with respect to a drug use review program; and
``(6) adopt a mechanism to prevent the requirements of
section 1927 from applying to covered outpatient drugs under
the Federal Medicaid program pursuant to this subsection and
subsection (a)(2)(C) if such drugs are subject to discounts
under section 340B of the Public Health Service Act.
``(e) Transitions.--
``(1) From exchange plans onto federal medicaid program.--
The Secretary shall provide for a process under which, in the
case of individuals entitled to medical assistance pursuant
section 1902(a)(10)(A)(i)(VIII) who are enrolled in qualified
health plans through an Exchange in a coverage gap State, the
Secretary takes such steps as are necessary to transition such
individuals to coverage under the Federal Medicaid program.
Such process shall apply procedures described in section
1943(b)(1)(C) to screen for eligibility and enrollment under
the Federal Medicaid program in the same manner as such
procedures screen for eligibility and enrollment under
qualified health plans through an Exchange established under
title I of the Patient Protection and Affordable Care Act.
``(2) In case coverage gap state begins providing coverage
under state plan.--The Secretary shall provide for a process
for, in the case of a coverage gap State in which the State
begins to provide medical assistance to individuals described
in section 1902(a)(10)(A)(i)(VIII) under the State plan (or
waiver of such plan) and the Federal Medicaid program ceases to
be offered, transitioning individuals from such program to the
State plan (or waiver), as eligible, including a process for
transitioning all eligibility redeterminations.
``(3) Authority for phase-in.--The Secretary may apply
section 1902(a)(34), pursuant to subsection (a)(2)(B) of this
section, in accordance with such phased-in implementation as
the Secretary deems necessary, but beginning as soon as
practicable.
``(f) Coordination With and Enrollment Through Exchanges.--The
Secretary shall take such actions as are necessary to provide, in the
case of a coverage gap State in which the Federal Medicaid program is
offered, for the availability of information on, determinations of
eligibility for, and enrollment in such program through and coordinated
with the Exchange established with respect to such State under title I
of the Patient Protection and Affordable Care Act.
``(g) Third Party Liability.--The provisions of section 1902(a)(25)
shall apply with respect to the Federal Medicaid program, the
Secretary, and the eligible entities with a contract under subsection
(b) in the same manner as such provisions apply with respect to State
plans under this title (or waiver of such plans) and the State or local
agency administering such plan (or waiver). The Secretary may specify a
timeline (which may include a phase-in) for implementing this
subsection.
``(h) Fraud And Abuse Provisions.--Provisions of law (other than
criminal law provisions) identified by the Secretary, in consultation
(as appropriate) with the Inspector General of the Department of Health
and Human Services, that impose sanctions with respect to waste, fraud,
and abuse under this title or title XI, such as the False Claims Act
(31 U.S.C. 3729 et seq.), as well as provisions of law (other than
criminal law provisions) identified by the Secretary that provide
oversight authority, shall also apply to the Federal Medicaid program.
``(i) Maintenance of Effort.--
``(1) Payment.--
``(A) In general.--In the case of a State that, as
of January 1, 2022, is expending amounts for all
individuals described in section
1902(a)(10)(A)(i)(VIII) under the State plan (or waiver
of such plan) and that stops expending amounts for all
such individuals under the State plan (or waiver of
such plan), such State shall for each quarter beginning
after January 1, 2022, during which such State does not
expend amounts for all such individuals provide for
payment under this subsection to the Secretary of the
product of--
``(i) 10 percent of, subject to
subparagraph (B), the average monthly per
capita costs expended under the State plan (or
waiver of such plan) for such individuals
during the most recent previous quarter with
respect to which the State expended amounts for
all such individuals; and
``(ii) the sum, for each month during such
quarter, of the number of individuals enrolled
under such program in such State.
``(B) Annual increase.--For purposes of
subparagraph (A), in the case of a State with respect
to which such subparagraph applies with respect to a
period of consecutive quarters occurring during more
than one calendar year, for such consecutive quarters
occurring during the second of such calendar years or a
subsequent calendar year, the average monthly per
capita costs for each such quarter for such State
determined under subparagraph (A)(i), or this
subparagraph, shall be annually increased by the
Secretary by the percentage increase in Medicaid
spending under this title during the preceding year (as
determined based on the most recent National Health
Expenditure data with respect to such year).
``(2) Form and manner of payment.--Payment under paragraph
(1) shall be made in a form and manner specified by the
Secretary.
``(3) Compliance.--If a State fails to pay to the Secretary
an amount required under paragraph (1), interest shall accrue
on such amount at the rate provided under section 1903(d)(5).
The amount so owed and applicable interest shall be immediately
offset against amounts otherwise payable to the State under
section 1903(a), in accordance with the Federal Claims
Collection Act of 1996 and applicable regulations.
``(4) Data match.--The Secretary shall perform such
periodic data matches as may be necessary to identify and
compute the number of individuals enrolled under the Federal
Medicaid program under section 1948 in a coverage gap State (as
referenced in subsection (a) of such section) for purposes of
computing the amount under paragraph (1).
``(5) Notice.--The Secretary shall notify each State
described in paragraph (1) not later than a date specified by
the Secretary that is before the beginning of each quarter
(beginning with 2022) of the amount computed under paragraph
(1) for the State for that year.
``(j) Appropriations.--In addition to amounts otherwise available,
there is appropriated, out of any funds in the Treasury not otherwise
appropriated, for each fiscal year such sums as are necessary to carry
out subsections (a) through (i) of this section.''.
(b) Drug Rebate Conforming Amendment.--Section 1927(a)(1) of the
Social Security Act (42 U.S.C. 1396r-8(a)(1)) is amended in the first
sentence--
(1) by striking ``or under part B of title XVIII'' and
inserting ``, under the Federal Medicaid program under section
1948, or under part B of title XVIII''; and
(2) by inserting ``including as such subsection is applied
pursuant to subsections (a)(2)(C) and (d) of section 1948 with
respect to the Federal Medicaid program,'' before ``and must
meet''.
PART 2--EXPANDING ACCESS TO MEDICAID HOME AND COMMUNITY-BASED SERVICES
SEC. 30711. DEFINITIONS.
In this part:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means the Committee on
Energy and Commerce of the House of Representatives, the
Committee on Finance of the Senate, the Committee on Health,
Education, Labor and Pensions of the Senate, and the Special
Committee on Aging of the Senate.
(2) Direct care worker.--The term ``direct care worker''
means, with respect to a State, any of the following
individuals who by contract, by receipt of payment for care, or
as a result of the operation of law, provides directly to
Medicaid eligible individuals home and community-based services
available under the State Medicaid program:
(A) A registered nurse, licensed practical nurse,
nurse practitioner, or clinical nurse specialist who
provides licensed nursing services, or a licensed
nursing assistant who provides such services under the
supervision of a registered nurse, licensed practical
nurse, nurse practitioner, or clinical nurse
specialist.
(B) A direct support professional.
(C) A personal care attendant.
(D) A home health aide.
(E) Any other paid health care professional or
worker determined to be appropriate by the State and
approved by the Secretary.
(3) HCBS program improvement state.--The term ``HCBS
program improvement State'' means a State that is awarded a
planning grant under section 1011(a) and has an HCBS
improvement plan approved by the Secretary under section
1011(d).
(4) Health plan.--The term ``health plan'' means any of the
following entities that provide or arrange for home and
community-based services for Medicaid eligible individuals who
are enrolled with the entities under a contract with a State:
(A) A medicaid managed care organization, as
defined in section 1903(m)(1)(A) of the Social Security
Act (42 U.S.C. 1396b(m)(1)(A)).
(B) A prepaid inpatient health plan or prepaid
ambulatory health plan, as defined in section 438.2 of
title 42, Code of Federal Regulations (or any successor
regulation)).
(C) Any other entity determined to be appropriate
by the State and approved by the Secretary.
(5) Home and community-based services.--The term ``home and
community-based services'' means any of the following (whether
provided on a fee-for-service, risk, or other basis):
(A) Home health care services authorized under
paragraph (7) of section 1905(a) of the Social Security
Act (42 U.S.C. 1396d(a)).
(B) Private duty nursing services authorized under
paragraph (8) of such section, when such services are
provided in a Medicaid eligible individual's home.
(C) Personal care services authorized under
paragraph (24) of such section.
(D) PACE services authorized under paragraph (26)
of such section.
(E) Home and community-based services authorized
under subsections (b), (c), (i), (j), and (k) of
section 1915 of such Act (42 U.S.C. 1396n), authorized
under a waiver under section 1115 of such Act (42
U.S.C. 1315), or provided through coverage authorized
under section 1937 of such Act (42 U.S.C. 1396u-7).
(F) Case management services authorized under
section 1905(a)(19) of the Social Security Act (42
U.S.C. 1396d(a)(19)) and section 1915(g) of such Act
(42 U.S.C. 1396n(g)).
(G) Rehabilitative services, including those
related to behavioral health, described in section
1905(a)(13) of such Act (42 U.S.C. 1396d(a)(13)).
(H) Self-directed personal assistance services
authorized under section 1915(j) of the Social Security
Act (42 U.S.C. 1396n(j)).
(I) School-based services when the school is the
location for provision of services if the services
are--
(i) authorized under section 1905(a) of
such Act (42 U.S.C. 1396d(a)) (or under a
waiver under section 1915(c) or demonstration
under section 1115) ; and
(ii) described in another subparagraph of
this paragraph.
(J) Such other services specified by the Secretary.
(6) Institutional setting.--The term ``institutional
setting'' means--
(A) a skilled nursing facility (as defined in
section 1819(a) of the Social Security Act (42 U.S.C.
1395i-3(a)));
(B) a nursing facility (as defined in section
1919(a) of such Act (42 U.S.C. 1396r(a)));
(C) a long-term care hospital (as described in
section 1886(d)(1)(B)(iv) of such Act (42 U.S.C.
1395ww(d)(1)(B)(iv)));
(D) a facility (or distinct part thereof) described
in section 1905(d) of such Act (42 U.S.C. 1396d(d)));
(E) an institution (or distinct part thereof) which
is a psychiatric hospital (as defined in section
1861(f) of such Act (42 U.S.C. 1395x(f))) or that
provides inpatient psychiatric services in a
residential setting specified by the Secretary;
(F) an institution (or distinct part thereof)
described in section 1905(i) of such Act (42 U.S.C.
1396d(i)); and
(G) any other relevant facility, as determined by
the Secretary.
(7) Medicaid eligible individual.--The term ``Medicaid
eligible individual'' means an individual who is eligible for
and receiving medical assistance under a State Medicaid plan or
a waiver such plan. Such term includes an individual who would
become eligible for medical assistance and enrolled under a
State Medicaid plan, or waiver of such plan, upon removal from
a waiting list.
(8) State medicaid program.--The term ``State Medicaid
program'' means, with respect to a State, the State program
under title XIX of the Social Security Act (42 U.S.C. 1396 et
seq.) (including any waiver or demonstration under such title
or under section 1115 of such Act (42 U.S.C. 1315) relating to
such title).
(9) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(10) State.--The term ``State'' means each of the 50
States, the District of Columbia, Puerto Rico, the Virgin
Islands, Guam, the Northern Mariana Islands, and American
Samoa.
SEC. 30712. HCBS IMPROVEMENT PLANNING GRANTS.
(a) Funding.--
(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $130,000,000, to remain available until expended,
for carrying out this section.
(2) Technical assistance and guidance.--The Secretary shall
reserve $5,000,000 of the amount appropriated under paragraph
(1) for purposes of issuing guidance and providing technical
assistance to States intending to apply for, or awarded, a
planning grant under this section, and for other administrative
expenses related to awarding planning grants under this
section.
(b) Award and Use of Grants.--
(1) Deadline for award of grants.--From the amount
appropriated under subsection (a)(1), the Secretary, not later
than 12 months after the date of enactment of this Act, shall
solicit State requests for HCBS improvement planning grants and
award such grants to all States that meet such requirements as
determined by the Secretary.
(2) Criteria for determining amount of grants.--The
Secretary shall take into account the improvements a State
would propose to make, consistent with the areas of focus of
the HCBS improvement plan requirements described under
subsection (c) in determining the amount of the planning grant
to be awarded to each State that requests such a grant.
(3) Use of funds.--A State awarded a planning grant under
this section shall use the grant to carry out planning
activities for purposes of developing and submitting to the
Secretary an HCBS improvement plan for the State that meets the
requirements of subsections (c) and (d) in order to expand
access to home and community-based services and strengthen the
direct care workforce that provides such services. A State may
use planning grant funds to support activities related to the
implementation of the HCBS improvement plan for the State,
collect and report information described in subsection (c),
identify areas for improvement to the service delivery systems
for home and community-based services, carry out activities
related to evaluating payment rates for home and community-
based services and identifying improvements to update the rate
setting process, and for such other purposes as the Secretary
shall specify, including the following:
(A) Caregiver supports.
(B) Addressing social determinants of health (other
than housing or homelessness).
(C) Promoting equity and addressing health
disparities.
(D) Promoting community integration and compliance
with the home and community-based settings rule
published on January 16, 2014, or any successor
regulation.
(E) Building partnerships.
(F) Infrastructure investments (such as case
management or other information technology systems).
(c) HCBS Improvement Plan Requirements.--In order to meet the
requirements of this subsection, an HCBS improvement plan developed
using funds awarded to a State under this section shall include, with
respect to the State and subject to subsection (d), the following:
(1) Existing medicaid hcbs landscape.--
(A) Eligibility and benefits.--A description of the
existing standards, pathways, and methodologies for
eligibility (which shall be delineated by the State
based on eligibility group under the State plan or
waiver of such plan) for home and community-based
services, including limits on assets and income, the
home and community-based services available under the
State Medicaid program and the types of settings in
which they may be provided, and utilization management
standards for such services.
(B) Access.--
(i) Barriers.--A description of the
barriers to accessing home and community-based
services in the State identified by Medicaid
eligible individuals, the families of such
individuals, and providers of such services,
such as barriers for individuals who wish to
leave institutional settings, individuals
experiencing homelessness or housing
instability, and individuals in geographical
areas of the State with low or no access to
such services.
(ii) Availability; unmet need.--A summary,
in accordance with guidance issued by the
Secretary, of the extent to which home and
community-based services are available to all
individuals in the State who would be eligible
for such services under the State Medicaid
program (including individuals who are on a
waitlist for such services).
(C) Utilization.--An assessment of the utilization
of home and community-based services in the State
during such period specified by the Secretary.
(D) Service delivery structures and supports.--A
description of the service delivery structures for
providing home and community-based services in the
State, including whether models of self-direction are
used and to which Medicaid eligible individuals such
models are available, the share of total services that
are administered by agencies, the use of managed care
and fee-for-service to provide such services, and the
supports provided for family caregivers.
(E) Workforce.--A description of the direct care
workforce that provides home and community-based
services, including estimates (and a description of the
methodology used to develop such estimates) of the
number of full- and part-time direct care workers, the
average and range of direct care worker wages, the
benefits provided to direct care workers, the turnover
and vacancy rates of direct care worker positions, the
membership of direct care workers in labor
organizations and, to the extent the State has access
to such data, demographic information about such
workforce, including information on race, ethnicity,
and gender.
(F) Payment rates.--
(i) In general.--A description of the
payment rates for home and community-based
services, including, to the extent applicable,
how payments for such services are factored
into the development of managed care capitation
rates, and when the State last updated payment
rates for home and community-based services,
and the extent to which payment rates are
passed through to direct care worker wages.
(ii) Assessment.--An assessment of the
relationship between payment rates for such
services and average beneficiary wait times for
such services, provider-to-beneficiary ratios
in the geographic region.
(G) Quality.--A description of how the quality of
home and community-based services is measured and
monitored.
(H) Long-term services and supports provided in
institutional settings.--A description of the number of
individuals enrolled in the State Medicaid program who
receive items and services for greater than 30 days in
an institutional setting that is a nursing facility or
intermediate care facility, and the demographic
information of such individuals who are provided such
items and services in such settings.
(I) HCBS share of overall medicaid ltss spending.--
For the most recent State fiscal year for which
complete data is available, the percentage of
expenditures made by the State under the State Medicaid
program for long-term services and supports that are
for home and community-based services.
(J) Demographic data.--To the extent available and
as applicable with respect to the information required
under subparagraphs (B),(C), and (H), demographic data
for such information, disaggregated by age groups,
primary disability, income brackets, gender, race,
ethnicity, geography, primary language, and type of
service setting.
(2) Goals for hcbs improvements.--A description of how the
State will do the following:
(A) Conduct the activities required under
subsection (jj) of section 1905 of the Social Security
Act(as added under section 30713).
(B) Reduce barriers and disparities in access or
utilization of home and community-based services in the
State.
(C) Monitor and report (with supporting data to the
extent available and applicable disaggregated by age
groups, primary disability, income brackets, gender,
race, ethnicity, geography, primary language, and type
of service setting, on--
(i) access to home and community-based
services under the State Medicaid program,
disparities in access to such services, and the
utilization of such services; and
(ii) the amount of State Medicaid
expenditures for home and community-based
services under the State Medicaid program as a
proportion of the total amount of State
expenditures under the State Medicaid program
for long-term services and supports.
(D) Monitor and report on wages, benefits, and
vacancy and turnover rates for direct care workers.
(E) Assess and monitor the sufficiency of payments
under the State Medicaid program for the specific types
of home and community-based services available under
such program for purposes of supporting direct care
worker recruitment and retention and ensuring the
availability of home and community-based services.
(F) Coordinate implementation of the HCBS
improvement plan among the State Medicaid agency,
agencies serving individuals with disabilities,
agencies serving the elderly, and other relevant State
and local agencies and organizations that provide
related supports, such as those for housing,
transportation, employment, and other services and
supports.
(d) Development and Approval Requirements.--
(1) Development requirements.--In order to meet the
requirements of this subsection, a State awarded a planning
grant under this section shall develop an HCBS improvement plan
for the State with input from stakeholders through a public
notice and comment process that includes consultation with
Medicaid eligible individuals who are recipients of home and
community-based services, family caregivers of such recipients,
providers, health plans, direct care workers, chosen
representatives of direct care workers, and aging, disability,
and workforce advocates.
(2) Authority to adjust certain plan content
requirements.--The Secretary may modify the requirements for
any of the information specified in subsection (c)(1) if a
State requests a modification and demonstrates to the
satisfaction of the Secretary that it is impracticable for the
State to collect and submit the information.
(3) Submission and approval.--Not later than 24 months
after the date on which a State is awarded a planning grant
under this section, the State shall submit an HCBS improvement
plan for approval by the Secretary, along with assurances by
the State that the State will implement the plan in accordance
with the requirements of the HCBS Improvement Program
established under subsection (jj) of section 1905 of the Social
Security Act (42 U.S.C. 1396d) (as added by section 30713). The
Secretary shall approve and make publicly available the HCBS
improvement plan for a State after the plan and such assurances
are submitted to the Secretary for approval and the Secretary
determines the plan meets the requirements of subsection (c). A
State may amend its HCBS improvement plan, subject to the
approval of the Secretary that the plan as so amended meets the
requirements of subsection (c). The Secretary may withhold or
recoup funds provided under this section to a State or pursuant
to section 1905(jj) of the Social Security Act, as added by
section 30713, if the State fails to implement the HCBS
improvement plan of the State or meet applicable deadlines
under this section.
SEC. 30713. HCBS IMPROVEMENT PROGRAM.
(a) Increased FMAP for HCBS Program Improvement States.--Section
1905 of the Social Security Act (42 U.S.C. 1396d) is amended--
(1) in subsection (b), by striking ``and (ii)'' and
inserting ``(ii), and (jj)''; and
(2) by adding at the end the following new subsection:
``(jj) Additional Support for HCBS Program Improvement States.--
``(1) In general.--
``(A) Additional support.--Subject to paragraph
(5), in the case of a State that is an HCBS program
improvement State, for each fiscal quarter that begins
on or after the first date on which the State is an
HCBS program improvement State--
``(i) and for which the State meets the
requirements described in paragraphs (2) and
(4), notwithstanding subsection (b) or (ff),
subject to subparagraph (B), with respect to
amounts expended during the quarter by such
State for medical assistance for home and
community-based services, the Federal medical
assistance percentage for such State and
quarter (as determined for the State under
subsection (b) and, if applicable, increased
under subsection (y), (z), (aa), or (ii), or
section 6008(a) of the Families First
Coronavirus Response Act) shall be increased by
7 percentage points; and
``(ii) with respect to the State meeting
the requirements described in paragraphs (2)
and (4), notwithstanding section 1903(a)(7),
1903(a)(3)(F), and 1903(t), with respect to
amounts expended during the quarter and before
October 1, 2031, for administrative costs for
expanding and enhancing home and community-
based services, including for enhancing
Medicaid data and technology infrastructure,
modifying rate setting processes, adopting or
improving training programs for direct care
workers and family caregivers, and adopting,
carrying out, or enhancing programs that
register direct care workers or connect
beneficiaries to direct care workers, the per
centum specified in such section shall be
increased to 80 percent.
In no case may the application of clause (i) result in
the Federal medical assistance percentage determined
for a State being more than 95 percent with respect to
such expenditures. In no case shall the application of
clause (ii) result in a reduction to the per centum
otherwise specified without application of such clause.
Any increase pursuant to clause (ii) shall be available
to a State before the State meets the requirements of
paragraphs (2) and (4).
``(B) Additional hcbs improvement efforts.--Subject
to paragraph (5), in addition to the increase to the
Federal medical assistance percentage under
subparagraph (A)(i) for amounts expended during a
quarter for medical assistance for home and community-
based services by an HCBS program improvement State
that meets the requirements of paragraphs (2) and (4)
for the quarter, the Federal medical assistance
percentage for amounts expended by the State during the
quarter for medical assistance for home and community-
based services shall be further increased by 2
percentage points (but not to exceed 95 percent) during
the first 8 fiscal quarters throughout which the State
has implemented and has in effect a program to support
self-directed care that meets the requirements of
paragraph (3).
``(C) Nonapplication of territorial funding caps.--
Any payment made to Puerto Rico, the Virgin Islands,
Guam, the Northern Mariana Islands, or American Samoa
for expenditures that are subject to an increase in the
Federal medical assistance percentage under
subparagraph (A)(i) or (B), or an increase in an
applicable Federal matching percentage under
subparagraph (A)(ii), shall not be taken into account
for purposes of applying payment limits under
subsections (f) and (g) of section 1108.
``(D) Nonapplication to chip efmap.--Any increase
described in subparagraph (A) (or payment made for
expenditures on medical assistance that are subject to
such increase) shall not be taken into account in
calculating the enhanced FMAP of a State under section
2105.
``(2) Requirements.--As conditions for receipt of the
increase under paragraph (1) to the Federal medical assistance
percentage determined for a State, with respect to a fiscal
year quarter, the State shall meet each of the following
requirements:
``(A) Nonsupplantation.--The State uses the Federal
funds attributable to the increase in the Federal
medical assistance percentage for amounts expended
during a quarter for medical assistance for home and
community-based services under subparagraphs (A) and,
if applicable, (B) of paragraph (1) to supplement, and
not supplant, the level of State funds expended for
home and community-based services for eligible
individuals through programs in effect as of the date
the State is awarded a planning grant under section
30712 of the Act titled `An Act to provide for
reconciliation pursuant to title II of S. Con. Res.
14'. In applying this subparagraph, the Secretary shall
provide that a State shall have a 3-year period to
spend any accumulated unspent State funds attributable
to the increase described in clause (i) in the Federal
medical assistance percentage.
``(B) Maintenance of effort.--
``(i) In general.--The State does not--
``(I) reduce the amount, duration,
or scope of home and community-based
services available under the State plan
or waiver (relative to the home and
community-based services available
under the plan or waiver as of the date
on which the State was awarded a
planning grant under section 30712 of
the Act titled `An Act to provide for
reconciliation pursuant to title II of
S. Con. Res. 14';
``(II) reduce payment rates for
home and community-based services lower
than such rates that were in place as
of the date described in subclause (I),
including, to the extent applicable,
payment rates for such services that
are included in managed care capitation
rates; or
``(III) except to the extent
permitted under clause (ii), adopt more
restrictive standards, methodologies,
or procedures for determining
eligibility, benefits, or services for
receipt of home and community-based
services, including with respect to
cost-sharing, than the standards,
methodologies, or procedures applicable
as of such date.
``(ii) Flexibility to support innovative
models.--A State may make modifications that
would otherwise violate the maintenance of
effort described in clause (i) if the State
demonstrates to the satisfaction of the
Secretary that such modifications shall not
result in--
``(I) home and community-based
services that are less comprehensive or
lower in amount, duration, or scope;
``(II) fewer individuals (overall
and within particular eligibility
groups and categories) receiving home
and community-based services; or
``(III) increased cost-sharing for
home and community-based services.
``(C) Access to services.--Not later than an
implementation date as specified by the Secretary after
the first day of the first fiscal quarter for which a
State receives an increase to the Federal medical
assistance percentage or other applicable Federal
matching percentage under paragraph (1), the State does
all of the following to improve access to services:
``(i) Reduce access barriers and
disparities in access or utilization of home
and community-based services, as described in
the State HCBS improvement plan.
``(ii) Provides coverage of personal care
services authorized under subsection (a)(24)
for all individuals eligible for medical
assistance in the State.
``(iii) Provides for navigation of home and
community-based services through `no wrong
door' programs, provides expedited eligibility
for home and community-based services, and
improves home and community-based services
counseling and education programs.
``(iv) Expands access to behavioral health
services as defined in the State's HCBS
improvement plan.
``(v) Improves coordination of home and
community-based services with employment,
housing, and transportation supports.
``(vi) Provides supports to family
caregivers, such as respite care, caregiver
assessments, peer supports, or paid family
caregiving.
``(vii) Adopts, expands eligibility for, or
expands covered items and services provided
under 1 or more eligibility categories
authorized under subclause (XIII), (XV), or
(XVI) of section 1902(a)(10)(A)(ii).
``(D) Strengthened and expanded workforce.--
``(i) In general.--The State strengthens
and expands the direct care workforce that
provides home and community-based services by--
``(I) adopting processes to ensure
that payments for home and community-
based services are sufficient to ensure
that care and services are available to
the extent described in the State HCBS
improvement plan; and
``(II) updating qualification
standards (as appropriate), and
developing and adopting training
opportunities, for the continuum of
providers of home and community-based
services, including programs for
independent providers of such services
and agency direct care workers, as well
as unique programs and resources for
family caregivers.
``(ii) Payment rates.--In carrying out
clause (i)(I), the State shall--
``(I) update and increase, as
appropriate, payment rates for delivery
of home and community-based services to
support the recruitment and retention
of the direct care workforce;
``(II) review and, if necessary to
ensure sufficient access to care,
increase payment rates for home and
community-based services, not less
frequently than once every 3 years,
through a transparent process involving
meaningful input from stakeholders,
including recipients of home and
community-based services, family
caregivers of such recipients,
providers, health plans, direct care
workers, chosen representatives of
direct care workers, and aging,
disability, and workforce advocates;
and
``(III) ensure that increases in
the payment rates for home and
community-based services--
``(aa) at a minimum,
results in a proportionate
increase to payments for direct
care workers and in a manner
that is determined with input
from the stakeholders described
in subclause (II); and
``(bb) incorporate into
provider payment rates for home
and community-based services
provided under this title by a
managed care entity (as defined
in section 1932(a)(1)(B)) a
prepaid inpatient health plan
or prepaid ambulatory health
plan, as defined in section
438.2 of title 42, Code of
Federal Regulations (or any
successor regulation)), under a
contract and paid through
capitation rates with the
State.
``(3) Self-directed models for the delivery of services.--
As conditions for receipt of the increase under paragraph
(1)(B) to the Federal medical assistance percentage determined
for a State, with respect to a fiscal year quarter, the State
shall establish directly, or by contract with 1 or more non-
profit entities, including an agency with choice or a similar
service delivery model, a program for the performance of all of
the following functions:
``(A) Registering qualified direct care workers and
assisting beneficiaries in finding direct care workers.
``(B) Undertaking activities to recruit and train
independent providers to enable beneficiaries to direct
their own care, including by providing or coordinating
training for beneficiaries on self-directed care.
``(C) Ensuring the safety of, and supporting the
quality of, care provided to beneficiaries, such as by
conducting background checks and addressing complaints
reported by recipients of home and community-based
services consistent with Fair Hearing requirements and
prior notice of service reductions, including under
subpart F of part 438 of title 42, Code of Federal
Regulations and section 438.71(d) of such title.
``(D) Facilitating coordination between State and
local agencies and direct care workers for matters of
public health, training opportunities, changes in
program requirements, workplace health and safety, or
related matters.
``(E) Supporting beneficiary hiring, if selected by
the beneficiary, of independent providers of home and
community-based services, including by processing
applicable tax information, collecting and processing
timesheets, submitting claims and processing payments
to such providers.
``(F) To the extent a State permits beneficiaries
to hire a family member or individual with whom they
have an existing relationship to provide home and
community-based service, providing support to
beneficiaries who wish to hire a caregiver who is a
family member or individual with whom they have an
existing relationship, such as by facilitating
enrollment of such family member or individual as a
provider of home and community-based services under the
State plan or a waiver of such plan.
``(G) Ensuring that such programs do not
discriminate against labor organizations or workers who
may join or decline to join a labor organization.
``(4) Reporting and oversight.--As conditions for receipt
of the increase under paragraph (1) to the Federal medical
assistance percentage determined for a State, with respect to a
fiscal year quarter, the State shall meet each of the following
requirements:
``(A) The State designates (by a date specified by
the Secretary) an HCBS ombudsman office that--
``(i) operates independently from the State
Medicaid agency and managed care entities;
``(ii) provides direct assistance to
recipients of home and community-based services
available under the State Medicaid program and
their families; and
``(iii) identifies and reports systemic
problems to State officials, the public, and
the Secretary.
``(B) Beginning with the 5th fiscal quarter for
which the State is an HCBS program improvement State,
and annually thereafter, the State reports to the
Secretary on the state (as of the last quarter before
the report) of the components of the home and
community-based services landscape described in the
State HCBS improvement plan, including with respect
to--
``(i) the availability and utilization of
home and community-based services,
disaggregated (to the extent available and as
applicable) by age groups, primary disability,
income brackets, gender, race, ethnicity,
geography, primary language, and type of
service setting;
``(ii) wages, benefits, turnover and
vacancy rates for the direct care workforce;
``(iii) changes in payment rates for home
and community-based services;
``(iv) implementation of the activities to
strengthen and expand access to home and
community-based services and the direct care
workforce that provides such services in
accordance with the requirements of
subparagraphs (C) and (D) of paragraph (2);
``(v) if applicable, implementation of the
activities described in paragraph (3);
``(vi) State expenditures for home and
community-based services under the State plan
or a waiver of such plan as a proportion of the
total amount of State expenditures under the
plan or waiver of such plan for long-term
services and supports; and
``(vii) the challenges in, and best
practices for, expanding access to home and
community-based services, reducing disparities,
and supporting and expanding the direct care
workforce.
``(5) Benchmarks for demonstrating improvements.--An HCBS
program improvement State shall cease to be eligible for an
increase in the Federal medical assistance percentage under
paragraph (1)(A)(i) or (1)(B) or an increase in an applicable
Federal matching percentage under paragraph (1)(A)(ii) at any
time or beginning with the 29th fiscal quarter that begins on
or after the first date on which a State is an HCBS program
improvement State if the State is found to be out of compliance
with paragraph (2)(B) or any other requirement of this
subsection and, beginning with such 29th fiscal quarter,
unless, not later than 90 days before the first day of such
fiscal quarter, the State submits to the Secretary a report
demonstrating the following improvements:
``(A) Increased availability (above a marginal
increase) of home and community-based services in the
State relative to such availability as reported in the
State HCBS improvement plan and adjusted for
demographic changes in the State since the submission
of such plan.
``(B) Reduced disparities in the utilization and
availability of home and community-based services
relative to the availability and utilization of such
services by such populations as reported in such plan
according to age groups, primary disability, income
brackets, gender, race, ethnicity, geography, primary
language, and type of service setting (to the extent
available and applicable), and adjusted for demographic
changes in the State since the submission of such plan.
``(C) Evidence that rates are sufficient to ensure
access to items and services for individuals eligible
for HCBS in such State.
``(D) With respect to the percentage of
expenditures made by the State for long-term services
and supports that are for home and community-based
services, in the case of an HCBS program improvement
State for which such percentage (as reported in the
State HCBS improvement plan) was--
``(i) less than 50 percent, the State
demonstrates that the percentage of such
expenditures has increased to at least 50
percent since the plan was approved; and
``(ii) at least 50 percent, the State
demonstrates that such percentage has not
decreased since the plan was approved.
``(6) Definitions.--In this subsection, the terms `State
Medicaid plan', `direct care worker', `HCBS program improvement
State', and `home and community-based services' have the
meaning given those terms in section 30711 of the Act titled
`An Act to provide for reconciliation pursuant to title II of
S. Con. Res. 14'.''.
SEC. 30714. FUNDING FOR TECHNICAL ASSISTANCE AND OTHER ADMINISTRATIVE
REQUIREMENTS RELATED TO MEDICAID HCBS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $35,000,000, to remain
available until expended, to carry out the following activities:
(1) To prepare and submit to the appropriate committees of
Congress--
(A) not later than 4 years after the date of
enactment of this Act, a report that includes--
(i) a description of the HCBS improvement
plans approved by the Secretary under section
30712(d);
(ii) a description (which may be a
narrative report with examples or otherwise) of
the landscape, at both the national and State
levels, with respect to gaps in coverage of
home and community-based services, disparities
in access to, and utilization of, such
services, and barriers to accessing such
services; and
(iii) a description of the national
landscape with respect to the direct care
workforce that provides home and community-
based services, including with respect to
wages, benefits, and challenges to the
availability of such workers; and
(B) not later than 7 years after the date of
enactment of this Act, and every 3 years thereafter, a
report that includes--
(i) the number of HCBS program improvement
States;
(ii) a summary of the progress being made
by such States with respect to strengthening
and expanding access to home and community-
based services and the direct care workforce
that provides such services and meeting the
benchmarks for demonstrating improvements
required under section 1905(jj)(5) of the
Social Security Act (as added by section
30713);
(iii) a summary of States' performance
measures as a part of the home and community-
based services core quality measures and
beneficiary and family caregiver surveys; and
(iv) a summary of the challenges and best
practices reported by States in expanding
access to home and community-based services and
supporting and expanding the direct care
workforce that provides such services.
(2) To provide HCBS program improvement States with
technical assistance related to carrying out the HCBS
improvement plans approved by the Secretary under section
30712(d) and meeting the requirements and benchmarks for
demonstrating improvements required under section 1905(jj) of
the Social Security Act (as added by section 30713), and to
issue such guidance or regulations as necessary to carry out
this subtitle and the amendments made by this subtitle,
including guidance specifying how States shall assess and track
access to home and community-based services over time.
SEC. 30715. FUNDING FOR HCBS QUALITY MEASUREMENT AND IMPROVEMENT.
(a) In General.--Title XI of the Social Security Act (42 U.S.C.
1301 et seq.) is amended--
(1) in section 1139A--
(A) in subsection (a)(4)(B)--
(i) by striking ``Beginning with the annual
State report on fiscal year 2024'' and
inserting the following:
``(i) In general.--Subject to clause (ii),
beginning with the annual State report on
fiscal year 2024''; and
(ii) by adding at the end the following new
clause:
``(ii) Reporting hcbs quality measures.--
With respect to reporting on information
regarding the quality of home and community-
based services provided to children under title
XIX, beginning with the annual State report for
the first fiscal year that begins on or after
the date that is 2 years after the date that
the Secretary publishes the home and community-
based services quality measures developed under
subsection (b)(5)(B) the Secretary shall
require States to report such information using
the standardized format for reporting
information and procedures developed under
subparagraph (A) and using such home and
community-based quality measures developed
under subsection (b)(5) (including any updates
or changes to such measures).''; and
(B) in subsection (b)(5)--
(i) by striking ``Beginning no later than
January 1, 2013'' and inserting the following:
``(A) In general.--Beginning no later than January
1, 2013''; and
(ii) by adding at the end the following new
subparagraph:
``(B) HCBS quality measures.--Beginning with the
first year that begins on the date that is 2 years
after the date of enactment of this subparagraph, the
core measures described in subsection (a) (and any
updates or changes to such measures) shall include home
and community-based services quality measures developed
by the Secretary in the manner described in section
1139B(b)(5)(D). The Secretary may determine which
measures are to be included in the core set under this
section and which in the core set under section 1139B,
based on the differences in health care needs for the
relevant populations.''; and
(2) in section 1139B--
(A) in subsection (b)--
(i) in paragraph (3), by adding at the end
the following new subparagraph:
``(C) Mandatory reporting with respect to hcbs
quality measures.--Beginning with the State report
required under subsection (d)(1) for the first year
that begins on or after the date that is 2 years after
the date that the Secretary publishes the home and
community-based quality measures developed under
paragraph (5)(D), the Secretary shall require States to
report information, using the standardized format for
reporting information and procedures developed under
subparagraph (A), regarding the quality of home and
community-based services for Medicaid eligible adults
using either--
``(i) the home and community-based services
quality measures included in the core set of
adult health quality measures under
subparagraph (D), and any updates or changes to
such measures; or
``(ii) an equivalent alternative set of
home and community-based services quality
measures approved by the Secretary.''; and
(ii) in paragraph (5), by adding at the end
the following new subparagraph:
``(D) HCBS quality measures.--
``(i) In general.--Beginning with respect
to State reports required under subsection
(d)(1) for the first year that begins on or
after the date that is 2 years after the date
of enactment of this subparagraph, the core set
of adult health quality measures maintained
under this paragraph (and any updates or
changes to such measures) shall include home
and community-based services quality measures
developed in accordance with this subparagraph.
``(ii) Requirements.--
``(I) Interagency collaboration;
stakeholder input.--In developing (and
subsequently reviewing and updating)
the home and community-based services
quality measures included in the core
set of adult health quality measures
maintained under this paragraph, the
Secretary shall--
``(aa) collaborate with the
Administrator of the Centers
for Medicare & Medicaid
Services, the Administrator of
the Administration for
Community Living, the Director
of the Agency for Healthcare
Research and Quality, and the
Assistant Secretary for Mental
Health and Substance Use; and
``(bb) ensure that such
home and community-based
services quality measures are
informed by input from
stakeholders, including
recipients of home and
community-based services,
family caregivers of such
recipients, providers, health
plans, direct care workers,
chosen representatives of
direct care workers, and aging,
disability, and workforce
advocates.
``(II) Reflective of full array of
services.--Such home and community-
based services quality measures shall--
``(aa) reflect the full
array of home and community-
based services and recipients
of such services; and
``(bb) include--
``(AA) outcomes-
based measures;
``(BB) measures of
availability of
services;
``(CC) measures of
provider capacity and
availability;
``(DD) measures
related to person-
centered care;
``(EE) measures
specific to self-
directed care;
``(FF) measures
related to transitions
to and from
institutional care; and
``(GG) beneficiary
and family caregiver
surveys.
``(III) Demographics.--Such home
and community-based services quality
measures shall allow for the
collection, to the extent available, of
data that is disaggregated by age
groups, primary disability, income
brackets, gender, race, ethnicity,
geography, primary language, and type
of service setting.
``(IV) Definitions.--For purposes
of this section and section 1139A, the
terms `home and community-based
services', `health plan'; and `direct
care worker' have the meanings given
those terms in section 30711 of the Act
titled `An Act to provide for
reconciliation pursuant to title II of
S. Con. Res. 14'.
``(iii) Funding.--In addition to amounts
otherwise available, there is appropriated to
the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise
appropriated, $5,000,000, to remain available
until expended, for carrying out this
subparagraph.''; and
(B) in subsection (d)(1)(A), by striking ``; and''
and inserting ``and, beginning with the report for the
first year that begins after the date that is 2 years
after the Secretary publishes the home and community-
based quality measures developed under subsection
(b)(5)(D), home and community-based services quality
measures included in the core set of adult health
quality measures maintained under subsection (b)(5) and
any updates or changes to such measures or an
equivalent alternative set of home and community-based
services quality measures approved by the Secretary;
and''.
(b) Increased Federal Matching Rate for Adoption and Reporting.--
(1) In general.--Section 1903(a)(3) of the Social Security
Act (42 U.S.C. 1396b(a)(3)) is amended--
(A) in subparagraph (F)(ii), by striking ``plus''
after the semicolon and inserting ``and''; and
(B) by inserting after subparagraph (F), the
following:
``(G) 80 percent of so much of the sums expended
during such quarter as are attributable to the
reporting of information regarding the quality of home
and community-based services in accordance with
sections 1139A(a)(4)(B)(ii) and 1139B(b)(3)(C); and''.
(2) Exemption from territories' payment limits.--Section
1108(g)(4) of the Social Security Act is amended by adding at
the end the following new subparagraph:
``(C) Additional exemption relating to hcbs quality
reporting.--Payments under section 1903(a)(3)(G) shall
not be taken into account in applying payment limits
under subsection (f) and this subsection.''.
PART 3--OTHER MEDICAID
SEC. 30721. PERMANENT EXTENSION OF MEDICAID PROTECTIONS AGAINST SPOUSAL
IMPOVERISHMENT FOR RECIPIENTS OF HOME AND COMMUNITY-BASED
SERVICES.
Section 1924(h)(1)(A) of the Social Security Act (42 U.S.C. 1396r-
5(h)(1)(A)) is amended by striking ``(at the option of the State) is
described in section 1902(a)(10)(A)(ii)(VI)'' and inserting the
following: ``is eligible for medical assistance for home and community-
based services provided under subsection (c), (d), or (i) of section
1915 or under a waiver approved under section 1115, or who is eligible
for such medical assistance by reason of being determined eligible
under section 1902(a)(10)(C) or by reason of section 1902(f) or
otherwise on the basis of a reduction of income based on costs incurred
for medical or other remedial care, or who is eligible for medical
assistance for home and community-based attendant services and supports
under section 1915(k)''.
SEC. 30722. PERMANENT EXTENSION OF MONEY FOLLOWS THE PERSON REBALANCING
DEMONSTRATION.
(a) In General.--Subsection (h) of section 6071 of the Deficit
Reduction Act of 2005 (42 U.S.C. 1396a note) is amended--
(1) in paragraph (1)--
(A) in subparagraph (I), by inserting ``and'' after
the semicolon;
(B) by amending subparagraph (J) to read as
follows:
``(J) $450,000,000 for each fiscal year after
fiscal year 2021.''; and
(C) by striking subparagraph (K);
(2) in paragraph (2), by striking ``September 30, 2023''
and inserting ``September 30 of the subsequent fiscal year'';
and
(3) by adding at the end the following new paragraph:
``(3) Technical assistance.--Out of the amounts made
available under paragraph (1), for the 3-year period beginning
with fiscal year 2022 and for each subsequent 3-year period,
$5,000,000 shall be made available for carrying out subsection
(f) and (i).''.
(b) Redistribution of Unexpended Grant Awards.--Subsection (e)(2)
of section 6071 of the Deficit Reduction Act of 2005 (42 U.S.C. 1396a
note) is amended by adding at the end the following new sentence: ``Any
portion of a State grant award for a fiscal year under this section
that is unexpended by the State at the end of the fourth succeeding
fiscal year shall be rescinded by the Secretary and added to the
appropriation for the fifth succeeding fiscal year.''.
SEC. 30723. EXTENDING CONTINUOUS MEDICAID COVERAGE FOR PREGNANT AND
POSTPARTUM WOMEN.
(a) Requiring Full Benefits for Pregnant and Postpartum Women for
12-month Period Post Pregnancy.--
(1) In general.--Paragraph (5) of section 1902(e) of the
Social Security Act (42 U.S.C. 1396a(e)) is amended--
(A) by striking ``(5) A woman who'' and inserting
``(5)(A) For any fiscal year quarter with respect to
which the amendments made by section 30723(a)(1)(B) of
the Act titled `An Act to provide for reconciliation
pursuant to title II of S. Con. Res. 14' do not apply
(beginning with the first fiscal year quarter beginning
one year after the date of the enactment of such Act),
a woman who''; and
(B) by adding at the end the following new
subparagraph:
``(B) For any fiscal year quarter (beginning with the first
fiscal year quarter beginning one year after the date of the
enactment of this subparagraph), any individual who, while
pregnant, is eligible for and received medical assistance under
the State plan or a waiver of such plan (regardless of the
basis for the individual's eligibility for medical assistance
and including during a period of retroactive eligibility under
subsection (a)(34)), shall remain eligible, notwithstanding
section 1916(c)(3) or any other limitation under this title,
for medical assistance through the end of the month in which
the 12-month period (beginning on the last day of pregnancy of
the individual) ends, and such medical assistance shall be in
accordance with clauses (i) and (ii) of paragraph (16)(B).''.
(2) Conforming amendments.--Title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.) is amended--
(A) in section 1902(a)(10), in the matter following
subparagraph (G), by striking ``(VII) the medical
assistance'' and all that follows through ``, (VIII)''
and inserting ``(VIII)'';
(B) in section 1902(e)(6), by striking ``In the
case of'' and inserting ``For any fiscal year quarter
with respect to which the amendments made by section
30723(a)(1)(B) of the Act titled `An Act to provide for
reconciliation pursuant to title II of S. Con. Res. 14'
do not apply (beginning with the first fiscal year
quarter beginning one year after the date of the
enactment of such Act), in the case of'';
(C) in section 1902(l)(1)(A), by striking ``60-day
period'' and inserting ``12-month period'';
(D) in section 1903(v)(4)(A)--
(i) in clause (i), by striking ``60-day
period'' and inserting ``12-month period (or,
for any fiscal year quarter with respect to
which the amendments made by section
30723(a)(1)(B) of the Act titled `An Act to
provide for reconciliation pursuant to title II
of S. Con. Res. 14' do not apply (beginning
with the first fiscal year quarter beginning
one year after the date of the enactment of
such Act), 60-day period)''; and
(ii) in clause (ii), by inserting ``and
including an individual to whom section
1902(e)(5)(B) applies, in accordance with such
section, through the end of the month in which
the 12-month period (beginning on the last day
of pregnancy of the individual) ends'' before
the period at the end; and
(E) in section 1905(a), in the 4th sentence in the
matter following paragraph (31), by striking ``60-day
period'' and inserting ``12-month period (or, for any
fiscal year quarter with respect to which the
amendments made by section 30723(a)(1)(B) of the Act
titled `An Act to provide for reconciliation pursuant
to title II of S. Con. Res. 14' do not apply (beginning
with the first fiscal year quarter beginning one year
after the date of the enactment of such Act), 60-day
period)''.
(b) Transition From State Option.--Section 1902(e)(16)(A) of the
Social Security Act (42 U.S.C. 1396a(e)(16)(A)) is amended by striking
``At the option of the State'' and inserting ``For any fiscal year
quarter with respect to which the amendments made by section
30723(a)(1)(B) of the Act titled `An Act to provide for reconciliation
pursuant to title II of S. Con. Res. 14' do not apply (beginning with
the first fiscal year quarter beginning one year after the date of the
enactment of such Act), at the option of the State''.
(c) Effective Date.--
(1) In general.--Subject to paragraph (2), the amendments
made by this section shall take effect on the 1st day of the
1st fiscal year quarter that begins one year after the date of
the enactment of this Act and shall apply with respect to
medical assistance provided on or after such date.
(2) Exception for state legislation.--In the case of a
State plan under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.) that the Secretary of Health and Human
Services determines requires State legislation in order for the
plan to meet any requirement imposed by amendments made by this
section, the plan shall not be regarded as failing to comply
with the requirements of such title solely on the basis of its
failure to meet such a requirement before the first day of the
first calendar quarter beginning after the close of the first
regular session of the State legislature that begins after the
date of the enactment of this Act. For purposes of the previous
sentence, in the case of a State that has a 2-year legislative
session, each year of the session shall be considered to be a
separate regular session of the State legislature.
SEC. 30724. PROVIDING FOR 1 YEAR OF CONTINUOUS ELIGIBILITY FOR CHILDREN
UNDER THE MEDICAID PROGRAM.
(a) In General.--Section 1902(e) of the Social Security Act (42
U.S.C. 1396a(e)) is amended--
(1) in paragraph (12), by inserting ``before the date of
the enactment of paragraph (17)'' after ``subsection
(a)(10)(A)''.
(2) by adding at the end following new paragraph:
``(17) 1 year of continuous eligibility for children.--The
State plan (or waiver of such State plan) shall provide that an
individual who is under the age of 19 and who is determined to
be eligible for benefits under a State plan approved under
subsection (a)(10)(A) shall remain eligible for such benefits
until the earlier of--
``(A) the end of the 12-month period beginning on
the date of such determination;
``(B) the time that such individual attains the age
of 19; or
``(C) the date that such individual ceases to be a
resident of such State.''.
(b) Effective Date.--
(1) In general.--Subject to paragraph (2), the amendments
made by subsection (a)(2) shall apply with respect to
eligibility determinations or redeterminations made on or after
the date of the enactment of this Act.
(2) Exception for state legislation.--In the case of a
State plan under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.) that the Secretary of Health and Human
Services determines requires State legislation in order for the
plan to meet any requirement imposed by amendments made under
subsection (a)(2), the plan shall not be regarded as failing to
comply with the requirements of such title solely on the basis
of its failure to meet such a requirement before the first day
of the first calendar quarter beginning after the close of the
first regular session of the State legislature that begins
after the date of the enactment of this Act. For purposes of
the previous sentence, in the case of a State that has a 2-year
legislative session, each year of the session shall be
considered to be a separate regular session of the State
legislature.
SEC. 30725. ALLOWING FOR MEDICAL ASSISTANCE UNDER MEDICAID FOR INMATES
DURING 30-DAY PERIOD PRECEDING RELEASE.
The subdivision (A) following paragraph (31) of section 1905(a) of
the Social Security Act (42 U.S.C. 1396d(a)) is amended by inserting
``and, beginning on the first day of the first fiscal year quarter that
begins one year after the date of the enactment of the Act titled `An
Act to provide for reconciliation pursuant to title II of S. Con. Res.
14', except during the 30-day period preceding the date of release of
such individual from such public institution'' after ``medical
institution''.
SEC. 30726. EXTENSION OF CERTAIN PROVISIONS.
(b) Express Lane Eligibility Option.--Section 1902(e)(13) of the
Social Security Act (42 U.S.C. 1396a(e)(13)) is amended by striking
subparagraph (I).
(c) Conforming Amendments for Assurance of Affordability Standard
for Children and Families.--Section 1902(gg)(2) of the Social Security
Act (42 U.S.C. 1396a(gg)(2)) is amended--
(1) in the paragraph heading, by striking ``through
september 30, 2027''; and
(2) by striking ``through September 30'' and all that
follows through ``ends on September 30, 2027'' and inserting
``(but beginning on October 1, 2019,''.
Subtitle H--Children's Health Insurance Program
SEC. 30801. PERMANENT EXTENSION OF CHILDREN'S HEALTH INSURANCE PROGRAM.
(a) In General.--Section 2104(a)(28) of the Social Security Act (42
U.S.C. 1397dd(a)(28)) is amended to read as follows:
``(28) for fiscal year 2027 and each subsequent year, such
sums as are necessary to fund allotments to States under
subsection (m).''.
(b) Allotments.--
(1) In general.--Section 2104(m) of the Social Security Act
(42 U.S.C. 1397dd(m)) is amended--
(A) in paragraph (2)(B)(i), by striking ``,, 2023,
and 2027'' and inserting ``and 2023'';
(B) in paragraph (5)--
(i) by striking ``(10), or (11)'' and
inserting ``or (10)'';
(ii) by striking ``for a fiscal year'' and
inserting ``for a fiscal year before 2027'';
and
(iii) by striking ``2023, or 2027'' and
inserting ``or 2023'';
(C) in paragraph (7)--
(i) in subparagraph (A), by striking ``and
ending with fiscal year 2027,''; and
(ii) in the flush left matter at the end,
by striking ``or fiscal year 2026'' and
inserting ``fiscal year 2026, or a subsequent
even-numbered fiscal year'';
(D) in paragraph (9)--
(i) by striking ``(10), or (11)'' and
inserting ``or (10)''; and
(ii) by striking ``2023, or 2027,'' and
inserting ``or 2023''; and
(E) by striking paragraph (11).
(2) Conforming amendment.--Section 50101(b)(2) of the
Bipartisan Budget Act of 2018 (Public Law 115-123) is repealed.
SEC. 30802. PERMANENT EXTENSIONS OF OTHER PROGRAMS AND DEMONSTRATION
PROJECTS.
(a) Pediatric Quality Measures Program.--Section 1139A(i)(1) of the
Social Security Act (42 U.S.C. 1320b-9a(i)(1)) is amended--
(1) in subparagraph (C), by striking at the end ``and'';
(2) in subparagraph (D), by striking the period at the end
and insert a semicolon; and
(3) by adding at the end the following new subparagraphs:
``(E) for fiscal year 2028, $15,000,000 for the
purpose of carrying out this section (other than
subsections (e), (f), and (g)); and
``(F) for a subsequent fiscal year, the amount
appropriated under this paragraph for the previous
fiscal year, increased by the percentage increase in
the consumer price index for all urban consumers (all
items; United States city average) over such previous
fiscal year, for the purpose of carrying out this
section (other than subsections (e), (f), and (g)).''.
(b) Assurance of Affordability Standard for Children and
Families.--Section 2105(d)(3) of the Social Security Act (42 U.S.C.
1397ee(d)(3)) is amended--
(1) in the paragraph heading, by striking ``through
september 30, 2027''; and
(2) in subparagraph (A)--
(A) in the matter preceding clause (i)--
(i) by striking ``During the period that
begins on the date of enactment of the Patient
Protection and Affordable Care Act and ends on
September 30, 2027'' and inserting ``Beginning
on the date of the enactment of the Patient
Protection and Affordable Care Act'';
(ii) by striking ``During the period that
begins on October 1, 2019, and ends on
September 30, 2027'' and inserting ``Beginning
on October 1, 2019''; and
(iii) by striking ``The preceding sentences
shall not be construed as preventing a State
during any such periods from'' and inserting
``The preceding sentences shall not be
construed as preventing a State from'';
(B) in clause (i), by striking the semicolon at the
end and inserting a period;
(C) by striking clauses (ii) and (iii); and
(D) by striking ``periods from'' and all that
follows through ``applying eligibility standards'' and
inserting ``periods from applying eligibility
standards''.
(c) Qualifying States Option.--Section 2105(g)(4) of the Social
Security Act (42 U.S.C. 1397ee(g)(4)) is amended--
(1) in the paragraph heading, by striking ``for fiscal
years 2009 through 2027'' and inserting ``after fiscal year
2008''; and
(2) in subparagraph (A), by striking ``for any of fiscal
years 2009 through 2027'' and inserting ``for any fiscal year
after fiscal year 2008''.
(d) Outreach and Enrollment Program.--Section 2113 of the Social
Security Act (42 U.S.C. 1397mm) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``during the
period of fiscal years 2009 through 2027'' and
inserting ``, beginning with fiscal year 2009,'';
(B) in paragraph (2)--
(i) by striking ``10 percent of such
amounts'' and inserting ``10 percent of such
amounts for the period or the fiscal year for
which such amounts are appropriated''; and
(ii) by striking ``during such period'' and
inserting ``, during such period or such fiscal
year,''; and
(C) in paragraph (3), by striking ``For the period
of fiscal years 2024 through 2027, an amount equal to
10 percent of such amounts'' and inserting ``Beginning
with fiscal year 2024, an amount equal to 10 percent of
such amounts for the period or the fiscal year for
which such amounts are appropriated''; and
(2) in subsection (g)--
(A) by striking ``2017,,'' and inserting ``2017,'';
(B) by striking ``and $48,000,000'' and inserting
``$48,000,000''; and
(C) by inserting after ``through 2027'' the
following: ``, $60,000,000 for fiscal years 2028, 2029,
and 2020, for each 3 fiscal years after fiscal year
2030, the amount appropriated under this subsection for
the previous fiscal year, increased by the percentage
increase in the consumer price index for all urban
consumers (all items; United States city average) over
such previous fiscal year''.
(e) Child Enrollment Contingency Fund.--Section 2104(n) of the
Social Security Act (42 U.S.C. 1397dd(n)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A)(ii)--
(i) by striking ``and 2024 through 2026''
and inserting ``beginning with fiscal year
2024''; and
(ii) by striking ``2023, and 2027'' and
inserting ``and 2023''; and
(B) in subparagraph (B)--
(i) by striking ``2024 through 2026'' and
inserting ``beginning with fiscal year 2024'';
and
(ii) by striking ``2023, and 2027'' and
inserting ``and 2023''; and
(2) in paragraph (3)(A)--
(A) by striking ``fiscal years 2024 through 2026''
and inserting ``fiscal year 2024 or any subsequent
fiscal year''; and
(B) by striking ``2023, or 2027'' and inserting
``or 2023''.
SEC. 30803. STATE OPTION TO INCREASE CHILDREN'S ELIGIBILITY FOR
MEDICAID AND CHIP.
(a) In General.--Section 2110(b)(1)(B)(ii) of the Social Security
Act (42 U.S.C. 1397jj(b)(1)(B)(ii)) is amended--
(1) in subclause (II), by striking ``or'' at the end;
(2) in subclause (III), by striking ``and'' at the end and
inserting ``or''; and
(3) by inserting after subclause (III) the following new
subclause:
``(IV) at the option of the State, whose
family income exceeds the maximum income level
otherwise established for children under the
State child health plan as of the date of the
enactment of this subclause; and''.
(b) Treatment of Territories.--Section 2104(m)(7) of the Social
Security Act (42 U.S.C. 1397dd(m)(7)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``the 50 States or the District of Columbia'' and inserting ``a
State (including the District of Columbia and each commonwealth
and territory)'';
(2) in subparagraph (B)(ii), by striking ``or District'';
and
(3) in the matter following subparagraph (B), by striking
each place it occurs ``or District''.
SEC. 30804. EXTENDING CONTINUOUS CHIP COVERAGE FOR PREGNANT AND
POSTPARTUM WOMEN.
(a) Requiring Full Benefits for Pregnant and Postpartum Women for
12-month Period Post Pregnancy.--
(1) In general.--Section 2107(e)(1)(J) of the Social
Security Act (42 U.S.C. 1397gg(e)(1)(J)) is amended--
(A) by striking ``Paragraphs (5) and (16)'' and
inserting ``(i) For any fiscal year quarter with
respect to which the amendments made by section
30804(a)(1)(B) of the Act titled `An Act to provide for
reconciliation pursuant to title II of S. Con. Res. 14'
do not apply (beginning with the first fiscal year
quarter beginning one year after the date of the
enactment of such Act), paragraphs (5)(A) and (16)'';
and
(B) by adding at the end the following new clause:
``(ii) For any fiscal year quarter (beginning with
the first fiscal year quarter beginning one year after
the date of the enactment of this clause), section
1902(e)(5)(B) (requiring, notwithstanding section
2103(e)(3)(C)(ii)(I) or any other limitation under this
title, continuous coverage for pregnant and postpartum
individuals, including 12 months postpartum, of medical
assistance) if the State provides child health
assistance for targeted low-income children who are
pregnant or to targeted low-income pregnant women,
under the State child health plan or waiver, including
coverage of all items or services provided to a
targeted low-income child or targeted low-income
pregnant woman (as applicable) under the State child
health plan or waiver).''.
(2) Conforming amendments.--Section 2112 of the Social
Security Act (42 U.S.C. 1397ll) is amended--
(A) in subsection (d)--
(i) in paragraph (1), by inserting ``and
includes, through application of section
1902(e)(5)(B) pursuant to section
2107(e)(1)(J)(ii), continuous coverage for
pregnant and postpartum individuals, including
12 months postpartum of assistance'' before the
period at the end; and
(ii) in paragraph (2), by striking ``60-day
period'' and all that follows through ``ends''
and inserting ``12-month period (or, for any
fiscal year quarter with respect to which the
amendments made by section 30804(a)(1)(B) of
the Act titled `An Act to provide for
reconciliation pursuant to title II of S. Con.
Res. 14' do not apply (beginning with the first
fiscal year quarter beginning one year after
the date of the enactment of such Act), 60-day
period) (beginning on the last day of her
pregnancy) ends''; and
(B) in subsection (f)(2), by striking ``60-day
period'' and inserting ``12-month period (or, for any
fiscal year quarter with respect to which the
amendments made by section 30804(a)(1)(B) of the Act
titled `An Act to provide for reconciliation pursuant
to title II of S. Con. Res. 14' do not apply (beginning
with the first fiscal year quarter beginning one year
after the date of the enactment of such Act), 60-day
period)''.
(b) Effective Date.--
(1) In general.--Subject to paragraph (2), the amendments
made by this section shall take effect on the 1st day of the
1st fiscal year quarter that begins one year after the date of
the enactment of this Act and shall apply with respect to child
health assistance and pregnancy-related assistance, as
applicable, provided on or after such date.
(2) Exception for state legislation.--In the case of a
State child health plan under title XXI of the Social Security
Act (42 U.S.C. 1397aa et seq.) that the Secretary of Health and
Human Services determines requires State legislation in order
for the plan to meet any requirement imposed by amendments made
under this section, the plan shall not be regarded as failing
to comply with the requirements of such title solely on the
basis of its failure to meet such a requirement before the
first day of the first calendar quarter beginning after the
close of the first regular session of the State legislature
that begins after the date of the enactment of this Act. For
purposes of the previous sentence, in the case of a State that
has a 2-year legislative session, each year of the session
shall be considered to be a separate regular session of the
State legislature.
SEC. 30805. PROVIDING FOR 1 YEAR OF CONTINUOUS ELIGIBILITY FOR CHILDREN
UNDER THE CHILDREN'S HEALTH INSURANCE PROGRAM.
Section 2107(e)(1) of the Social Security Act (42 U.S.C.
1397gg(e)(1)) is amended--
(1) by redesignating subparagraphs (K) through (T) as
subparagraphs (L) through (U), respectively; and
(2) by inserting after subparagraph (J) the following new
subparagraph:
``(K) Section 1902(e)(17) (relating to 1 year of
continuous eligibility for children).''.
Subtitle I--Medicare Coverage of Dental, Hearing, and Vision Services
SEC. 30901. PROVIDING COVERAGE FOR DENTAL AND ORAL HEALTH CARE UNDER
THE MEDICARE PROGRAM.
(a) Coverage.--Section 1861(s)(2) of the Social Security Act (42
U.S.C. 1395x(s)(2)) is amended--
(1) in subparagraph (GG), by striking ``and'' after the
semicolon at the end;
(2) in subparagraph (HH), by striking the period at the end
and adding ``; and''; and
(3) by adding at the end the following new subparagraph:
``(II) dental and oral health services (as defined in
subsection (lll));''.
(b) Dental and Oral Health Services Defined.--Section 1861 of the
Social Security Act (42 U.S.C. 1395x) is amended by adding at the end
the following new subsection:
``(lll) Dental and Oral Health Services.--
``(1) In general.--The term `dental and oral health
services' means items and services (other than such items and
services for which payment may be made under part A as
inpatient hospital services) that are furnished during 2028 or
a subsequent year, for which coverage was not provided under
part B as of the date of the enactment of this subsection, and
that are--
``(A) the preventive and screening services
described in paragraph (2) furnished by a doctor of
dental surgery or of dental medicine (as described in
subsection (r)(2)) or an oral health professional (as
defined in paragraph (4)); or
``(B) the basic treatments specified for such year
by the Secretary pursuant to paragraph (3)(A) and the
major treatments specified for such year by the
Secretary pursuant to paragraph (3)(B) furnished by
such a doctor or such a professional.
``(2) Preventive and screening services.--The preventive
and screening services described in this paragraph are the
following:
``(A) Oral exams.
``(B) Dental cleanings.
``(C) Dental x-rays performed in the office of a
doctor or professional described in paragraph (1)(A).
``(D) Fluoride treatments.
``(3) Basic and major treatments.--For 2028 and each
subsequent year, the Secretary shall specify--
``(A) basic treatments (which may include basic
tooth restorations, basic periodontal services, tooth
extractions, and oral disease management services); and
``(B) major treatments (which may include major
tooth restorations, major periodontal services,
bridges, crowns, and root canals);
that shall be included as dental and oral health services for
such year.
``(4) Oral health professional.--The term `oral health
professional' means, with respect to dental and oral health
services, a health professional (other than a doctor of dental
surgery or of dental medicine (as described in subsection
(r)(2))) who is licensed to furnish such services, acting
within the scope of such license, by the State in which such
services are furnished.''.
(c) Payment; Coinsurance; and Limitations.--
(1) In general.--Section 1833(a)(1) of the Social Security
Act (42 U.S.C. 1395l(a)(1)), as amended by section 30511(b), is
further amended--
(A) in subparagraph (N), by inserting ``and dental
and oral health services (as defined in section
1861(lll))'' after ``section 1861(hhh)(1))'';
(B) by striking ``and'' before ``(EE)''; and
(C) by inserting before the semicolon at the end
the following: ``and (FF) with respect to dental and
oral health services (as defined in section 1861(lll)),
the amount paid shall be the payment amount specified
under section 1834(z)''.
(2) Payment and limits specified.--Section 1834 of the
Social Security Act (42 U.S.C. 1395m) is amended by adding at
the end the following new subsection:
``(z) Payment and Limits for Dental and Oral Health Services.--
``(1) In general.--The payment amount under this part for
dental and oral health services (as defined in section
1861(lll)) shall be, subject to paragraph (3), the applicable
percent (specified in paragraph (2)) of the lesser of--
``(A) the actual charge for the service; or
``(B) the amount determined under the payment basis
determined under section 1848 for the service, or, in
lieu of such amount, if determined appropriate by the
Secretary, an amount specified by the Secretary for
such service under a fee schedule determined
appropriate by the Secretary, taking into account fee
schedules for such services--
``(i) under the TRICARE program under
chapter 55 of title 10 of the United States
Code;
``(ii) under the health insurance program
under chapter 89 of title 5 of such Code;
``(iii) under State plans (or waivers of
such plans) under title XIX;
``(iv) under Medicare Advantage plans under
part C;
``(v) established by the Secretary of
Veterans Affairs; and
``(vi) established by other health care
payers.
``(2) Applicable percent.--For purposes of paragraph (1),
the applicable percent specified in this paragraph is, with
respect to dental and oral health services (as defined in
section 1861(lll)) furnished in a year--
``(A) that are preventive and screening services
described in paragraph (2) or basic treatments
specified for such year pursuant to paragraph (3)(A) of
such section, 80 percent; and
``(B) that are major treatments specified for such
year pursuant to paragraph (3)(B) of such section--
``(i) in the case such services are
furnished during 2028, 10 percent;
``(ii) in the case such services are
furnished during 2029 or a subsequent year
before 2032, the applicable percent specified
under this subparagraph for the previous year,
increased by 10 percentage points; and
``(iii) in the case such services are
furnished during 2032 or a subsequent year, 50
percent.
``(3) Limitations.--With respect to dental and oral health
services that are--
``(A) preventive and screening oral exams, payment
may be made under this part for not more than two such
exams during a 12-month period;
``(B) dental cleanings, payment may be made under
this part for not more than two such cleanings during a
12-month period; and
``(C) not described in subparagraph (A) or (B),
payment may be made under this part only at such
frequencies and under such circumstances determined
appropriate by the Secretary.
``(4) Use of bundled payments.--The Secretary may make
payment for dentures and associated professional services, and
for any other dental and oral health services, as bundled
payments as the Secretary determines appropriate.
``(5) Limitation on judicial review.--There shall be no
administrative or judicial review under section 1869 or
otherwise of--
``(A) the determination of payment amounts under
this subsection for dental and oral health services and
under subsection (h)(6) or subsection (z)(4) for
dentures;
``(B) the determination of what services are basic
and major services under subparagraphs (A) and (B) of
section 1861(lll)(3); or
``(C) the determination of the frequency and
circumstance limitations for dental and oral health
services under paragraph (3)(C).''.
(d) Payment Under Physician Fee Schedule.--
(1) In general.--Section 1848(j)(3) of the Social Security
Act (42 U.S.C. 1395w-4(j)(3)) is amended by inserting
``(2)(II),'' before ``(3)''.
(2) Exclusion from mips.--Section 1848(q)(1)(C)(ii) of the
Social Security Act (42 U.S.C. 1395w-4(q)(1)(C)(ii)) is
amended--
(A) in subclause (II), by striking ``or'' at the
end;
(B) in subclause (III), by striking the period at
the end and inserting ``; or''; and
(C) by adding at the end the following new
subclause:
``(IV) with respect to 2028 and
each subsequent year, is a doctor of
dental surgery or of dental medicine
(as described in section 1861(r)(2)) or
is an oral health professional (as
defined in section 1861(lll)(4)).''.
(3) Inclusion of oral health professionals as certain
practitioners.--Section 1842(b)(18)(C) of the Social Security
Act (42 U.S.C. 1395u(b)(18)(C)) is amended by adding at the end
the following new clause:
``(vii) With respect to 2028 and each subsequent year, an
oral health professional (as defined in section
1861(lll)(4)).''.
(e) Dentures.--
(1) In general.--Section 1861(s)(8) of the Social Security
Act (42 U.S.C. 1395x(s)(8)) is amended--
(A) by striking ``(other than dental)''; and
(B) by inserting ``and excluding dental, except for
a full or partial set of dentures (as described in
section 1834(h)(6)) furnished on or after January 1,
2028'' after ``colostomy care''.
(2) Special payment rules.--
(A) Limitations.--Section 1834(h) of the Social
Security Act (42 U.S.C. 1395m(h)) is amended by adding
at the end the following new paragraph:
``(6) Special payment rule for dentures.--Payment may be
made under this part with respect to an individual for
dentures--
``(A) not more than once during any 5-year period
(except in the case that a doctor described in section
1861(lll)(1)(A) determines such dentures do not fit the
individual); and
``(B) only to the extent that such dentures are
furnished pursuant to a written order of such a doctor
or professional.''.
(B) Application of competitive acquisition.--
(i) In general.--Section 1834(h)(1)(H) of
the Social Security Act (42 U.S.C.
1395m(h)(1)(H)) is amended--
(I) in the subparagraph heading, by
inserting ``, dentures'' after
``orthotics'';
(II) by inserting ``, of dentures
described in paragraph (2)(D) of such
section,'' after ``2011,''; and
(III) in clause (i), by inserting
``, such dentures'' after
``orthotics''.
(ii) Conforming amendment.--Section
1847(a)(2) of the Social Security Act (42
U.S.C. 1395w-3(a)(2)) is amended by adding at
the end the following new subparagraph:
``(D) Dentures.--Dentures described in section
1861(s)(8) for which payment would otherwise be made
under section 1834(h).''.
(iii) Exemption of certain items from
competitive acquisition.--Section 1847(a)(7) of
the Social Security Act (42 U.S.C. 1395w-
3(a)(7)) is amended by adding at the end the
following new subparagraph:
``(C) Certain dentures.--Those items and services
described in paragraph (2)(D) if furnished by a
physician or other practitioner (as defined by the
Secretary) to the physician's or practitioner's own
patients as part of the physician's or practitioner's
professional service.''.
(f) Exclusion Modifications.--Section 1862(a) of the Social
Security Act (42 U.S.C. 1395y(a)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (O), by striking ``and'' at the
end;
(B) in subparagraph (P), by striking the semicolon
at the end and inserting ``, and''; and
(C) by adding at the end the following new
subparagraph:
``(Q) in the case of dental and oral health services (as
defined in section 1861(lll)) that are preventive and screening
services described in paragraph (2) of such section, which are
furnished more frequently than provided under section
1834(z)(3) or under circumstances other than circumstances
determined appropriate under subparagraph (C) of such
section;''; and
(2) in paragraph (12), by inserting before the semicolon at
the end the following: ``and except that payment may be made
under part B for dental and oral health services that are
covered under section 1861(s)(2)(II) and for dentures under
section 1861(s)(8)''.
(g) Certain Non-application.--
(1) In general.--Paragraphs (1) and (4) of section 1839(a)
of the Social Security Act (42 U.S.C. 1395r(a)) are amended by
adding at the end of each such paragraphs the following: ``In
applying this paragraph there shall not be taken into account
benefits and administrative costs attributable to the
amendments made by section 30901 (other than subsection (g)) of
the Act titled `An Act to provide for reconciliation pursuant
to title II of S. Con. Res. 14' and the Government contribution
under section 1844(a)(5)''.
(2) Payment.--Section 1844(a) of such Act (42 U.S.C.
1395w(a)) is amended--
(A) in paragraph (4), by striking the period at the
end and inserting ``; plus'';
(B) by adding at the end the following new
paragraph:
``(5) a Government contribution equal to the amount that is
estimated to be payable for benefits and related administrative
costs incurred that are attributable to the amendments made by
section 30901 (other than subsection (g)) of the Act titled `An
Act to provide for reconciliation pursuant to title II of S.
Con. Res. 14' .''; and
(C) in the flush matter at the end, by striking
``paragraph (4)'' and inserting ``paragraphs (4) and
(5)''.
(h) Implementation.--
(1) Funding.--
(A) In general.--In addition to amounts otherwise
available, the Secretary of Health and Human Services
(in this subsection referred to as the ``Secretary'')
shall provide for the transfer from the Federal
Supplementary Medical Insurance Trust Fund under
section 1841 of the Social Security Act (42 U.S.C.
1395t) to the Centers for Medicare & Medicaid Services
Program Management Account of--
(i) $20,000,000 for each of fiscal years
2022 through 2028 for purposes of implementing
the amendments made by this section; and
(ii) such sums as determined appropriate by
the Secretary for each subsequent fiscal year
for purposes of administering the provisions of
such amendments.
(B) Availability and additional use of funds.--
Funds transferred pursuant to subparagraph (A) shall
remain available until expended and may be used, in
addition to the purpose specified in subparagraph
(A)(i), to implement the amendments made by sections
30902 and 30903.
(2) Administration.--The Secretary may implement, by
program instruction or otherwise, any of the provisions of, or
amendments made by, this section.
(3) Paperwork reduction act.--Chapter 35 of title 44,
United States Code, shall not apply to the provisions of, or
the amendments made by, this section.
SEC. 30902. PROVIDING COVERAGE FOR HEARING CARE UNDER THE MEDICARE
PROGRAM.
(a) Provision of Aural Rehabilitation and Treatment Services by
Qualified Audiologists.--Section 1861(ll)(3) of the Social Security Act
(42 U.S.C. 1395x(ll)(3)) is amended by inserting ``(and, beginning
October 1, 2023, such aural rehabilitation and treatment services)''
after ``assessment services''.
(b) Coverage of Hearing Aids.--
(1) Inclusion of hearing aids as prosthetic devices.--
Section 1861(s)(8) of the Social Security Act (42 U.S.C.
1395x(s)(8)) is amended by inserting ``, and including hearing
aids (as described in section 1834(h)(7)) furnished on or after
October 1, 2023, to individuals diagnosed with profound or
severe hearing loss'' before the semicolon at the end.
(2) Payment limitations for hearing aids.--Section 1834(h)
of the Social Security Act (42 U.S.C. 1395m(h)), as amended by
section 30901(e)(2)(A), is further amended by adding at the end
the following new paragraph:
``(7) Limitations for hearing aids.--
``(A) In general.--Payment may be made under this
part with respect to an individual, with respect to
hearing aids furnished on or after October 1, 2023--
``(i) not more than once during a 5-year
period;
``(ii) only for types of such hearing aids
that are not over-the-counter hearing aids (as
defined in section 520(q)(1) of the Federal
Food, Drug, and Cosmetic Act) and that are
determined appropriate by the Secretary; and
``(iii) only if furnished pursuant to a
written order of a physician or qualified
audiologist (as defined in section
1861(ll)(4)(B)).
``(B) Limitation on judicial review.--There shall
be no administrative or judicial review under section
1869 or otherwise of--
``(i) the determination of the types of
hearing aids paid for under subparagraph
(A)(ii); or
``(ii) the determination of fee schedule
rates for hearing aids described in this
paragraph.''.
(3) Application of competitive acquisition.--
(A) In general.--Section 1834(h)(1)(H) of the
Social Security Act (42 U.S.C. 1395m(h)(1)(H)), as
amended by section 30901(e)(2)(B)(i), is further
amended--
(i) in the header, by inserting ``, hearing
aids'' after ``dentures'';
(ii) by inserting ``, of hearing aids
described in paragraph (2)(E) of such
section,'' after ``paragraph (2)(D) of such
section''; and
(iii) in clause (i), by inserting ``, such
hearing aids'' after ``such dentures''.
(B) Conforming amendment.--
(i) In general.--Section 1847(a)(2) of the
Social Security Act (42 U.S.C. 1395w-3(a)(2)),
as amended by section 30901(e)(2)(B)(ii), is
further amended by adding at the end the
following new subparagraph:
``(E) Hearing aids.--Hearing aids described in
section 1861(s)(8) for which payment would otherwise be
made under section 1834(h).''.
(ii) Exemption of certain items from
competitive acquisition.--Section 1847(a)(7) of
the Social Security Act (42 U.S.C. 1395w-
3(a)(7)), as amended by section
30901(e)(2)(B)(iii), is further amended by
adding at the end the following new
subparagraph:
``(D) Certain hearing aids.--Those items and
services described in paragraph (2)(E) if furnished by
a physician or other practitioner (as defined by the
Secretary) to the physician's or practitioner's own
patients as part of the physician's or practitioner's
professional service.''.
(4) Inclusion of audiologists as certain practitioners to
receive payment on an assignment-related basis.--Section
1842(b)(18)(C) of the Social Security Act (42 U.S.C.
1395u(b)(18)(C)), as amended by section 30901(d)(4), is further
amended by adding at the end the following new clause:
``(viii) Beginning October 1, 2023, a
qualified audiologist (as defined in section
1861(ll)(4)(B)).''.
(c) Exclusion Modification.--Section 1862(a)(7) of the Social
Security Act (42 U.S.C. 1395y(a)(7)) is amended by inserting ``(except
such hearing aids or examinations therefor as described in and
otherwise allowed under section 1861(s)(8))'' after ``hearing aids or
examinations therefor''.
(d) Certain Non-application.--
(1) In general.--The last sentence of section 1839(a)(1) of
the Social Security Act (42 U.S.C. 1395r(a)(1)), as added by
section 30901(g)(1), is amended by striking ``section 30901
(other than subsection (g))'' and inserting ``sections 30901
(other than subsection (g)), 30902 (other than subsection
(d))''.
(2) Payment.--Paragraph (4) of section 1844(a) of such Act
(42 U.S.C. 1395w(a)), as added by section 30901(g)(2), is
amended by striking ``section 30901 (other than subsection
(g))'' and inserting ``sections 30901 (other than subsection
(g)), 30902 (other than subsection (d))''.
(e) Implementation.--
(1) Funding.--
(A) In general.--In addition to amounts otherwise
available, the Secretary of Health and Human Services
(in this subsection referred to as the ``Secretary'')
shall provide for the transfer from the Federal
Supplementary Medical Insurance Trust Fund under
section 1841 of the Social Security Act (42 U.S.C.
1395t) to the Centers for Medicare & Medicaid Services
Program Management Account of--
(i) $20,000,000 for each of fiscal years
2022 through 2023 for purposes of implementing
the amendments made by this section; and
(ii) such sums as determined appropriate by
the Secretary for each subsequent fiscal year
for purposes of administering the provisions of
such amendments.
(B) Availability and additional use of funds.--
Funds transferred pursuant to subparagraph (A) shall
remain available until expended and may be used, in
addition to the purpose specified in subparagraph
(A)(i), to implement the amendments made by sections
30901 and 30903.
(2) Administration.--The Secretary may implement, by
program instruction or otherwise, any of the provisions of, or
amendments made by, this section.
(3) Paperwork reduction act.--Chapter 35 of title 44,
United States Code, shall not apply to the provisions of, or
the amendments made by, this section.
SEC. 30903. PROVIDING COVERAGE FOR VISION CARE UNDER THE MEDICARE
PROGRAM.
(a) Coverage.--Section 1861(s)(2) of the Social Security Act (42
U.S.C. 1395x(s)(2)), as amended by section 30901(a), is further
amended--
(1) in subparagraph (HH), by striking ``and'' after the
semicolon at the end;
(2) in subparagraph (II), by striking the period at the end
and adding ``; and''; and
(3) by adding at the end the following new subparagraph:
``(JJ) vision services (as defined in subsection (mmm));''.
(b) Vision Services Defined.--Section 1861 of the Social Security
Act (42 U.S.C. 1395x), as amended by section 30901(b), is further
amended by adding at the end the following new subsection:
``(mmm) Vision Services.--The term `vision services' means--
``(1) routine eye examinations to determine the refractive
state of the eyes, including procedures performed during the
course of such examination; and
``(2) contact lens fitting services;
furnished on or after October 1, 2022, by or under the direct
supervision of an ophthalmologist or optometrist who is legally
authorized to furnish such examinations, procedures, or fitting
services (as applicable) under State law (or the State regulatory
mechanism provided by State law) of the State in which the
examinations, procedures, or fitting services are furnished.''.
(c) Payment Limitations.--Section 1834 of the Social Security Act
(42 U.S.C. 1395m), as amended by section 30901(c)(2), is further
amended by adding at the end the following new subsection:
``(aa) Limitation for Vision Services.--With respect to vision
services (as defined in section 1861(mmm)) and an individual, payment
may be made under this part for only 1 routine eye examination
described in paragraph (1) of such section and 1 contact lens fitting
service described in paragraph (2) of such section during a 2-year
period.''.
(d) Payment Under Physician Fee Schedule.--Section 1848(j)(3) of
the Social Security Act (42 U.S.C. 1395w-4(j)(3)), as amended by
section 30901(d)(1), is further amended by inserting ``(2)(JJ),''
before ``(3)''.
(e) Coverage of Conventional Eyeglasses and Contact Lenses.--
(1) In general.--Section 1861(s)(8) of the Social Security
Act (42 U.S.C. 1395x(s)(8)), as amended by section 30902(b)(1),
is further amended by striking ``, and including one pair of
conventional eyeglasses or contact lenses furnished subsequent
to each cataract surgery with insertion of an intraocular
lens'' and inserting ``, including one pair of conventional
eyeglasses or contact lenses furnished subsequent to each
cataract surgery with insertion of an intraocular lens, if
furnished before October 1, 2022, and including conventional
eyeglasses or contact lenses (as described in section
1834(h)(8)), whether or not furnished subsequent to such a
surgery, if furnished on or after October 1, 2022''.
(2) Conforming amendment.--Section 1842(b)(11)(A) of the
Social Security Act (42 U.S.C. 1395u(b)(11)(A)) is amended by
inserting ``furnished prior to October 1, 2022,'' after
``relating to them,''.
(f) Special Payment Rules for Eyeglasses and Contact Lenses.--
(1) Limitations.--Section 1834(h) of the Social Security
Act (42 U.S.C. 1395m(h)), as amended by section 30901(e)(2)(A)
and section 30902(b)(2), is further amended by adding at the
end the following new paragraph:
``(8) Payment limitations for eyeglasses and contact
lenses.--
``(A) In general.--With respect to eyeglasses and
contact lenses furnished to an individual on or after
October 1, 2022, subject to subparagraph (B), payment
may be made under this part only--
``(i) during a 2-year period, for either 1
pair of eyeglasses (including lenses and
frames) or not more than a 2-year supply of
contact lenses;
``(ii) with respect to amounts attributable
to the lenses and frames of such a pair of
eyeglasses or amounts attributable to such a 2-
year supply of contact lenses, in an amount not
greater than--
``(I) for a pair of eyeglasses
furnished in, or a 2-year supply of
contact lenses beginning in, 2022--
``(aa) $85 for the lenses
of such pair of eyeglasses and
$85 for the frames of such pair
of eyeglasses; or
``(bb) $85 for such 2-year
supply of contact lenses; and
``(II) for the lenses and frames of
a pair of eyeglasses furnished in, or a
2-year supply of contact lenses
beginning in, a subsequent year, the
dollar amounts specified under this
subparagraph for the previous year,
increased by the percentage change in
the consumer price index for all urban
consumers (United States city average)
for the 12-month period ending with
June of the previous year;
``(iii) if furnished pursuant to a written
order of an ophthalmologist or optometrist
described in subsection (mmm); and
``(iv) if during the 2-year period
described in clause (i), the individual did not
already receive (as described in subparagraph
(B)) one pair of conventional eyeglasses or
contact lenses subsequent to a cataract surgery
with insertion of an intraocular lens furnished
during such period.
``(B) Exception.--With respect to a 2-year period
described in subparagraph (A)(i), in the case of an
individual who receives cataract surgery with insertion
of an intraocular lens, notwithstanding subparagraph
(A), payment may be made under this part for one pair
of conventional eyeglasses or contact lenses furnished
subsequent to such cataract surgery during such period.
``(C) Limitation on judicial review.--There shall
be no administrative or judicial review under section
1869 or otherwise of--
``(i) the determination of the types of
eyeglasses and contact lenses covered under
this paragraph; or
``(ii) the determination of fee schedule
rates under this subsection for eyeglasses and
contact lenses.''.
(2) Application of competitive acquisition.--
(A) In general.--Section 1834(h)(1)(H) of the
Social Security Act (42 U.S.C. 1395m(h)(1)(H)), as
amended by section 30901(e)(2)(B)(i) and section
30902(b)(3)(A), is further amended--
(i) in the header by inserting ``,
eyeglasses, and contact lenses'' after
``hearing aids'';
(ii) by inserting ``and of eyeglasses and
contact lenses described in paragraph (2)(F) of
such section,'' after ``paragraph (2)(E) of
such section,''; and
(iii) in clause (i), by inserting ``, or
such eyeglasses and contact lenses'' after
``such hearing aids''.
(B) Conforming amendment.--
(i) In general.--Section 1847(a)(2) of the
Social Security Act (42 U.S.C. 1395w-3(a)(2)),
as amended by section 30901(e)(2)(B)(ii) and
section 30902(b)(3)(B)(i), is further amended
by adding at the end the following new
subparagraph:
``(F) Eyeglasses and contact lenses.--Eyeglasses
and contact lenses described in section 1861(s)(8) for
which payment would otherwise be made under section
1834(h).''.
(ii) Exemption of certain items from
competitive acquisition.--Section 1847(a)(7) of
the Social Security Act (42 U.S.C. 1395w-
3(a)(7)), as amended by section
30901(e)(2)(B)(iii) and section
30902(b)(3)(B)(ii), is further amended by
adding at the end the following new
subparagraph:
``(E) Certain eyeglasses and contact lenses.--Those
items and services described in paragraph (2)(F) if
furnished by a physician or other practitioner (as
defined by the Secretary) to the physician's or
practitioner's own patients as part of the physician's
or practitioner's professional service.''.
(g) Exclusion Modifications.--Section 1862(a) of the Social
Security Act (42 U.S.C. 1395y(a)), as amended by section 30901(f), is
further amended--
(1) in paragraph (1)--
(A) in subparagraph (P), by striking ``and'' at the
end;
(B) in subparagraph (Q), by striking the semicolon
at the end and inserting ``, and''; and
(C) by adding at the end the following new
subparagraph:
``(R) in the case of vision services (as defined in section
1861(mmm)) that are routine eye examinations and contact lens
fitting services (as described in paragraph (1) or (2),
respectively, of such section), which are furnished more
frequently than once during a 2-year period;''; and
(2) in paragraph (7)--
(A) by inserting ``(other than such an examination
that is a vision service that is covered under section
1861(s)(2)(JJ))'' after ``eye examinations''; and
(B) by inserting ``(other than such a procedure
that is a vision service that is covered under section
1861(s)(2)(JJ))'' after ``refractive state of the
eyes''.
(h) Certain Non-application.--
(1) In general.--The last sentence of section 1839(a)(1) of
the Social Security Act (42 U.S.C. 1395r(a)(1)), as added by
section 30901(g)(1) and amended by section 30902(d)(1), is
further amended by inserting ``, and 30903 (other than
subsection (h))'' after ``30902 (other than subsection (d))''.
(2) Payment.--Paragraph (4) of section 1844(a) of such Act
(42 U.S.C. 1395w(a)), as added by section 30901(g)(2) and
amended by section 30902(d)(2), is further amended by inserting
``, and 30903 (other than subsection (h))'' after ``30902
(other than subsection (d))''.
(i) Implementation.--
(1) Funding.--
(A) In general.--In addition to amounts otherwise
available, the Secretary of Health and Human Services
(in this subsection referred to as the ``Secretary'')
shall provide for the transfer from the Federal
Supplementary Medical Insurance Trust Fund under
section 1841 of the Social Security Act (42 U.S.C.
1395t) to the Centers for Medicare & Medicaid Services
Program Management Account of--
(i) $20,000,000 for each of fiscal years
2022 and 2023 for purposes of implementing the
amendments made by this section; and
(ii) such sums as determined appropriate by
the Secretary for each subsequent fiscal year
for purposes of administering the provisions of
such amendments.
(B) Availability and additional use of funds.--
Funds transferred pursuant to subparagraph (A) shall
remain available until expended and may be used, in
addition to the purpose specified in subparagraph
(A)(i), to implement the amendments made by sections
30901 and 30902.
(2) Administration.--The Secretary may implement, by
program instruction or otherwise, any of the provisions of, or
amendments made by, this section.
(3) Paperwork reduction act.--Chapter 35 of title 44,
United States Code, shall not apply to the provisions of, or
the amendments made by, this section.
Subtitle J--Public Health
PART 1--HEALTH CARE INFRASTRUCTURE AND WORKFORCE
SEC. 31001. FUNDING TO SUPPORT CORE PUBLIC HEALTH INFRASTRUCTURE FOR
STATE, TERRITORIAL, LOCAL, AND TRIBAL HEALTH DEPARTMENTS
AT THE CENTERS FOR DISEASE CONTROL AND PREVENTION.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary of Health and Human Services (in this
subtitle referred to as the ``Secretary'') for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $7,000,000,000,
to remain available until expended, to carry out, acting through the
Director of the Centers for Disease Control and Prevention (in this
section referred to as the ``Director''), activities described in
subsection (b).
(b) Use of Funds.--Amounts made available pursuant to subsection
(a) shall be used to support core public health infrastructure
activities to strengthen the public health system of the United States,
including by awarding grants under this section and expanding and
improving activities of the Centers for Disease Control and Prevention
under subsections (c) and (d).
(c) Grants.--
(1) Awards.--For the purpose of addressing core public
health infrastructure needs, the Secretary shall award--
(A) a grant to each State or territorial health
department, and to local health departments that serve
counties with a population of at least 2,000,000 or
cities with a population of at least 400,000 people;
and
(B) grants on a competitive basis to State,
territorial, local, or Tribal health departments.
(2) Allocation.--Of the total amount of funds awarded as
grants under this subsection for a fiscal year--
(A) not less than 50 percent shall be for grants to
health departments under paragraph (1)(A); and
(B) not less than 25 percent shall be for grants to
State, local, territorial, or Tribal health departments
under paragraph (1)(B).
(3) Required uses.--
(A) Reallocation to local health departments.--A
State health department receiving funds under
subparagraph (A) or (B) of paragraph (1) shall allocate
at least 25 percent of the such funds to local health
departments, as applicable, within the State to support
contributions of the local health departments to core
public health infrastructure.
(B) Progress in meeting accreditation standards.--A
health department receiving funds under this section
that is not accredited shall report to the Secretary on
an annual basis how the department is working to meet
accreditation standards.
(4) Formula grants to health departments.--In awarding
grants under paragraph (1), the Secretary shall award funds to
each health department in accordance with a formula which
considers population size, the Social Vulnerability Index of
the Centers for Disease Control and Prevention, and other
factors as determined by the Secretary.
(5) Competitive grants to state, territorial, local, and
tribal health departments.--In making grants under paragraph
(1)(B), the Secretary shall give priority to applicants
demonstrating core public health infrastructure needs for all
public health agencies in the applicant's jurisdiction.
(6) Permitted uses.--
(A) In general.--The Secretary may make available a
subset of the funds available for grants under
paragraph (1) for purposes of awarding grants to State,
territorial, local, and Tribal health departments for
planning or to support public health accreditation.
(B) Uses.--Recipients of such grants may use the
grant funds to assess core public health infrastructure
needs and report to the Centers for Disease Control and
Prevention on efforts to achieve accreditation, as
applicable.
(7) Requirements.--To be eligible for a grant under this
section, an entity shall--
(A) submit an application in such form and
containing such information as the Secretary shall
require;
(B) demonstrate to the satisfaction of the
Secretary that--
(i) funds received through the grant will
be expended only to supplement, and not
supplant, non-Federal and Federal funds
otherwise available to the entity for the
purpose of addressing core public health
infrastructure needs; and
(ii) with respect to activities for which
the grant is awarded, the entity will maintain
expenditures of non-Federal amounts for such
activities at a level not less than the level
of such expenditures maintained by the entity
for fiscal year 2019; and
(C) agree to report annually to the Director
regarding the use of the grant funds.
(d) Core Public Health Infrastructure and Activities for the CDC.--
(1) In general.--The Secretary, acting through the
Director, shall expand and improve the core public health
infrastructure and activities of the Centers for Disease
Control and Prevention to support activities necessary to
address unmet, ongoing, and emerging public health needs,
including prevention, preparation for, and response to public
health emergencies.
(2) Limitation.--Out of amounts appropriated under
subsection (a) to carry out this section for a fiscal year, not
more than 25 percent of the funds awarded per fiscal year may
be used by the Centers for Disease Control and Prevention to
carry out this subsection.
(e) Definition.--In this section, the term ``core public health
infrastructure'' includes--
(1) workforce capacity and competency;
(2) laboratory systems;
(3) all hazards public health and preparedness;
(3) testing capacity, including test platforms, mobile
testing units, and personnel;
(4) health information, health information systems, and
health information analysis;
(5) disease surveillance;
(6) contact tracing;
(7) communications;
(8) financing;
(9) other relevant components of organizational capacity;
and
(10) other related activities.
(f) Supplement Not Supplant.--Amounts made available by this
section shall be used to supplement, and not supplant, amounts
otherwise made available for the purposes described in this Act.
SEC. 31002. FUNDING FOR HOSPITAL INFRASTRUCTURE.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $10,000,000,000, to remain
available until expended, to carry out subsection (b) consistent with
enhancing the goals of parts B and C of title XVI of the Public Health
Service Act (42 U.S.C. 300q et seq.).
(b) Use of Funds.--From amounts made available under subsection
(a), the Secretary shall, with priority given to applicants whose
projects will include, by design, public health emergency preparedness,
natural disaster emergency preparedness, or cybersecurity against cyber
threats, award grants to entities described in section 1610(a) of the
Public Health Service Act (42 U.S.C. 300r(a)) for purposes of
increasing capacity and updating hospitals and other medical facilities
in order to better serve communities in need.
(c) Conditions.--The following requirements of parts B and C of
title XVI of the Public Health Service Act (42 U.S.C. 300r et seq.)
shall apply to funds made available under this section:
(1) The requirements related to reasonable volume of care
described under section 1621(b)(1)(K)(ii) of such Act (42
U.S.C. 300s-1(b)(1)(K)(ii)).
(2) Section 1621(b)(1)(I) of such Act (42 U.S.C. 300s-
1(b)(1)(I)).
(3) Any other provision of such parts that the Secretary
determines (as prescribed by regulation) to be appropriate to
carry out this section.
SEC. 31003. FUNDING FOR COMMUNITY HEALTH CENTER CAPITAL GRANTS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $10,000,000,000, to remain
available until expended, for necessary expenses for awarding grants
and entering into cooperative agreements for capital projects to health
centers funded under section 330 of the Public Health Service Act (42
U.S.C. 254b) to be awarded without regard to the time limitation in
subsection (e)(3) and subsections (e)(6)(A)(iii), (e)(6)(B)(iii), and
(r)(2)(B) of such section 330, and for necessary expenses for awarding
grants and cooperative agreements for capital projects to Federally
qualified health centers, as described in section 1861(aa)(4)(B) of the
Social Security Act (42 U.S.C. 1395x(aa)(4)(B)). The Secretary shall
take such steps as may be necessary to expedite the awarding of such
grants to Federally qualified health centers for capital projects.
(b) Use of Funds.--Amounts made available to a recipient of a grant
or cooperative agreement pursuant to subsection (a) shall be used for
health center facility alteration, renovation, remodeling, expansion,
construction, and other capital improvement costs, including the costs
of amortizing the principal of, and paying interest on, loans for such
purposes.
SEC. 31004. FUNDING FOR COMMUNITY-BASED CARE INFRASTRUCTURE.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $500,000,000, to remain
available until expended, for purposes of making awards to qualified
teaching health centers (as defined in section 340H of the Public
Health Service Act (42 U.S.C. 256h)), behavioral health care centers
(as defined by the Secretary to include both substance abuse and mental
health care facilities), and pediatric mental health care providers (as
used in section 330M(b)(1)(G) of the Public Health Service Act (42
U.S.C. 254c-19(b)(1)(G))).
(b) Use of Funds.--Amounts made available pursuant to subsection
(a) shall be used to support the improvement, renovation, or
modernization of infrastructure at such centers, including to respond
to public health emergencies declared under section 319 of the Public
Health Service Act (42 U.S.C. 247d).
SEC. 31005. FUNDING FOR SCHOOLS OF MEDICINE IN UNDERSERVED AREAS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $1,000,000,000, to remain
available until expended, for purposes of making awards to eligible
entities for the establishment, improvement, or expansion of an
allopathic or osteopathic school of medicine, or a branch campus of an
allopathic or osteopathic school of medicine, consistent with
subsection (b).
(b) Use of Funds.--The Secretary, acting through the Administrator
of the Health Resources and Services Administration, shall, with
priority given to minority-serving institutions described in section
371(a) of the Higher Education Act of 1965 (20 U.S.C. 1067q(a)), and
taking into consideration equitable distribution of awards among the
geographical regions of the United States (which shall include rural
regions and populations as defined by the Secretary for the purposes of
this section) and the locations of existing schools of medicine and
osteopathic medicine, use amounts appropriated by subsection (a) to
award grants to eligible entities to--
(1) recruit, enroll, and retain students, including
individuals who are from disadvantaged backgrounds (including
racial and ethnic groups underrepresented among medical
students and health professions), individuals from rural and
underserved areas, low-income individuals, and first generation
college students (as defined in section 402A(h)(3) of the
Higher Education Act of 1965 (20 U.S.C. 1070a-11(h)(3))), at a
school of medicine or osteopathic medicine or branch campus of
a school of medicine or osteopathic medicine;
(2) develop, implement, and expand curriculum that
emphasizes care for rural and underserved populations,
including accessible and culturally appropriate and
linguistically appropriate care and services, at such school or
branch campus;
(3) plan and construct a school of medicine or osteopathic
medicine in an area in which no other such school or branch
campus of such a school is based;
(4) plan, develop, and meet criteria for accreditation for
a school of medicine or osteopathic medicine or branch campus
of such a school;
(5) hire faculty, including faculty from racial and ethnic
groups who are underrepresented among the medical and other
health professions, and other staff to serve at such a school
or branch campus;
(6) support educational programs at such a school or branch
campus, including modernizing curriculum;
(7) modernize and expand infrastructure at such a school or
branch campus; or
(8) support other activities that the Secretary determines
will further the establishment, improvement, or expansion of a
school of medicine or osteopathic medicine or branch campus of
a school of medicine or osteopathic medicine.
(c) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means an
institution of higher education as defined in section 101 of
the Higher Education Act of 1965 (20 U.S.C. 1001).
(2) Branch campus.--
(A) In general.--The term ``branch campus'', with
respect to a school of medicine or osteopathic
medicine, means an additional location of such school
that is geographically apart and independent of the
main campus, at which the school offers at least 50
percent of the program leading to a degree of doctor of
medicine or doctor of osteopathy that is offered at the
main campus.
(B) Independence from main campus.--For purposes of
subparagraph (A), the location of a school described in
such subparagraph shall be considered to be independent
of the main campus described in such subparagraph if
the location--
(i) is permanent in nature;
(ii) offers courses in educational programs
leading to a degree, certificate, or other
recognized educational credential;
(iii) has its own faculty and
administrative or supervisory organization; and
(iv) has its own budgetary and hiring
authority.
SEC. 31006. FUNDING FOR NURSING EDUCATION ENHANCEMENT AND MODERNIZATION
GRANTS IN UNDERSERVED AREAS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $1,000,000,000, to remain
available until expended, for purposes of making awards to schools of
nursing (as defined in section 801 of the Public Health Service Act (42
U.S.C. 296)) to enhance and modernize nursing education programs and
increase the number of faculty and students at such schools.
(b) Use of Funds.--The Secretary, acting through the Administrator
of the Health Resources and Services Administration, taking into
consideration equitable distribution of awards among the geographical
regions of the United States and the capacity of a school of nursing to
provide care in underserved areas, shall use amounts appropriated by
subsection (a) to award grants for purposes of--
(1) recruiting, enrolling, and retaining students at such
school, with a priority for students from disadvantaged
backgrounds (including racial or ethnic groups underrepresented
in the nursing workforce), individuals from rural and
underserved areas, low-income individuals, and first generation
college students (as defined in section 402A(h)(3) of the
Higher Education Act of 1965 (20 U.S.C. 1070a-11(h)(3)));
(2) creating, supporting, or modernizing educational
programs and curricula at such school;
(3) retaining current faculty, and hiring new faculty, with
an emphasis on faculty from racial or ethnic groups that are
underrepresented in the nursing workforce;
(4) modernizing infrastructure at such school, including
audiovisual or other equipment, personal protective equipment,
simulation and augmented reality resources, telehealth
technologies, and virtual and physical laboratories;
(5) partnering with a health care facility, nurse-managed
health clinic, community health center, or other facility that
provides health care, in order to provide educational
opportunities for the purpose of establishing or expanding
clinical education;
(6) enhancing and expanding nursing programs that prepare
nurse researchers and scientists;
(7) establishing nurse-led intradisciplinary and
interprofessional educational partnerships; or
(8) other activities that the Secretary determines will
further the development, improvement, and expansion of schools
of nursing.
SEC. 31007. FUNDING FOR TEACHING HEALTH CENTER GRADUATE MEDICAL
EDUCATION.
(a) In General.--In addition to amounts otherwise available, and
notwithstanding the limitations referred to in subsections (b)(2) and
(d)(2) of section 340H of the Public Health Service Act (42 U.S.C.
256h), there is appropriated to the Secretary for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated,
$6,000,000,000, to remain available until expended, for--
(1) the program of payments to teaching health centers that
operate graduate medical education programs under such section;
and
(2) the award of teaching health center development grants
pursuant to section 749A of the Public Health Service Act (42
U.S.C. 293l-1).
(b) Use of Funds.--Amounts made available pursuant to subsection
(a) shall be used for the following activities:
(1) For making payments to establish new approved graduate
medical residency training programs pursuant to section
340H(a)(1)(C) of the Public Health Service Act (42 U.S.C.
256h(a)(1)(C)).
(2) For making payments under section 340H(a)(1)(A) of the
Public Health Service Act (42 U.S.C. 256h(a)(1)(A))) to
qualified teaching health centers for maintenance of filled
positions at existing approved graduate medical residency
training programs.
(3) For making payments under section 340H(a)(1)(B) of the
Public Health Service Act (42 U.S.C. 256h(a)(1)(B)) for the
expansion of existing approved graduate medical residency
training programs.
(4) For making awards under section 749A of the Public
Health Service Act (42 U.S.C. 293l-1) to teaching health
centers for the purpose of establishing new accredited or
expanded primary care residency programs.
(5) To provide an increase to the per resident amount
described in section 340H(a)(2) of the Public Health Service
Act (42 U.S.C. 256h(a)(2)).
SEC. 31008. FUNDING FOR CHILDREN'S HOSPITALS THAT OPERATE GRADUATE
MEDICAL EDUCATION PROGRAMS.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $250,000,000, to remain available until
expended, for carrying out section 340E of the Public Health Service
Act (42 U.S.C. 256e).
SEC. 31009. FUNDING FOR THE NURSE CORPS.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $300,000,000, to remain available until
expended, for carrying out section 846 of the Public Health Service Act
(42 U.S.C. 297n).
PART 2--PANDEMIC PREPAREDNESS
SEC. 31021. FUNDING FOR LABORATORY ACTIVITIES AT THE CENTERS FOR
DISEASE CONTROL AND PREVENTION.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $5,000,000,000 for purposes
of carrying out, acting through the Director of the Centers for Disease
Control and Prevention (in this section referred to as the
``Director''), activities described in subsection (b), to remain
available until expended.
(b) Use of Funds.--Amounts made available by subsection (a) shall
be used for the following activities:
(1) Supporting renovation, expansion, and modernization of
State and local public health laboratory infrastructure (as the
term ``laboratory'' is defined in section 353 of the Public
Health Service Act (42 U.S.C. 263a)), including--
(A) increasing and enhancing testing and response
capacity;
(B) upgrades and expansion of the Laboratory
Response Network for rapid outbreak detection;
(C) improving and expanding genomic sequencing
capabilities to detect emerging diseases and variant
strains;
(D) expanding biosafety and biosecurity capacity;
and
(E) making other laboratory enhancements and
modernization as determined by the Director to be
important for maintaining public health.
(2) Renovating, expanding, and modernizing laboratories of
the Centers for Disease Control and Prevention as described in
subparagraphs (A) through (E) of paragraph (1).
(3) Enhancing the ability of the Centers for Disease
Control and Prevention to monitor and exercise oversight over
biosafety and biosecurity of State and local public health
laboratories.
SEC. 31022. FUNDING FOR STRENGTHENING VACCINE CONFIDENCE.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $1,250,000,000, to remain
available until expended, to carry out, acting through the Director of
the Centers for Disease Control and Prevention, directly or by making
grants to public or private entities, activities described in
subsection (b) in the United States, including its territories and
possessions.
(b) Use of Funds.--Amounts made available by subsection (a) shall
be used to--
(1) strengthen vaccine confidence;
(2) strengthen routinely recommended vaccine programs; and
(3) improve rates of vaccination, including through
activities described in section 313 of the Public Health
Service Act (42 U.S.C. 245).
SEC. 31023. FUNDING FOR SURVEILLANCE ACTIVITIES AT THE CENTERS FOR
DISEASE CONTROL AND PREVENTION.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $1,000,000,000, to remain
available until expended, to carry out, acting through the Director of
the Centers for Disease Control and Prevention, directly or by making
grants to public or private entities, activities described in
subsection (b).
(b) Use of Funds.--Amounts made available by subsection (a) shall
be used to--
(1) enhance and strengthen early warning and detection
systems, including public health and health care surveillance,
wastewater testing, and global and domestic genomic
surveillance;
(2) enhance and strengthen surveillance based in hospitals
and other health care providers or facilities, and outpatient
facility surveillance for severe acute respiratory infection,
influenza-like illness, acute febrile illness, and other
diseases as determined by the Director of the Centers for
Disease Control and Prevention to be in the interest of public
health; and
(3) strengthen the antibiotic resistance initiative program
to improve research, stewardship, genomic detection
capabilities, and surveillance of existing and emerging
antimicrobial resistant pathogens.
SEC. 31024. FUNDING FOR DATA MODERNIZATION AT THE CENTERS FOR DISEASE
CONTROL AND PREVENTION.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $500,000,000, to remain
available until expended--
(1) to carry out, acting through the Director of the
Centers for Disease Control and Prevention, directly or by
making grants to public or private entities, activities
described in subsection (b); and
(2) to supplement other available funds to carry out
similar data modernization activities authorized by the Public
Health Service Act (42 U.S.C. 201 et seq.).
(b) Use of Funds.--Amounts made available by subsection (a) shall
be used for the following:
(1) Supporting public health data surveillance,
aggregation, and analytics infrastructure modernization
initiatives.
(2) Enhancing reporting and workforce core competencies in
informatics and digital health.
(3) Expanding and maintaining efforts to modernize the
United States disease warning system to forecast and track
hotspots and emerging biological threats.
SEC. 31025. FUNDING FOR PUBLIC HEALTH AND PREPAREDNESS RESEARCH,
DEVELOPMENT, AND COUNTERMEASURE CAPACITY.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, to remain available until
expended, to carry out activities, acting through the Assistant
Secretary for Preparedness and Response, to prepare for, and respond
to, public health emergencies declared under section 319 of the Public
Health Service Act (42 U.S.C. 247d)--
(1) $3,000,000,000 to support surge capacity, including
through construction, expansion, or modernization of
facilities, to respond to a public health emergency, for
procurement and domestic manufacture of drugs, active
pharmaceutical ingredients, vaccines and other biological
products, diagnostic technologies and products, personal
protective equipment, medical devices, vials, syringes,
needles, and other components or supplies for the Strategic
National Stockpile under section 319F-2 of the Public Health
Service Act (42 U.S.C. 247d-6b);
(2) $2,000,000,000 to support expanded global and domestic
vaccine production capacity, including by developing or
acquiring new technology and expanding manufacturing capacity
through construction, expansion, or modernization of
facilities;
(3) $2,000,000,000 to support activities to mitigate supply
chain risks and enhance supply chain elasticity and resilience
for critical drugs, active pharmaceutical ingredients, and
supplies (including essential medicines, medical
countermeasures, and supplies in shortage or at risk of
shortage), drug and vaccine raw materials, and other supplies,
as the Secretary determines appropriate, including
construction, expansion, or modernization of facilities,
adoption of advanced manufacturing processes, and other
activities to support domestic manufacturing of such supplies;
(4) $500,000,000 to support activities conducted by the
Biomedical Advanced Research and Development Authority for
advanced research, standards development, and domestic
manufacturing capacity for drugs, including essential
medicines, diagnostics, vaccines, therapeutics, and personal
protective equipment; and
(5) $500,000,000 to support increased biosafety and
biosecurity in research on infectious diseases, including by
modernization or improvement of facilities.
PART 3--INNOVATION
SEC. 31031. FUNDING FOR ADVANCED RESEARCH PROJECTS FOR HEALTH.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $3,000,000,000, to remain
available until expended, to establish the Advanced Research Projects
Agency for Health (in this section referred to as the ``ARPA-H'') for
purposes of making pivotal investments in breakthrough technologies and
broadly applicable platforms, capabilities, resources, and solutions
that have the potential to transform important areas of medicine and
health for the benefit of all individuals and that cannot readily be
accomplished through traditional biomedical research or commercial
activity.
(b) Use of Funds.--Amounts made available by subsection (a) shall
be used to--
(1) hire a Director to head the ARPA-H (for a term of no
more than 5 years subject to one renewal period); and
(2) acting through the Director of the ARPA-H, in
consultation, as applicable, with the Director of the National
Institutes of Health, the Commissioner of Food and Drugs, the
Administrator of the Centers for Medicare & Medicaid Services,
the Director of the Biomedical Advanced Research and
Development Authority, the Deputy Assistant Secretary for
Minority Health, and the heads of other agencies, shall--
(A) ensure to the maximum extent practicable that
the projects and activities of the ARPA-H funded by
subsection (a) are coordinated with, and do not
duplicate the efforts of, programs within, or research
conducted or supported by, the Department of Health and
Human Services; and
(B) in using amounts made available by subsection
(a), expedite the development, application, and
implementation of health breakthroughs to prevent,
detect, and treat serious or life-threatening diseases,
including--
(i) providing awards in the form of grants,
contracts, cooperative agreements, prizes, and
other transactions (as defined under section
402(n) of the Public Health Service Act (42
U.S.C. 282(n))) to entities to carry out
advanced research projects for health,
including through multiyear contracts (subject
to the availability of funds) and prize
competitions;
(ii) developing funding criteria and
evaluation criteria to assess projects funded
under clause (i);
(iii) establishing metrics or criteria to
prioritize investments and research that should
be funded under clause (i), including the
novelty, scientific, and technical merit of
proposed projects, the future commercial
applications of projects, and the unmet need
within patient populations;
(iv) identifying and promoting potential
advances in basic research that will assist in
carrying out advanced health research and
development;
(v) identifying areas of research and
innovation that are high-risk, high-reward or
where the incentives of the commercial market
are unlikely to result in adequate or timely
development;
(vi) supporting collaboration and
communication among other Federal agencies,
including both health and scientific agencies,
institutions of higher education, private or
public research institutions, private entities,
including biotechnology and pharmaceutical
companies, and nonprofit organizations,
including patient advocacy groups, including
soliciting data, if applicable;
(vii) translating scientific discoveries
into technological innovations, including
through--
(I) collaboration with the Food and
Drug Administration on the development
of medical products to facilitate
transformation of breakthroughs in
biomedicine into tangible solutions for
patients; and
(II) ensuring that medical product
development programs gather nonclinical
and clinical data necessary for
approval as efficiently as practicable;
(viii) hiring and appointing personnel
necessary to carry out activities described in
this section, including--
(I) making and rescinding
appointments of scientific, medical,
and professional personnel;
(II) designating personnel to serve
as program managers (for terms of no
more than 3 years subject to one
renewal period) to establish research
and development goals for the ARPA-H,
provide project oversight and
management of strategic initiatives,
recommend restructure, expansion, or
termination of research projects under
this section, as necessary and
appropriate, and carry out other
activities described in this
subsection;
(III) recruiting and retaining a
diverse workforce, including
individuals underrepresented in science
and medicine and, racial and ethnic
minorities; and
(IV) hiring and appointing
administrative, financial, and
information technology staff as
necessary to carry out this subsection;
(ix) compensating personnel at a rate to be
determined by the Director of the ARPA-H;
(x) acquiring (by purchase, lease,
condemnation, or otherwise), constructing,
improving, repairing, operating, and
maintaining such real and personal property as
are necessary to carry out this section; and
(xi) entering into or terminating
contracts, including multiyear contracts, as
appropriate to support advanced research
projects for health.
(c) Funding Awards.--Research funded by amounts made available
under this section shall not be subject to the requirements of section
406(a)(3)(A)(ii) or 492 of the Public Health Service Act (42 U.S.C.
284a(a)(3)(A)(ii), 289a).
(d) Supplement Not Supplant.--Funds appropriated by this section
shall be used to supplement and not supplant any appropriations for
institutes and centers of the National Institutes of Health.
PART 4--MATERNAL MORTALITY
SEC. 31041. FUNDING FOR LOCAL ENTITIES ADDRESSING SOCIAL DETERMINANTS
OF MATERNAL HEALTH.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $175,000,000, to remain
available until expended, to award grants to community-based
organizations, Urban Indian organizations, Native Hawaiian
organizations, or other nonprofit organizations working with a
community-based organization, operating in areas with high rates of
adverse maternal health outcomes or with significant racial or ethnic
disparities in maternal health outcomes.
(b) Use of Funding.--Amounts made available by subsection (a) shall
be used for the following activities:
(1) Addressing social determinants of maternal health for
pregnant and postpartum individuals and eliminating racial and
ethnic disparities in maternal health outcomes by--
(A) hiring, training, or retaining staff;
(B) developing or distributing culturally and
linguistically appropriate resources for social
services programs;
(C) offering programs and resources to address
social determinants of health;
(D) conducting demonstration projects to address
social determinants of health;
(E) establishing a culturally and linguistically
appropriate resource center that provides multiple
social services programs in a single location; and
(F) consulting with pregnant and postpartum
individuals to conduct an assessment of the activities
conducted under this section.
(2) Promoting evidence-based health literacy and pregnancy,
childbirth, and parenting education for pregnant and postpartum
individuals, and individuals seeking to become pregnant.
(3) Providing support from perinatal health workers,
support persons, and providers to pregnant and postpartum
individuals.
(4) Providing culturally congruent, linguistically
appropriate, and trauma-informed training to perinatal health
workers.
(5) Conducting outreach to eligible entities to encourage
such entities to apply for grants under this section.
(6) Providing technical assistance to the eligible entities
receiving funding under this section.
(c) Minimum for Community-Based Organizations.--Of the amounts made
available by subsection (a), the Secretary shall award not less than
$75,000,000 for the Office of Minority Health to award grants to
community-based organizations to carry out the activities described in
subsection (b).
SEC. 31042. FUNDING TO GROW AND DIVERSIFY THE NURSING WORKFORCE IN
MATERNAL AND PERINATAL HEALTH.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $150,000,000, to remain
available until expended, for grants to accredited schools of nursing
for the purpose of growing and diversifying the perinatal nursing
workforce.
(b) Uses of Funds.--
(1) Grantees.--Prioritizing students and registered nurses
who practice in a health professional shortage area designated
under such section of the Public Health Service Act, amounts
made available to grantees by subsection (a) shall be used for
the following activities:
(A) Providing scholarships to students seeking to
become nurse practitioners whose education includes a
focus on maternal and perinatal health.
(B) Providing scholarships to students seeking to
become clinical nurse specialists whose education
includes a focus on maternal and perinatal health.
(C) Providing scholarships to students seeking to
become certified nurse midwives.
(D) Providing scholarships to registered nurses
seeking certification as an obstetrics and gynecology
registered nurse.
(2) Secretary.--The Secretary shall use amounts made
available pursuant to subsection (a) for the following
activities:
(A) Developing and implementing strategies to
recruit and retain a diverse pool of students seeking
to enter careers focused on maternal and perinatal
health.
(B) Developing partnerships with practice settings
in a health professional shortage area designated under
section 332 of the Public Health Service Act (42 U.S.C.
254e) for the clinical placements of students at the
schools receiving such grants.
(C) Developing curriculum for students seeking to
enter careers focused on maternal and perinatal health
that includes training programs on bias, racism, or
discrimination.
(D) Carrying out other activities under title VIII
of the Public Health Service Act (42 U.S.C. 296 et
seq.) for the purpose under subsection (a).
SEC. 31043. FUNDING TO GROW AND DIVERSIFY THE DOULA WORKFORCE.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $50,000,000, to remain
available until expended, for grants to health professions schools,
academic health centers, State or local governments, territories,
Indian Tribes and Tribal organizations, Urban Indian organizations,
Native Hawaiian organizations, or other appropriate public or private
nonprofit entities (or consortia of entities, including entities
promoting multidisciplinary approaches), to establish or expand
programs to grow and diversify the doula workforce.
(b) Use of Funds.--Amounts made available by subsection (a) shall
be used for the following activities:
(1) Establishing programs that provide education and
training to individuals seeking appropriate training or
certification as doulas.
(2) Expanding the capacity of existing programs described
in paragraph (1), for the purpose of increasing the number of
students enrolled in such programs, including by awarding
scholarships for students.
(3) Developing and implementing strategies to recruit and
retain students from underserved communities, particularly from
demographic groups experiencing high rates of maternal
mortality and severe maternal morbidity, including racial and
ethnic minority groups, into programs described in paragraphs
(1) and (2).
SEC. 31044. FUNDING TO GROW AND DIVERSIFY THE MATERNAL MENTAL HEALTH
AND SUBSTANCE USE DISORDER TREATMENT WORKFORCE.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $75,000,000, to remain
available until expended, for grants to health professions schools,
academic health centers, State or local governments, territories,
Indian Tribes and Tribal organizations, Urban Indian organizations,
Native Hawaiian organizations, or other appropriate public or private
nonprofit entities (or consortia of entities, including entities
promoting multidisciplinary approaches), to establish or expand
programs to grow and diversify the maternal mental health and substance
use disorder treatment workforce.
(b) Use of Funds.--Amounts made available by subsection (a) shall
be used for the following activities:
(1) Establishing programs that provide education and
training to individuals seeking appropriate licensing or
certification as mental health or substance use disorder
treatment providers who plan to specialize in maternal mental
health conditions or substance use disorders.
(2) Expanding the capacity of existing programs described
in paragraph (1), for the purposes of increasing the number of
students enrolled in such programs, including by awarding
scholarships for students.
(3) Developing and implementing strategies to recruit and
retain students from underserved communities into programs
described in paragraphs (1) and (2).
SEC. 31045. FUNDING FOR MATERNAL MENTAL HEALTH EQUITY GRANT PROGRAMS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $100,000,000, to remain
available until expended, for grants to community-based organizations,
Urban Indian organizations, Native Hawaiian organizations, health care
providers, accredited medical schools, accredited schools of nursing,
teaching hospitals, accredited midwifery programs, physician assistant
education programs, residency or fellowship programs, or other
nonprofit organizations, schools, or programs determined appropriate by
the Secretary, to address maternal mental health conditions and
substance use disorders with respect to pregnant, lactating, and
postpartum individuals in areas with high rates of adverse maternal
health outcomes or with significant racial or ethnic disparities in
maternal health outcomes.
(b) Use of Funds.--Amounts made available pursuant to subsection
(a), prioritizing community-based organizations, shall be for the
following activities:
(1) Establishing or expanding maternity care programs to
improve the integration of mental health and substance use
disorder treatment services into primary care settings where
pregnant individuals regularly receive health care services.
(2) Establishing or expanding group prenatal care programs
or postpartum care programs.
(3) Expanding existing programs that improve maternal
mental health and substance use disorder treatment from the
preconception through the postpartum periods, with a focus on
individuals from racial and ethnic minority groups with high
rates of maternal mortality and morbidity.
(4) Providing services and support for individuals with
maternal mental health conditions and substance use disorders,
starting in pregnancy and continuing through the postpartum
period.
(5) Addressing stigma associated with maternal mental
health conditions and substance use disorders, with a focus on
racial and ethnic minority groups.
(6) Raising awareness of warning signs of maternal mental
health conditions and substance use disorders, with a focus on
pregnant, lactating, and postpartum individuals from racial and
ethnic minority groups.
(7) Establishing or expanding programs to prevent suicide
or self-harm among pregnant, lactating, and postpartum
individuals.
(8) Offering evidence-informed programs at freestanding
birth centers that provide maternal mental health and substance
use disorder education, treatments, and services, and other
services for individuals throughout the prenatal and postpartum
period.
(9) Establishing or expanding programs to provide education
and training to maternity care providers with respect to--
(A) identifying potential warning signs for
maternal mental health conditions or substance use
disorders in pregnant, lactating, and postpartum
individuals, with a focus on individuals from racial
and ethnic minority groups; and
(B) in the case where such providers identify such
warning signs, offering referrals to mental health
substance use disorder treatment professionals.
(10) Developing a national website, or other source, that
includes information on health care providers who treat
maternal mental health conditions and substance use disorders.
(11) Establishing or expanding programs in communities to
improve coordination between maternity care providers and
mental health and substance use disorder providers who treat
maternal mental health conditions and substance use disorders.
(12) Carrying other programs aligned with evidence-based or
evidence-informed practices for addressing maternal mental
health conditions and substance use disorders for pregnant and
postpartum individuals from racial and ethnic minority groups.
SEC. 31046. FUNDING FOR EDUCATION AND TRAINING AT HEALTH PROFESSIONS
SCHOOLS TO IDENTIFY AND ADDRESS HEALTH RISKS ASSOCIATED
WITH CLIMATE CHANGE.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $85,000,000, to remain
available until expended, for grants to accredited medical schools,
accredited schools of nursing, teaching hospitals, accredited midwifery
programs, physician assistant education programs, residency or
fellowship programs, or other schools or programs determined
appropriate by the Secretary, to support the development and
integration of education and training programs for identifying and
addressing health risks associated with climate change for pregnant,
lactating, and postpartum individuals.
(b) Use of Funds.--Amounts made available by subsection (a) shall
be used for developing, integrating, and implementing curriculum and
continuing education that focuses on the following:
(1) Identifying health risks associated with climate change
for pregnant, lactating, and postpartum individuals and
individuals with the intent to become pregnant.
(2) How health risks associated with climate change affect
pregnant, lactating, and postpartum individuals and individuals
with the intent to become pregnant.
(3) Racial and ethnic disparities in exposure to, and the
effects of, health risks associated with climate change for
pregnant, lactating, and postpartum individuals and individuals
with the intent to become pregnant.
(4) Patient counseling and mitigation strategies relating
to health risks associated with climate change for pregnant,
lactating, and postpartum individuals.
(5) Relevant services and support for pregnant, lactating,
and postpartum individuals relating to health risks associated
with climate change and strategies for ensuring such
individuals have access to such services and support.
(6) Implicit and explicit bias, racism, and discrimination
in providing care to pregnant, lactating, and postpartum
individuals and individuals with the intent to become pregnant.
SEC. 31047. FUNDING FOR MINORITY-SERVING INSTITUTIONS TO STUDY MATERNAL
MORTALITY, SEVERE MATERNAL MORBIDITY, AND ADVERSE
MATERNAL HEALTH OUTCOMES.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $50,000,000, to remain
available until expended for minority-serving institutions described in
section 371 of the Higher Education Act of 1965 (20 U.S.C. 1067q).
(b) Use of Funds.--Amounts made available by subsection (a) shall
be used for the following activities:
(1) Developing and implementing systematic processes of
listening to the stories of pregnant and postpartum individuals
from racial and ethnic minority groups, and perinatal health
workers supporting such individuals, to fully understand the
causes of, and inform potential solutions to, the maternal
mortality and severe maternal morbidity crisis within their
respective communities.
(2) Assessing the potential causes of relatively low rates
of maternal mortality among Hispanic individuals and foreign-
born Black women.
(3) Assessing differences in rates of adverse maternal
health outcomes among subgroups identifying as Hispanic.
(4) Conducting outreach to eligible minority-serving
institutions to raise awareness of the availability of the
grants.
(5) Providing technical assistance on the application
process for such grant.
(6) Promoting capacity building to eligible entities.
SEC. 31048. FUNDING FOR IDENTIFICATION OF MATERNITY CARE HEALTH
PROFESSIONAL TARGET AREAS.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $25,000,000, to remain available until
expended, for carrying out section 332(k) of the Public Health Service
Act (42 U.S.C. 254e(k)).
SEC. 31049. FUNDING FOR MATERNAL MORTALITY REVIEW COMMITTEES TO PROMOTE
REPRESENTATIVE COMMUNITY ENGAGEMENT.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $50,000,000, to remain available until
expended, for carrying out section 317K(d) of the Public Health Service
Act (42 U.S.C. 247b-12(d)) to promote community engagement in maternal
mortality review committees to increase the diversity of a committee's
membership with respect to race and ethnicity, location, and
professional background.
SEC. 31050. FUNDING FOR THE SURVEILLANCE FOR EMERGING THREATS TO
MOTHERS AND BABIES.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $100,000,000, to remain
available until expended, for carrying out section 317K of the Public
Health Service Act (42 U.S.C. 247b-12) with respect to conducting
surveillance for emerging threats to mothers and babies.
(b) Use of Funds.--Amounts made available by subsection (a) shall
be used for the following activities:
(1) Expanding the Surveillance for Emerging Threats to
Mothers and Babies activities of the Centers for Disease
Control and Prevention.
(2) Working with public health, clinical, and community-
based organizations to provide timely, continually updated,
evidence-based guidance to families and health care providers
on ways to reduce risk to pregnant and postpartum individuals
and their newborns and tailor interventions to improve their
long-term health.
(3) Partnering with more State, Tribal, territorial, and
local public health programs in the collection and analysis of
clinical data on the impact of COVID-19 on pregnant and
postpartum patients and their newborns, particularly among
patients from racial and ethnic minority groups.
(4) Establishing regionally based centers of excellence to
offer medical, public health, and other knowledge (in
coordination with State and Tribal public health authorities)
to ensure that communities, especially communities with large
populations of individuals from racial and ethnic minority
groups, can help pregnant and postpartum individuals and
newborns get the care and support they need.
SEC. 31051. FUNDING FOR ENHANCING REVIEWS AND SURVEILLANCE TO ELIMINATE
MATERNAL MORTALITY PROGRAM.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $30,000,000, to remain
available until expended, for carrying out the Enhancing Reviews and
Surveillance to Eliminate Maternal Mortality program established under
section 317K of the Public Health Service Act (42 U.S.C. 247b-12).
(b) Use of Funds.--Amounts made available by subsection (a) shall
be used for the following activities:
(1) Expanding the Enhancing Reviews and Surveillance to
Eliminate Maternal Mortality program (commonly known as the
``ERASE MM program'') of the Centers for Disease Control and
Prevention.
(2) Expanding partnerships with States, territories, Indian
Tribes, and Tribal organizations to support Maternal Mortality
Review Committees.
(3) Providing technical assistance to existing maternal
mortality review committees.
SEC. 31052. FUNDING FOR THE PREGNANCY RISK ASSESSMENT MONITORING
SYSTEM.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $15,000,000, to remain
available until expended, for carrying out section 317K of the Public
Health Service Act (42 U.S.C. 247b-12) with respect to the Pregnancy
Risk Assessment Monitoring System.
(b) Use of Funds.--Amounts made available by subsection (a) shall
be used for the following activities:
(1) Supporting COVID-19 supplements to the Pregnancy Risk
Assessment Monitoring System questionnaire.
(2) Conducting a rapid assessment of COVID-19 awareness,
impact on care and experiences, and use of preventive measures
among pregnant, laboring and birthing, and postpartum
individuals.
(3) Supporting the transition of the questionnaire
described in paragraph (1) to an electronic platform and
expanding the distribution of the questionnaire to a larger
population, with a special focus on reaching underrepresented
communities.
SEC. 31053. FUNDING FOR THE NATIONAL INSTITUTE OF CHILD HEALTH AND
HUMAN DEVELOPMENT.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $15,000,000, to remain available until
expended, for carrying out section 301 of the Public Health Service Act
(42 U.S.C. 241) and title IV of the Public Health Service Act (42
U.S.C. 281 et seq.) with respect to child health and human development,
to conduct or support research for interventions to mitigate the
effects of the COVID-19 public health emergency on pregnant, lactating,
and postpartum individuals, with a particular focus on individuals from
racial and ethnic minority groups.
SEC. 31054. FUNDING FOR EXPANDING THE USE OF TECHNOLOGY-ENABLED
COLLABORATIVE LEARNING AND CAPACITY MODELS FOR PREGNANT
AND POSTPARTUM INDIVIDUALS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $30,000,000, to remain
available until expended, for grants to community-based organizations,
health care providers, accredited medical schools, accredited schools
of nursing, teaching hospitals, accredited midwifery programs,
physician assistant education programs, residency or fellowship
programs, or other schools or programs determined appropriate by the
Secretary, that are operating in health professional shortage areas
designated under section 332 of the Public Health Service Act (42
U.S.C. 254e) with high rates of adverse maternal health outcomes or
significant racial and ethnic disparities in maternal health outcomes,
to evaluate, develop, and expand the use of technology-enabled
collaborative learning.
(b) Use of Funds.--
(1) Grantees.--A recipient of a grant awarded pursuant to
subsection (a) shall use such grant amounts to--
(A) train maternal health care providers and
students through the use and expansion of technology-
enabled collaborative learning and capacity building
models, including hardware and software that--
(i) enables distance learning and technical
support; and
(ii) supports the secure exchange of
electronic health information; and
(B) conduct evaluations on the use of technology-
enabled collaborative learning to improve maternal
health outcomes.
(2) Secretary.--The Secretary shall use amounts made
available pursuant to subsection (a) to provide technical
assistance to recipients of grants awarded pursuant to
subsection (a) on the development, use, and sustainability of
technology-enabled collaborative learning and capacity building
models to expand access to maternal health services provided by
such entities.
SEC. 31055. FUNDING FOR PROMOTING EQUITY IN MATERNAL HEALTH OUTCOMES
THROUGH DIGITAL TOOLS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $30,000,000, to remain
available until expended, for grants to community-based organizations,
health care providers, accredited medical schools, accredited schools
of nursing, teaching hospitals, accredited midwifery programs,
physician assistant education programs, residency or fellowship
programs, or other schools or programs determined appropriate by the
Secretary, that are operating in health professional shortage areas
designated under section 332 of the Public Health Service Act (42
U.S.C. 254e) with high rates of adverse maternal health outcomes or
significant racial and ethnic disparities in maternal health outcomes
to reduce racial and ethnic disparities in maternal health outcomes by
increasing access to digital tools related to maternal health care.
(b) Use of Funds.--Amounts made available pursuant to subsection
(a) shall be used for the following activities:
(1) Increasing access to digital tools that could improve
maternal health outcomes, such as wearable technologies,
patient portals, telehealth services, and mobile phone
applications.
(2) Providing technical assistance to recipients of grants
awarded pursuant to subsection (a) on the development, use,
evaluation, and postgrant sustainability of digital tools for
purposes of promoting equity in maternal health outcomes.
SEC. 31056. FUNDING FOR ANTIDISCRIMINATION AND BIAS TRAINING.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $25,000,000, to remain
available until expended, for the purpose described in subsection (b).
(b) Use of Funds.--The Secretary shall use amounts appropriated
under subsection (a) to award competitive grants or contracts to
national nonprofit organizations focused on improving health equity,
accredited schools of medicine or nursing, and other health
professional training programs to develop, disseminate, review,
research, and evaluate training for health professionals and all staff
who interact with patients to reduce discrimination and bias in the
provision of health care, with a focus on maternal health care.
PART 5--OTHER PUBLIC HEALTH INVESTMENTS
SEC. 31061. FUNDING FOR MENTAL HEALTH AND SUBSTANCE USE DISORDER
PROFESSIONALS.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $50,000,000, to remain available until
expended, for purposes of carrying out section 597 of the Public Health
Service Act (42 U.S.C. 290ll).
SEC. 31062. FUNDING FOR PROJECT AWARE.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $30,000,000, to remain available until
expended, for carrying out section 520A of the Public Health Service
Act (42 U.S.C. 290bb-32) with respect to advancing wellness and
resiliency in education.
SEC. 31063. FUNDING FOR THE NATIONAL SUICIDE PREVENTION LIFELINE.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $75,000,000, to remain available until
expended, for advancing infrastructure for the National Suicide
Prevention Lifeline program under section 520E-3 of the Public Health
Service Act (42 U.S.C. 290bb-36c) in order to expand existing
capabilities for response in a manner that avoids duplicating existing
capabilities for text-based crisis support.
SEC. 31064. FUNDING FOR COMMUNITY VIOLENCE AND TRAUMA INTERVENTIONS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary, out of any money in the Treasury not
otherwise appropriated to remain available until expended, for the
purposes described in subsection (b):
(1) $150,000,000 for fiscal year 2022.
(2) $250,000,000 for fiscal year 2023.
(3) $450,000,000 for fiscal year 2024.
(4) $550,000,000 for each of fiscal years 2025, 2026, and
2027.
(b) Use of Funding.--The Secretary, acting through the Director of
the Centers for Disease Control and Prevention, and in consultation
with the Assistant Secretary for Mental Health and Substance Use, the
Administrator of the Health Resources and Services Administration, and
the Deputy Assistant Secretary for Minority Health and with public
health and medical professionals, victim services community-based
organizations, and other violence reduction experts, shall use amounts
appropriated by subsection (a) to support public health approaches to
reduce community violence and trauma, taking into consideration the
needs of communities with high rates of, and prevalence of risk factors
associated with, violence-related injuries and deaths, by--
(1) awarding competitive grants or contracts to local
governmental entities, States, territories, Indian Tribes and
Tribal organizations, Urban Indian organizations, hospitals and
community health centers, nonprofit community-based
organizations, culturally specific organizations, victim
services providers, or other entities as determined by the
Secretary (or consortia of such entities) to support evidence-
based, culturally competent, and developmentally appropriate
strategies to reduce community violence, including outreach and
conflict mediation, hospital-based violence intervention,
violence interruption, and services for victims and individuals
and communities at risk for experiencing violence, such as
trauma-informed mental health care and counseling, school-based
mental health services, and other services; and
(2) supporting training, technical assistance, surveillance
systems, and data collection to facilitate support for
strategies to reduce community violence and ensure safe and
healthy communities.
(c) Supplement Not Supplant.--Amounts appropriated under this
section shall be used to supplement and not supplant any Federal,
State, or local funding otherwise made available for the purposes
described in this section.
SEC. 31065. FUNDING FOR THE NATIONAL CHILD TRAUMATIC STRESS NETWORK.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $10,000,000, to remain available until
expended, for carrying out section 582 of the Public Health Service Act
(42 U.S.C. 290hh-1) with respect to addressing the problem of high-risk
or medically underserved persons who experience violence-related
stress.
SEC. 31066. FUNDING FOR HIV HEALTH CARE SERVICES PROGRAMS.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $150,000,000, to remain available until
expended, for modifications to existing contracts, and supplements to
existing grants and cooperative agreements under parts A, B, C, and D
of title XXVI of the Public Health Service Act (42 U.S.C. 300ff-11 et
seq.) and section 2692(a) of such Act (42 U.S.C. 300ff-111(a)).
SEC. 31067. SUPPLEMENTAL FUNDING FOR THE WORLD TRADE CENTER HEALTH
PROGRAM.
(a) Supplemental Fund.--
(1) In general.--Title XXXIII of the Public Health Service
Act (42 U.S.C. 300mm et seq.) is amended by adding at the end
the following:
``SEC. 3352. SUPPLEMENTAL FUND.
``(a) In General.--There is established a fund to be known as the
World Trade Center Health Program Supplemental Fund (referred to in
this section as the `Supplemental Fund'), consisting of amounts
deposited into the Supplemental Fund under subsection (b).
``(b) Amount.--Out of any money in the Treasury not otherwise
appropriated, there is appropriated for fiscal year 2022,
$2,860,000,000, for deposit into the Supplemental Fund, which amounts
shall remain available through fiscal year 2031.
``(c) Uses of Funds.--Amounts deposited into the Supplemental Fund
under subsection (b) shall be available, without further appropriation
and without regard to any spending limitation under section 3351(c), to
the WTC Program Administrator as needed at the discretion of such
Administrator for carrying out any provision in this title, including
sections 3303 and 3341(c).
``(d) Return of Funds.--Any amounts that remain in the Supplemental
Fund on September 30, 2031, shall be deposited into the Treasury as
miscellaneous receipts.''.
(2) Conforming amendments.--Title XXXIII of the Public
Health Service Act (42 U.S.C. 300mm et seq.) is amended--
(A) in section 3311(a)(4)(B)(i)(II) (42 U.S.C.
300mm-21(a)(4)(B)(i)(II)), by striking ``section 3351''
and inserting ``sections 3351 and 3352'';
(B) in section 3321(a)(3)(B)(i)(II) (42 U.S.C.
300mm-31(a)(3)(B)(i)(II)), by striking ``section 3351''
and inserting ``sections 3351 and 3352'';
(C) in section 3331 (42 U.S.C. 300mm-41)--
(i) in subsection (a), by inserting ``and
the World Trade Center Health Program
Supplemental Fund'' before the period at the
end; and
(ii) in subsection (d)--
(I) in paragraph (1)(B), by
inserting ``(excluding any expenditures
from amounts in the World Trade Center
Health Program Supplemental Fund under
section 3352)'' before the period at
the end; and
(II) in paragraph (2), in the flush
text following subparagraph (C), by
inserting ``(excluding any expenditures
from amounts in the World Trade Center
Health Program Supplemental Fund under
section 3352)'' before the period at
the end; and
(D) in section 3351(b) (42 U.S.C. 300mm-61(b))--
(i) in paragraph (2), by inserting ``or as
available from the World Trade Center Health
Program Supplemental Fund under section 3352''
before the period at the end; and
(ii) in paragraph (3), by inserting ``or as
available from the World Trade Center Health
Program Supplemental Fund under section 3352''
before the period at the end.
(b) Research Cohort for Emerging Health Impacts on Youth.--
(1) In general.--Section 3341 of the Public Health Service
Act (42 U.S.C. 300mm-51) is amended--
(A) by redesignating subsections (c) and (d) as
subsections (d) and (e), respectively; and
(B) by inserting after subsection (b) the
following:
``(c) Research Cohort for Emerging Health Impacts on Youth.--The
WTC Program Administrator shall establish a research cohort of
sufficient size to conduct research studies on the health and
educational impacts of exposure to airborne toxins, or any other hazard
or adverse condition, resulting from the September 11, 2001, terrorist
attacks on the population of individuals who were 21 years of age or
younger at the time of exposure and who are enrolled in the WTC Program
or otherwise eligible for enrollment in the Program under section
3321.''.
(2) Spending limitation exemption.--Section 3351(c)(5) of
such Act (42 U.S.C. 300mm-61(c)(5)) is amended in the matter
preceding subparagraph (A), by inserting ``(other than
subsection (c) of such section)'' after ``section 3341''.
(3) Conforming amendment.--Section 3301(f)(2)(E) of such
Act (42 U.S.C. 300mm(f)(2)(E)) is amended by striking ``section
3341(a)'' and inserting ``subsection (a) or (c) of section
3341''.
Subtitle K--Next Generation 9-1-1
SEC. 31101. DEPLOYMENT OF NEXT GENERATION 9-1-1.
(a) Appropriation.--
(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Assistant Secretary for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $10,000,000,000, to remain available
until September 30, 2030, to make grants to eligible entities
for implementing Next Generation 9-1-1, operating and
maintaining Next Generation 9-1-1, training directly related to
implementing, maintaining, and operating Next Generation 9-1-1,
if the cost related to such training does not exceed 3 percent
of the total grant award, and planning and implementation
activities, if the cost related to such planning and
implementation does not exceed 1 percent of the total grant
award.
(2) Administrative expenses.--Of the amount appropriated in
this subsection, the Assistant Secretary may use not more than
2 percent to implement and administer this section.
(3) Rulemaking required.--Not later than 180 days after the
date of the enactment of this Act, the Assistant Secretary
shall, after public notice and opportunity for comment, issue
rules to implement this section.
(b) Eligibility.--
(1) In general.--The Assistant Secretary shall not make a
grant under this section to any eligible entity unless such
entity certifies to the Assistant Secretary that--
(A) no portion of any 9-1-1 fee or charge imposed
by the eligible entity, or (in the case that the
eligible entity is not a covered State or Tribal
organization) any State or taxing jurisdiction within
which the eligible entity will carry out activities
using grant funds, will be obligated or expended for
any purpose or function other than a purpose or
function for which the obligation or expenditure of
such a fee or charge is acceptable (as determined by
the Federal Communications Commission pursuant to the
rules issued under section 6(f)(3) of the Wireless
Communications and Public Safety Act of 1999 (47 U.S.C.
615a-1(f)(3)), as such rules are in effect on the date
on which the eligible entity makes the certification)
during any period during which the funds from the grant
are available to the eligible entity;
(B) any funds received by the eligible entity will
be used to support the deployment of Next Generation 9-
1-1 in a manner that ensures reliability,
interoperability, and requires the use of commonly
accepted standards;
(C) the eligible entity has established, or commits
to establish not later than 3 years after the date on
which the funds are distributed to the eligible entity,
a sustainable funding mechanism for Next Generation 9-
1-1 and effective cybersecurity for Next Generation 9-
1-1; and
(D) no funds received by the eligible entity will
be used to purchase, rent, lease, or otherwise obtain
covered communications equipment or services (as
defined in section 9 of the Secure and Trusted
Communications Networks Act of 2019 (47 U.S.C. 1608)).
(2) Other requirements.--The Assistant Secretary shall not
make a grant under this section to an eligible entity unless
such entity certifies to the Assistant Secretary that--
(A) the eligible entity, and (in the case that the
eligible entity is not a covered State or Tribal
organization) any covered State within which the
eligible entity will carry out activities using grant
funds, has designated a single officer or governmental
body to serve as the point of contact to coordinate the
implementation of Next Generation 9-1-1 for such
covered State or Tribal organization; and
(B) the eligible entity has developed and submitted
a plan for the coordination and implementation of Next
Generation 9-1-1 consistent with the requirements of
the Assistant Secretary that, at a minimum--
(i) ensures interoperability, reliability,
resiliency, and the use of commonly accepted
standards;
(ii) enables emergency communications
centers to process, analyze, and store
multimedia, data, and other information;
(iii) incorporates cybersecurity tools,
including intrusion detection and prevention
measures;
(iv) includes strategies for coordinating
cybersecurity information sharing between
Federal, covered State, Tribal, and local
government partners;
(v) includes a governance body or bodies,
either by creation of a new body or bodies or
use of an existing body or bodies, for the
development and deployment of Next Generation
9-1-1;
(vi) creates efficiencies related to Next
Generation 9-1-1 functions, including the
virtualization and sharing of infrastructure,
equipment, and services; and
(vii) utilizes an effective, competitive
approach to establishing authentication,
credentialing, secure connections, and access
in deploying Next Generation 9-1-1, including
by--
(I) requiring certificate
authorities to be capable of cross-
certification with other authorities;
(II) avoiding risk of a single
point of failure or vulnerability; and
(III) adhering to Federal agency
best practices such as those
promulgated by the National Institute
of Standards and Technology.
(3) Return of funding.--If, after making a grant award to
an eligible entity under subsection (a), the Assistant
Secretary determines that such eligible entity has acted in a
manner not in accordance with the certifications required under
this subsection, the Assistant Secretary shall, after affording
due process, rescind such grant award and recoup funds from
such eligible entity.
(c) Oversight.--In addition to amounts otherwise available, there
is appropriated to the Inspector General of the Department of Commerce
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $10,000,000, to remain available until September 30,
2030, to conduct oversight to combat waste, fraud, and abuse of grant
awards made under this section.
SEC. 31102. ESTABLISHMENT OF NEXT GENERATION 9-1-1 CYBERSECURITY
CENTER.
In addition to amounts otherwise available, there is appropriated
to the Assistant Secretary for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $80,000,000, to remain
available until September 30, 2030, to establish a Next Generation 9-1-
1 Cybersecurity Center to coordinate with covered State, local, and
regional governments on the sharing of cybersecurity information about,
the analysis of cybersecurity threats to, and guidelines for strategies
to detect and prevent cybersecurity intrusions relating to Next
Generation 9-1-1.
SEC. 31103. PUBLIC SAFETY NEXT GENERATION 9-1-1 ADVISORY BOARD.
In addition to amounts otherwise available, there is appropriated
to the Assistant Secretary for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $10,000,000, to remain
available until September 30, 2030, to establish a 16-member Public
Safety Next Generation 9-1-1 Advisory Board (in this section referred
to as the ``Board''), to be comprised of representatives of public
safety organizations, to provide recommendations to the Assistant
Secretary with respect to carrying out the duties and responsibilities
of the Assistant Secretary related to Next Generation 9-1-1, including
with respect to the grant program established pursuant to section
31101.
SEC. 31104. DEFINITIONS.
In this subtitle:
(1) 9-1-1 fee or charge.--The term ``9-1-1 fee or charge''
has the meaning given such term in section 6(f)(3)(D) of the
Wireless Communications and Public Safety Act of 1999 (47
U.S.C. 615a-1(f)(3)(D)).
(2) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary of Commerce for Communications
and Information.
(3) Commonly accepted standards.--The term ``commonly
accepted standards'' means the technical standards followed by
the communications industry for network, device, and Internet
Protocol connectivity that--
(A) enable interoperability; and
(B) are--
(i) developed and approved by a standards
development organization that is accredited by
a United States or international standards body
in a process that--
(I) is open to the public,
including open for participation by any
organization; and
(II) provides for a conflict
resolution process;
(ii) subject to an open comment and input
process before being finalized by the standards
development organization;
(iii) consensus-based; and
(iv) made publicly available once approved.
(4) Cost related to planning and implementation.--The term
``cost related to planning and implementation'' means any cost
incurred by an eligible entity related to planning for and
preparing an application and related materials as required
under this title.
(5) Covered state.--The term ``covered State'' means any
State of the United States, the District of Columbia, Puerto
Rico, American Samoa, Guam, the United States Virgin Islands,
the Northern Mariana Islands, and any other territory or
possession of the United States.
(6) Eligible entity.--The term ``eligible entity''--
(A) means a covered State or a Tribal organization;
and
(B) may be an entity, including a public authority,
board, or commission, established by one or more
entities described in subparagraph (A).
(7) Emergency communications center.--
(A) In general.--The term ``emergency
communications center''--
(i) means a facility that--
(I) is designated to receive a 9-1-
1 request for emergency assistance; and
(II) performs one or more of the
functions described in subparagraph
(B); and
(ii) may be a public safety answering
point, as defined in section 222 of the
Communications Act of 1934 (47 U.S.C. 222).
(B) Functions described.--The functions described
in this subparagraph are the following:
(i) Process and analyze 9-1-1 requests for
emergency assistance and information and data
related to such requests.
(ii) Dispatch appropriate emergency
response providers.
(iii) Transfer or exchange 9-1-1 requests
for emergency assistance and information and
data related to such requests with one or more
facilities described under this paragraph and
emergency response providers.
(iv) Analyze any communications received
from emergency response providers.
(v) Support incident command functions.
(8) Interoperable; interoperability.--The term
``interoperable'' or ``interoperability'' means the capability
of emergency communications centers to receive 9-1-1 requests
for emergency assistance and information and data related to
such requests, such as location information and callback
numbers from a person initiating the request, and then process
and share the 9-1-1 requests for emergency assistance and
information and data related to such requests with other
emergency communications centers and emergency response
providers without the need for proprietary interfaces and
regardless of jurisdiction, equipment, device, software,
service provider, or other factors.
(9) Next generation 9-1-1.--The term ``Next Generation 9-1-
1'' means an interoperable, secure, Internet Protocol-based
system that--
(A) employs commonly accepted standards;
(B) enables emergency communications centers to
receive, process, and analyze all types of 9-1-1
requests for emergency assistance;
(C) acquires and integrates additional information
useful to handling 9-1-1 requests for emergency
assistance; and
(D) supports sharing information related to 9-1-1
requests for emergency assistance among emergency
communications centers and emergency response
providers.
(10) Public safety organization.--The term ``public safety
organization'' means an organization that represents the
interests of personnel in--
(A) local law enforcement;
(B) fire and rescue;
(C) emergency medical service; or
(D) 9-1-1 services.
(11) Reliability.--The term ``reliability'' means the
employment of sufficient measures to ensure the ongoing
operation of Next Generation 9-1-1, including through the use
of geo-diverse, device- and network-agnostic elements that
provide more than one physical route between end points with no
common points where a single failure at that point would cause
the operation of Next Generation 9-1-1 to fail.
(12) State or taxing jurisdiction.--The term ``State or
taxing jurisdiction'' has the meaning given such term in
section 6(f)(3)(D) of the Wireless Communications and Public
Safety Act of 1999 (47 U.S.C. 615a-1(f)(3)(D)).
(13) Sustainable funding mechanism.--The term ``sustainable
funding mechanism'' means a funding mechanism that provides
adequate revenues to cover ongoing expenses, including
operations, maintenance, and upgrades.
Subtitle L--Spectrum Auctions
SEC. 31201. SPECTRUM AUCTIONS AND INNOVATION.
(a) Definitions.--In this section:
(1) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary of Commerce for Communications
and Information.
(2) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(3) Covered band.--The term ``covered band'' means the band
of frequencies between 3100 megahertz and 3450 megahertz,
inclusive.
(4) Relevant congressional committees.--The term ``relevant
congressional committees'' means--
(A) the Committee on Energy and Commerce of the
House of Representatives; and
(B) the Committee on Commerce, Science, and
Transportation of the Senate.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(b) 3.1-3.45 GHz Band.--
(1) Pre-auction funding.--
(A) In general.--On the date of enactment of this
Act, the Director of the Office of Management and
Budget shall transfer $50,000,000 from the Spectrum
Relocation Fund established under section 118 of the
National Telecommunications and Information
Administration Organization Act (47 U.S.C. 928) to the
Secretary for the purpose of engineering studies,
economic analyses, activities with respect to systems,
or other planning activities to improve efficiency and
effectiveness of Federal spectrum use in order to make
available--
(i) frequencies in the covered band for
identification by the Secretary under paragraph
(2)(A); and
(ii) frequencies in the covered band for
identification by the Secretary under paragraph
(2)(B).
(B) Exemption.--Section 118(g) of the National
Telecommunications and Information Administration
Organization Act (47 U.S.C. 928(g)) shall not apply
with respect to the payment required under subparagraph
(A).
(C) Plan.--Not later than 180 days after the date
of enactment of this Act, the Assistant Secretary, in
coordination with the Secretary of Defense and the
Executive Office of the President, shall develop a plan
for conducting the engineering studies, economic
analyses, activities with respect to systems, or other
planning activities described in subparagraph (A).
(D) Consideration of common platform.--In
developing the plan required by subparagraph (C), the
Assistant Secretary shall consider facilitating the
sharing of spectrum between Federal and non-Federal
users implemented through a Federal user informing
common platform developed by the Assistant Secretary,
in coordination with the Commission.
(E) Oversight.--The Assistant Secretary and the
Executive Office of the President shall continuously
review and provide oversight of the execution of the
plan required by subparagraph (C).
(F) Report to secretary of commerce and congress.--
Not later than 18 months after the date of enactment of
this Act, for the purposes of aiding the Secretary in
making the identification under paragraph (2) and
informed by the findings of the engineering studies,
economic analyses, activities with respect to systems,
or other planning activities described in subparagraph
(A), the Assistant Secretary, in consultation with the
Secretary of Defense, shall submit to the Secretary and
the relevant congressional committees a report that--
(i) contains such findings; and
(ii) recommends--
(I) frequencies in the covered band
for identification by the Secretary
under paragraph (2)(A); and
(II) frequencies in the covered
band for identification by the
Secretary under paragraph (2)(B).
(2) Identification.--Not later than 24 months after the
date of enactment of this Act, informed by the findings of the
engineering studies, economic analyses, activities with respect
to systems, or other planning activities described in paragraph
(1)(A) and the report required under paragraph (1)(F), the
Secretary, in consultation with the Secretary of Defense, the
Director of the Office of Science and Technology Policy, and
the Commission, shall submit to the President, the Commission,
and the relevant congressional committees a report that--
(A) identifies for inclusion in a system of
competitive bidding under paragraph (3) at least 200
megahertz of frequencies in the covered band for non-
Federal use, shared Federal and non-Federal use, or a
combination thereof; and
(B) identifies additional frequencies of
electromagnetic spectrum in the covered band that could
be made available for non-Federal use, shared Federal
and non-Federal use, or a combination thereof.
(3) Auction.--
(A) In general.--Not later than 7 years after the
date of enactment of this Act, the Commission, in
coordination with the Assistant Secretary, shall
commence a system of competitive bidding under section
309(j) of the Communications Act of 1934 (47 U.S.C.
309(j)), in accordance with paragraph (2) of this
subsection, of the frequencies identified under
subparagraph (A) of that paragraph.
(B) Prohibition.--No entity that is on the list
required by section 2 of the Secure and Trusted
Communications Networks Act of 2019 (47 U.S.C. 1601)
may participate in the system of competitive bidding
required by subparagraph (A).
(4) Preparing spectrum for auction.--
(A) In general.--The President shall modify or
withdraw any assignment to a Federal Government station
of the frequencies identified under paragraph (2)(A) to
accommodate non-Federal use or shared Federal and non-
Federal use in accordance with that paragraph.
(B) Timing.--The President may not modify or
withdraw any assignment to a Federal Government station
as described in subparagraph (A) before November 30,
2024.
(5) Auction proceeds to cover 110 percent of federal
relocation or sharing costs.--Nothing in this subsection shall
be construed to relieve the Commission from the requirements
under section 309(j)(16)(B) of the Communications Act of 1934
(47 U.S.C. 309(j)(16)(B)).
(6) Rules authorizing additional use of spectrum in covered
band.--Not later than 4 years after the date of enactment of
this Act, the Commission, in consultation with the Assistant
Secretary, shall adopt rules that authorize the use of spectrum
in the covered band identified under paragraph (2)(B) for non-
Federal use, shared Federal and non-Federal use, or a
combination thereof.
(7) Opportunistic use of identified frequencies.--Not later
than 4 years after the date of enactment of this Act, if the
President modifies or withdraws assignments under paragraph
(4), or if President accommodates the use described in
paragraph (2)(A) without such modification or withdrawal, the
Commission, in coordination with the Assistant Secretary, shall
allow for the opportunistic use of the frequencies identified
under such paragraph before the auction required by paragraph
(3) is conducted. Opportunistic use, if such use is
inconsistent with the rights of licensees that obtained
licenses through such auction, shall cease upon the issuance by
the Commission of such licenses.
(c) FCC Auction Authority.--
(1) Termination.--Section 309(j)(11) of the Communications
Act of 1934 (47 U.S.C. 309(j)(11)) is amended by inserting
after ``2025'' the following: ``, and with respect to the
electromagnetic spectrum identified under section
31201(b)(2)(A) of the Act to provide for reconciliation
pursuant to title II of S. Con. Res. 14, such authority shall
expire on the date that is 7 years after the date of enactment
of that Act''.
(2) Spectrum pipeline act of 2015.--The Spectrum Pipeline
Act of 2015 (Public Law 114-74; 129 Stat. 621) is amended--
(A) in section 1004--
(i) in subsection (a), by striking ``2022''
and inserting ``2024''; and
(ii) in subsection (b)(1), by striking
``2022'' and inserting ``2024''; and
(B) in section 1006(c)(1), by striking ``2022'' and
inserting ``2024''.
Subtitle M--Distance Learning
SEC. 31301. ADDITIONAL SUPPORT FOR DISTANCE LEARNING.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated--
(1) $4,000,000,000 to the Emergency Connectivity Fund
established under subsection (c)(1) of section 7402 of the
American Rescue Plan Act of 2021 (Public Law 117-2) to provide
support under the covered regulations promulgated under
subsection (a) of such section, except that such amount shall
be used to provide support under the covered regulations for
costs incurred after the date of enactment of this Act but
before June 30, 2030, regardless of whether those costs are
incurred during a COVID-19 emergency period (as defined in
subsection (d) of such section); and
(2) $500,000 to the Inspector General of the Federal
Communications Commission to conduct oversight of support
provided under the covered regulations.
Amounts appropriated by this subsection shall remain available until
September 30, 2030.
(b) Limitation.--None of the funds appropriated by subsection
(a)(1) may be used to purchase, rent, lease, or otherwise obtain any
covered communications equipment or service (as defined in section 9 of
the Secure and Trusted Communications Networks Act of 2019 (47 U.S.C.
1608)).
Subtitle N--Manufacturing Supply Chain
SEC. 31401. CRITICAL MANUFACTURING SUPPLY CHAIN RESILIENCE.
(a) Appropriation.--In addition to amounts otherwise made
available, there is appropriated to the Department of Commerce for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $10,000,000,000, to remain available until expended,
except that no amounts may be expended after September 30, 2031, to
support the resilience, diversity, security, and strength of critical
manufacturing supply chains affecting interstate commerce and related
administrative costs.
(b) Purposes.--The amount under subsection (a) shall be available
to the Secretary of Commerce for--
(1) critical manufacturing supply chain mapping and
monitoring, which may include providing grants and other
financial assistance as appropriate to eligible entities for
private and public sector-led mapping, monitoring, and
forecasting;
(2) facilitating and supporting the establishment of
voluntary standards, guidelines, and best practices to reduce
risks to the resilience, diversity, security, and strength of
critical manufacturing supply chains;
(3) identifying, accelerating, promoting, and demonstrating
technological advances for critical manufacturing supply
chains; and
(4) providing grants and other financial assistance as
appropriate that support the resilience, diversity, security,
or strength of a critical manufacturing supply chain to
eligible entities for activities that may include enhancements
to a domestic manufacturing facility, process, or practice, the
preservation of surge capacity, the provision of goods, or
other activities at the determination of the Secretary.
(c) Limitation.--Of the amounts made available under subsection
(a), not more than 3 percent may be used for related administrative
expenses.
(d) Eligible Entity Defined.--The term ``eligible entity'' means--
(1) a domestic enterprise;
(2) a domestic manufacturer;
(3) a State, local, or Tribal government entity;
(4) a domestic regional technology and manufacturing hub;
(5) a domestic institution of higher education;
(6) a domestic public or private nonprofit organization or
association; or
(7) a consortium of any of the entities described in
paragraphs (1) through (6).
Subtitle O--FTC Privacy Enforcement
SEC. 31501. FEDERAL TRADE COMMISSION FUNDING FOR A PRIVACY BUREAU AND
RELATED EXPENSES.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Federal Trade Commission for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$1,000,000,000, to remain available until September 30, 2031, for
carrying out this section.
(b) Purposes.--The Federal Trade Commission shall use the funds
appropriated under subsection (a) to create and operate a bureau,
including by hiring and retaining technologists, user experience
designers, and other experts as the Commission considers appropriate,
to accomplish the work of the Commission related to unfair or deceptive
acts or practices relating to privacy, data security, identity theft,
data abuses, and related matters.
Subtitle P--Department of Commerce Inspector General
SEC. 31601. FUNDING FOR THE OFFICE OF THE INSPECTOR GENERAL OF THE
DEPARTMENT OF COMMERCE.
In addition to amounts otherwise available, there is appropriated
to the Office of the Inspector General of the Department of Commerce
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $10,000,000, to remain available until September 30,
2031, for oversight of activities supported with funds appropriated to
the Department of Commerce in this Act.
TITLE IV--COMMITTEE ON FINANCIAL SERVICES
Subtitle A--Creating and Preserving Affordable, Equitable and
Accessible Housing for the 21st Century
SEC. 40001. PUBLIC HOUSING INVESTMENTS.
(a) Appropriation.--In addition to amounts otherwise made
available, there is appropriated to the Secretary of Housing and Urban
Development (in this section referred to as the ``Secretary'') for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated--
(1) $10,000,000,000 for the Capital Fund under section 9(d)
of the United States Housing Act of 1937 (42 U.S.C. 1437g(d))
pursuant to the same formula as in fiscal year 2021, to be made
available within 60 days of the date of the enactment of this
Act;
(2) $66,500,000,000 for eligible activities under section
9(d)(1) of the United States Housing Act of 1937 (42 U.S.C.
1437g(d)(1)) for priority investments as determined by the
Secretary to repair, replace, or construct properties assisted
under such section 9;
(3) $2,750,000,000 for competitive grants under section 24
of the United States Housing Act of 1937 (42 U.S.C. 1437v) (in
this section referred to as ``section 24''), under the terms
and conditions in subsection (b), for transformation,
rehabilitation, and replacement housing needs of public
housing, to transform neighborhoods of poverty into
functioning, sustainable mixed-income neighborhoods ; and
(4) $750,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this section
and the Public Housing Capital Fund and the section 24 grant
program generally, including information technology, financial
reporting, research and evaluation, other cross-program costs
in support of programs administered by the Secretary in this
title, and other costs; the Secretary may transfer and merge
amounts set aside under this subparagraph to section 40301.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Terms and Conditions for Section 24 Grants.--Grants awarded
under subsection (a)(3) shall be subject to terms and conditions
determined by the Secretary, which shall include the following:
(1) Use.--Grant funds may be used for resident and
community services, community development and revitalization,
and affordable housing needs in the community.
(2) Applicants.--Eligible recipients of grants shall
include lead applicants and joint applicants, as follows:
(A) Lead applicants.--A lead applicant shall be a
local government or a public housing agency.
(B) Joint applicants.--A nonprofit organization or
a for-profit developer may apply jointly as a joint
applicant with such public entities specified in
subparagraph (A).
(3) Period of affordability.--Grantees shall commit to a
period of affordability determined by the Secretary of not
fewer than 20 years, but the Secretary may specify a period of
affordability that is fewer than 20 years with respect to
homeownership units developed with section 24 grants.
(4) Environmental review.--For purposes of environmental
review, a grantee shall be treated as a public housing agency
under section 26 of the United States Housing Act of 1937 (42
U.S.C. 1437x) and grants from amounts made available under this
heading shall be subject to the regulations issued by the
Secretary to implement such section.
(5) Partnerships.--Grantees shall create partnerships with
other local organizations, included assisted housing owners,
service agencies, and resident organizations.
(6) Unobligated balances.--The Secretary may, until
September 30, 2031, obligate any available unobligated balances
made available under subsection (a)(3).
(7) Low-income housing.--Amounts made available under this
section shall be used for low-income housing (as such term is
defined under section 3(b) of the United States Housing Act of
1937 (42 U.S.C. 1437a(b)) and affordable housing, which shall
be housing for which the owner or purchaser of the project has
recorded an affordability use restriction approved by the
Secretary for households earning up to 120 percent of the area
median income for no fewer than 20 years.
(c) Other Terms and Conditions.--Grants awarded under this section
shall be subject to the following terms and conditions:
(1) Limitation.--Amounts provided pursuant to this section
may not be used for operating costs or rental assistance.
(2) Development of new units.--Paragraph (3) of section
9(g) of the United States Housing Act of 1937 (42 U.S.C.
1437g(g)(3)) shall not apply to new funds made available under
this section.
(3) Health and safety.--Amounts made available under this
section shall be used to address health, safety, and
environmental hazards, including lead, fire, carbon monoxide,
mold, asbestos, radon, pest infestation, and other hazards as
defined by the Secretary.
(4) Energy efficiency and resilience.--Amounts made
available under this section shall advance improvements to
energy and water efficiency or climate and disaster resilience
in housing assisted under this section.
(5) Alternative deadlines.--The Secretary shall establish,
by notice, alternative deadlines to those established in
section 9(j) of the United States Housing Act of 1937 (42
U.S.C. 1437g(j)) to provide public housing agencies reasonable
periods of time to obligate and expend funds provided under
paragraphs (1) and (2) of subsection (a).
(6) Recapture.--If the Secretary recaptures funding
allocated by formula from a public housing agency under
paragraph (a)(1), such recaptured amounts shall be added to the
amounts available under paragraph (a)(2), and shall be
obligated by the Secretary prior to the expiration of such
funds.
(7) Supplementation of funds.--The Secretary shall ensure
that amounts provided pursuant to this section shall serve to
supplement and not supplant other amounts generated by a
recipient of such amounts or amounts provided by other Federal,
State, or local sources.
(8) Waivers and alternative requirements.--The Secretary
may waive or specify alternative requirements for subsections
(d)(1), (d)(2), (e), and (j) of section 9 of the United States
Housing Act of 1937 (42 U.S.C. 1437g) and associated
regulations in connection with the use of amounts made
available under this section other than requirements related to
tenant rights and protections, fair housing, nondiscrimination,
labor standards, and the environment, upon a finding that the
waiver or alternative requirement is necessary to facilitate
the use of amounts made available under this section.
(d) Implementation.--The Secretary shall have authority to issue
such regulations or other notices, guidance, forms, instructions, and
publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40002. INVESTMENTS IN AFFORDABLE AND ACCESSIBLE HOUSING
PRODUCTION.
(a) Appropriation.--In addition to amounts otherwise made
available, there is appropriated to the Secretary of Housing and Urban
Development (in this section referred to as the ``Secretary'') for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated--
(1) $34,770,000,000, for activities and assistance for the
HOME Investment Partnerships Program (in this section referred
to as the ``HOME program''), as authorized under title II of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12721 et seq.) (in this section referred to as
``NAHA'');
(2) $36,770,000,000 for activities and assistance for the
HOME Investment Partnerships Program, as authorized under title
II of NAHA, subject to the terms and conditions in paragraphs
(1) and (2) of subsection (b);
(3) $100,000,000 to make new awards or increase prior
awards to existing technical assistance providers, except that
increases to prior awards do not exceed 10 percent of the
amount made available under this subparagraph, to provide an
increase in capacity building and technical assistance
available to any grantees implementing activities or projects
consistent with this section, except that the Secretary may use
not more than 10 percent of the amount made available under
this paragraph to increase prior awards to existing technical
assistance providers to provide an immediate increase in
capacity building and technical assistance; and
(4) $360,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this section
and the HOME and Housing Trust Fund programs generally,
including information technology, financial reporting, research
and evaluations, other cross-program costs in support of
programs administered by the Secretary in this title, and other
costs. The Secretary may transfer and merge amounts
appropriated under this paragraph to section 40301.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Terms and Condition.--
(1) Formula.--The Secretary shall allocate amounts made
available under subsection (a)(2) pursuant to the formula
specified in section 1338(c)(3) of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4568(c)(3)) to grantees that received Housing Trust Fund
allocations pursuant to that same formula in fiscal year 2021
and shall make such allocations within 60 days of the date of
the enactment of this Act.
(2) Eligible activities.--Other than as provided in
paragraph (5) of this subsection, funds made available under
subsection (a)(2) may only be used for eligible activities
described in subparagraphs (A) through (B)(i) of section
1338(c)(7) of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992 (12 U.S.C. 4568(c)(7)), except that
not more than 10 percent of funds made available may be used
for activities under such subparagraph (B)(i).
(3) Funding restrictions.--The commitment requirements in
section 218(g) (42 U.S.C. 12748(g)) of NAHA, the matching
requirements in section 220 (42 U.S.C. 12750) of NAHA, and the
set-aside for housing developed, sponsored, or owned by
community housing development organizations required in section
231 of NAHA (42 U.S.C. 12771) shall not apply for amounts made
available under this section.
(4) Reallocation.--For funds provided under paragraphs (1)
and (2) of subsection (a), the Secretary may recapture certain
amounts remaining available to a grantee under this section or
amounts declined by a grantee, and reallocate such amounts to
other grantees under that paragraph to ensure fund expenditure,
geographic diversity, and availability of funding to
communities within the State from which the funds have been
recaptured.
(5) Administration.-- Notwithstanding subsections (c) and
(d)(1) of section 212 of NAHA (42 U.S.C. 12742), eligible
grantees may use not more than 15 percent of their allocations
under this section for administrative and planning costs.
(c) Waivers.--The Secretary may waive or specify alternative
requirements for any provision of NAHA (42 U.S.C. 12701 et seq.) or
regulation for the administration of the amounts made available under
this section other than requirements related to fair housing,
nondiscrimination, labor standards, and the environment, upon a finding
that the waiver or alternative requirement is necessary to expedite or
facilitate the use of amounts made available under this section.
(d) Implementation.--The Secretary shall have authority to issue
such regulations or other notices, guidance, forms, instructions, and
publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40003. HOUSING INVESTMENT FUND.
(a) Establishment.--There is established in the Treasury of the
United States a fund to be known as the Housing Investment Fund, which
shall be within the Community Development Financial Institutions Fund
(in this section referred to as the ``CDFI Fund''), to--
(1) increase and preserve the affordability and quality of
housing;
(2) increase the availability of affordable, accessible
housing;
(3) improve the energy and water efficiency and resiliency
of affordable housing;
(4) enhance economic opportunities for residents, by
financing or supporting affordable housing located within
proximity to public transportation, as defined in section 5302
of title 49, United States Code, or centers of employment, and
education, and critical community services;
(5) match the creation of housing supply to existing demand
and projected demand growth in the area, to the benefit of
existing residents and with attention to preventing
displacement of residents; and
(6) further fair housing purposes addressing historic
disinvestment, the concentration of poverty, and housing
segregation on the basis of race, color, religion, natural
origin, sex, disability, or familial status.
(b) Appropriation.--In addition to amounts otherwise available,
there is appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated--
(1) $9,640,000,000 to the Housing Investment Fund
established by this section; and
(2) $360,000,000 for the costs to the CDFI Fund of
administering and overseeing the implementation of this
section, including information technology, financial reporting,
research and evaluations, fair housing compliance, and other
costs.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(c) Expenditures From Fund.--Amounts in the Housing Investment Fund
shall be available to the CDFI Fund to make grants to increase
investment in the development, preservation, rehabilitation, financing,
or purchase of affordable housing primarily for low-, very low-, and
extremely low- income families , and for homeowners with incomes up to
120 percent of the area median income. The CDFI Fund may impose such
conditions as it deems necessary to achieve the program goals,
including coordinating with the Secretary of Housing and Urban
Development to housing achieve the purposes of subsection (a)(6).
(d) Eligible Grantees.--A grant under this section may be made,
pursuant to such requirements as the CDFI Fund shall establish for
experience and success in carrying out the types of activities proposed
under the application of the grantee, only to--
(1) a CDFI Fund certified community development financial
institution, as such term is defined in section 103 of the
Riegle Community Development and Regulatory Improvement Act of
1994 (12 U.S.C. 4702) that is not found to be out of compliance
with the obligation to affirmatively further fair housing, as
applicable;
(2) a nonprofit organization having as one of its principal
purposes the creation, development, or preservation of
affordable housing and that is not found to be out of
compliance with the obligation to affirmatively further fair
housing, as applicable, including a subsidiary of a public
housing authority; or
(3) a consortium comprised of certified community
development financial institutions, eligible nonprofit housing
organizations, or a combination of both.
(e) Eligible Uses.--Grant amounts awarded from the Housing
Investment Fund pursuant to this section may be used for the purposes
described in subsection (c), including for the following uses:
(1) To provide loan loss reserves.
(2) To capitalize an acquisition fund to acquire
residential, industrial, or commercial property and land for
the purpose of the preservation, development, or rehabilitation
of affordable, accessible housing, including to support the
creation, preservation, or rehabilitation of resident-owned
manufactured housing communities.
(3) To capitalize an affordable housing fund , for
development, preservation, rehabilitation, or financing of
affordable housing and economic development activities,
including community facilities, if part of a mixed-use project,
or activities described in this paragraph related to transit-
oriented development, which may also be designated as a focus
of such a fund.
(4) To capitalize an affordable housing mortgage fund, to
facilitate the origination of mortgages to buyers that may
experience significant barriers to accessing affordable
mortgage credit, including mortgages having low original
principal obligations.
(5) For risk-sharing loans.
(6) To provide loan guarantees.
(7) To fund rental housing operations.
(f) Applications.--The CDFI Fund shall provide, an application
process, for eligible grantees under subsection (d) to submit
applications for Housing Investment Fund grants to the CDFI Fund at
such time and in such manner as the CDFI Fund shall determine.
(g) Grant Limitation.--
(1) In general.--The CDFI Fund shall establish limitations
on aggregate funds available for an eligible grantee and its
subsidiaries and affiliates, and eligible uses and activities
as appropriate.
(2) Leverage of funds.--Each grant from the Housing
Investment Fund awarded under this section shall be reasonably
expected to result in eligible affordable housing activities
that support or sustain affordable housing funded by a grant
under this section and capital from other public and private
sources.
(h) Direct Hiring Authority.--The CDFI Fund may use direct hiring
authority to hire employees to administer the Housing Investment Fund.
(i) Implementation.--The CDFI Fund shall have the authority to
issue such regulations or other guidance, forms, instructions, and
publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40004. SECTION 811 SUPPORTIVE HOUSING FOR PEOPLE WITH
DISABILITIES.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Housing and Urban Development
(in this section referred to as the ``Secretary'') for fiscal year
2022, out of any money in the Treasury not otherwise appropriated--
(1) $898,000,000 for capital advances, including amendments
to capital advance contracts, for supportive housing for
persons with disabilities, as authorized by section 811 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
8013) (in this section referred to as the ``Act''), and for
project rental assistance for supportive housing for persons
with disabilities under section 811(d)(2) of the Act and for
project assistance contracts pursuant to section 202(h) of the
Housing Act of 1959 (Public Law 86-372; 73 Stat. 667), for
project rental assistance to State housing finance agencies and
other appropriate entities as authorized under section
811(b)(3) of the Act, for State housing finance agencies;
(2) $15,000,000 for providing technical assistance to
support State-level efforts to integrate housing assistance and
voluntary supportive services for residents of housing
receiving such assistance, which funding may also be used to
provide technical assistance to applicants and potential
applicants to understand program requirements and develop
effective applications; and the Secretary may use up to 10
percent of such amounts made available under this paragraph to
increase prior awards to existing technical assistance
providers to provide an immediate increase in capacity building
and technical assistance; and
(3) $87,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this section
and the Supportive Housing for Persons with Disabilities
program generally, including information technology, financial
reporting, research and evaluations, other cross-program costs
in support of programs administered by the Secretary in this
title, and other costs; the Secretary may transfer and merge
amounts appropriated under this paragraph to section 40301.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Waivers.--The Secretary may waive or specify alternative
requirements for any provision of section 811(b)(3) of the Act (42
U.S.C. 8013(b)(3)), or regulation that the Secretary administers that
is applicable to such statute other than requirements related to fair
housing, nondiscrimination, labor standards, and the environment, upon
a finding that the waiver or alternative requirement is necessary to
facilitate the use of amounts made available under this section.
(c) Implementation.--The Secretary shall have authority to issue
such regulations or other notices, guidance, forms, instructions, and
publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40005. SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY PROGRAM.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Housing and Urban Development
(in this section referred to as the ``Secretary'') for fiscal year
2022, out of any money in the Treasury not otherwise appropriated--
(1) $2,360,000,000 for the Supportive Housing for the
Elderly Program authorized under section 202 of the Housing Act
of 1959 (12 U.S.C. 1701q) (in this section referred to as the
``Act''), which shall be used--
(A) for capital advance awards in accordance with
section 202(c)(1) of the Act to recipients that are
eligible under the Act;
(B) for section 8 project-based rental assistance
contracts in accordance with subsection (b) of this
section and section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f), (in this section referred to
as the ``1937 Act'') for capital advance projects,
including new project-based rental assistance contracts
under section 8 of the 1937 Act for capital advance
projects notwithstanding subsections (b) and (c) of
section 202 of the Act (12 U.S.C. 1701q) and section 8
of the 1937 Act (42 U.S.C. 1437f), with the Secretary
setting the terms of such project-based rental
assistance contracts, including the duration and
provisions regarding rent setting and rent adjustment;
and
(C) for service coordinators;
(2) $15,000,000, to provide technical assistance to support
State-level efforts to improve the design and delivery of
voluntary supportive services for residents of any housing
assisted under the Act and other housing supporting low-income
older adults, in order to support residents to age-in-place and
avoid institutional care, as well as to assist applicants and
potential applicants with project-specific design; and the
Secretary may use up to 10 percent of such amounts made
available under this paragraph to increase prior awards to
existing technical assistance providers to provide an immediate
increase in capacity building and technical assistance; and
(3) $125,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this section
and the Supportive Housing for the Elderly program generally,
including information technology, financial reporting, research
and evaluation, other cross-program costs in support of
programs administered by the Secretary in this title, and other
costs; the Secretary may transfer and merge amounts
appropriated under this paragraph to section 40301.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Waivers.--The Secretary may waive or specify alternative
requirements for any provision of section 202 of the Act (12 U.S.C.
1701q), section 8 of the 1937 Act (42 U.S.C. 1437f), or regulation that
the Secretary administers that is applicable to such statutes other
than requirements related to fair housing, nondiscrimination, labor
standards, and the environment, upon a finding that the waiver or
alternative requirement is necessary to facilitate the use of amounts
made available under this section.
(c) Implementation.--The Secretary shall have authority to issue
such regulations or other notices, guidance, forms, instructions, and
publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40006. IMPROVING ENERGY EFFICIENCY OR WATER EFFICIENCY OR CLIMATE
RESILIENCE OF AFFORDABLE HOUSING.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Housing and Urban Development
(in this section referred to as the ``Secretary'') for fiscal year
2022, out of any money in the Treasury not otherwise appropriated--
(1) $5,314,000,000 for providing direct loans, which may be
forgivable, and grants, subject to terms and conditions,
including affordability requirements, determined by the
Secretary, to fund projects that improve the energy or water
efficiency, implement low-emission technologies, materials, or
processes, including zero-emission electricity generation,
energy storage, or building electrification, electric car
charging station installations, or address climate resilience
of multifamily properties;
(2) $76,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this
section, including information technology, financial reporting,
research and evaluation, other cross-program costs in support
of programs administered by the Secretary in this title, and
other costs; and the Secretary may transfer and merge amounts
appropriated under this paragraph to section 40301;
(3) $360,000,000 for expenses of contracts administered by
the Secretary, including to carry out property climate risk,
energy, or water assessments, due diligence, and underwriting
functions for such grant and direct loan program; and
(4) $250,000,000 for energy and water benchmarking of
properties eligible to receive grants or loans under this
section, regardless of whether they actually received such
grants, along with associated data analysis and evaluation at
the property and portfolio level, including the development of
information technology systems necessary for the collection,
evaluation, and analysis of such data.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Eligible Recipients.--Amounts made available under this section
shall be for direct loans, grants, and direct loans that can be
converted to grants to properties receiving project-based assistance
pursuant to section 202 of the Housing Act of 1959 (12 U.S.C. 1701q),
section 811 of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 8013), or section 8(b) of the United States Housing Act of
1937 (42 U.S.C. 1437f(b)).
(c) Costs.--The costs of direct loans provided under this section,
including the cost of modifying such direct loans or converting direct
loans into grants, shall be as defined in section 502 of the
Congressional Budget Act of 1974 (2 U.S.C. 661a).
(d) Waiver.--The Secretary may waive or specify alternative
requirements for any provision of section 202 of the Housing Act of
1959 (12 U.S.C. 1701q), section 811 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013), section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f), or any regulation applicable to
such statutes other than requirements related to tenant rights and
protections, rent setting, fair housing, nondiscrimination, labor
standards, and the environment, upon a finding that the waiver or
alternative requirement is necessary to facilitate the use of such
amounts.
SEC. 40007. REVITALIZATION OF DISTRESSED MULTIFAMILY PROPERTIES.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Housing and Urban Development
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated--
(1) $3,870,000,000 for providing direct loans, which may be
forgivable, to owners of distressed properties for the purpose
of making necessary physical improvements, including to
subsidize gross obligations for the principal amount of direct
loans not to exceed $6,000,000,000, subject to the terms and
conditions in subsection (b); and
(2) $130,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this section
and the Office of Housing programs generally, including
information technology, financial reporting, research and
evaluations, other cross-program costs in support of programs
administered by the Secretary in this title, and other costs;
the Secretary may transfer and merge amounts appropriated under
this paragraph to section 40301.
Amounts appropriated by this section shall remain available until
September 30, 2031
(b) Loan Terms and Conditions.--
(1) Eligibility.--Owners of distressed multifamily housing
projects who meet each of the following requirements shall be
eligible for loan assistance under this section:
(A) The actual rents received by the owner of the
distressed property would not adequately sustain the
debt needed to make necessary physical improvements.
(B) Any such additional eligibility criteria as the
Secretary determines to be appropriate, including
factors that contributed to the property's distressed
state.
(2) Use of loan funds.--Each recipient of loan assistance
under this section may only use such loan assistance to make
necessary physical improvements to a distressed property.
(3) Loan availability.--The Secretary shall only provide
loan assistance to an owner of a distressed property when such
assistance, considered with other financial resources available
to the owner, is necessary to remove the property from a
distressed state. The Secretary may provide assistance in any
amount that the Secretary determines is needed to make the
necessary physical improvements that will correct the
deficiencies of the distressed property.
(4) Interest rates and length.--Loans provided under this
section shall bear interest at 1 percent, and at origination
shall have a repayment period coterminous with the
affordability period established under paragraph (5), with the
frequency and amount of repayments to be determined by
requirements established by the Secretary.
(5) Loan modifications or forgiveness.--With respect to
loans provided under this section, the Secretary may take any
of the following actions if the Secretary determines that doing
so will preserve affordability of the property:
(A) Waive any due on sale or due on refinancing
restriction.
(B) Consent to the terms of new owner debt to which
the loans may be subordinate, even if such new debt
would impact the rate of repayment of the loans.
(C) Extend the term of the loan.
(D) Forgive the loan in whole or in part.
(6) Extended affordability period.--Each recipient of loan
assistance under this section shall agree to an extended
affordability period for the property that is subject to the
loan by extending any existing affordable housing use
agreements for an additional 30 years or, if the property is
not currently subject to a use agreement establishing
affordability requirements, by establishing a use agreement for
30 years.
(7) Matching contribution.--Each recipient of loan
assistance under this section shall secure at least 20 percent
of the total cost needed to make the necessary physical
improvements from non-Federal sources other than under this
section, except in cases where the Secretary determines that a
lack of financial resources qualifies a loan recipient for--
(A) a reduced contribution below 20 percent; or
(B) an exemption to the matching contribution
requirement.
(8) Additional loan conditions.--The Secretary may
establish additional conditions for loan eligibility provided
under this section as the Secretary determines to be
appropriate.
(9) Properties insured under national housing act.--In the
case of a loan issued under this section that is secured by a
property with insurance under title II of the National Housing
Act (12 U.S.C. 1707 et seq.), the Secretary may use funds
available under this section as necessary to pay for the costs
of modifying such loan in accordance with section 502 of the
Congressional Budget Act of 1974 (2 U.S.C. 661a).
(10) Costs.--The costs of direct loans provided under this
section, including the cost of modifying such direct loans,
shall be as defined in section 502 of the Congressional Budget
Act of 1974 (2 U.S.C. 661a).
(c) Definitions.--As used in this section--
(1) the term ``multifamily housing project'' means a
project consisting of more than four dwelling units assisted,
insured, or with a loan held by the Secretary or a State or
State agency in part or in whole pursuant to--
(A) section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f), not including under subsection
(o)(13) of such section;
(B) section 202 of the Housing Act of 1959 (12
U.S.C. 1701q), as amended by section 801 of the
Cranston-Gonzalez National Affordable Housing Act;
(C) section 202 of the Housing Act of 1959 (former
12 U.S.C. 1701q), as such section existed before the
enactment of the Cranston-Gonzalez National Affordable
Housing Act;
(D) section 811 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013); or
(E) section 236 of the National Housing Act (12
U.S.C. 1715z-1);
(2) the term ``distressed property''? means a multifamily
housing project that has deficiencies that cause the property
to be at risk of physical obsolescence or economic non-
viability;
(3) the term ``Secretary''? means the Secretary of Housing
and Urban Development; and
(4) the term ``necessary physical improvements'' means
capital improvements that the Secretary determines are
necessary to address the conditions making a property a
distressed property or that rise to such a level that delaying
physical improvements to the property would be detrimental to
the longevity of the property as suitable housing for
occupancy.
(d) Implementation.--The Secretary shall have the authority to
issue such regulations or other notices, guidance, forms, instructions,
and publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40008. INVESTMENTS IN RURAL RENTAL HOUSING.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Agriculture (in this section
referred to as the ``Secretary'') for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated--
(1) $4,360,000,000, to remain available until expended, for
carrying out new construction, improvements to energy and water
efficiency or climate resilience, the removal of health and
safety hazards, and the preservation and revitalization of
housing authorized under sections 514, 515, and 516 of the
Housing Act of 1949 (42 U.S.C. 1484, 1485, and 1486)), subject
to the terms and conditions in subsection (b);
(2) $200,000,000, to remain available until September 30,
2024, to provide grants under section 521(a)(2) of the Housing
Act of 1949 (42 U.S.C. 1490a(a)(2)) or agreements entered into
in lieu of debt forgiveness or payments for eligible households
as authorized by section 502(c)(5)(D) of the Housing Act of
1949 (42 U.S.C. 1472(c)(5)(D)), to provide continued assistance
to households assisted pursuant to Section 3203 of the American
Rescue Plan Act of 2021; and
(3) $240,000,000, to remain available until expended, for
the costs to the Secretary of administering and overseeing the
implementation of this section, including information
technology, financial reporting, research and evaluations,
other cross-program costs in support of programs administered
by the Secretary in this title, and other costs.
(b) Preservation and Revitalization Terms and Conditions.--
(1) Loans and grants and other assistance.--The Secretary
shall provide direct loans and grants, including the cost of
modifying loans, as defined in section 502 of the Congressional
Budget Act of 1974 (2 U.S.C. 661a), to restructure existing
Department of Agriculture multi-family housing loans expressly
for the purposes of ensuring the project has sufficient
resources to preserve the project for the purpose of providing
safe and affordable housing for low-income residents and farm
laborers, including--
(A) reducing or eliminating interest;
(B) deferring loan payments;
(C) subordinating, reducing, or re-amortizing loan
debt; and
(D) providing other financial assistance, including
advances, payments, and incentives (including the
ability of owners to obtain reasonable returns on
investment) required by the Secretary, including such
assistance to non-profit entities and public housing
authorities.
(2) Restrictive use agreement.--The Secretary shall as part
of the preservation and revitalization agreement obtain a
restrictive use agreement consistent with the terms of the
restructuring.
(c) Implementation.--The Secretary shall have authority to issue
such regulations or other notices, guidance, forms, instructions, and
publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40009. HOUSING VOUCHERS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Housing and Urban Development
(in this section referred to as the ``Secretary'') for fiscal year
2022, out of any money in the Treasury not otherwise appropriated--
(1) $48,460,000,000 for--
(A) incremental tenant-based rental assistance for
extremely low-income families under section 8(o) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o));
(B) renewals of such tenant-based rental
assistance; and
(C) fees for the costs of administering tenant-
based rental assistance and other eligible expenses, as
determined by the Secretary, such as security deposit
assistance and other costs related to the retention and
support of participating owners;
(2) $24,000,000,000 for--
(A) incremental tenant-based rental assistance
under section 8(o) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)) for households experiencing
or at risk of homelessness, survivors of domestic
violence, dating violence, sexual assault, and
stalking, and survivors of trafficking families;
(B) renewals of such tenant-based rental
assistance; and
(C) fees for the costs of administering tenant-
based rental assistance and other eligible expenses, as
determined by the Secretary, such as security deposit
assistance and other costs related to the retention and
support of participating owners;
(3) $500,000,000 for--
(A) tenant protection vouchers for relocation and
replacement of public housing units demolished or
disposed of pursuant to section 18 of the United States
Housing Act of 1937 (42 U.S.C. 1437p) as part of a
public housing preservation or project-based
replacement transaction using funds made available
under this Act;
(B) renewals of such tenant-based rental
assistance; and
(C) fees for the costs of administering tenant-
based rental assistance and other eligible expenses, as
determined by the Secretary, such as security deposit
assistance and other costs related to the retention and
support of participating owners;
(4) $750,000,000 for competitive grants, subject to terms
and conditions determined by the Secretary, to public housing
agencies for mobility-related services for voucher families,
including families with children, and service coordination;
(5) $500,000,0000 for eligible expenses to facilitate the
use of voucher assistance under this section and for other
voucher assistance under section 8(o) of the United States
Housing Act of 1937, as determined by the Secretary, including
property owner outreach and retention activities such as
incentive payments, security deposit payments and loss
reserves, landlord liaisons, and other uses of funds designed
primarily--
(A) to recruit owners of dwelling units,
particularly dwelling units in census tracts with a
poverty rate of less than 20 percent, to enter into
housing assistance payment contracts; and
(B) to encourage owners that enter into housing
assistance payment contracts as described in
subparagraph (A) to continue to lease their dwelling
units to tenants assisted under section 8(o) of the
United States Housing Act of 1937;
(6) $750,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this section
and the Housing Choice Voucher program generally, including
information technology, financial reporting, research and
evaluations, other cross-program costs in support of programs
administered by the Secretary in this title, and other costs;
and
(7) $40,000,000 for making new awards or increasing prior
awards to existing technical assistance providers to provide an
increase in capacity building and technical assistance
available to public housing agencies, except that the Secretary
may use not more than 10 percent of the amount made available
under this paragraph to increase prior awards to existing
technical assistance providers to provide an immediate increase
in capacity building and technical assistance.
(b) Terms and Conditions.--
(1) Allocation.--The Secretary shall allocate initial
incremental assistance provided for rental assistance under
subsection (a)(1) and (2) in each fiscal year commencing in
2022 and ending in 2026 in accordance with a formula that
includes measures of severe housing need among extremely low-
income renters and public housing agency capacity, and ensures
geographic diversity among public housing agencies
administering the Housing Choice Voucher program.
(2) Election to administer.--The Secretary shall establish
a procedure for public housing agencies to accept or decline
the incremental vouchers made available under this section.
(3) Failure to use vouchers promptly.--If a public housing
agency fails to lease the authorized vouchers it has received
under this subsection on behalf of eligible families within a
reasonable period of time, the Secretary may offset the
agency's voucher renewal allocations or revoke and redistribute
any unleased vouchers and associated funds, including
administrative fees and other expenses referred to in
subsections (a)(3) and (a)(4), to other public housing
agencies.
(4) Prohibition of use under moving to work program.--
Public housing agencies designated as Moving to Work agencies
shall be eligible for an allocation under this section, but may
only use such amounts for the activities listed in subsections
(a) for which the funds were provided to such agency.
(5) Cap on project-based vouchers for vulnerable
populations.--Upon request by a public housing agency, the
Secretary may designate a number of the public housing agency's
vouchers allocated under this section as excepted units that do
not count against the percentage limitation on the number of
authorized units a public housing agency may project-base under
section 8(o)(13)(B) of the United States Housing Act of 1937,
in accordance with the conditions established by the Secretary.
This paragraph may not be construed to waive, limit, or specify
alternative requirements, or permit such waivers, limitations,
or alternative requirements, related to fair housing and
nondiscrimination, including the requirement to provide housing
and services to individuals with disabilities in integrated
settings.
(c) Implementation.--The Secretary shall have authority to issue
such regulations or other notices, guidance, forms, instructions, and
publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40010. PROJECT-BASED RENTAL ASSISTANCE.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Housing and Urban Development
(in this section referred to as the ``Secretary'') for fiscal year
2022, out of any money in the Treasury not otherwise appropriated--
(1) $14,760,000,000 for the project-based rental assistance
program, as authorized under section 8(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(b)), (in this section
referred to as the ``Act''), subject to the terms and
conditions of subsection (b) of this section;
(2) $40,000,000 for providing technical assistance to
recipients of or applicants for project-based rental assistance
or to States allocating the project-based rental assistance;
and
(3) $200,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this section
and the section 8 project-based rental assistance program
generally, including information technology, financial
reporting, research and evaluations, and other cross-program
costs in support of programs administered by the Secretary in
this title, and other costs; and the Secretary may transfer and
merge amounts appropriated under this subparagraph to section
40301.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Terms and Conditions.--
(1) Authority.--Notwithstanding section 8(a) the Act (42
U.S.C. 1437f(a)), the Secretary may use amounts made available
under this section to provide assistance payments with respect
to newly constructed housing, existing housing, or
substantially rehabilitated non-housing structures for use as
new multifamily housing in accordance with this section and the
provisions of section 8 of the Act. In addition, the Secretary
may use amounts made available under this section for
performance-based contract administrators for section 8
project-based assistance, for carrying out this section and
section 8 of the Act.
(2) Project-based rental assistance.--The Secretary may
make assistance payments using amounts made available under
this section pursuant to contracts with owners or prospective
owners who agree to construct housing, to substantially
rehabilitate existing housing, to substantially rehabilitate
non-housing structures for use as new multifamily housing, or
to attach the assistance to newly constructed housing in which
some or all of the units shall be available for occupancy by
very low-income families in accordance with the provisions of
section 8 of the Act. In awarding contracts pursuant to this
section, the Secretary shall give priority to owners or
prospective owners of multifamily housing projects located or
to be located in areas of high opportunity, as defined by the
Secretary, in areas experiencing economic growth or rising
housing prices to prevent displacement or secure affordable
housing for low-income households, or that serve people at risk
of homelessness or that integrate additional units that are
accessible for persons with mobility impairments and persons
with hearing or visual impairments beyond those required by
applicable Federal accessibility standards.
(3) Allocation.--The Secretary may use various mechanisms,
alone or in combination, to award grants with amounts made
available under this section, including--
(A) using a competitive process, which the
Secretary may carry out in multiple rounds of
competition, each of which may have its own selection,
performance, and reporting criteria as established by
the Secretary;
(B) selecting proposals submitted through FHA loan
applications that meet specified criteria;
(C) delegating to States and territories the
awarding of contracts, including related determinations
such as the maximum monthly rent, subject to the
requirements of section 8 of the Act, as determined by
the Secretary; and
(D) using any other means that the Secretary
determines to be reasonable to accomplish the purposes
of this section.
(4) Contract term, rent setting, and rent adjustments.--The
Secretary may set the terms of the contract, including the
duration and provisions regarding rent setting and rent
adjustments.
(c) Waivers.--The Secretary may waive or specify alternative
requirements for any provision of section 8 of the Act (42 U.S.C.
1437f) or regulation that the Secretary administers that is applicable
to such statute other than requirements related to tenant rights and
protections, rent setting, fair housing, nondiscrimination, labor
standards, and the environment, upon a finding that the waiver or
alternative requirement is necessary to expedite or facilitate the use
of amounts made available under this section.
(d) Implementation.--The Secretary shall have the authority to
issue such regulations or other notices, guidance, forms, instructions,
and publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40011. INVESTMENTS IN NATIVE AMERICAN COMMUNITIES.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Housing and Urban Development
(in this section referred to as the ``Secretary'') for fiscal year
2022, out of any money in the Treasury not otherwise appropriated--
(1) $784,375,000 for grants under title I of the Native
American Housing Assistance and Self-Determination Act of 1996
(in this section referred to as ``NAHASDA'') (25 U.S.C. 4101 et
seq.) , and the Secretary shall distribute such amount
according to the same funding formula used in fiscal year 2021;
(2) $7,000,000 for grants under title VIII of NAHASDA (25
U.S.C. 4221 et seq.);
(3) $784,375,000 for competitive grants to eligible
recipients authorized under title I of NAHASDA (25 U.S.C. 4111
et seq.), which may be used for--
(A) new construction and rehabilitation of
affordable housing;
(B) improving water or energy efficiency or
increasing resilience to natural hazards for housing
assisted by amounts made available under this
subsection; or
(C) ) other eligible affordable housing activities
under NAHASDA;
(4) $334,250,000 for--
(A) competitive single-purpose Indian community
development block grants for Indian tribes under title
I of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.); and
(B) imminent threat grants under title I of the
Housing and Community Development Act of 1974 (42
U.S.C. 5301 et seq.) for Indian tribes, or a tribal
organization, governmental entity, or nonprofit
organization designated by the Indian tribe to apply
for a grant on its behalf, which may be used to--
(i) address environmental threats,
including long-term environmental threats;
(ii) assist Indian tribes with relocating a
portion of or entire communities due to changes
to the local environment; or
(iii) assist Indian tribes with addressing
other threats to health and safety;
(5) $50,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this section
and Native American programs generally, including information
technology, financial reporting, research and evaluations,
other cross-program costs in support of programs administered
by the Secretary in this Act, and other costs; and
(6) $40,000,000 to make new awards or increase prior awards
to existing technical assistance providers to provide an
immediate increase in capacity building and technical
assistance to grantees; and the Secretary may use not more than
10 percent of the amount under this paragraph to increase prior
awards to existing technical assistance providers to provide an
immediate increase in capacity building and technical
assistance.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Grantee Eligibility.--Notwithstanding any other provision of
this section, of NAHASDA (25 U.S.C. 4101 et seq.), or of the provisions
of title I of the Housing and Community Development Act of 1974 (42
U.S.C. 5301 et seq) applicable to the Indian community development
block grant program, an Indian tribe shall be ineligible to receive
grants with amounts made available under this section if the Secretary
determines that the Indian tribe is not in compliance with obligations
under its 1866 treaty with the United States as it relates to the
inclusion of persons who are lineal descendants of Freedmen as having
the rights of the citizens of such tribes, unless a Federal court has
issued a final order that determines the treaty obligations with
respect to including Freedmen as citizens. For purposes of this
subsection, a court order is not considered final if time remains for
an appeal or application for discretionary review with respect to the
order.
(c) Preliminary Funding.--
(1) Use of imminent threat grant amounts.--Of any amounts
made available in subsection (a)(4)(B), and in consultation
with the Department of the Interior, the Secretary may award
preliminary grants of up to $2,000,000 each to applicants that
have applied for a grant under subsection (a)(4)(B) before
making a final determination as to whether to award a grant
under subsection (a)(4)(B) to such applicant.
(2) Need and capacity.--Prior to awarding a preliminary
grant under this subsection, the Secretary must determine,
based on a preliminary assessment of need and administrative
capacity, that the applicant is likely able to carry out the
grant successfully but would need additional administrative and
planning resources to develop a comprehensive implementation
plan and additional administrative capacity in order to
successfully administer a grant under subsection (a)(4)(B).
(3) Eligible activities.--Such preliminary grants shall be
used for eligible program activities, as defined by the
Secretary, that the Secretary determines will allow the
applicant to successfully implement the grant.
(4) Inapplicability.--Such preliminary grants are not
subject to administrative and planning caps.
(5) Funding determinations.--The determination of whether
to award a final grant under subsection (a)(4)(B) to an
applicant after preliminary funding was granted to an applicant
shall not be subject to review.
(d) Reallocation.--Amounts made available under subsection (a)(1)
that are not accepted within a time specified by the Secretary, are
voluntarily returned, or are otherwise recaptured for any reason may be
used to fund grants under paragraph (3) or (4) of subsection (a).
(e) Waivers.--The Secretary may waive or specify alternative
requirements for any provision of NAHASDA (25 U.S.C. 4101 et seq.),
title I of the Housing and Community Development Act of 1974 (42 U.S.C.
5301 et seq), or regulation that the Secretary administers that is
applicable to such statutes other than requirements related to fair
housing, nondiscrimination, labor standards, and the environment, upon
a finding that the waiver or alternative requirement is necessary to
expedite or facilitate the use of amounts made available under this
section.
(f) Implementation.--The Secretary shall have authority to issue
such regulations or other notices, guidance, forms, instructions, and
publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
Subtitle B--21st Century Sustainable and Equitable Communities
SEC. 40101. COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING FOR AFFORDABLE
HOUSING AND INFRASTRUCTURE.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Housing and Urban Development
(in this section referred to as the ``Secretary'') for fiscal year
2022, out of any money in the Treasury not otherwise appropriated--
(1) $6,600,000,000 for grants to grantees under section 106
of the Housing and Community Development Act of 1974 (42
U.S.C.5306) under the community development block grant program
under title I of such Act, subject to subsection (b) of this
section, except that for purposes of amounts made available by
this paragraph, paragraph (2) of such section 106(a) shall be
applied by substituting ``$70,000,000'' for ``$7,000,000'';
(2) $1,000,000,000 for assistance to community development
block grant grantees, as determined by the Secretary, under
section 106 of the Housing and Community Development Act of
1974 (42 U.S.C. 5306), only for colonias, to address the
community and housing infrastructure needs of existing colonia
residents based on a formula that takes into account persons in
poverty in the colonia areas, except that grantees may use
funds in colonias outside of the 150-mile border area upon
approval of the Secretary;
(3) $500,000,000 for grants under the community development
block grant program under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.) to eligible
recipients under subsection (d) of this section for
manufactured housing infrastructure improvements in eligible
manufactured home communities;
(4) $300,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this
section, the Community Development Block Grant program, and the
manufactured home construction and safety standards program
generally, including information technology, financial
reporting, research and evaluations, fair housing compliance,
other cross-program costs in support of programs administered
by the Secretary in this title, and other costs; and the
Secretary may transfer and merge amounts set aside under this
paragraph to section 40301; and
(5) $100,000,000 for providing technical assistance to
recipients of or applicants for grants under this section.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Housing Construction.--Expenditures on new construction of
housing shall be an eligible expense for a recipient of funds made
available under this section that is not a recipient of funds under
title II of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 42 U.S.C. 12721 et seq.).
(c) Manufactured Housing Community Improvement Grant Program.--
(1) Establishment.--The Secretary of Housing and Urban
Development shall carry out a competitive grant program to
award funds appropriated under subsection (a)(4) to eligible
recipients to carry out eligible projects for improvements in
eligible manufactured home communities.
(2) Eligible projects.--Amounts from grants under this
subsection shall be used only to assist in carrying out a
project for construction, reconstruction, repair, or clearance
of housing, facilities and improvements in or serving a
manufactured housing community that--
(A) is critically needed to protect the health and
safety of the residents of the manufactured housing
community and the long-term sustainability of the
community;
(B) can be commenced expeditiously assisted by a
grant under this subsection; and
(C) includes activities--
(i) eligible under the community
development block grant program under title I
of the Housing and Community Development Act of
1974 (42 U.S.C. 5301 et seq.);
(ii) to facilitate installation, including
foundation construction for new manufactured
homes, as defined in section 603 of the
National Manufactured Construction and Safety
Standards Act of 1974 (42 U.S.C. 5402) and
regulated under associated regulations, and
previously sold certified manufactured homes;
or
(iii) to mitigate flood risk.
(3) Criteria.--The Secretary shall prioritize awards under
this section by the extent to which the project will assist
low-income families and preserve long-term housing
affordability for residents of an eligible manufactured home
community.
(d) Waivers.--The Secretary may waive or specify alternative
requirements for any provision of title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.) or regulation that the
Secretary administers in connection with use of amounts made available
under this section other than requirements related to fair housing,
nondiscrimination, labor standards, and the environment, upon a finding
that the waiver or alternative requirement is necessary to expedite or
facilitate the use of amounts made available under this section.
(e) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Colonia area.--The term ``colonia area'' means any
census tract that--
(A) is an area of the United States within 150
miles of the contiguous border between the United
States and Mexico, except as otherwise determined by
the Secretary; and
(B) lacks potable water supply, adequate sewage
systems, and lack of decent, safe, sanitary housing,
and other objective criteria as approved by the
Secretary.
(2) Eligible manufactured home community.--The term
``eligible manufactured home community'' means a community
that--
(A) meets the affordable housing safe harbor
requirements of the Internal Revenue Service under
section 601.201 of title 26, Code of Federal
Regulations; and
(B)(i) is owned by the residents of the
manufactured housing community through a resident-
controlled entity, as defined by the Secretary, in
which at least two-thirds of residents are member-
owners of the land-owning entity; or
(ii) the Secretary otherwise determines is subject
to such binding agreements as are necessary to ensure
that the manufactured housing community will be
maintained as such a community, and affordable for low-
income families (as such term is defined in section 104
of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12704)), on a long-term basis.
(3) Eligible recipient.--The term ``eligible recipient''
means a partnership of--
(A) a grantee under section 106 of the Housing and
Community Development Act of 1974 (42 U.S.C.5306); and
(B) an eligible manufactured home community, a
nonprofit entity, or a consortia of nonprofit entities
working with an eligible manufactured home community.
(4) Manufactured home community.--The term ``manufactured
home community'' means any community, court, or park equipped
to accommodate manufactured homes for which pad sites, with or
without existing manufactured homes or other allowed homes, or
other suitable sites, are used primarily for residential
purposes, with any additional requirements as determined by the
Secretary, including any manufactured housing community as such
term is used for purposes of the program of the Federal
National Mortgage Association for multifamily loans for
manufactured housing communities and the program of the Federal
Home Loan Mortgage Corporation for loans for manufactured
housing communities.
(f) Implementation.--The Secretary shall have authority to issue
such regulations or other notices, guidance, forms, instructions, and
publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40102. LEAD-BASED PAINT HAZARD CONTROL AND HOUSING-RELATED HEALTH
AND SAFETY HAZARD MITIGATION IN HOUSING OF FAMILIES WITH
LOWER INCOMES.
(a) Appropriation.--In addition to amounts otherwise made
available, there is appropriated to the Secretary of Housing and Urban
Development (in this section referred to as the ``Secretary'') for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated--
(1) $6,430,000,000 for grants to States, units of general
local government, Indian tribes or their tribally designated
housing entities, and nonprofit organizations for the
activities under subsection (c) in target housing units, and
common areas servicing such units, where low-income families
reside or are expected to reside that is not public housing,
housing assisted by project-based rental assistance under
section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f), including under subsection (o)(13) of such section, nor
housing assisted under section 202 of the Housing Act of 1959
(12 U.S.C. 1701q) or section 811 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8013);
(2) $500,000,000 for grants to State or local governments
or nonprofit entities for the activities in subsection (c) in
target housing units, and common areas servicing such units,
that are being assisted under the Weatherization Assistance
Program authorized under title IV of the Energy Conservation
and Production Act (42 U.S.C. 6851 et seq.) but are not public
housing, housing assisted by project-based rental assistance
under section 8 of the United States Housing Act of 1937 (42
U.S.C. 1437f), including under subsection (o)(13) of such
section, nor housing assisted under section 202 of the Housing
Act of 1959 (12 U.S.C. 1701q) or section 811 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8013);
(3) $2,000,000,000 for grants to owners of a property
receiving project-based rental assistance under section 8 of
the United States Housing Act of 1937 (42 U.S.C. 1437f),
including under subsection (o)(13) of such section, that meets
the definition of target housing and that has not received a
grant for similar purposes under this Act for the activities in
subsection (c), except subsection (c)(2), in target housing
units receiving such assistance and common areas servicing such
units;
(4) $810,000,000 for costs related to training and
technical assistance to support identification and mitigation
of lead and housing-related health and safety hazards,
research, and evaluation related to activities under this
section; and
(5) $260,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this
section, and the Secretary's lead hazard reduction and related
programs generally including information technology, financial
reporting, research and evaluations, other cross-program costs
in support of programs administered by the Secretary in this
Act, and other costs; the Secretary may transfer and merge
amounts appropriated under this paragraph to section 40301.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Terms and Conditions.--
(1) Income eligibility determinations.--Notwithstanding any
inconsistent requirements, the Secretary may make income
determinations of eligibility for enrollment of housing units
for grants awarded under--
(A) subsection (a)(1) using criteria under title I
of the Housing and Community Development Act of 1974
(42 U.S.C. 5301 et seq.), title II of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
12701 et seq.), section 8 of the United States Housing
Act of 1937 (42 U.S.C. 1437f), title IV of the Energy
Conservation and Production Act (42 U.S.C. 6851 et
seq.), section 2605 of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8624), or section
2044 of title 38, United States Code, as determined
appropriate by the Secretary;
(B) subsection (a)(2) using criteria under section
8 of the United States Housing Act of 1937 (42 U.S.C.
1437f) or title IV of the Energy Conservation and
Production Act (42 U.S.C. 6851 et seq.).
(2) Housing families with young children.--An owner of
rental property that receives assistance under subsection
(a)(3) shall give priority in renting units for which the lead-
based paint has been abated pursuant to subsection (a)(3), for
not less than 3 years following the completion of lead
abatement activities, to families with a child under the age of
6 years.
(3) Administrative expenses.--A recipient of a grant under
this section may use up to 10 percent of the grant for
administrative expenses associated with the activities funded
by this section.
(c) Eligible Activities.--Grants awarded under this section shall
be used for--
(1) abatement of lead-based paint in target housing;
(2) interim controls of lead-based paint hazards in target
housing;
(3) lead-based paint inspections;
(4) lead risk assessments;
(5) lead hazard control clearance examinations;
(6) testing for housing-related health and safety hazards;
(7) mitigation of housing-related health and safety
hazards, including lead faucets, fixtures, and interior lines;
(8) technical assistance;
(9) providing work practices training to local residents;
(10) outreach and engagement with community stakeholders,
including stakeholders in disadvantaged communities;
(11) capacity building;
(12) program evaluation and research;
(13) environmental reviews; or
(14) activities that directly or indirectly support the
work under this section, as applicable, that without which such
activities could not be conducted.
(d) Environmental Review.--For purposes of environmental review
pursuant to the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.) and other provisions of law that further the purposes of
such Act, a grant under subsection (a) of this section shall be
considered funds for a special project for purposes of section 305(c)
of the Multifamily Housing Property Disposition Reform Act of 1994 (42
U.S.C. 3547), provided that references in such section 305(c) to
``State or unit of general local government'' shall be deemed to
include Indian tribes.
(e) Definitions.--For purposes of this section, the following
definitions, and definitions in section 1004 of the Residential Lead-
Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851b), shall
apply:
(1) Nonprofit; nonprofit organization.--The terms
``nonprofit'' and ``nonprofit organization'' mean a
corporation, community chest, fund, or foundation not organized
for profit, but organized and operated exclusively for
religious, charitable, scientific, testing for public safety,
literary, or educational purposes; or an organization not
organized for profit but operated exclusively for the promotion
of social welfare.
(2) Public housing; public housing agency; low-income
family.--The terms ``public housing'', ``public housing
agency'', and ``low-income family'''' have the same meaning
given such terms in section 3(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b)).
(3) Tribally designated housing entity; indian tribe.--The
terms ``tribally designated housing entity'' and ``Indian
tribe'' have the same meaning given such terms in section 4 of
the Native American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4103).
(4) Unit of general local government.--The term ``unit of
general local government'' has the same meaning given such term
in section 102 of the Housing and Community Development Act of
1974 (42 U.S.C. 5302).
(f) Implementation.--The Secretary shall have the authority to
issue such regulations or other notices, guidance, forms, instructions,
and publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40103. UNLOCKING POSSIBILITIES PROGRAM.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Housing and Urban Development
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated--
(1) $4,260,000,000 for awarding planning grants under this
section to develop and evaluate housing policy plans and
substantially improve housing strategies;
(2) $20,000,000 for research and evaluation related to
housing policy planning and other associated costs;
(3) $70,000,000 to provide technical assistance to grantees
or applicants for grants made available by this section; and
(4) $150,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this
section, including information technology, financial reporting,
research and evaluations, fair housing compliance, and other
cross-program costs in support of programs administered by the
Secretary in this title; the Secretary may transfer and merge
amounts appropriated under this paragraph to section 40301.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Program Establishment.--The Secretary of Housing and Urban
Development shall establish a competitive grant program for--
(1) planning grants to develop and evaluate housing policy
plans and substantially improve housing strategies;
(2) streamlining regulatory requirements and shorten
processes, reform zoning codes, or other initiatives that
reduce barriers to housing supply elasticity and affordability;
(3) developing and evaluating local or regional plans for
urban development to substantially improve urban development
strategies related to sustainability, fair housing, and
location efficiency;
(4) implementation and livable community investment grants;
and
(5) research and evaluation.
(c) Grants.--
(1) Planning grants.--The Secretary shall, under selection
criteria determined by the Secretary, award grants under this
paragraph on a competitive basis to eligible entities to
finance planning activities, including engagement with
community stakeholders and housing practitioners, to--
(A) develop housing policy plans;
(B) substantially improve State or local housing
strategies;
(C) develop new regulatory requirements and
processes, reform zoning codes, or undertake other
initiatives to reduce barriers to housing supply
elasticity and affordability;
(D) develop local or regional plans for urban
development; and
(E) substantially improve urban development
strategies, including strategies to increase
availability and access to affordable housing, to
further access to public transportation or to advance
other sustainable or location-efficient urban
development goals.
(2) Implementation and livable community investment
grants.--The Secretary shall award implementation grants under
this paragraph on a competitive basis to eligible entities for
the purpose of implementing--
(A) completed housing strategies and housing policy
plans and any planning to affirmatively further fair
housing within the meaning of subsections (d) and (e)
of section 808 of the Fair Housing Act (42 U.S.C. 608)
and applicable regulations and for community
investments that support the goals identified in such
housing strategies or housing policy plans;
(B) new regulatory requirements and processes,
reformed zoning codes, or other initiatives to reduce
barriers to housing supply elasticity and affordability
that are consistent with a plan under subparagraph (A);
(C) completed local or regional plans for urban
development and any planning to increase availability
and access to affordable housing, access to public
transportation and other sustainable or location-
efficient urban development goals.
(d) Coordination With FTA Administrator.--To the extent
practicable, the Secretary shall coordinate with the Federal Transit
Administrator in carrying out this section.
(e) Definitions.--For purposes of this section, the following
definitions apply:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State, insular area, metropolitan city, or
urban county, as such terms are defined in section 102
of the Housing and Community Development Act of 1974
(42 U.S.C. 5302); or
(B) for purposes of grants under subsection (b)(1),
a regional planning agency or consortia.
(2) Housing policy plan; housing strategy.--
(A) Housing policy plan.--The term ``housing policy
plan'' means a plan of an eligible entity to, with
respect to the area within the jurisdiction of the
eligible entity--
(i) match the creation of housing supply to
existing demand and projected demand growth in
the area, with attention to preventing
displacement of residents, reducing the
concentration of poverty, and meaningfully
reducing and not perpetuating housing
segregation on the basis of race, color,
religion, natural origin, sex, disability, or
familial status;
(ii) increase the affordability of housing
in the area, increase the accessibility of
housing in the area for people with
disabilities, including location-efficient
housing, and preserve or improve the quality of
housing in the area;
(iii) reduce barriers to housing
development in the area, with consideration for
location efficiency, affordability, and
accessibility; and
(iv) coordinate with the metropolitan
transportation plan of the area under the
jurisdiction of the eligible entity, or other
regional plan.
(B) Housing strategy.--The term ``housing
strategy'' means the housing strategy required under
section 105 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12705).
(f) Costs to Grantees.--Up to 15 percent of a recipient's grant may
be used for administrative costs.
(g) Rules of Construction.--
(1) In general.-- Except as otherwise provided by this
section, amounts appropriated or otherwise made available under
this section shall be subject to the community development
block grant program requirements under title I of the Housing
and Community Development Act of 1974 (42 U.S.C. 5301 et seq.).
(2) Exceptions.--
(A) Housing construction.--Expenditures on new
construction of housing shall be an eligible expense
under this section.
(B) Buildings for general conduct of government .--
Expenditures on building for the general conduct of
government, other than the Federal Government, shall be
eligible under this section when necessary and
appropriate as a part of a natural hazard mitigation
project.
(h) Waivers.--The Secretary may waive or specify alternative
requirements for any provision of title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.) or regulation for the
administration of the amounts made available under this section other
than requirements related to fair housing, nondiscrimination, labor
standards, and the environment, upon a finding that the waiver or
alternative requirement is necessary to expedite or facilitate the use
of amounts made available under this section.
(i) Implementation.--The Secretary shall have the authority to
issue such regulations or other notices, guidance, forms, instructions,
and publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40104. STRENGTHENING RESILIENCE UNDER NATIONAL FLOOD INSURANCE
PROGRAM.
(a) Program Debt.--
(1) Cancellation.--Subject only to paragraphs (2) and (3)
and notwithstanding any other provision of law, all
indebtedness of the Administrator of the Federal Emergency
Management Agency under any notes or other obligations issued
pursuant to section 1309(a) of the National Flood Insurance Act
of 1968 (42 U.S.C. 7 4016(a)) and section 15(e) of the Federal
Insurance Act of 1956 (42 U.S.C. 2414(e)), and outstanding as
of the date of the enactment of this Act, is hereby canceled,
the Administrator and the National Flood Insurance Fund are
relieved of all liability to the Secretary of the Treasury
under any such notes or other obligations, including for any
capitalized interest due under such notes or other obligations
and any other fees and charges payable in connection with such
notes and obligations, and the total amount of notes and
obligations issued by the Administrator pursuant to such
section shall be considered to be reduced by such amount for
purposes of the limitation on such total amount under such
section.
(2) Use of savings.--Effective on and after October 1,
2031, the Administrator of the Federal Emergency Management
Agency shall use any savings accruing from the cancellation of
debt under paragraph (1), including any amounts of interest
payments avoided from such cancellation, only for deposit in
and use under the National Flood Insurance Reserve Fund under
section 1310A of the National Flood Insurance Act of 1968 (42
U.S.C. 4017A).
(3) Treatment of canceled debt.--The amount of the
indebtedness canceled under paragraph (1) may be treated as a
public debt of the United States.
(b) Flood Hazard Mapping and Risk Analysis.----In addition to
amounts otherwise available, there is appropriated to the Administrator
of the Federal Emergency Management Agency for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $3,000,000,000,
to remain available until expended, for necessary expenses for flood
hazard mapping and risk analysis, which shall be in addition to, and
shall supplement--
(1) amounts otherwise available for those purposes,
including amounts appropriated to the National Flood Insurance
Fund established under section 1310 of such Act (42 U.S.C.
4017); and
(2) any funds provided to the Administrator by States and
local governments under section 1360(f)(2) of such Act (42
U.S.C. 4101(f)(2)).
(c) Means-tested Assistance for National Flood Insurance Program
Policyholders.--
(1) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Federal Emergency Management Agency for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated,
$1,000,000,000, to remain available until September 30, 2026,
to carry out a means-tested program under which the
Administrator provides assistance to eligible policyholders in
the form of graduated discounts for insurance costs with
respect to covered properties.
(2) Terms and conditions.--
(A) Discounts.--The Administrator shall use funds
provided under this subsection to establish graduated
discounts available to eligible policyholders under
this subsection, with respect to covered properties,
which may be based on the following factors:
(i) The percentage by which the household
income of the eligible policyholder is equal
to, or less than, 120 percent of the area
median income for the area in which the
property to which the policy applies is
located.
(ii) The number of eligible policyholders
participating in the program authorized under
this subsection.
(iii) The availability of funding.
(iv) Any other factor that the
Administrator finds reasonable and necessary to
carry out the purposes of this subsection
(B) Distribution of premium.--With respect to the
amount of the discounts provided under this subsection
in a fiscal year, and any administrative expenses
incurred in carrying out this subsection for that
fiscal year, the Administrator shall, from amounts made
available to carry out this subsection for that fiscal
year, deposit in the National Flood Insurance Fund
established under section 1310 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4017) an amount equal
to those discounts and administrative expenses, except
to the extent that section 1310A of the National Flood
Insurance Act of 1968 (42 U.S.C. 4017a) applies to any
portion of those discounts or administrative expenses,
in which case the Administrator shall deposit an amount
equal to those amounts to which such section 1310A
applies in the National Flood Insurance Reserve Fund
established under such section 1310A.
(C) Requirement on timing.--Not later than 21
months after the date of the enactment of this section,
the Administrator shall issue interim guidance to
implement this subsection which shall expire on the
later of--
(i) the date that is 60 months after the
date of the enactment of this section; or
(ii) the date on which a final rule issued
to implement this subsection takes effect.
(3) Definitions.--In this subsection:
(A) Administrator.--The term ``Administrator''
means the Administrator of the Federal Emergency
Management Agency.
(B) Covered property.--The term ``covered
property'' means--
(i) a primary residential dwelling designed
for the occupancy of from 1 to 4 families; or
(ii) personal property relating to a
dwelling described in clause (i).
(C) Eligible policyholder.--The term ``eligible
policyholder'' means a policyholder with a household
income that is not more than 120 percent of the area
median income for the area in which the property to
which the policy applies is located.
(D) Insurance costs.--The term ``insurance costs''
means, with respect to a covered property for a year--
(i) risk premiums and fees estimated under
section 1307 of the National Flood Insurance
Act of 1968 (42 U.S.C. 4014) and charged under
section 1308 of such Act (42 U.S.C. 4015);
(ii) surcharges assessed under sections
1304 and 1308A of such Act (42 U.S.C. 4011,
4015a); and
(iii) any amount established under section
1310A(c) of such Act (42 U.S.C. 4017a).
SEC. 40105. COMMUNITY RESTORATION AND REVITALIZATION FUND.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Community Restoration and Revitalization
Fund established under subsection (b) for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated--
(1) $5,700,000,000 for awards of planning and
implementation grants to eligible recipients to carry out
community-led projects to stabilize neighborhoods and increase
access to economic opportunity for residents by creating
equitable civic infrastructure and creating or preserving
affordable, accessible housing;
(2) $500,000,000 for awards of grants to eligible
recipients to create, expand, and maintain community land
trusts and shared equity homeownership, including through the
acquisition, rehabilitation, and new construction of
affordable, accessible housing;
(3) $1,000,000,000 for the Secretary to provide technical
assistance, capacity building, program support to applicants,
potential applicants, and recipients of amounts appropriated
for grants under this section; and
(4) $300,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this
section, including information technology, financial reporting,
research and evaluations, fair housing compliance, and other
cross-program costs in support of programs administered by the
Secretary in this title; the Secretary may transfer and merge
amounts appropriated under this paragraph to section 40301.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Establishment of Fund.--The Secretary of Housing and Urban
Development (in this section referred to as the ``Secretary'') shall
establish a Community Restoration and Revitalization Fund (in this
section referred to as the ``Fund'') to award planning and
implementation grants on a competitive basis to eligible recipients as
defined in this section for activities authorized under title I of the
Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.)
for community-led projects that create civic infrastructure to support
a community's social, economic, and civic fabric, create fair,
affordable and accessible housing opportunities, prevent residential
displacement, acquire and remediate blighted properties, and promote
quality job creation and retention.
(c) Grants.--
(1) Geographical areas.--The Secretary shall award grants
from the Fund to eligible recipients within geographical areas
at the neighborhood, county, census tract, or census tract
level, including census tracts adjacent to the project area
that are areas in need of investment, and that have at least
two of the following indicators:
(A) Dwelling unit sales prices that are lower than
the cost to acquire and rehabilitate, or build, a new
dwelling unit.
(B) High proportions of residential and commercial
properties that are vacant due to foreclosure,
eviction, abandonment, or other causes.
(C) Low rates of homeownership.
(D) Disparities in racial and ethnic homeownership
rates.
(E) High and persistent rates of poverty.
(F) High rates of unemployment and underemployment.
(G) Population at risk of displacement due to
rising housing costs.
(H) Historic population loss.
(I) Lack of private sector lending on fair and
competitive terms for individuals to purchase homes or
start small businesses.
(J) Other indicators of economic distress.
(d) Eligible Recipients and Applicants.--
(1) Eligible recipient.--An eligible recipient of a grant
under subsection (b)(1) shall be a local partnership of a lead
applicant and one or more joint applicants with the ability to
administer the grant. An eligible recipient of a grant under
subsection (b)(2) shall be a lead applicant with the ability to
administer the grant, including a regional or national
nonprofit, that may include a joint applicant.
(2) Lead applicant.--An eligible lead applicant for a grant
awarded under this section shall be--
(A)(i) a nonprofit organization that--
(I) demonstrates a commitment to anti-
displacement efforts and has expertise in
community planning, engagement, organizing,
housing and community development, or
neighborhood revitalization; and
(II) is located within or serves the
geographical area of the project or that
derives its mission and operational priorities
from the needs of the geographical area of the
project; or
(ii) if the geographical area of the project is
located in any area where no such local nonprofit
organization exists, a national nonprofit organization
with such expertise;
(B) a community development corporation, that is
located within or serves the geographical area of the
project and can demonstrate a track record of making
investments in the geographical area of the project,
and demonstrates a commitment to anti-displacement
efforts;
(C) a community housing development organization,
defined in section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704) or a
community-based development organization, that is
located within or serves the geographical area of the
project and experienced in neighborhood revitalization,
community-based economic development, housing
development activities, and demonstrates a commitment
to anti-displacement efforts; or
(D) a community development financial institution,
as defined by section 103 of the Riegle Community
Development and Regulatory Improvement Act of 1994 (12
U.S.C. 4702), that is located within or serves the
geographical area of the project, demonstrates a
commitment to anti-displacement efforts, and has a
track record of making investments in the geographic
project area.
(3) Joint applicants.--A joint applicant shall be a local,
regional or national entity that is--
(A) an organization that qualifies as a lead
applicant;
(B) a unit of general local government, as defined
in section 102 of the Housing and Community Development
Act of 1974 (42 U.S.C. 5302);
(C) an Indian tribe, as defined in section 102 of
the Housing and Community Development Act of 1974 (42
U.S.C. 5302);
(D) a nonprofit organization;
(E) a community development corporation;
(F) an anchor institution;
(G) a State housing finance agency (as such term is
defined in section 106(h) of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701x(h))) or a
related State agency;
(H) a land bank;
(I) a fair housing enforcement organization (as
such term is defined in section 561 of the Housing and
Community Development Act of 1987 (42 U.S.C. 3616a));
(J) a public housing agency (as such term is
defined in section 3(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b)));
(K) a community development financial institution,
as defined by section 103 of the Riegle Community
Development and Regulatory Improvement Act of 1994 (12
U.S.C. 4702); or
(L) a philanthropic organization.
(e) Eligible Uses.--
(1) In general.--Grants awarded under this section may be
used to support civic infrastructure and housing-related
activities. Projects must include at least one civic
infrastructure and at least one housing-related activity.
(2) Planning grants.--Planning grants awarded under this
section may be used for civic infrastructure and housing-
related activities, including--
(A) fair housing planning, to affirmatively further
fair housing;
(B) planning to prevent displacement especially of
extremely-low, very-low, low- and moderate-income
homeowners, renters, and people experiencing
homelessness;
(C) community planning and outreach;
(D) neighborhood engagement with resident leaders
and community groups;
(E) pre-development activities;
(F) community engagement processes;
(G) market analysis;
(H) financial planning and feasibility; and
(I) site surveys.
(3) Implementation grants.--Implementation grants awarded
under this section may be used for activities eligible under
section 105 of the Housing and Community Development Act of
1974 (42 U.S.C. 5305) and other activities to support civic
infrastructure and housing-related activities, including--
(A) new construction of housing;
(B) demolition of abandoned or distressed
structures, but only if such activity is part of a
strategy that incorporates rehabilitation or new
construction, anti-displacement efforts such as
tenants' right to return and right of first refusal to
purchase, and efforts to increase affordable,
accessible housing and homeownership, except that not
more than 10 percent of any grant made under this
section may be used for activities under this
subparagraph unless the Secretary determines that such
use is to the benefit of existing residents;
(C) facilitating the creation, maintenance, or
availability of rental units, including units in mixed-
use properties, affordable and accessible to a
household whose income does not exceed 80 percent of
the median income for the area, as determined by the
Secretary, for a period of not less than 30 years;
(D) facilitating the creation, maintenance, or
availability of homeownership units affordable and
accessible to households whose incomes do not exceed
120 percent of the median income for the area, as
determined by the Secretary;
(E) establishing or operating land banks; and
(F) providing assistance to existing residents
experiencing economic distress or at risk of
displacement, including purchasing nonperforming
mortgages and clearing and obtaining formal title.
(4) Community land trust grants.--An eligible recipient of
a community land trust grant awarded under this section may use
such grant for activities to support civic infrastructure,
including the production, acquisition, and rehabilitation of
housing for use in a community land trust or shared equity
homeownership program, and expanding the capacity of the
recipient to carry out the grant.
(5) Costs of grantees.--Up to 20 percent of a recipient's
grant may be used for administrative costs.
(f) Rules of Construction.--Except as otherwise provided by this
section, amounts appropriated or otherwise made available under this
section shall be subject to the community development block grant
program requirements under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.).
(g) Waivers.--The Secretary may waive or specify alternative
requirements for any provision of title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.) or regulation for the
administration of the amounts made available under this section other
than requirements related to fair housing, nondiscrimination, labor
standards, and the environment, upon a finding that the waiver or
alternative requirement is necessary to expedite or facilitate the use
of amounts made available under this section.
(h) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Anchor institution.--The term ``anchor institution''
means a school, a library, a healthcare provider, a community
college or other institution of higher education, museum or
cultural institution, or another community support organization
or entity.
(2) Community land trust.--The term ``community land
trust''' means a nonprofit organization or State or local
governments or instrumentalities that--
(A) use a ground lease or deed covenant with an
affordability period of at least 30 years or more to--
(i) make rental and homeownership units
affordable to households; and
(ii) stipulate a preemptive option to
purchase the affordable rentals or
homeownership units so that the affordability
of the units is preserved for successive
income-eligible households; and
(B) monitor properties to ensure affordability is
preserved.
(3) Land bank.--The term ``land bank'' means a government
entity, agency, or program, or a special purpose nonprofit
entity formed by one or more units of government in accordance
with State or local land bank enabling law, that has been
designated by one or more State or local governments to
acquire, steward, and dispose of vacant, abandoned, or other
problem properties in accordance with locally-determined
priorities and goals.
(4) Shared equity homeownership program.--The term ``shared
equity homeownership program'' means a program to facilitate
affordable homeownership preservation through a resale
restriction program administered by a community land trust,
other nonprofit organization, or State or local government or
instrumentalities and that utilizes a ground lease, deed
restriction, subordinate loan, or similar legal mechanism that
includes provisions ensuring that the program shall--
(A) maintain the home as affordable for subsequent
very low-, low-, or moderate-income families for an
affordability term of at least 30 years after
recordation;
(B) apply a resale formula that limits the
homeowner's proceeds upon resale; and
(C) provide the program administrator or such
administrator's assignee a preemptive option to
purchase the homeownership unit from the homeowner at
resale.
SEC. 40106. FAIR HOUSING ACTIVITIES AND INVESTIGATIONS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Housing and Urban Development
(in this section referred to as the ``Secretary'') for fiscal year
2022, out of any money in the Treasury not otherwise appropriated--
(1) $770,000,000 for the Fair Housing Initiatives Program
under section 561 of the Housing and Community Development Act
of 1987 (42 U.S.C. 3616a) to ensure existing and new fair
housing organizations have expanded and strengthened capacity
to address fair housing inquiries and complaints, conduct
local, regional, and national testing and investigations,
conduct education and outreach activities, and address costs of
delivering or adapting services to meet increased housing
market activity and evolving business practices in the housing,
housing-related, and lending markets. Amounts made available
under this section shall support greater organizational
continuity and capacity, including through up to 10-year
grants; and
(2) $230,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this section
and the Fair Housing Initiatives and Fair Housing Assistance
Programs generally, including information technology, financial
reporting, research and evaluations, other cross-program costs
in support of programs administered by the Secretary in this
title, and other costs. The Secretary may transfer and merge
amounts set aside under this paragraph to section 40301.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Implementation.--The Secretary shall have authority to issue
such regulations or other notices, guidance, forms, instructions, and
publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40107. INTERGOVERNMENTAL FAIR HOUSING ACTIVITIES AND
INVESTIGATIONS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Housing and Urban Development
(in this section referred to as the ``Secretary'') for fiscal year
2022, out of any money in the Treasury not otherwise appropriated--
(1) $184,000,000 for support for cooperative efforts with
State and local agencies administering fair housing laws under
section 817 of the Fair Housing Act (42 U.S.C. 3616) to assist
the Secretary to affirmatively further fair housing, and for
Fair Housing Assistance Program cooperative agreements with
interim certified and certified State and local agencies, under
the requirements of subpart C of part 115 of title 24, Code of
Federal Regulations, to ensure expanded and strengthened
capacity of substantially equivalent agencies to assume a
greater share of the responsibility for the administration and
enforcement of fair housing laws; the Secretary may transfer
and merge amounts appropriated by this paragraph to section
40301; and
(2) $66,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this section
and the Fair Housing Assistance and Fair Housing Initiatives
Programs generally, including information technology, financial
reporting, research and evaluations, other cross-program costs
in support of programs administered by the Secretary in this
title, and other costs; the Secretary may transfer and merge
amounts appropriated by this paragraph to section 40301.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Implementation.--The Secretary shall have authority to issue
such regulations or other notices, guidance, forms, instructions, and
publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
Subtitle C--Homeownership Investments
SEC. 40201. FIRST-GENERATION DOWNPAYMENT ASSISTANCE.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the First Generation Downpayment Fund
established under subsection (b) for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated--
(1) $6,825,000,000 for the First-Generation Downpayment
Assistance Fund under this section for allocation among States
that the Secretary of Housing and Urban Development has not
found to be out of compliance with the obligation to
affirmatively further fair housing, in accordance with a
formula established by the Secretary, which shall take into
consideration adult population size excluding homeowners,
median area home prices, and racial disparities in
homeownership rates, to carry out the eligible uses of the Fund
as described in subsection (c);
(2) $2,275,000,000 for the First-Generation Downpayment
Assistance Program under this section for competitive grants to
eligible entities that the Secretary has not found to be out of
compliance with the obligation to affirmatively further fair
housing, to carry out the eligible uses of the Fund as
described in subsection (d);
(3) $500,000,000 for the costs of providing housing
counseling required under the First-Generation Downpayment
Assistance Program under subsection (c)(1); and
(4) $400,000,000 for the costs to the Secretary of
administering and overseeing the implementation of the First-
Generation Downpayment Assistance Program, including
information technology, financial reporting, programmatic
reporting, ensuring fair housing and fair lending compliance,
research and evaluations, technical assistance to recipients of
amounts under this section, and other cross-program costs in
support to programs administered by the Secretary in this Act,
and other costs; the Secretary may transfer and merge accounts
set aside under this clause to section 40301.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Establishment.--The Secretary of Housing and Urban Development
shall establish and manage a fund to be known as the First Generation
Downpayment Fund (in this section referred to as the ``Fund'') for the
uses set forth in subsection (d).
(c) Allocation of Funds.--
(1) Initial allocation.--The Secretary shall allocate and
award funding provided by subsection (a) as provided under such
subsection not later than 12 months after the date of the
enactment of this section.
(2) Reallocation of funds.--If a State or eligible entity
does not demonstrate the capacity to expend grant funds
provided under this section, the Secretary shall reallocate the
grant funds of such grantee among States and eligible entities
that demonstrate to the Secretary the capacity to expend such
amounts and that are satisfactorily meeting the goals of this
section.
(d) Terms and Conditions of Grants Allocated or Awarded From
Fund.--
(1) Uses of funds.--States and eligible entities receiving
grants from the Fund shall--
(A) use such grants to provide assistance on behalf
of a qualified homebuyer who has completed a program of
housing counseling before entering into a sales
purchase agreement, as the Secretary shall require,
provided through a housing counseling agency approved
by the Secretary for--
(i) costs in connection with the
acquisition, involving an eligible mortgage
loan, of an eligible home, including
downpayment costs, closing costs, and costs to
reduce the rates of interest on eligible
mortgage loans;
(ii) subsidies to make shared equity homes
affordable to eligible homebuyers by
discounting the price for which the home will
be sold and to preserve the home's
affordability for subsequent homebuyers; and
(iii) pre-occupancy home modifications that
may be necessary to meet required property
standards or accommodate qualified homebuyers
or members of their household with
disabilities;
(B) use not more than 10 percent of their grant
allocation or award for administrative costs and
training for carrying out the program of the State or
eligible entity to provide assistance with such grant
amounts, as well as to develop the capacity to track
and monitor program outcomes in consultation with
community-based and nonprofit organizations that have
as their mission to advance fair housing and fair
lending; and
(C) comply with the obligation to affirmatively
further fair housing, as defined by the Secretary to
implement section 808(e)(5) of the Fair Housing Act (42
U.S.C. 3608(e)(5)), in any program or activity related
to the use of such funds.
(2) Amount and layering of assistance.--Assistance under
this section--
(A) may be provided to or on behalf of any
qualified homebuyer only once;
(B) may not exceed the greater of $20,000 or 10
percent of the purchase price in the case of a
qualified homebuyer, not to include assistance received
under subsection (d)(1)(A)(iii) for disability related
home modifications, except that the Secretary may
increase such maximum limitation amounts in the case of
a qualified homebuyer who is economically
disadvantaged; and
(C) may be provided to or on behalf of a qualified
homebuyer who is receiving assistance from other
sources, including other State, Federal, local,
private, public, and nonprofit sources, for acquisition
of an eligible home.
(3) Prohibition of priority.--In selecting qualified
homebuyers for assistance with grant amounts under this
section, a State or eligible entity may not provide any
priority or preference for homebuyers who are acquiring
eligible homes with a mortgage loan made, insured, guaranteed,
or otherwise assisted by the State housing finance agency for
the State, any other housing agency of the State, or an
eligible entity when applicable.
(4) Repayment of assistance.--
(A) Requirement.--The Secretary shall require that,
if a homebuyer to or on behalf of whom assistance is
provided from grant amounts under this section fails or
ceases to occupy the property acquired using such
assistance as the primary residence of the homebuyer,
except in the case of assistance is provided in
connection with the purchase of a principal residence
through a shared equity homeownership program, the
homebuyer shall repay to the State or eligible entity,
as applicable, in a proportional amount of the
assistance the homebuyer receives based on the number
of years they have occupied the eligible home up to 5
years, except that no assistance shall be repaid if the
qualified homebuyer occupies the eligible home as a
primary residence for 5 years or more.
(B) Limitation.--Notwithstanding subparagraph (A),
a homebuyer to or on behalf of whom assistance is
provided from grant amounts under this section shall
not be liable to the State or eligible entity for the
repayment of the amount of such shortage if the
homebuyer fails or ceases to occupy the property
acquired using such assistance as the principal
residence of the homebuyer at least in part because of
a hardship, such as death or military deployment; a
financial hardship, such as a significant reduction in
income, or increase in medical expenses; relocation for
a reason related to domestic violence, dating violence,
sexual assault, or stalking, as defined in the
Secretary's regulations implementing the Violence
Against Women Act; or relocation for a reason related
to the homebuyer or a member of the household's
disabilities; or another hardships based on criteria
established by the Secretary, or sells the property
acquired with such assistance before the expiration of
the 60-month period beginning on such date of
acquisition and the capital gains from such sale to a
bona fide purchaser in an arm's length transaction are
less than the amount the homebuyer is required to repay
the State or eligible entity under subparagraph (A).
(5) Community land trusts and shared equity homeownership
programs.--If assistance from grant amounts under this section
is provided in connection with an eligible home made available
through a community land trust or shared equity homeownership
program, such assistance shall remain in the community land
trust or shared equity property upon transfer of the property
to keep the home affordable to the next eligible community land
trust or shared equity homebuyer.
(6) Reliance on borrower attestations.--No additional
documentation beyond the borrower's attestation shall be
required to demonstrate eligibility under subparagraphs (B) and
(C) of subsection (e)(6) and no State, eligible entity, or
creditor shall be subject to liability, including monetary
penalties or requirements to indemnify a Federal agency or
repurchase a loan that has been sold or securitized, based on
the provision of assistance under this section to or on behalf
of a borrower who does not meet the eligibility requirements
under such subparagraphs if the creditor does so in good faith
reliance on borrower attestations of eligibility required under
such subparagraphs.
(7) Reporting.--The Secretary may require the reporting of
such information on the use of grants provided from the Fund as
the Secretary may require to carry out this subsection.
(e) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Community land trust.--The term ``community land
trust''" means a nonprofit organization or State or local
government, agencies or instrumentalities thereof, that--
(A) use a ground lease or deed covenant with an
affordability period of at least 30 years to--
(i) make homeownership units affordable to
households; and
(ii) stipulate a preemptive option to
purchase the affordable homeownership units so
that the affordability of the units is
preserved for successive income-eligible
households; and
(B) monitor properties to ensure affordability is
preserved.
(2) Eligible entity.--The term ``eligible entity'' means--
(A) a minority depository institution, as such term
is defined in section 308 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1463 note);
(B) a community development financial institution,
as such term is defined in section 103 of the Riegle
Community Development and Regulatory Improvement Act of
1994 (12 U.S.C. 4702), that is certified by the
Secretary of the Treasury and targets services to low-
income and socially disadvantaged populations and
provides services in neighborhoods having high
concentrations of minority, low-income and socially
disadvantaged populations; and
(C) any other nonprofit, mission-driven entity that
the Secretary finds has a track record of providing
assistance to homeowners, targets services to low-
income and socially disadvantaged populations, and
provides services in neighborhoods having high
concentrations of minority, low-income, or socially
disadvantaged populations.
(3) Eligible home.--The term ``eligible home'' means a
residential dwelling, including a unit in a condominium or
cooperative project or a manufactured housing unit, that--
(A) consists of 1 to 4 dwelling units; and
(B) will be occupied by the qualified homebuyer, in
accordance with such assurances and commitments as the
Secretary shall require, as the primary residence of
the homebuyer.
(4) Eligible mortgage loan.--The term ``eligible mortgage
loan'' means a single-family residential mortgage loan that--
(A) meets the underwriting requirements and dollar
amount limitations for acquisition by the Federal
National Mortgage Association or the Federal Home Loan
Mortgage Corporation;
(B) is made, insured, or guaranteed under any
program administered by the Secretary;
(C) is made, insured, or guaranteed under title V
of the Housing Act of 1949 (42 U.S.C. 1471 et seq.);
(D) is a qualified mortgage, as such term is
defined in section 129C(b)(2) of the Truth in Lending
Act (15 U.S.C. 1639c(b)(2)); or
(E) is made, insured, or guaranteed for the benefit
of a veteran.
(5) First generation homebuyer.--The term ``first-
generation homebuyer'' means a homebuyer that is, as attested
by the homebuyer--
(A) an individual--
(i) whose living parents or legal guardians
do not, to the best of the individual's
knowledge, have any present fee simple
ownership interest in a principal residence in
any State, excluding ownership of heir
property;
(ii) who, if no parents or legal guardians
are living upon acquisition of the eligible
home to be acquired using such assistance, to
the best of the individual's knowledge, their
parents or legal guardians did not have any
ownership interest in a principal residence in
any State at the time of their death, excluding
ownership of heir property; and
(iii) whose spouse or domestic partner has
not, during the 3-year period ending upon
acquisition of the eligible home to be acquired
using such assistance, had any present
ownership interest in a principal residence in
any State, excluding ownership of heir
property, whether the individual is a co-
borrower on the loan or not; or
(B) an individual who has at any time been placed
in foster care or institutional care whose spouse or
domestic partner has not, during the 3-year period
ending upon acquisition of the eligible home to be
acquired using such assistance, had any ownership
interest in a principal residence in any State,
excluding ownership of heir property, whether such
individuals are co-borrowers on the loan or not.
(6) Qualified homebuyer.--The term ``qualified homebuyer''
means a homebuyer--
(A) having an annual household income that is less
than or equal to--
(i) 120 percent of median income, as
determined by the Secretary, for--
(I) the area in which the home to
be acquired using such assistance is
located; or
(II) the area in which the place of
residence of the homebuyer is located;
or
(ii) 140 percent of the median income, as
determined by the Secretary, for the area
within which the eligible home to be acquired
using such assistance is located if the
homebuyer is acquiring an eligible home located
in a high-cost area;
(B) who is a first-time homebuyer, as such term is
defined at 42 U.S.C. 12704, except that ownership of
heir property shall not be treated as owning a home for
purposes of determining whether a borrower qualifies as
a first-time homebuyer; and
(C) who is a first-generation homebuyer.
(7) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(8) Shared equity homeownership program.--
(A) In general.--The term ``shared equity
homeownership program'' means affordable homeownership
preservation through a resale restriction program
administered by a community land trust, other nonprofit
organization, or State or local government or
instrumentalities.
(B) Affordability requirements.--Any such program
under subparagraph (A) shall--
(i) provide affordable homeownership
opportunities to households; and
(ii) utilize a ground lease, deed
restriction, subordinate loan, or similar legal
mechanism that includes provisions ensuring
that the program shall--
(I) maintain the homeownership unit
as affordable for subsequent very low-,
low-, or moderate-income families for
an affordability term of at least 30
years after recordation;
(II) apply a resale formula that
limits the homeowner's proceeds upon
resale; and
(III) provide the program
administrator or such administrator's
assignee a preemptive option to
purchase the homeownership unit from
the homeowner at resale.
(9) State.--The term ``State'' means any State of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the United States Virgin Islands, Guam, the
Commonwealth of the Northern Mariana Islands, and American
Samoa.
(10) Heir property.--The term ``heir property'' means
residential property for which title passed by operation of law
through intestacy and is held by two or more heirs as tenants
in common.
(f) Implementation.--The Secretary shall have authority to issue
such regulations or other notices, guidance, forms, instructions, and
publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40202. WEALTH-BUILDING HOME LOAN PROGRAM.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated for fiscal year 2022, out of any amounts in the
Treasury not otherwise appropriated--
(1) $480,000,000 to the Secretary of Housing and Urban
Development for carrying out the program established under
subsection (b) and programs of the Federal Housing
Administration and the Government National Mortgage Association
generally, including information technology, financial
reporting, other cross-program costs in support of programs
administered by the Secretary in this Act, other costs, and for
the cost of guaranteed loans and other obligations; and
(2) $20,000,000 to the Secretary of Agriculture for
carrying out the program established under subsection (b) and
programs of the Rural Housing Service generally, including
information technology and financial reporting in support of
the Program administered by the Secretary of Agriculture in
this Act, other costs, and for the cost of guaranteed loans and
other obligations.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Establishment of LIFT HOME FUNDS.--
(1) In general.--There is established in each Loan
Guarantee Agency a fund to be known as the LIFT HOME Fund, into
which amounts appropriated under this section shall be
deposited and which shall be used by each Department for
carrying out the purposes of this section.
(2) Management of fund.--The LIFT HOME Fund of each Loan
Guarantee Agency shall be administered and managed by the
respective Secretary, who shall establish reasonable and
prudent criteria for the management and operation of any
amounts in the Fund.
(c) Use of Funds.--
(1) Transfer of amounts to treasury.--Such portions of the
appropriation to the Secretary of Housing and Urban Development
shall be transferred by the Secretary of Housing and Urban
Development to the Department of the Treasury in an amount
equal to, as determined by the Secretary of the Treasury, in
consultation with the Secretary of Housing and Urban
Development--
(A) the amount the Secretary of the Treasury
estimates to be necessary for the purchase of
securities under the Program during the period for
which the funds are intended to be available;
(B) the difference between--
(i) the Secretary of the Treasury's
receipts from the sale or other disposition of
securities acquired under the Program; and
(ii) the Secretary of the Treasury's costs
in purchasing such securities; and
(C) the Department of the Treasury's administrative
expenses related to the Program.
(2) Credit subsidy.--Such portion of the appropriation to
each Secretary as may be necessary may be used for the cost to
the respective Loan Guarantee Agency of guaranteed loans under
this section. Such costs, including the costs of modifying such
loans, shall be as defined in section 502 of the Congressional
Budget Act of 1974 (2 U.S.C. 661a).
(d) Establishment of the LIFT HOME Program.--Each Secretary shall
establish, and carry out, with respect to any mortgage with a case
number issued on or before December 31, 2025, that is subsequently
insured or guaranteed by such Secretary, a program to make covered
mortgage loans available to eligible homebuyers to purchase a single-
family residence for use as their principal residence (referred to in
this section as the ``Program''), under which--
(1) the Secretary of the Treasury--
(A) shall act as a purchaser, on behalf of the
Secretary of Housing and Urban Development, of
securities that are secured by covered mortgage loans;
(B) may designate financial institutions, including
banks, savings associations, trust companies, security
brokers or dealers, asset managers, investment
advisers, and other institutions and such institutions
shall--
(i) perform all reasonable duties related
to this section as a financial agent of the
United States as may be required; and
(ii) be paid for such duties using
appropriations available to the Secretary of
the Treasury to reimburse financial
institutions in their capacity as financial
agents of the United States;
(C) may use the services of any agency or
instrumentality of the United States or component
thereof on a reimbursable basis, and any such agency or
instrumentality or component thereof is authorized to
provide services as requested by the Secretary using
all authorities vested in or delegated to that agency,
instrumentality, or component;
(D) may manage, and exercise any rights received in
connection with, any financial instruments or assets
purchased or acquired pursuant to the authorities
granted under this section;
(E) may establish and use vehicles to purchase,
hold, and sell financial instruments and other assets;
and
(F) may issue such regulations and other guidance
as may be necessary or appropriate to carry out the
authorities or purposes of this section;
(2) each Secretary of a Loan Guarantee Agency shall--
(A) establish pricing terms for covered mortgage
loans such that the covered mortgage loans carry a
monthly mortgage payment of principal and interest that
is not more than 110 percent and not less than 100
percent of the monthly payment of principal, interest,
and periodic mortgage insurance premium or loan
guarantee fee associated with a newly originated 30-
year mortgage loan with the same loan balance insured
or guaranteed by the Loan Guarantee Agency as
determined by each Secretary, or such pricing terms as
are determined by each Secretary to be necessary to
develop liquidity for securities backed by covered
mortgage loans and expand Program participation by
eligible homebuyers; and
(B) establish an outreach and counseling program to
increase stakeholder awareness of the Program; and
(3) the Secretary of Housing and Urban Development shall--
(A) in consultation with the Secretary of Treasury,
establish the pricing terms for the purchase of
securities guaranteed by the Association secured by
covered mortgage loans such that the covered mortgage
loans carry a monthly mortgage payment of principal and
interest that is not more than 110 percent and not less
than 100 percent of the monthly payment of principal,
interest, and periodic mortgage insurance premium or
loan guarantee fee associated with a newly originated
30-year mortgage loan with the same loan balance
insured or guaranteed by the Loan Guarantee Agency, or
such pricing terms as are determined by the Secretaries
to be necessary to develop liquidity for securities
backed by covered mortgage loans and expand Program
participation by eligible homebuyers;
(B) have the authority to designate mortgage
bankers, financial institutions, including banks,
savings associations, trust companies, security brokers
or dealers, asset managers, investment advisers, and
other institutions and such institutions shall--
(i) perform all reasonable duties related
to this section as an agent of the United
States as may be required; and
(ii) be paid for such duties using
appropriations available under this section to
the Secretary of Housing and Urban Development
to reimburse these entities in their capacity
as agents of the United States;
(C) have the authority to use the services of any
agency or instrumentality of the United States or
component thereof on a reimbursable basis, and any such
agency or instrumentality or component thereof is
authorized to provide services as requested by the
Secretary of Housing and Urban Development using all
authorities vested in or delegated to that agency,
instrumentality, or component;
(D) operate the Program in coordination with the
Association, the Federal Housing Administration, the
Rural Housing Service, and the Secretary of the
Treasury so as to demonstrate feasibility and
workability to market participants, including--
(i) originators and servicers of mortgages;
(ii) issuers of mortgage-backed securities;
and
(iii) investors; and
(E) gain price discovery experience by instructing
the Secretary of the Treasury, following consultation
with the Secretary of Treasury to sell acquired
securities described in subparagraph (A) as soon as
practicable, thereby hastening the development of
liquidity for securities backed by covered mortgage
loans.
(3) Limitation on aggregate loan guarantee authority.--The
aggregate original principal obligation of all covered mortgage
loans under this section for each Loan Guarantee Agency may not
exceed $5,000,000,000.
(4) GNMA guarantee authority.--To carry out the purposes of
this section, the Association may enter into new commitments to
issue guarantees of securities based on or backed by mortgages
insured under this section, not exceeding $10,000,000,000.
(5) GNMA guaranty fee.--To carry out the purposes of this
section, the Association may collect guaranty fees consistent
with section 306(g)(1) of the National Housing Act (12 U.S.C.
1721(g)(1)) that are paid at securitization.
(e) Definitions.--In this section:
(1) Association.--The term ``Association'' means the
Government National Mortgage Association.
(2) Covered mortgage loan.--
(A) In general.--The term ``covered mortgage loan''
means, for purposes of the Program established by the
Secretary of Housing and Urban Development, a mortgage
loan that--
(i) is insured or guaranteed by the Federal
Housing Administration pursuant to section
203(b) of the National Housing Act, subject to
the eligibility criteria set forth in this
subsection, and has a case number issued on or
before December 31, 2025;
(ii) is made for an original term of 20
years or for an original term determined by the
Secretary to be necessary to develop liquidity
for securities backed by covered mortgage loans
and expand Program participation by eligible
homebuyers;
(iii) subject to subparagraph (C) of this
paragraph and notwithstanding section
203(b)(2)(C) of the National Housing Act (12
U.S.C. 1709(b)(2)(C)), has a mortgage insurance
premium of not more than 4 percent of the loan
balance that is paid at closing, financed into
the principal balance of the loan, paid through
an annual premium, or a combination thereof;
(iv) involves a rate of interest that is
fixed over the term of the mortgage loan; and
(v) is secured by a single-family residence
that is the principal residence of an eligible
homebuyer.
(B) The term ``covered mortgage loan'' means, for
purposes of the Program established by the Secretary of
Agriculture, a loan guaranteed under section 502(h) of
the Housing Act of 1949 (42 U.S.C. 1472(h)) that--
(i) notwithstanding section 502(h)(7)(A) of
the Housing Act of 1949 (42 U.S.C.
1472(h)(7)(A)), is made for an original term of
20 years or for an original term determined by
the Secretary to be necessary to develop
liquidity for securities backed by covered
mortgage loans and expand Program participation
by eligible homebuyers; and
(ii) subject to subparagraph (C) of this
paragraph and notwithstanding section
502(h)(8)(A) of the Housing Act of 1949 (42
U.S.C. 1472(h)(8)(A)), has a loan guarantee fee
of not more than 4 percent of the principal
obligation of the loan.
(C) Waiver of mortgage insurance premium
requirement.--Each Secretary, in consultation with the
Secretary of the Treasury, and notwithstanding section
502(h)(8)(A) of the Housing Act of 1949 (42 U.S.C.
1472(h)(8)(A)) for purposes of the Program established
by the Secretary of Agriculture, may waive the mortgage
insurance premium cap or loan guarantee fee cap under
subparagraphs (A)(iii) and (B)(ii) with respect to
covered mortgage loans insured or guaranteed by the
Loan Guarantee Agency of which that Secretary is the
head if necessary to protect the solvency of the
associated insurance fund.
(3) Department.--Unless otherwise specified, the term
``Department'' means the Department of Housing and Urban
Development or the Department of Agriculture, as appropriate.
(4) Eligible homebuyer.--The term ``eligible homebuyer''
means an individual who--
(A) for purposes of the Program established by the
Secretary of Housing and Urban Development--
(i) has an annual household income that is
less than or equal to--
(I) 120 percent of median income
for the area, as determined by the
Secretary of Housing and Urban
Development for--
(aa) the area in which the
home to be acquired using such
assistance is located; or
(bb) the area in which the
place of residence of the
homebuyer is located; or
(II) if the homebuyer is acquiring
an eligible home that is located in a
high-cost area, 140 percent of the
median income, as determined by the
Secretary, for the area within which
the eligible home to be acquired using
assistance provided under this section
is located;
(ii) is a first-time homebuyer, as defined
in paragraph (6) of this subsection; and
(iii) (iii) is a first-generation homebuyer
as defined in paragraph (5) of this subsection;
(B) for purposes of the Program established by the
Secretary of Agriculture--
(i) meets the applicable requirements in
section 502(h) of the Housing Act of 1949 (42
U.S.C. 1472(h)); and
(ii) is a first-time homebuyer as defined
in paragraph (6) of this subsection and a
first-generation homebuyer as defined in
paragraph (5) of this subsection.
(5) First-generation homebuyer.--The term ``first-
generation homebuyer'' means a homebuyer that, as attested by
the homebuyer, is--
(A) an individual--
(i) whose living parents or legal guardians
do not, to the best of the individual's
knowledge, have any present fee simple
ownership interest in a principal residence in
any State, excluding ownership of heir
property;
(ii) if no parents or legal guardians are
living upon acquisition of the eligible home to
be acquired using such assistance, to the best
of the individual's knowledge, whose parents or
legal guardians did not have any ownership
interest in a principal residence in any State
at the time of their death, excluding ownership
of heir property; and
(iii) whose spouse, or domestic partner has
not, during the 3-year period ending upon
acquisition of the eligible home to be acquired
using such assistance, had any present
ownership interest in a principal residence in
any State, excluding ownership of heir
property, whether the individual is a co-
borrower on the loan or not; or
(B) an individual who has at any time been placed
in foster care or institutional care whose spouse or
domestic partner has not, during the 3-year period
ending upon acquisition of the eligible home to be
acquired using such assistance, had any ownership
interest in a principal residence in any State,
excluding ownership of heir property, whether such
individuals are co-borrowers on the loan or not.
(6) First-time homebuyer.--The term ``first-time
homebuyer'' means a homebuyer as defined in section 104 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12704), except that ownership of heir property shall not be
treated as owning a home for purposes of determining whether a
borrower qualifies as a first-time homebuyer.
(7) Heir property.--The term ``heir property'' means
residential property for which title passed by operation of law
through intestacy and is held by two or more heirs as tenants
in common.
(8) Loan guarantee agency.--Unless otherwise specified, the
term ``Loan Guarantee Agency'' means the Federal Housing
Administration of the Department of Housing and Urban
Development or the Rural Housing Service of the Department of
Agriculture, as appropriate.
(9) Secretary.--Unless otherwise specified, the term
``Secretary'' means the Secretary of Housing and Urban
Development or the Secretary of Agriculture, as appropriate.
(f) Reliance on Borrower Attestations.--No additional documentation
beyond the borrower's attestation shall be required to demonstrate
eligibility under paragraph (4) of subsection (e) and no State,
eligible entity, or creditor shall be subject to liability, including
monetary penalties or requirements to indemnify a Federal agency or
repurchase a loan that has been sold or securitized, based on the
provision of assistance under this section to a borrower who does not
meet the eligibility requirements under paragraph (4) of subsection (e)
if the creditor does so in good faith reliance on borrower attestations
of eligibility required under such paragraph.
(g) Implementation.--The Secretary of Housing and Urban
Development, the Secretary of Agriculture, and the Secretary of
Treasury shall have authority to issue such regulations or other
notices, guidance, forms, instructions, and publications as may be
necessary or appropriate to carry out the programs, projects, or
activities authorized under this section, including to ensure that such
programs, projects, or activities are completed in a timely and
effective manner.
SEC. 40203. HUD-INSURED SMALL DOLLAR MORTGAGE DEMONSTRATION PROGRAM.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Housing and Urban Development
(in this section referred to as the ``Secretary'') for fiscal year
2022, out of any money in the Treasury not otherwise appropriated--
(1) $76,000,000 for a program to increase access to small-
dollar mortgages, as defined in subsection (b), which may
include payment of incentives to lenders, adjustments to terms
and costs, individual financial assistance, technical
assistance to lenders and certain financial institutions to
help originate loans, lender and borrower outreach, and other
activities;
(2) $10,000,000 for the cost of insured or guaranteed
loans, including the cost of modifying loans, as defined in
section 502 of the Congressional Budget Act of 1974 (2 U.S.C.
661a); and
(3) $14,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this section
and programs in the Office of Housing generally, including
information technology, financial reporting, research and
evaluations, fair lending compliance, and other cross-program
costs in support of programs administered by the Secretary in
this title, and other costs; the Secretary may transfer and
merge amounts appropriated by this paragraph to section 40301.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Small-dollar Mortgage.--For purposes of this section, the term
``small-dollar mortgage'' means a forward mortgage that--
(1) has an original principal balance of $100,000 or less;
(2) is secured by a one- to four-unit property that is the
mortgagor's principal residence; and
(3) is insured by the Secretary pursuant to title II of the
National Housing Act (12 U.S.C. 1707 et seq.), or guaranteed by
the Secretary pursuant to section 184 or 184A of the Housing
and Community Development Act of 1992 (12 U.S.C. 1715z-13a,
1715z-13b).
(c) Implementation.--The Secretary shall have authority to issue
such regulations or other notices, guidance, forms, instructions, and
publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40204. INVESTMENTS IN RURAL HOMEOWNERSHIP.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Agriculture (in this section
referred to as the ``Secretary''), out of any money in the Treasury not
otherwise appropriated--
(1) $70,000,000 for direct loans made under section 502 of
the Housing Act of 1949 (42 U.S.C. 1472);
(2) $95,000,000 for providing single family housing repair
grants under section 504 of the Housing Act of 1949 (42 U.S.C.
1474), subject to the terms and conditions in subsection (b) of
this section;
(3) $25,000,000 for grants under section 523 of the Housing
Act of 1949 (42 U.S.C. 1490c); and
(4) $10,000,000 for administrative expenses of the
Secretary that in whole or in part support activities funded by
this section and related activities.
Amounts appropriated by this section shall remain available until
expended.
(b) Terms and Conditions.--
(1) Eligibility.--Eligibility for grants from amounts made
available by subsection (a)(2) shall not be subject to the
limitations in section 3550.103(b) of title 7, Code of Federal
Regulations.
(2) Uses.--Notwithstanding the limitations in section
3550.102(a) of title 7, Code of Federal Regulations, grants
from amounts made available by subsection (a)(2) shall be
available for the eligible purposes in section 3550.102(b) of
title 7, Code of Federal Regulations.
SEC. 40205. SELF-HELP HOMEOWNERSHIP OPPORTUNITY PROGRAM.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any amounts in the Treasury not otherwise
appropriated, to the Secretary of Housing and Urban Development--
(1) $49,500,000 for grants under section 11 of the Housing
Opportunity Program Extension Act of 1996 (42 U.S.C. 12805
note); and
(2) $500,000 for costs to the Secretary of administering
and overseeing the implementation of this section, including
information technology, financial reporting, research and
evaluations, fair lending compliance, and other cross-program
costs in support of programs administered by the Secretary in
this title, and other costs.
Amounts appropriated by this section shall remain available until
September 30, 2031.
Subtitle D--HUD and Community Capacity Building
SEC. 40301. PROGRAM ADMINISTRATION, TRAINING, TECHNICAL ASSISTANCE,
CAPACITY BUILDING, AND USICH.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated,--
(1) $1,985,000,000 to the Secretary of Housing and Urban
Development for--
(A) the costs to the Secretary of administering and
overseeing the implementation of this title and the
Department's programs generally, including information
technology, inspections of housing units, research and
evaluation, financial reporting, and other costs; and
(B) new awards or increasing prior awards to
provide training, technical assistance, and capacity
building related to the Department's programs,
including direct program support to program recipients
throughout the country, including insular areas, that
require such assistance with daily operations;
(2) $5,000,000 to the United States Interagency Council on
Homelessness for necessary expenses in carrying out the
functions of the Council pursuant to title II of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11311 et seq.); and
(3) $10,000,000 to the Secretary of Housing and Urban
Development for necessary salaries and expenses of the Office
of the Inspector General of the Department of Housing and Urban
Development in carrying out the Inspector General Act of 1978.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Implementation.--The Secretary shall have authority to issue
such regulations or other notices, guidance, forms, instructions, and
publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
SEC. 40302. COMMUNITY-LED CAPACITY BUILDING.
(a) Appropriation.--In addition to amounts otherwise made
available, there is appropriated to the Secretary of Housing and Urban
Development (in this section referred to as the ``Secretary'') for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated--
(1) $90,000,000 for competitively awarded funds for
technical assistance and capacity building to non-Federal
entities, including nonprofit organizations that can provide
technical assistance activities to community development
corporations, community housing development organizations,
community land trusts, nonprofit organizations in insular
areas, and other mission-driven and nonprofit organizations
that target services to low-income and socially disadvantaged
populations, and provide services in neighborhoods having high
concentrations of minority, low-income, or socially
disadvantaged populations to--
(A) provide training, education, support, and
advice to enhance the technical and administrative
capabilities of community development corporations,
community housing development organizations, community
land trusts, and other mission-driven and nonprofit
organizations seeking to undertake affordable housing
development, acquisition, preservation, or
rehabilitation activities;
(B) provide grants or predevelopment assistance to
community development corporations, community housing
development organizations, and other mission-driven and
nonprofit organizations seeking to undertake affordable
housing development, acquisition, preservation, or
rehabilitation activities; and
(C) carry out such other activities as may be
determined by the grantees in consultation with the
Secretary; and
(2) $10,000,000 for the costs to the Secretary of
administering and overseeing the implementation of this section
and the Department's technical assistance programs generally,
including information technology, research and evaluations,
financial reporting, fair housing compliance, and other cross-
program costs in support of programs administered by the
Secretary in this title and other costs; the Secretary may
transfer and merge amounts set aside under this subsection to
section 40301.
Amounts appropriated by this section shall remain available until
September 30, 2031.
(b) Implementation.--The Secretary shall have authority to issue
such regulations or other notices, guidance, forms, instructions, and
publications as may be necessary or appropriate to carry out the
programs, projects, or activities authorized under this section,
including to ensure that such programs, projects, or activities are
completed in a timely and effective manner.
Subtitle E--Economic Development
SEC. 40401. MINORITY BUSINESS DEVELOPMENT AGENCY.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Minority Business Development Agency for
fiscal year 2022, out of amounts in the Treasury not otherwise
appropriated--
(1) $200,000,000, to remain available until September 30,
2026, for carrying out subsection (b)(1);
(2) $1,200,000,000, to remain available until September 30,
2029, for carrying out subparagraphs (A), (B), (C), (D), (E),
(F), and (H) of subsection (b)(2);
(3) $50,000,000, to remain available until September 30,
2026, for carrying out subparagraph (G) of subsection (b)(2);
(4) $1,500,000,000, to remain available until September 30,
2026, for carrying out subsection (b)(3); and
(5) $150,000,000, to remain available until September 30,
2029, for administrative costs associated with carrying out
subsection (b)(3).
(b) Minority Business Development Agency.--
(1) Rural business centers.--The Director of the Minority
Business Development Agency may enter into agreements with one
or more rural Business Centers of the Agency that are operated
by a minority-serving institution of higher education or by a
consortium of institutions of higher education that is led by a
minority-serving institution of higher education. Under such an
agreement, a rural Business Center shall provide assistance
primarily to eligible business enterprises located within a
rural area, as defined by the Director.
(2) Other activities.--The Director of the Minority
Business Development Agency shall--
(A) pay salaries and related costs for employees;
(B) pay for administrative and other costs to
support initiatives that assist the formation, growth,
and expansion of eligible business enterprises;
(C) establish and provide assistance to Business
Centers and specialty Business Centers, prioritizing
for such establishment in States or regions that lack a
Business Center and have a significant population of
members of an underrepresented community;
(D) establish not fewer than 5 regional offices, in
locations determined by the Director;
(E) conduct an annual forum between the Federal
Government and businesses to review existing programs
and current challenges relating to capital formation by
eligible business enterprises;
(F) establish a program to assist small,
underserved manufacturers in accessing private capital
by accelerating technology adoption and providing
training and support in supply chain integration;
(G) provide grants to minority-serving institutions
of higher education to develop and implement
entrepreneurship curricula; and
(H) collect data and develop research and policies
regarding the needs and development of eligible
business enterprises.
(3) Grants.--
(A) In general.--The Director of the Minority
Business Development Agency may provide grants to--
(i) a eligible business enterprise; and
(ii) an eligible nonprofit organization
that will make subgrants to eligible business
enterprises located in areas with significant
populations of members of underrepresented
communities.
(B) Application.--In making grants and subgrants to
eligible business enterprises and eligible nonprofit
organizations under this section, the Director shall
establish an application process and selection
criteria, which shall include--
(i) assurances that the eligible business
enterprise and eligible nonprofit organization
will use such grants and subgrants to address
gaps in access to capital, assist with startup
costs, or support business expansion;
(ii) criteria for determining the size of
grant or subgrant award for the eligible
business enterprise and eligible nonprofit
organization; and
(iii) other criteria as determined by the
Director.
(C) Eligible nonprofit organizations.--An eligible
nonprofit organization that receives a grant under this
section shall, when making a subgrant to an eligible
business enterprise described under subparagraph
(A)(ii), also use such grant to provide support to the
eligible business enterprise in one or more of the
following ways:
(i) Providing resources, which may include
physical workspace and facilities, to startups
and established eligible business enterprises.
(ii) Providing supports to accelerate the
growth and success of eligible business
enterprises through a variety of services,
including--
(I) access to capital, business
education, and counseling;
(II) networking opportunities;
(III) mentorship opportunities;
(IV) advising on market analysis,
company strategy, revenue, growth,
commercialization, and securing
funding; and
(V) other services intended to aid
in developing eligible business
enterprises.
(D) Business identifiers.--In accepting
applications for grants to eligible business
enterprises or subgrants to eligible business
enterprises under this subsection, the Director shall
allow each grantee or subgrantee to use existing
business identifiers of the subgrantee instead of other
forms of registration or identification.
(E) Eligible nonprofit organization.--In this
paragraph, the term ``eligible nonprofit organization''
means an organization that is described in paragraph
(3) or (6) of section 501(c) of the Internal Revenue
Code of 1986 and that is exempt from taxation under
section 501(a) of such Code for which a primary
activity of the organization is to provide services or
financial support to eligible business enterprises
located in areas with significant populations of
members of underrepresented communities.
(4) Returning funds.--If an entity that receives a grant or
assistance under this subsection fails to use all the funds or
permanently ceases operations on or before September 30, 2031,
the entity shall return the funds to the Minority Business
Development Agency. The Minority Business Development Agency
shall return all such funds to the Treasury if not expended by
September 30, 2031.
(5) Penalties for failure to abide by terms or conditions
of award.--At the discretion of the Director and in addition to
any other civil or criminal consequences, the Director shall
withhold payments to an eligible applicant or order the
eligible applicant to return any assistance provided under this
section for failure to abide by the terms and conditions of
such assistance.
(c) Definitions.--In this section:
(1) Business center.--The term ``Business Center'' means
any business center that--
(A) is established by the Minority Business
Development Agency; and
(B) provides technical business assistance to
minority business enterprises.
(2) Eligible business enterprise.--The term ``eligible
business enterprise'' means a business owned or controlled by
one or more members of an underrepresented community.
(3) Member of an underrepresented community.--The term
``member of an underrepresented community'' means an individual
who is--
(A) a resident of--
(i) a low-income community, as defined in
section 45D(e) of the Internal Revenue Code of
1986;
(ii) a low-income rural community; or
(iii) a HUBZone, as defined in section
31(b) of the Small Business Act (15 U.S.C.
657a);
(B) a member of an Indian or Alaska Native tribe,
band, nation, pueblo, village, community, component
band, or component reservation, individually identified
(including parenthetically) in the most recent list
published pursuant to section 104 of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C.
5131);
(C) an individual with a disability, as defined in
section 3 of the Americans with Disabilities Act of
1990 (42 U.S.C. 12102);
(D) a veteran, as defined in section 101 of title
38, United States Code;
(E) an individual who completed a term of
imprisonment;
(F) an Afghan refugee, including an individual who
has received a Special Immigrant Visa, a P-2
classification, or special parole status; or
(G) an individual otherwise identified by the
Director.
(4) Minority-serving institution of higher education.--The
term ``minority-serving institution of higher education''
means--
(A) an institution described in section 371(a) of
the Higher Education Act of 1965 (20 U.S.C. 1067q(a));
or
(B) a junior or community college, as defined in
section 312 of the Higher Education Act of 1965 (20
U.S.C. 1058).
(5) Specialty business center.--The term ``specialty
Business Center'' means a Business Center that provides
specialty services focusing on specific business needs,
including assistance relating to--
(A) capital access;
(B) Federal procurement;
(C) entrepreneurship;
(D) technology transfer; or
(E) any other area determined necessary or
appropriate based on the priorities of the Director of
the Minority Business Development Agency.
SEC. 40402. MANUFACTURING FACILITY.
(a) In General.--The State Small Business Credit Initiative Act of
2010 (12 U.S.C. 5701 et seq.) is amended--
(1) in section 3003--
(A) in subsection (b), by adding at the end the
following:
``(3) 2022 allocation.--
``(A) In general.--Not later than 30 days after the
date of enactment of this paragraph, the Secretary
shall allocate Federal funds to participating States so
that each State is eligible to receive an amount equal
to what the State would receive under the 2022
allocation, as determined under subparagraph (B).
``(B) 2022 allocation formula.--
``(i) In general.--With respect to States,
the Secretary shall determine the 2022
allocation by allocating Federal funds among
the States based on the manufacturing job
losses per State over the 30-year period ending
on the date of enactment of this paragraph.
``(ii) Manufacturing job loss data.--If the
Secretary determines that manufacturing job
loss data with respect to a State is
unavailable from the Bureau of Labor Statistics
of the Department of Labor, the Secretary shall
consider such other economic and employment
data that is otherwise available for purposes
of determining the employment data of such
State.''; and
(B) by adding at the end the following:
``(g) Rules for the 2022 Allocation.--With respect to the 2022
allocation:
``(1) Transfer of allocation.--The Secretary shall transfer
the full amount of each allocation to a State in a single
transfer and shall complete such transfer before September 30,
2022.
``(2) Use of transferred funds.--States may use allocations
of amounts appropriated for fiscal year 2022 to carry out the
Program only--
``(A) for making Federal contributions to, or for
the account of, an approved State program, for the
purposes of, as determined by the Secretary of the
Treasury--
``(i) maintaining the economic
competitiveness of the United States;
``(ii) maintaining a strong manufacturing
base in the United States, including promoting
advanced manufacturing technology and
innovative technology;
``(iii) increasing the supply and
innovation of factory-built housing for
affordability, accessibility, efficiency, and
resilience; or
``(iv) helping the United States transition
to clean energy or clean manufacturing
processes to combat climate change or to invest
in innovation for climate change adapted
production processes;
``(B) as collateral for a qualifying loan or swap
funding facility, for the purposes described under
subparagraph (A); and
``(C) for paying administrative costs incurred by
the State in implementing an approved State program in
an amount not to exceed 5 percent of such State's
allocation.
``(3) Special permission for certain municipalities.--
Section 3004(d) shall apply to the 2022 allocation to the same
extent as such provision applies to an allocation made under
subsection (d), except that--
``(A) paragraph (1) of section 3004(d) shall be
applied by substituting `6 months' for `9 months'; and
``(B) paragraph (2) of section 3004(d) shall be
applied by substituting `9 months' for `12 months'.'';
and
(2) in section 3009(c), by striking ``7-year period'' and
inserting ``10-year period''.
(b) Appropriation.--In addition to amounts otherwise available,
there is hereby appropriated to the Secretary of the Treasury for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $1,000,000,000, to remain available until September 30,
2031, to carry out the amendments made by subsection (a).
(c) Rule of Application.--The amendments made by this section shall
apply with respect to funds appropriated on the date of enactment of
this section.
TITLE V--COMMITTEE ON HOMELAND SECURITY
SEC. 50001. CYBERSECURITY AND INFRASTRUCTURE SECURITY AGENCY.
In addition to amounts otherwise made available, there is
appropriated for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, to remain available until September 30, 2031--
(1) $50,000,000 to the Cybersecurity and Infrastructure
Security Agency for support of the Multi-State Information
Sharing and Analysis Center;
(2) $25,000,000 to the Cybersecurity and Infrastructure
Security Agency for operating a cyber range;
(3) $25,000,000 to the Cybersecurity and Infrastructure
Security Agency for the execution of a national multi-factor
authentication campaign;
(4) $400,000,000 to the Cybersecurity and Infrastructure
Security Agency for the implementation of Executive Order 14028
(86 Fed. Reg. 26633; relating to improving the cybersecurity of
the United States), including the implementation of multi-
factor authentication, endpoint detection and response,
improved logging, and securing cloud systems;
(5) $50,000,000 to the Cybersecurity and Infrastructure
Security Agency for expansion and operation of the Crossfeed
program;
(6) $75,000,000 to the Cybersecurity and Infrastructure
Security Agency for expansion and operation of the CyberSentry
program;
(7) $10,000,000 to the Cybersecurity and Infrastructure
Security Agency for performing activities in support of the
development of the continuity of the economy plan required
under section 9603(a) of title XCVI of the William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year
2021 (Public Law 116-283; 6 U.S.C. 322);
(8) $20,000,000 to the Cybersecurity and Infrastructure
Security Agency for expanding programs working with
international partners on the protection of critical
infrastructure;
(9) $50,000,000 to the Cybersecurity and Infrastructure
Agency for researching and developing means to secure
operational technology, including industrial control systems,
against cybersecurity vulnerabilities;
(10) $100,000,000 to the Cybersecurity and Infrastructure
Security Agency for cybersecurity workforce development and
education, including providing education, training, and
capacity development, including in collaboration with
historically Black colleges and universities, other minority-
serving institutions, and community colleges, and to the
Cybersecurity Education and Training Program, to be used for
purposes that include--
(A) cybersecurity training and upskilling veterans;
(B) implementing cybersecurity apprenticeships at
the Agency; and
(C) cybersecurity programs for underserved
communities, as a focus for activities authorized under
section 2217 of the Homeland Security Act of 2002 (6
U.S.C. 665f); and
(11) $60,000,000 to the Cybersecurity and Infrastructure
Security Agency for enhancing the cloud architecture, migration
advisory services, and cloud threat hunting capabilities of the
Agency.
TITLE VI--COMMITTEE ON THE JUDICIARY
Subtitle A--Immigration Provisions
SEC. 60001. LAWFUL PERMANENT RESIDENCE FOR CERTAIN ENTRANTS.
(a) In General.--Chapter 5 of title II of the Immigration and
Nationality Act (8 U.S.C. 1255 et seq.) is amended by inserting after
section 245A the following:
``SEC. 245B. ADJUSTMENT OF STATUS OF CERTAIN ENTRANTS.
``(a) In General.--Notwithstanding sections 201, 202, 203, and
245(c), and subject to subsection (c), the Secretary of Homeland
Security shall adjust to the status of an alien lawfully admitted for
permanent residence, an alien described in subsection (b), if such
alien--
``(1) submits an application for adjustment of status in
accordance with procedures established by the Secretary;
``(2) in addition to any administrative processing fee,
pays a supplemental fee of $1,500; and
``(3) completes, to the satisfaction of the Secretary--
``(A) security and law enforcement background
checks; and
``(B) a medical examination consistent with section
221(d).
``(b) Aliens Described.--An alien described in this subsection is
an alien who--
``(1)(A) has been continuously physically present in the
United States since January 1, 2021;
``(B) was 18 years of age or younger on the date on which
the alien entered the United States and has continuously
resided in the United States since such entry; and
``(C) demonstrates--
``(i) a record of honorable service in the
Uniformed Services of the United States;
``(ii) attainment of, or completion of not less
than 2 years, in good standing, of a program leading
to--
``(I) a degree from a United States
institution of higher education; or
``(II) a postsecondary credential from an
area career and technical education school in
the United States;
``(iii) during the 3-year period immediately
preceding the date on which the alien submits an
application for adjustment of status under this
section, a consistent record of earned income in the
United States; or
``(iv)(I) enrollment in a program described in
clause (ii); and
``(II) current employment or participation in an
internship, apprenticeship, or similar training
program;
``(2)(A) has been continuously physically present in the
United States since January 1, 2021; and
``(B) has demonstrated a consistent record of earned income
in the United States in an occupation described in the guidance
of the Department of Homeland Security entitled `Advisory
Memorandum on Ensuring Essential Critical Infrastructure
Workers' Ability to Work During the COVID-19 Response', issued
on August 10, 2021, during the period beginning on January 31,
2020, and ending on August 24, 2021;
``(3)(A) has been continuously physically present in the
United States for not less than 3 years; and
``(B)(i) is a national of a foreign state (or a part of a
foreign state) (or in the case of an alien having no
nationality, is a person who last habitually resided in such
state) with a designation under subsection (b) of section 244
on January 1, 2017;
``(ii) notwithstanding paragraphs (1)(A)(iv) and (3)(C) of
subsection (c) of section 244, had or was otherwise eligible
for temporary protected status under section 244 on that date;
and
``(iii) has not engaged in conduct since that date that
would render the alien ineligible for temporary protected
status under section 244(c)(2); or
``(4)(A) has been continuously physically present in the
United States for not less than 3 years; and
``(B)(i) was eligible for deferred enforced departure as of
January 20, 2021; and
``(ii) has not engaged in conduct since that date that
would render the alien ineligible for deferred enforced
departure.
``(c) Grounds of Ineligibility.--
``(1) In general.--Subject to paragraphs (2) and (3), an
alien seeking adjustment of status under this section shall
demonstrate that the alien--
``(A) is not inadmissible under paragraph (2), (3),
(6)(E), (6)(G), (8), (10)(A), (10)(C), or (10)(D) of
section 212(a);
``(B) has not ordered, incited, assisted, or
otherwise participated in the persecution of any person
on account of race, religion, nationality, membership
in a particular social group, or political opinion;
``(C) has not been convicted of--
``(i) any offense under Federal or State
law, other than a State offense for which an
essential element is the alien's immigration
status, that is punishable by a maximum term of
imprisonment of more than 1 year; or
``(ii) 3 or more offenses under Federal or
State law, other than State offenses for which
an essential element is the alien's immigration
status, for which the alien was convicted on
different dates for each of the 3 offenses and
imprisoned for an aggregate of 90 days or more;
and
``(D) has registered under the Military Selective
Service Act (50 U.S.C. 3801 et seq.), if the alien is
subject to registration under that Act.
``(2) Waiver.--With respect to any benefit under this
section, the Secretary of Homeland Security may waive the
grounds of inadmissibility under paragraph (2), (6)(E), (6)(G),
or (10)(D) of section 212(a)--
``(A) for humanitarian purposes or family unity; or
``(B) if a waiver is otherwise in the public
interest.
``(3) Treatment of expunged convictions.--For purposes of
paragraph (1), the Secretary--
``(A) may not automatically treat an expunged
conviction as a conviction; and
``(B) shall evaluate expunged convictions on a
case-by-case basis according to the nature and severity
of the underlying offense to determine whether, under
the circumstances, the alien should be eligible for
adjustment of status.
``(d) Limitation on Removal.--
``(1) In general.--With respect to an alien who is in
removal proceedings or subject to a final order of removal or
an order of voluntary departure, the Secretary of Homeland
Security shall provide the alien with a reasonable opportunity
to apply for relief under this section if the alien--
``(A) requests an opportunity to so apply; or
``(B) appears to be prima facie eligible for such
relief.
``(2) Stay of removal for certain children.--The Secretary
of Homeland Security shall stay the removal of an alien who--
``(A) meets the requirements of subparagraphs (A)
and (B) of subsection (b)(1);
``(B) subject to paragraphs (2) and (3) of
subsection (c), is not subject to a ground of
ineligibility under paragraph (1) of such subsection;
and
``(C) is enrolled in--
``(i) an early childhood education program;
``(ii) an elementary school;
``(iii) a secondary school; or
``(iv) an education program assisting
students in obtaining a high school diploma or
its equivalent.
``(e) Effective Date.--The section shall take effect on the earlier
of--
``(1) the date that is 180 days after the date of the
enactment of this section; or
``(2) May 1, 2022.''.
(b) Conforming Amendment.--The table of contents for the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is amended by
inserting after the item relating to 245A the following:
``Sec. 245B. Adjustment of status of certain entrants.''.
SEC. 60002. RECAPTURE OF UNUSED IMMIGRANT VISA NUMBERS.
(a) Recapture of Unused Immigrant Visa Numbers.--
(1) Ensuring future use of all immigrant visas.--Section
201(c)(1)(B)(ii) of the Immigration and Nationality Act (8
U.S.C. 1151(c)(1)(B)(ii)) is amended to read as follows:
``(ii) In no case shall the number computed
under subparagraph (A) be less than the sum
of--
``(I) 226,000; and
``(II) the number computed under
paragraph (3).''.
(2) Recapturing unused visas.--Section 201 of the
Immigration and Nationality Act (8 U.S.C. 1151) is amended by
adding at the end the following:
``(g) Recapturing Unused Visas.--
``(1) Family-sponsored visas.--
``(A) In general.--Notwithstanding the numerical
limitations set forth in this section or in sections
202 or 203, beginning in fiscal year 2022, the number
of family-sponsored immigrant visas that may be issued
under section 203(a) shall be increased by the number
computed under subparagraph (B).
``(B) Unused visas.--The number computed under this
subparagraph is the difference, if any, between--
``(i) the difference, if any, between--
``(I) the number of visas that were
originally made available to family-
sponsored immigrants under section
201(c)(1) for fiscal years 1992 through
2021, setting aside any unused visas
made available to such immigrants in
such fiscal years under section
201(c)(3); and
``(II) the number of visas
described in subclause (I) that were
issued under section 203(a), or, in
accordance with section 201(d)(2)(C),
under section 203(b); and
``(ii) the number of visas resulting from
the calculation under clause (i) issued under
section 203(a) after fiscal year 2021.
``(2) Employment-based visas.--
``(A) In general.--Notwithstanding the numerical
limitations set forth in this section or in sections
202 or 203, beginning in fiscal year 2022, the number
of employment-based immigrant visas that may be issued
under section 203(b) shall be increased by the number
computed under subparagraph (B).
``(B) Unused visas.--The number computed under this
paragraph is the difference, if any, between--
``(i) the difference, if any, between--
``(I) the number of visas that were
originally made available to
employment-based immigrants under
section 201(d)(1) for fiscal years 1992
through 2021, setting aside any unused
visas made available to such immigrants
in such fiscal years under section
201(d)(2); and
``(II) the number of visas
described in subclause (I) that were
issued under section 203(b), or, in
accordance with section 201(c)(3)(C),
under section 203(a); and
``(ii) the number of visas resulting from
the calculation under clause (i) issued under
section 203(b) after fiscal year 2021.
``(3) Diversity visas.--Notwithstanding section
204(a)(1)(I)(ii)(II), an immigrant visa for an alien selected
in accordance with section 203(e)(2) in fiscal year 2017, 2018,
2019, 2020, or 2021 shall remain available to such alien (and
the spouse and children of such alien) if--
``(A) the alien was refused a visa, prevented from
seeking admission, or denied admission to the United
States solely because of Executive Order 13769,
Executive Order 13780, Presidential Proclamation 9645,
or Presidential Proclamation 9983; or
``(B) because of restrictions or limitations on
visa processing, visa issuance, travel, or other
effects associated with the COVID-19 public health
emergency--
``(i) the alien was unable to receive a
visa interview despite submitting an Online
Immigrant Visa and Alien Registration
Application (Form DS-260) to the Secretary of
State; or
``(ii) the alien was unable to seek
admission or was denied admission to the United
States despite being approved for a visa under
section 203(c).''.
SEC. 60003. ADJUSTMENT OF STATUS.
Section 245 of the Immigration and Nationality Act (8 U.S.C. 1255)
is amended by adding at the end the following:
``(n) Visa Availability.--
``(1) In general.--Notwithstanding section (a)(3), the
Secretary of Homeland Security may accept for filing, an
application for adjustment of status from an alien (and the
spouse and children of such alien) if such alien--
``(A) is the beneficiary of an approved petition
under section 204(a)(1);
``(B) pays a supplemental fee of $1,500, plus $250
for each derivative beneficiary; and
``(C) is otherwise eligible for such adjustment.
``(2) Exemption.--The Secretary of State shall exempt an
alien (and the spouse and children of such alien) from the
numerical limitations described in sections 201, 202, and 203
and the Secretary of Homeland Security may adjust the status of
such alien (and the spouse and children of such alien) to
lawful permanent resident if such alien submits or has
submitted an application for adjustment of status and--
``(A) such alien--
``(i) is the beneficiary of an approved
petition under subparagraph (A)(i) or (B)(i)(I)
of section 204(a)(1) that bears a priority date
that is more than 2 years before the date the
alien requests a waiver of the numerical
limitations; and
``(ii) pays a supplemental fee of $2,500;
``(B) such alien--
``(i) is the beneficiary of an approved
petition under subparagraph (E) or (F) of
section 204(a)(1) that bears a priority date
that is more than 2 years before the date the
alien requests a waiver of the numerical
limitations; and
``(ii) pays a supplemental fee of $5,000;
or
``(C) such alien--
``(i) is the beneficiary of an approved
petition under subparagraph (H) of section
204(a)(1) that bears a priority date that is
more than 2 years before the date the alien
requests a waiver of the numerical limitations;
and
``(ii) pays a supplemental fee of $50,000.
``(3) Effective date.--
``(A) In general.--The provisions of this
subsection--
``(i) shall take effect on the earlier of
the date that is--
``(I) 180 days after the date of
the enactment of this subsection; or
``(II) May 1, 2022; and
``(ii) except as provided in subparagraph
(B), shall cease to have effect on September
30, 2031.
``(B) Continuation.--Paragraph (2) shall continue
in effect with respect to an alien who requested a
waiver of the numerical limitations and paid the
requisite fee prior to the date described in
subparagraph (A)(ii), until the Secretary of Homeland
Security renders a final administrative decision on
such application.''.
SEC. 60004. ADDITIONAL SUPPLEMENTAL FEES.
(a) Treasury.--The supplemental fees described in subsection (b) of
this section, and in sections 245B(a)(2) and 245(n) of the Immigration
and Nationality Act, as added by this subtitle, shall be deposited in
the general fund of the Treasury of the United States.
(b) Supplemental Petition Fee.--Section 204(a)(1) of the
Immigration and Nationality Act (8 U.S.C. 1154(a)(1)) is amended--
(1) in subparagraph (A)(i), by adding at the end the
following: ``A petition for classification by reason of a
relationship described in paragraph (1), (3), or (4) of section
203(a) shall be accompanied by a supplemental fee in the amount
of $100.'';
(2) in subparagraph (B)(i)(I), by adding at the end the
following: ``Such petition shall be accompanied by a
supplemental fee in the amount of $100.'';
(3) in subparagraph (E), by adding at the end the
following: ``Such petition shall be accompanied by a
supplemental fee in the amount of $800.'';
(4) in subparagraph (F), by adding at the end the
following: ``Such petition shall be accompanied by a
supplemental fee in the amount of $800.''; and
(5) in subparagraph (H), by adding at the end the
following: ``Such petition shall be accompanied by a
supplemental fee in the amount of $15,000.''.
SEC. 60005. U.S. CITIZENSHIP AND IMMIGRATION SERVICES.
In addition to amounts otherwise available, there is appropriated
to U.S. Citizenship and Immigration Services for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated,
$2,800,000,000, to remain available until expended, for the purpose of
increasing the capacity of U.S. Citizenship and Immigration Services to
efficiently adjudicate applications described in sections 245B and
245(n) of the Immigration and Nationality Act, as added by sections
60001 and 60003 of this Act, respectively, and to reduce case
processing backlogs.
Subtitle B--Community Violence Prevention
SEC. 61001. FUNDING FOR COMMUNITY-BASED VIOLENCE INTERVENTION
INITIATIVES.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Attorney General for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $2,500,000,000,
to remain available until September 30, 2031, for the purposes
described in subsection (b).
(b) Use of Funding.--The Attorney General, acting through the
Assistant Attorney General of the Office of Justice Programs, the
Director of the Office of Community Oriented Policing Services, and the
Director of the Office on Violence Against Women, shall use amounts
appropriated by subsection (a)--
(1) to award competitive grants or contracts to units of
local government, States, Indian Tribes, nonprofit community-
based organizations, victim services providers, or other
entities as determined by the Attorney General, to support
evidence-informed intervention strategies to reduce community
violence;
(2) to support training, technical assistance, research,
evaluation, and data collection on strategies to effectively
reduce community violence and ensure public safety; and
(3) to support research, evaluation, and data collection on
the differing impact of community violence on demographic
categories.
(c) Expenditure Requirement.--All expenditures made pursuant to
subsection (a) shall be made on or before September 30, 2031.
TITLE VII--COMMITTEE ON NATURAL RESOURCES
Subtitle A--Bureau of Indian Affairs and Indian Health Service
SEC. 70101. TRIBAL CONSULTATION.
In addition to amounts otherwise available, there is appropriated
to the Department of the Interior for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $30,000,000, to
remain available until September 30, 2031, except that no amounts may
be expended after September 30, 2031, for the purposes of conducting
consultation with Tribal Governments.
SEC. 70102. BUREAU OF INDIAN AFFAIRS.
(a) BIA Road Maintenance.--In addition to amounts otherwise
available, there is appropriated to the Bureau of Indian Affairs for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $300,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for carrying out the Act of November 2, 1921 (25 U.S.C. 13; commonly
known as the ``Snyder Act'') for Bureau of Indian Affairs road
maintenance and to address the deferred maintenance backlog, of which
no more than 2 percent shall be used for administrative costs to carry
out this subsection.
(b) BIA Public Safety.--In addition to amounts otherwise available,
there is appropriated to the Bureau of Indian Affairs for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$200,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for carrying out
the Act of November 2, 1921 (25 U.S.C. 13; commonly known as the
``Snyder Act'') for Bureau of Indian Affairs Public Safety and Justice,
of which no more than 2 percent shall be used for administrative costs
to carry out this subsection.
(c) BIA Climate Resilience.--In addition to amounts otherwise
available, there is appropriated to the Bureau of Indian Affairs for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $1,000,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for carrying out the Act of November 2, 1921 (25 U.S.C. 13; commonly
known as the ``Snyder Act'') for Tribal climate resilience and
adaptation programs, of which no more than 2 percent shall be used for
administrative costs to carry out this subsection.
(d) Tribal Housing.--In addition to amounts otherwise available,
there is appropriated to the Bureau of Indian Affairs for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$500,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for carrying out
the Act of November 2, 1921 (25 U.S.C. 13; commonly known as the
``Snyder Act'') to improve Tribal housing, of which no more than 2
percent shall be used for administrative costs to carry out this
subsection.
(e) Tribal Energy.--In addition to amounts otherwise available,
there is appropriated to the Bureau of Indian Affairs for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$35,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for carrying out
the Act of November 2, 1921 (25 U.S.C. 13; commonly known as the
``Snyder Act'') for Tribal energy programs, of which no more than 2
percent shall be used for administrative costs to carry out this
subsection.
(f) Small and Needy Program.--Funds made available under this
section shall be excluded from the calculation of funds received by
those Tribal Governments that participate in the ``Small and Needy''
program.
(g) One-Time Basis Funds.--Funds made available under this section
to Tribes and Tribal organizations under the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 5301) shall be available on a
one-time basis. Such nonrecurring funds shall not be part of the amount
required by section 106 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 5325), and such funds shall only be used for
the purposes identified in this section.
SEC. 70103. INDIAN HEALTH SERVICE.
(a) IHS Information Technology.--In addition to amounts otherwise
available, there is appropriated to the Indian Health Service for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $140,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for carrying out the Act of August 5, 1954 (68 Stat. 674), the Indian
Self-Determination and Education Assistance Act, the Indian Health Care
Improvement Act, and titles II and III of the Public Health Service
Act, with respect to the Indian Health Service, for Indian Health
Service electronic records (25 U.S.C. 1660h), telehealth, system
modernization, and information technology infrastructure.
(b) Urban Indian Health.--In addition to amounts otherwise
available, there is appropriated to the Indian Health Service for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $42,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for carrying out the Act of August 5, 1954 (68 Stat. 674), the Indian
Self-Determination and Education Assistance Act, the Indian Health Care
Improvement Act, and titles II and III of the Public Health Service
Act, with respect to the Indian Health Service, for the Urban Indian
Health program for renovations, construction, expansion of facilities,
including leased facilities, which shall be in addition to other
amounts made available for Urban Indian organizations (as defined in
section 4 of the Indian Health Care Improvement Act 25 U.S.C. 1603))
under this subsection.
(c) IHS Facilities Maintenance.--In addition to amounts otherwise
available, there is appropriated to the Indian Health Service for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $610,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for carrying out the Act of August 5, 1954 (68 Stat. 674), the Indian
Self-Determination and Education Assistance Act, the Indian Health Care
Improvement Act, and titles II and III of the Public Health Service
Act, with respect to the Indian Health Service, for maintenance and
improvement of Indian Health Service and Tribal facilities.
(d) Green Infrastructure.--In addition to amounts otherwise
available, there is appropriated to the Indian Health Service for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $10,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for carrying out the Act of August 5, 1954 (68 Stat. 674), the Indian
Self-Determination and Education Assistance Act, the Indian Health Care
Improvement Act, and titles II and III of the Public Health Service
Act, with respect to the Indian Health Service, for sustainability
features for existing facilities.
(e) Inpatient and Community Health Facilities.--In addition to
amounts otherwise available, there is appropriated to the Indian Health
Service for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $40,000,000, to remain available until
September 30, 2031, except that no amounts may be expended after
September 30, 2031, for carrying out the Act of August 5, 1954 (68
Stat. 674), the Indian Self-Determination and Education Assistance Act,
the Indian Health Care Improvement Act, and titles II and III of the
Public Health Service Act, with respect to the Indian Health Service,
for Inpatient and Community Health Facilities Design, Construction, in
accordance with 25 U.S.C. 1665h.
(f) Medical Equipment.--In addition to amounts otherwise available,
there is appropriated to the Indian Health Service for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$150,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for carrying out
the Act of August 5, 1954 (68 Stat. 674), the Indian Self-Determination
and Education Assistance Act, the Indian Health Care Improvement Act,
and titles II and III of the Public Health Service Act, with respect to
the Indian Health Service, for maintaining, upgrading, and replacing
medical equipment for IHS and Tribal facilities.
(g) Small Ambulatory Construction.--In addition to amounts
otherwise available, there is appropriated to the Indian Health Service
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $60,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for carrying out the Act of August 5, 1954 (68 Stat. 674), the Indian
Self-Determination and Education Assistance Act, the Indian Health Care
Improvement Act, and titles II and III of the Public Health Service
Act, with respect to the Indian Health Service, for the small
ambulatory construction program.
(h) Personnel Quarters Construction.--In addition to amounts
otherwise available, there is appropriated to the Indian Health Service
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $278,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for carrying out the Act of August 5, 1954 (68 Stat. 674), the Indian
Self-Determination and Education Assistance Act, the Indian Health Care
Improvement Act, and titles II and III of the Public Health Service
Act, with respect to the Indian Health Service, for personnel quarters
construction.
(i) IHS Priority Health Care Facilities.--In addition to amounts
otherwise available, there is appropriated to the Indian Health Service
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $2,000,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for projects identified through the health care facility priority
system established and maintained pursuant to section 301(c) of the
Indian Health Care Improvement Act (25 U.S.C. 1631(c)).
(j) Facilities Support.--In addition to amounts otherwise
available, there is appropriated to the Indian Health Service for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $170,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for environmental health and facilities support activities of the
Indian Health Service.
(k) Nonrecurring Funds.--Funds made available under this section to
Tribes and Tribal organizations under the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5301 et seq.) shall be available on
a one-time basis. Such nonrecurring funds shall not be part of the
amount required by section 106 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5325), and such funds shall only be
used for the purposes identified in this section.
Subtitle B--Subcommittee on National Parks, Forests, and Public Lands
SEC. 70201. OAK FLAT WITHDRAWAL.
(a) Definitions.--In this section:
(1) Disposal.--The term ``disposal'' means that the lands
identified are not available under the proceedings outlined
under section 203 of the Federal Land Policy and Management Act
of 1976 (43 U.S.C. 1713).
(2) Entry.--The term ``entry'' has the meaning as it is
used under section 103(j) of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702(j)), in its application
to lands under the jurisdiction of the Secretary.
(3) Location.--The term ``location'' has the meaning as it
is used under section 2320 of the Revised Statutes (30 U.S.C.
23), in its application to lands under the jurisdiction of the
Secretary;
(4) Oak flat withdrawal area.--the term ``Oak Flat'' means
the approximately 2,422 acres of Forest System land in the
Tonto National Forest in southeastern Arizona commonly known as
``Oak Flat'' and generally depicted as ``Oak Flat Withdrawal
Area'' on the map titled ``Oak Flat Withdrawal'' and dated June
15, 2021.
(5) Patent.--The term ``patent'' has the meaning as it is
used under section 2325 of the Revised Statutes (30 U.S.C. 29),
in its application to lands under the jurisdiction of the
Secretary.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(b) Repeal.--Section 3003 of the Carl Levin and Howard P. ``Buck''
McKeon National Defense Authorization Act for Fiscal Year 2015 (16
U.S.C. 539p) is repealed.
(c) Withdrawal.--Subject to valid rights in existence on the date
of the enactment of this section, Oak Flat is withdrawn from all forms
of disposal, location, entry, and patent.
SEC. 70202. CIVILIAN CLIMATE CORPS.
(a) National Park Service Civilian Climate Corps.--
(1) Definitions.--With regard to this subsection:
(A) Conservation project.--The term ``conservation
project'' means a project for the conservation,
restoration, construction, or rehabilitation of
natural, cultural, historic, archaeological,
recreational, or scenic resources.
(B) Corps program.--The term ``corps program''
means a program established by a Federal, State,
Tribal, or local government, or nonprofit organization
that performs conservation projects on Public Lands.
(C) Public lands.--The term ``Public Lands'' means
lands administered by the National Park Service.
(2) In general.--In addition to amounts otherwise
available, there is appropriated to the National Park Service
for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $1,700,000,000, to remain available
until September 30, 2031, except that no amounts may be
expended after September 30, 2031, for carrying out education
and job training projects and conservation projects on Public
Lands, including through the use of direct expenditure,
contracts, grants, and cooperative agreements with corps
programs.
(3) Administrative expenses.--Of the funds provided by this
subsection, no more than 2 percent shall be used for
administrative costs to carry out this section.
(b) Bureau of Land Management Civilian Climate Corps.--
(1) Definitions.--With regard to this subsection:
(A) Conservation project.--The term ``conservation
project'' means a project for the conservation,
restoration, construction, or rehabilitation of
natural, cultural, historic, archaeological,
recreational, or scenic resources.
(B) Corps program.--The term ``corps program''
means a program established by a Federal, State,
Tribal, or local government, or nonprofit organization
that performs conservation projects on Public Lands.
(C) Public lands.--The term ``Public Lands'' means
lands administered by the Bureau of Land Management.
(2) In general.--In addition to amounts otherwise
available, there is appropriated to the Bureau of Land
Management for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $900,000,000, to remain
available until September 30, 2031, except that no amounts may
be expended after September 30, 2031, for carrying out
education and job training projects and conservation projects
on Public Lands, including through the use of direct
expenditure, contracts, grants, and cooperative agreements with
corps programs.
(3) Administrative expenses.--Of the funds provided by this
subsection, no more than 2 percent shall be used for
administrative costs to carry out this section.
(c) United States Fish and Wildlife Service Civilian Climate
Corps.--
(1) Definitions.--With regard to this subsection:
(A) Conservation project.--The term ``conservation
project'' means a project for the conservation,
restoration, construction, or rehabilitation of
natural, cultural, historic, archaeological,
recreational, or scenic resources.
(B) Corps program.--The term ``corps program''
means a program established by a Federal, State,
Tribal, or local government, or nonprofit organization
that performs conservation projects on Public Lands.
(C) Public lands.--The term ``Public Lands'' means
lands administered by the United States Fish and
Wildlife Service.
(2) In general.--In addition to amounts otherwise
available, there is appropriated to the United States Fish and
Wildlife Service for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $400,000,000, to remain
available until September 30, 2031, except that no amounts may
be expended after September 30, 2031, for carrying out
education and job training projects and conservation projects
on Public Lands, including through the use of direct
expenditure, contracts, grants, and cooperative agreements with
corps programs.
(3) Administrative expenses.--Of the funds provided by this
subsection, no more than 2 percent shall be used for
administrative costs to carry out this section.
(d) Tribal Civilian Climate Corps.--
(1) Definitions.--With regard to this subsection:
(A) Conservation project.--The term ``conservation
project'' means any project for the conservation,
restoration, construction, or rehabilitation of
natural, cultural, historic, archaeological,
recreational, or scenic resources.
(B) Corps program.--The term ``corps program''
means a program established by a Federal, State,
Tribal, or local government, or nonprofit organization
that performs appropriate conservation projects on
Public Lands.
(C) Indian land.--The term ``Indian land'' means
land of an Indian Tribe or an Indian individual that
is--
(I) held in trust by the United States; or
(ii) subject to a restriction against
alienation imposed by the United States.
(D) Indian tribe.--The term ``Indian Tribe'' has
the meaning given the term in section 101 of the
Federally Recognized Indian Tribe List Act (25 U.S.C.
5130).
(E) Native hawaiian.--The term ``Native Hawaiian''
means any individual who is--
(I) a citizen of the United States; and
(ii) a descendant of the aboriginal people
who, before 1778, occupied and exercised
sovereignty in the area that now comprises the
State of Hawaii, as evidenced by--
(I) genealogical records;
(II) Kupuna (elders) or Kamaaina
(long-term community residents)
verification; or
(III) certified birth records.
(F) Native hawaiian organization.--The term
``Native Hawaiian organization'' means a private
nonprofit organization that--
(I) serves the interests of Native
Hawaiians;
(ii) has Native Hawaiians in substantive
and policymaking positions within the
organization; and
(iii) is recognized by the Governor of
Hawaii for the purposes of planning,
conducting, or administering programs (or
portions of programs) for the benefit of Native
Hawaiians.
(2) In general.--In addition to amounts otherwise
available, there is appropriated to the Bureau of Indian
Affairs for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $500,000,000, to remain available
until September 30, 2031, except that no amounts may be
expended after September 30, 2031, for carrying out education
and job training projects and conservation projects, including
through the use of direct expenditure, contracts, grants, and
cooperative agreements with corps programs, and including
projects on Indian lands, pursuant to an agreement between an
Indian Tribe or Native Hawaiian organization and a corps
program for the benefit of an Indian Tribe or Native Hawaiians.
None of the funds provided by this subsection shall be subject
to cost-share requirements.
(3) Administrative expenses.--Of the funds provided by this
subsection, no more than 2 percent shall be used for
administrative costs to carry out this section.
SEC. 70203. PRESIDIO TRUST.
(a) Presidio Trust Defined.--With regard to this section, the term
``Presidio Trust'' means the entity established under section 103(a) of
title I of division I of Public Law 104-333 and under the requirements
placed upon that entity by section 104(a) of title I of division I of
Public Law 104-333.
(b) In General.--In addition to amounts otherwise available, there
is appropriated to the Presidio Trust for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $200,000,000, to
remain available until September 30, 2026, for carrying out projects
identified by the Presidio Trust in accordance with the purposes
identified under the first section of Public Law 92-589 (16 U.S.C.
460bb).
SEC. 70204. GRAND CANYON.
(a) Definition.--In this section:
(1) Disposal.--The term ``disposal'' means that the lands
identified are not available under the proceedings outlined
under section 203 of the Federal Land Policy and Management Act
of 1976 (43 U.S.C. 1713).
(2) Entry.--The term ``entry'' has the meaning as it is
used under section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702(j)), in its application
to lands under the jurisdiction of the Secretary.
(3) Grand canyon protection area.--The term ``Grand Canyon
Protection Area'' means the approximately 1,054,923 acres of
land depicted as ``Federal Mineral Estate to be Withdrawn'' on
the map entitled ``Grand Canyon Protection Area'' and dated
August 23, 2021.
(4) Location.--The term ``location'' has the meaning as it
is used under section 2320 of the Revised Statutes (30 U.S.C.
23), in its application to lands under the jurisdiction of the
Secretary.
(5) Patent.--The term ``patent'' has the meaning as it is
used under section 2325 of the Revised Statutes (30 U.S.C. 29),
in its application to lands under the jurisdiction of the
Secretary.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(b) Withdrawal.--In addition to amounts otherwise available, there
is appropriated to the Bureau of Land Management for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$1,500,000, to remain available until September 30, 2026, to carry out,
subject to valid rights in existence on the date of enactment of this
section, the withdrawal of the Grand Canyon Protection Area from all
forms of disposal, location, entry, and patent.
SEC. 70205. WILDFIRE.
(a) Protecting Communities and Ecosystems From Wildfire.--In
addition to amounts otherwise available, there is appropriated to the
Bureau of Land Management for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $900,000,000, to remain available
until September 30, 2031, except that no amounts may be expended after
September 30, 2031, to reduce wildfire risk on landscapes and
communities through fire preparedness, fire science and research
(including improved fireshed mapping and management), emergency
rehabilitation, rural fire assistance, noncommercial fuels management
activities in the wildland-urban interface, the renovation or
construction of fire facilities, and for expenses necessary to support
firefighter workforce reforms. None of the funds provided by this
subsection shall be used for salvage logging.
(b) Tribal Wildfire Prevention.--In addition to amounts otherwise
available, there is appropriated to the Bureau of Indian Affairs for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
For carrying out the National Indian Forest Resources Management Act
(25 U.S.C. 3101 et seq.) for renewable and manageable resources,
communications, economic and cultural benefits, improved fireshed
mapping and management, and to protect Tribal forest lands from
wildfire.
(c) Forest Technology Improvements.--In addition to amounts
otherwise available, there is appropriated to the Office of Wildland
Fire Management for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $1,000,000, to remain available until
September 30, 2031, except that no amounts may be expended after
September 30, 2031, for carrying out a research, development, and
testing pilot program to--
(1) assess new technologies, including unmanned aircraft
system, geospatial, or remote sensing technologies, across all
reforestation activities;
(2) accelerate the deployment and integration of such
technologies into the operations of the Secretary of the
Interior; and
(3) collaborate and cooperate with State, Tribal, and
private geospatial information system organizations with
respect to such technologies.
SEC. 70206. URBAN PARKS.
In addition to amounts otherwise available, there is appropriated
to the National Park Service for fiscal year 2022, out of any amounts
in the Treasury not otherwise appropriated, $100,000,000, to remain
available until September 30, 2026, to carry out direct, competitive
grants to localities to create or significantly enhance access to parks
or outdoor recreation facilities in urban areas, in accordance with the
authorities outlined under section 200305(e)(2)(A) or 200305(e)(3) of
title 54, United States Code, and subject to limitations outlined under
section 200305(f)(3) of such title, of which no more than 2 percent
shall be used for administrative costs to carry out this section.
SEC. 70207. EVERY KID OUTDOORS.
(a) Definitions.--With respect to this section:
(1) Federal land and waters.--The term ``Federal land and
waters'' means any Federal land or body of water under the
jurisdiction of the Director to which the public has access.
(2) Director.--The term ``Director'' means the Director of
the National Park Service.
(3) Student or students.--The term ``student'' or
``students'' means any fourth, fifth, or sixth grader or home-
schooled learner 10 years of age residing in the United States.
(b) In General.--In addition to amounts otherwise available, there
is appropriated to the National Park Service for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated, $100,000,000,
to remain available until September 30, 2031, except that no amounts
may be expended after September 30, 2031, for the carrying out of the
issuance and administration of passes, effective during the period
beginning on September 1 and ending on August 31 of the following year,
at the request of a student, which allows access, when the student to
which the pass was issued is present, to Federal lands and waters for
which access is subject to an entrance, standard amenity, or day use
fee, free of charge for the student and three accompanying adults, and
for carrying out the purposes outlined under section 9001(b)(3)(D) of
Public Law 116-9.
SEC. 70208. NATIONAL PARK SERVICE CLIMATE RESILIENCE.
In addition to amounts otherwise available, there is appropriated
to the National Park Service for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $115,000,000, to remain
available until September 30, 2031, except that no amounts may be
expended after September 30, 2031, for the protection, restoration, and
resiliency of public lands and resources in accordance with the
purposes outlined in section 100101(a) of title 54, United States Code.
None of the funds provided by this section shall be subject to cost-
sharing requirements.
SEC. 70209. BUREAU OF LAND MANAGEMENT CLIMATE RESILIENCE.
In addition to amounts otherwise available, there is appropriated
to the Bureau of Land Management for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $110,000,000, to remain
available until September 30, 2031, except that no amounts may be
expended after September 30, 2031, for the protection, restoration, and
resiliency of public lands and resources in accordance with the
purposes outlined in section 102(a)(8) of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1701(a)(8). None of the funds
provided by this section shall be subject to cost-sharing requirements.
SEC. 70210. HISTORIC PRESERVATION.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Director of the National Park Service for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$75,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, to carry out
preservation or historic preservation as defined by section 300315 of
title 54, United States Code.
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70211. THOMPSON DIVIDE.
(a) Thompson Divide Withdrawal.--
(1) Thompson divide withdrawal and protection area
defined.--For the purposes of this subsection, the term
``Thompson Divide Withdrawal and Protection area'' means the
Federal land and minerals generally depicted as the ``Thompson
Divide Withdrawal and Protection Area'' on the map entitled
``Greater Thompson Divide Area Map'' and dated June 13, 2019.
(2) Withdrawal.--Subject to valid rights in existence on
the date of the enactment of this section, the Thompson Divide
Withdrawal and Protection Area is withdrawn from--
(A) entry, appropriation, and disposal under the
public land laws;
(B) location, entry, and patent under the mining
laws; and
(C) operation of the mineral leasing, mineral
materials, and geothermal leasing laws.
(b) Thompson Divide Lease Payments.--
(1) Thompson divide withdrawal and protection area
defined.--With regard to this subsection, the term ``Thompson
Divide Withdrawal and Protection Area'' means the Federal land
and minerals generally depicted as the ``Thompson Divide
Withdrawal and Protection Area'' on the map entitled ``Greater
Thompson Divide Area Map'' and dated June 13, 2019.
(2) In general.--In addition to amounts otherwise
available, there is appropriated to the Bureau of Land
Management for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $500,000 to remain
available until September 30, 2026, to acquire, from willing
sellers, the rights to oil or gas leases within the Thompson
Divide Withdrawal and Protection Area, provided such leases are
in effect on the date of enactment of this subsection. All
rights acquired under this subsection shall be permanently
cancelled and unavailable for reissue.
(3) Administrative expenses.--Of the funds provided by this
subsection, no more than 2 percent shall be used for
administrative costs to carry out this subsection.
(c) Fugitive Coal Mine Methane Use Pilot Program.--
(1) Pilot program area defined.--For the purposes of this
subsection, the term ``pilot program area'' means the areas
identified as ``Coal Mine Methane Capture Areas'' on the map
entitled ``Greater Thompson Divide Fugitive Coal Mine Methane
Use Pilot Program Area'' and dated June 17, 2019.
(2) In general.--In addition to amounts otherwise
available, there is appropriated to the Bureau of Land
Management for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $1,000,000 to remain
available until September 30, 2026, for carrying out a pilot
program in the pilot program area to inventory and, subject to
valid existing rights, to lease, capture, mitigate or sequester
methane emissions that would leak or be vented into the
atmosphere from an active, inactive, or abandoned underground
coal mine.
SEC. 70212. CHACO CANYON.
(a) Definitions.--For the purposes of this section:
(1) Chaco cultural heritage withdrawal area.--The term
``Chaco Cultural Heritage Withdrawal Area'' means the Federal
land generally depicted as the ``Chaco Cultural Heritage
Withdrawal Area'' on the map entitled ``Chaco Cultural Heritage
Withdrawal Area'' and dated April 2, 2019.
(2) Non-producing leases.--The term ``non-producing
leases'' means any oil and gas lease on Federal land within the
Chaco Cultural Heritage Withdrawal Area--
(A) on which drilling operations have not been
commenced before the end of the primary term of the
applicable lease;
(B) that is not producing oil and gas in paying
quantities; and,
(C) that is not subject to a valid cooperative or
unit plan of development.
(b) Withdrawal.--Subject to valid rights in existence on the date
of enactment of this section, the Chaco Cultural Heritage Withdrawal
Area is withdrawn from--
(1) entry and disposal under the public land laws;
(2) location, entry, and patent under the mining laws; and
(3) operation of the mineral leasing, mineral materials,
and geothermal leasing laws.
(c) Non-producing Leases.--A non-producing lease shall terminate
pursuant to section 17(e) of the Mineral Leasing Act (30 U.S.C. 226(e))
and subpart 3108 of title 43, Code of Federal Regulations, and may not
be extended.
Subtitle C--Drought Response and Preparedness
SEC. 70301. BUREAU OF RECLAMATION WATER SETTLEMENT FUNDING.
Section 10501 of the Omnibus Public Land Management Act of 2009 (43
U.S.C. 407) is amended as follows:
(1) In subsection (b), by adding at the end the following:
``(3) Additional deposits.--In addition to amounts
otherwise available, there is appropriated--
``(A) for fiscal year 2032 and each fiscal year
thereafter out of any money in the Treasury not
otherwise appropriated, $370,000,000, for deposit in
the Fund, to remain available until expended; and
``(B) for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $2,000,000,000,
for deposit in the Fund, to remain available until
September 30, 2031, except that no amounts may be
expended after September 30, 2031.''.
(2) In subsection (c)(1)--
(A) in subparagraph (A), by striking ``for each of
fiscal years 2020 through 2034, the Secretary may
expend from the Fund an amount not to exceed
$120,000,000,'' and inserting ``for fiscal year 2022
and each fiscal year thereafter, the Secretary may
expend from the Fund an amount not to exceed
$370,000,000'';
(B) in subparagraph (B), by striking ``more than
$120,000,000, for any fiscal year if such amounts are
available in the Fund due to expenditures not reaching
$120,000,000'' and inserting ``more than $370,000,000
for any fiscal year if such amounts are available in
the Fund, for the fiscal year in which expenditures are
made pursuant to subparagraph (D) and paragraphs (2)
and (3)''; and
(C) by adding at the end the following:
``(C) The Secretary shall expend all amounts in the
Fund available from deposits made under subsection
(b)(1) and subsection (b)(3)(B) not later than the end
of fiscal year 2031.
``(D) If, in the judgment of the Secretary on an
annual basis, the Secretary is unlikely to expend the
amounts as required under subparagraph (C) because
expenditures cannot be made for activities authorized
under paragraph (2), the Secretary shall expend from
the Fund on an annual basis any projected unspent
amounts by not later than the end of fiscal year 2031
on grants to disadvantaged communities (identified
according to criteria adopted by the Secretary) or on
grants to Indian Tribes (as defined in section 4 of the
Indian Self-Determination and Education Assistance Act
(25 U.S.C. 5304)), in a manner as determined by the
Secretary, for up to 100 percent of the cost of the
planning, design, or construction of water projects the
primary purpose of which is to provide potable water
supplies to communities or households that do not have
reliable access to potable water in a State or
territory described in the first section of the Act of
June 17, 1902 (43 U.S.C. 391; 32 Stat. 388, chapter
1093).''.
(3) In subsection (c), by amending paragraph (2) to read as
follows:
``(2) Authority.--
``(A) Non-tribal settlement expenditures.--The
Secretary may expend money from the Fund to implement a
settlement agreement approved by Congress that
resolves, in whole or in part, litigation involving the
United States and a party that is not an Indian Tribe
(as defined in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
5304)), if the settlement agreement or implementing
legislation requires the Bureau of Reclamation to
provide financial assistance for, or plan, design, and
construct--
``(i) water supply infrastructure; or
``(ii) a project--
``(I) to rehabilitate a water
delivery system to conserve water; or
``(II) to restore habitat or
otherwise improve environmental
conditions associated with or affected
by, or located within the same river
basin as, a Federal reclamation project
that is in existence on March 30, 2009.
``(B) Tribal expenditures.--The Secretary may
expend money from the Fund to implement a settlement
agreement approved by Congress that resolves, in whole
or in part, claims concerning Indian water resources,
if the settlement agreement or implementing legislation
authorizes the Secretary to provide financial
assistance for, or plan, design, and construct--
``(i) water supply infrastructure; or
``(ii) a project--
``(I) to rehabilitate a water
delivery system to conserve water; or
``(II) to restore habitat or
otherwise improve environmental
conditions associated with or affected
by, or located within the same river
basin as, a Federal reclamation
project.''.
(5) In subsection (c)(3)(C), by striking ``for any
authorized use'' and inserting ``for any use authorized under
paragraph (2) or paragraph (1)(D)''.
(6) By striking subsection (f).
SEC. 70302. EMERGENCY DROUGHT RELIEF.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Bureau of Reclamation for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated,
$1,000,000,000, to remain available until September 30, 2026, except
that no amounts shall be expended after September 30, 2026, for near-
term drought relief actions carried out under--
(1) the Reclamation States Emergency Drought Relief Act of
1991 (Public Law 102-250);
(2) the Klamath Basin Water Supply Enhancement Act of 2000
(Public Law 106-498);
(3) section 201 of division D of Public Law 108-7; or
(4) section 1109 of division FF of Public Law 116-260.
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent may be used for administrative costs to
carry out this section.
SEC. 70303. EMERGENCY DROUGHT RELIEF FOR TRIBES.
In addition to amounts otherwise available, there is appropriated
to the Bureau of Reclamation for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $150,000,000, to remain
available until September 30, 2026, except that no amounts may be
expended after September 30, 2026, for near-term drought relief actions
to mitigate drought impacts for Indian Tribes (as defined in section 4
of the Indian Self-Determination and Education Assistance Act (25
U.S.C. 5304)) that are impacted by the operation of a Bureau of
Reclamation water project, including through direct financial
assistance to address drinking water shortages and to mitigate for the
loss of Tribal trust resources.
SEC. 70304. SALTON SEA PROJECTS.
(a) Appropriation.--
(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Bureau of Reclamation
for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $250,000,000, to remain available until
September 30, 2031, except that no amounts may be expended
after September 30, 2031, to provide grants and enter into
contracts and cooperative agreements to carry out projects
located in the area of the Salton Sea in Southern California to
improve air quality, habitat, and water quality, in partnership
with--
(A) State, Tribal, and local governments;
(B) water districts;
(C) joint powers authorities;
(D) nonprofit organizations; and
(E) institutions of higher education.
(2) Cost share.--The non-Federal share of the cost of a
project under this subsection shall be 50 percent of the cost
of the project.
(b) Included Activities.--The projects described in subsection (a)
may include--
(1) construction, operation, maintenance, permitting, and
design activities required for such projects; and
(2) dust suppression projects.
(c) Funding Eligibility.--To be eligible to receive funding, non-
Tribal grantees must demonstrate compliance with prevailing wage
requirements.
(d) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70305. WATER RESOURCES RESEARCH AND TECHNOLOGY INSTITUTES.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the United States Geological Survey for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$75,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for carrying out
section 104 of the Water Resources Research Act of 1984 (42 U.S.C.
10303).
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70306. FEDERAL PRIORITY STREAMGAGES.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the United States Geological Survey for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$150,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for making
operational streamgages that are identified by the Secretary of the
Interior as Federal priority streamgages.
(b) Collaboration With Non-federal Partners.--The United States
Geological Survey shall prioritize the expenditure of funds available
under subsection (a) in a manner that seeks to leverage the use of non-
Federal funds made available through streamgage funding agreements with
States and local agencies to improve environmental quality and water
supply reliability.
(c) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70307. SNOW WATER SUPPLY FORECASTING.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Bureau of Reclamation for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated, $50,000,000,
to remain available until September 30, 2031, except that no amounts
may be expended after September 30, 2031, for carrying out section 1111
of division FF of the Consolidated Appropriations Act, 2021 (Public Law
116-260).
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70308. WATER TECHNOLOGY INVESTMENT.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Bureau of Reclamation for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated, $50,000,000,
to remain available until September 30, 2031, except that no amounts
may be expended after September 30, 2031, for carrying out section 1112
of division FF of the Consolidated Appropriations Act, 2021 (Public Law
116-260).
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70309. AQUATIC ECOSYSTEM RESTORATION.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Bureau of Reclamation for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated, $250,000,000,
to remain available until September 30, 2031, except that no amounts
may be expended before fiscal year 2027 or after September 30, 2031,
for carrying out section 1109 of division FF of the Consolidated
Appropriations Act, 2021 (Public Law 116-260).
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70310. LARGE SCALE WATER REUSE.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State, Indian Tribe, municipality, irrigation
district, water district, wastewater district, or other
organization with water or power delivery authority;
(B) a State, regional, or local authority, the
members of which include 1 or more organizations with
water or power delivery authority; or
(C) an agency established under State law for the
joint exercise of powers or a combination of entities
described in subparagraphs (A) through (B).
(2) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 5304).
(3) Reclamation state.--The term ``Reclamation State''
means a State or territory described in the first section of
the Act of June 17, 1902 (32 Stat. 388, chapter 1093; 43 U.S.C.
391).
(b) In General.--In addition to amounts otherwise available, there
is appropriated to the Bureau of Reclamation for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated, $100,000,000,
to remain available until September 30, 2031, except that no amounts
may be expended before fiscal year 2027 or after September 30, 2031, to
provide nonreimbursable grants on a competitive basis to eligible
entities that shall not exceed 25 percent of the total cost of an
eligible project unless the project advances at least a proportionate
share of nonreimbursable benefits authorized under the reclamation laws
(including fish and wildlife benefits provided through measurable
reductions in water diversions from imperiled ecosystems) up to a
maximum 75 percent of the total costs of an eligible project, to carry
out the planning, design, and construction of projects to reclaim and
reuse municipal, industrial, domestic, or agricultural wastewater or
impaired ground or surface waters that have a total estimated cost of
more than $500,000,000 and that provide substantial water supply and
other benefits to drought stricken regions within the Reclamation
States for the purposes of--
(1) helping to advance water management plans across a
multi-state area, such as drought contingency plans in the
Colorado River Basin;
(2) providing multiple benefits, including water supply
reliability benefits for drought-stricken States, Tribes, and
communities, fish and wildlife benefits, and water quality
improvements; and
(3) reducing impacts on environmental resources from water
projects owned or operated by Federal and State agencies,
including through measurable reductions in water diversions
from imperiled ecosystems.
(c) Total Dollar Cap.--The Bureau of Reclamation shall not impose a
total dollar cap on Federal contributions that applies to all
individual projects funded under this section.
(d) Funding Eligibility.--An eligible project shall not be
considered ineligible for assistance under this section because the
project has received assistance authorized under title XVI of Public
Law 102-575 or section 4009 of Public Law 114-322.
(e) Treatment of Conveyance.--The Bureau of Reclamation shall
consider the planning, design, and construction of an eligible
project's conveyance system to be eligible for grant funding under this
section.
SEC. 70311. CONVEYANCE REPAIRS AND BUILD BACK BETTER FUNDS FOR SOLAR
CANAL INTEGRATION.
(a) Conveyance Repairs.--In addition to amounts otherwise
available, there is appropriated to the Bureau of Reclamation for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
to provide nonreimbursable grants in a manner as determined by the
Secretary of the Interior (in this section referred to as the
``Secretary'') on a competitive basis to eligible entities that in
aggregate shall not exceed 33 percent of the total cost of an eligible
project to carry out the planning, design, and construction of projects
to make major, non-recurring maintenance repairs to water conveyance
facilities that do not enlarge the carrying capacity of a conveyance
facility beyond the capacity as previously constructed for conveyance
facilities in need of emergency capacity restoration due to subsidence
and experiencing exceptional drought for the purposes of increasing
drought resiliency, primarily through groundwater recharge.
(b) Build Back Better Funds for Solar Canal Integration.--In
addition to amounts otherwise available, there is appropriated to the
Bureau of Reclamation for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $100,000,000, to remain available
until September 30, 2031, except that no amounts may be expended after
September 30, 2031, for the design, study, and implementation of
projects (including pilot and demonstration projects) to cover
conveyance facilities receiving grants under subparagraph (a) with
solar panels to generate renewable energy in a manner as determined by
the Secretary or for other solar projects associated with Bureau of
Reclamation projects that increase water efficiency and assist in
implementation of clean energy goals.
SEC. 70312. RIO GRANDE PUEBLOS IRRIGATION INFRASTRUCTURE GRANTS.
In addition to amounts otherwise available, there is appropriated
to the Bureau of Reclamation for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $200,000,000, to remain
available until September 30, 2031, except that no amounts may be
expended after September 30, 2031, for carrying out section 9106(d) of
the Omnibus Public Land Management Act of 2009 (Public Law 111-11).
Subtitle D--Efficient and Effective NEPA Implementation
SEC. 70401. EFFICIENT AND EFFECTIVE NEPA IMPLEMENTATION.
In addition to amounts otherwise available, there is appropriated
to the Department of the Interior for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $150,000,000, to
remain available until September 30, 2031, except that no amounts may
be expended after September 30, 2031, to provide for more efficient and
more effective environmental reviews under the National Environmental
Policy Act of 1969 through the hiring and training of additional
personnel, the development of programmatic assessments or templates,
the procurement of technical or scientific services, the development of
data or technology systems, stakeholder and community engagement, and
the purchase of new equipment.
Subtitle E--National Oceanic and Atmospheric Administration
SEC. 70501. COASTAL AND GREAT LAKES RESTORATION AND TECHNICAL
ASSISTANCE.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the National Oceanic and Atmospheric Administration
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $9,500,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
through direct expenditure, contracts, grants, and cooperative
agreements to provide funding and technical assistance for the purposes
of restoring a marine, estuarine, coastal, or Great Lake habitat; or
providing adaptation to climate change, including by protecting,
restoring, or establishing ecological features that protects coastal
communities from sea-level rise, coastal storms, or flooding; or
designing or implementing blue carbon projects. None of the funds
provided by this section shall be subject to cost share or matching
requirements.
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70502. PACIFIC COASTAL SALMON RECOVERY FUND.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the National Oceanic and Atmospheric Administration
for fiscal year 2022, out of funds in the Treasury not otherwise
appropriated $400,000,000, to remain available until 2026, for the
purposes of climate resilience, habitat protection, and other habitat
restoration projects to recover Pacific salmon. None of the funds
provided by this section shall be subject to cost-sharing or matching
requirements.
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70503. NOAA STOCK ASSESSMENTS.
(a) Stock Assessments.--In addition to amounts otherwise available,
there is appropriated to the National Oceanic and Atmospheric
Administration for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $200,000,000, to remain available until
September 30, 2031, except that no amount may be expended after
September 30, 2031, for carrying out section 401 of the Magnuson-
Stevens Fishery Conservation and Management Reauthorization Act of 2006
(16 U.S.C. 1881) and, section 117 of the Marine Mammal Protection Act
of 1972 (16 U.S.C. 1386) for fisheries data collections, surveys, and
science, management, and ecosystem-based assessments in support of
federally managed marine fisheries.
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70504. COASTAL HAZARDS AND SEA LEVEL RISE.
In addition to amounts otherwise available, there is appropriated
to the National Oceanic and Atmospheric Administration for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$500,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for carrying out
the provisions of section 12304 of the Integrated Coastal and Ocean
Observation System Act of 2009 (33 U.S.C. 3603), section 4 of the
Digital Coast Act (16 U.S.C. 1467), section 310 of the Coastal Zone
Management Act of 1972 (16 U.S.C. 1456c), section 303 of the
Hydrographic Services Improvement Act of 1988 (33 U.S.C. 892a), and the
first section and section 2 of the Act of August 6, 1947 (chapter 504;
33 U.S.C. 883a and 33 U.S.C. 883b), popularly known as the Coast and
Geodetic Survey Act of 1947; for the purposes of making upgrades to the
Integrated Ocean Observing System; making upgrades to the Shoreline
Mapping Program; developing products, services, and coordinated
decision-support frameworks with respect to coastal floods, sea level
rise, Great Lakes water level, and vertical land motion data and
conducting the research and development necessary to support such
products and services; producing and maintaining authoritative and
timely data, maps, charts, tidal and water level observations and
information services for communities to plan for present and future
coastal flood risks and to sustain the economic viability of ports and
marine transportation system; and providing technical assistance to
States, Insular areas, local governments, and end user at-risk
communities.
SEC. 70505. BLUE CARBON.
In addition to amounts otherwise available, there is appropriated
to the National Oceanic and Atmospheric Administration for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$95,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for carrying out
the provisions of section 117 of the Magnuson-Stevens Fishery
Conservation and Management Reauthorization Act of 2006 (16 U.S.C.
1891a); and section 309 of the National Marine Sanctuaries Act (16
U.S.C. 1440); for research and extension activities to characterize,
quantify, map, and study blue carbon ecosystems or protection and
restoration efforts in blue carbon ecosystems, which include marine and
coastal freshwater, brackish, and saltwater-fed ecosystems, such as
coastal wetland forest and other tidal or historically tidal wetlands
that have the capacity to sequester carbon from the atmosphere for a
period of not less than 100 years in the Gulf of Mexico region.
SEC. 70506. COASTAL HAZARDS IN UNITED STATES INSULAR AREAS.
In addition to amounts otherwise available, there is appropriated
to the National Oceanic and Atmospheric Administration for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$50,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for carrying out
the provisions of the Integrated Coastal and Ocean Observation System
Act of 2009 (33 U.S.C. 3601), section 4 of the Digital Coast Act (16
U.S.C. 1467, and section 303 of the Hydrographic Services Improvement
Act (33 U.S.C. 892a) to improve weather data collection and provide
science, data, information, and impact-based decision support services
to reduce tsunami, hurricane, typhoon, drought, tide, and sea-level
rise impacts in Insular Areas.
SEC. 70507. NMFS SHORESIDE FACILITIES.
In addition to amounts otherwise available, there is appropriated
to the National Oceanic and Atmospheric Administration for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$150,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for carrying out
the provisions of sections 404 through 408 of the Magnuson-Stevens
Fishery Conservation and Management Act (16 U.S.C. 1881c-1884), to
replace, renovate, or maintain aging facilities in need of repair or
replacement including piers, fisheries laboratories, and laboratory
facilities.
SEC. 70508. NOAA VESSEL RECAPITALIZATION.
In addition to amounts otherwise available, there is appropriated
to the National Oceanic and Atmospheric Administration for fiscal year
2022, out of any money in the treasury not otherwise appropriated,
$300,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for vessel
recapitalization needs.
SEC. 70509. CIVILIAN CLIMATE CORPS AT NOAA.
(a) NOAA Civilian Climate Corps.--In addition to amounts otherwise
available, there is appropriated to the National Oceanic and
Atmospheric Administration for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $120,000,000, to remain
available until September 30, 2026, to carry out education and job
training projects that conserve, restore, construct, or rehabilitate
natural, cultural, historic, archaeological, recreational, or scenic
resources through direct expenditure, contracts, grants, and
cooperative agreements. None of the funds provided by this section
shall be subject to cost-sharing or matching requirements.
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70510. NOAA HATCHERIES.
(a) NOAA Hatcheries.--In addition to amounts otherwise available,
there is appropriated to the National Oceanic and Atmospheric
Administration, for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $250,000,000, to remain available until
September 30, 2026, for grants to States and Indian Tribes (as defined
in section 4 of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 5304), to repair, replace, and upgrade hatchery
infrastructure for production of a marine fishery. None of the funds
provided by this section shall be subject to cost-sharing or matching
requirements.
(b) Funding Eligibility.--To be eligible to receive funding under
this section, non-Tribal grantees must demonstrate compliance with
prevailing wage requirements.
SEC. 70511. ELECTRONIC MONITORING.
(a) Electronic Monitoring.--In addition to amounts otherwise
available, there is appropriated to the National Oceanic and
Atmospheric Administration for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $75,000,000, to remain
available until September 30, 2031, except that no amounts may be
expended after September 30, 2031, for the purposes of supporting the
continued and timely implementation of electronic monitoring and
fishing effort reporting.
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70512. WORKING WATERFRONTS.
(a) Working Waterfronts.--In addition to amounts otherwise
available, there is appropriated to the National Oceanic and
Atmospheric Administration for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $160,000,000, to remain
available until September 30, 2031, except that no amounts may be
expended after September 30, 2031, for carrying out the provisions of
section 309 of the Coastal Zone Management Act (16 U.S.C. 1456b)
through direct expenditure, contracts, grants, and cooperative
agreements for projects that preserve and protect coastal access for
water-dependent commercial activities.
(b) Funding Eligibility.--To be eligible to receive funding under
this section, the grantee must demonstrate compliance with prevailing
wage requirements.
SEC. 70513. MARINE SANCTUARY AND NATIONAL ESTUARINE RESEARCH RESERVE
MAINTENANCE BACKLOG.
In addition to amounts otherwise available, there is appropriated
to the National Oceanic and Atmospheric Administration for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$98,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for carrying out
the provisions of the National Marine Sanctuary Act (16 U.S.C. 1431)
and the Coastal Zone Management Act (16 U.S.C. 1461) for construction,
maintenance, and renovation of facilities of National Marine
Sanctuaries and National Estuarine Research Reserves.
SEC. 70514. SEAFOOD IMPORT MONITORING PROGRAM EXPANSION.
In addition to amounts otherwise available, there is appropriated
to the National Oceanic and Atmospheric Administration for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$2,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for carrying out
the provisions of section 307 of the Magnuson-Stevens Fishery
Conservation and Management Reauthorization Act (16 U.S.C. 1857(1)(Q)),
to expand the Seafood Import Monitoring Program to apply to all seafood
and seafood products.
Subtitle F--United States Fish and Wildlife Service
SEC. 70601. ENDANGERED SPECIES ACT RECOVERY PLANS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the United States Fish and Wildlife Service for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $75,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for the development and implementation of recovery plans under section
4(f) of the Endangered Species Act of 1973 (16 U.S.C. 1533(f)).
(b) Candidate Conservation.--In addition to the amounts otherwise
available, there is appropriated to the United States Fish and Wildlife
Service for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $75,000,000, to remain available until
September 30, 2031, except that no amounts may be expended after
September 30, 2031, for developing Candidate Conservation Agreements
and Candidate Conservation Agreements with Assurances for candidate and
other at-risk species pursuant section 10 of the Endangered Species Act
(16 U.S.C. 1539).
SEC. 70602. ENDANGERED SPECIES ACT HABITAT CONSERVATION.
In addition to amounts otherwise available, there is appropriated
to the United States Fish and Wildlife Service for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$50,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for United States
Fish and Wildlife Service responsibilities in the development, review,
and permitting of Habitat Conservation Plans under section 10(a)(2) of
the Endangered Species Act of 1973 (16 U.S.C. 1539(a)(2)) and for State
programs under section 6(d) of the Endangered Species Act of 1973 (16
U.S.C. 1535(d)).
SEC. 70603. ENDANGERED SPECIES ACT INTERAGENCY CONSULTATIONS.
In addition to amounts otherwise available, there is appropriated
to the United States Fish and Wildlife Service for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$40,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for carrying out
consultations with Federal agencies that undertake agency actions
affecting endangered species and threatened species under section 7 of
the Endangered Species Act of 1973 (16 U.S.C. 1536).
SEC. 70604. FUNDING FOR ISLAND PLANT CONSERVATION.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the United States Fish and Wildlife Service for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $25,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for the conservation of endangered species and threatened species of
plants in the Hawaiian Islands and the Pacific Island Territories of
the United States as authorized by section 4 of the Endangered Species
Act of 1973 (16 U.S.C. 1533).
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70605. FUNDING FOR POLLINATOR CONSERVATION.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the United States Fish and Wildlife Service for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $25,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for the conservation of endangered species and threatened species of
pollinators in the United States as authorized by section 4 of the
Endangered Species Act of 1973 (16 U.S.C. 1533).
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70606. FUNDING FOR MUSSEL CONSERVATION.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the United States Fish and Wildlife Service for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $25,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for the conservation of endangered species and threatened species of
freshwater mussels in the United States as authorized by section 4 of
the Endangered Species Act of 1973 (16 U.S.C. 1533).
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70607. FUNDING FOR DESERT FISH CONSERVATION.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the United States Fish and Wildlife Service for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $25,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for the conservation of endangered species and threatened species of
desert fish in the Southwestern United States as authorized by section
4 of the Endangered Species Act of 1973 (16 U.S.C. 1533).
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70608. FUNDING FOR THE UNITED STATES FISH AND WILDLIFE SERVICE TO
ADDRESS CLIMATE-INDUCED WEATHER EVENTS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the United States Fish and Wildlife Service for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for the purposes of carrying out the Fish and Wildlife Act of 1956 (16
U.S.C. 742a) and the Fish and Wildlife Coordination Act (16 U.S.C.
661), through direct expenditure, contracts, grants, and cooperative
agreements, for the purposes of rebuilding and restoring units of the
National Wildlife Refuge System, other Federal public assets, and State
wildlife management areas including by addressing the threat of
invasive species, increasing the resiliency and capacity of habitats
and infrastructure to withstand weather events, or reducing the amount
of damage caused by those events. None of the funds provided by this
section shall be subject to cost-share requirements.
(b) Administrative Expenses.--Of the funds provided by this
section, no more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70609. FUNDING FOR THE UNITED STATES FISH AND WILDLIFE SERVICE FOR
WILDLIFE CORRIDOR CONSERVATION.
In addition to amounts otherwise available, there is appropriated
to the United States Fish and Wildlife Service for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$10,000,000, to remain available until September 30, 2026, except that
no amounts may be expended after September 30, 2026, to carry out the
provisions of the Fish and Wildlife Act of 1956 (16 U.S.C. 742a) and
the Fish and Wildlife Coordination Act (16 U.S.C. 661) through direct
expenditure,, contracts, grants, and cooperative agreements, for
mapping wildlife corridors and providing assistance to States and
Indian Tribes as defined in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 5304) for the conservation and
restoration of wildlife corridors.
SEC. 70610. FUNDING FOR THE UNITED STATES FISH AND WILDLIFE SERVICE FOR
GRASSLAND RESTORATION.
In addition to amounts otherwise available, there is appropriated
to the United States Fish and Wildlife Service for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available until September 30, 2026, except that
no amounts may be expended after September 30, 2026, to carry out the
provisions of the Fish and Wildlife Act of 1956 (16 U.S.C. 742a) and
the Fish and Wildlife Coordination Act (16 U.S.C. 661) through direct
expenditure, contracts, grants, and cooperative agreements, for the
protection and restoration of grassland habitats.
Subtitle G--Insular Affairs
SEC. 70701. INSULAR AFFAIRS HOSPITAL AND OTHER CRITICAL HEALTH
INFRASTRUCTURE FUNDING.
In addition to amounts otherwise available, there is appropriated
to the Department of the Interior Office of Insular Affairs for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$993,000,000, to remain available until September 30, 2031, except that
no amounts may be expended after September 30, 2031, for hospitals and
other critical health infrastructure in the territories. Amounts made
available under this section shall be divided among the territories in
accordance with needs identified by assessments completed by the
Department of the Interior, Office of Insular Affairs, of health care
facilities in each territory, but not less than 35 percent shall be
provided to Guam, not less than 35 percent shall be provided to the
United States Virgin Islands, not less than 20 percent shall be
provided to the Commonwealth of the Northern Mariana Islands, and not
less than 10 percent shall be provided to American Samoa.
SEC. 70702. OFFICE OF INSULAR AFFAIRS CLIMATE CHANGE TECHNICAL
ASSISTANCE.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Department of the Interior Office of Insular
Affairs for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $25,000,000, to remain available until
September 30, 2026, to provide technical assistance for climate-change
planning, mitigation, adaptation, and resilience to United States-
affiliated Insular Areas under the Office of Insular Affairs.
(b) Administrative Expenses.--Of the funds provided by this
section, not more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70703. SETTLEMENT OF CLAIMS AGAINST THE UNITED STATES FOR CERTAIN
RESIDENTS OF THE ISLAND OF VIEQUES, PUERTO RICO.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Department of the Interior Office of Insular
Affairs, for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $300,000,000, to remain available until
September 30, 2031, except that no amounts may be made available after
September 30, 2031, to compensate through the appointment of a Special
Master, the municipality of Vieques, and an individual claimant who is
or was a resident, the child of a resident, or an immediate heir (as
determined by the laws of Puerto Rico) of a deceased claimant who was a
resident on the island of Vieques, Puerto Rico, in the period or after
the United States Government used the island of Vieques, Puerto Rico,
for military readiness.
(b) Administrative Expenses.--Of the funds provided by this
section, not more than 2 percent shall be used for administrative costs
to carry out this section.
SEC. 70704. DEFINITIONS.
For the purposes of this subtitle:
(1) Freely associated states.--The term ``Freely Associated
States'' means the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau.
(2) United states-affiliated insular areas.--The term
``United States-affiliated Insular Areas'' means the
territories and Freely Associated States.
(3) Territories.--The term ``territories'' means American
Samoa, the Commonwealth of the Northern Mariana Islands, Guam,
Puerto Rico, and the Virgin Islands of the United States.
(4) Territory.--The term ``territory'' means American
Samoa, the Commonwealth of the Northern Mariana Islands, Guam,
Puerto Rico, or the Virgin Islands of the United States.
Subtitle H--Energy and Mineral Resources
SEC. 70801. OFFSHORE WIND FOR THE TERRITORIES.
(a) Application of Outer Continental Shelf Lands Act With Respect
to Territories of the United States.--
(1) In general.--Section 2 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1331) is amended--
(A) in subsection (a)--
(i) by striking ``The term'' and inserting
the following:
``(1) The term''
(ii) by inserting after ``control'' the
following: ``or lying within the exclusive
economic zone of the United States and the
outer Continental Shelf adjacent to any
territory of the United States''; and
(iii) by adding at the end the following:
``(2) The term `outer Continental Shelf' does not include
any area conveyed by Congress to a territorial government for
administration.'';
(B) in subsection (p), by striking ``and'' after
the semicolon at the end;
(C) in subsection (q), by striking the period at
the end and inserting ``; and''; and
(D) by adding at the end the following:
``(r) The term `State' means any of the several States and also
includes Puerto Rico, Guam, American Samoa, the Virgin Islands of the
United States, and the Commonwealth of the Northern Mariana Islands.''.
(2) Exclusions.--Section 18 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1344) is amended by adding at the end the
following:
``(i) This section shall not apply to the scheduling of any lease
sale in an area of the outer Continental Shelf that is adjacent to
Puerto Rico, Guam, American Samoa, the Virgin Islands of the United
States, or the Commonwealth of the Northern Mariana Islands.''.
(b) Wind Lease Sales for Areas of the Outer Continental Shelf.--The
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is amended
by adding at the end the following:
``SEC. 33. WIND LEASE SALES FOR AREAS OF THE OUTER CONTINENTAL SHELF
OFFSHORE OF TERRITORIES OF THE UNITED STATES.
``(a) Wind Lease Sales Off Coasts of Territories of the United
States.--
``(1) Call for information and nominations.--The Secretary
shall issue a call for information and nominations for proposed
wind lease sales for areas determined to be feasible.
``(2) Conditional wind lease sales.--For areas lying within
the exclusive economic zone of the United States adjacent to
Puerto Rico, Guam, American Samoa, the Virgin Islands of the
United States, and the Commonwealth of the Northern Mariana
Islands, the Secretary shall conduct not less than one wind
lease sale in each such area, so long as:
``(A) The Secretary has concluded that a wind lease
sale on the area is feasible.
``(B) The Secretary has determined that there is
sufficient interest in leasing the area.
``(C) The Secretary has consulted with other
relevant Federal agencies regarding such sale.
``(D) The Secretary has consulted with the Governor
of the territory regarding the suitability of the area
for wind energy development.''.
SEC. 70802. LEASING ON THE OUTER CONTINENTAL SHELF.
(a) Leasing Authorized.--The Secretary of the Interior is
authorized to grant leases, easements, and rights-of-way pursuant to
section 8(p)(1)(C) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(p)(1)(C)) in the areas withdrawn by the Presidential Memorandum
entitled ``Memorandum on the Withdrawal of Certain Areas of the United
States Outer Continental Shelf from Leasing Disposition'' (issued
September 8, 2020) and the Presidential Memorandum entitled
``Presidential Determination on the Withdrawal of Certain Areas of the
United States Outer Continental Shelf from Leasing Disposition''
(issued September 25, 2020).
(b) Withdrawals.--Any Presidential withdrawal of an area of the
Outer Continental Shelf from leasing under section 12(a) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1341(a)) issued after the date
of enactment of this Act shall apply only to leasing authorized under
subsections (a) and (i) of section 8 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337(a) and 1337(i)), unless otherwise specified.
SEC. 70803. UNITED STATES GEOLOGICAL SURVEY.
(a) 3D Elevation Program.--In addition to amounts otherwise
available, there is appropriated to the United States Geological Survey
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $50,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
to carry out the 3D elevation program (43 U.S.C. 3104).
(b) Climate Adaptation Science Centers.--In addition to amounts
otherwise available, there is appropriated to the United States
Geological Survey for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $100,000,000, to remain available
until September 30, 2031, except that no amounts may be expended after
September 30, 2031, for the Regional and National Climate Adaptation
Science Centers to provide localized information to help communities
respond to climate change.
SEC. 70804. FOSSIL FUEL RESOURCES.
(a) Repeal of the Arctic National Wildlife Refuge Oil and Gas
Program.--Section 20001 of Public Law 115-97 is repealed and any leases
issued pursuant to section 20001 of Public Law 115-97 are hereby
cancelled and all payments related to the leases shall be returned to
the lessee(s) within 30 days of enactment of this Act.
(b) Protection of the Eastern Gulf, Atlantic, and Pacific Coasts.--
Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) is
amended by adding at the end the following:
``(q) Prohibition of Oil and Gas Leasing in Certain Areas of the
Outer Continental Shelf.--The Secretary of the Interior may not issue a
lease or any other authorization for the exploration, development, or
production of oil or natural gas in the areas of the Outer Continental
Shelf designated by section 104(a) of the Gulf of Mexico Energy
Security Act of 2006 or in any area within the Atlantic Region planning
areas or the Pacific Region planning areas (as such planning areas are
described in the document entitled `2017 - 2022 Outer Continental Shelf
Oil and Gas Leasing Proposed Final Program' dated November 2016, or a
subsequent oil and gas leasing program developed under section 18 of
the Outer Continental Shelf Lands Act (43 U.S.C. 1344).''.
(c) Onshore Fossil Fuel Royalty Rates.--The Mineral Leasing Act (30
U.S.C. 207) is amended--
(1) in section 7(a), by striking ``12\1/2\'' and inserting
``20'';
(2) in section 17, by--
(A) striking ``12.5'' each place such term appears
and inserting ``20''; and
(B) striking ``12 \1/2\'' each place such term
appears and inserting ``20''; and
(3) in section 31(e), by striking ``16 \2/3\'' both places
such term appears and inserting ``25''.
(d) Offshore Oil and Gas Royalty Rate.--Section 8 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337) is amended by striking--
(1) ``12 \1/2\'' each place such term appears and inserting
``20''; and
(2) ``12 and \1/2\'' each place such term appears and
inserting ``20''.
(e) Oil and Gas Minimum Bid.--Section 17 of the Mineral Leasing Act
(30 U.S.C. 226) is amended--
(1) in subsection (b)(1)(B)--
(A) by striking ``$2 per acre'' and inserting ``$10
per acre, except as otherwise provided by this
paragraph''; and
(B) by striking ``Federal Onshore Oil and Gas
Leasing Reform Act of 1987'' and inserting ``subtitle H
of the Act to provide for reconciliation pursuant to
title II of S. Con. Res. 14 of the 117th Congress'';
(2) in subsection (b)(2)(C), by striking ``$2 per acre''
and inserting ``$10 per acre''; and
(3) by adding at the end the following:
``(q) Inflation Adjustment.--The Secretary shall--
``(1) by regulation, at least once every 4 years, adjust
each of the dollar amounts that apply under subsections
(b)(1)(B), (b)(2)(C), and (d) to reflect the change in
inflation; and
``(2) publish each such regulation in the Federal
Register.''.
(f) Deferred Coal Bonus Payments.--Section 2(a) of the Mineral
Leasing Act (30 U.S.C. 201(a)) is amended--
(1) in paragraph (1), by striking the second and third
sentences; and
(2) by striking paragraphs (4) and (5).
(g) Fossil Fuel Rental Rates.--
(1) Section 7(a) of the Mineral Leasing Act (30 U.S.C. 207)
is amended in the third sentence by inserting ``at a rental
rate of not less than $100 per acre (as reviewed and, if
appropriate, adjusted by the Secretary every 4 years)'' before
the period.
(2) Section 17(d) of the Mineral Leasing Act (30 U.S.C.
226(d)) is amended in the first sentence by striking ``$1.50
per acre per year for the first through fifth years of the
lease and not less than $2 per acre per year for each year
thereafter'' and inserting ``$3 per acre per year during the 2-
year period beginning on the date the lease begins for new
leases, and after the end of such two-year period not less than
$5 per acre per year''.
(3) Section 31(e) of the Mineral Leasing Act (30 U.S.C.
188(e)) is amended by striking ``$10'' and inserting ``$20''.
(h) Fossil Fuel Lease Term Length.--
(1) Section 7 of the Mineral Leasing Act (30 U.S.C. 207) is
amended--
(A) in subsection (a)--
(i) in the first sentence, by striking
``twenty'' and inserting ``10'';
(ii) in the second sentence, by striking
``ten'' and inserting ``5''; and
(iii) in the sixth sentence--
(I) by striking ``twenty'' and
inserting ``10''; and
(II) by striking ``ten'' and
inserting ``5''; and
(B) in subsection (b)(5), by striking ``20'' and
inserting ``10''.
(2) Section 17(e) of the Mineral Leasing Act (30 U.S.C.
226(e)) is amended by striking ``10 years:'' and inserting ``5
years.''.
(i) Expression of Interest Fee.--Section 17 of the Mineral Leasing
Act (30 U.S.C. 226), as amended by this subtitle is amended by adding
at the end the following:
``(r) Fee for Expression of Interest.--
``(1) In general.--The Secretary shall charge any person
who submits, in accordance with procedures established by the
Secretary to carry out this subsection, an expression of
interest in leasing land available for disposition under this
section for exploration for, and development of, oil or gas a
fee in an amount determined by the Secretary under paragraph
(2).
``(2) Amount.--The fee authorized under paragraph (1) shall
be established by the Secretary in an amount that is determined
by the Secretary to be appropriate to cover the aggregate cost
of processing an expression of interest under this subsection,
but not less than $15 per acre of the area covered by the
applicable expression of interest.
``(3) Adjustment of fee.--The Secretary shall, by
regulation at least every 4 years, establish a higher
expression of interest fee--
``(A) to reflect the change in inflation; and
``(B) as the Secretary determines to be necessary
to enhance financial returns to the United States.''.
(j) Elimination of Noncompetitive Leasing.--The Mineral Leasing Act
is amended--
(1) in section 17(b) (30 U.S.C. 226(b)), by striking
paragraph (3);
(2) by amending section 17(c) (30 U.S.C. 226(c)) to read as
follows:
``(c) Lands made available for leasing under subsection (b)(1) but
for which no bid is accepted may be made available by the Secretary for
a new round of sealed bidding under such subsection.'';
(3) in section 17(e) (30 U.S.C. 226(e))--
(A) by striking ``Competitive and noncompetitive
leases'' and inserting ``Leases, including leases for
tar sand areas,''; and
(B) by striking ``Provided, however'' and all that
follows through ``ten years.'';
(4) in section 31(d)(1) (30 U.S.C. 188(d)(1)) by striking
``or (c)'';
(5) in section 31(e) (30 U.S.C. 188(e))--
(A) in paragraph (2) by striking ``, or the
inclusion'' and all that follows and inserting a
semicolon; and
(B) in paragraph (3) by striking ``(A)'' and by
striking subparagraph (B);
(6) by striking section 31(f) (30 U.S.C. 188(f)); and
(7) in section 31(g) (30 U.S.C. 188(g))--
(A) in paragraph (1) by striking ``as a
competitive'' and all that follows through the period
and inserting ``in the same manner as the original
lease issued pursuant to section 17.'';
(B) by striking paragraph (2) and redesignating
paragraphs (3) and (4) as paragraphs (2) and (3),
respectively; and
(C) in paragraph (2), as redesignated, by striking
``, applicable to leases issued under subsection 17(c)
of this Act (30 U.S.C. 226(c)) except,'' and inserting
``, except''.
(k) Oil and Gas Bonding Requirements.--Section 17(g) of the Mineral
Leasing Act (30 U.S.C. 226(g)) is amended--
(1) by inserting ``Each such bond, surety, or other
financial arrangement shall be considered inadequate if such
bond, surety, or other financial arrangement is for less than
$150,000 in the case of an arrangement for an individual
surface-disturbing activity of each entity on an individual oil
or gas lease in a State, or $500,000 in the case of an
arrangement for all surface-disturbing activities of each
entity on all oil and gas leases in a State.'' after ``on the
lease.'';
(2) by redesignating existing subsection (g) as paragraph
(1); and
(3) by adding at the end the following new paragraph:
``(2)(A) Not later than 180 days after the date of
enactment of subtitle H of the Act to provide for
reconciliation pursuant to title II of S. Con. Res. 14 of the
117th Congress the Secretary concerned shall initiate a
rulemaking to require that an adequate bond, surety, or other
financial arrangement be provided by the lessee prior to the
commencement of surface-disturbing activities on any lease
issued under this Act to ensure the complete and timely
remediation and reclamation of any land, water, or other
resources (including resources with recreation, range, timber,
mineral, watershed, fish or wildlife, natural scenic,
scientific, or historical value) adversely affected by lease
activities and operations after the abandonment or cessation of
oil and gas operations on the lease.
``(B) The Secretary concerned shall find that a bond,
surety or other financial arrangement required by regulation
under subparagraph (A) is inadequate if it is for less than--
``(i) the complete and timely reclamation of the
lease tract;
``(ii) the restoration of any lands or surface
waters adversely affected by lease operations after the
abandonment or cessation of oil and gas operations on
the lease; and
``(iii) in the case of an idled well, the total
plugging and reclamation costs for each idled well
controlled by the same operator.
``(C) The Secretary concerned shall review the adequacy of
each such bond, surety, or other financial arrangement at least
once every 5 years and anytime a lease issued under this Act is
transferred.''.
(l) Per-acre Lease Fees.--
(1) Oil and gas lease fees.--The Secretary of Interior
shall charge onshore and offshore oil and gas leaseholders the
following annual, non-refundable fees:
(A) Conservation of resources fee.--There is
established a Conservation of Resources Fee of $4 per
acre per year on new producing Federal onshore and
offshore oil and gas leases.
(B) Speculative leasing fee.--There is established
a Speculative Leasing Fee of $6 per acre per year on
new nonproducing Federal onshore and offshore oil and
gas leases.
(2) Deposit.--All funds collected pursuant to paragraph (1)
shall be deposited into the United States Treasury General
Fund.
(3) Adjustment for inflation.--The Secretary of the
Interior shall, by regulation at least once every four years,
adjust each fee created by paragraph (1) to reflect any
increase in inflation.
(m) Onshore Oil and Gas Inspection Fees.--
(1) In general.--Section 108 of the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1718) is amended by
adding at the end the following:
``(d) Inspection Fees.--
``(1) In general.--The designated operator under each oil
and gas lease on Federal or Indian lands, or each unit and
communitization agreement that includes one or more such
Federal or Indian leases, that is subject to inspection under
subsection (b) and that is in force at the start of the fiscal
year 2021, shall pay a nonrefundable annual inspection fee in
an amount that, except as provided in paragraph (2), is
established by the Secretary by regulation and is sufficient to
recover the full costs incurred by the United States for
inspection and enforcement with respect to such leases.
``(2) Amount.--Until the effective date of regulations
under paragraph (1), the amount of the fee shall be--
``(A) $800 for each lease or unit or
communitization agreement with no active or inactive
wells, but with surface use, disturbance or
reclamation;
``(B) $1,400 for each lease or unit or
communitization agreement with 1 to 10 wells, with any
combination of active or inactive wells;
``(C) $5,600 for each lease or unit or
communitization agreement with 11 to 50 wells, with any
combination of active or inactive wells; and
``(D) $11,300 for each lease or unit or
communitization agreement with more than 50 wells, with
any combination of active or inactive wells.
``(3) Due date.--Payment of the fee under this section
shall be due, annually, not later than 30 days after the
Secretary provides notice of the assessment of the fee.
``(4) Penalty.--If the designated operator fails to pay the
full amount of the fee as prescribed in this section, the
Secretary may, in addition to utilizing any other applicable
enforcement authority, assess civil penalties against the
operator under section 109 in the same manner as if this
section were a mineral leasing law.
``(5) Exemption for tribal operators.--An operator that is
a Tribe or is controlled by a Tribe is not subject to paragraph
(1) with respect to a lease, unit, or communitization agreement
that is located entirely on the lands of such Tribe.''.
(2) Assessment for fiscal year 2022.--The Secretary of the
Interior shall assess the fee under the amendment made by
paragraph (1) for fiscal year 2022, and provide notice of such
assessment to each designated operator who is liable for such
fee, by not later than 60 days after the date of enactment of
this Act.
(n) Offshore Oil and Gas Inspection Fees.--Section 22 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1348) is amended by adding at
the end the following:
``(g) Inspection Fees.--
``(1) In general.--
``(A) Establishment.--The Secretary shall collect
from the operators of facilities subject to inspection
under subsection (c) nonrefundable fees for such
inspections--
``(i) at an aggregate level to offset the
annual expenses of such inspections;
``(ii) using a schedule that reflect the
differences in complexity among the classes of
facilities to be inspected; and
``(iii) in accordance with subparagraph
(C).
``(B) Adjustment for inflation.--For each fiscal
year beginning after fiscal year 2022, the Secretary
shall adjust the amount of the fees collected under
this paragraph for inflation.
``(C) Fees for fiscal year 2022.--
``(i) Annual fees.--For fiscal year 2022,
the Secretary shall collect annual fees from
the operator of facilities that are above the
waterline, excluding drilling rigs, and are in
place at the start of the fiscal year in the
following amounts:
``(I) $11,725 for facilities with
no wells, but with processing equipment
or gathering lines.
``(II) $18,984 for facilities with
1 to 10 wells, with any combination of
active or inactive wells.
``(III) $35,176 for facilities with
more than 10 wells, with any
combination of active or inactive
wells.
``(ii) Fees for drilling rigs.--For fiscal
year 2022, the Secretary shall collect fees for
each inspection from the operators of drilling
rigs in the following amounts:
``(I) $34,059 per inspection for
rigs operating in water depths of 500
feet or more.
``(II) $18,649 per inspection for
rigs operating in water depths of less
than 500 feet.
``(iii) Fees for non-rig units.--For fiscal
year 2022, the Secretary shall collect fees for
each inspection from the operators of well
operations conducted via non-rig units as
outlined in subparts D, E, F, and Q of part 250
of title 30, Code of Federal Regulations (or
any successor regulation), in the following
amounts:
``(I) $13,260 per inspection for
non-rig units operating in water depths
of 2,500 feet or more.
``(II) $11,530 per inspection for
non-rig units operating in water depths
between 500 and 2,499 feet.
``(III) $4,470 per inspection for
non-rig units operating in water depths
of less than 500 feet.
``(2) Disposition.--Amounts collected as fees under
paragraph (1) shall be deposited into the general fund of the
Treasury.
``(3) Billing.--
``(A) Annual fees.--The Secretary shall bill
designated operators under paragraph (1)(C)(i)
annually, with payment required not later than 30 days
after such billing.
``(B) Fees for drilling rigs.--The Secretary shall
bill designated operators under paragraph (1)(C)(ii)
not later than 30 days after the end of the month in
which the inspection occurred, with payment required
not later than 30 days after such billing.
``(4) Publication.--The Secretary shall annually make
available to the public the following information about each
fee deposited into the Fund:
``(A) The facility that was inspected.
``(B) The name of the operator of such facility.
``(C) The amount of the payment.''.
(o) Severance Fees.--The Secretary of Interior shall collect
annual, non-refundable fees on fossil fuels produced from new leases on
Federal lands and the Outer Continental Shelf and deposit the funds
into the United States Treasury General Fund. Such fees shall be--
(1) not less than $0.50 per barrel of oil equivalent on oil
and natural gas produced from Federal lands and the Outer
Continental Shelf; and
(2) not less than $2 per metric ton of coal produced from
Federal lands.
(p) Idled Well Fees.--
(1) In general.--The Secretary shall, not later than 180
days after the date of enactment of this section, issue
regulations to require each operator of an idled well on
Federal land and the Outer Continental Shelf to pay an annual,
nonrefundable fee for each such idled well in accordance with
this subsection.
(2) Amounts.--Except as provided in paragraph (5), the
amount of the fee shall be as follows:
(A) $500 for each well that has been considered an
idled well for at least 1 year, but not more than 5
years.
(B) $1,500 for each well that has been considered
an idled well for at least 5 years, but not more than
10 years.
(C) $3,500 for each well that has been considered
an idled well for at least 10 years, but not more than
15 years.
(D) $7,500 for each well that has been considered
an idled well for at least 15 years.
(3) Due date.--An owner of an idled well that is required
to pay a fee under this subsection shall submit to the
Secretary such fee by not later than October 1 of each year.
(4) Civil penalty.--If the operator of a idled well fails
to pay the full amount of a fee under this subsection, the
Secretary may assess a civil penalty against the operator under
section 109 of the Federal Oil and Gas Royalty Management Act
of 1982 (30 U.S.C. 1719) as if such failure to pay were a
violation under such section.
(5) Adjustment for inflation.--The Secretary shall, by
regulation not less than once every 4 years, adjust each fee
under this subsection to account for inflation.
(6) Deposit.--All funds collected pursuant to paragraph (1)
shall be deposited into the United States Treasury General
Fund.
(7) Idled well definition.--For the purposes of this
section, the term ``idled well'' means a well that has been
non-operational for at least two consecutive years and for
which there is no anticipated beneficial future use.
(q) Annual Pipeline Owners Fee.--Not later than 180 days after the
date of enactment of this Act, the Bureau of Safety and Environmental
Enforcement shall issue regulations to assess an annual fee on owners
of offshore oil and gas pipelines. Such fee shall not qualify as a
transportation allowance or as a deductible cost in calculating
royalties due to the United States and shall be no less than--
(1) $10,000 per mile for such pipelines in water with a
depth of 500 feet or greater; and
(2) $1,000 per mile for pipelines in water depth of under
500 feet.
(r) Royalties on All Extracted Methane.--
(1) Assessment on all production.--
(A) In general.--Except as provided in subparagraph
(B), royalties paid for gas produced from Federal lands
and on the Outer Continental Shelf shall be assessed on
all gas produced, including--
(i) gas used or consumed within the area of
the lease tract for the benefit of the lease;
and
(ii) all gas that is consumed or lost by
venting, flaring, or fugitive releases through
any equipment during upstream operations.
(B) Exception.--Subparagraph (A) shall not apply
with respect to--
(i) gas vented or flared for not longer
than 48 hours in an acute emergency situation
that poses a danger to human health; and
(ii) gas used or consumed within the area
of the lease tract for the benefit of the lease
when the operator is a Tribe or is controlled
by a Tribe that is located entirely on the
lands of such Tribe.
(2) Conforming amendments.--
(A) Mineral leasing act.--The Mineral Leasing Act
is amended--
(i) in section 14 (30 U.S.C. 223), by
adding at the end the following: ``Royalties
shall be assessed with respect to oil and gas,
other than gas vented or flared for not longer
than 48 hours in an acute emergency situation
that poses a danger to human health and gas
used or gas consumed within the area of the
lease tract for the benefit of the lease when
the operator is a Tribe or is controlled by a
Tribe that is located entirely on the lands of
such Tribe, without regard to whether oil or
gas is removed or sold from the leased land.'';
(ii) in section 22 (30 U.S.C. 251), by
striking ``sold or removed''; and
(iii) in section 31 (30 U.S.C. 188), by
striking ``removed or sold'' each place it
appears.
(B) Outer continental shelf lands act.--The Outer
Continental Shelf Lands Act is amended--
(i) in section 6(a)(8) (43 U.S.C.
1335(a)(8)), by striking ``saved, removed, or
sold'' each place it appears; and
(ii) in section 8(a) (43 U.S.C. 1337(a))--
(I) in paragraph (1), by striking
``saved, removed, or sold'' each place
it appears; and
(II) by adding at the end the
following:
``(9) Royalties under this Act shall be assessed with
respect to oil and gas, other than gas vented or flared for not
longer than 48 hours in an acute emergency situation that poses
a danger to human health and gas used or gas consumed within
the area of the lease tract for the benefit of the lease when
the operator is a Tribe or is controlled by a Tribe that is
located entirely on the lands of such Tribe, without regard to
whether oil or gas is removed or sold from the leased land.''.
(s) Elimination of Royalty Relief.--
(1) In general.--
(A) Outer continental shelf lands act relating to
the suspension of royalties.--Section 8(a)(1)(H) of the
Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(1)(H)) is amended by striking ``, and with
suspension of royalties for a period, volume, or value
of production determined by the Secretary, which
suspensions may vary based on the price of production
from the lease''.
(B) Outer continental shelf lands act relating to
the suspension of royalties.--Section 8(a)(1)(H) of the
Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(1)(H)) is amended by striking ``, and with
suspension of royalties for a period, volume, or value
of production determined by the Secretary, which
suspensions may vary based on the price of production
from the lease''.
(C) Outer continental shelf lands act.--Section
8(a)(3) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(a)(3)) is amended--
(i) by striking subparagraphs (A) and (B);
and
(ii) by redesignating subparagraph (C) as
subparagraph (A).
(D) Energy policy act of 2005.--
(i) Incentives for natural gas production
from deep wells in the shallow waters of the
gulf of mexico.--Section 344 of the Energy
Policy Act of 2005 (42 U.S.C. 15904) is
repealed.
(ii) Deep water production.--Section 345 of
the Energy Policy Act of 2005 (42 U.S.C. 15905)
is repealed.
(2) Future provisions.--Royalty relief shall not be
permitted under a lease issued under section 8 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337).
(3) Provisions relating to naval petroleum reserve in
alaska.--Section 107 of the Naval Petroleum Reserves Production
Act of 1976 (42 U.S.C. 6506a) is amended--
(A) in subsection (i), by striking paragraphs (2)
through (6); and
(B) by striking subsection (k).
(4) Royalty relief under the mineral leasing act.--
(A) Repeal.--Section 39 of the Mineral Leasing Act
(30 U.S.C. 209) is repealed.
(B) Conforming amendments.--
(i) Section 8721(b) of title 10, United
States Code, is amended by striking ``202-209''
and inserting ``202-208''.
(ii) Section 8735(a) of title 10, United
States Code, is amended by striking ``202-209''
and inserting ``202-208''.
(iii) Section 31(h) of the Mineral Leasing
Act (30 U.S.C. 188(h)) is amended by striking
``and the provisions of section 39 of this
Act''.
SEC. 70805. CIVIL AND CRIMINAL PENALTIES.
(a) Mineral Leasing Act.--Section 41 of the Mineral Leasing Act (30
U.S.C. 195) is amended--
(1) in subsection (b), by striking ``$500,000'' and
inserting ``$1,000,000''; and
(2) in subsection (c), by striking ``$100,000'' and
inserting ``$250,000''.
(b) Federal Oil and Gas Royalty Management Act of 1982.--The
Federal Oil and Gas Royalty Management Act of 1982 is amended--
(1) in section 109 (30 U.S.C. 1719)--
(A) in subsection (a)(2), by striking ``$500'' and
inserting ``$1,500'';
(B) in subsection (b), by striking ``$5,000''and
inserting ``$15,000'';
(C) in subsection (c)(3), by striking ``$10,000''
and inserting ``$30,000'';
(D) in subsection (d)(3), by striking ``$25,000''
and inserting ``$75,000'';
(E) by redesignating existing subsections (e)
through (l) as (f) through (m), respectively; and
(F) by adding at the end:
``(n) Inflation Adjustment of Maximum Penalties.--
``(1) The maximum civil penalty amounts listed in
subsections (a) through (d) shall automatically adjust for
inflation on the 1st day of each calendar year in accordance
with the provisions of this subsection.
``(2) The inflation adjustment under this subsection shall
be based on the Consumer Price Index published by the
Department of Labor for all Urban Consumers (CPI-U) and shall
be calculated by the percentage change, if any, by which the
CPI-U for the month of October preceding the adjustment date
exceeds the CPI-U for the month of October one year before.
``(3) The Secretary will provide sufficient notice of
adjusted penalties by publishing the adjusted maximum civil
penalty amounts on a public website of the Department.
``(4) The Secretary will provide notice, in writing, to the
Committee on Natural Resources of the Department's intent to
adjust such penalties 180 days before publishing the adjusted
maximum civil penalty amounts on a public website of the
Department under paragraph (3).''; and
(2) in section 110, by striking ``$50,000'' and inserting
``$150,000''.
(c) Outer Continental Shelf Lands Act.--
(1) Civil penalty, generally.--Section 24(b) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1350(b)) is amended to
read as follows:
``(b) Civil Penalties.--
``(1) In general.--Except as provided in paragraph (2), any
person who fails to comply with any provision of this Act, or
any term of a lease, license, or permit issued pursuant to this
Act, or any regulation or order issued under this Act, shall be
liable for a civil administrative penalty of not more than
$75,000 for each day of the continuance of such failure. The
Secretary may assess, collect, and compromise any such penalty.
``(2) Opportunity for a hearing.--No penalty shall be
assessed until the person charged with a violation has been
given an opportunity for a hearing.
``(3) Adjustment for inflation.--The Secretary shall, by
regulation at least every 3 years, adjust the penalty specified
in this paragraph to reflect any increases in inflation.
``(4) Threat of harm.--If a failure described in paragraph
(1) constitutes or constituted a threat of harm or damage to
life, property, any mineral deposit, or the marine, coastal, or
human environment, a civil penalty of not more than $150,000
shall be assessed for each day of the continuance of the
failure.''.
(2) Knowing and willful violations.--Section 24(c) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1350(c)) is
amended by striking ``$100,000'' and inserting ``$1,000,000''.
(3) Officers and agents of corporations.--Section 24(d) of
the Outer Continental Shelf Lands Act (43 U.S.C. 1350(d)) is
amended by striking ``knowingly and willfully authorized,
ordered, or carried out'' and inserting ``authorized, ordered,
carried out, or through reckless disregard of the law caused''.
SEC. 70806. TECHNICAL AMENDMENTS TO FOGRMA.
(a) Amendments to Definitions.--Section 3 of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1702) is amended--
(1) in paragraph (20)(A), by striking ``: Provided, That''
and all that follows through ``subject of the judicial
proceeding'';
(2) in paragraph (20)(B), by striking ``(with written
notice to the lessee who designated the designee)'';
(3) in paragraph (23)(A), by striking ``(with written
notice to the lessee who designated the designee)'';
(4) by amending paragraph (24) to read as follows:
``(24) `designee' means a person who pays, offsets, or
credits monies, makes adjustments, requests and receives
refunds, or submits reports with respect to payments a lessee
must make pursuant to section 102(a);'';
(5) in paragraph (25), in subparagraph (B)--
(A) by striking ``(subject to the provisions of
section 102(a) of this Act)''; and
(B) in clause (ii), by striking subclause (IV) and
all that follows through the end of the subparagraph
and inserting the following:
``(IV) any assignment, that arises
from or relates to any lease, easement,
right-of-way, permit, or other
agreement regardless of form
administered by the Secretary for, or
any mineral leasing law related to, the
exploration, production, and
development of oil and gas or other
energy resource on Federal lands or the
Outer Continental Shelf;''; and
(6) in paragraph (29), by inserting ``or permit'' after
``lease''.
(b) Compliance Reviews.--Section 101 of the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1711) is amended by adding at
the end the following new subsection:
``(d) The Secretary may, as an adjunct to audits of accounts for
leases, conduct compliance reviews of accounts. Such reviews shall not
constitute nor substitute for audits of lease accounts. The Secretary
shall immediately refer any disparity uncovered in such a compliance
review to a program auditor. The Secretary shall, before completion of
a compliance review, provide notice of the review to designees whose
obligations are the subject of the review.''.
(c) Liability for Royalty Payments.--Section 102(a) of the Federal
Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1712(a)) is
amended to read as follows:
``(a) Liability for Royalty Payments.--
``(1) Time and manner of payment.--In order to increase
receipts and achieve effective collections of royalty and other
payments, a lessee who is required to make any royalty or other
payment under a lease, easement, right-of-way, permit, or other
agreement, regardless of form, or under the mineral leasing
laws, shall make such payment in the time and manner as may be
specified by the Secretary or the applicable delegated State.
``(2) Designee.--Any person who pays, offsets, or credits
monies, makes adjustments, requests and receives refunds, or
submits reports with respect to payments the lessee must make
is the lessee's designee under this Act.
``(3) Liability.--A designee shall be liable for any
payment obligation of any lessee on whose behalf the designee
pays royalty under the lease. The person owning operating
rights in a lease and a person owning legal record title in a
lease shall be liable for that person's pro rata share of
payment obligations under the lease.''.
(d) Recordkeeping.--Section 103(b) of the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1713(b)) is amended by
striking ``6'' and inserting ``7''.
(e) Adjustments and Refunds.--Section 111A of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1721a) is amended--
(1) in subsection (a)--
(A) by amending paragraph (3) to read as follows:
``(3)(A) An adjustment or a request for a refund for an
obligation may be made after the adjustment period only upon
written notice to and approval by the Secretary or the
applicable delegated State, as appropriate, during an audit of
the period which includes the production month for which the
adjustment is being made.
``(B) Except as provided in subparagraph (C), no adjustment
may be made with respect to an obligation after the completion
of an audit or compliance review of such obligation unless such
adjustment is approved by the Secretary or the applicable
delegated State, as appropriate.
``(C) If an overpayment is identified during an audit, the
Secretary shall allow a credit in the amount of the
overpayment.''; and
(B) in paragraph (4)--
(i) by striking ``six-year'' and inserting
``four-year''; and
(ii) by striking ``period shall'' and
inserting ``period may''; and
(2) in subsection (b)(1)--
(A) in subparagraph (C), by striking ``and'';
(B) in subparagraph (D), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(E) is made within the adjustment period for that
obligation.''.
(f) Obligation Period.--
(1) Section 115(b)(1) of the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1724(b)(1)) is amended to
read as follows:
``(1) The Secretary or a delegated State shall commence a
judicial proceeding or demand which arises from, or relates to
an obligation, within seven years from the date on which the
obligation becomes due and if not so commenced shall be barred.
A lessee shall commence a judicial proceeding or demand which
arises from, or relates to an obligation, within four years
from the date on which an obligation becomes due and if not so
commenced shall be barred. If the Secretary, a delegated State,
a lessee, or designee is barred from commencement of a judicial
proceeding or demand for an obligation, it--
``(A) shall not take any other or further action
regarding that obligation, including (but not limited
to) the issuance of any order, request, demand or other
communication seeking any document, accounting,
determination, calculation, recalculation, payment,
principal, interest, assessment, or penalty or the
initiation, pursuit or completion of an audit with
respect to that obligation; and
``(B) shall not pursue any other equitable or legal
remedy, including equitable recoupment, whether under
statute or common law, with respect to an action on,
defense against, or an enforcement of said
obligation.''.
(2) Section 115(c) of the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1724(c)) is amended by adding
at the end the following new paragraph:
``(3) Adjustments.--In the case of an adjustment under
section 111A(a) in which a recoupment by the lessee results in
an underpayment of an obligation, the obligation becomes due on
the date the lessee or its designee makes the adjustment.''.
(g) Appeals.--Section 115(h) of the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1724(h)) is amended--
(1) in paragraph (1), in the heading, by striking ``33-
month'' and inserting ``48-month'';
(2) by striking ``33 months'' each place it appears and
inserting ``48 months''; and
(3) by striking ``33-month'' each place it appears and
inserting ``48-month''.
(h) Penalty for Late or Incorrect Reporting of Data.--
(1) In general.--The Secretary of the Interior shall issue
regulations by not later than 1 year after the date of
enactment of this Act that establish a civil penalty for late
or incorrect reporting of data under the Federal Oil and Gas
Royalty Management Act of 1982.
(2) Amount.--The amount of the civil penalty shall be--
(A) an amount that the Secretary determines is
sufficient to ensure filing of data in accordance with
that Act; and
(B) not less than $10 for each failure to file
correct data in accordance with that Act.
(3) Content of regulations.--Except as provided in
paragraph (2), the regulations issued under this section shall
be substantially similar to section 216.40 of title 30, Code of
Federal Regulations, as most recently in effect before the date
of enactment of this Act.
(i) Shared Penalties.--Section 206 of the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1736) is amended by striking
``Any payments under this section shall be reduced by an amount equal
to any payments provided or due to such State or Indian Tribe under the
cooperative agreement or delegation, as applicable, during the fiscal
year in which the civil penalty is received, up to the total amount
provided or due for that fiscal year.''.
(j) Adjustments and Refunds.--Section 111A of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1721a) is amended--
(1) in subsection (a)--
(A) by amending paragraph (3) to read as follows:
``(3)(A) An adjustment or a request for a refund for an
obligation may be made after the adjustment period only upon
written notice to and approval by the Secretary or the
applicable delegated State, as appropriate, during an audit of
the period which includes the production month for which the
adjustment is being made.
``(B) Except as provided in subparagraph (C), no adjustment
may be made with respect to an obligation after the completion
of an audit or compliance review of such obligation unless such
adjustment is approved by the Secretary or the applicable
delegated State, as appropriate.
``(C) If an overpayment is identified during an audit, the
Secretary shall allow a credit in the amount of the
overpayment.''; and
(B) in paragraph (4)--
(i) by striking ``six-year'' and inserting
``four-year''; and
(ii) by striking ``period shall'' and
inserting ``period may''; and
(2) in subsection (b)(1)--
(A) in subparagraph (C), by striking ``and'';
(B) in subparagraph (D), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(E) is made within the adjustment period for that
obligation.''.
(k) Tolling Agreements and Subpoenas.--
(1) Tolling agreements.--Section 115(d)(1) of the Federal
Oil and Gas Royalty Management Act of 1982 (30 U.S.C.
1724(d)(1)) is amended--
(A) by striking ``(with notice to the lessee who
designated the designee)''; and
(B) by adding at the end ``A tolling agreement
executed by a designee shall bind both the owner of
legal record title in a lease and the owner of
operating rights in a lease, and any designee. The
owner of the legal record title and the owner of
operating rights in a lease shall be bound by the
tolling agreement to the extent of their pro rata share
of payment obligations under the lease.''.
(2) Subpoenas.--Section 115(d)(2)(A) of the Federal Oil and
Gas Royalty Management Act of 1982 (30 U.S.C. 1724(d)(2)(A)) is
amended by striking ``(with notice to the lessee who designated
the designee, which notice shall not constitute a subpoena to
the lessee)''.
(l) Required Recordkeeping for Natural Gas Plants.--
(1) Not later than 1 year after the date of enactment of
this Act, the Secretary of the Interior shall publish final
regulations with respect to required recordkeeping, under the
authority provided in section 103 of the Federal Oil and Gas
Royalty Management Act of 1982 (30 U.S.C. 1713), as amended by
this Act.
(2) Section 103(a) of the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1713(a)) is amended to read:
``(a) A lessee, operator, or other person directly involved in
developing, producing, treating, transporting, processing, purchasing,
or selling oil or gas subject to this chapter through the point of
first arm's-length sale, the point of royalty determination, or the
point that processing is complete, whichever is later, shall establish
and maintain any records, make any reports, and provide any information
that the Secretary may, by rule, reasonably require for the purposes of
implementing this chapter or determining compliance with rules or
orders under this chapter. Upon the request of any officer or employee
duly designated by the Secretary or any State or Indian Tribe
conducting an audit or investigation pursuant to this chapter, the
appropriate records, reports, or information which may be required by
this section shall be made available for inspection and duplication by
such officer or employee, State, or Indian Tribe.''.
(m) Entitlements.--
(1) Directed rulemaking.--Not later than 180 days after the
date of enactment of this Act, the Secretary of the Interior
shall publish final regulations prescribing when a Federal
lessee or designee must report and pay royalties on oil and gas
production for each month based on--
(A) the volume of oil and gas produced from a lease
or allocated to the lease in accordance with the terms
of a unit or communitization agreement; or
(B) the actual volume of oil and gas sold by or on
behalf of the lessee.
(2) 100 percent entitlement reporting and paying.--The
Secretary shall give consideration to requiring all reporting
and paying based on the volume of oil and gas produced from a
lease or allocated to the lease in accordance with the terms of
a unit or communitization agreement without regard to the
actual volume of oil and gas sold by or on behalf of a lessee.
(3) Volume allocation of oil and gas production.--Section
111(i) of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1721(i)) is amended to read:
``(i) Volume Allocation of Oil and Gas Production.--Except as
otherwise provided by this subsection--
``(A) a lessee or its designee of a lease in any unit or
communitization agreement shall report and pay royalties on oil
and gas production for each production month based on the
volume of oil and gas produced from such agreement and
allocated to the lease in accordance with the terms of the
agreement; and
``(B) a lessee or its designee of a lease that is not
contained in a unit or communitization agreement shall report
and pay royalties on oil and gas production for each production
month based on the volume of oil and gas produced from the
lease unless the Secretary promulgates a final rule to allow or
require that the lessee report and pay royalties on oil and gas
production for each production month based on the actual volume
of production sold by or on behalf of that lessee.''.
SEC. 70807. HARDROCK MINING.
(a) Abandoned Mine Land Cleanup.--In addition to amounts otherwise
available, there is appropriated to the Bureau of Land Management for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated $2,500,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for all activities necessary to inventory, assess, decommission,
reclaim, respond to hazardous substance releases on, and remediate
abandoned locatable minerals mine land.
(b) Royalty.--
(1) In general.--Except as provided in paragraph (2) and
subject to paragraph (3), production of all locatable minerals
from any mining claim located under the general mining laws and
maintained in compliance with this Act, or mineral concentrates
or products derived from locatable minerals from any such
mining claim, as the case may be, shall be subject to a royalty
of 8 percent of the gross income from mining. The claim holder
or any operator to whom the claim holder has assigned the
obligation to make royalty payments under the claim and any
person who controls such claim holder or operator shall be
liable for payment of such royalties.
(2) Royalty for federal lands subject to approved plan of
operations.--The royalty under paragraph (2) shall be 4 percent
in the case of any Federal land that is subject to an approved
plan of operations on the date of the enactment of this Act.
(3) Federal land added to existing plans of operations.--
Any Federal land added through a plan modification to a mining
plan of operations that is submitted after the date of
enactment of this Act shall be subject to the royalty that
applies to Federal land under paragraph (1).
(4) Limitation on application.--
(A) In general.--Any royalty under this subsection
shall not apply to small miners. In this subparagraph,
the term ``small miner'' means a person (including all
related parties thereto) that certifies to the
Secretary in writing that the person had annual gross
income in the preceding calendar year from mineral
production in an amount less than $100,000.
(B) Related parties defined.--For the purposes of
this paragraph, the term ``related parties'' means,
with respect to a person--
(i) the spouse and all dependents (as
defined in section 152 of the Internal Revenue
Code of 1986 (26 U.S.C. 152)) of the person; or
(ii) another person who is affiliated with
the person, including--
(I) another person who controls, is
controlled by, or is under common
control with the person; and
(II) a subsidiary or parent company
or corporation of the person.
(C) Control defined.--For purposes of this
paragraph, the term ``control'' includes actual
control, legal control, and the power to exercise
control, through or by common directors, officers,
stockholders, a voting trust, or a holding company or
investment company, or any other means.
(5) Duties of claim holders, operators, and transporters.--
(A) Regulation.--The Secretary shall prescribe by
rule the time and manner in which--
(i) a person who is required to make a
royalty payment under this section shall make
such payment; and
(ii) shall notify the Secretary of any
assignment that such person may have made of
the obligation to make any royalty or other
payment under a mining claim under this
section.
(B) Written instrument.--Any person paying
royalties under this section shall file a written
instrument, together with the first royalty payment,
affirming that such person is responsible for making
proper payments for all amounts due for all time
periods for which such person has a payment
responsibility.
(C) Additional amounts.--Such responsibility for
the periods referred to in subparagraph (B) shall
include any and all additional amounts billed by the
Secretary and determined to be due by final agency or
judicial action.
(D) Joint and several liability.--Any person liable
for royalty payments under this section who assigns any
payment obligation shall remain jointly and severally
liable for all royalty payments due for the period.
(E) Obligations.--A person conducting mineral
activities shall--
(i) develop and comply with the site
security provisions in the mining plan of
operations designed to protect from theft the
hardrock minerals, concentrates, or products
derived therefrom that are produced or stored
on the area subject to a mining claim or lease,
and such provisions shall conform with such
minimum standards as the Secretary may
prescribe by rule, taking into account the
variety of circumstances on areas subject to
mining claims and leases; and
(ii) not later than the 5th business day
after production begins anywhere on an area
subject to a mining claim, or production
resumes after more than 90 days after
production was suspended, notify the Secretary,
in the manner prescribed by the Secretary, of
the date on which such production has begun or
resumed.
(F) Required documentation.--The Secretary may by
rule require any person engaged in transporting a
hardrock mineral, concentrate, or product derived
therefrom to carry on his or her person, in his or her
vehicle, or in his or her immediate control,
documentation showing, at a minimum, the amount,
origin, and intended destination of the hardrock
mineral, concentrate, or product derived therefrom in
such circumstances as the Secretary determines is
appropriate.
(6) Recordkeeping and reporting requirements.--
(A) In general.--A claim holder, operator, or other
person directly involved in developing, producing,
processing, transporting, purchasing, or selling
hardrock minerals, concentrates, or products derived
therefrom, subject to this section, shall establish and
maintain any records, make any reports, and provide any
information that the Secretary may reasonably require
for the purposes of implementing this section or
determining compliance with rules or orders under this
section. Such records shall include periodic reports,
records, documents, and other data. Such reports may
also include pertinent technical and financial data
relating to the quantity, quality, composition volume,
weight, and assay of all minerals extracted from the
mining claim or lease.
(B) Forfeiture.--Failure by a claim holder or
operator to cooperate with such an audit, provide data
required by the Secretary, or grant access to
information may, at the discretion of the Secretary, be
declared void.
(C) Maintenance of records.--Records required by
the Secretary under this section shall be maintained
for 7 years after release of financial assurance unless
the Secretary notifies the operator that the Secretary
has initiated an audit or investigation involving such
records and that such records must be maintained for a
longer period. In any case when an audit or
investigation is underway, records shall be maintained
until the Secretary releases the operator of the
obligation to maintain such records.
(7) Audits.--The Secretary is authorized to conduct such
audits of all operators, transporters, purchasers, processors,
or other persons directly or indirectly involved in the
production or sale of minerals covered by this section, as the
Secretary deems necessary for the purposes of ensuring
compliance with the requirements of this section. For purposes
of performing such audits, the Secretary shall, at reasonable
times and upon request, have access to, and may copy, all
books, papers and other documents that relate to compliance
with any provision of this section by any person.
(8) Interest and substantial underreporting assessments.--
(A) Payments not received.--In the case of
production where royalty payments are not received by
the Secretary on the date that such payments are due,
the Secretary shall charge interest on such
underpayments at the same interest rate as the rate
applicable under section 6621(a)(2) of the Internal
Revenue Code of 1986. In the case of an underpayment,
interest shall be computed and charged only on the
amount of the deficiency and not on the total amount.
(B) Underreporting.--If there is any underreporting
of royalty owed on production for any production month
by any person liable for royalty payments under this
section, the Secretary shall assess a penalty of not
greater than 25 percent of the amount of that
underreporting.
(C) Self-reporting.--The Secretary may waive or
reduce the assessment provided in subparagraph (B) if
the person liable for royalty payments under this
section corrects the underreporting before the date
such person receives notice from the Secretary that an
underreporting may have occurred, or before 90 days
after the date of the enactment of this section,
whichever is later.
(D) Waiver.--The Secretary shall waive any portion
of an assessment under subparagraph (B) attributable to
that portion of the underreporting for which the person
responsible for paying the royalty demonstrates that--
(i) such person had written authorization
from the Secretary to report royalty on the
value of the production on basis on which it
was reported;
(ii) such person had substantial authority
for reporting royalty on the value of the
production on the basis on which it was
reported;
(iii) such person previously had notified
the Secretary, in such manner as the Secretary
may by rule prescribe, of relevant reasons or
facts affecting the royalty treatment of
specific production which led to the
underreporting; or
(iv) such person meets any other exception
which the Secretary may, by rule, establish.
(E) Definition.--For the purposes of this
subsection, the term ``underreporting'' means the
difference between the royalty on the value of the
production that should have been reported and the
royalty on the value of the production which was
reported, if the value that should have been reported
is greater than the value that was reported.
(9) Expanded royalty obligations.--Each person liable for
royalty payments under this section shall be jointly and
severally liable for royalty on all hardrock minerals,
concentrates, or products derived therefrom lost or wasted from
a mining claim when such loss or waste is due to negligence on
the part of any person or due to the failure to comply with any
rule, regulation, or order issued under this section.
(10) Gross income from mining defined.--For the purposes of
this section, for any hardrock mineral, the term ``gross income
from mining'' has the same meaning as the term ``gross income''
in the Internal Revenue Code of 1986 (26 C.F.R. 61).
(11) Effective date.--Royalties under this section shall
take effect with respect to the production of hardrock minerals
after the enactment of this Act, but any royalty payments
attributable to production during the first 12 calendar months
after the enactment of this Act shall be payable at the
expiration of such 12-month period.
(12) Failure to comply with royalty requirements.--Any
person who fails to comply with the requirements of this
section or any regulation or order issued to implement this
section shall be liable for a civil penalty under section 109
of the Federal Oil and Gas Royalty Management Act (30 U.S.C.
1719) to the same extent as if the claim maintained in
compliance with this title were a lease under such Act.
(c) Reclamation Fee.--
(1) Imposition of fee.--Except as provided in paragraph
(7), each operator conducting hardrock mineral activities shall
pay to the Secretary of the Interior a reclamation fee of 7
cents per ton of displaced material.
(2) Payment deadline.--Such reclamation fee shall be paid
not later than 60 days after the end of each calendar year
beginning with the first calendar year occurring after the date
of enactment of this Act.
(3) Submission of statement.--All operators conducting
hardrock mineral activities shall submit to the Secretary a
statement of the amount of displaced material produced during
mineral activities during the previous calendar year, the
accuracy of which shall be sworn to by the operator and
notarized.
(4) Penalty.--Any corporate officer, agent, or director of
a person conducting hardrock mineral activities, and any other
person acting on behalf of such a person, who knowingly makes
any false statement, representation, or certification, or
knowingly fails to make any statement, representation, or
certification, required under this section with respect to such
operation shall, upon conviction, be punished by a fine of not
more than $10,000.
(5) Civil action to recover fee.--Any portion of such
reclamation fee not properly or promptly paid pursuant to this
section shall be recoverable, with statutory interest, from the
hardrock mineral activities operator, in any court of competent
jurisdiction in any action at law to compel payment of debts.
(6) Effect.--Nothing in this section requires a reduction
in, or otherwise affects, any similar fee required under any
law (including regulations) of any State.
(7) Exemption.--The fee under this section shall not apply
for small miners.
(8) Definitions.--
(A) The term ``displaced material'' means any
unprocessed ore and waste dislodged from its location
at the time hardrock mineral activities begin at a
surface, underground, or in-situ mine.
(B) The term ``hardrock mineral''--
(i) means any mineral that was subject to
location under the general mining laws as of
the date of enactment of this Act, and that is
not subject to disposition under--
(I) the Mineral Leasing Act (30
U.S.C. 181 et seq.);
(II) the Geothermal Steam Act of
1970 (30 U.S.C. 1001 et seq.);
(III) the Act of July 31, 1947,
commonly known as the Materials Act of
1947 (30 U.S.C. 601 et seq.); or
(IV) the Mineral Leasing for
Acquired Lands Act (30 U.S.C. 351 et
seq.); and
(ii) does not include any mineral that is
subject to a restriction against alienation
imposed by the United States and is--
(I) held in trust by the United
States for any Indian or Indian Tribe,
as defined in section 2 of the Indian
Miner Development Act of 1982 (25
U.S.C. 2101); or
(II) owned by any Indian or Indian
Tribe, as defined in that section.
(C) The term ``mineral activities'' means any
activity on a mining claim, mill site, or tunnel site,
or a mining plan of operations, for, related to, or
incidental to, mineral exploration, mining,
beneficiation, processing, or reclamation activities
for any hardrock mineral.
(D) The term ``operator'' means any person
authorized at the date of enactment of this Act or
proposing after the date of enactment of this Act to
conduct mineral activities under the Mining Law of 1872
(30 U.S.C. 22)and any agent of such person.
(E) The term ``small miner'' means a person
(including all related parties thereto) that certifies
to the Secretary in writing that the person had annual
gross income in the preceding calendar year from
mineral production in an amount less than $100,000.
(F) The term ``displaced material'' means any crude
ore and waste dislodged from its location at the time
hardrock mineral activities begin at a surface,
underground, or in-situ mine.
(d) Claim Maintenance Fee.--
(1) Hardrock mining claim maintenance fee.--
(A) Required fees.--
(i) For each unpatented mining claim, mill,
or tunnel site on federally owned lands,
whether located before, on, or after the date
of enactment of this Act, each claimant shall
pay to the Secretary, on or before September 1
of each year, a claim maintenance fee of $200
per claim to hold such unpatented mining claim,
mill or tunnel site for the assessment year
beginning at noon on the next day, September 1.
(ii) For each unpatented placer mining
claim on federally owned lands, whether located
before, on, or after the date of enactment of
this Act, each claimant shall pay to the
Secretary, on or before September 1 of each
year, a claim maintenance fee of $200 for each
20 acres of the placer claim or portion
thereof.
(iii) Such claim maintenance fee described
in this section shall be in lieu of the
assessment work requirement contained in the
Mining Law of 1872 (30 U.S.C. 28 et seq.) and
the related filing requirements contained in
section 314 (a) and (c) of the Federal Land
Policy and Management Act of 1976 (43 U.S.C.
1744 (a) and (c)).
(iv) The claim maintenance fee in this
section shall be paid for the year in which the
location is made, at the time the location
notice is recorded with the Bureau of Land
Management.
(B) Fee adjustments.--
(i) The Secretary shall provide claimants
notice of any adjustment made under this
subsection not later than July 1 of any year in
which the adjustment is made.
(ii) A fee adjustment under this subsection
shall begin to apply the first assessment year
which begins after adjustment is made.
(C) Exception for small miners.--The claim
maintenance fee required under this section may be
waived for a claimant who certifies in writing to the
Secretary that on the date the payment was due, the
claimant and all related parties--
(i) held not more than 10 mining claims,
mill sites, or tunnel sites, or any combination
thereof, on public lands; and
(ii) have performed assessment work
required under the Mining Law of 1872 (30
U.S.C. 28-28e) to maintain the mining claims
held by the claimant and such related parties
for the assessment year ending on noon of
September 1 of the calendar year in which
payment of the claim maintenance fee was due.
(2) Co-ownership.--The co-ownership provisions of the
Mining Law of 1872 (30 U.S.C. 28 et seq.) shall remain in
effect except that the annual claim maintenance fee, where
applicable, shall replace applicable assessment requirements
and expenditures.
(3) Failure to pay.--Failure to timely pay the claim
maintenance fee as required by the Secretary shall conclusively
constitute a forfeiture of the unpatented mining claim, mill or
tunnel site by the claimant and the claim shall be deemed null
and void by operation of law.
(e) Funding to Prevent Environmental Damage From Mining.--In
addition to amounts otherwise available, there is appropriated to the
Bureau of Land Management for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $3,000,000, to remain available
until September 30, 2031, except that no amounts may be expended after
September 30, 2031, to revise rules and regulations to prevent undue
degradation of public lands due to hardrock mining activities as
authorized by the Federal Land Policy and Management Act (43 U.S.C.
1701) and the Mining Law of 1872 (30 U.S.C. 22).
Subtitle I--Office of Native Hawaiian Relations
SEC. 70901. NATIVE HAWAIIAN CONSULTATION.
In addition to amounts otherwise available, there is appropriated
to the Office of Native Hawaiian Relations for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $3,000,000, to
remain available until September 30, 2031, except that no amounts may
be expended after September 30, 2031, for the purposes of conducting
consultations with the Native Hawaiian people.
SEC. 70902. NATIVE HAWAIIAN CLIMATE RESILIENCE.
In addition to amounts otherwise available, there is appropriated
to the Office of Native Hawaiian Relations for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $30,000,000, to
remain available until September 30, 2031, except that no amounts may
be expended after September 30, 2031, through direct expenditure,
contracts, grants, and cooperative agreements to provide funding and
technical assistance for climate resilience and adaptation programs
that serve the Native Hawaiian people.
Subtitle J--Accountability for Funds
SEC. 71001. OVERSIGHT.
One half of one percent of the amounts made available under this
title in each of fiscal years 2022 through 2031 shall be used for the
oversight and accountability of the expenditure of funds.
SEC. 71002. LIMITATION.
Of the funds provided under sections 70301, 70303, 70310, 70504,
70505, 70506, 70507, 70508, 70510, 70512, 70513, 70514, 70601, 70602,
70603, 70609, and 70610, no more than 2 percent shall be used for
administrative costs to carry out such sections.
SEC. 71003. LIMITATION.
No funds made available under this title may be used to close the
national office of the Bureau of Land Management located in Grand
Junction, Colorado.
TITLE VIII--COMMITTEE ON OVERSIGHT AND REFORM
SEC. 80001. GENERAL SERVICES ADMINISTRATION CLEAN VEHICLE FLEET.
In addition to amounts otherwise available, there is appropriated
to the General Services Administration for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $5,000,000,000, to
remain available until expended, for the procurement of electric
vehicles and related infrastructure for the Federal fleet (excluding
any vehicles of the United States Postal Service and including non-
tactical vehicles of the Department of Defense), and the management,
acquisition, and allocation of such electric vehicles and
infrastructure and working with Federal agencies to allocate and lease
resources as necessary.
SEC. 80002. GENERAL SERVICES ADMINISTRATION OFFICE OF THE INSPECTOR
GENERAL CLEAN VEHICLE FLEET OVERSIGHT.
In addition to amounts otherwise available, there is appropriated
to the Office of the Inspector General of the General Services
Administration for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $2,500,000, to remain available until
expended, for oversight of the procurement of electric vehicles and
related infrastructure for the Federal fleet at the General Services
Administration.
SEC. 80003. UNITED STATES POSTAL SERVICE; CLEAN VEHICLE FLEET AND
FACILITY MAINTENANCE.
In addition to amounts otherwise available, there is appropriated
to the United States Postal Service for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $7,000,000,000, to
remain available until expended, to be deposited into the Postal
Service Fund established under section 2003 of title 39, United States
Code, to acquire electric vehicles for the Postal Service fleet, of
which $3,000,000,000 shall be for the purchase of electric delivery
vehicles and $4,000,000,000 shall be for the purchase of the related
infrastructure to support such vehicles.
SEC. 80004. UNITED STATES POSTAL SERVICE OFFICE OF THE INSPECTOR
GENERAL CLEAN VEHICLE FLEET PROCUREMENT OVERSIGHT.
In addition to amounts otherwise available, there is appropriated
to the Office of the Inspector General of the United States Postal
Service for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $23,000,000, to remain available until
expended, to be deposited into the Postal Service Fund established
under section 2003 of title 39, United States Code, to perform
oversight of the United States Postal Service's acquisition and
deployment of electric vehicles and such infrastructure as may be
required to support such vehicles.
SEC. 80005. NATIONAL ARCHIVES AND RECORDS ADMINISTRATION.
In addition to amounts otherwise available, there is appropriated
to the National Archives and Records Administration for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$60,000,000 to remain available until expended to address backlogs in
responding to requests from veterans for military personnel records,
improve cyber security, improve digital preservation and access to
archival Federal records, and address backlogs in requests made under
section 552 of title 5, United States Code (commonly referred to as the
Freedom of Information Act). Such amounts may also be used for the
Federal Records Center Program.
SEC. 80006. FUNDING FOR GOVERNMENT ACCOUNTABILITY OFFICE.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $25,000,000, to remain available until expended, for the
Comptroller General to conduct oversight of the receipt, disbursement,
and use of funds and exercise of authorities provided by this Act,
including oversight of the equitable distribution and use of funds and
their economic, social, and environmental impacts, and to prepare such
reports that the Comptroller General determines appropriate.
SEC. 80007. FUNDING FOR THE OFFICE OF MANAGEMENT AND BUDGET FOR
IMPLEMENTATION OF JUSTICE40.
In addition to amounts otherwise available, there is appropriated
to the Office of Management and Budget for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $4,000,000 to remain
available until September 30, 2026, for additional personnel and data
management expenses to support implementation of the Justice40
Initiative set forth in section 223 of Executive Order No. 14008,
``Executive Order on Tackling the Climate Crisis at Home and Abroad''
(January 27, 2021), including providing assistance to other agencies in
the development and implementation of methodologies to measure
benefits, the development of a database to track agency benefits to
disadvantaged communities, and a public-facing scorecard detailing
agency environmental justice performance measures.
SEC. 80008. DISTRICT OF COLUMBIA CLEAN VEHICLE FLEET.
In addition to amounts otherwise available, there is appropriated
to the District of Columbia for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $10,000,000, to remain
available until expended, for the procurement of electric vehicles and
related infrastructure for the District of Columbia and the management
and acquisition of such electric vehicles and infrastructure.
SEC. 80009. FUNDING FOR TECHNOLOGY MODERNIZATION FUND.
In addition to amounts otherwise available, there is appropriated
to the Technology Modernization Fund for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $1,000,000,000, to
remain available until September 30, 2031.
SEC. 80010. FUNDING FOR GENERAL SERVICES ADMINISTRATION FEDERAL CITIZEN
SERVICES FUND.
In addition to amounts otherwise available, there is appropriated
to the General Services Administration for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $2,000,000,000, to
remain available until September 30, 2031, to be deposited in the
Federal Citizen Services Fund.
SEC. 80011. FUNDING FOR INFORMATION TECHNOLOGY OVERSIGHT AND REFORM
(ITOR) ACCOUNT.
In addition to amounts otherwise available, there is appropriated
to the Office of Management and Budget's Information Technology
Oversight and Reform (ITOR) account within the Executive Office of the
President for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $350,000,000, to remain available until
September 30, 2031.
TITLE IX--COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY
SEC. 90001. DEPARTMENT OF COMMERCE REGIONAL INNOVATION.
In addition to amounts otherwise available, there is appropriated
to the Department of Commerce for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $5,000,000,000, to remain
available until September 30, 2031, except that no amounts may be
expended after September 30, 2031, for planning and establishment of
regional innovation initiatives pursuant to the Stevenson-Wydler Act,
and for related administrative expenses. Of the funds provided by this
section for regional innovation initiatives, no fewer than one-third of
grants or cooperative agreements awarded shall significantly benefit a
State that is eligible to receive funding from the Established Program
to Stimulate Competitive Research of the National Science Foundation or
a rural or other underserved community.
SEC. 90002. FUNDING FOR DEPARTMENT OF ENERGY LABORATORY INFRASTRUCTURE.
(a) Office of Science Appropriation.--In addition to amounts
otherwise available, there is appropriated to the Department of Energy
Office of Science for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $10,391,804,000, to remain
available until September 30, 2026, to carry out laboratory
infrastructure projects, including--
(1) $7,780,566,000 for Construction Projects, of which--
(A) $220,000,000 shall be used for the Exascale
Computing Project;
(B) $493,600,000 shall be used for the Frontier
Exascale Computing System;
(C) $427,400,000 shall be used for the Aurora
Exascale Computing System;
(D) $155,400,000 shall be used for upgrades to the
National Energy Research Scientific Computing Center;
(E) $38,616,000 shall be used for the Energy
Sciences Network;
(F) $157,000,000 shall be used for the Advanced
Photon Source Upgrade;
(G) $729,800,000 shall be used for the Spallation
Neutron Source Proton Power Upgrade and Second Target
Station;
(H) $337,600,000 shall be used for the Advanced
Light Source Upgrade;
(I) $472,850,000 shall be used for the Linac
Coherent Light Source-II, including the High Energy
Upgrade;
(J) $86,000,000 shall be used for the Cryomodule
Repair and Maintenance Facility;
(K) $25,000,000 shall be used for the High Flux
Isotope Reactor Pressure Vessel Replacement;
(L) $1,325,000,000 shall be used for United States
contributions to the ITER project as authorized in
section 972(c) of the Energy Policy Act of 2005 (42
U.S.C. 16312(c));
(M) $212,300,000 shall be used for the Matter in
Extreme Conditions Upgrade;
(N) $581,000,000 shall be used for the Proton
Improvement Plan-II project;
(O) $1,300,000,000 shall be used for the Long
Baseline Neutrino Facility/Deep Underground Neutrino
Experiment;
(P) $13,000,000 shall be used for the Muon to
Electron Conversion Experiment;
(Q) $806,000,000 shall be used for the Electron Ion
Collider;
(R) $213,000,000 shall be used for the Oak Ridge
National Laboratory Radioisotope Processing Facility;
and
(S) $187,000,000 shall be used for the United
States Stable Isotope Production and Research Center;
(2) $1,470,238,000 for Major Items of Equipment, of which--
(A) $302,000,000 shall be used for the High
Performance Data Facility;
(B) $90,000,000 shall be used for the Nanoscale
Science Research Center Recapitalization project;
(C) $83,500,000 shall be used for the National
Synchrotron Light Source-II Experimental Tools II
project;
(D) $59,200,000 shall be used for the Material
Plasma Exposure Experiment;
(E) $567,875,000 shall be used for such projects
for the High Energy Physics program, including--
(i) $237,000,000 for the Cosmic Microwave
Background-Stage 4 experiment; and
(ii) $223,875,000 for upgrades to the Large
Hadron Collider; and
(F) $367,663,000 shall be used for such projects
for the Nuclear Physics program, including $212,500,000
for the Ton-Scale Neutrinoless Double Beta Decay
experiment; and
(3) $1,141,000,000 for Science Laboratories Infrastructure,
of which--
(A) $111,500,000 shall be used for such projects at
the Oak Ridge National Laboratory;
(B) $115,000,000 shall be used for such projects at
the Thomas Jefferson National Accelerator Facility;
(C) $150,400,000 shall be used for such projects at
the Princeton Plasma Physics Laboratory;
(D) $29,850,000 shall be used for such projects at
the Ames Laboratory;
(E) $90,000,000 shall be used for such projects at
the Brookhaven National Laboratory;
(F) $265,000,000 shall be used for such projects at
the Lawrence Berkeley National Laboratory;
(G) $152,000,000 shall be used for such projects at
the SLAC National Accelerator Laboratory;
(H) $100,000,000 shall be used for such projects at
the Argonne National Laboratory; and
(I) $127,250,000 shall be used for such projects at
the Fermi National Accelerator Laboratory.
(b) Energy Efficiency and Renewable Energy Appropriation.--In
addition to amounts otherwise available, there is appropriated to the
Department of Energy Office of Energy Efficiency and Renewable Energy
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $349,200,000, to remain available until September 30,
2026, to carry out laboratory infrastructure projects, of which--
(1) $163,000,000 shall be used for the Energy Materials and
Processing at Scale project;
(2) $96,200,000 shall be used for the Advanced Research in
Integrated Energy Systems initiative; and
(3) $90,000,000 shall be used for high-performance
computing equipment and infrastructure.
(c) Nuclear Energy Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Department of Energy Office of
Nuclear Energy for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $408,000,000, to remain available until
September 30, 2026, to carry out laboratory infrastructure projects, of
which--
(1) $66,000,000 shall be used for the Sample Preparation
Laboratory;
(2) $125,000,000 shall be used for the Advanced Test
Reactor and Materials and Fuel Complex Plant Health projects;
(3) $122,000,000 shall be used for the Advanced Test
Reactor Recapitalization project; and
(4) $95,000,000 shall be used for the Versatile Test
Reactor as authorized in section 955 of the Energy Policy Act
of 2005 (42 U.S.C. 16275).
(d) Fossil Energy and Carbon Management Appropriation.--In addition
to amounts otherwise available, there is appropriated to the Department
of Energy Office of Fossil Energy and Carbon Management for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$20,000,000, to remain available until September 30, 2026, to carry out
activities to support high-performance computing equipment and
infrastructure.
(e) General Laboratory Infrastructure.--In addition to amounts
otherwise available, there is appropriated for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $1,080,996,000,
to remain available until September 30, 2026, to carry out activities
to support infrastructure at Department of Energy National Laboratories
for civilian research and development purposes, including General Plant
Projects and General Plant Equipment, of which--
(1) not less than $377,301,000 shall be available to the
Office of Science;
(2) not less than $209,800,000 shall be available to the
Office of Energy Efficiency and Renewable Energy;
(3) not less than $40,000,000 shall be available to the
Office of Nuclear Energy;
(4) not less than $190,000,000 shall be available to the
Office of Fossil Energy and Carbon Management; and
(5) not less than $102,200,000 shall be available to the
Office of Environmental Management.
SEC. 90003. DEPARTMENT OF ENERGY RESEARCH, DEVELOPMENT, AND
DEMONSTRATION ACTIVITIES.
(a) Office of Science Appropriations.--In addition to amounts
otherwise available, there is appropriated to the Office of Science of
the Department of Energy for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $2,000,000,000, to remain
available until September 30, 2026, to carry out research and
development activities. Of the funds provided by this section:
(1) Computational science graduate fellowship.--
$116,000,000 shall be used to carry out the Department of
Energy Computational Science Graduate Fellowship program.
(2) Quantum user expansion for science and technology.--
$340,000,000 shall be used to carry out activities to
facilitate access of researchers to United States quantum
computing facilities for research purposes as part of the
program authorized in title IV of the National Quantum
Initiative Act (15 U.S.C. 8851 et seq.).
(3) Low-dose radiation research.--$180,000,000 shall be
used to carry out the activities of the low-dose radiation
research program authorized in section 306(c) of the Department
of Energy Research and Innovation Act (42 U.S.C. 18644(c)).
(4) Fusion materials research and development.--
$250,000,000 shall be used to carry out the activities of the
fusion materials research and development program authorized in
section 307(b) of the Department of Energy Research and
Innovation Act (42 U.S.C. 18645(b)).
(5) Inertial fusion research and development.--$140,000,000
shall be used to carry out the activities of the program of
research and technology development in inertial fusion for
energy applications authorized in section 307(d) of the
Department of Energy Research and Innovation Act (42 U.S.C.
18645(d)).
(6) Alternative and enabling fusion energy concepts.--
$275,000,000 shall be used to carry out the activities of the
alternative and enabling fusion energy concepts program
authorized in section 307(e) of the Department of Energy
Research and Innovation Act (42 U.S.C. 18645(e)).
(7) Milestone-based fusion energy development program.--
$325,000,000 shall be used to carry out the activities of the
milestone-based fusion energy development program authorized in
section 307(i) of the Department of Energy Research and
Innovation Act (42 U.S.C. 18645(i)).
(8) Fusion reactor system design.--$250,000,000 shall be
used to carry out the fusion reactor system design activities
authorized in section 307(j) of the Department of Energy
Research and Innovation Act (42 U.S.C. 18645(j)).
(b) Energy Efficiency and Renewable Energy Appropriation.--
(1) Demonstration projects.--In addition to amounts
otherwise available, there is appropriated to the Department of
Energy Office of Energy Efficiency and Renewable Energy for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $1,107,500,000, to remain available
until September 30, 2026, to carry out demonstration projects,
including demonstration of advanced--
(A) wind energy technologies as authorized in
section 3003 of the Energy Act of 2020 (42 U.S.C.
16237);
(B) solar energy technologies as authorized in
section 3004 of the Energy Act of 2020 (42 U.S.C.
16238), including technologies and processes to
encourage the domestic production of materials,
semiconductors, and other components at all stages of
the solar supply chain;
(C) geothermal technologies as authorized in
section 615 of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17194);
(D) water power technologies as authorized in
sections 634 and 635 of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17213 et al.);
(E) vehicle technologies;
(F) bioenergy technologies, including biofuels; and
(G) building technologies.
(2) Clean energy manufacturing innovation institute.--In
addition to amounts otherwise available, there is appropriated
to the Office of Energy Efficiency and Renewable Energy for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $70,000,000, to remain available until
September 30, 2026, to carry out activities to support one new
Clean Energy Manufacturing Innovation Institute.
(c) Nuclear Energy Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Department of Energy Office of
Nuclear Energy for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $52,500,000, to remain available until
September 30, 2026, to carry out the activities of the research reactor
infrastructure program as authorized in section 954(a) of the Energy
Policy Act of 2005 (42 U.S.C. 16274(a)).
(d) Fossil Energy and Carbon Management Appropriation.--In addition
to amounts otherwise available, there is appropriated to the Department
of Energy Office of Fossil Energy and Carbon Management for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$10,000,000, to remain available until September 30, 2026, to carry out
on-site demonstration projects on the reduction of environmental
impacts of produced water.
(e) Diversity Support.--In addition to amounts otherwise available,
there is appropriated to the Department of Energy Office of Economic
Impact and Diversity for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $20,000,000, to remain available
until September 30, 2031, except that no amounts may be expended after
September 30, 2031, to support programs across the Department's
civilian research, development, demonstration, and commercial
application activities.
(f) Oversight.--In addition to amounts otherwise available, there
is appropriated to the Department of Energy for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated, $50,000,000,
to remain available until September 30, 2031, except that no amounts
may be expended after September 30, 2031, for oversight by the
Department of Energy Office of Inspector General of the Department of
Energy activities for which funding is appropriated in this title.
SEC. 90004. ENVIRONMENTAL PROTECTION AGENCY CLIMATE CHANGE RESEARCH AND
DEVELOPMENT.
In addition to amounts otherwise made available, there is
appropriated to the Environmental Protection Agency for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$264,000,000 to remain available until September 30, 2026, to conduct
environmental research and development activities related to climate
change, including related administrative expenses. The amounts made
available in this section shall be used for the purposes of--
(1) conducting further research on mitigation of climate
forcing emissions, adaptation to reduce the impacts of climate
change, and approaches to build resilience to climate change;
(2) providing increased support for evidence-based regional
and community climate adaptation and resilience actions,
including development of a grants-based regional climate
science network;
(3) conducting further social science research to upgrade
the utilization and efficacy of scientific tools to mitigate,
adapt, and build resilience to the impacts of climate change;
(4) increasing engagement capacity with frontline
communities with environmental justice concerns in translating,
utilizing, and evaluating scientific research results;
(5) conducting further research to improve understanding of
impacts of decarbonized energy sources compared to existing
energy sources, including cumulative impacts of pollution from
existing sources;
(6) conducting further research to improve understanding of
the impacts of the transition to decarbonized energy,
transportation, and building sectors on frontline communities;
(7) conducting further research to improve understanding of
impacts of climate change, including cumulative impacts of
pollution exposure, in communities that face disproportionate
impacts from energy transitions; and
(8) providing increased support to conduct further
environmental research and development activities on climate
change that the Administrator deems appropriate.
SEC. 90005. FEDERAL EMERGENCY MANAGEMENT AGENCY ASSISTANCE TO
FIREFIGHTERS GRANTS.
In addition to amounts otherwise available, there is appropriated
to the Federal Emergency Management Agency for Fiscal Year 2022, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2026, $798,000,000, for Assistance to
Firefighters Grants pursuant to the Federal Fire Prevention and Control
Act of 1974: Provided, That $718,000,000 of such amount shall be
available for Assistance to Firefighters Grants for fire and EMS
department facility construction, upgrades, and modifications, and for
related administrative expenses: Provided further, That $80,000,000 of
such amount shall be available for Assistance to Firefighters Grants
for PFAS-free personal protective equipment and PFAS-free firefighting
foam, and for related administrative expenses.
SEC. 90006. FIREFIGHTER GRANT OVERSIGHT.
In addition to amounts otherwise available, there is appropriated
to the Department of Homeland Security for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $2,000,000, to remain
available until September 30, 2031, except that no amounts may be
expended after September 30, 2031, for oversight by the Department of
Homeland Security Office of Inspector General of the activities for
which funding is appropriated in section 90005.
SEC. 90007. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
INFRASTRUCTURE.
In addition to amounts otherwise made available, there are
appropriated to the National Aeronautics and Space Administration for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $4,000,000,000 to remain available until September 30,
2026, for repair, recapitalization, and modernization of physical
infrastructure and facilities, including related administrative
expenses, consistent with the responsibilities authorized under section
31502 of title 51, United States Code, on maintenance of facilities and
section 31503 of title 51, United States Code, on laboratory
productivity.
SEC. 90008. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION CLIMATE
CHANGE RESEARCH AND DEVELOPMENT.
In addition to amounts otherwise made available, there are
appropriated to the National Aeronautics and Space Administration for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $388,000,000 to remain available until September 30,
2026, of which $85,000,000 shall be for research and development on
subseasonal to seasonal models and observations, climate resilience and
sustainability, and airborne instruments, campaigns, and surface
networks to understand, observe, and mitigate global climate change and
its impacts, including related administrative expenses, authorized
under section 60501 of title 51, United States Code, and research and
development activities on upper atmospheric research authorized under
sections 20161, 20163, and 20164 of title 51, United States Code;
$28,000,000 shall be for investments in data management and processing
to support research, development, and applications to understand,
observe, and mitigate the global climate change and its impacts
consistent with the responsibilities authorized under section 60506 of
title 51, United States Code; $50,000,000 shall be for research and
development to support the wildfire community and improve wildfire
fighting operations, including the Scalable Traffic Management for
Emergency Response Operations project; and $225,000,000 shall be for
advancing aeronautics research and development on sustainable aviation,
including sustainable aviation biofuels, including related
administrative expenses, consistent with the responsibilities
authorized under sections 40701 and 40702 of title 51, United States
Code.
SEC. 90009. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION OVERSIGHT AND
CYBERSECURITY.
In addition to amounts otherwise made available, there are
appropriated to the National Aeronautics and Space Administration for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $7,000,000, to remain available until September 30, 2031,
except that no amounts may be expended after September 30, 2031, for
information technology security and cybersecurity activities for which
funding is appropriated under sections 90007 and 90008. In addition to
amounts otherwise made available, there are appropriated to the
National Aeronautics and Space Administration for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated, $5,000,000, to
remain available until September 30, 2031, except that no amounts may
be expended after September 30, 2031, for the Office of Inspector
General to provide oversight over the management of funds appropriated
under sections 90007 and 90008.
SEC. 90010. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY RESEARCH.
In addition to amounts otherwise available, there is appropriated
to the National Institute of Standards and Technology for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$1,195,000,000, to remain available until September 30, 2031, except
that no amounts may be expended after September 30, 2031, for
scientific and technical research pursuant to the National Institute of
Standards and Technology Act, for artificial intelligence (including AI
safety and control), cybersecurity, quantum information science and
technology, biotechnology, communications technologies, advanced
manufacturing, resilience to natural hazards including wildfires,
greenhouse gas and other climate-related measurement, and for related
administrative expenses: Provided, That $150,000,000 shall be available
for cybersecurity research and activities.
SEC. 90011. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY SUPPORTING
AMERICAN MANUFACTURING.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the National Institute of Standards and Technology
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $2,000,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
of which--
(1) $1,000,000,000 shall be for the Hollings Manufacturing
Extension Partnership as authorized by sections 25 and 26 of
the National Institute of Standards and Technology Act (15
U.S.C. 278k; 278l), including related administrative expenses;
(2) $850,000,000 shall be to provide funds, through
existing programs, for advanced manufacturing research,
development, and testbeds, including related administrative
expenses; and
(3) $150,000,000 shall be for the creation of a new
Manufacturing USA Institute that is focused on semiconductor
manufacturing.
(b) Limitation.--Amounts provided under subsection (a)(1) shall not
be subject to cost share requirements under section 25(e)(2) of the
National Institute of Standards and Technology Act (15 U.S.C.
278k(e)(2)). The authority made available pursuant to this preceding
sentence shall be elective for any Manufacturing Extension Partnership
Center that also receives funding from a State that is conditioned upon
the application of a Federal cost sharing requirement.
SEC. 90012. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY RESEARCH
FACILITIES.
In addition to amounts otherwise available, there is appropriated
to the National Institute of Standards and Technology for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$1,000,000,000, to remain available until September 30, 2031, except
that no amounts may be expended after September 30, 2031, for necessary
expenses as authorized by sections 13 through 15 of the National
Institute of Standards and Technology Act (15 U.S.C. 278c-278e) for
construction of new research facilities, including architectural and
engineering design, and for renovation and maintenance of existing
facilities.
SEC. 90013. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY OVERSIGHT.
In addition to amounts otherwise available, there is appropriated
to the Department of Commerce for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $5,000,000, to remain
available until September 30, 2031, except that no amounts may be
expended after September 30, 2031, for oversight by the Department of
Commerce Office of Inspector General of National Institute of Standards
and Technology activities for which funding is appropriated in this
title.
SEC. 90014. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION WEATHER,
OCEAN, AND CLIMATE RESEARCH AND FORECASTING.
In addition to amounts otherwise made available, there is
appropriated to the National Oceanic and Atmospheric Administration for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $1,240,000,000, to remain available until September 30,
2026, to carry out the provisions of the Weather Research and
Forecasting Innovation Act (15 U.S.C. 8501 et seq.), the National
Integrated Drought Information System Act (15 U.S.C. 313d), the
National Climate Program Act (15 U.S.C. 2901-2908.), the Harmful Algal
Bloom and Hypoxia Research and Control Act (33 U.S.C. 4001-4010), the
Federal Ocean Acidification Research and Monitoring Act (33 U.S.C.
3701-3708), title III of the America COMPETES Act (33 U.S.C. 893, 893a,
893b, and 893c), and the Weather Service Organic Act (15 U.S.C. 313 et
seq.). The amounts in this section shall be used for the purposes of--
(1) increasing the understanding, and predictive and
forecasting capabilities, of weather and climate phenomena
including, but not limited to, hurricanes, tornadoes, drought,
wildland fires and associated fire weather, extreme
precipitation, extreme heat and extreme heat events, flooding,
and other severe weather, and their impacts;
(2) increasing marine research capacity and the
understanding of the impacts of climate change on ocean
processes and phenomena including, but not limited to, ocean
acidification, harmful algal blooms, hypoxia and deoxygenation,
sea level change, and ocean warming;
(3) enhancing weather, ocean, climate, and other
environmental observations, research, data, data assimilation,
and modeling;
(4) facilitating successful transition of research into
operations and operations to research, including social science
for improved decision support services;
(5) acquiring related high-performance computing, data
management, and storage assets; and
(6) developing, leveraging, and employing new capabilities,
technologies and instruments, including dissemination and
processing.
SEC. 90015. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION CLIMATE
ADAPTATION AND RESILIENCE ACTIVITIES.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the National Oceanic and Atmospheric Administration
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $765,000,000 to remain available until September 30,
2026, to carry out the provisions of the National Climate Program Act
(15 U.S.C. 2901-2908), the Weather Research and Forecasting Innovation
Act (15 U.S.C. 8501 et seq.), title III of the America COMPETES Act (33
U.S.C. 893, 893a, 893b, and 893c), the National Integrated Drought
Information System Act (15 U.S.C. 313d), the Weather Service Organic
Act (15 U.S.C. 313 et seq.), the Harmful Algal Bloom and Hypoxia
Research and Control Act (33 U.S.C. 4001-4010), and the Federal Ocean
Acidification Research and Monitoring Act (33 U.S.C. 3701-3708) to
develop and distribute actionable climate information for communities
across all States, territories, and Tribal lands of the United States
in an equitable manner, to build climate resilience and develop a
climate-ready workforce.
(b) Use of Funds.--The amounts made available in subsection (a)
shall be used for the following activities:
(1) $265,000,000 to better enable end users, as
appropriate, to assess the relative risk of, determine possible
adaptation and mitigation strategies for, and make executive
and budgetary decisions in response to climate impacts by--
(A) increasing end user understanding of the
impacts of climate change at the local and regional
level;
(B) developing actionable climate information and
accessible tools and products; and
(C) providing end users with technical assistance.
(2) $500,000,000 to recruit, educate, and train a climate-
ready workforce to--
(A) develop and support on-the-ground community-
driven projects to enhance climate adaptation and
resilience;
(B) support community engagement and participation
in monitoring, tracking, and preparing for extreme
events;
(C) support local resilience to climate impacts;
(D) conduct community-driven climate science; and
(E) enhance the National Oceanic and Atmospheric
Administration's delivery of climate information
services, tools, and products, including but not
limited to those developed in paragraph (1)(B).
(c) End Users.--For the purposes of this section, the term ``end
users'' shall include--
(1) States;
(2) territories;
(3) Tribes;
(4) local governments;
(5) businesses;
(6) not-for-profit or other organizations; and
(7) individuals.
(d) Extreme Event.--For the purposes of this section, the term
``extreme event'' refers to a time and place in which weather, climate,
or environmental conditions, such as temperature, precipitation,
drought, or flooding, rank above a threshold value near the upper or
lower ends of the range of historical measurements.
SEC. 90016. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION HIGH
PERFORMANCE COMPUTING.
In addition to amounts otherwise made available, there is
appropriated to the National Oceanic and Atmospheric Administration for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $70,000,000 to remain available until September 30, 2026,
to procure and enhance high performance computing, data management, and
storage capabilities, and related facilities to enable the National
Oceanic and Atmospheric Administration to meet its mission
requirements, including related administrative expenses.
SEC. 90017. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION PHASED
ARRAY RADAR.
In addition to amounts otherwise made available, there is
appropriated to the National Oceanic and Atmospheric Administration for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $224,000,000 to remain available until September 30,
2026, to carry out the provisions of the Weather Research and
Forecasting Innovation Act (15 U.S.C. 8501 et seq.) for research and
development activities to advance the understanding of phased array
radar as a potential future radar technology to improve weather
forecasts.
SEC. 90018. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION HURRICANE
HUNTER AIRCRAFT.
In addition to amounts otherwise made available, there is
appropriated to the National Oceanic and Atmospheric Administration for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $1,024,000,000 to remain available until September 30,
2026, to carry out the provisions of the Weather Research and
Forecasting Innovation Act (15 U.S.C. 8501 et seq.) for the procurement
of hurricane hunters and related expenses, and the development and
acquisition of airborne phased array radar, to prepare for fleet
readiness by fiscal year 2030.
SEC. 90019. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION UNCREWED
SYSTEMS.
In addition to amounts otherwise made available, there is
appropriated to the National Oceanic and Atmospheric Administration for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $12,000,000 to remain available until September 30, 2026,
to support uncrewed systems development and application in support of
National Oceanic and Atmospheric Administration mission priorities
including oceanic and atmospheric research and research to operations,
including related administrative expenses.
SEC. 90020. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION RESEARCH
INFRASTRUCTURE.
In addition to amounts otherwise made available, there is
appropriated to the National Oceanic and Atmospheric Administration for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $743,000,000 to remain available until September 30,
2026, to conduct deferred maintenance of meteorological, hydrological,
climatological, and other oceanic and atmospheric research and
development or operational facilities, and to make improvements to
scientific equipment and instruments, including related administrative
expenses.
SEC. 90021. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION SPACE
WEATHER.
In addition to amounts otherwise made available, there is
appropriated to the National Oceanic and Atmospheric Administration for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $173,000,000, to remain available until September 30,
2026, to carry out the provisions of the Promoting Research and
Observations of Space Weather to Improve the Forecasting of Tomorrow
(PROSWIFT) Act (51 U.S.C. 60601 et seq.) by accelerating the
development and delivery of instruments and spacecraft, and
prioritizing an independent launch for the Space Weather Next Lagrange
point 1 mission, including related administrative expenses.
SEC. 90022. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION OVERSIGHT.
In addition to amounts otherwise available, there is appropriated
to the Department of Commerce for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $5,000,000, to remain
available until September 30, 2026, for oversight by the Department of
Commerce Office of Inspector General of National Oceanic and
Atmospheric Administration activities for which funding is appropriated
in this title.
SEC. 90023. NATIONAL SCIENCE FOUNDATION INFRASTRUCTURE.
In addition to amounts otherwise available, there is appropriated
to the National Science Foundation for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $3,430,000,000, to
remain available until September 30, 2031, except that no amounts may
be expended after September 30, 2031, for research-enabling equipment,
facilities, and infrastructure, including mid-scale research
infrastructure, Antarctic infrastructure modernization, related Federal
administrative expenses and additional major research equipment and
facilities construction projects approved by the National Science Board
as required under section 14 of the National Science Foundation
Authorization Act of 2002 (42 U.S.C. 1862n-4): Provided, That
$1,000,000,000 shall be for activities authorized by title II of Public
Law 100-570 for academic research facilities modernization, which may
include shore-side facilities for academic research vessels, of which
$300,000,000 shall be for academic research facilities modernization at
historically Black colleges and universities, Hispanic serving
institutions, Tribal colleges and universities, and other minority
serving institutions: Provided further, That not less than 20 percent
of the funds made available in this section shall be for research-
enabling equipment, facilities, and infrastructure projects located in
a State or territory that is eligible to receive funding from the
Established Program to Stimulate competitive Research as established
under section 113 of the National Science Foundation Authorization Act
of 1988 (42 U.S.C. 1862g).: Provided further, That $25,000,000 shall be
for the Office of the Chief of Research Security Strategy and Policy
for research security activities.
SEC. 90024. NATIONAL SCIENCE FOUNDATION RESEARCH AND DEVELOPMENT.
In addition to amounts otherwise available, there is appropriated
to the National Science Foundation for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $7,550,000,000, to
remain available until September 30, 2031, except that no amounts may
be expended after September 30, 2031, to fund or extend new and
existing research awards, scholarships, and fellowships across all
science, technology, engineering, and mathematics (STEM) and STEM
education disciplines, to fund use-inspired and translational research
and development awards, entrepreneurial education, and technology
transfer activities, to extend existing research awards and
scholarships and fellowships to aid in the recovery from COVID-19
related disruptions, and for related administrative expenses: Provided,
That $400,000,000 shall be available for climate change research,
including relating to wildfires: Provided further, That $700,000,000
shall be available for research and related activities at historically
Black colleges and universities, Tribal colleges and universities,
Hispanic serving institutions, and other minority serving institutions.
SEC. 90025. NATIONAL SCIENCE FOUNDATION OVERSIGHT.
In addition to amounts otherwise available, there is appropriated
to the Office of Inspector General of the National Science Foundation
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $50,000,000, to remain available until September 30,
2031, except that no amounts may be expended after September 30, 2031,
for oversight, investigations, and audits of programs, grants, and
projects carried out by the National Science Foundation using funds
under this title.
SEC. 90026. WAGE RATE REQUIREMENTS.
(a) In General.--Notwithstanding any other provision of law, all
laborers and mechanics employed by contractors and subcontractors on
any project funded directly or assisted in whole or in part by the
Federal Government pursuant to this title shall be paid wages at rates
not less than those prevailing on projects of a similar character in
the locality, as determined by the Secretary of Labor in accordance
with subchapter IV of chapter 31 of title 40, United States Code
(commonly known as the ``Davis-Bacon Act'').
(b) Authority.--With respect to the labor standards specified in
paragraph (1), the Secretary of Labor shall have the authority and
functions set forth in Reorganization Plan Numbered 14 of 1950 (64
Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States
Code.
SEC. 90027. FORCED LABOR PROHIBITION.
None of the funds provided in this title may be used in awarding a
contract, subcontract, grant, or loan to an entity that is listed
pursuant to section 9(b)(3) of the Uyghur Human Rights Policy Act of
2020 (Public Law 116-145).
TITLE X--COMMITTEE ON SMALL BUSINESS
SEC. 100001. DEFINITIONS.
In this title--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively; and
(2) the term ``small business concern'' has the meaning
given under section 3 of the Small Business Act (15 U.S.C.
632).
Subtitle A--Increasing Federal Contracting Opportunities for Small
Businesses
SEC. 100101. VETERAN FEDERAL PROCUREMENT ENTREPRENEURSHIP TRAINING
PROGRAM.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Small Business Administration, out of any
money in the Treasury not otherwise appropriated, $5,000,000 for each
of fiscal years 2022 through 2028 for carrying out subsection (h) of
section 32 of the Small Business Act (15 U.S.C. 657b), as added by this
section. Amounts appropriated by this subsection shall remain available
for 3 fiscal years.
(b) Establishment.--Section 32 of the Small Business Act (15 U.S.C.
657b) is amended by adding at the end the following:
``(h) Veteran Federal Procurement Entrepreneurship Training
Program.--The Administrator, acting through the Associate
Administrator, shall make grants to, or enter into cooperative
agreements with nonprofit entities to operate a Federal procurement
entrepreneurship training program to provide assistance to small
business concerns owned and controlled by veterans regarding how to
increase the likelihood of being awarded contracts with the Federal
Government. A grant or cooperative agreement under this subsection--
``(1) shall be made to or entered into with nonprofit
entities that have a track record of successfully providing
educational and job training services to targeted veteran
populations from diverse locations;
``(2) shall include terms under which the nonprofit
entities may, at the discretion of the Administrator, be
required to match any Federal funds received for the program
with State, local, or private sector funds; and
``(3) shall include terms under which the nonprofit
entities shall use a diverse group of professional service
experts, such as Federal, State, and local contracting experts
and private sector industry experts with first-hand experience
in Federal Government contracting, to provide assistance to
small business concerns owned and controlled by veterans.''.
SEC. 100102. EXPANDING SURETY BOND PROGRAM.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Small Business Administration for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available until September 30, 2031, for
additional capital for the fund established under section 412 of the
Small Business Investment Act of 1958 (15 U.S.C. 694c).
(b) Expanding Surety Bond Program.--Part B of title IV of the Small
Business Investment Act of 1958 (15 U.S.C. 694a et seq.) is amended--
(1) in section 411 (15 U.S.C. 694b)--
(A) in subsection (a)(1)--
(i) in subparagraph (A), by striking
``$6,500,000'' and inserting ``$10,000,000'';
and
(ii) by amending subparagraph (B) to read
as follows:
``(B) The Administrator may guarantee a surety under
subparagraph (A) for a total work order or contract entered
into by a Federal agency in an amount that does not exceed
$20,000,000.''; and
(B) in subsection (e)(2), by striking
``$6,500,000'' and inserting ``the amount described in
subparagraph (A) or (B) of subsection (a)(1), as
applicable''; and
(2) in section 412 (15 U.S.C. 694c)--
(A) in subsection (a), in the third sentence, by
striking ``, excluding administrative expenses,'';
(B) by redesignating subsection (b) as subsection
(c); and
(C) by inserting after subsection (a) the
following:
``(b) Not more than 15 percent of the amount that is in the fund
described in subsection (a) on the first day of each fiscal year may be
obligated during that fiscal year to cover costs incurred by the
Administration in connection with the management and administration of
this part, including costs related to information technology and
systems, personnel, outreach activities, and relevant contracts.''.
SEC. 100103. UPLIFT ACCELERATOR PROGRAM; BUSINESS DEVELOPMENT ACADEMY.
(a) Uplift Accelerator Program.--
(1) Appropriations.--
(A) In general.--In addition to amounts otherwise
available, there is appropriated to the Small Business
Administration for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated,
$1,000,000,000 to remain available until September 30,
2031, to carry out subparagraph (K) of section 7(j)(10)
of the Small Business Act (15 U.S.C. 636(j)(10)), as
added by this subsection; and
(B) Set aside.--Of amounts made available under
subparagraph (A), not more than 15 percent may be used
by the Administrator for administrative expenses and
costs related to monitoring and oversight.
(2) Establishment.--Section 7(j)(10) of the Small Business
Act (15 U.S.C. 636(j)(10)) is amended by adding at the end the
following:
``(K) Uplift accelerator program.--
``(i) Definitions.--In this subparagraph:
``(I) Accelerator.--The term
`accelerator' means an organization--
``(aa) that provides
mentorship and other support to
growing, startup, and newly
established small business
concerns; and
``(bb) offers startup
capital or the opportunity to
raise capital from outside
investors to growing, startup,
and newly established small
business concerns.
``(II) Eligible entity.--The term
`eligible entity' means--
``(aa) a historically black
college or university;
``(bb) an institution of
higher education, as defined in
section 101 of the Higher
Education Act of 1965, which
primarily educates students who
are Black or African American,
Hispanic or Latino, American
Indian, Alaska Native, Asian,
Native Hawaiian, or other
Pacific Islander; or
``(cc) a junior or
community college, as defined
in section 312 of the Higher
Education Act of 1965.
``(III) Eligible small business
concern.--The term `eligible small
business concern' means a small
business concern--
``(aa) located in a
HUBZone, as defined in section
31(b);
``(bb) owned and controlled
by a resident of a low-income
community, as defined in
section 45D(e) of the Internal
Revenue Code of 1986;
``(cc) owned and controlled
by a resident of a low-income
rural community;
``(dd) owned and controlled
by a member of an Indian or
Alaska Native tribe, band,
nation, pueblo, village,
community, component band, or
component reservation,
individually identified
(including parenthetically) in
the most recent list published
pursuant to section 104 of the
Federally Recognized Indian
Tribe List Act of 1994;
``(ee) owned and controlled
by a Native Entity;
``(ff) owned and controlled
by an individual with a
disability, as defined in
section 3 of the Americans with
Disabilities Act of 1990; or
``(gg) otherwise identified
by the Administrator.
``(IV) Historically black college
or university.--The term `historically
black college or university' means a
`part B institution', as defined under
section 322 of the Higher Education Act
of 1965.
``(V) Incubator.--The term
`incubator' means an organization--
``(aa) that provides
mentorship and other support to
growing, startup, and
established small business
concerns; and
``(bb) that may provide a
co-working environment or a
month-to-month lease program.
``(VI) Native entity.--The term
`Native Entity' means--
``(aa) an Indian tribe,
including an Alaska Native
village or Regional or Village
Corporation, as defined in
section 4 of the Indian Self-
Determination and Education
Assistance Act; and
``(bb) a Native Hawaiian
organization, as that term is
defined in section 6207 of the
Elementary and Secondary
Education Act of 1965.
``(ii) Use of funds.--The Administrator is
authorized to establish a competitive grant
program to make grants to eligible entities to
establish accelerators or incubators to support
eligible small business concerns in
developing--
``(I) business readiness, including
by providing services such as
accounting, organization, human
resources, and legal assistance;
``(II) growth readiness, including
assistance to build past performance
and relationships with prime
contractors;
``(III) readiness to submit bids
for prime contracts, including
assistance in developing skills,
conducting market research, and
drafting capability statements and
proposals; or
``(IV) global readiness, including
assistance in establishing long-term,
additional revenue streams outside of
the United States.
``(iii) Acquisition authorities.--The
Administrator shall identify acquisition
authorities under which eligible small business
concerns assisted under this subparagraph may
enter into contracts or agreements with Federal
agencies.
``(iv) Amount.--During the period beginning
on the date of the enactment of this
subparagraph and ending not later than 10 years
after such date, the Administrator shall award
not more than an aggregate total of
$1,000,000,000 in grants to eligible entities
under this subparagraph.''.
(b) Business Development Academy.--
(1) Appropriations.--
(A) In general.--In addition to amounts otherwise
available, there is appropriated to the Small Business
Administration for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated,
$725,000,000 to remain available until September 30,
2031, to carry out subparagraph (L) of section 7(j)(10)
of the Small Business Act (15 U.S.C. 636(j)(10)), as
added by this subsection.
(B) Set aside.--Of amounts made available under
subparagraph (A), not more than 15 percent may be used
by the Administrator for administrative expenses and
costs related to monitoring and oversight.
(2) Establishment.--Section 7(j)(10) of the Small Business
Act (15 U.S.C. 636(j)(10)), as amended by subsection (a), is
further amended by adding at the end the following:
``(L) Business development academy.--
``(i) Definition of eligible entity.--In
this paragraph, the term `eligible entity' has
the meaning given in subparagraph (K)(i).
``(ii) Use of funds.--The Administrator is
authorized to establish a competitive grant
program to make grants to eligible entities to
support Program Participants.
``(iii) Duties of eligible entities.--An
eligible entity that receives a grant under
this subparagraph shall use such grant to--
``(I) develop and establish a
foundational 12-month executive
mentoring and training program for
small business concerns described in
clause (ii);
``(II) recruit and enroll
participants in the program described
in subclause (I), including by
providing incentives for participation;
``(III) develop certification
programs for eligible entities based on
proven best practices of the
Administration; and
``(IV) conduct research into the
effectiveness of the program described
in clause (iv)(I).
``(iv) Amount.--During the period beginning
on the date of the enactment of this
subparagraph and ending not later than 10 years
after such date, the Administrator shall award
not more than an aggregate total of
$725,000,000 in grants to eligible entities
under this subparagraph.''.
SEC. 100104. PATHWAY TO PRIME GRANT PROGRAM.
(a) Appropriations.--
(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Small Business
Administration for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, to remain available until
September 30, 2031--
(A) $75,000,000 to carry out subsection (b)(1) of
section 49 of the Small Business Act, as added by
subsection (b); and
(B) $450,000,000 to carry out subsection (b)(2) of
section 49 of the Small Business Act, as added by
subsection (b).
(2) Set aside.--Of the amount made available to carry out
this section for any fiscal year, not more than 15 percent may
be used by the Administrator for administrative expenses.
(b) Establishment.--The Small Business Act (15 U.S.C. 631 et seq.)
is amended--
(1) by redesignating section 49 (15 U.S.C. 631 note) as
section 55; and
(2) by inserting after section 48 the following:
``SEC. 49. PATHWAY TO PRIME GRANT PROGRAM.
``(a) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) a historically black college or university;
or
``(B) an institution of higher education, as
defined in section 101 of the Higher Education Act of
1965, which primarily educates students who are Black
or African American, Hispanic or Latino, American
Indian, Alaska Native, Asian, Native Hawaiian, or other
Pacific Islander.
``(2) Historically black college or university.--The term
`historically black college or university' has the meaning
given the term `part B institution' under section 322 of the
Higher Education Act of 1965.
``(3) Pathway firm.--The term `pathway firm' means a small
business concern that is--
``(A) a subcontractor of the Federal Government;
``(B) a contractor or subcontractor of a State,
local, or tribal government, including such contractor
or subcontractor for a project funded by the CARES Act
(Public Law 116-136), the American Rescue Plan Act of
2021 (Public Law 117-2), or an Act providing funds for
infrastructure that is enacted during the 117th
Congress (as determined by the Administrator).
``(b) Establishment.--The Administrator shall establish a program
to assist pathway firms to become prime contractors of the Federal
Government by--
``(1) making competitive grants to eligible entities to
establish a national contracting and subcontracting network and
database of pathway firms and grantees under paragraph (2) to
track and connect pathway firms with Federal prime contracting
opportunities based on the record of the pathway firm in
competing for and obtaining--
``(A) prime contracts or contracts with Federal,
State, local, or tribal governments;
``(B) subcontracts with Federal prime contractors;
and
``(C) subcontracts from State, local, or tribal
governments participating in projects funded by the
CARES Act (Public Law 116-136), the American Rescue
Plan Act of 2021 (Public Law 117-2), or an Act
providing funds for infrastructure that is enacted
during the 117th Congress (as determined by the
Administrator; and
``(2) making competitive grants to not fewer than 20 State
or local governments or federally recognized Tribal governments
to--
``(A) participate in the national small business
contracting network established in paragraph (1); and
``(B) assist pathway firms within the geographic
regions served by those governments.
``(c) Use of Funds.--A recipient of a grant made under this section
shall--
``(1) provide resources to enable pathway firms to gain the
experience and capabilities necessary to compete for and obtain
prime contracts;
``(2) facilitate engagement between pathway firms and
Federal, State, local, or tribal governments;
``(3) work with the Administration to ensure that prime
contractors with subcontracting plans under section 8(d) meet
the requirements of those plans;
``(4) work with the Administration to maximize
opportunities for small business concerns to obtaining
subcontracts from State, local, or tribal governments
participating in projects funded by the CARES Act (Public Law
116-136), the American Rescue Plan Act of 2021 (Public Law 117-
2), or an Act providing funds for infrastructure that is
enacted during the 117th Congress (as determined by the
Administrator); and
``(5) make publicly available data to advocate for best
practices and policies that promote small business concerns as
prime contractors of the Federal Government.''.
Subtitle B--Empowering Small Business Creation and Expansion in
Underrepresented Communities
SEC. 100201. GRANTS FOR BUSINESS INCUBATORS.
(a) Appropriations.--
(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Small Business
Administration for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $1,000,000,000, to remain
available until September 30, 2031, for carrying out section 50
of the Small Business Act, as added by subsection (b).
(2) Set aside.--Of the amounts made available under this
subsection for a fiscal year, not more than 15 percent shall be
available for administrative expenses and costs related to
monitoring and oversight.
(b) Establishment.--The Small Business Act (15 U.S.C. 631 et seq.)
is amended by inserting after section 49, as added by section 10104,
the following:
``SEC. 50. GRANTS FOR BUSINESS INCUBATORS.
``(a) Definitions.--In this section:
``(1) Business incubator.--The term `business incubator'
means an organization that--
``(A) provides resources, which may include
physical workspace and facilities, to startups and
established small business concerns;
``(B) is designed to accelerate the growth and
success of small business concerns through a variety of
business support resources and services, including--
``(i) access to capital, business
education, and counseling;
``(ii) networking opportunities;
``(iii) mentorship opportunities; and
``(iv) other services intended to aid in
developing a business.
``(2) Economic development organization.--The term
`economic development organization'--
``(A) means a regional, State, tribal, or local
private nonprofit organization established for purposes
of promoting or otherwise facilitating economic
development; and
``(B) includes community financial institutions, as
defined in section 7(a)(36)(A).
``(3) Eligible applicant.--The term `eligible applicant'
means--
``(A) an economic development organization;
``(B) an eligible entity, as defined in section
7(j)(10)(K)(i)(II);
``(C) an SBA partner organization; or
``(D) any entity that provides support to startups
and small business concerns, as determined by the
Administrator.
``(4) Eligible small business concern.--The term `eligible
small business concern' means a business concern that--
``(A) is organized or incorporated in the United
States;
``(B) is operating primarily in the United States;
``(C) meets--
``(i) the applicable industry-based size
standard established under section 3; or
``(ii) the alternate size standard
applicable to the program under section 7(a) or
the loan programs under title V of the Small
Business Investment Act of 1958;
``(D) is in the planning stages or has been in
business for not more than 5 years as of the date on
which assistance under this section commences; and
``(E) is--
``(i) owned and controlled by 1 or more
members of an underrepresented community; or
``(ii) a Native Entity, as defined in
section 7(j)(10)(K)(i).
``(5) Member of an underrepresented community.--The term
`member of an underrepresented community' means an individual
who is--
``(A) a resident of--
``(i) a low-income community, as defined in
section 45D(e) of the Internal Revenue Code of
1986;
``(ii) a low-income rural community; or
``(iii) a HUBZone, as defined in section
31(b);
``(B) a member of an Indian or Alaska Native tribe,
band, nation, pueblo, village, community, component
band, or component reservation, individually identified
(including parenthetically) in the most recent list
published pursuant to section 104 of the Federally
Recognized Indian Tribe List Act of 1994;
``(C) an individual with a disability, as defined
in section 3 of the Americans with Disabilities Act of
1990;
``(D) a veteran;
``(E) an individual who completed a term of
imprisonment; or
``(F) otherwise identified by the Administrator.
``(6) SBA partner organization.--The term `SBA partner
organization' means any organization awarded financial
assistance in the form of a grant, cooperative agreement, or
contract for the purpose of conducting a public project funded,
either in whole or in part, under a program of the
Administration.
``(b) Authority.--The Administrator may provide financial
assistance on a competitive basis in the form of a grant, prize,
cooperative agreement, or contract for an eligible applicant to provide
the services of a business incubator to eligible small business
concerns.
``(c) Use of Funds.--An eligible applicant that receives assistance
under this section shall support areas that serve members of an
underrepresented community and provide services that shall--
``(1) be carried out in such areas as to provide maximum
accessibility and benefits to the eligible small business
concerns that the project is intended to serve; and
``(2) not impose or otherwise collect a fee or other
compensation from eligible small business concerns in
connection with such services.
``(d) One or More Business Incubators.--An eligible applicant that
receives financial assistance under this section may share such
assistance among one or more business incubators to expand access to
resources, information, and best practices.
``(e) Award Amount.--An award of financial assistance under this
section shall be for not more than $1,250,000 for each fiscal year for
which the award is granted.
``(f) Penalties for Failure to Abide by Terms or Conditions of
Award.--At the discretion of the Administrator and in addition to any
other civil or criminal consequences, the Administrator shall withhold
payments to an eligible applicant or order the eligible applicant to
return any assistance provided under this section for failure to abide
by the terms and conditions of such assistance.''.
SEC. 100202. OFFICE OF NATIVE AMERICAN AFFAIRS.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Small Business Administration, out of any
money in the Treasury not otherwise appropriated, $2,000,000 for each
of fiscal years 2022 through 2031 for carrying out section 51 of the
Small Business Act, as added by subsection (b). Amounts appropriated by
this subsection shall remain available until September 30, 2031.
(b) Establishment.--The Small Business Act (15 U.S.C. 631 et seq.)
is amended by inserting after section 50, as added by section 10201 of
this title, the following:
``SEC. 51. OFFICE OF NATIVE AMERICAN AFFAIRS.
``(a) Definitions.--In this section:
``(1) Indian tribe.--The term `Indian Tribe' has the
meaning given in section 4 of the Indian Self-Determination and
Education Assistance Act.
``(2) Native american.--The term `Native American' means a
member of an Indian Tribe.
``(3) Native hawaiian organization.--The term `Native
Hawaiian Organization' has the meaning given in section 6207 of
the Elementary and Secondary Education Act of 1965.
``(4) Resource partners.--The term `resource partners'
means--
``(A) small business development centers;
``(B) women's business centers described in section
29;
``(C) chapters of the Service Corps of Retired
Executives established under section 8(b)(1)(B); and
``(D) Veteran Business Outreach Centers described
in section 32.
``(b) Establishment.--There is established in the Administration an
Office of Native American Affairs, in this section referred to as the
`Office', which shall provide entrepreneurship outreach and development
assistance to Native Americans, Native Hawaiian Organizations and
members thereof, and Indian Tribes, through the Native American
Outreach Program established under subsection (c).
``(c) Native American Outreach Program.--
``(1) Establishment.--The Administrator shall establish and
administer a Native American Outreach Program within the
Office--
``(A) to ensure that small business concerns owned
and controlled by Native Americans, Native Hawaiian
Organizations, and Indian Tribes, and Native American
entrepreneurs have access to programs and services of
the Administration;
``(B) to provide information to State, local, and
tribal governments and other interested persons about
Federal assistance available to small business concerns
owned and controlled by Native Americans, Native
Hawaiian Organizations, and Indian Tribes, and Native
American entrepreneurs; and
``(C) to ensure access to in-person and virtual
counseling and training services to small business
concerns owned and controlled by Native Americans,
Native Hawaiian Organizations, and Indian Tribes, and
Native American entrepreneurs.
``(2) Services.--The services described in paragraph (1)
shall include--
``(A) financial education on applying for and
securing credit, loan guarantees, surety bonds, and
investment capital, managing financial operations, and
preparing and presenting financial statements and
business plans;
``(B) education on management of a small business
concern, including planning, organizing, staffing, and
marketing;
``(C) identifying domestic and international market
opportunities; and
``(D) implementing economic and business
development strategies to improve long-term job
growth.''.
SEC. 100203. OFFICE OF RURAL AFFAIRS.
(a) Appropriations.--
(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Small Business
Administration, out of any money in the Treasury not otherwise
appropriated, $2,000,000 for each of fiscal years 2022 through
2031 for carrying out this section. Amounts appropriated by
this subsection shall remain available until September 30,
2031.
(2) Set aside.--Of the amounts made available under this
subsection for a fiscal year, not more than 15 percent shall be
available for administrative expenses related to carrying out
this section.
(b) Office of Rural Affairs.--Section 26 of the Small Business Act
(15 U.S.C. 653) is amended by adding at the end the following:
``(d) Rural Small Business Conferences.--
``(1) In general.--The Office shall administer 1 or more
annual Rural Small Business Conferences, to be held in various
regions of the United States. The purpose of such Conferences
shall be to--
``(A) promote policies and programs of the
Administration specific to small business concerns
located in rural areas, and make publicly available
information about such policies and programs;
``(B) coordinate with all offices of the
Administration, resource partners, lenders, and other
interested persons to ensure that the needs of small
business concerns located in rural area are being met;
and
``(C) analyze data on the effectiveness of programs
of the Administration that benefit small business
concerns located in rural areas.''.
SEC. 100204. OFFICE OF EMERGING MARKETS.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Small Business Administration, out of any
money in the Treasury not otherwise appropriated, $2,000,000 for each
of fiscal years 2022 through 2031 for carrying out subsection (o) of
section 7 of the Small Business Act (15 U.S.C. 636), as added by
subsection (b). Amounts appropriated by this subsection shall remain
available until September 30, 2031.
(b) Establishment.--Section 7 of the Small Business Act (15 U.S.C.
636) is amended by adding at the end the following:
``(o) Office of Emerging Markets.--
``(1) Definitions.--In this subsection--
``(A) the term `Director' means the Director of the
Office of Emerging Markets;
``(B) the term `microloan program' means the
program described in subsection (m);
``(C) the term `small business concern in an
emerging market' means a small business concern--
``(i) that is located in--
``(I) a low-income or moderate-
income area for purposes of the
Community Development Block Grant
Program under title I of the Housing
and Community Development Act of 1974;
or
``(II) a HUBZone, as that term is
defined in section 31(b);
``(ii) that is growing, newly established,
or a startup;
``(iii) owned and controlled by veterans;
``(iv) owned and controlled by individuals
with a disability, as defined in section 3 of
the Americans with Disabilities Act of 1990; or
``(v) owned and controlled by other
individuals or groups identified by the
Administrator.
``(2) Establishment.--There is established within the
Office of Capital Access of the Administration an office to be
known as the `Office of Emerging Markets', which shall be
responsible for the planning, coordination, implementation,
evaluation, and improvement of the efforts of the Administrator
to enhance the economic well-being of small business concerns
in an emerging market.
``(3) Administration.--The Office of Emerging Markets shall
be administered by a Director, who shall--
``(A) create and implement strategies and programs
that provide an integrated approach to the development
of small business concerns in an emerging market;
``(B) review the effectiveness and impact of access
to capital programs (including the microloan program)
of the Administration and recommend policies on such
programs with respect to small business concerns in an
emerging market;
``(C) coordinate with the Office of Entrepreneurial
Development and the Office of Veterans Business
Development of the Administration to establish
partnerships to advance the goal of improving the
economic success of small business concerns in an
emerging market;
``(D) consult with the Associate Administrator of
the Office of Field Operations; and
``(E) coordinate the activities of--
``(i) the SBIC Working Group established
under section 10404 of the Act to provide for
reconciliation pursuant to title II of S. Con.
Res. 14;
``(ii) the Office of Native American
Affairs established under section 51; and
``(iii) the Office of Rural Affairs
established under section 26.''.
SEC. 100205. STATE TRADE EXPANSION PROGRAM.
In addition to amounts otherwise available, there is appropriated
to the Small Business Administration, out of any money in the Treasury
not otherwise appropriated, $30,000,000 for each of fiscal years 2022
through 2025 for carrying out section 22(l) of the Small Business Act
(15 U.S.C. 649(l)). Amounts appropriated by this subsection shall
remain available for 3 fiscal years.
Subtitle C--Encouraging Small Businesses to Fully Engage in the
Innovation Economy
SEC. 100301. GROWTH ACCELERATOR COMPETITION.
(a) Appropriations.--
(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Small Business
Administration for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $400,000,000, to remain
available until September 30, 2031, for carrying out section 52
of the Small Business Act, as added by subsection (b).
(2) Set aside.--Of the amounts made available under this
subsection for a fiscal year, not more than 5 percent shall be
available for administrative expenses related to carrying out
this section.
(b) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is
amended by inserting after section 51, as added by section 10202 of
this title, the following:
``SEC. 52. GROWTH ACCELERATOR COMPETITION.
``(a) Definitions.--In this section:
``(1) Award.--The term `award' means a grant, prize,
contract, cooperative agreement, or other cash or cash
equivalent (as determined by the Administrator).
``(2) Disability.--The term `disability' has the meaning
given the term in section 3 of the Americans with Disabilities
Act of 1990.
``(3) Eligible entity.--The term `eligible entity' means--
``(A) an eligible entity, as defined in section 49;
or
``(B) an organization that is a growth accelerator
located in the United States.
``(4) Growth accelerator.--The term `growth accelerator'
means an organization that--
``(A) supports new small business concerns that
have a focus on technology, research, and development;
``(B) frequently provides, but is not exclusively
designed to provide, seed investment in exchange for a
small amount of equity;
``(C) works with a new small business concern for a
predetermined amount of time;
``(D) provides mentorship and instruction to small
business concerns to scale businesses; or
``(E) offers startup capital or the opportunity to
raise capital from outside investors.
``(5) New small business concern.--The term `new small
business concern' means a small business concern that has been
in operation for not more than 5 years.
``(b) Establishment.--The Administrator shall make competitive
awards of not less than $100,000 to eligible entities to accelerate the
growth of new small business concerns by providing--
``(1) assistance to small business concerns with accessing
capital and finding mentors and networking opportunities; and
``(2) advice to small business concerns, including advising
on market analysis, company strategy, revenue growth,
commercialization, and securing funding.
``(c) Use of Funds.--An award under this section--
``(1) may be used by an eligible entity for construction
costs, acquisition of physical workspace and facilities, and
programmatic purposes to benefit new small business concerns;
and
``(2) may not be used by an eligible entity to provide
capital to new small business concerns directly or through the
subaward of funds.
``(d) Application.--In making awards under this section, the
Administrator shall establish an application process and selection
criteria, which shall include--
``(1) assurances that the eligible entity will use such
award to provide assistance for not less than 5 new small
business concerns each year;
``(2) if located within 20 miles of a minority serving
institution, proof of a referral or programmatic relationship
between the eligible entity and such institution;
``(3) an assessment of the need for additional assistance
for new small business concerns in the geographic area to be
served by the eligible entity; and
``(4) other criteria, as determined by the Administrator.
``(e) Penalties for Failure to Abide by Terms or Conditions of
Award.--At the discretion of the Administrator and in addition to any
other civil or criminal consequences, the Administrator shall withhold
payments to an eligible entity or order the eligible entity to return
an award made under this section for failure to abide by the terms and
conditions of the award.''.
SEC. 100302. BUILDING A NATIONAL INNOVATION SUPPORT ECOSYSTEM NETWORK.
(a) Appropriations.--
(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Small Business
Administration for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, to remain available until
September 30, 2031, for carrying out this section--
(A) $525,000,000 to carry out subsection (c)(1) of
this section; and
(B) $150,000,000 to carry out subsection (c)(2) of
this section.
(2) Set aside.--Of the amounts made available under
paragraph (1)(A) of this subsection for a fiscal year, not more
than 5 percent shall be available for administrative expenses
related to carrying out this section.
(b) Definitions.--In this section:
(1) Business incubator.--The term ``business incubator''
means an organization that--
(A) provides resources, which may include physical
workspace and facilities, to startups and established
small business concerns; and
(B) is designed to accelerate the growth and
success of businesses through a variety of business
support resources and services, including--
(i) access to capital, business education,
and counseling;
(ii) networking opportunities;
(iii) mentorship opportunities; and
(iv) other services intended to aid in
developing a business.
(2) Economic development organization.--The term ``economic
development organization'' means a regional, State, tribal, or
local organization established for purposes of promoting or
otherwise facilitating economic development.
(3) Eligible applicant.--The term ``eligible applicant''
means--
(A) an economic development organization;
(B) an eligible entity, as defined in section
7(j)(10)(K)(i) of the Small Business Act, as added by
section 100103;
(C) a business incubator;
(D) a growth accelerator;
(E) an SBA partner organization, as defined in
section 50 of the Small Business Act (as added by
section 10201 of this title); or
(F) any combination or collaboration of the
entities described in subparagraphs (A) through (E).
(4) Eligible business.--The term ``eligible business''
means any innovative startup seeking to--
(A) participate in the SBIR and STTR programs
described in section 9 of the Small Business Act (15
U.S.C. 638); or
(B) otherwise develop, through research and
development, or commercialize advanced technologies.
(5) Growth accelerator.--The term ``growth accelerator''
has the meaning given the term in section 52 of the Small
Business Act, as added by section 10301 of this title.
(6) Innovative startup.--The term ``innovative startup''
means a science, technology, engineering, and math entrepreneur
or small business concern that--
(A) was founded or commenced a trade or business
not earlier than 5 years before receiving assistance
under this section; and
(B) has a primary focus on the development or
commercialization of advanced technologies.
(7) Member of an underrepresented community.--The term
``member of an underrepresented community'' has the meaning
given in section 50 of the Small Business Act, as added by
section 10201 of this title.
(c) Establishment.--The Administrator shall--
(1) make grants or award prizes to, or enter into contracts
or cooperative agreements with, eligible applicants to address
the training, proposal development, mentoring, partnering,
coordinating, networking, customer discovery, and business
incubator and growth accelerator needs of eligible businesses
to expand and accelerate the growth of eligible businesses; and
(2) facilitate fellowships and internships in the fields of
science, technology, engineering, and mathematics, prioritizing
members of an underrepresented community through partnerships
with or supplemental grants or awards to provide opportunities
at the undergraduate, graduate, and postdoctoral levels.
Subtitle D--Increasing Equity Opportunities for Small Manufacturers
SEC. 100401. INCREASING EQUITY INVESTMENT BY THE SBIC PROGRAM.
(a) Venture Small Business Investment Company Facility.--
(1) Appropriations.--In addition to amounts otherwise
available, there is appropriated to the Administration for
fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, to remain available until September 30,
2031, $9,500,000,000, to be deposited into the facility
established under section 321 of the Small Business Investment
Act of 1958, as added by paragraph (2).
(2) Establishment.--The Small Business Investment Act of
1958 (15 U.S.C. 661 et seq.) is amended--
(A) in section 103 (15 U.S.C. 662)--
(i) in paragraph (9)(B)(iii)--
(I) in subclause (II), by striking
``and'' at the end;
(II) in subclause (III), by adding
``and'' at the end; and
(III) by adding at the end the
following:
``(IV) funds obtained from any
financial institution identified under
section 302(b);''; and
(ii) in paragraph (10)--
(I) in subparagraph (A), by adding
``and'' at the end; and
(II) by striking subparagraphs (B)
and (C) and inserting the following:
``(B) partnership interests purchased by the
Administration, as described in section 321.'';
(B) in section 302(a)(1) (15 U.S.C. 682(a)(1))--
(i) in subparagraph (A), by striking ``or''
at the end;
(ii) in subparagraph (B), by striking the
period at the end and inserting ``; or''; and
(iii) by adding at the end the following:
``(C) $20,000,000, adjusted every 5 years for
inflation, with respect to each licensee participating
in the facility under section 321.'';
(C) in section 303(b)(2)(B) (15 U.S.C.
683(b)(2)(B)), by striking ``$350,000,000'' and
inserting ``$400,000,000''; and
(D) in section 304--
``(e) Notwithstanding section 310(c)(6), a licensee under section
321 may, subject to regulations to be issued by the Administration,
invest equity capital in investment funds which--
``(1) are majority controlled by members of an
underrepresented community (as defined in section 50 of the
Small Business Act);
``(2) receive annual assistance provided by such licensee;
or
``(3) meet additional criteria as determined by the
Administration.''; and
(E) by adding at the end the following:
``SEC. 321. VENTURE SMALL BUSINESS INVESTMENT COMPANY FACILITY.
``(a) Definitions.--In this section:
``(1) Covered investments.--The term `covered investments'
means investments in--
``(A) infrastructure, including--
``(i) roads, bridges, and mass transit;
``(ii) water supply and sewer;
``(iii) the electrical grid;
``(iv) broadband and telecommunications;
``(v) clean energy; or
``(vi) child care and elder care;
``(B) manufacturing;
``(C) low-income communities, as that term is
defined in section 45D(e) of the Internal Revenue Code
of 1986;
``(D) HUBZones, as defined in section 31(b) of the
Small Business Act;
``(E) small business concerns owned and controlled
by a member of an Indian tribe individually identified
(including parenthetically) in the most recent list
published pursuant to section 104 of the Federally
Recognized Indian Tribe List Act of 1994;
``(F) small business concerns owned and controlled
by an individual with a disability, as defined in
section 3 of the Americans with Disabilities Act of
1990;
``(G) small business concerns owned and controlled
by a veteran; or
``(H) small business concerns identified by the
Administrator as critical.
``(2) Facility.--The term `facility' means the facility
established under subsection (b).
``(3) Partnership interest.--The term `partnership
interest' means a limited partnership equity interest in a
licensee purchased and held by the Administration under this
section.
``(4) Venture small business investment company.--The term
`venture small business investment company' means a private
equity fund--
``(A) that makes early-stage venture capital
investments in small business concerns approved to
participate in the facility by the Administration; and
``(B) for which 75 percent of total financings
shall be invested in covered investments, of which not
more than 33 percent of such investments are in small
business concerns in infrastructure or manufacturing.
``(b) Establishment and Administration of Facility.--
``(1) In general.--The Administrator shall establish and
carry out a facility to purchase partnership interests from
venture small business investment companies.
``(2) Administration.--The facility shall be administered
by the Administrator acting through the Associate Administrator
described in section 201.
``(3) Use of amounts.--The Administrator shall use amounts
deposited in the facility to purchase partnership interests
from venture small business investment companies.
``(4) Bifurcation.--Losses to the Administration under this
section--
``(A) shall not be offset by fees or any other
charges on licenses not authorized by the
Administration;
``(B) shall be borne solely by the facility; and
``(C) shall not be included in the calculation of
the subsidy rate under section 303(j).
``(c) Licensing Matters.--
``(1) In general.--A venture small business investment
company shall be licensed under section 301(c) and approved by
the Administrator to issue partnership interests.
``(2) Consideration.--In issuing a license under paragraph
(1), the Administrator shall take into consideration investment
risk through criteria set by the Administrator.
``(d) Required Investments.--
``(1) In general.--Except as described in paragraph (2), a
venture small business investment company shall invest solely
in small business concerns.
``(2) Exception and waiver.--Notwithstanding section
310(c)(6) and subject to rules issued by the Administrator, a
venture small business investment company may invest equity
capital in venture capital funds if--
``(A) such venture capital funds are majority
controlled by underrepresented individuals;
``(B) not less than 50 percent of total capital of
each such venture capital fund is invested in covered
investments; and
``(C) the venture small business investment company
provides annual assistance to the venture capital fund.
``(e) Partnership Interests.--
``(1) In general.--The Administrator may, out of amounts
available in the facility, purchase partnership interests as
described in this subsection.
``(2) Issuance and purchase of partnership interests.--
``(A) In general.--The Administrator may purchase
venture equity securities issued by a venture small
business investment company in an amount that does not
exceed the lesser of 100 percent of the private capital
of the venture small business investment company or a
lesser amount to be determined by the Administrator.
``(3) Partnership interest terms.--A partnership interest
purchased by the Administrator from a venture small business
investment company under this subsection shall be subject to
such restrictions and limitations as the Administrator may
determine.''.
(b) Emerging Managers Program.--
(1) Appropriations.--In addition to amounts otherwise
available, there is appropriated to the Small Business
Administration for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $20,000,000, to remain
available until September 30, 2031, for carrying out this
subsection.
(2) Establishment.--The Small Business Investment Act of
1958 (15 U.S.C. 661 et seq.), as amended by subsection (a), is
further amended by adding at the end the following:
``SEC. 322. EMERGING MANAGERS PROGRAM.
``(a) Definitions.--In this section:
``(1) Covered investments.--The term `covered investments'
has the meaning given in section 321.
``(2) Emerging manager company.--The term `emerging manager
company' means an investment management firm that is focused on
investing private equity that meets not less than 2 of the
following criteria:
``(A) The partners of the firm have--
``(i) an investment track record of less
than 10 years of combined investment
experience; or
``(ii) a documented record of successful
business experience.
``(B) The firm has a focus on underserved markets.
``(C) The firm is not less than 50 percent owned,
managed, or controlled by members of an
underrepresented community (as defined in section 50 of
the Small Business Act).
``(b) Establishment.--The Administrator shall establish an emerging
managers program pursuant to which managers with substantial experience
in operating small business investment companies may enter into a
written agreement approved by the Administrator to provide guidance and
assistance to an applicant for a license for a small business
investment company that is to be managed by an emerging manager
company. The manager with substantial experience may hold a minority
financial interest in the small business investment company that is to
be managed by an emerging manager company.
``(c) Licensing.--An applicant described in subsection (b) shall
apply with for a license under section 301(c) and shall--
``(1) have private capital not to exceed $100,000,000;
``(2) be managed by not less than two individuals;
``(3) be a second generation fund or earlier; and
``(4) focus its investment strategy on covered investments.
``(d) Waiver of Maximum Leverage.--The approval of a written
agreement under subsection (b) by the Administrator shall operate as a
waiver of the requirements of section 303(b)(2)(B) to the extent that
such section would otherwise apply.
``(e) Increased Leverage Maximum.--An existing small business
investment company that enters into a written agreement under
subsection (b) that is approved by the Administrator may increase the
maximum leverage cap of the company under section 303(b)(2)--
``(1) under subparagraph (A) of such section, with respect
to a single license, by not more than $17,500,000; and
``(2) under subparagraph (B) of such section, with respect
to multiple licenses under common control, by not more than
$35,000,000.''.
SEC. 100402. MICROCAP SMALL BUSINESS INVESTMENT COMPANY LICENSE.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Administration for fiscal year 2022, out
of amounts in the Treasury not otherwise appropriated, $40,000,000, to
remain available until September 30, 2031, to carry out paragraph (5)
of section 301(c) of the Small Business Investment Act of 1958 (15
U.S.C. 681(c)), as added by subsection (b).
(b) MicroCap Small Business Investment Company License.--Section
301(c) of the Small Business Investment Act of 1958 (15 U.S.C. 681(c))
is amended by adding at the end the following:
``(5) Microcap small business investment company license.--
``(A) In general.--The Administrator may issue a
number of licenses under this subsection to
applicants--
``(i) that do not satisfy the qualification
requirements under paragraph (3)(A)(ii) to the
extent that such requirements relate to
investment experience and track record,
including any such requirements further set
forth in section 107.305 of title 13, Code of
Federal Regulations, or any successor
regulation;
``(ii) that would otherwise be issued a
license under this subsection, except that the
management of the applicant does not satisfy
the requirements under paragraph (3)(A)(ii) to
the extent that such requirements relate to
investment experience and track record,
including any such requirements further set
forth in section 107.305 of title 13, Code of
Federal Regulations, or any successor
regulation;
``(iii) for which the fund managers have--
``(I) a documented record of
successful business experience;
``(II) a record of business
management success; or
``(III) knowledge in the particular
industry or business for which the
applicant is pursuing an investment
strategy; and
``(iv) that have demonstrated appropriate
qualifications for the license, based on
factors determined by the Administrator.
``(B) Required investments.--The licensee under
this paragraph shall invest not less than 50 percent of
the total financings of such licensee in covered
investments (as defined in section 321), of which not
more than 33 percent of such investments are in small
business concerns in infrastructure or manufacturing.
``(C) Timing for issuance of license.--The
Administrator shall establish policies to ensure the
timely disposition and issuance of licenses under this
paragraph.
``(D) Leverage.--A company licensed pursuant to
this paragraph shall--
``(i) not be eligible to receive leverage
in an amount that is more than $50,000,000; and
``(ii) be able to access leverage in an
amount that is not more than 200 percent of the
private capital of the applicant.
``(E) Investment committee.--If a company licensed
pursuant to this paragraph has investment committee
members or control persons who are principals approved
by the Administration or control persons of licensed
small business investment companies not licensed under
this paragraph, such licensee or licensees shall not be
deemed to be under common control with the company
licensed pursuant to this paragraph solely for the
purpose of section 303(b)(2)(B).
``(F) Fees.--In addition to the fees authorized
under sections 301(e) and 310(b), the Administration
may prescribe fees to be paid by each company
designated to operate under this paragraph.''.
SEC. 100403. FUNDING FOR SBIC OUTREACH AND EDUCATION.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Small Business Administration for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$2,500,000, to remain available until September 30, 2031, for carrying
out this section.
(b) Outreach and Education.--The Administrator shall develop and
implement a program to promote to, conduct outreach to, and educate
prospective licensees on the licensing procedures and other programs of
small business investment companies under title III of the Small
Business Investment Act of 1958 (15 U.S.C. 681 et seq.).
SEC. 100404. SBIC WORKING GROUP.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Small Business Administration for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$2,000,000, to remain available until September 30, 2031, to carry out
this section.
(b) Definitions.--In this section--
(1) the term ``covered Members'' means the Chair and
Ranking Member of--
(A) the Committee on Small Business and
Entrepreneurship of the Senate; and
(B) the Committee on Small Business of the House of
Representatives;
(2) the terms ``licensee'', ``small business investment
company'', and ``underlicensed State'' have the meanings given
those terms, respectively, in section 103 of the Small Business
Investment Act of 1958 (15 U.S.C. 662);
(3) the term ``low-income community'' has the meaning given
the term in section 45D(e) of the Internal Revenue Code of
1986;
(4) the term ``member of an underrepresented community''
has the meaning given in section 50 of the Small Business Act,
as added by section 10201 of this title.
(5) the term ``underfinanced State'' means a State that has
below median financing, as determined by the Administrator; and
(6) the term ``underserved community'' means--
(A) a HUBZone, as defined in section 31(b) of the
Small Business Act (15 U.S.C. 657a(b));
(B) a low-income community; or
(C) a low-income rural community.
(c) Establishment.--Not later than 90 days after the date on which
the covered Members are required to submit to the Administrator a
notification that the individuals selected by the covered Members under
paragraph (1) have accepted those assignments, the Administrator shall
establish a small business investment company Working Group (referred
to in this section as the ``Working Group''), which shall--
(1) consist of--
(A) 4 representatives--
(i) among general partners of licensees
that have a demonstrated record of investing
in--
(I) low-income communities;
(II) businesses primarily engaged
in research and development;
(III) manufacturers;
(IV) businesses primarily owned or
controlled by individuals in
underserved communities before
receiving capital from the licensee;
and
(V) low-income rural communities;
and
(ii) of whom--
(I) 1 shall be selected by the
Chair of the Committee on Small
Business and Entrepreneurship of the
Senate;
(II) 1 shall be selected by the
Ranking Member of the Committee on
Small Business and Entrepreneurship of
the Senate;
(III) 1 shall be selected by the
Chair of the Committee on Small
Business of the House of
Representatives; and
(IV) 1 shall be selected by the
Ranking Member of the Committee on
Small Business of the House of
Representatives;
(B) 4 representatives--
(i) from licensees, of whom 1 shall be an
owner of a small business investment company or
fund manager that is located in--
(I) a low-income community;
(II) an underserved community;
(III) a low-income rural community;
or
(IV) an underfinanced State; and
(ii) of whom--
(I) 1 shall be selected by the
Chair of the Committee on Small
Business and Entrepreneurship of the
Senate;
(II) 1 shall be selected by the
Ranking Member of the Committee on
Small Business and Entrepreneurship of
the Senate;
(III) 1 shall be selected by the
Chair of the Committee on Small
Business of the House of
Representatives; and
(IV) 1 shall be selected by the
Ranking Member of the Committee on
Small Business of the House of
Representatives;
(C) the Associate Administrator for the Office of
Investment and Innovation of the Administration, who
shall--
(i) serve as the Chair of the Working
Group; and
(ii) select not more than 4 additional
representatives from the Office of Investment
and Innovation of the Administration to serve
as representatives of the Working Group; and
(D) 4 representatives from the investment industry
or academia, or who are bank limited partners, with
expertise in developing and monitoring interventions to
expand the investment industry, of whom--
(i) 1 shall be selected by the Chair of the
Committee on Small Business and
Entrepreneurship of the Senate;
(ii) 1 shall be selected by the Ranking
Member of the Committee on Small Business and
Entrepreneurship of the Senate;
(iii) 1 shall be selected by the Chair of
the Committee on Small Business of the House of
Representatives; and
(iv) 1 shall be selected by the Ranking
Member of the Committee on Small Business of
the House of Representatives;
(2) develop recommendations regarding how the Administrator
could increase the number of--
(A) applicants to become small business investment
companies, with a focus on management teams or
companies located in--
(i) low-income communities;
(ii) underserved communities; and
(iii) low-income rural communities; and
(B) investments made in underfinanced States;
(3) develop recommendations for incentives for small
business investment companies to--
(A) invest and locate in underlicensed States and
underfinanced States; and
(B) invest in small business concerns, including
those owned and controlled by members of an
underrepresented community, small business concerns
owned and controlled by veterans, and small business
concerns owned and controlled by women; and
(4) develop recommendations for metrics of success, and
benchmarks for success, with respect to the goals described in
this section.
(d) Report.--Not later than 1 year after the date on which the
Administrator establishes the Working Group under subsection (b), the
Working Group shall submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small Business of
the House of Representatives a report that includes--
(1) the recommendations of the Working Group; and
(2) a recommended plan and timeline for implementing the
recommendations described in paragraph (1).
(e) Termination.--The Working Group shall terminate on the date on
which the Working Group submits the report required under subsection
(e).
Subtitle E--Increasing Access to Lending and Investment Capital
SEC. 100501. FUNDING FOR COMMUNITY ADVANTAGE LOAN PROGRAM.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Small Business Administration for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
to remain available until September 30, 2031--
(1) $281,000,000 for carrying out paragraph (38) of section
7(a) of the Small Business Act (15 U.S.C. 636(a)), as added by
subsection (b);
(2) $5,000,000 for carrying out subparagraph (F) of such
paragraph (38); and
(3) $314,000,000 for administrative expenses related to
carrying out such paragraph (38), including issuing interim
final rules.
(b) Establishment.--Section 7(a) of the Small Business Act (15
U.S.C. 636(a)) is amended by adding at the end the following:
``(38) Community advantage loan program.--
``(A) Definitions.--In this paragraph--
``(i) the term `covered institution'
means--
``(I) a development company, as
defined in section 103 of the Small
Business Investment Act of 1958,
participating in the loan program
established under title V of such Act;
``(II) a non-Federally regulated
entity certified as a community
development financial institution under
the Community Development Banking and
Financial Institutions Act of 1994;
``(III) an intermediary, as defined
in subsection (m)(11), that is a
nonprofit organization and is
participating in the microloan program
under subsection (m); and
``(IV) an eligible intermediary, as
defined in subsection (l)(1),
participating in the small business
intermediary lending pilot program
established under subsection (l)(2);
``(ii) the term `existing business' means a
small business concern that has been in
existence for not less than 2 years on the date
on which a loan is made to the small business
concern under the program;
``(iii) the term `new business' means a
small business concern that has been in
existence for not more than 2 years on the date
on which a loan is made to the small business
concern under the program;
``(iv) the term `program' means the
Community Advantage Loan Program established
under subparagraph (B);
``(v) the term `small business concern in
an underserved market' means a small business
concern--
``(I) that is located in--
``(aa) a low- to moderate-
income community;
``(bb) a HUBZone, as that
term is defined in section
31(b);
``(cc) a rural area; or
``(dd) any area for which a
disaster declaration or
determination described in
subparagraph (B), (C), or (E)
of subsection (b)(2) has been
made that has not terminated
more than 2 years before the
date (or later, as determined
by the Administrator) on which
a loan is made to such concern
under such subsection, or in
any area for which a major
disaster described in
subsection (b)(2)(A) has been
declared, that period shall be
5 years; or
``(II) that is a new business;
``(III) owned and controlled by
veterans;
``(IV) owned and controlled by an
individual who has completed a term of
imprisonment;
``(V) owned and controlled by an
individual with a disability, as that
term is defined in section 3 of the
Americans with Disabilities Act of
1990;
``(VI) owned and controlled by a
member of an Indian tribe individually
identified (including parenthetically)
in the most recent list published
pursuant to section 104 of the
Federally Recognized Indian Tribe List
Act of 1994; or
``(VII) otherwise identified by the
Administrator.
``(B) Establishment.-- There is established a
Community Advantage Loan Program under which the
Administration may guarantee loans made by covered
institutions under this subsection, including loans
made to small business concerns in underserved market
``(C) Requirement to make loans to underserved
markets.--Not less than 50 percent of loans made by a
covered institution under the program shall consist of
loans made to small business concerns in an underserved
market.
``(D) Maximum loan amount.--
``(i) In general.--Except as provided in
clause (ii), the maximum loan amount for a loan
guaranteed under the program is $250,000.
``(ii) Exceptions.--
``(I) Requested exception.--
``(aa) In general.--Upon
request by a covered
institution, the Administrator
may approve a guarantee of a
loan under the program that is
more than $250,000 and not more
than $350,000.
``(bb) Notification.--As
soon as practicable and not
later than 14 business days
after receiving a request under
item (aa), the Administration
shall--
``(AA) review the
request; and
``(BB) provide a
decision regarding the
request to the covered
institution making the
loan.
``(II) Major disasters.--The
maximum loan amount for a loan
guaranteed under the program that is
made to a small business concern
located in an area affected by a major
disaster described in subsection
(b)(2)(A) is $350,000.
``(E) Interest rates.--The maximum interest rate
for a loan guaranteed under the program shall not
exceed the maximum interest rate, as determined by the
Administration, applicable to other loans guaranteed
under this subsection.
``(F) Training.--The Administrator shall develop a
training course and provide free or low-cost training
to covered institutions making loans under the
program.''.
SEC. 100502. FUNDING FOR CREDIT ENHANCEMENT AND SMALL DOLLAR LOAN
FUNDING.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Small Business Administration for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
to remain available until September 30, 2031--
(1) $3,365,000,000 to carry out paragraph (39) of section
7(a) of the Small Business Act (15 U.S.C. 636(a)), as added by
subsection (b); and
(2) $1,100,000,000 for administrative expenses related to
carrying out such paragraph (39), including issuing interim
final rules.
(b) Small Dollar Loan Funding.--Section 7(a) of the Small Business
Act (15 U.S.C. 636(a)), as amended by section 10501, is further
amended--
(1) in paragraph (1)(A)(i), in the third sentence, by
striking ``; and'' and all that follows through the period at
the end and inserting a period;
(2) in paragraph (26), by inserting ``(except for those
collected under paragraph (39))'' after ``profits''; and
(3) by adding at the end the following:
``(39) Small dollar loan funding.--
``(A) Definitions.--In this paragraph:
``(i) Small government contractor.--The
term `small government contractor' means a
small business concern that is performing a
Government contract.
``(ii) Small manufacturer.--The term `small
manufacturer' means a small business concern
that is assigned a North American Industry
Classification System code beginning with 31,
32, or 33 at the time at which the small
business concern receives loan under this
subsection.
``(B) Direct loans.--The Administrator is
authorized to originate and disburse direct loans,
including through partnerships with third parties, to
small business concerns.
``(C) Terms.--
``(i) Loan size.--Notwithstanding paragraph
(3)(C) of this subsection, a loan made in
accordance with this paragraph shall be--
``(I) except as provided in
subclause (II), not more than $150,000;
or
``(II) not more than $1,000,000, if
the borrower is a small manufacturer or
a small government contractor.
``(D) Fees.--With respect to each loan made in
accordance with this paragraph, the Administrator, an
authorized third party, or an agent may--
``(i) impose, collect, retain, and utilize
fees, which may be charged to the borrower, to
cover any costs associated with referring
applications or originating, making,
underwriting, disbursing, closing, servicing,
or liquidating the loan, including any direct
lending agent costs, other program or contract
costs, or other agent administrative expenses;
``(ii) impose, collect, retain, and use
fees (including unused fees and draw fees),
which may be charged to the borrower on loans
for revolving lines of credit; and
``(iii) pay third parties, including direct
lending agents and financial institutions, with
which the Administration partners for
assistance in referring applicants or
promoting, originating, making, underwriting,
disbursing, closing, servicing, or liquidating
loans in accordance with this paragraph on
behalf of the Administration.
``(E) Other terms.--
``(i) In general.--Not later than 90 days
after the date of the enactment of this
paragraph, the Administrator shall issue
interim final rules relating to the
underwriting criteria, interest rate, maturity,
and other terms of a loan made in accordance
with this paragraph and revising any other
rules necessary to carry out this paragraph.
``(ii) Repayment.--Not later than 90 days
after the date of the enactment of this
paragraph, the Administrator shall issue rules
to allow reasonable assurance of repayment of a
loan made in accordance with this paragraph,
including reasonable assurance of repayment
from the assets converting to cash to be the
sole and primary form of repayment under this
paragraph.''.
SEC. 100503. EXTENSION OF TEMPORARY FEE REDUCTIONS.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Small Business Administration for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$1,000,000,000, to remain available until September 30, 2026, for
carrying out this section.
(b) 7(a) Loan Program.--Section 326 of the Economic Aid to Hard-Hit
Small Businesses, Nonprofits, and Venues Act (title III of division N
of Public Law 116-260; 134 Stat. 2036; 15 U.S.C. 636 note) is amended--
(1) in subsection (a)(2), by striking ``October 1, 2021''
and inserting ``October 1, 2026''; and
(2) in subsection (b)(2), by striking ``October 1, 2021''
and inserting ``October 1, 2026''.
(c) Other Fees.--Section 327 of the Economic Aid to Hard-Hit Small
Businesses, Nonprofits, and Venues Act (title III of division N of
Public Law 116-260; 134 Stat. 2037; 15 U.S.C. 636 note) is amended--
(1) in subsection (a)(1), by striking ``September 30,
2021'' and inserting ``September 30, 2026''; and
(2) in subsection (b)(1), by striking ``September 30,
2021'' and inserting ``September 30, 2026''.
SEC. 100504. FUNDING FOR COOPERATIVES.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Small Business Administration for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$500,000,000, to remain available until September 30, 2031, for
carrying out paragraph (40) of section 7(a) of the Small Business Act
(15 U.S.C. 636(a)), as added by subsection (b).
(b) Cooperative Lending Pilot.--Section 7(a) of the Small Business
Act (15 U.S.C. 636(a)), as amended by section 10502, is amended by
adding at the end the following:
``(40) Cooperative lending pilot.--
``(A) Definitions.--In this paragraph:
``(i) Community financial institution.--The
term `community financial institution' has the
meaning given in paragraph (36)(A);
``(ii) Cooperative.--The term
`cooperative'--
``(I) means an entity determined by
the Administrator to be a cooperative;
and
``(II) includes an entity owned by
employees or consumers of the entity.
``(iii) Eligible employee-owned business
concern.--The term `eligible employee-owned
business concern' means--
``(I) a cooperative in which the
employees of the cooperative are
eligible for membership;
``(II) a qualified employee trust;
or
``(III) other employee-owned
entities as determined by the
Administrator.
``(iv) Pilot program.--The term `pilot
program' means the pilot program established
under subparagraph (B).
``(B) Establishment.--There is established a pilot
program under which the Administrator shall guarantee
loans (including loans made by community financial
institutions), without the requirement of a personal or
entity guarantee, where such loans are made to
cooperatives or eligible employee-owned business
concerns.
``(C) Termination.--The pilot program shall
terminate on the date that is 5 years after the date of
enactment of this paragraph.''.
(c) Delegated Lending Authority for Preferred Lenders.--Section
5(b)(7) of the Small Business Act (15 U.S.C. 634(b)(7)) is amended by
striking ``paragraph (15) or (35)'' and inserting ``paragraph (15),
(35), or (40)''.
SEC. 100505. FUNDING FOR DIRECT DEBENTURES.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Small Business Administration for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
to remain available until September 30, 2031--
(1) $2,118,000,000 for carrying out subsection (j) of
section 503 of the Small Business Investment Act of 1958 (15
U.S.C. 697), as added by subsection (b); and
(2) $628,000,000 for administrative expenses related to
carrying out such subsection (j), including issuing interim
final rules.
(b) Direct Debentures.--Section 503 of the Small Business
Investment Act of 1958 (15 U.S.C. 697) is amended by adding at the end
the following:
``(j) Direct Debentures.--
``(1) Definitions.--In this subsection--
``(A) the term `direct debenture' means a debenture
guaranteed by the Administrator under the authority
under paragraph (2);
``(B) the term `eligible entity' means--
``(i) a small business concern in an
underserved market;
``(ii) a small government contractor; or
``(iii) a small manufacturer;
``(C) the term `renewable energy equipment'--
``(i) means such equipment as the
Administrator may designate as renewable energy
equipment; and
``(ii) includes solar panels, wind
turbines, and battery storage;
``(D) the term `small business concern in an
underserved market' has the meaning given in section
7(a)(38) of the Small Business Act;
``(E) the term `small government contractor' means
a small business concern that is performing a
government contract; and
``(F) the term `small manufacturer' means a small
business concern that is assigned a North American
Industry Classification System code beginning with 31,
32, or 33 at the time at which the small business
concern receives loan under this subsection.
``(2) Authority.--Except as otherwise provided in this
subsection, the Administrator may guarantee the timely payment
of all principal and interest as scheduled under this
subsection on a debenture issued by any qualified State or
local development company under the same terms, conditions, and
processes as a guarantee made under the authority under
subsection (a)(1).
``(3) Use of proceeds.--The proceeds of a direct
debenture--
``(A) for a small business concern that is an
eligible entity, may be used for any purpose for which
a loan under section 502 may be used, including to
acquire renewable energy equipment and for working
capital; and
``(B) for a small business concern that is not an
eligible entity, may be used to acquire renewable
energy equipment.
``(4) Maximum loan amount.--
``(A) In general.--A direct debenture shall be in
an amount not more than $6,500,000.
``(B) Cost of project.--The amount of the proceeds
of a direct debenture may not exceed the amount equal
to 100 percent of the cost of the project for which the
proceeds are to be used.
``(5) Criteria for assistance.--
``(A) No community injection funds required.--
Compliance with subparagraph (B) of section 502(a)(3)
shall not be required for a direct debenture.
``(B) Funding from small business concern.--A small
business concern receiving funds under a direct
debenture--
``(i) for a direct debenture used for
working capital, is not required to provide
funds toward the total cost of the project
financed;
``(ii) for a direct debenture used for
renewable energy equipment, may provide not
more than 10 percent of the total cost of the
project financed; and
``(iii) for a direct debenture used for any
other eligible purpose, shall provide not less
than 5 percent of the total cost of the project
financed.
``(6) Fees.--With respect to each debenture made in
accordance with this paragraph, in addition to other fees
authorized under this section, the Administrator, an authorized
third party, or an agent may--
``(A) impose, collect, retain, and utilize fees,
which shall be charged to the borrower, to cover any
costs associated with referring applications or
originating, underwriting, making, disbursing, closing,
and servicing, or liquidating the loan, including any
central servicing agent costs, other program or
contract costs, or other agent administrative expenses;
``(B) impose, collect, retain, and use fees
(including unused fees and draw fees), which may be
charged to the borrower on loans for revolving lines of
credit; and
``(C) establish fees that may be charged by interim
lenders for interim financing provided in connection
with a direct debenture, including for assistance in
referring applicants or promoting, originating, making,
underwriting, disbursing, closing, servicing, or
liquidating loans in accordance with this paragraph on
behalf of the Administration.
``(7) Interim financing.--Nothing in this subsection shall
be construed to restrict the ability of a State or local
development company to use a third party lender or another
lender to provide interim financing for all project costs
except the borrower's contribution, in accordance with section
120.890 of title 13, Code of Federal Regulations, or any
successor thereto, in connection with providing a direct
debenture to a small business concern.
``(8) Other terms.--
``(A) In general.--Not later than 90 days after the
date of the enactment of this paragraph, the
Administrator shall issue interim final rules relating
to the underwriting criteria, interest rate, maturity,
collateral, servicing, and other terms or project
requirements of a direct debenture made in accordance
with this subsection and revising any other rules
necessary to carry out this subsection.
``(B) Repayment.--Not later than 90 days after the
date of the enactment of this subsection, the
Administrator shall issue rules to allow reasonable
assurance of repayment of a direct debenture, including
reasonable assurance of repayment from the assets
converting to cash to be the primary form of repayment
under this subsection.''.
(c) Calculation of Job Creation Requirement.--Section 501(e)(4) of
the Small Business Investment Act of 1958 (15 U.S.C. 695(e)(4)) is
amended to read as follows:
``(4) Loans for projects of small manufacturers and direct
debenture loans under section 503(j) shall be excluded from
calculations under paragraph (2) or (3) of this subsection.''.
Subtitle F--Supporting Entrepreneurial Second Chances
SEC. 100601. REENTRY ENTREPRENEURSHIP COUNSELING AND TRAINING FOR
INCARCERATED AND FORMERLY INCARCERATED INDIVIDUALS.
(a) Reentry Entrepreneurship Counseling and Training for
Incarcerated Individuals.--
(1) Appropriations.--In addition to amounts otherwise
available, there is appropriated to the Small Business
Administration, out of any money in the Treasury not otherwise
appropriated $5,000,000 for each of fiscal years 2022 through
2028 to carry out section 53 of the Small Business Act, as
added by paragraph (2). Amounts appropriated by this subsection
shall remain available for 3 fiscal years.
(2) In general.--The Small Business Act (15 U.S.C. 631 et
seq.) is amended by inserting after section 52, as added by
section 10301 of this title, the following:
``SEC. 53. REENTRY ENTREPRENEURSHIP COUNSELING AND TRAINING FOR
INCARCERATED INDIVIDUALS.
``(a) Definitions.--In this section:
``(1) Covered individual.--The term `covered individual'
means an individual who is completing a term of imprisonment in
a facility designated as a minimum, low, or medium security.
``(2) Resource partners.--The term `resource partners'
means a small business development center (defined in section
3) or a women's business center (described under section 29).
``(b) Establishment.--The Administrator shall coordinate with
resource partners and associations formed to pursue matters of common
concern to resource partners to provide entrepreneurship counseling and
training services to covered individuals pursuant to subsection (c).
``(c) Use of Funds.--Amounts made available under this section
shall be used to--
``(1) develop and deliver a curriculum, including classroom
instruction and in-depth training to develop skills related to
business planning and financial literacy;
``(2) train mentors and instructors;
``(3) establish public-private partnerships to support
covered individuals; and
``(4) identify opportunities to access capital.''.
(b) Reentry Entrepreneurship Counseling and Training for Formerly
Incarcerated Individuals.--
(1) Appropriations.--In addition to amounts otherwise
available, there is appropriated to the Small Business
Administration, out of any money in the Treasury not otherwise
appropriated $5,000,000, for each of fiscal years 2022 through
2028 to carry out section 54 of the Small Business Act, as
added by paragraph (2). Amounts appropriated by this subsection
shall remain available for 3 fiscal years.
(2) In general.--The Small Business Act (15 U.S.C. 631 et
seq.) is amended by inserting after section 53, as added by
subsection (a), the following:
``SEC. 54. REENTRY ENTREPRENEURSHIP COUNSELING AND TRAINING FOR
FORMERLY INCARCERATED INDIVIDUALS.
``(a) Covered Individual Defined.--In this section, the term
`covered individual' means an individual who completed a term of
imprisonment.
``(b) Establishment.--The Administrator shall establish a program
under which the Service Corps of Retired Executives authorized by
section 8(b)(1)(B) shall provide entrepreneurship counseling and
training services to covered individuals on a nationwide basis.
``(c) Use of Funds.--Amounts made available under this section
shall be used by the Service Corps of Retired Executives for providing
to covered individuals the following services:
``(1) Regular individualized mentoring sessions to identify
and support development of the business plans of covered
individuals.
``(2) Workshops on topics specifically tailored to meet the
needs of covered individuals.
``(3) Instructional videos designed specifically for
covered individuals on how to start or expand a small business
concern.''.
SEC. 100602. NEW START ENTREPRENEURIAL DEVELOPMENT PROGRAM FOR FORMERLY
INCARCERATED INDIVIDUALS.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Small Business Administration, out of any
money in the Treasury not otherwise appropriated, $5,000,000, for each
of fiscal years 2022 through 2028 for carrying out this section.
Amounts appropriated by this subsection shall remain available for 3
fiscal years.
(b) Definitions.--In this section--
(1) Covered individual.--The term ``covered individual''
means an individual who--
(A) completed a term of imprisonment; and
(B) meets the offense eligibility requirements set
forth in any applicable policy notice or other guidance
issued by the Small Business Administration for the
program established under section 7(m) of the Small
Business Act (15 U.S.C. 636(m)).
(2) Intermediary; microloan.--The terms ``intermediary''
and ``microloan'' have the meanings given those terms,
respectively, in section 7(m)(11) of the Small Business Act (15
U.S.C. 636(m)(11)).
(3) Participating lender.--The term ``participating
lender'' means a participating lender described under section
7(a) of the Small Business Act (15 U.S.C. 636(a)).
(4) Pilot program.--The term ``pilot program'' means the
pilot program established under subsection (b).
(5) Resource partner.--The term ``resource partner''
means--
(A) a small business development center (defined in
section 3 of the Small Business Act (15 U.S.C. 632));
(B) a women's business center (described under
section 29 of such Act (15 U.S.C. 656));
(C) a chapter of the Service Corps of Retired
Executives (established under section 8(b)(1)(B) of
such Act ((15 U.S.C. 637(b)(1)(B))); and
(D) a Veteran Business Outreach Center (described
under section 32 of such Act (15 U.S.C. 657b)).
(c) Establishment.--The Administrator shall establish a pilot
program to award grants to organizations, or partnerships of
organizations, to provide assistance to covered individuals throughout
the United States.
(d) Application.--
(1) In general.--An organization or partnership of
organizations desiring a grant under the pilot program shall
submit an application to the Administrator in such form, in
such manner, and containing such information as the
Administrator may reasonably require.
(2) Contents.--An application submitted under paragraph (1)
shall--
(A) demonstrate that the applicant has a
partnership with, or is, an intermediary that shall
make microloans to covered individuals;
(B) demonstrate an ability to provide a full range
of entrepreneurial development programming on an
ongoing basis;
(C) include a plan for reaching covered
individuals, including by identifying particular target
populations within the community in which a covered
individual lives;
(D) include a plan to refer covered individuals who
have completed participation in the pilot program to
existing resource partners and participating lenders;
(E) include a comprehensive plan for the use of
grant funds, including estimates for administrative
expenses and outreach costs; and
(F) any other requirements, as determined by the
Administrator.
(e) Matching Requirement.--
(1) In general.--As a condition of a grant provided under
the pilot program, the Administrator shall require the
recipient of the grant to contribute an amount equal to 25
percent of the amount of the grant, obtained solely from non-
Federal sources.
(2) Form.--In addition to cash or other direct funding, the
contribution required under paragraph (1) may include indirect
costs or in-kind contributions paid for under non-Federal
programs.
Subtitle G--Other Matters
SEC. 100701. ADMINISTRATIVE EXPENSES.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Administration for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $1,250,000,000, to
remain available until September 30, 2031, for administrative expenses
related to carrying out this title, except as otherwise provided in
this title.
(b) Rulemaking.--Using amounts made available under subsection (a),
not later than 30 days after the date of the enactment of this Act, the
Administrator may issue rules, including interim final rules, as
necessary to carry out this title and the amendments made by this
title.
(c) Recission.--With respect to amounts appropriated under
subsection (a)--
(1) the Secretary of the Treasury shall complete all
disbursements and remaining obligations before September 30,
2031; and
(2) the unexpended balance of such amounts September 30,
2031, shall be rescinded and deposited into the general fund of
the Treasury.
SEC. 100702. OFFICE OF THE INSPECTOR GENERAL OF THE SMALL BUSINESS
ADMINISTRATION.
In addition to amounts otherwise available, there is appropriated
to the Office of the Inspector General of the Small Business
Administration for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $25,000,000, to remain available until
September 30, 2031, for audits, investigations, and other oversight of
projects and activities carried out with funds made available by this
title to the Small Business Administration.
TITLE XI--COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE
SEC. 110001. AFFORDABLE HOUSING ACCESS PROGRAM.
(a) In General.--In addition to amounts otherwise available, there
is appropriated for fiscal year 2022, out of any funds in the Treasury
not otherwise appropriated, $9,900,000,000, to remain available until
September 30, 2026, for competitive grants to support access to
affordable housing and the enhancement of mobility for residents in
disadvantaged communities or neighborhoods, in persistent poverty
communities, or for low-income riders generally.
(b) Criteria and Process.--The Secretary of Housing and Urban
Development and the Administrator of the Federal Transit Administration
shall establish criteria and a process for the allocation of funds made
available under this section in a manner to ensure that such funds
support--
(1) access to affordable housing;
(2) enhanced mobility for residents and riders, including
those in disadvantaged communities and neighborhoods,
persistent poverty communities, or for low-income riders
generally; or
(3) other community benefits for residents of disadvantaged
communities or neighborhoods, persistent poverty communities,
or for low-income riders generally identified by the Secretary
and the Administrator related to enhanced transit service,
including--
(A) access to job and educational opportunities;
(B) better connections to medical care; or
(C) enhanced access to grocery stores with fresh
foods to help eliminate food deserts.
(c) Administration of Funds.--Funds made available under this
section shall--
(1) be available to recipients and subrecipients eligible
under chapter 53 of title 49, United States Code;
(2) after allocation, be administered by the Administrator
of the Federal Transit Administration--
(A) to recipients and subrecipients in urban areas,
as if such funds were provided under section 5307 of
title 49, United States Code;
(B) to recipients and subrecipients in rural areas,
as if such funds were provided under section 5311 of
such title;
(C) for any project activities related to the
acquisition of zero-emission buses or related
infrastructure, as if funds for such activities were
awarded under section 5339(c) of such title;
(D) for any activities related to research that
supports efforts to reduce barriers to the deployment
of zero-emission transit vehicles in disadvantaged
communities or neighborhoods and rural areas, including
barriers related to the cost of such vehicles, as if
funds for such activities were provided under section
5312 of such title; or
(E) for any activities related to the training and
development of the transit workforce that provides
service to disadvantaged communities or neighborhoods
and rural areas, including the creation of new
employment opportunities in the transit industry for
workers from such communities, neighborhoods or areas,
as if funds for such activities were provided under
section 5314 of such title;
(3) not be subject to any restriction on the total amount
of funds available for implementation or execution of programs
authorized under section 5307, 5311, 5312, 5314, or 5339 of
title 49, United States Code;
(4) notwithstanding paragraph (1), be available for grants
for up to 100 percent of the net cost of a project; and
(5) be expended in compliance with the requirements of part
26 of title 49, Code of Federal Regulations.
(d) Eligible Activities.--Eligible activities for funds made
available under this section shall be--
(1) construction of a new fixed guideway capital project;
(2) construction of a bus rapid transit project or a
corridor-based bus rapid transit project that utilizes zero-
emission vehicles, including costs related to the acquisition
of such vehicles and related charging or fueling
infrastructure, or a collection of such projects;
(3) the establishment or expansion of high-frequency bus
service that utilizes zero-emission buses, including costs
related to the acquisition of such vehicles and related
charging or fueling infrastructure, but does not have all of
the features of a bus rapid transit project or corridor-based
bus rapid transit project;
(4) an expansion of the service area or the frequency of
service of recipients or subrecipients under section 5311 of
title 49, United States Code, which may include operational
expenses, including the provision of fare-free or reduced-fare
service, or the acquisition of vehicles or infrastructure to
expand service;
(5) notwithstanding subsection (a)(1) of section 5307 of
such title, an expansion of the service area or the frequency
of service of recipients under such section, which may include
operational expenses, including the provision of fare-free or
reduced-fare service, or the acquisition of zero-emission
vehicles or infrastructure to expand service;
(6) renovation or construction of facilities and incidental
expenses to continue or expand transit service in disadvantaged
communities or neighborhoods or service that benefits low-
income riders generally;
(7) research activities and capital expenses related to
research under section 5312 of such title that support efforts
to reduce barriers to the deployment of zero-emission transit
vehicles in disadvantaged communities or neighborhoods and
rural areas, including barriers related to the cost of such
vehicles;
(8) activities under section 5314 of such title that
support the training and development of the transit workforce
that provides service to disadvantaged communities or
neighborhoods and rural areas, including the creation of new
employment opportunities in the transit industry for workers
from such communities, neighborhoods, or areas;
(9) additional assistance to project sponsors of new fixed
guideway capital projects, core capacity improvement projects,
or corridor-based bus rapid transit projects not yet open to
revenue service, notwithstanding applicable requirements
regarding Government share of contributions toward net project
cost of the project or the share of contributions from a
program carried out by the Administrator of the Federal Transit
Administration, if--
(A) the applicant demonstrates that the
availability of funding under this section provides
additional support for access to affordable housing and
the enhancement of mobility for residents in
disadvantaged communities or neighborhoods, persistent
poverty communities, or for low-income riders generally
in the service area of the recipient, consistent with
the purposes described in subsection (b); and
(B) assistance under this paragraph does not
increase by more than 10 percentage points--
(i) the Government share of contributions
toward net project cost; or
(ii) the Government share of assistance
from a program carried out by the Administrator
of the Federal Transit Administration;
(10) fleet transition, route, or other public
transportation planning, including planning related to economic
development; or
(11) projects to upgrade the accessibility of bus or rail
public transportation services for persons with disabilities,
including individuals who use wheelchairs, in disadvantaged
communities or neighborhoods.
(e) Administrative Expenses.--In addition to amounts otherwise
available, there is appropriated for fiscal year 2022, out of any funds
in the Treasury not otherwise appropriated, $100,000,000, to remain
available until September 30, 2026, for the following:
(1) The costs of administering and overseeing the
implementation of this section.
(2) To make new awards or to increase prior awards to
provide technical assistance and capacity building for eligible
recipients or subrecipients under this section.
SEC. 110002. COMMUNITY CLIMATE INCENTIVE GRANTS.
(a) Federal Highway Administration Appropriation.--In addition to
amounts otherwise available, there is appropriated for fiscal year
2022, out of any funds in the Treasury not otherwise appropriated,
$50,000,000, to remain available until September 30, 2026, to the
Administrator of the Federal Highway Administration--
(1) to establish a greenhouse gas performance measure that
requires States to set performance targets to reduce greenhouse
gas emissions;
(2) to establish an incentive structure to reward States
that demonstrate the most significant progress towards
achieving reductions in greenhouse gas emissions;
(3) to establish consequences for States that do not
achieve reductions in greenhouse gas emissions;
(4) to issue guidance and regulations, and provide
technical assistance, as necessary to implement this section;
and
(5) from any remaining amounts after carrying out
paragraphs (1) through (4), for operations and administration
of the Federal Highway Administration.
(b) Grants to States.--In addition to amounts otherwise available,
there is appropriated for fiscal year 2022, out of any funds in the
Treasury not otherwise appropriated, $950,000,000, to remain available
until September 30, 2026, to the Administrator of the Federal Highway
Administration, for incentive grants for carbon reduction projects, to
be awarded to States that--
(1) qualify for a reward under the incentive structure
established by the Administrator under subsection (a)(2); or
(2) have adopted carbon reduction strategies that
contribute to achieving net-zero greenhouse gas emissions by
2050, and have incorporated such strategies into the
transportation plans required under section 135 of title 23,
United States Code.
(c) Grants to Other Eligible Entities.--In addition to amounts
otherwise available, there is appropriated for fiscal year 2022, out of
any funds in the Treasury not otherwise appropriated, $3,000,000,000,
to remain available until September 30, 2026, to the Administrator of
the Federal Highway Administration for grants, to be awarded on a
competitive basis, for carbon reduction projects to eligible entities
that are not States.
(d) Use of Funds.--
(1) In general.--Funds made available under subsections (b)
and (c) shall be administered as if made available under
chapter 1 of title 23, United States Code, and a project
carried out under this section shall be treated as a project on
a Federal-aid highway under such chapter.
(2) Grants to states.--Funds made available under
subsection (b) administered by or through a State department of
transportation shall be expended in compliance with the
requirements of part 26 of title 49, Code of Federal
Regulations.
(e) Federal Share.--
(1) In general.--The Federal share for a recipient of funds
that is not a State under this section may be up to 100
percent.
(2) States.--The Federal share for a recipient of funds
under this section that is a State shall be determined in
accordance with section 120 of title 23, United States Code.
(f) Limitation.--Funds made available under this section shall
not--
(1) be subject to any restriction or limitation on the
total amount of funds available for implementation or execution
of programs authorized for Federal-aid highways; and
(2) be used for projects that result in additional through
travel lanes for single occupant passenger vehicles.
(g) Definitions.--In this section:
(1) Carbon reduction project.--A carbon reduction project
means a project that is eligible under title 23, United State
Code, and that--
(A) will result in significant reductions in
greenhouse gas emissions related to a surface
transportation facility or project;
(B) provides zero-emission transportation options;
(C) reduces dependence on single-occupant vehicle
trips; or
(D) advances carbon reduction strategies adopted by
an eligible entity that contribute to achieving net-
zero greenhouse gas emissions by 2050.
(2) Eligible entity.--The term ``eligible entity'' means--
(A) a unit of local government;
(B) a political subdivision of a State;
(C) a territory;
(D) a metropolitan planning organization (as
defined in section 134 of title 23, United States
Code);
(E) a special purpose district or public authority
with a transportation function;
(F) a recipient of funds under section 202 of title
23, United State Code; or
(G) a State.
(3) State.--The term ``State'' has the meaning given the
term in section 101 of title 23, United States Code.
SEC. 110003. NEIGHBORHOOD ACCESS AND EQUITY GRANTS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated for fiscal year 2022, out of any funds in the Treasury
not otherwise appropriated, $3,950,000,000, to remain available until
September 30, 2026, to the Administrator of the Federal Highway
Administration--
(1) for grants to eligible entities described in subsection
(b) to improve walkability, safety, and affordable
transportation access through construction (as such term is
defined in section 101 of title 23, United States Code) of
projects that are context sensitive--
(A) to remove, remediate, or reuse a facility
described in subsection (c)(1);
(B) to replace a facility described in subsection
(c)(1) with a facility that is at-grade or lower speed;
(C) to retrofit or cap a facility described in
subsection (c)(1);
(D) to build or improve complete streets, multiuse
trails, regional greenways, or active transportation
networks or spines; or
(E) to provide affordable access to essential
destinations, public spaces, or transportation links
and hubs;
(2) for mitigation grants to eligible entities described in
subsection (b) to remediate negative impacts on the human or
natural environment resulting from a facility described in
subsection (c)(2) in a disadvantaged or underserved community,
including construction (as such term is defined in section 101
of title 23, United States Code) of--
(A) noise barriers to reduce impacts resulting from
a facility described in subsection (c)(2);
(B) technologies, infrastructure, and activities to
reduce surface transportation-related air pollution,
including greenhouse gas emissions;
(C) infrastructure or protective features to reduce
or manage stormwater run-off resulting from a facility
described in subsection (c)(2), including through
natural infrastructure and pervious, permeable, or
porous pavement;
(D) infrastructure and natural features to reduce,
or to mitigate, urban heat island hot spots in the
transportation right of way or on surface
transportation facilities; or
(E) safety improvements for vulnerable road users;
and
(3) for grants to eligible entities described in subsection
(b) for planning and capacity building activities in
disadvantaged or underserved communities to--
(A) identify, monitor, or assess local and ambient
air quality, emissions of transportation greenhouse
gases, hot spot areas of extreme heat or elevated air
pollution, gaps in tree canopy coverage, or flood prone
locations;
(B) assess transportation equity or pollution
impacts and develop local anti-displacement policies
and community benefit agreements;
(C) conduct predevelopment activities for projects
eligible under this subsection;
(D) expand public participation in transportation
planning by individuals and organizations in
disadvantaged or underserved communities; or
(E) administer or obtain technical assistance
related to activities described in this subsection.
(b) Eligible Entities Described.--An eligible entity referred to in
subsection (a) is--
(1) a State (as such term is defined in section 101 of
title 23, United States Code);
(2) a unit of local government;
(3) a political subdivision of a State (as such term is
defined in section 101 of title 23, United States Code);
(4) a recipient of funds under section 202 of title 23,
United States Code;
(5) a territory of the United States;
(6) a metropolitan planning organization (as defined in
section 134(b) of title 23, United States Code); or
(7) with respect to a grant described in subsection (a)(3),
in addition to an eligible entity described in paragraphs (1)
through (6), a nonprofit organization or institution of higher
education that has entered into a partnership with an eligible
entity described in paragraphs (1) through (6).
(c) Facility Described.--A facility is--
(1) a surface transportation facility for which high
speeds, grade separation, or other design factors create an
obstacle to connectivity within a community; or
(2) a surface transportation facility which is a source of
air pollution, noise, stormwater, or other burden to a
disadvantaged or underserved community.
(d) Local Technical Assistance.--In addition to amounts otherwise
available, there is appropriated for fiscal year 2022, out of any funds
in the Treasury not otherwise appropriated, $50,000,000, to remain
available until September 30, 2026, to the Administrator of the Federal
Highway Administration for--
(1) guidance, technical assistance, templates, training, or
tools to facilitate efficient and effective contracting,
design, and project delivery by units of local government;
(2) subgrants to units of local government to build
capacity of such local government to assume responsibilities to
deliver surface transportation projects; and
(3) operations and administration of the Federal Highway
Administration.
(e) Use of Funds.--
(1) In general.--The Administrator shall provide grants to
eligible entities described in subsection (b) that submit an
application to the Administrator at such time, in such manner,
and containing such information as the Administration requires.
(2) Minimum investment.--Not less than $1,580,000,000 of
funds made available under subsection (a) shall be distributed
for projects in communities that--
(A) are economically disadvantaged, including an
underserved community or a community located in an area
of persistent poverty;
(B) have entered or will enter into a community
benefits agreement with representatives of the
community;
(C) have an anti-displacement policy, a community
land trust, or a community advisory board in effect; or
(D) have demonstrated a plan for employing local
residents in the area impacted by the activity or
project proposed under this section.
(f) Administration.--
(1) In general.--Amounts made available under subsection
(a) shall be administered as if made available under chapter 1
of title 23, United States Code, and a project carried out
under this section shall be treated as a project on a Federal-
aid highway under such chapter.
(2) Grants to states.--Funds made available under
subsection (a) administered by or through a State department of
transportation shall be expended in compliance with the
requirements of part 26 of title 49, Code of Federal
Regulations.
(g) Cost Share.--The Federal share of the cost of an activity
carried out using a grant awarded under this section shall be not more
than 80 percent, except that the Federal share of the cost of a project
in a disadvantaged or underserved community may be up to 100 percent.
(h) Limitations.--Funds made available under this section shall
not--
(1) be subject to any restriction or limitation on the
total amount of funds available for implementation or execution
of programs authorized for Federal-aid highways; and
(2) be used for a project for additional through travel
lanes for single-occupant passenger vehicles.
SEC. 110004. FEDERAL HIGHWAY ADMINISTRATION SECTION 202 FUNDS.
(a) In General.--In addition to amounts otherwise made available,
there is appropriated for fiscal year 2022, out of any funds in the
Treasury not otherwise appropriated, $1,000,000,000, to remain
available until September 30, 2026, to the Administrator of the Federal
Highway Administration for the purposes described under section 202 of
title 23, United States Code.
(b) Distribution of Funds.--The Administrator of the Federal
Highway Administration shall administer amounts made available under
subsection (a) as if allocated under section 202 of title 23, United
States Code.
(c) Limitation.--Funds made available under this section shall not
be subject to any restriction or limitation on the total amount of
funds available for implementation or execution of programs authorized
for Federal-aid highways.
SEC. 110005. TERRITORIAL HIGHWAY PROGRAM FUNDING.
(a) In General.--In addition to amounts otherwise made available,
there is appropriated for fiscal year 2022, out of any funds in the
Treasury not otherwise appropriated, $320,000,000, to remain available
until September 30, 2026, to the Administrator of the Federal Highway
Administration for the purposes described under section 165(c) of title
23, United States Code.
(b) Administration of Funds.--The Administrator of the Federal
Highway Administration shall administer amounts made available under
subsection (a) as if allocated under section 165(c) of title 23, United
States Code.
(c) Limitation.--Funds made available under this section shall not
be subject to any restriction or limitation on the total amount of
funds available for implementation or execution of programs authorized
for Federal-aid highways.
SEC. 110006. TRAFFIC SAFETY CLEARINGHOUSE.
(a) In General.--In addition to amounts otherwise made available,
there is appropriated for fiscal year 2022, out of any funds in the
Treasury not otherwise appropriated, $100,000,000 to remain available
until September 30, 2026, for the Administrator of the National Highway
Traffic Safety Administration to make 1 or more grants, cooperative
agreements, or contracts with 1 or more qualified institutions to--
(1) operate a national clearinghouse for fair and equitable
traffic safety enforcement programs;
(2) research and develop systems for States to collect
traffic safety enforcement data and provide technical
assistance to States collecting such data, including the
sharing of data to a national database;
(3) develop recommendations and best practices to help
States collect and use traffic safety enforcement data to
promote equity and reduce traffic-related fatalities and
injuries; and
(4) develop information and educational programs on
implementing equitable traffic safety enforcement best
practices to assist States and local communities.
(b) Administration.--Not more than 5 percent of the amounts made
available under this section may be used for salaries, expenses, and
administration of the National Highway Traffic Safety Administration.
SEC. 110007. AUTOMATED VEHICLES AND MOBILITY INNOVATION.
In addition to amounts otherwise made available, there is
appropriated for fiscal year 2022, out of any funds in the Treasury not
otherwise appropriated, $8,000,000, to remain available until September
30, 2026, to the Secretary of Transportation to make a grant to a
qualified institution of higher education to--
(1) operate a national highly automated vehicle and
mobility innovation clearinghouse;
(2) collect, conduct, and support research on the secondary
and societal impacts of highly automated vehicles and mobility
innovation on the built environment; and
(3) disseminate and make such research available on a
public website to assist communities.
SEC. 110008. LOCAL TRANSPORTATION PRIORITIES.
(a) In General.--In addition to amounts otherwise made available,
there is appropriated to the Secretary of Transportation for fiscal
year 2022, out of any funds in the Treasury not otherwise appropriated,
$6,000,000,000 to remain available until September 30, 2026, for
projects to advance local surface transportation priorities.
(b) Davis Bacon Requirement.--
(1) In general.--All laborers and mechanics employed by
contractors or subcontractors in the performance of
construction, alteration, or repair work carried out, in whole
or in part, with assistance made available under this section
shall be paid wages at rates not less than those prevailing on
projects of a character similar in the locality as determined
by the Secretary of Labor in accordance with subchapter IV of
chapter 31 of title 40, United States Code.
(2) Authority and functions.--With respect to the labor
standards specified in this subsection, the Secretary of Labor
shall have the authority and functions set forth in
Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5
U.S.C. App.) and section 3145 of title 40, United States Code.
SEC. 110009. PASSENGER RAIL IMPROVEMENT, MODERNIZATION, AND EMISSIONS
REDUCTION GRANTS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Transportation for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$10,000,000,000, to remain available until September 30, 2026, for
financial assistance under chapter 261 of title 49, United States Code,
to eligible entities for eligible projects.
(b) Allocation.--Of the funds provided pursuant to subsection (a),
not less than 10 percent shall be used for eligible projects as
described under subsection (e)(1)(A).
(c) Federal Share.--For any financial assistance provided pursuant
to this section, the Federal share may not exceed 90 percent of the
total cost of the eligible project.
(d) Oversight.--Not more than 1 percent of the amounts made
available under subsection (a) shall be for the use of the Secretary of
Transportation for the costs of award and project management of
financial assistance provided under this section.
(e) Definitions.--In this section:
(1) Eligible project.--The term ``eligible project''
means--
(A) a planning project for high-speed rail corridor
development that consists of planning activities
eligible to receive financial assistance under section
26101(b) of title 49, United States Code; or
(B) a capital project for high-speed rail corridor
development that--
(i) directly serves rail stations within
urban areas, as published by the Bureau of the
Census, that are located in close proximity to
a census tract, as published by the Bureau of
the Census, within the urban area that has a
greater population density than the urban area
as a whole; and
(ii) is eligible to receive financial
assistance for a capital project, as defined in
section 26106(b)(3) of title 49, United States
Code.
(2) Eligible entity.--The term ``eligible entity'' means--
(A) an entity eligible to receive financial
assistance under section 26101 of title 49, United
States Code; or
(B) an applicant eligible to receive a grant under
section 26106 of title 49, United States Code.
(3) High-speed rail.--The term ``high-speed rail'' means
non-highway ground transportation that is owned or operated by
an eligible entity and reasonably expected to reach speeds of
160 miles per hour or more on shared-use right-of-way or 186
miles per hour or more on dedicated right-of-way.
(4) Corridor.--The term ``corridor'' means an existing,
modified, or proposed intercity passenger rail service, as
defined in section 26106(b) of title 49, United States Code.
SEC. 110010. RAILROAD REHABILITATION INFRASTRUCTURE AND FINANCING
CREDIT RISK PREMIUM ASSISTANCE.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Transportation, out of any
money in the Treasury not otherwise appropriated, $150,000,000, in
fiscal year 2022, to remain available until September 30, 2026, to
provide credit risk premium assistance to eligible entities through the
railroad rehabilitation infrastructure and financing program
established by title V of the Railroad Revitalization and Regulatory
Reform Act of 1976.
(b) Eligible Entities.--For purposes of this section, eligible
entities shall include--
(1) railroad carriers as defined in section 20102 of title
49, United States Code;
(2) State or local governments; or
(3) government-sponsored authorities or corporations.
(c) Allocation.--
(1) Public passenger rail projects.--Not less than 50
percent of the amounts appropriated under subsection (a) shall
be set aside for publicly owned or operated passenger rail
projects.
(2) Freight railroads.--Not less than 25 percent of the
amounts appropriated under subsection (a) shall be set aside
for freight railroads that are not Class I railroads.
SEC. 110011. ALTERNATIVE FUEL AND LOW-EMISSION AVIATION TECHNOLOGY
PROGRAM.
(a) In General.--In addition to amounts otherwise made available,
there is appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $1,000,000,000, to remain
available until September 30, 2026, for the Secretary of Transportation
to provide grants to, and enter into cost-sharing agreements with,
eligible entities to carry out projects located in the United States
that--
(1) develop, demonstrate, or apply low-emission aviation
technologies; or
(2) produce, transport, blend, or store sustainable
aviation fuels that would reduce greenhouse gas emissions
attributable to the operation of aircraft that have fuel uplift
in the United States.
(b) Selection.--In carrying out subsection (a), the Secretary shall
consider, with respect to a proposed project--
(1) the anticipated public benefits of the project;
(2) the potential to increase the domestic production and
deployment of sustainable aviation fuel or the use of low-
emission aviation technologies among the United States
commercial aviation and aerospace industry;
(3) the potential for creating new jobs in the United
States;
(4) the potential the project has to reduce or displace, on
a lifecycle basis, United States greenhouse gas emissions
associated with air travel;
(5) the proposed utilization of non-Federal cost-share
contributions;
(6) for projects related to the production of sustainable
aviation fuel, the potential net greenhouse gas emissions
impact of such fuel on a lifecycle basis, which shall include
feedstock, fuel production, and potential direct and indirect
greenhouse gas emissions (including resulting from changes in
land use);
(7) how the project will strengthen the leadership of the
United States in either sustainable aviation fuels or in low-
emission aviation technologies;
(8) the benefits of ensuring a diversity of feedstocks for
sustainable aviation fuel, including the use of waste carbon
oxides and direct air capture;
(9) the potential for partnerships with relevant supply
chain stakeholders for sustainable aviation fuel;
(10) the potential to leverage existing industrial
infrastructure to accelerate the deployment of sustainable
aviation fuels;
(11) aeronautical construction and design improvements that
result in more efficient aircraft, including new aircraft
architectures, innovative propulsion integration, and high-
performance lightweight materials;
(12) more efficient aircraft engines, including innovative
engine architectures, hybrid-electric engines, and all-electric
engines suitable for fully or partially powering aircraft
operations; and
(13) air traffic management and navigation technologies
that permit more efficient flight patterns.
(c) Funding Distribution.--Of the amount made available under
subsection (a), 30 percent of such amount shall be awarded for projects
described in subsection (a)(1) and 70 percent of such amount shall be
awarded for projects described in subsection (a)(2).
(d) Federal Cost Share.--The Secretary shall determine a higher
Federal share of project costs for any cost-share agreement or grant
awarded to any eligible recipient for a project under subsection (a)
that involves a low-emission aviation technology that exceeds a 20
percent reduction in fuel burn compared to current best in class
aircraft or a sustainable aviation fuel that substantially exceeds a 50
percent lifecycle greenhouse gas emission reduction compared to
conventional jet fuels.
(e) Program Requirements.--As a condition of receiving funds under
this section, the Secretary may approve an award under this section
only if the Secretary has received written assurances from the
recipient that--
(1) any low-emission aviation technology that is funded or
is part of a project funded by a grant under subsection (a)(1)
is produced in the United States;
(2) any sustainable aviation fuel that is part of a project
funded by a grant under subsection (a)(2) is--
(A) produced in the United States; and
(B) is not derived from feedstocks that are
developed through practices that threaten mass
deforestation, harm biodiversity, or otherwise promote
environmentally unsustainable processes; and
(3) the recipient of grant funding has adequately
considered the environmental justice and equity impacts of any
project on underserved communities.
(f) Development Projects.--Section 47112(a) of title 49, United
States Code, is amended by inserting ``or labor for a project funded
under section 110011 of the Act entitled `An Act to provide for
reconciliation pursuant to title II of S. Con. Res. 14''' after ``this
subchapter''.
(g) Administrative Expenses.--The Secretary may retain up to 1
percent of the funds provided under this section to fund the award of,
and oversight by the Secretary of, grants made under this section.
(h) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State or local government other than an
airport sponsor;
(B) an air carrier;
(C) an airport sponsor;
(D) an accredited institution of higher education;
(E) a person or entity engaged in the production,
transportation, blending or storage of sustainable
aviation fuel or feedstocks that could be used to
produce sustainable aviation fuel;
(F) a person or entity engaged in the development,
demonstration, or application of low-emission aviation
technologies; or
(G) nonprofit entities or nonprofit consortia with
experience in sustainable aviation fuel, low-emission
technology, or other clean transportation research
programs.
(2) Low-emission aviation technology.--The term ``low-
emission aviation technology'' means technologies that
significantly--
(A) improve aircraft fuel efficiency;
(B) increase utilization of sustainable aviation
fuels; or
(C) reduce greenhouse gas emissions produced during
operation of civil aircraft.
(3) Sustainable aviation fuel.--The term ``sustainable
aviation fuel'' means liquid fuel that--
(A) consists of synthesized hydrocarbons;
(B) meets the requirements of--
(i) ASTM International Standard D7566; or
(ii) the co-processing provisions of ASTM
International Standard D1655, Annex A1 (or such
successor standard);
(C) is derived from biomass (as such term is
defined in section 45K(c)(3) of the Internal Revenue
Code of 1986), waste streams, renewable energy sources
or gaseous carbon oxides;
(D) is not derived from palm fatty acid
distillates; and
(E) achieves at least a 50 percent lifecycle
greenhouse gas emissions reduction in comparison with
petroleum-based jet fuel, as determined by a test that
shows--
(i) the fuel production pathway achieves at
least a 50 percent reduction of the aggregate
attributional core lifecycle greenhouse gas
emissions and the induced land use change
values under the lifecycle methodology for
sustainable aviation fuel adopted by the
International Civil Aviation Organization for
the Carbon Offsetting and Reduction Scheme for
International Aviation with the agreement of
the United States; or
(ii) the fuel production pathway achieves
at least a 50 percent reduction of the
aggregate attributional core lifecycle
greenhouse gas emissions values under another
methodology that the Secretary, in consultation
with the Administrator of the Environmental
Protection Agency, determines is--
(I) reflective of the latest
scientific understanding of lifecycle
greenhouse gas emissions; and
(II) as stringent as the
requirement under clause (i).
(i) Time Limit for Adoption of New Sustainable Aviation Fuel
Emissions Reduction Test.--For purposes of clause (ii) of subsection
(h)(3)(E), the Secretary, in consultation with the Administrator of the
Environmental Protection Agency, shall, not later than 2 years after
the date of the enactment of this section, adopt at least 1 methodology
for testing lifecycle greenhouse gas emissions that meets the
requirements of such clause.
SEC. 110012. IMPLEMENTATION OF THE CARBON OFFSETTING AND REDUCTION
SCHEME FOR INTERNATIONAL AVIATION.
(a) In General.--In addition to amounts otherwise made available,
there is appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $6,000,000, to remain available
until September 30, 2026, for the Secretary of Transportation to ensure
the United States complies with its obligations with respect to volume
IV of annex 16 to the Convention on International Civil Aviation (61
Stat. 1180) (``Carbon Offsetting and Reduction Scheme for International
Aviation'', hereinafter ``CORSIA'').
(b) Regulations.--
(1) In general.--The Secretary shall issue regulations with
requirements to ensure the United States complies with the
obligations referenced in subsection (a), including
requirements for operators of civil aircraft of the United
States with respect to--
(A) monitoring, reporting, and verifying quantities
of carbon emissions covered under the CORSIA,
cancelling eligible emissions units and reporting and
verifying such cancellations, and reporting use of
CORSIA eligible fuels; and
(B) submission of such information as the Secretary
determines is necessary with respect to implementation
of the CORSIA.
(2) Standards and recommended practices.--Regulations
issued under this subsection shall be consistent with
applicable standards and recommended practices published in
volume IV of annex 16 to the Convention on International Civil
Aviation (61 Stat. 1180) and associated implementation
elements, adopted by the International Civil Aviation
Organization prior to enactment of this Act, and any amendments
or updates to such standards and related documents with which
the United States concurs.
(c) Reports.--Not later than December 31, 2022, and every 3 years
thereafter, the Secretary shall submit to the Committee on
Transportation and Infrastructure of the House of Representatives and
the Committee on Commerce, Science, and Technology of the Senate a
report assessing the compliance of operators of civil aircraft
registered in the United States with regulations issued under this
section as well as the standards and recommended practices referenced
in subsection (b)(2), as applicable.
SEC. 110013. ASSISTANCE TO UPDATE AND ENFORCE HAZARD RESISTANT CODES
AND STANDARDS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $291,000,000, to remain available until
expended, to the Administrator of the Federal Emergency Management
Agency to carry out activities described in section 203(i) of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5133(i)), notwithstanding section 203(f)(2) of such Act (42
U.S.C. 5133(f)(2)), including for activities and grants that provide
technical assistance and capacity building for State, local, Indian
Tribal, or territorial governments for establishing, implementing, and
carrying out enforcement activities of the latest published editions of
relevant performance-based and consensus-based codes, specifications,
and standards that incorporate hazard-resistant designs and the latest
requirements for the maintenance and inspection of existing buildings
to address hazard risk.
(b) Cost Share.--The Federal share of the assistance provided in
this section shall be 100 percent.
(c) Administration.--In addition to amounts made available for
administrative expenses under section 205(d)(2) of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
5135(d)(2)), there is appropriated for fiscal year 2022, out of any
money in the Treasury not otherwise available, $9,000,000 to the
Administrator of the Federal Emergency Management Agency, to remain
available until expended, for administration of this section.
SEC. 110014. HAZARD MITIGATION REVOLVING LOAN FUND.
(a) In General.--In addition to amounts otherwise available, there
is appropriated for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $495,000,000, to remain available until
expended, to the Administrator of the Federal Emergency Management
Agency for the establishment and carrying out of hazard mitigation
revolving loan fund grants under section 205 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5135).
(b) Administration.--In addition to amounts made available for
administrative expenses under section 205(d)(2) of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
5135(d)(2)), there is appropriated for fiscal year 2022, out of any
money in the Treasury not otherwise available, $5,000,000 to the
Administrator of the Federal Emergency Management Agency, to remain
available until expended, for administration of this section.
SEC. 110015. UPGRADING PUBLIC ALERT AND WARNING.
(a) In General.--In addition to amounts otherwise available, there
is appropriated for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $24,000,000, to remain available until
September 30, 2024, to the Administrator of the Federal Emergency
Management Agency to upgrade the Integrated Public Alert and Warning
System for implementation of the Next Generation Warning System.
(b) Assistance to Certain Entities.--In carrying out subsection
(a), the Administrator of the Federal Emergency Management Agency is
authorized to issue noncompetitive, risk-informed financial assistance
to public broadcasting entities, as defined in section 397 of the
Communications Act of 1934 (47 U.S.C. 397).
(c) Administration.--In addition to amounts made available for
administrative expenses under section 205(d)(2) of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
5135(d)(2)), there is appropriated for fiscal year 2022, out of any
money in the Treasury not otherwise available, $1,000,000 to the
Administrator of the Federal Emergency Management Agency, to remain
available until September 30, 2026, for administration of this section.
SEC. 110016. FEDERAL ASSISTANCE FOR EMERGENCY MANAGERS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $412,000,000, to remain available until
expended, to the Administrator of the Federal Emergency Management
Agency for grants for construction, retrofit, technological
enhancement, and updated requirements of State, local, Indian Tribal,
and territorial emergency operations centers under section 614 of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5196c). A State may provide grant funds under this subsection to
local governments and Tribal governments to carry out the activities
for which such funds are provided.
(b) Administration.--In addition to amounts made available for
administrative expenses under section 205(d)(2) of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
5135(d)(2)), there is appropriated for fiscal year 2022, out of any
money in the Treasury not otherwise available, $13,000,000 to the
Administrator of the Federal Emergency Management Agency, to remain
available until expended, for administration of this section.
(c) Limitation.--The amount of a project under a grant provided
under this section may not exceed $4,000,000.
(d) Code Compliance.--In using funds under subsection (a), a grant
recipient shall act in compliance with the latest published editions of
relevant consensus-based codes, specifications, and standards that
incorporate the latest hazard resistant designs and establish minimum
acceptable criteria for the design, construction, and maintenance of
structures and facilities for the purpose of protecting the health,
safety, and general welfare of the building users against disasters.
SEC. 110017. FEMA PROCUREMENT, CONSTRUCTION, AND IMPROVEMENTS.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $200,000,000, to remain available until September 30,
2026, to the Administrator of the Federal Emergency Management Agency
for the construction, renovation, retrofit, technological enhancement,
and updated requirements of Federal emergency training centers and
Federal emergency operations centers.
SEC. 110018. ECONOMIC DEVELOPMENT ADMINISTRATION.
(a) Economic Development Assistance for Regional Economic Growth
Clusters.--In addition to amounts otherwise available, there is
appropriated for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $4,000,000,000, to remain available until
September 30, 2027, to the Secretary of Commerce for grants under
section 209 of the Public Works and Economic Development Act of 1965
(42 U.S.C. 3149) to develop regional economic growth clusters, subject
to the condition that sections 204 and 301 of such Act (42 U.S.C. 3144
and 3161) shall not apply to grants made with amounts made available
under this subsection.
(b) Economic Adjustment Assistance.--In addition to amounts
otherwise available, there is appropriated for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $1,000,000,000,
to remain available until September 30, 2027, to the Secretary of
Commerce for economic adjustment assistance as authorized by section
209 of the Public Works and Economic Development Act of 1965 (42 U.S.C.
3149), of which--
(1) $500,000,000 shall be to provide assistance to energy
and industrial transition communities, including coal, oil and
gas, and nuclear transition communities; and
(2) $50,000,000 shall be to provide grants for project
predevelopment and capacity building activities, including
activities relating to the writing of grant applications
(consistent with section 213 of such Act (42 U.S.C. 3153)) and
stipends to local community organizations for planning
participation, community outreach and engagement activities,
subject to the conditions that--
(A) sections 204 and 301 of such Act (42 U.S.C.
3144 and 3161) shall not apply to grants made with
amounts made available under this paragraph; and
(B) not less than 50 percent of the amounts made
available under this paragraph shall be for activities
that are carried out in underserved communities.
(c) Grants for Public Works and Economic Development.--In addition
to amounts otherwise available, there is appropriated for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$500,000,000, to remain available until September 30, 2027, to the
Secretary of Commerce for public works projects as authorized by
section 201 of the Public Works and Economic Development Act of 1965
(42 U.S.C. 3141).
(d) Administration.--Not more than 3 percent of the amounts made
available under this section shall be used for the administrative costs
of carrying out this section.
SEC. 110019. RECOMPETE PILOT PROGRAM.
(a) Economic Development Administration Appropriation.--In addition
to amounts otherwise available, there is appropriated for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$4,000,000,000, to remain available until September 30, 2031, to the
Department of Commerce for economic adjustment assistance as authorized
by section 209 of the Public Works and Economic Development Act of 1965
(42 U.S.C. 3149) to establish a pilot program, to be known as the
``Recompete Pilot Program'', to provide grants to specified entities to
carry out activities in eligible areas and Tribal lands for which a
specified entity has jurisdiction or otherwise serves to support local
labor markets, local communities, and Tribal governments to alleviate
persistent economic distress and labor market dislocation, except that
sections 204 and 301 of such Act shall not apply to a grant provided
under this section.
(b) Term.--A grant shall have a term of 10 fiscal years and be
disbursed at such time and in such manner as determined by the
Secretary of Commerce in accordance with benchmarking requirements
established by the Secretary.
(c) Use of Funds.--Of the funds provided by this section--
(1) not less than $3,855,000,000 shall be used for grants
to be awarded to at least 15 specified entities representing
eligible areas to carry out activities described in a recompete
plan approved by the Secretary of Commerce;
(2) not more than $25,000,000 may be used for planning and
technical assistance grants to be awarded to not more than 50
specified entities representing eligible areas to develop a
recompete plan and carry out predevelopment activities; and
(3) not more than 3 percent shall be used for the
administrative costs of carrying out this section.
(d) Limitations.--
(1) Eligible areas.--An eligible area may not benefit from
more than 1 grant and 1 grant described in subsection (c)(2).
(2) Limitation on recipients.--For purposes of the program
under this section, a specified entity may not receive a grant
on behalf of more than 1 eligible area.
(e) Maximum Award Amount.--In determining the maximum amount of a
grant that a specified entity may be awarded, the Secretary shall use
the product obtained by multiplying--
(1) the prime-age employment gap of the eligible area;
(2) the prime-age population of the eligible area; and
(3) either--
(A) $70,585 for local labor markets; or
(B) $53,600 for local communities.
(f) Definitions.--In this section:
(1) Eligible area.--The term ``eligible area'' means either
of the following:
(A) A local labor market that--
(i) has a prime-age employment gap equal to
not less than 2.5 percent; and
(ii) meets additional criteria as the
Secretary may establish.
(B) A local community that--
(i) has a prime-age employment gap equal to
not less than 5 percent;
(ii) is not located within an eligible
local labor market that meets the criteria
described in subparagraph (A); and
(iii) has a median annual household income
of not more than $75,000.
(2) Local labor market.--The term ``local labor market''
means any of the following areas that contains 1 or more
specified entities described in subparagraphs (A) through (D)
of paragraph (5):
(A) A commuting zone, as defined by the Economic
Research Service of the Department of Agriculture,
excluding all core-based statistical areas within the
commuting zone described in subparagraph (B).
(B) Subject to subparagraph (C), if 1 or more
discrete metropolitan statistical areas or micropolitan
statistical areas, as defined by the Office of
Management and Budget (collectively referred to as
``core-based statistical areas''), exists within a
commuting zone described in subparagraph (A), each such
core-based statistical area.
(C) If the remaining area of a commuting zone
described in subparagraph (A), excluding all core-based
statistical areas within the commuting zone described
in subparagraph (B), contains 1 or fewer counties and
has a population of 7,500 or fewer residents, that
remaining area combined with an adjacent core-based
statistical area within the commuting zone.
(D) The Tribal land with a Tribal prime-age
population represented by a Tribal government.
(3) Local community.--The term ``local community'' means
the area served by a specified entity described in
subparagraphs (A) through (C) of paragraph (5) that--
(A)(i) is located within a local labor market or
partial local labor market that is not eligible; or
(ii) is not coexistent with, or encompassing the
entirety of, a local labor market; and
(B) meets such additional criteria, including a
minimum population requirement, as the Secretary may
establish.
(4) Prime-age employment gap.--
(A) In general.--The term ``prime-age employment
gap'' means the difference (expressed as a percentage)
between--
(i) the national 5-year average prime-age
employment rate; and
(ii) the 5-year average prime-age
employment rate of the eligible area.
(B) Calculation.--For the purposes of subparagraph
(A), an individual is prime-age if such individual
between the ages of 25 years and 54 years.
(5) Recompete plan.--The term ``recompete plan'' means a
comprehensive 10-year economic development plan that--
(A) includes--
(i) proposed programs and activities to be
carried out with a grant awarded under this
section to address the economic challenges of
the eligible area in a manner that promotes
long-term, sustained economic growth and
reduction in the prime-age employment gap of
the eligible area;
(ii) projected costs and annual
expenditures and proposed disbursement
schedule; and
(iii) other information as the Secretary
determines appropriate;
(B) is developed by a specified entity that is the
recipient of a planning and technical assistance grant
described in subsection (c)(2); and
(C) is submitted to the Secretary for approval for
a specified entity to be considered for a grant under
this section.
(6) Specified entity.--The term ``specified entity''
means--
(A) a unit of local government;
(B) the District of Columbia;
(C) a territory or possession of the United States;
(D) a Tribal government;
(E) a State-authorized political subdivision or
other entity, including a special-purpose entity
engaged in economic development activities;
(F) a public entity or nonprofit organization,
acting in cooperation with the officials of a political
subdivision or entity described in subparagraph (E);
(G) an economic development district (as defined in
section 3 of the Public Works and Economic Development
Act of 1965 (42 U.S.C. 3122); and
(H) a consortium of any of the specified entities
described in this paragraph which serve or are
contained within the same eligible area.
(7) Tribal government.--The term ``Tribal government''
means the recognized governing body of any Indian or Alaska
Native tribe, band, nation, pueblo, village, community,
component band, or component reservation, individually
identified (including parenthetically) in the list published by
the Bureau of Indian Affairs on January 29, 2021, pursuant to
section 104 of the Federally Recognized Indian Tribe List Act
of 1994 (25 U.S.C. 5131).
(8) Tribal land.--The term ``Tribal land'' means any land--
(A) any land located within the boundaries of an
Indian reservation, pueblo, or rancheria; or
(B) any land not located within the boundaries of
an Indian reservation, pueblo, or rancheria, the title
to which is held--
(i) in trust by the United States for the
benefit of an Indian Tribe or an individual
Indian;
(ii) by an Indian Tribe or an individual
Indian, subject to restriction against
alienation under laws of the United States; or
(iii) by a dependent Indian community.
(9) Tribal prime-age population.--
(A) In general.--The term ``Tribal prime-age
population'' shall be equal to the sum obtained by
adding--
(i) the product obtained by multiplying--
(I) the total number of individuals
ages 25 through 54 residing on the
Tribal land of the Tribal government;
and
(II) 0.65; and
(ii) the product obtained by multiplying--
(I) the total number of individuals
ages 25 through 54 included on the
membership roll of the Tribal
government; and
(II) 0.35.
(B) Use of date.--A calculation under subparagraph
(A) shall be determined based on data provided by the
applicable Tribal government to the Department of the
Treasury under the Coronavirus State and Local Fiscal
Recovery Fund programs under title VI of the Social
Security Act (42 U.S.C. 801 et seq.).
SEC. 110020. ASSISTANCE FOR FEDERAL BUILDINGS.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any funds in the Treasury not otherwise
appropriated, $1,000,000,000, to remain available until September 30,
2031, to be deposited in the Federal Buildings Fund established under
section 592 of title 40, United States Code, for measures necessary to
convert facilities of the Administrator of General Services to high-
performance green buildings (as defined in section 401 of the Energy
Independence and Security Act of 2007 (42 U.S.C. 17061)).
SEC. 110021. TECHNOLOGY INNOVATION AND CLIMATE RESILIENCE IN MARITIME
SECTOR.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available until September 30,
2027, to the Maritime Administration, for the maritime environmental
and technical assistance program under section 50307 of title 46,
United States Code, to reduce carbon emissions, reduce vessel noise
pollution, and improve the climate resiliency of the marine shipping
and the maritime industry.
SEC. 110022. CLIMATE RESILIENT COAST GUARD INFRASTRUCTURE.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $1,000,000,000, to remain available until September 30,
2031, to the account under the heading ``Coast Guard Procurement,
Construction, and Improvements'', for the acquisition, design, and
construction of new, or replacement of existing, climate resilient
facilities, including personnel readiness facilities such as family
support services facilities, that are threatened by or have been
impacted by climate change, as authorized under sections 504(e) and
1101(b)(1) of title 14, United States Code. The Coast Guard shall
return to the Treasury any funds appropriated under this section that
have not been expended by September 30, 2031.
SEC. 110023. GREAT LAKES ICEBREAKER ACQUISITION.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of funds in the Treasury not otherwise
appropriated, $350,000,000, to remain available until September, 30,
2031, to the Coast Guard, for acquisition, design, and construction of
a Great Lakes heavy icebreaker, as authorized under section 8107 of the
William M. (Mac) Thornberry National Defense Authorization Act for
Fiscal Year 2021 (Public Law 116-283). The Coast Guard shall return to
the Treasury any funds appropriated under this section that have not
been expended by September 30, 2031.
SEC. 110024. POLAR SECURITY CUTTERS AND CLIMATE SCIENCE.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $788,000,000, to remain available until September 30,
2031, to the Coast Guard, for the acquisition of the fourth heavy Polar
Security Cutter, including scientific laboratory and berthing
facilities, to expand access for scientists to the polar regions, to
improve climate and weather research, for other polar missions, and for
other purposes, as authorized under section 561 of title 14, United
States Code.
SEC. 110025. SMALL SHIPYARD GRANTS.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $300,000,000, to remain available until September 30,
2027, to the Maritime Administration for the purposes of making grants
under the assistance for small shipyards program, as authorized by
section 54101 of title 46, United States Code, to improve the climate
resiliency and environmental sustainability of the maritime industry
and maritime transportation system, including workforce training and
equipment acquisition projects that improve the efficiency of shipyard
operations, vessel construction and vessel repair. The deadlines
established in paragraphs (2) and (3) of subsection (b) and paragraph
(1) of subsection (f) of section 54101 of such title shall not apply to
amounts made available in this section, and the Secretary of
Transportation may carry out multiple rounds of competition.
SEC. 110026. PORT INFRASTRUCTURE AND SUPPLY CHAIN RESILIENCE.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $2,500,000,000, to remain available until September 30,
2027, to the Maritime Administration for the purposes of making grants
for projects to support supply chain resilience, reduction in port
congestion, the development of offshore wind support infrastructure,
and environmental remediation, projects to reduce the impact of ports
on the environment, and for other purposes. Such grants shall be
administered in accordance with the requirements applicable to grants
under section 50302 of title 46, United States Code. The deadlines
established in paragraph (5) of subsection (c) of section 50302 of such
title shall not apply to amounts made available in this section, and
the Secretary of Transportation may carry out multiple rounds of
competition. The Maritime Administration shall return to the Treasury
any funds appropriated under this section that have not been expended
by September 30, 2031.
SEC. 110027. GRANTS FOR RURAL, SMALL, TRIBAL, AND ECONOMICALLY
DISADVANTAGED MUNICIPALITY TECHNICAL ASSISTANCE AND
CIRCUIT RIDER PROGRAMS AND WORKFORCE DEVELOPMENT.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Environmental Protection Agency for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$495,000,000, to remain available until expended, for the Administrator
of the Environmental Protection Agency--
(1) to provide technical assistance to rural, small,
Tribal, and economically disadvantaged municipalities for the
purposes identified in subsection (b)(8) of section 104 of the
Federal Water Pollution Control Act (33 U.S.C. 1254); and
(2) for grants for manpower development and training and
retraining of workforce employees of publicly owned treatment
works in accordance with subsection (g) of such section.
(b) Determination of Economic Disadvantage.--In determining whether
a municipality is economically disadvantaged for the purposes of this
section, the Administrator shall, to the maximum extent practicable,
take into consideration--
(1) the criteria under paragraph (1) or (2) of section
301(a) of the Public Works and Economic Development Act of 1965
(42 U.S.C. 3161); and
(2) any affordability criteria established by the State in
which the municipality is located pursuant to section 603(i)(2)
or 221(c) of the Federal Water Pollution Control Act (33 U.S.C.
1383(i)(2); 1301(c)).
SEC. 110028. ALTERNATIVE WATER SOURCE PROJECT GRANTS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Environmental Protection Agency for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$125,000,000, to remain available until expended, for carrying out
section 220 of the Federal Water Pollution Control Act (33 U.S.C.
1300), in accordance with subsection (b), which funds may be used to
make grants under such section on the condition that--
(1) a project carried out using such funds shall, to the
maximum extent practicable, maximize the avoidance,
minimization, or mitigation of climate change impacts on, and
of, any constructed part of the project (including through the
implementation of technologies to recover and reuse energy
produced in the treatment of wastewater); and
(2) all of the iron and steel used in the project are
produced in the United States in accordance with section 608 of
such Act (33 U.S.C. 1388).
(b) Limitations.--For purposes of subsection (a)--
(1) the limitation in section 220(d)(1) of the Federal
Water Pollution Control Act (as in effect on September 1,
2021), as it applies to the receipt of planning or design
funds, shall not apply with respect to eligibility for a grant
under this section; and
(2) the requirements of sections 220(d)(2) and (e) of such
Act (as in effect on September 1, 2021) shall not apply to the
making of a grant under this section.
SEC. 110029. SEWER OVERFLOW AND STORMWATER REUSE MUNICIPAL GRANTS.
(a) General Assistance.--In addition to amounts otherwise
available, there is appropriated to the Environmental Protection Agency
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $1,000,000,000, to remain available until expended, for
carrying out section 221 of the Federal Water Pollution Control Act (33
U.S.C. 1301), which funds may be used to make grants under such section
on the condition that any activity carried out using such funds shall,
to the maximum extent practicable, maximize the avoidance,
minimization, or mitigation of climate change impacts on, and of, any
constructed part of the activity (including through the implementation
of technologies to recover and reuse energy produced in the treatment
of wastewater).
(b) Financially Distressed Communities.--
(1) Appropriation.--In addition to amounts otherwise
available, there is appropriated to the Environmental
Protection Agency for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $1,000,000,000, to remain
available until expended, for carrying out section 221 of the
Federal Water Pollution Control Act (33 U.S.C. 1301), which
funds may be used to make grants under such section to
financially distressed communities (as defined in such
section), including rural financially distressed communities,
on the condition that any activity carried out using such funds
shall, to the maximum extent practicable, maximize the
avoidance, minimization, or mitigation of climate change
impacts on, and of, any constructed part of the activity
(including through the implementation of technologies to
recover and reuse energy produced in the treatment of
wastewater).
(2) Limitation.--In carrying out paragraph (1), the
Administrator of the Environmental Protection Agency may not
require a financially distressed community receiving a grant
pursuant to this subsection to provide, as a condition of
eligibility to receive such grant, a share of the cost of the
activity for which the grant was made.
SEC. 110030. INDIVIDUAL HOUSEHOLD DECENTRALIZED WASTEWATER TREATMENT
SYSTEM GRANTS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Environmental Protection Agency for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$450,000,000, to remain available until expended, to make grants, in
accordance with subsection (b), to States, municipalities, and
nonprofit entities under the Federal Water Pollution Control Act for
the construction, repair, or replacement of individual household
decentralized wastewater treatment systems of eligible individuals (as
such term is defined in section 603(j) of the Federal Water Pollution
Control Act (33 U.S.C. 1383(j)).
(b) Priority.--In carrying out subsection (a), the Administrator of
the Environmental Protection Agency shall prioritize the issuance of
grants to assist eligible individuals (as such term is defined in
section 603(j) of the Federal Water Pollution Control Act (33 U.S.C.
1383(j)) residing in households that are not connected to a system or
technology designed to treat domestic sewage, including eligible
individuals using household cesspools.
SEC. 110031. TRIBAL CLEAN WATER GRANTS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Environmental Protection Agency for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$500,000,000, to remain available until expended, to make grants, in
accordance with subsection (b), to Indian tribes and other entities
described in section 518(c)(3) of the Federal Water Pollution Control
Act (33 U.S.C. 1377)--
(1) for--
(A) projects and activities eligible for assistance
under section 603(c) of such Act (33 U.S.C. 1383); and
(B) training, technical assistance, and educational
programs related to the operation and management of
treatment works eligible for assistance pursuant to
such section 603(c); and
(2) subject to the condition that--
(A) any project or activity carried out using such
funds shall, to the maximum extent practicable,
maximize the avoidance, minimization, or mitigation of
climate change impacts on, and of, any constructed part
of the project or activity (including through the
implementation of technologies to recover and reuse
energy produced in the treatment of wastewater); and
(B) all of the iron and steel used in any project
carried out using such funds are produced in the United
States in accordance with section 608 of such Act (33
U.S.C. 1388).
(b) Limitation.--In carrying out subsection (a), the Administrator
of the Environmental Protection Agency may not require an Indian tribe
or other entity receiving a grant under this section to provide, as a
condition of eligibility to receive such grant, a share of the cost of
the project or activity for which the grant was made.
SEC. 110032. WASTEWATER INFRASTRUCTURE ASSISTANCE TO COLONIAS.
In addition to amounts otherwise available, there is appropriated
to the Environmental Protection Agency for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $125,000,000, to
remain available until expended, for the Administrator of the
Environmental Protection Agency for carrying out section 307 of the
Safe Drinking Water Act Amendments of 1996 (33 U.S.C. 1281 note; 110
Stat. 1688), which funds may be used to award grants under such section
to a border State or municipality with jurisdiction over an eligible
community (as such terms are defined in such section), on the condition
that--
(1) a project carried out using such funds shall, to the
maximum extent practicable, maximize the avoidance,
minimization, or mitigation of climate change impacts on, and
of, any constructed part of the project (including through the
implementation of technologies to recover and reuse energy
produced in the treatment of wastewater);
(2) all of the iron and steel used in the project are
produced in the United States in accordance with section 608 of
the Federal Water Pollution Control Act (33 U.S.C. 1388); and
(3) an eligible community receiving assistance for such
project pursuant to this section shall not be required to
provide a share of the costs of carrying out the project.
SEC. 110033. CLEAN WATER NEEDS SURVEY.
In addition to amounts otherwise available, there is appropriated
to the Environmental Protection Agency for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $5,000,000, to remain
available until expended, for grants to States and municipalities to
carry out a detailed estimate of the cost of construction of all needed
publicly owned treatment works pursuant to section 516(b)(1)(B) of the
Federal Water Pollution Control Act (33 U.S.C. 1375(b)(1)(B)).
SEC. 110034. PROHIBITION ON USE OF FUNDS.
The Comptroller General of the United States shall provide a report
to Congress accounting for any equipment provided by the United States
Coast Guard or the Army Corps of Engineers to any prior regime in
Afghanistan and that has been left behind in Afghanistan.
SEC. 110035. POLICY OF THE UNITED STATES ON CHILD LABOR.
It is the policy of the United States that funds made available by
this title should not be used to purchase products produced whole or in
part through the use of child labor, as such term is defined in Article
3 of the International Labor Organization Convention concerning the
prohibition and immediate action for the elimination of the worst forms
of child labor (December 2, 2000), or in violation of human rights.
TITLE XII--COMMITTEE ON VETERANS AFFAIRS
SEC. 12001. DEPARTMENT OF VETERANS AFFAIRS INFRASTRUCTURE IMPROVEMENTS.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $15,200,000,000, to remain available until September 30,
2031, for facilities under the jurisdiction of, or for the use of, the
Department of Veterans Affairs to carry out sections 2400, 2403, 2404,
2406, 2407, 2412, 8101 through 8110, 8122, and 8161 through 8169 of
title 38, United States Code, taking into consideration the integration
of climate resiliency into infrastructure as well as the needs of
underserved areas and underserved veteran populations.
SEC. 12002. MODIFICATIONS TO ENHANCED-USE LEASE AUTHORITY OF DEPARTMENT
OF VETERANS AFFAIRS.
(a) Modifications to Authority.--Paragraph (2) of section 8162(a)
of title 38, United States Code, is amended to read as follows:
``(2)(A) The Secretary may enter into an enhanced-use lease on or
after the date of the enactment of this paragraph only if the Secretary
determines--
``(i) that the lease will not be inconsistent with, and
will not adversely affect--
``(I) the mission of the Department; or
``(II) the operation of facilities, programs, and
services of the Department in the local area; and
``(ii) that--
``(I) the lease will enhance the use of the leased
property by directly or indirectly benefitting
veterans; or
``(II) the leased property will provide supportive
housing.
``(B) The Secretary shall give priority to enhanced-use leases
that, on the leased property--
``(i) provide supportive housing for veterans;
``(ii) provide direct services or benefits targeted to
veterans; or
``(iii) provide services or benefits that indirectly
support veterans.''.
(b) Appropriation.--In addition to amounts otherwise available,
there is appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $455,000,000 for the Department of
Veterans Affairs, to remain available until expended, to enter into
enhanced-use leases pursuant to section 8162 of title 38, United States
Code, as amended by this section.
(c) Modification of Sunset.--Section 8169 of such title is amended
by striking ``December 31, 2023'' and inserting ``September 30, 2026''.
SEC. 12003. MAJOR MEDICAL FACILITY LEASES OF THE DEPARTMENT OF VETERANS
AFFAIRS.
(a) Authority to Enter Into Major Medical Facility Leases.--
Paragraph (2) of subsection (a) of section 8104 of title 38, United
States Code, is amended--
(1) by striking ``No funds'' and inserting ``(A) No
funds'';
(2) by striking ``or any major medical facility lease'';
(3) by striking ``or lease''; and
(4) by adding at the end the following new subparagraph:
``(B) Funds may be appropriated for a fiscal year, and the
Secretary may obligate and expend funds, including for advance planning
and design, for any major medical facility lease.''.
(b) Modification of Definition of Major Medical Facility Lease.--
Subparagraph (B) of paragraph (3) of such subsection is amended to read
as follows:
``(B) The term `major medical facility lease'--
``(i) means a lease for space for use as a new
medical facility approved through the General Services
Administration under section 3307(a)(2) of title 40 at
an average annual rent equal to or greater than the
dollar threshold described in such section, which shall
be subject to annual adjustment in accordance with
section 3307(h) of such title; and
``(ii) does not include a lease for space for use
as a shared Federal medical facility for which the
Department's estimated share of the lease costs does
not exceed such dollar threshold.''.
(c) Interim Leasing Actions.--Such section is further amended by
adding at the end the following new subsection:
``(i)(1) The Secretary may carry out interim leasing actions as the
Secretary considers necessary for major medical facility leases (as
defined in subsection (a)(3)(B)).
``(2) In this subsection, the term `interim leasing actions' has
the meaning given that term by the Administrator of the General
Services Administration.''.
(d) Applicability.--The amendments made by this section shall apply
with respect to a lease that has not been specifically authorized by
law on or before the date of the enactment of this Act and is included
as part of the annual budget submission of the President for fiscal
year 2022, 2023, or 2024.
(e) Purchase Options.--The Secretary of Veterans Affairs may
obligate and expend funds to exercise a purchase option included in any
major medical facility lease described in subsection (d).
(f) Appropriation.--In addition to amounts otherwise available,
there is appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $1,805,000,000, to remain
available until expended, for major medical facility leases pursuant to
subchapter I of chapter 81 of title 38, United States Code, as amended
by this section, as requested in the annual budget submission of the
President for fiscal year 2022, 2023, or 2024.
(g) Termination and Restoration.--
(1) In general.--Effective upon the date of execution of
the final lease award for leases described in subsection (d),
subsections (a) through (e) of this section and the amendments
made by those subsections are repealed and any provision of law
amended by those subsections is restored as if those
subsections had not been enacted into law.
(2) Notification.--The Secretary of Veterans Affairs shall
submit to Congress and the Law Revision Counsel of the House of
Representatives written notification of the date specified in
paragraph (1) not later than 30 days before such date.
SEC. 12004. INCREASE IN NUMBER OF HEALTH PROFESSIONS RESIDENCY
POSITIONS AT DEPARTMENT OF VETERANS AFFAIRS MEDICAL
FACILITIES.
(a) Increase.--In carrying out section 7302(a)(1) of title 38,
United States Code, during the seven-year period beginning on the day
that is one year after the date of the enactment of this Act, the
Secretary of Veterans Affairs shall increase the number of health
professions residency positions at medical facilities of the Department
of Veterans Affairs by not more than 700 positions (which shall be
allocated among occupations included in the most current determination
published in the Federal Register pursuant to section 7412(a) of such
title, or allocated pursuant to a prioritization by the Secretary of
occupations in primary care, mental health care, and any other health
professions occupation the Secretary determines appropriate) through
the establishment of such new positions at--
(1) medical facilities where the Secretary established such
positions pursuant to section 301(b)(2) of the Veterans Access,
Choice, and Accountability Act of 2014 (Public Law 113-146; 38
U.S.C. 7302 note); or
(2) any medical facility--
(A) the director of which expresses an interest in
establishing or expanding a health professions
residency program at the medical facility; or
(B) that is located in a community that has a high
concentration of veterans or is experiencing a shortage
of health care professionals.
(b) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Department of Veterans Affairs for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$375,000,000, to remain available until September 30, 2029, for the
purpose of carrying out this section.
SEC. 12005. VETERAN RECORDS SCANNING.
In addition to amounts otherwise available, there is appropriated
to the Veterans Benefits Administration for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $150,000,000, to
remain available until September 30, 2023, for costs of record scanning
and claims processing, to carry out sections 7701 and 7703 of title 38,
United States Code.
SEC. 12006. FUNDING FOR DEPARTMENT OF VETERANS AFFAIRS OFFICE OF
INSPECTOR GENERAL.
In addition to amounts otherwise available, there is appropriated
to the Office of Inspector General of the Department of Veterans
Affairs for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $15,000,000, to remain available until
September 30, 2031, for audits, investigations, and other oversight of
projects and activities carried out with funds made available to the
Department of Veterans Affairs.
TITLE XIII--COMMITTEE ON WAYS AND MEANS
Subtitle A--Universal Paid Family and Medical Leave
SEC. 130001. PAID FAMILY AND MEDICAL LEAVE.
The Social Security Act (42 U.S.C. 301 et seq.) is amended by
adding at the end the following:
``TITLE XXII--PAID FAMILY AND MEDICAL LEAVE BENEFITS
``SEC. 2201. TABLE OF CONTENTS.
``The table of contents for this title is as follows:
``Sec. 2201. Table of contents.
``Sec. 2202. Paid family and medical leave benefit eligibility.
``Sec. 2203. Benefit amount.
``Sec. 2204. Benefit determination and payment.
``Sec. 2205. Appeals.
``Sec. 2206. Stewardship.
``Sec. 2207. Funding for benefit payments, grants, and program
administration.
``Sec. 2208. Funding for outreach, public education, and research.
``Sec. 2209. Funding for State administration option for legacy States.
``Sec. 2210. Reimbursement option for employer-sponsored paid leave
benefits.
``Sec. 2211. Funding for small business assistance.
``Sec. 2212. Definitions.
``SEC. 2202. PAID FAMILY AND MEDICAL LEAVE BENEFIT ELIGIBILITY.
``(a) Entitlement.--Every individual who--
``(1) has filed an application for a paid family and
medical leave benefit in accordance with section 2204(a);
``(2) has, or anticipates having, at least 4 caregiving
hours in a week ending at any time during the period that
begins 90 days before the date on which such application is
filed or not later than 180 days after such date; and
``(3) has wages or self-employment income at any time
during the period--
``(A) beginning with the most recent calendar
quarter that ends at least 4 months prior to the
beginning of the individual's benefit period specified
in subsection (b); and
``(B) ending with the month before the month in
which such benefit period begins,
shall be entitled to such a benefit for each month during such benefit
period, except as otherwise provided in this section.
``(b) Benefit Period.--
``(1) In general.--Except as provided in paragraph (2), the
benefit period specified in this subsection is the period
beginning with the month in which ends the 1st week in which
the individual has at least 4 caregiving hours and otherwise
meets the criteria specified in paragraphs (1), (2), and (3) of
subsection (a) and ending with the month in which ends the 52nd
week ending during such period.
``(2) Retroactive benefits.--In the case of an application
for benefits under this section with respect to an individual
who has at least 4 caregiving hours in a week at any time
during the period that begins 90 days before the date on which
such application is filed, the benefit period specified in this
subsection is the period beginning with the later of--
``(A) the month in which ends the 1st week in which
the individual has at least 4 caregiving hours; or
``(B) the 1st month that begins during such 90-day
period,
and ending with the month in which ends the 52nd week ending
during such period.
``(3) Limitation.--Notwithstanding paragraphs (1) and (2),
no benefit period under this title may begin with any month
beginning prior to July 2023.
``(c) Caregiving Hours.--
``(1) Caregiving hour defined.--For purposes of this title,
the term `caregiving hour' means a 1-hour period during which
the individual engaged in qualified caregiving (determined on
the basis of information filed with the Secretary pursuant to
subsection (c) of section 2204).
``(2) Qualified caregiving.--
``(A) In general.--For purposes of this subsection,
the term `qualified caregiving' means any activity
engaged in by an individual in lieu of work, other than
for monetary compensation, for any reason described in
paragraph (1) or (3) of section 102(a) of the Family
and Medical Leave Act of 1993 (29 U.S.C. 2612(a)),
except that for purposes of this paragraph such section
shall be applied--
``(i) by treating such individual as the
employee referred to in such paragraph;
``(ii) as if paragraph (1)(C) were amended
to read as follows:
```(C)(i) In order to care for a qualified family
member of the employee, if such qualified family member
has a serious health condition.
```(ii) For purposes of clause (i), the term
``qualified family member'' means, with respect to an
employee--
```(I) a spouse (including a domestic
partner in a civil union or other registered
domestic partnership recognized by a State) and
a spouse's parent;
```(II) a child and a child's spouse;
```(III) a parent and a parent's spouse;
```(IV) a sibling and a sibling's spouse;
```(V) a grandparent, a grandchild, or a
spouse of a grandparent or grandchild; and
```(VI) any other individual who is related
by blood or affinity and whose association with
the employee is equivalent of a family
relationship (as determined under regulations
issued by the Secretary of the Treasury).'; and
``(iii) by treating the criterion in
paragraph (1)(D) that an individual is `unable
to perform the functions of the position of
such employee' because of a serious health
condition as a criterion that the individual is
unable to satisfy the requirements needed to
continue receiving the wages or self-employment
income described in subsection (a)(3) with
respect to the individual because of such
serious health condition;
``(iv) as if paragraph (1)(E) were amended
to read as follows:
```(E) Because of any qualifying exigency (as the
Secretary shall, by regulation, determine) arising out
of the fact that a qualified family member of the
employee (as defined in subparagraph (C)(ii)) is on
covered active duty (or has been notified of an
impending call or order to covered active duty) in the
Armed Forces.'; and
``(v) as if paragraph (1) were amended by
adding at the end the following:
```(G) Because of the death of a spouse, parent, or
child of the employee.'.
``(vi) as if paragraph (3) were amended by
striking `the spouse, son, daughter, parent, or
next of kin' and inserting `a qualified family
member of the employee (as defined in
subparagraph (C)(ii))'.
``(B) No monetary compensation permitted.--For
purposes of subparagraph (A), an activity shall be
considered to be engaged in by an individual for
monetary compensation if the individual received any
form of wage compensation from an employer, including
paid vacation, paid sick leave, and any other form of
accrued paid time off (but not including any such form
of accrued paid time off or any non-accrued paid family
and medical leave benefits sponsored by an employer to
the extent that the sum of such accrued or non-accrued
paid leave and any paid family and medical leave
benefits under section 2202 does not exceed 100 percent
of the individual's regular rate of pay (as determined
under section 7(e) of the Fair Labor Standards Act of
1938)), for the time during which the individual was so
engaged.
``(C) Treatment of individuals eligible for
employer sponsored paid family and medical leave
benefits.--For purposes of subparagraph (A), an
activity engaged in by an individual shall not be
considered to be engaged in in lieu of work if, for the
time during which the individual was so engaged, the
individual would be eligible for paid family and
medical leave benefits under a program sponsored by an
employer who receives a grant with respect to such
program under section 2210.
``(D) Treatment of individuals employed in legacy
states.--For purposes of subparagraph (A), an activity
engaged in by an individual shall not be considered to
be engaged in in lieu of work if the time during which
the individual was so engaged constitutes leave from
employment for which the individual would be eligible
to receive paid family or medical leave benefits under
the law of a legacy State (as defined in section
2209(b)).
``(d) Treatment of Bereavement Leave.--In the case of an activity
engaged in by an individual in lieu of work for a reason described in
paragraph (1)(G) of section 102(a) of the Family and Medical Leave Act
of 1993 (as such section is applied for purposes of paragraph (2) of
subsection (c)), the total number of caregiving hours attributable to
such activity, for each death described in such paragraph (1)(G), that
may be credited under section 2203(c) to weeks during the individual's
benefit period may not exceed \3/5\ of the number of hours in the
individual's regular workweek (within the meaning of section 2203(d)).
``(e) No Caregiving Hours in Individual's Week of Death.--No
caregiving hours of an individual may be credited under section 2203(c)
to the week during which the individual dies.
``(f) Disqualification Following Certain Convictions.--An
individual who has been found to have used false statements or
representation to secure benefits under this title shall be ineligible
for benefits under this title for a 5-year period following the date of
such finding.
``SEC. 2203. BENEFIT AMOUNT.
``(a) In General.--The amount of the benefit to which an individual
is entitled under section 2202 for a month shall be an amount equal to
the sum of the weekly benefit amounts for each week ending during such
month. The weekly benefit amount of an individual for a week shall be
equal to the product of the individual's weekly benefit rate (as
determined under subsection (b)) multiplied by a fraction--
``(1) the numerator of which is the number of caregiving
hours of the individual credited to such week (as determined in
subsection (c)); and
``(2) the denominator of which is the number of hours in a
regular workweek of the individual (as determined in subsection
(d)).
``(b) Weekly Benefit Rate.--
``(1) In general.--For purposes of this section, an
individual's weekly benefit rate shall be an amount equal to
the sum of--
``(A) 85 percent of the individual's average weekly
earnings to the extent that such earnings do not exceed
the amount established for purposes of this
subparagraph by paragraph (2);
``(B) 75 percent of the individual's average weekly
earnings to the extent that such earnings exceed the
amount established for purposes of subparagraph (A) but
do not exceed the amount established for purposes of
this subparagraph by paragraph (2);
``(C) 55 percent of the individual's average weekly
earnings to the extent that such earnings exceed the
amount established for purposes of subparagraph (B) but
do not exceed the amount established for purposes of
this subparagraph by paragraph (2);
``(D) 25 percent of the individual's average weekly
earnings to the extent that such earnings exceed the
amount established for purposes of subparagraph (C) but
do not exceed the amount established for purposes of
this subparagraph by paragraph (2); and
``(E) 5 percent of the individual's average weekly
earnings to the extent that such earnings exceed the
amount established for purposes of subparagraph (D) but
do not exceed the amount established for purposes of
this subparagraph by paragraph (2).
``(2) Amounts established.--
``(A) Initial amounts.--For individuals whose
benefit period under this title begins in or before
calendar year 2024, the amount established for purposes
of subparagraphs (A), (B), (C), (D), and (E) of
paragraph (1) shall be \1/52\ of $15,080, $34,248,
$72,000, $100,000, and $250,000, respectively.
``(B) Wage indexing.--For individuals whose benefit
period under this title begins in any calendar year
after 2024, each of the amounts so established shall
equal the corresponding amount established for the
calendar year preceding such calendar year, or, if
larger, the product of the corresponding amount
established with respect to the calendar year 2024 and
the quotient obtained by dividing--
``(i) the national average wage index (as
defined in section 2212) for the second
calendar year preceding such calendar year, by
``(ii) the national average wage index (as
so defined) for 2022.
``(C) Rounding.--Each amount established under
subparagraph (B) for any calendar year shall be rounded
to the nearest $1, except that any amount so
established which is a multiple of $0.50 but not of $1
shall be rounded to the next higher $1.
``(3) Average weekly earnings.--For purposes of this
subsection, an individual's average weekly earnings, as
calculated by the Secretary, shall be equal to the quotient
obtained by dividing--
``(A) the total of the wages and self-employment
income received by the individual during the most
recent 8-calendar quarter period that ends at least 4
months prior to the beginning of the individual's
benefit period; by
``(B) 104.
``(4) Evidence of earnings.--For purposes of determining
the wages and self-employment income of an individual with
respect to an application for benefits under section 2202, the
Secretary shall make such determination on the basis of wage
data provided to the Secretary from the National Directory of
New Hires pursuant to section 453(j)(5) and self-employment
income data provided by the Secretary, except that the
Secretary shall also consider any more recent or additional
evidence of wages or self-employment income the individual
chooses to additionally submit.
``(c) Crediting of Caregiving Hours to a Week.--The number of
caregiving hours of an individual credited to a week as determined
under this subsection shall equal the number of caregiving hours of the
individual occurring during such week, except that--
``(1) such number may not exceed the number of hours in a
regular workweek of the individual (as determined in subsection
(d));
``(2) no caregiving hours may be credited to a week in
which fewer than 4 caregiving hours of the individual occur;
``(3) no caregiving hours of the individual may be credited
to the individual's waiting period, consisting of the first
week during an individual's benefit period in which at least 4
caregiving hours occur (regardless of whether the individual
received paid vacation, paid sick leave, or any other form of
accrued paid time off from the individual's employer during
such week in accordance with section 2202(c)(2)(B)); and
``(4) the total number of caregiving hours credited to
weeks during the individual's benefit period may not exceed the
product of 12 multiplied by the number of hours in a regular
workweek of the individual (as so determined).
``(d) Number of Hours in a Regular Workweek.--For purposes of this
section, the number of hours in a regular workweek of an individual
shall be the number of hours that the individual regularly works in a
week for all employers (or regularly worked in the case of an
individual no longer employed), as determined under guidance to be
issued by the Secretary.
``SEC. 2204. BENEFIT DETERMINATION AND PAYMENT.
``(a) In General.--An individual seeking benefits under section
2202 shall file an application with the Secretary containing the
information described in subsection (b) and such other information as
the Secretary may require. Any information contained in an application
for benefits under section 2202, or in a periodic benefit claim report
filed with respect to such benefits, shall be presumed to be true and
accurate, unless the Secretary demonstrates by a preponderance of the
evidence that information contained in the application or periodic
benefit claim report is false, except that the Secretary shall
establish procedures to validate the identity of the individual filing
the application.
``(b) Required Contents of Initial Application.--An application for
a paid family and medical leave benefit filed by an individual shall
include--
``(1) an attestation that the individual has, or
anticipates having, at least 4 caregiving hours in a week
ending at any time during the period that begins 90 days before
the date on which such application is filed or not later than
180 days after such date;
``(2) except as otherwise provided in this subsection, a
certification, issued by a relevant authority determined under
regulations issued by the Secretary, that contains such
information as the Secretary shall specify in such regulations
as necessary to affirm the circumstances giving rise to the
need for such caregiving hours, which shall be no more than the
information that is required to be stated under section 103(b)
of the Family and Medical Leave Act of 1993 (29 U.S.C.
2613(b));
``(3) an attestation from the individual that notice of the
individual's need to be absent from work during such caregiving
hours has been provided, not later than 7 days after such need
arises, to the individual's employer (except in cases of
hardship or other extenuating circumstances or if the
individual does not have (or no longer has) an employer);
``(4) pay stubs or such other evidence as the individual
may provide demonstrating the individual's wages or self-
employment income during the period described in section
2202(a)(3), except that the Secretary may waive this
requirement in any case in which such evidence is otherwise
available to the Secretary;
``(5) an attestation from the individual stating the number
of hours in a regular workweek of the individual (within the
meaning of section 2203(d)); and
``(6) an attestation from the individual stating that the
leave from employment with respect to which the individual is
filing such application is not employment for which the
individual has received--
``(A) a notice from a State pursuant to subsection
(b)(2)(B) of section 2209 stating that such employment
would be eligible for paid family and medical leave
benefits under a State legacy program described in such
section; or
``(B) a notice from the individual's employer
pursuant to subsection (b)(1)(F)(iv) of section 2210
stating that such employment would be eligible for paid
family and medical leave benefits under an employer-
sponsored program described in such section.
In the case of an individual who applies for a paid family and medical
leave benefit in the anticipation of caregiving hours occurring after
the date of application, the certification described in paragraph (2),
the attestation described in paragraph (3), and the evidence described
in paragraph (4) may be provided after the 1st week in which at least 4
such caregiving hours occur.
``(c) Periodic Benefit Claim Report.--
``(1) In general.--Except as provided in paragraph (2), not
later than 60 days (or such longer period as may be provided in
any case in which the Secretary determines that good cause
exists for an extension) after the end of each month during the
benefit period of an individual entitled to benefits under
section 2202, the individual shall file a periodic benefit
claim report with the Secretary. Such periodic benefit claim
report shall specify the caregiving hours of the individual
that occurred during each week that ended in such month and
shall include such other information as the Secretary may
require. No periodic benefit claim report shall be required
with respect to any week in which fewer than 4 caregiving hours
occurred.
``(2) Retroactive applications.--In the case of an
application filed by an individual for a paid family and
medical leave benefit with a benefit period that begins, in
accordance with section 2202(b)(2), with a month that ends
before the date on which such application is filed, the
individual may include with such application the information
described in the second sentence of paragraph (1) with respect
to each week in the benefit period that ends before such date.
``(d) Determinations and Notice Requirements.--
``(1) Initial application.--
``(A) In general.--The Secretary shall determine
the initial eligibility of an individual applying for
benefits under this title in accordance with section
2202.
``(B) Notices.--To ensure payment of benefits in
the correct amount and that beneficiaries are aware of
the right to appeal a benefit determination of the
Secretary--
``(i) not later than 15 days after each
application for benefits from an individual
under this title is filed, the Secretary shall
provide notice to the individual of--
``(I) the initial determination of
eligibility for such benefits;
``(II)(aa) the calendar quarter
that begins the period described in
section 2202(a)(3) with respect to the
individual, the 8 calendar quarters
used to compute the individual's
average weekly earnings under section
2203(b)(3), and the wages and self-
employment income received by the
individual during each of those 8
quarters as recorded by the Secretary;
and
``(bb) the individual's right under
section 2203(b)(4) to submit more
recent or additional evidence of such
wages or self-employment income,
including a statement that eligibility
could change or benefits could increase
if such additional evidence results in
more recent or higher average weekly
earnings;
``(III) the estimated weekly
benefit amount for a week to which 4
caregiving hours of the individual are
credited;
``(IV) the estimated weekly benefit
amount for a week to which a number of
caregiving hours are credited equal to
the number of hours in a regular
workweek of the individual (as
determined in subsection 2203(d));
``(V) the number of caregiving
hours credited to weeks ending prior to
the date of such application;
``(VI) the beginning and ending
dates of the individual's benefit
period; and
``(VII) the individual's right to
appeal such initial determination in
accordance with the provisions of
section 2205; and
``(ii) in any case in which an individual
submits additional information with respect to
such an application, the Secretary shall
provide an updated notice to the individual
containing the same information provided in the
notice described in clause (i), including a
specific indication of any such information
that has been updated as a result of the
additional information submitted by the
individual.
``(2) Monthly benefit determinations.--
``(A) In general.--On the basis of the information
filed with the Secretary pursuant to subsection (c),
the Secretary shall determine, with respect to an
individual for each week ending in a month, the number
of caregiving hours to be credited to such week in
accordance with section 2203(c).
``(B) Notices.--To ensure payment of benefits in
the correct amount and that beneficiaries are aware of
the right to appeal a benefit determination of the
Secretary, not later than 15 days after each periodic
benefit claim report from an individual is filed (or
after filing of initial application for retroactive
benefits), the Secretary shall provide notice to the
individual specifying--
``(i) whether payment will be made to the
individual for each week to which such periodic
benefit claim report pertains and the amount of
such payment;
``(ii) if the Secretary determines that
payment will not be made for a week or that
payment will be made based on a number of
caregiving hours credited to the week
inconsistent with the number of caregiving
hours specified for such week in such periodic
benefit claim report (or initial application),
the reasons for such determination; and
``(iii) the individual's right to appeal
such determination in accordance with the
provisions of section 2205.
``(3) Changing circumstances.--The Secretary shall issue
regulations to establish a process under which an individual
may notify the Secretary if more than one type of circumstance
gives rise to the need for caregiving hours during the
individual's benefit period. Such caregiving hours shall be
credited to weeks within the benefit period in accordance with
section 2203(c) regardless of circumstance.
``(4) Accessibility of notices.--The Secretary shall take
such actions as are necessary to ensure that any notice to one
or more individuals issued pursuant to this title by the
Secretary is written in simple and clear language.
``(e) Certification of Payment.--Not later than 15 days after the
making of a determination under subsection (d)(2)(A) with respect to
the number of caregiving hours of an individual to be credited to weeks
ending in a month, the Secretary shall certify payment to such
individual of the amount of the paid family and medical leave benefit
for such month.
``(f) Expedited Benefit Payment in Cases of Missing Payment.--The
Secretary shall establish and put into effect procedures under which
expedited payment of benefits under this title will be made to an
individual to whom a benefit payment was due for a month but was not
received by the individual.
``(g) Submission of Required Information.--
``(1) By phone, mail, or electronic means.--To ensure full
access to benefits by all eligible individuals, applicable paid
leave information with respect to an individual may be
submitted to the Secretary by phone, mail, or electronic means.
``(2) By any person.--Any person may submit applicable paid
leave information with respect to an individual, including, as
applicable, the individual's representative, the individual's
employer, or any relevant authority identified under subsection
(b)(2). The Secretary shall promptly notify an individual
whenever any other person submits such information on the
individual's behalf.
``(3) Notice of receipt.--The Secretary shall provide
prompt notice of receipt of all applicable paid leave
information submitted with respect to an individual.
``(4) Definition of applicable paid leave information.--For
purposes of this subsection, the term `applicable paid leave
information' means, with respect to an individual, any
information submitted to the Secretary with respect to the paid
family and medical leave benefits of the individual, including
any initial application, periodic benefit claim report, appeal,
and any other information submitted in support of such
application, report, or appeal.
``SEC. 2205. APPEALS.
``(a) In General.--An individual shall have the right--
``(1) to appeal to the Secretary any determination made
with respect to--
``(A) paid family and medical leave benefits under
section 2202; and
``(B) paid family and medical leave benefits under
an employer-sponsored program described in section 2210
whose initial appeal pursuant to subsection
(b)(1)(F)(iii)(I) of such section results in a
determination unfavorable to the individual; and
``(2) to appeal any final decision of the Secretary by a
civil action brought in the district court of the United States
for the judicial district in which the plaintiff resides, or in
which the principal place of business of the plaintiff sits,
or, if the plaintiff does not reside or such principal place of
business does not sit within any such judicial district, in the
United States District Court for the District of Columbia.
``(b) Procedures.--The Secretary shall establish procedures for
appeals of such determinations that ensure that appeals will be heard
in a timely manner by a decisionmaker who is different from the initial
decisionmaker using procedures that are similar to the procedures used
for appeals of determinations under the Medicare Low-Income Subsidy
program described under section 1860D-14(a)(3)(B)(iv)(II).
``(c) Authority to Issue and Enforce Subpoenas.--
``(1) In general.--For the purpose of any hearing,
investigation, or other proceeding authorized or directed under
this title, the Secretary shall have power to issue subpoenas
requiring the attendance and testimony of witnesses and the
production of any evidence that relates to any matter under
investigation or in question before the Secretary. Such
attendance of witnesses and production of evidence at the
designated place of such hearing, investigation, or other
proceeding may be required from any place in the United States
or in any Territory or possession thereof.
``(2) Service; witnesses.--Subpoenas of the Secretary shall
be served by anyone authorized by the Secretary--
``(A) by delivering a copy thereof to the
individual named therein; or
``(B) by registered mail or by certified mail
addressed to such individual at his last dwelling place
or principal place of business.
A verified return by the individual serving the subpoena
setting forth the manner of service, or, in the case of service
by registered mail or by certified mail, the return post-office
receipt therefor signed by the individual so served, shall be
proof of service. Witnesses so subpoenaed shall be paid the
same fees and mileage as are paid witnesses in the district
courts of the United States.
``(3) Contumacy or refusal to obey a subpoena.--
``(A) In general.--In case of contumacy by, or
refusal to obey a subpoena duly served upon, any
person, any district court of the United States for the
judicial district in which the person charged with
contumacy or refusal to obey is found or resides or
transacts business, upon application by the Secretary,
shall have jurisdiction to issue an order requiring
such person to appear and give testimony, or to appear
and produce evidence, or both. Any failure to obey such
order of the court may be punished by the court as
contempt thereof.
``(B) Treatment of employers.--In the case of
contumacy by, or refusal to obey a subpoena duly served
upon, any employer, the Secretary shall impose such
penalties against the employer as the Secretary
determines may apply pursuant to section 2210(f).
``SEC. 2206. STEWARDSHIP.
``(a) Promoting Equity.--The Secretary shall conduct a robust
program to analyze and prevent disparities on the basis of race, color,
ethnicity, religion, sex, sexual orientation, gender identity,
disability, age, national origin, family composition, or living
arrangements with respect to the benefits provided under this title and
individuals' access to such benefits.
``(b) Underpayments and Overpayments.--
``(1) In general.--Whenever the Secretary determines that
more or less than the correct amount of payment has been made
to any individual under this title, the Secretary shall
promptly notify the individual of such determination and inform
the individual of the right to appeal such determination in
accordance with the provisions of section 2205. Proper
adjustment or recovery shall be made, under regulations
prescribed by the Secretary, as follows:
``(A) Underpayments.--With respect to payment to an
individual of less than the correct amount, the
Secretary shall promptly pay the balance of the amount
due to such underpaid individual.
``(B) Overpayments.--
``(i) In general.--With respect to payment
to an individual of more than the correct
amount, the Secretary shall decrease any
payment for a month under this title to which
such overpaid individual is entitled (except
that the weekly benefit amounts for each week
ending during such month as determined under
section 2203(a) may not be decreased below the
amount specified in clause (ii) with respect to
such weekly benefit amounts of the individual),
or shall require such overpaid individual to
refund the amount in excess of the correct
amount, or shall apply any combination of the
foregoing.
``(ii) Limitation on recovery.--
``(I) Amount specified.--The amount
specified in this clause with respect
to a weekly benefit amount of an
individual for a week is an amount
equal to the weekly benefit amount that
would be determined for the individual
for such week under section 2203(a) if
the individual's weekly benefit rate
(as determined under section 2203(b))
were equal to the applicable dollar
amount as determined under subclause
(II).
``(II) Applicable dollar amount.--
For purposes of subclause (I), the
applicable dollar amount is--
``(aa) with respect to a
weekly benefit amount
determined for a week ending in
a month in or before calendar
year 2024, $315; and
``(bb) with respect to a
weekly benefit amount
determined for a week ending in
a month in any calendar year
after 2024, the corresponding
amount established with respect
to a weekly benefit amount
determined for a week ending in
a month in the calendar year
preceding such calendar year
or, if larger, the product of
the corresponding amount
specified in item (aa) with
respect to a weekly benefit
amount determined for a week
ending in a month in calendar
year 2024 multiplied by the
quotient obtained by dividing--
``(AA) the national
average wage index (as
defined in section
2212) for the second
calendar year preceding
such calendar year, by
``(BB) the national
average wage index (as
so defined) for 2022.
``(2) Waiver of certain overpayments.--In any case in which
more than the correct amount of payment has been made, there
shall be no adjustment of payments to, or recovery by the
United States from, any individual who was without fault in
connection with the overpayment if such adjustment or recovery
would defeat the purpose of this title or would be against
equity and good conscience, or would impede efficient or
effective administration of this title, as determined by the
Secretary under procedures to be established by the Secretary.
``(3) Liability of certifying or disbursing officer.--No
certifying or disbursing officer shall be held liable for any
amount certified or paid by him to any individual where the
adjustment or recovery of such amount is waived under paragraph
(2), or where adjustment under paragraph (1) is not completed
prior to the death of the individual against whose benefits
deductions are authorized.
``(c) Penalties and Other Procedures.--
``(1) In general.--Whoever--
``(A) knowingly and willfully makes or causes to be
made any false statement or representation of a
material fact in any application for any benefit under
this title,
``(B) at any time knowingly and willfully makes or
causes to be made any false statement or representation
of a material fact for use in determining rights to any
such benefit,
``(C) having knowledge of the occurrence of any
event affecting (A) his initial or continued right to
any such benefit, or (B) the initial or continued right
to any such benefit of any other individual in whose
behalf he has applied for or is receiving such benefit,
conceals or fails to disclose such event with an intent
fraudulently to secure such benefit either in a greater
amount or quantity than is due or when no such benefit
is authorized,
``(D) having made application to receive any such
benefit for the use and benefit of another and having
received it, knowingly and willfully converts such
benefit or any part thereof to a use other than for the
use and benefit of such other person, or
``(E) conspires to commit any offense described in
any of subparagraphs (A) through (C),
shall be fined under title 18, United States Code, imprisoned
not more than 5 years, or both.
``(2) Exclusion from participation.--
``(A) In general.--No person or entity who is
convicted of a violation of paragraph (1) may
represent, or submit evidence on behalf of, an
individual applying for, or receiving, benefits under
this title.
``(B) Notice, effective date, and period of
exclusion.--
``(i) In general.--An exclusion under this
paragraph shall be effective at such time, for
such period, and upon such reasonable notice to
the public and to the individual excluded as
may be specified in regulations consistent with
clause (ii).
``(ii) Effective date.--Such an exclusion
shall be effective with respect to services
furnished to any individual on or after the
effective date of the exclusion. Nothing in
this paragraph may be construed to preclude
consideration of any medical evidence derived
from services provided by a health care
provider before the effective date of the
exclusion of the health care provider under
this paragraph.
``(iii) Period of exclusion.--
``(I) In general.--The Secretary
shall specify, in the notice of
exclusion under clause (i), the period
of the exclusion.
``(II) Previous offense.--In the
case of the exclusion of a person or
entity under subparagraph (A) who has
previously been subject to an exclusion
under such subparagraph--
``(aa) if the person or
entity has previously been
subject to such an exclusion
only once, the period of
exclusion shall be not less
than 10 years; and
``(bb) if the person or
entity has previously been
subject to such an exclusion
more than once, the exclusion
shall be permanent.
``(C) Notice to state licensing agencies.--The
Secretary shall--
``(i) promptly notify the appropriate State
or local agency or authority having
responsibility for the licensing or
certification of a person or entity excluded
from participation under this section of the
fact and circumstances of the exclusion;
``(ii) request that appropriate
investigations be made and sanctions invoked in
accordance with applicable State law and
policy; and
``(iii) request that the State or local
agency or authority keep the Secretary fully
and currently informed with respect to any
actions taken in response to the request.
``(D) Notice, hearing, and judicial review.--Any
person or entity who is excluded (or directed to be
excluded) from participation under this section is
entitled to reasonable notice and opportunity for a
hearing by the Secretary and to judicial review of such
final agency decision to the same extent as is provided
in section 2205.
``(E) Application for termination of exclusion.--
``(i) In general.--An individual excluded
from participation under this paragraph may
apply to the Secretary, in the manner specified
by the Secretary in regulations and at the end
of the period of exclusion provided under
subparagraph (B)(iii) and at such other times
as the Secretary may provide, for termination
of the exclusion effected under this paragraph.
``(ii) Criteria for termination.--The
Secretary may terminate the exclusion if the
Secretary determines, on the basis of the
conduct of the applicant which occurred after
the date of the notice of exclusion or which
was unknown to the Secretary at the time of the
exclusion, that--
``(I) there is no basis under
subparagraph (A) for a continuation of
the exclusion; and
``(II) there are reasonable
assurances that the types of actions
which formed the basis for the original
exclusion have not recurred and will
not recur.
``(F) Availability of records of excluded persons
and entities.--Nothing in this section shall be
construed to have the effect of limiting access by any
applicant or beneficiary under this title or the
Secretary to records maintained by any person or entity
in connection with services provided to the applicant
or beneficiary prior to the exclusion of such person or
entity under this paragraph.
``(G) Reporting requirement.--Any person or entity
participating in, or seeking to participate in, the
program under this title shall inform the Secretary, in
such form and manner as the Secretary shall prescribe
by regulation, whether such person or entity has been
convicted of a violation under paragraph (1).
``(d) Redetermination of Entitlement.--
``(1) In general.--
``(A) Procedures.--The Secretary shall immediately
redetermine the entitlement of individuals to paid
family and medical leave benefit benefits under this
title if there is reason to believe that fraud or
similar fault was involved in the application of the
individual for such benefits, unless a United States
attorney, or equivalent State prosecutor, with
jurisdiction over potential or actual related criminal
cases, certifies, in writing, that there is a
substantial risk that such action by the Secretary with
regard to beneficiaries in a particular investigation
would jeopardize the criminal prosecution of a person
involved in a suspected fraud.
``(B) Disregard of certain evidence.--When
redetermining the entitlement, or making an initial
determination of entitlement, of an individual under
this title, the Secretary shall disregard any evidence
if there is reason to believe that fraud or similar
fault was involved in the providing of such evidence.
``(2) Similar fault described.--For purposes of paragraph
(1), similar fault is involved with respect to a determination
if--
``(A) an incorrect or incomplete statement that is
material to the determination is knowingly made; or
``(B) information that is material to the
determination is knowingly concealed.
``(3) Termination of benefits.--If, after redetermining
pursuant to this subsection the entitlement of an individual to
monthly insurance benefits, the Secretary determines that there
is insufficient evidence to support such entitlement, the
Secretary may terminate such entitlement and may treat benefits
paid on the basis of such insufficient evidence as
overpayments.
``SEC. 2207. FUNDING FOR BENEFIT PAYMENTS, GRANTS, AND PROGRAM
ADMINISTRATION.
``(a) Funding for Benefit Payments and Grants.--
``(1) In general.--There are appropriated, out of any funds
in the Treasury not otherwise appropriated, such sums as may be
necessary to pay benefits under section 2202 and for grants
under sections 2209 and 2210, subject to paragraph (2).
``(2) Limitation.--In no case shall a grant under section
2209 exceed a total amount (for all applicable individuals)
equivalent to the sum of benefits paid (including, in the case
of a grant under section 2209, the full cost of administering
such benefits) for each applicable individual (as described
under paragraph (3)) calculated on the basis of a total number
of hours of leave during the individual's benefit period equal
to--
``(A) the product of 12 multiplied by the number of
hours in a regular workweek of the individual (within
the meaning of section 2203(d)), minus
``(B) the number of caregiving hours (as defined in
section 2202(c)) of such individual credited in total
to months during such benefit period under this title.
``(3) Applicable individual.--For purposes of paragraph
(2), an `applicable individual' is an individual, with respect
to whom a grant under section 2209 is awarded, receiving paid
family or medical leave benefits for days of leave under a paid
family and medical leave benefit program of a legacy State (as
defined in section 2209(b)).
``(b) Funding for Program Administration.--There are appropriated,
out of any funds in the Treasury not otherwise appropriated, such sums
as may be necessary for the following purposes (including through the
use of grants or contracts except where otherwise specified):
``(1) Costs related to taking applications, responding to
public inquiries, assisting with problem resolution, taking
requests for appeals, and the provision of other necessary
assistance to individuals applying for or receiving benefits
under this title, including the following:
``(A) Costs related to staffing a national toll-
free telephone number (which shall not be carried out
through the use of grants or contracts).
``(B) Costs related to technology to support a
national toll-free telephone number and to technology
related to the design, construction and maintenance of
an online application and customer service portal.
``(C) Costs related to mailed notices.
``(2) Costs related to determining eligibility (which shall
not be carried out through the use of grants or contracts).
``(3) Costs related to ensuring program integrity and
combating fraud, including by issuing regulations to do the
following:
``(A) Ensure identity validation of applicants and
beneficiaries.
``(B) Verify the professional credentials of
relevant authorities who provide certifications
pursuant to section 2204(b)(2).
``(C) Ensure the accuracy of any wage and self-
employment income data used in the administration of
this title.
``(D) Ensure that the attestation requirement in
section 2204(b)(3) has been satisfied for each
applicant and beneficiary.
``(E) Ensure the accuracy of periodic benefit claim
reports.
``(F) Provide for post-effectuation quality review
of approved claims and quality review of denied claims
(which shall not be carried out through the use of
grants or contracts).
``(4) Costs related to certification of payment of benefits
(which shall not be carried out through the use of grants or
contracts).
``(5) Costs related to appeals (which shall not be carried
out through the use of grants or contracts).
``(6) Costs related to the administration by the Secretary
of the legacy State grant program under section 2209 and the
employer-sponsored plan grant program under section 2210.
``(7) Costs related to developing systems of records for
purposes of administering the program under this title (which
shall not be carried out through the use of grants or
contracts, except that costs related to technology to support
such systems of records may be carried out through the use of
grants or contracts).
``(8) Costs related to data exchange and sharing, for which
the Secretary shall enter into an agreement with relevant data
sources including the National Directory of New Hires and shall
seek to enter into agreements with States to obtain such
information as the Secretary may require to determine
eligibility and benefits payable under section 2202, administer
the grants in sections 2209 and 2210, and verify such other
information as the Secretary determines may be necessary in
carrying out the provisions of this title.
``(9) Costs related to the training of employees, grantees,
and contractors, including training relating to the prevention
of discrimination in the administration of this title on the
basis of race, color, ethnicity, religion, sex, sexual
orientation, gender identity, disability, age, national origin,
family composition, or living arrangements.
``(10) Costs related to providing technical assistance to
legacy States under section 2209 and to employers or third
party administrators designated by an employer of paid leave
programs under section 2210.
``(11) Costs related to providing technical assistance to
small business employers with respect to the requirements of
the small business assistance grants in section 2211 and the
process by which their employees may apply for benefits under
section 2202; and
``(12) Any other costs necessary for the effective
administration of this title.
``SEC. 2208. FUNDING FOR OUTREACH, PUBLIC EDUCATION, AND RESEARCH.
``(a) Funding for Outreach and Public Education.--There are
appropriated, out of any funds in the Treasury not otherwise
appropriated, $150,000,000 for each of fiscal years 2022 through 2026
for the Secretary to, with respect to benefits provided by the program
under this title--
``(1) engage in a robust program of culturally and
linguistically competent education and outreach toward ensuring
awareness of and access to such benefits;
``(2) provide information to potential beneficiaries
regarding eligibility requirements, the claims process, benefit
amounts, maximum benefits payable, notice requirements, the
appeals process, and nondiscrimination rights, including
specific benefit estimates based on the average weekly earnings
of a potential beneficiary; and
``(3) provide employers with a model notice to be used to
inform employees of the availability of such benefits.
``(b) Funding for Research.--There are appropriated, out of any
funds in the Treasury not otherwise appropriated, $150,000,000 for each
of fiscal years 2023 through 2027 for the Secretary to--
``(1) develop and carry out grants for research for the
purpose of ensuring full access to the benefits provided by the
program under this title, including through the detection and
prevention of disparities on the basis of race, color,
ethnicity, religion, sex, sexual orientation, gender identity,
disability, age, national origin, income, language, job
classification, family composition, or living arrangements; and
``(2) annually make available to the public beginning in
fiscal year 2024 a report that includes--
``(A) the number of individuals who received such
benefits;
``(B) the purposes and durations for which such
benefits were received;
``(C) an analysis of benefit use by occupation,
industry, wage levels, employer size, and geography;
``(D) an analysis of disparities identified by the
grants for research authorized under this subsection on
the basis of race, color, ethnicity, religion, sex,
sexual orientation, gender identity, disability, age,
national origin, family composition, or living
arrangements;
``(E) a description of the actions by the Secretary
to prevent disparities and ensure full access to the
benefits provided by the program under this title;
``(F) a comparative analysis of paid family and
medical leave benefits received by individuals through
the program under section 2202, through a legacy State
paid family and medical leave program described in
section 2209, or through an employer-sponsored program
described in section 2210 that takes into account the
number of individuals receiving benefits, the
characteristics of the benefits received, and the
patterns of leave-taking under each program;
``(G) the number of employers who received a
reimbursement grant under section 2210 and the number
of employees of such employers who received paid family
and medical leave benefits under an employer-sponsored
program described in such section; and
``(H) the number of employers who received one or
more small business assistance grants under section
2211 and the total number of such grants provided.
``SEC. 2209. FUNDING FOR STATE ADMINISTRATION OPTION FOR LEGACY STATES.
``(a) In General.--In each calendar year beginning with 2024, the
Secretary shall make a grant to each State that, for the calendar year
preceding such calendar year (or, in the case of a grant under this
section in 2024, for the portion of such preceding calendar year
occurring after June 30), was a legacy State and that met the data
sharing requirements of subsection (c), in an amount equal to the
lesser of--
``(1) an amount, as estimated by the Secretary, in
consultation with the Secretary of Labor, equal to the total
amount of paid family and medical leave benefits that would
have been paid under section 2202 (including the full Federal
cost of administering such benefits) to individuals who
received benefits under a State program described in subsection
(b) during the calendar year preceding such calendar year (or,
in the case of a grant under this section in 2024, for the
portion of such preceding calendar year occurring after June
30) if the State had not been a legacy State for such preceding
calendar year (or, in the case of a grant under this section in
2024, for the portion of such preceding calendar year occurring
after June 30); or
``(2) an amount equal to the total cost of the State paid
family and medical leave program described in subsection (b)
for the calendar year preceding such calendar year (or, in the
case of a grant under this section in 2024, for the portion of
such preceding calendar year occurring after June 30),
including--
``(A) the total amount of paid family and medical
leave benefits that would have been paid to individuals
under such program for leave that is exempt under such
program on account of being otherwise paid under a
program provided by such individual's employer; and
``(B) the full cost to the State of administering
such program.
In any case in which, during any calendar year, the Secretary has
reason to believe that a State will be a legacy State and meet the data
sharing requirements of subsection (c) for such calendar year, the
Secretary may make estimated payments during such calendar year of the
grant which would be paid to such State in the succeeding calendar
year, to be adjusted as appropriate in the succeeding calendar year.
``(b) Legacy State.--For purposes of this section, the term `legacy
State' for a calendar year means a State that the Secretary, in
consultation with the Secretary of Labor, determines--
``(1) has enacted, not later than the date of enactment of
this title, a State law that provides paid family and medical
leave benefits; and
``(2) for any calendar year that begins on or after the
date that is 3 years after the date of enactment of this title,
has in effect, throughout such calendar year, a State program
enacted into law--
``(A) that provides paid family and medical leave
benefits--
``(i) for at least 12 full workweeks of
leave during each 12-month period to at least
all of those individuals in the State who would
be eligible for paid family and medical leave
benefits under section 2202 (without regard to
section 2202(c)(2)(D)) during any part of such
calendar year, provided that such State
program--
``(I) shall provide paid family and
medical leave benefits for leave from
employment by the State or any
political subdivision thereof, except
that any State or local employees
subject to a collective bargaining
agreement may be excluded from such
coverage with the agreement of 90
percent of the employees covered by the
collective bargaining agreement; and
``(II) may provide such benefits
for leave from Federal employment; and
``(ii) at a wage replacement rate that is
at least equivalent to the wage replacement
rate under the program under this title
(without regard to section 2202(c)(2)(D)); and
``(B) that provides an annual notice to each
individual whose employment would be eligible for such
benefits under the State program.
``(c) Data Sharing.--As a condition of receiving a grant under
subsection (a) in a calendar year, a State shall enter into an
agreement with the Secretary under which the State shall provide the
Secretary--
``(1) with information, to be provided periodically as
determined by the Secretary, concerning individuals who
received a paid leave benefit under a State program described
in subsection (b), including each individual's name,
information to establish the individual's identity, dates for
which such paid leave benefits were paid, the amount of such
paid leave benefit, and, to the extent available, such other
information concerning such individuals as the Secretary may
require for the purpose of carrying out this section and
section 2202(c)(2)(D);
``(2) not later than July 1 of such calendar year, the
amount described in subsection (a)(2) for the calendar year
preceding such calendar year; and
``(3) such other information as the Secretary determines
may be necessary in carrying out the provisions of this title,
including for the purposes of promoting equity as described
under section 2206(a) and for research described under section
2208(b).
``(d) Funding for Transitional Costs for Legacy States.--
``(1) In general.--There are appropriated to the Secretary,
out of any funds in the Treasury not otherwise appropriated,
such sums as necessary for grants in accordance with this
subsection.
``(2) Transition grants.--The Secretary shall make a grant
under this subsection to each State that--
``(A) is a legacy State for the calendar year in
which occurs the date of enactment of this title;
``(B) certifies to the Secretary that the State
intends to remain a legacy State and meet the data
sharing requirements of subsection (c) at least through
the first calendar year that begins on or after the
date that is 3 years after the date of enactment of
this title; and
``(C) agrees to repay the full amount of such grant
if the State fails to remain a legacy State and meet
the data sharing requirements of subsection (c) as
certified in subparagraph (B).
``(3) Amount of grant.--The amount of a grant provided to a
State under this subsection shall be equal to \1/2\ of the sum
of the State's expenditures from the date of enactment of this
title through the calendar year described in paragraph (2)(B)
on--
``(A) the costs of creating new information
technology systems as needed to implement the data
sharing requirements of subsection (c) (including
staffing costs related to such systems); and
``(B) other necessary costs incurred by the State
to meet the requirements of subsection (b)(2)(A)(ii).
``(4) Estimated advance payments.--The Secretary may make
estimated payments of a grant provided to a State under this
subsection for any calendar year, to be adjusted as appropriate
in the succeeding calendar year.
``SEC. 2210. REIMBURSEMENT OPTION FOR EMPLOYER-SPONSORED PAID LEAVE
BENEFITS.
``(a) In General.--For each calendar year beginning with 2023, the
Secretary shall make a grant to each employer that is an eligible
employer for such calendar year in an amount equal to--
``(1) in the case of an eligible employer sponsoring a paid
family and medical leave benefit program with respect to which
benefits are awarded and paid under a contract with an insurer,
an amount equal to 90 percent of the product of--
``(A) the projected national average cost per
employee of providing paid family and medical leave
benefits as determined by the Secretary for such
calendar year under subsection (c)(3) (or, in the case
of calendar year 2023, \1/2\ of such projected national
average cost); multiplied by
``(B) the number of employees (pro-rated for part-
time employees) covered under the program for such
calendar year (or, in the case of calendar year 2023,
for the portion of such calendar year occurring after
June 30); and
``(2) in the case of an eligible employer sponsoring a
self-insured paid family and medical leave benefit program with
respect to which benefits are awarded and paid directly by the
employer (or by a third party administrator on behalf of the
employer), an amount equal to 90 percent of--
``(A) the amount of benefits paid under the program
for such calendar year to individuals for up to 12
weeks of leave per individual (or, in the case of
calendar year 2023, for the portion of such calendar
year occurring after June 30); or
``(B) if lesser, the product of the national
average weekly benefit amount paid under section
2203(a) during such calendar year (or, in the case of
calendar year 2023, during the portion of such calendar
year occurring after June 30) multiplied by the number
of weeks of leave (up to 12 per individual) paid by the
employer for all individuals under the program for the
calendar year (or such portion in the case of calendar
year 2023).
``(b) Eligibility; Application Requirements.--
``(1) In general.--For purposes of subsection (a), an
eligible employer for a calendar year is an employer (other
than the Federal Government or the government of any State (or
political subdivision thereof) that is a legacy State for such
calendar year under section 2209) that satisfies all of the
following requirements:
``(A) Non-legacy state employees.--The employer has
one or more employees during such calendar year whose
employment with such employer would not be eligible for
paid family or medical leave benefits under the law of
any legacy State (as defined in section 2209(b)) for
such calendar year.
``(B) Application; submission of required
information.--Not later than the certification deadline
specified in paragraph (2)(A) for such calendar year,
the employer--
``(i) notifies the Secretary that the
employer intends to seek a grant under this
section for such calendar year;
``(ii) certifies to the Secretary that the
employer will have in effect during such
calendar year a paid family and medical leave
benefit program that meets the requirements of
subsection (c) and, not later than the
submission deadline specified in paragraph
(2)(B) for such calendar year, provides all
documentation relating to such program as the
Secretary may request; and
``(iii) pays an application fee of $1,000
(or $200 in the case of a renewed application).
``(C) Approval by the secretary.--The paid family
and medical leave benefit program referred to in
subparagraph (B) is subsequently approved by the
Secretary as meeting all applicable requirements.
``(D) Information submission requirement.--At the
time of application for such grant for each calendar
year, the employer--
``(i) submits to the Secretary--
``(I) an attestation that the paid
family and medical leave benefit
program referred to in subparagraph (B)
will remain in effect during the whole
of such calendar year (or, in the case
of a program not in effect at the
beginning of such calendar year, an
attestation that such program will
remain in effect until the end of such
calendar year); and
``(II) with respect to each
employee of the employer covered by the
program for such calendar year, the
employee's name, information to
establish the employee's identity, and
in the case of a part-time employee
(for purposes of determining the number
of employees (pro-rated for part-time
employees) covered under the program
for such calendar year under subsection
(a)(1)(B)), the number of hours the
employee regularly works in a week; and
``(ii) agrees to submit information to the
Secretary as described in subsection (e).
``(E) Maintenance of records.--The employer agrees
to retain all records relating to the employer's paid
family and medical leave benefit program for not less
than 3 years.
``(F) Job protections and other employee rights.--
As a condition of the grant, the employer agrees--
``(i) that, on return from leave under the
program described in subparagraph (B), the
individual taking such leave will--
``(I) be restored by the employer
to the position of employment held by
the individual when the leave
commenced; or
``(II) be restored to an equivalent
position with equivalent employment
benefits, pay, and other terms and
conditions of employment;
``(ii) to maintain coverage for the
individual under any `group health plan' (as
defined in section 2212) for the duration of
such leave at the level and under the
conditions coverage would have been provided if
the individual had continued in employment
continuously for the duration of such leave;
``(iii) in any case in which an employee
receives an adverse determination from the
employer (or administering entity) with respect
to paid family and medical leave benefits under
the program described in subparagraph (B)--
``(I) to provide opportunity for
the employee to appeal such adverse
determination to the employer (or
administering entity); and
``(II) in any case in which the
employee elects to appeal the results
of such initial appeal to the Secretary
pursuant to section 2205(a)(1)(B) and
the final decision of the Secretary is
in the employee's favor, to provide for
the payment of such paid family and
medical leave benefits in addition to
the costs to the Secretary of such
secondary appeal;
``(iv) to provide annual notice to all
employees of the availability of paid family
and medical leave benefits under the program
described in subparagraph (B) and of the right
to appeal any adverse determination with
respect to such benefits; and
``(v) not to impose any fee on any employee
related to the receipt of paid family and
medical leave benefits under the program
described in subparagraph (B).
``(G) Additional assurances.--The employer provides
assurances that the employer (or administering
entity)--
``(i) will not interfere with, restrain, or
deny the exercise of, or the attempt to
exercise, any right provided under such policy;
``(ii) will notify an employee in any case
in which the employee is provided reimbursable
benefits; and
``(iii) will not discharge, or in any other
manner discriminate against, any individual for
opposing any practice prohibited by such
policy.
``(H) Special conditions in the case of certain
employers.--
``(i) Self-insured private employers.--In
the case of a paid family and medical leave
benefit program of an employer (other than a
State or political subdivision thereof) with
respect to which benefits are awarded and paid
directly by the employer (or by a third party
administrator on behalf of the employer)--
``(I) such employer employs at
least 50 employees described in
subparagraph (A);
``(II) such benefits are guaranteed
by a surety bond held by the employer;
and
``(III) such employer (or
administering entity) holds funds in a
dedicated account for such benefits not
used for any other business purpose.
``(ii) Self-insured state and local
employers.--In the case of a paid family and
medical leave benefit program of an employer
that is a State (or political subdivision
thereof) with respect to which benefits are
awarded and paid directly by the employer (or
by a third party administrator on behalf of the
employer), such benefits are negotiated
pursuant to a collective bargaining agreement.
``(2) Timing of application.--
``(A) Certification.--The certification deadline
specified in this subparagraph for a calendar year is--
``(i) for calendar year 2023, March 31,
2023; and
``(ii) for any calendar year after 2023, 90
days before the beginning of such calendar
year,
or, if later, the date that is 90 days before a plan
described in paragraph (1)(B) first goes into effect.
``(B) Submission of documentation.--The submission
deadline specified in this subparagraph for a calendar
year is--
``(i) for calendar year 2023, May 15, 2023;
and
``(ii) for any calendar year after 2023, 45
days before the beginning of such calendar
year,
or, if later, the date that is 45 days before a plan
described in paragraph (1)(B) first goes into effect.
``(c) Employer Program Requirements.--
``(1) In general.--A paid family and medical leave benefit
program shall not be considered to meet the requirements of
this subsection unless such program consists of a written
employer policy that provides for the payment, through one or
more employee benefit plans, of family and medical leave
benefits, which may be guaranteed through an insurer and which
may be administered by an insurer or by another third-party
entity, that includes each element in the model template
described in paragraph (2), and that provides for each of the
following:
``(A) The provision of such benefits to all
employees described in subsection (b)(1)(A), regardless
of length of service, job type, membership in a labor
organization, seniority status, or any other employee
classification.
``(B) Each of the job protections and other
employee rights described in subsection (b)(1)(F).
``(C) Each of the assurances described in
subsection (b)(1)(G).
``(D) Submission of information to the Secretary as
described in subsection (e).
``(2) Model template.--Not later than July 1, 2022, the
Secretary shall make available to eligible employers a model
template of a written policy providing paid family and medical
leave benefits--
``(A) at a wage replacement rate that is at least
as great as the wage replacement rate that an employee
would receive under the program under this title
(without regard to section 2202(c)(2)(C));
``(B) for a total number of weeks of paid leave
that is at least as great as the total number of weeks
of paid leave that an employee would receive under the
program under this title (without regard to such
section);
``(C) for all of the reasons for which an
individual would be considered to be engaged in
qualified caregiving under section 2202(c)(2)(A),
regardless of any pre-existing medical conditions;
``(D) for leave which may be taken intermittently
or on a reduced leave schedule;
``(E) that does not impose any fee on any employee
related to the receipt of such benefits.
``(F) which must be paid not less frequently than
monthly;
``(G) for which applications must be processed and
notifications provided at least as quickly as is
provided under section 2204 for benefits provided under
section 2202(a); and
``(H) for which any information contained in an
application for such benefits shall be presumed to be
true and accurate, unless the employer (or
administering entity) demonstrates by a preponderance
of the evidence that information contained in the
application is false;
``(3) National average cost.--Not later than October 1 of
the calendar year before each calendar year beginning with
2023, the Secretary shall determine the projected national
average cost per employee for such calendar year of a paid
family and medical leave benefit program that meets the
requirements of paragraph (2) (assuming administrative costs no
greater than the average or projected average administrative
costs of providing benefits under section 2202), taking into
account projected benefit levels, duration of benefits, and
frequency of use of the program in such calendar year.
``(d) Timing of Payment; Penalty for Late Filing.--
``(1) Insured employers.--A grant paid under this section
for a calendar year to an eligible employer described in
subsection (a)(1) shall be paid by the Secretary not later than
30 days after the beginning of such calendar year, except that
in the case of a grant under this section for calendar year
2023, such grant shall be paid by the Secretary not later than
August 1, 2023.
``(2) Self-insured employers.--A grant paid under this
section for a calendar year to an eligible employer described
in subsection (a)(2) shall be paid by the Secretary not later
than March 31 of the calendar year succeeding such calendar
year.
``(3) Penalty for late filing.--In any case in which an
eligible employer seeking a grant under this subsection for a
calendar year fails to submit all required documentation by the
submission deadline for such calendar year as required under
subsection (b)(1)(B)(ii)--
``(A) the grant for such calendar year for such
employer shall not be paid until 45 days after the date
of payment otherwise specified in paragraph (1) or (2),
as applicable; and
``(B) the amount of such grant shall be reduced by
2 percent for each 7 days by which such submission
deadline is exceeded.
``(e) Information Submission.--As a condition of receiving a grant
under subsection (a) for a calendar year, an employer shall provide the
Secretary with information, at such times and in such manner as
determined by the Secretary, concerning individuals who received a paid
leave benefit under the paid family and medical leave benefit program
of the employer, including each individual's name, information to
establish the individual's identity, dates for which such paid leave
benefits were paid, the amount of such paid leave benefit, and, to the
extent available, such other information concerning such individuals as
the Secretary may require for the purpose of carrying out this section
and section 2202(c)(2)(C), and for otherwise carrying out the
provisions of this title, including for the purposes of promoting
equity as described under section 2206(a) and for research described
under section 2208(b).
``(f) Enforcement.--
``(1) In general.--The Secretary shall conduct periodic
reviews of employers receiving grants under this section (and
of entities administering such grants). The Secretary may
withdraw approval of the paid family and medical leave benefit
program of an employer in any case in which the Secretary finds
that the employer (or administering entity) has violated any
requirement of this section, and may disqualify an employer (or
administering entity) from receiving (or administering)
subsequent grants under this section in the case of repeated
violations.
``(2) Penalties relating to appeals.--In any case in which
the Secretary determines that a pattern exists with respect to
an employer (or administering entity) in which the employer (or
administering entity) has incorrectly denied claims for paid
leave benefits under the employer-sponsored program and such
claims have subsequently been approved by the Secretary
pursuant to an appeal described in section 2205(a)(1)(B), the
Secretary may impose such penalties on the employer (or
administering entity) as the Secretary deems appropriate, which
may include a reduction in, or disqualification from receiving
(or administering), subsequent grants under this section.
``(3) Penalties on administering entities.--In the case of
a third-party entity administering a paid family and medical
leave benefit program of an employer, such entity shall notify
such employer in any case in which a penalty is imposed under
this subsection on the administering entity not later than 30
days after the date on which such penalty has been imposed. In
any case in which the Secretary determines that a pattern of
misconduct exists with respect to an entity administering
benefits under this section for multiple employers, the
Secretary may disqualify such entity from administering
employer-sponsored programs receiving subsequent grants under
this section.
``(4) Employer and administrator appeals.--An employer (or
administering entity) with respect to which a penalty is
imposed under this subsection may appeal such decision to the
Secretary only if such appeal is filed with the Secretary not
later than 60 days after the date of such decision.
``(g) Greater Benefits Permitted.--Nothing in this section shall be
construed to prohibit an eligible employer from providing paid family
and medical leave benefits that exceed the requirements described in
this section.
``SEC. 2211. FUNDING FOR SMALL BUSINESS ASSISTANCE.
``(a) In General.--There are appropriated, out of any funds in the
Treasury not otherwise appropriated, such sums as may be necessary for
grants in accordance with this section.
``(b) Small Business Assistance Grants.--The Secretary shall make a
grant to each eligible employer (as defined in subsection (g)) who
employs a covered individual (as so defined) if such eligible employer
satisfies the requirements of subsection (c).
``(c) Grant Requirements.--An eligible employer seeking a grant
under this section with respect to a covered individual described in
subsection (b) shall--
``(1) not later than 90 days after such individual returns
from qualified leave (as defined in subsection (g)) from the
employer, submit an application to the Secretary in such manner
as the Secretary shall provide;
``(2) attest to the Secretary that the employer reasonably
expects to, during the period in which such individual is
taking such qualified leave, incur costs attributable to
replacing the labor of such individual during such period in
excess of the wages that would be paid to the individual during
such period if such leave were not taken;
``(3) agree that, on return from such qualified leave, the
individual will--
``(A) be restored by the employer to the position
of employment held by the individual when the leave
commenced; or
``(B) be restored to an equivalent position with
equivalent employment benefits, pay, and other terms
and conditions of employment;
``(4) agree to maintain coverage for the individual under
any `group health plan' (as defined in section 2212) for the
duration of such qualified leave at the level and under the
conditions coverage would have been provided if the individual
had continued in employment continuously for the duration of
such leave;
``(5) upon the award of such grant, notify the individual
of their rights under paragraphs (3) and (4).
``(d) Amount of Grant.--The amount of a grant to an eligible
employer with respect to a covered individual shall be an amount equal
to the product of 2.5 multiplied by the average weekly wage of the
State in which the individual's worksite is located for the most recent
calendar year. For purposes of this subsection, the average weekly wage
of a State for a calendar year shall be determined and annually
published by the Secretary on the basis of data prepared by the Bureau
of Labor Statistics that is based on a quarterly census of employers in
the State of wages paid for unemployment insurance-covered employment.
``(e) Limitations.--In no case may an eligible employer--
``(1) receive more than 1 grant under this section with
respect to the same covered individual in a single calendar
year; or
``(2) receive more than 10 total grants under this section
in a single calendar year.
``(f) Enforcement.--In any case in which--
``(1) an employer's attestation with respect to costs
incurred made pursuant to subsection (c)(2) is not made in good
faith; or
``(2) an employer who receives a grant under this section
with respect to a covered individual fails to satisfy the
requirements of paragraph (3) or (4) of subsection (c) with
respect to such individual,
the Secretary may require the employer to repay the full amount of such
grant (including any applicable interest) and may permanently prohibit
the employer from applying for any subsequent grants under this
section.
``(g) Definitions.--For purposes of this section--
``(1) Covered individual.--For purposes of this section,
the term `covered individual' means an individual employed by
an eligible employer who takes 4 or more weeks of leave from
such employer, or anticipates taking 4 or more weeks, during
the individual's benefit period for which the individual
receives paid family and medical leave benefits--
``(A) under section 2202(a);
``(B) under the law of a legacy State (as defined
in section 2209(b)); or
``(C) under an eligible employer-sponsored plan
under section 2210,
but only if the eligible employer has received no other State
or Federal grant intended to cover the costs described in
subsection (c)(2) with respect to such individual.
``(2) Eligible employer.--The term `eligible employer'
means any person (other than a governmental agency) who
regularly employs at least 1 and not more than 50 employees.
``(3) Qualified leave.--The term `qualified leave' means
leave taken by an individual with respect to which the
individual is eligible for paid family and medical leave
benefits under section 2202, under the law of a legacy State
(as defined in section 2209(b)), or under an eligible employer-
sponsored plan under section 2210.
``SEC. 2212. DEFINITIONS.
``For purposes of this title the following definitions apply:
``(1) Group health plan.--The term `group health plan' has
the meaning given such term in section 5000(b)(1) of the
Internal Revenue Code of 1986.
``(2) National average wage index.--The term `national
average wage index' has the meaning given such term in section
209(k)(1).
``(3) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(4) Self-employment income.--The term `self-employment
income' has the meaning given the term in section 1402(b) of
the Internal Revenue Code of 1986 for purposes of the taxes
imposed by section 1401(b) of such Code. For purposes of
section 2202(a) and 2203(b)(3), the Secretary shall determine
rules for the crediting of self-employment income to calendar
quarters, under which--
``(A) in the case of a taxable year which is a
calendar year, self-employment income shall be credited
equally to each quarter of such calendar year; and
``(B) in the case of any other taxable year, such
income shall be credited equally to the calendar
quarter in which such taxable year ends and to each of
the next three or fewer preceding quarters any part of
which is in such taxable year.
``(5) State.--The term `State' means any State of the
United States or the District of Columbia or any territory or
possession of the United States.
``(6) Wages.--The term `wages' has the meaning given such
term in section 3121(a) of the Internal Revenue Code of 1986
for purposes of the taxes imposed by sections 3101(b) and
3111(b) of such Code, except that such term also includes--
``(A) compensation, as defined in section 3231(e)
of such Code for purposes of the Railroad Retirement
Tax Act; and
``(B) unemployment compensation, as defined in
section 85(b) of such Code.
``(7) Week.--The term `week' means a 7-day period beginning
on a Sunday.''.
SEC. 130002. ACCESS TO WAGE INFORMATION FROM THE NATIONAL DIRECTORY OF
NEW HIRES FOR THE PURPOSE OF ADMINISTERING PAID LEAVE.
(a) In General.--Section 453(j) of the Social Security Act (42
U.S.C. 653(j)) is amended--
(1) by redesignating paragraphs (5) through (11) as
paragraphs (6) through (12), respectively; and
(2) by adding after paragraph (4) the following:
``(5) Provision of new hire information for purposes of
family and medical leave program.--
``(A) In general.--The National Directory of New
Hires shall provide the Secretary of the Treasury with
all information in the National Directory relating to
wages paid to individuals.
``(B) Use and maintenance of information by the
secretary of the treasury.--The Secretary of the
Treasury may use information provided under this
paragraph only for purposes of administering the paid
family and medical leave benefit program under title
XXII, and shall maintain such information in the
records of the Secretary of the Treasury for such time
as the Secretary of the Treasury deems necessary for
the administration of such program.''.
(b) Conforming Amendment.--Section 453(i)(2)(C) of such Act (42
U.S.C. 653(i)(2)(C)) is amended by striking ``(j)(5)'' and inserting
``(j)(6)''.
Subtitle B--Retirement
SEC. 131001. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this subtitle
an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
PART 1--AUTOMATIC CONTRIBUTION PLANS AND ARRANGEMENTS
SEC. 131101. TAX IMPOSED ON EMPLOYERS FAILING TO MAINTAIN OR FACILITATE
AUTOMATIC CONTRIBUTION PLAN OR ARRANGEMENT.
(a) Automatic Contribution Plan or Arrangement.--
(1) In general.--Section 414 is amended by adding at the
end the following:
``(aa) Automatic Contribution Plan or Arrangement.--For purposes of
this title--
``(1) In general.--The term `automatic contribution plan or
arrangement' means--
``(A) a defined contribution plan that--
``(i) is described in clause (i), (ii), or
(iv) of section 219(g)(5)(A),
``(ii) includes a qualified cash or
deferred arrangement or a salary reduction
arrangement, and
``(iii) meets the notice, eligibility,
contribution, investment, fee, and lifetime
income requirements of paragraphs (2), (3),
(4), (5), (6), and (7), respectively,
``(B) an automatic IRA arrangement described in
paragraph (8),
``(C) an arrangement described in section 408(p)
that meets the notice, contribution, investment, and
fee requirements described in paragraphs (2), (4), (5),
and (6), and
``(D) a plan described in clause (i), (ii), (iv),
(v), or (vi) of section 219(g)(5)(A) that is
established and maintained by an employer as of the
date of enactment of the Act to provide for
reconciliation pursuant to title II of S. Con. Res. 14,
or a plan described in section 219(g)(5)(A)(iv) that is
not subject to title I of the Employee Retirement
Income Security Act of 1974 and offers annuity
contracts, or makes custodial accounts available to
employees, as of such date.
``(2) Notice requirements.--A plan or arrangement shall be
treated as meeting the notice requirements of this paragraph
with respect to an employee if the plan or arrangement meets
the notice requirements of, or similar to, the notice
requirements of section 401(k)(13)(E), excluding any such
notice requirements that are not applicable or relevant to the
such plan or arrangement.
``(3) Eligibility requirements.--
``(A) In general.--The requirements of this
paragraph shall be treated as met if all employees of
the employer are eligible to participate in an
automatic contribution plan or arrangement maintained
or facilitated by the employer.
``(B) Certain exclusions.--The following employees
may be excluded from consideration in determining
whether the requirements of this paragraph are met:
``(i) Individuals less than 21 years old.--
Any employee who has not attained age 21.
``(ii) Certain other employees.--Any
employee described in section 410(b)(3).
``(iii) Service requirements.--Any employee
who has not completed at least one of the
following periods of service with the employer
maintaining or facilitating the plan or
arrangement:
``(I) The period permitted under
section 410(a)(1) (determined without
regard to subparagraph (B)(i) thereof).
``(II) A period of 2 consecutive
12-month periods during each of which
the employee has at least 500 hours of
service.
``(C) Special rules for controlled groups.--
Eligible employees within an employer need not be
eligible to participate in the same automatic
contribution plan or arrangement. For purposes of this
subsection, the term `employer' shall include all
employers treated as a single employer under subsection
(b), (c), (m), or (o) of section 414.
``(D) Entry dates.--Rules similar to the rules of
section 410(a)(4) shall apply with respect to employees
who have satisfied the age and service requirements
referenced in subparagraph (B) and who are otherwise
entitled to participate in a plan or arrangement.
``(4) Contribution requirements.--
``(A) In general.--The requirements of this
paragraph shall be treated as met if, under the plan or
arrangement, each employee eligible to participate in
the plan or arrangement is treated as having elected to
have the employer make elective contributions in an
amount equal to the qualified percentage of
compensation.
``(B) Election out.--The election treated as having
been made under subparagraph (A) shall cease to apply
with respect to any employee if such employee makes an
affirmative election--
``(i) not to have such contributions made,
or
``(ii) to make elective contributions at a
level specified in such affirmative election.
``(C) Qualified percentage.--For purposes of this
paragraph, and except as provided in subparagraph
(D)(i), the term `qualified percentage' means, with
respect to any employee, any percentage determined
under the plan or arrangement if such percentage is
applied uniformly, does not exceed 15 percent (10
percent during the period described in clause (i)), and
is at least--
``(i) 6 percent during the period ending on
the last day of the first plan year which
begins after the date on which the first
elective contribution described in subparagraph
(A) is made with respect to such employee,
``(ii) 7 percent during the first plan year
following the plan year described in clause
(i),
``(iii) 8 percent during the first plan
year following the plan year described in
clause (ii),
``(iv) 9 percent during the first plan year
following the plan year described in clause
(iii), and
``(v) 10 percent during any subsequent plan
year.
``(D) Rules relating to automatic IRA
arrangements.--For purposes of this paragraph--
``(i) Qualified percentage.--In the case of
an automatic IRA arrangement, the term
`qualified percentage' means, with respect to
an employee for any plan year, a percentage
equal to the minimum percentage described for
such plan year under subparagraph (C).
``(ii) Payroll deduction contributions.--In
the case of an automatic IRA arrangement, any
reference in this paragraph to elective
contributions shall be treated as including a
reference to payroll deduction contributions.
``(5) Investment requirements.--
``(A) In general.--
``(i) Default investments.--A plan or
arrangement shall be treated as meeting the
requirements of this paragraph if in the
absence of an investment election by a
participant or beneficiary, amounts are
invested only in the class of assets or funds
described in subparagraph (B).
``(ii) Required investment options in
automatic ira arrangement.--In addition to the
default investment requirement of clause (i),
an automatic IRA arrangement shall be treated
as meeting the requirements of this paragraph
if the arrangement also allows the participant
to invest in any of the class of assets or
funds described in subparagraph (B), (C), (D),
or (E), and provides for no other investment
options.
``(B) Target date/lifecycle option.--The class of
assets or funds described in this clause is the class
of assets or funds that constitutes a qualified default
investment alternative under Department of Labor
regulation section 2550.404c-5(e)(4)(i).
``(C) Principal preservation.--The class of assets
or funds described in this clause is the class of
assets or funds that is designed to protect the
principal of the individual on an ongoing basis.
``(D) Balanced option.--The class of assets or
funds described in this clause is the class of assets
or funds that constitutes a qualified default
investment alternative under Department of Labor
regulation section 2550.404c-5(e)(4)(ii).
``(E) Other.--Any other class of assets or funds
determined by the Secretary to be a qualified
investment for purposes of this section.
``(6) Fee requirements.--In the case of any plan or
arrangement not otherwise subject to title I of the Employee
Retirement Income Security Act of 1974, under the fee
requirements of this paragraph, no participant may be charged
unreasonable fees or expenses.
``(7) Lifetime income requirements.--
``(A) In general.--A plan or arrangement shall be
treated as meeting the lifetime income requirement
described in this paragraph if the plan or arrangement
permits participants to elect to receive at least 50
percent of their vested account balance in a form of
distribution described in section 401(a)(38)(B)(iii).
``(B) Exception.--
``(i) In general.--This paragraph shall not
apply with respect to any participant whose
vested account balance is $200,000 or less at
the time of distribution.
``(ii) Not treated as discriminatory in
favor of highly compensated employees.--A plan
shall not be treated as failing to meet the
requirements of section 401(a)(4) solely by
reason of applying the exception of clause (i)
to the requirements of subparagraph (A).
``(8) Automatic ira arrangement.--
``(A) In general.--For purposes of this paragraph,
the term `automatic IRA arrangement' means, with
respect to an employer (and trustee or issuer
designated by the employer), an arrangement facilitated
by the employer which meets the requirements of this
paragraph and the eligibility, contribution,
investment, and fee requirements of paragraphs (3),
(4), (5), and (6), and under which an employee--
``(i) may elect--
``(I) to have the employer make
payroll deduction deposits on behalf of
the individual as payroll deduction
contributions to an individual
retirement account, or
``(II) to have such payments paid
to the employee directly in cash,
``(ii) is treated as having made the
election under clause (i)(I) at the level
determined under paragraph (4)(D) until the
individual makes an affirmative election not to
have such contributions made (or to have such
contributions made at a level specified in the
affirmative election), and
``(iii) may elect to modify the manner in
which such amounts are invested for such plan
year.
``(B) Administrative requirements.--
``(i) Payments.--The requirements of this
subparagraph are met with respect to any
automatic IRA arrangement if the employer makes
the payments elected or treated as elected
under subparagraph (A)(i) on or before the last
day of the month following the month in which
the compensation otherwise would have been
payable to the employee in cash.
``(ii) Notice of election period.--The
requirements of this paragraph shall be treated
as met with respect to any year if the employer
notifies each employee eligible to participate,
within a reasonable period of time before the
beginning of such year (and, for the first year
the employee is so eligible, a reasonable
period of time before the first day such
employee is so eligible), of--
``(I) the opportunity to elect to
have contributions made, or to be
treated as so electing, under clause
(i)(I), or (ii), of subparagraph (A),
``(II) the opportunity to elect not
to have payroll deduction contributions
made or to have such contributions made
at a different percentage or in a
different amount, and
``(III) the opportunity under
subparagraph (A)(iii) to modify the
manner in which such amounts are
invested for such year.
The employer shall provide such notice in paper
form or, if the employee so elects, in
electronic form.
``(C) Limits on contributions.--An employer shall
not be treated as failing to satisfy the requirements
of this section or any other provision of this title
merely because--
``(i) aggregate payroll deduction
contributions by or on behalf of an individual
to individual retirement accounts of the
individual exceed the deductible amount in
effect under section 219(b)(5) (determined
without regard to subparagraph (B) thereof) for
any taxable year in which any payroll deduction
contributions by the employer under an
automatic IRA arrangement are made, or
``(ii) the employer chooses to limit the
payroll deduction contributions under this
subsection on behalf of an employee for any
calendar year in a manner reasonably designed
to avoid exceeding such deductible amount.
``(D) Default treatment as roth ira.--An employee
on whose behalf payroll deduction contributions are
made to an individual retirement account under
subparagraph (A) may elect, at such time and in such
manner and form as the Secretary may prescribe, whether
to treat the individual retirement account as
designated as a Roth IRA. If no such election is made,
the account shall be treated as so designated.
``(E) Deposits to individual retirement accounts of
a designated trustee or issuer.--
``(i) In general.--An employer shall not be
treated as failing to satisfy the requirements
of this section, or any other provision of this
title, merely because the employer makes all
payroll deduction contributions on behalf of
all employees (or all employees who do not
specify an individual retirement account,
trustee, or issuer to receive the
contributions) to individual retirement
accounts specified in clause (ii).
``(ii) Individual retirement accounts other
than those selected by employee.--An employer
may elect to have payroll deduction
contributions for all employees participating
in an automatic IRA arrangement made to
individual retirement accounts of a trustee or
issuer under the arrangement that has been
designated by the employer, but only if the
provider of such accounts, and the investments
therein, are identified on the website
established under subparagraph (F)(iii). The
preceding sentence shall not apply unless each
participant is notified in writing that the
participant's balance may be transferred
without cost or penalty to another individual
retirement account established by or on behalf
of the participant. Such notice shall be in
paper form or, if the employee so elects,
electronic form.
``(iii) Employers may permit employee to
choose ira.--If the employer so elects, the
arrangement may provide for an employee
election to have payroll deduction
contributions made to any individual retirement
account specified by the employee.
``(iv) Regulations.--The Secretary may
issue such regulations as are necessary to
carry out the purposes of this subparagraph,
including establishment of procedures to assist
employers in connecting with certified and
available providers of individual retirement
accounts and to communicate to individuals the
importance of investment diversification.
``(F) Model notice, etc.--The Secretary shall--
``(i) provide a model notice, written in a
manner calculated to be understandable to the
average worker, that is simple for employers to
use--
``(I) to notify employees of the
requirement under this section for the
employer to provide certain employees
with the opportunity to participate in
an automatic IRA arrangement, and
``(II) to satisfy the requirements
of subparagraph (B)(ii),
``(ii) provide model forms for enrollment,
including automatic enrollment, in an automatic
IRA arrangement,
``(iii) establish a website or other
electronic means that small employers and
individuals can access and use to obtain
information on automatic IRA arrangements
(including clear, standardized, easy-to-compare
information on fees and expenses and investment
returns in a format prescribed by the
Secretary) and to obtain notices and forms, and
``(iv) establish a process--
``(I) for the provider of an
automatic IRA arrangement to
demonstrate to the Secretary that the
arrangement is described in this
paragraph and meets the requirements
specified in paragraph (1)(B), and
``(II) to certify any arrangement
that the Secretary determines so
demonstrates, to regularly monitor
compliance and update such
determinations and certifications, and
to list all arrangements so certified
on the website described in clause
(iii) as appropriate for use by
employers and participants.
The information referred to in clause (iii) shall be
provided in a manner designed to assist employers and
providers by facilitating the identification by
employers of private-sector providers of individual
retirement accounts, including the provider's
investment options, that are appropriate for use in
automatic IRA arrangements.
``(G) Safe harbor for certain state-provided
arrangements.--An arrangement facilitated by an
employer shall not fail to be treated as an automatic
IRA arrangement merely because such arrangement is
provided or otherwise offered, in whole or in part, by
a State.
``(H) Individual retirement account.--For purposes
of this paragraph, the term `individual retirement
account' shall have the meaning given such term by
section 408(a), except that such term shall include
individual retirement annuities (as defined in section
408(b)).''.
(2) Other rules applicable to automatic IRA arrangements.--
(A) Penalty for failure to timely remit
contributions to automatic ira arrangements.--Section
4975(c) is amended by adding at the end the following
new paragraph:
``(7) Special rule for automatic IRA arrangements.--For
purposes of paragraph (1), if an employer is required under an
automatic IRA arrangement (as defined in section 414(aa)(1)(B))
to deposit amounts withheld from an employee's compensation
into an individual retirement account (within the meaning of
section 414(aa)(8)(H)) but fails to do so within the time
prescribed under section 414(aa)(8)(B)(i), such amounts shall
be treated as assets of the individual retirement account.''.
(B) Waiver of early withdrawal penalty for certain
distributions following initial election to participate
in automatic ira arrangement.--Section 72(t) is amended
by adding at the end the following new paragraph:
``(11) Distribution following initial election to
participate in automatic ira arrangement.--Paragraph (1) shall
not apply in the case of a distribution--
``(A) to an individual from an individual
retirement account (within the meaning of section
414(aa)(8)(H)) that is part of an automatic IRA
arrangement (as defined in section 414(aa)(8)(A)), and
``(B) made not later than 90 days after the initial
election under section 414(aa)(8)(A)(ii).''.
(C) Automatic IRA advisory group.--
(i) In general.--Not later than 90 days
after the date of the enactment of this Act,
the Secretary of the Treasury shall establish
an Automatic IRA Advisory Group (hereinafter in
this subparagraph referred to as the ``Advisory
Group''). The purpose of the Advisory Group
shall be to make recommendations, advise, and
assist in the Secretary's implementation and
administration of paragraphs (5), (6), and (8)
of section 414(aa) of the Internal Revenue Code
of 1986 with respect to automatic IRA
arrangements in the best financial interest of
savers, including--
(I) the procedures and criteria for
the periodic certification, website
listing, and monitoring of investment
options that meet the requirements of
those paragraphs,
(II) user-friendly disclosure
regarding investment returns, terms,
fees, and expenses to facilitate
comparison,
(III) the use of low-cost
investment options,
(IV) the appropriate use of
electronic and paper methods to provide
notice and disclosure,
(V) any possible learnings or
efficiencies based on the Secretary's
procedures and experience in approving
nonbank individual retirement account
trustees, and
(VI) such other related matters as
may be determined by the Secretary.
(ii) Membership.--The Advisory Group shall
consist of not more than 15 members and shall
be composed of--
(I) such individuals as the
Secretary may consider appropriate to
provide expertise regarding the
financial needs and challenges of
lower- and middle-income households,
(II) at least one individual who is
an expert in retirement-related
consumer protections or who represents
the general public, and
(III) at least one representative
of the Department of the Treasury.
(iii) Compensation.--The members of the
Advisory Group shall serve without
compensation.
(iv) Administrative support.--The
Department of the Treasury shall provide
appropriate administrative support to the
Advisory Group, including technical assistance.
The Advisory Group may use the services and
facilities of such Department, with or without
reimbursement, as determined by such
Department.
(v) Report by advisory group.--Not later
than 1 year after the date of the enactment of
this Act, the Advisory Group shall submit to
the Secretary of the Treasury a report
containing its recommendations. The Secretary
may request that the Advisory Group submit
subsequent reports.
(b) Excise Tax for Failure to Maintain or Facilitate Automatic
Contribution Plans or Arrangements.--
(1) In general.--Chapter 43 is amended by adding at the end
the following new section:
``SEC. 4980J. FAILURE TO MAINTAIN OR FACILITATE AUTOMATIC CONTRIBUTION
PLANS OR ARRANGEMENTS.
``(a) General Rule.--
``(1) In general.--There is hereby imposed a tax on the
failure of an employer to maintain or facilitate an automatic
contribution plan or arrangement.
``(2) Exceptions.--
``(A) Paragraph (1) shall not apply to an employer
to the extent such employer participates in an
arrangement under a qualified State law.
``(B) Paragraph (1) shall not apply to an employer
with respect to any employee who is eligible to
participate in a different automatic contribution plan
or arrangement than one or more other employees of the
employer.
``(b) Amount of Tax.--
``(1) In general.--The amount of the tax imposed by
subsection (a) on any failure with respect to an employee shall
be $10 for each day in the noncompliance period with respect to
such failure.
``(2) Noncompliance period.--For purposes of this section,
the term `noncompliance period' means, with respect to any
failure, the period--
``(A) beginning on the date such failure first
occurs, and
``(B) ending on the earlier of--
``(i) the date such failure is corrected,
or
``(ii) with respect to any employer, the
date that is 3 months after the last date on
which the employee is required to be eligible
to participate in an automatic contribution
plan or arrangement maintained or facilitated
by such employer.
``(3) Adjustment for inflation.--
``(A) In general.--In the case of any failure
relating to maintaining or facilitating a plan or
arrangement in a calendar year beginning after 2023,
the $10 amount under paragraph (1) shall be increased
by an amount equal to such dollar amount multiplied by
the cost-of-living adjustment determined under section
1(f)(3) for the calendar year determined by
substituting `calendar year 2022' for `calendar year
2016' in subparagraph (A)(ii) thereof.
``(B) Rounding.--If any amount adjusted under
subparagraph (A) is not a whole dollar amount, such
amount shall be rounded to the nearest whole dollar
amount.
``(c) Limitations on Amount of Tax.--
``(1) Tax not to apply where failure not discovered
exercising reasonable diligence.--No tax shall be imposed by
subsection (a) on any failure during any period for which it is
established to the satisfaction of the Secretary that none of
the persons referred to in subsection (e) knew, nor exercising
reasonable diligence would have known, that such failure
existed.
``(2) Tax not to apply to failures corrected within 9\1/2\
months.--No tax shall be imposed by subsection (a) on any
failure if--
``(A) such failure was due to reasonable cause and
not to willful neglect, and
``(B) such failure is corrected during the 9\1/2\-
month period beginning on the first date any of the
persons referred to in subsection (e) knew that such
failure existed, or exercising reasonable diligence
would have known.
``(3) Overall limitation for unintentional failures.--In
the case of failures which are due to reasonable cause and not
to willful neglect--
``(A) General rule.--The tax imposed by subsection
(a) for failures during the taxable year of the
employer shall not exceed $500,000.
``(B) Taxable years in the case of certain
controlled groups.--For purposes of this subparagraph,
if not all persons who are treated as a single employer
for purposes of this section have the same taxable
year, the taxable years taken into account shall be
determined under principles similar to the principles
of section 1561.
``(4) Waiver by secretary.--In the case of a failure which
is due to reasonable cause and not to willful neglect, the
Secretary may waive part or all of the tax imposed by
subsection (a) to the extent that the payment of such tax would
be excessive relative to the failure involved.
``(d) Tax Not to Apply in Certain Cases.--This section shall not
apply in the case of--
``(1) any employer with respect to a plan or arrangement
that, during the prior calendar year, was maintained or
facilitated only by employers each of which had no more than 5
employees receiving at least $5,000 of compensation from the
employer for such year,
``(2) any employer with respect to a governmental plan
(within the meaning of section 414(d)),
``(3) any employer with respect to a church plan (within
the meaning of section 414(e)), or
``(4) any employer that has been in existence for fewer
than 2 years, taking into account all predecessor employers.
``(e) Liability for Tax.--The employer shall be liable for the tax
imposed by subsection (a) on a failure. All employers, determined
without regard to subsection (f)(2), shall be jointly and severally
liable for the liability of any other employer with which they are
aggregated under subsection (f)(2).
``(f) Definitions.--For purposes of this section--
``(1) Automatic contribution plan or arrangement.--The term
`automatic contribution plan or arrangement' has the meaning
given such term under section 414(aa), and
``(2) Employer.--The term `employer' includes all employers
treated as a single employer under subsection (b), (c), (m), or
(o) of section 414.
``(3) Qualified state law.--The term `qualified State law'
means a State law (as it may be amended from time to time)
that--
``(A) was enacted before the date of the enactment
of the Act to provide for reconciliation pursuant to
title II of S. Con. Res. 14, and
``(B)(i) requires certain employers to facilitate
an automatic IRA arrangement pursuant to a payroll
deduction savings program of the State, or
``(ii) allows certain employers to contribute to,
or participate in, a plan described in section 413(c)
of such Code established and maintained by the
State.''.
(2) Clerical amendment.--The table of sections for chapter
43 is amended by adding at the end the following new item:
``Sec. 4980J. Failure to maintain or facilitate automatic contribution
plans or arrangements.''.
(c) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2022.
SEC. 131102. DEFERRAL-ONLY ARRANGEMENTS.
(a) In General.--Section 401(k) is amended by adding at the end the
following new paragraph:
``(16) Deferral-only arrangement.--
``(A) In general.--A deferral-only arrangement
shall be treated as meeting the requirements of
paragraph (3)(A)(ii).
``(B) Deferral-only arrangement.--For purposes of
this paragraph, the term `deferral-only arrangement'
means any cash or deferred arrangement which meets--
``(i) the automatic deferral requirements
of subparagraph (C),
``(ii) the elective contribution
requirement of subparagraph (D), and
``(iii) the requirements of subparagraph
(E) of paragraph (13).
``(C) Automatic deferral.--
``(i) In general.--The requirements of this
subparagraph shall be treated as met if, under
the arrangement, each employee eligible to
participate in the arrangement is treated as
having elected to have the employer make
elective contributions in an amount equal to
the qualified percentage of compensation.
``(ii) Election out.--The election treated
as having been made under clause (i) shall
cease to apply with respect to any employee if
such employee makes an affirmative election--
``(I) to not have such
contributions made, or
``(II) to make elective
contributions at a level specified in
such affirmative election.
``(iii) Qualified percentage.--For purposes
of this subparagraph, with respect to any
employee, the term `qualified percentage'
means, in lieu of the meaning given such term
in paragraph (13)(C)(iii), any percentage
determined under the arrangement if such
percentage is applied uniformly, does not
exceed 15 percent (10 percent during the period
described in subclause (I)) and is at least--
``(I) 6 percent during the period
ending on the last day of the first
plan year which begins after the date
on which the first elective
contribution described in clause (i) is
made with respect to such employee,
``(II) 7 percent during the first
plan year following the plan year
described in subclause (I),
``(III) 8 percent during the first
plan year following the plan year
described in subclause (II),
``(IV) 9 percent during the first
plan year following the plan year
described in subclause (III), and
``(V) 10 percent during any
subsequent plan year.
``(D) Elective contributions.--
``(i) In general.--The requirements of this
subparagraph are met if under the plan
containing the arrangement--
``(I) the only contributions which
may be made are elective contributions
of employees who are eligible to
participate in the arrangement, and
``(II) the aggregate amount of such
elective contributions which may be
made with respect to any employee for
any calendar year shall not exceed the
amount in effect for the taxable year
under section 219(b)(5) (determined
without regard to subparagraph (B)
thereof).
``(ii) Cross reference.--For catch-up
contributions for individuals age 50 or over,
see section 414(v).''.
(b) Catch-up Contributions for Individuals Age 50 and Over.--
(1) Section 414(v)(2)(B)(i) is amended by inserting ``,
401(k)(16),'' after ``401(k)(11)''.
(2) Section 414(v)(2)(B) is amended by adding at the end
thereof the following clause:
``(iii) In the case of an applicable
employer plan described in section 401(k)(16),
the applicable dollar amount is $1,000.''.
(3) Section 414(v)(2)(C) is amended--
(A) by striking ``(B)(i) and'' and inserting
``(B)(i),'' and by inserting after ``subparagraph
(B)(ii)'' the following: ``, and the $1,000 amount
described in subparagraph (B)(iii)'',
(B) inserting after ``2005'' the following: ``(the
calendar quarter beginning July 1, 2020, in the case of
the $1,000 amount described in subparagraph
(B)(iii))'', and
(C) by inserting before the period at the end the
following ``($100 in the case of an increase in the
amount described in subparagraph (B)(iii) which is not
a multiple of $100)''.
(c) Plans Not Treated as Top-heavy Plans.--Section 416(g)(4)(H)(i)
is amended by striking ``or 401(k)(13)'' and inserting ``401(k)(13), or
401(k)(16)''.
(d) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2022.
SEC. 131103. INCREASE IN CREDIT LIMITATION FOR SMALL EMPLOYER PENSION
PLAN STARTUP COSTS INCLUDING FOR AUTOMATIC CONTRIBUTION
PLAN OR ARRANGEMENT.
(a) Years for Which Credit Is Allowed.--Section 45E(b)(1) is
amended by striking ``2 taxable years'' and inserting ``4 taxable
years''.
(b) Special Rule for Employers With 25 or Fewer Employees.--Section
45E(a) is amended by inserting before the period at the end the
following: ``(100 percent of such costs in the case of an eligible
employer with 25 or fewer employees, as determined by substituting `25'
for `100' in section 408(p)(2)(C)(i))''.
(c) Credit Not to Apply to Certain Plans or Arrangements.--
(1) No credit with respect to deferral-only arrangements.--
Section 45E(d)(2) is amended by inserting ``(other than a
deferral-only arrangement (as defined in section
401(k)(16)(B))'' before the period at the end.
(2) Termination with respect to plans other than automatic
contribution plans or arrangements.--Section 45E is amended by
adding at the end the following new subsection:
``(f) Credit Terminated for Non-automatic Contribution Plans or
Arrangements After 2022.--In the case of taxable years beginning after
December 31, 2022, no credit shall be allowed under this section for
amounts paid or incurred with respect to an eligible employer plan that
is not an automatic contribution plan or arrangement (as defined in
section 414(aa)).''.
(d) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2021.
SEC. 131104. CREDIT FOR CERTAIN SMALL EMPLOYER AUTOMATIC RETIREMENT
ARRANGEMENTS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
is amended by adding at the end the following new section:
``SEC. 45U. CREDIT FOR CERTAIN SMALL EMPLOYER AUTOMATIC RETIREMENT
ARRANGEMENTS.
``(a) General Rule.--For purposes of section 38, in the case of an
eligible employer, the small employer automatic retirement arrangement
credit determined under this section for any taxable year in the credit
period is $500.
``(b) Definitions.--For purposes of this section--
``(1) Eligible employer.--The term `eligible employer'
means, with respect to the calendar year in which the taxable
year begins, an employer which--
``(A)(i) participates in an automatic IRA
arrangement (as defined in section 414(aa)(8)), or an
arrangement described in 4980J(a)(2)(A), or
``(ii) maintains a deferral-only arrangement (as
defined in section 401(k)(16)),
``(B) is described in 408(p)(2)(C)(i), and
``(C) did not maintain an eligible employer plan
during the portion of the calendar year preceding the
commencement of such arrangement, or adoption of such
deferral-only arrangement, and the 2 preceding calendar
years.
``(2) Credit period.--The term `credit period' means the
first 4 calendar years beginning after the date of the
enactment of this section in which the eligible employer
participates in the arrangement or maintains the deferral-only
arrangement.
``(3) Eligible employer plan.--The term `eligible employer
plan' means a qualified employer plan within the meaning of
section 4972(d).
``(c) Other Rules.--For purposes of this section, the rules of
section 45E(e) shall apply.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b) of is amended by striking ``plus'' at the end of paragraph (32),
by striking the period at the end of paragraph (33) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(34) the small employer automatic retirement arrangement
credit determined under section 45U(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by adding at the end
the following new item:
``Sec. 45U. Credit for certain small employer automatic retirement
arrangements.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
PART 2--SAVER'S MATCH
SEC. 131201. MATCHING PAYMENTS FOR ELECTIVE DEFERRAL AND IRA
CONTRIBUTIONS BY CERTAIN INDIVIDUALS.
(a) In General.--Subchapter B of chapter 65 is amended by adding at
the end the following new section:
``SEC. 6433. MATCHING PAYMENTS FOR ELECTIVE DEFERRAL AND IRA
CONTRIBUTIONS BY CERTAIN INDIVIDUALS.
``(a) In General.--
``(1) Allowance of credit.--Any eligible individual who
makes qualified retirement savings contributions for the
taxable year shall be allowed a credit for such taxable year in
an amount equal to the applicable percentage of so much of the
qualified retirement savings contributions made by such
eligible individual for the taxable year as does not exceed
$1,000.
``(2) Payment of credit.--The credit under this section
shall be--
``(A) treated as allowed by subpart C of part IV of
subchapter A of chapter 1, and
``(B) paid by the Secretary as a contribution (as
soon as practicable after the eligible individual has
filed a tax return making a claim for such credit for
the taxable year) to the applicable retirement savings
vehicle of an eligible individual.
``(b) Applicable Percentage.--For purposes of this section--
``(1) In general.--Except as provided in paragraph (2), the
applicable percentage is 50 percent.
``(2) Phaseout.--The percentage under paragraph (1) shall
be reduced (but not below zero) by the number of percentage
points which bears the same ratio to 50 percentage points as--
``(A) the excess of--
``(i) the taxpayer's modified adjusted
gross income for such taxable year, over
``(ii) the applicable dollar amount, bears
to
``(B) the phaseout range.
If any reduction determined under this paragraph is not a whole
percentage point, such reduction shall be rounded to the next
lowest whole percentage point.
``(3) Applicable dollar amount; phaseout range.--
``(A) Joint returns.--Except as provided in
subparagraph (B)--
``(i) the applicable dollar amount is
$50,000, and
``(ii) the phaseout range is $20,000.
``(B) Other returns.--In the case of--
``(i) a head of a household (as defined in
section 2(b)), the applicable dollar amount and
the phaseout range shall be \3/4\ of the
amounts applicable under subparagraph (A) (as
adjusted under subsection (h)), and
``(ii) any taxpayer who is not filing a
joint return and who is not a head of a
household (as so defined), the applicable
dollar amount and the phaseout range shall be
\1/2\ of the amounts applicable under
subparagraph (A) (as so adjusted).
``(4) Exception; minimum credit.--In the case of an
eligible individual with respect to whom (without regard to
this paragraph) the credit determined under subsection (a)(1)
is greater than zero but less than $100, the credit allowed
under this section shall be $100.
``(c) Eligible Individual.--For purposes of this section--
``(1) In general.--The term `eligible individual' means any
individual if such individual has attained the age of 18 as of
the close of the taxable year.
``(2) Dependents and full-time students not eligible.--The
term `eligible individual' shall not include--
``(A) any individual with respect to whom a
deduction under section 151 is allowed to another
taxpayer for a taxable year beginning in the calendar
year in which such individual's taxable year begins,
and
``(B) any individual who is a student (as defined
in section 152(f)(2)).
``(d) Qualified Retirement Savings Contributions.--For purposes of
this section--
``(1) In general.--The term `qualified retirement savings
contributions' means, with respect to any taxable year, the sum
of--
``(A) the amount of the qualified retirement
contributions (as defined in section 219(e)) made by
the eligible individual,
``(B) the amount of--
``(i) any elective deferrals (as defined in
section 402(g)(3)) of such individual, and
``(ii) any elective deferral of
compensation by such individual under an
eligible deferred compensation plan (as defined
in section 457(b)) of an eligible employer
described in section 457(e)(1)(A),
``(C) the amount of voluntary employee
contributions by such individual to any qualified
retirement plan (as defined in section 4974(c)), and
``(D) the amount of contributions made by such
individual to the ABLE account (within the meaning of
section 529A) of which such individual is the
designated beneficiary.
Such term shall not include any amount attributable to a
payment under subsection (a)(2).
``(2) Reduction for certain distributions.--
``(A) In general.--The qualified retirement savings
contributions determined under paragraph (1) for a
taxable year shall be reduced (but not below zero) by
the aggregate distributions received by the individual
during the testing period from any entity of a type to
which contributions under paragraph (1) may be made.
``(B) Testing period.--For purposes of subparagraph
(A), the testing period, with respect to a taxable
year, is the period which includes--
``(i) such taxable year,
``(ii) the 2 preceding taxable years, and
``(iii) the period after such taxable year
and before the due date (including extensions)
for filing the return of tax for such taxable
year.
``(C) Excepted distributions.--There shall not be
taken into account under subparagraph (A)--
``(i) any distribution referred to in
section 72(p), 401(k)(8), 401(m)(6), 402(g)(2),
404(k), or 408(d)(4),
``(ii) any distribution to which section
408(d)(3) or 408A(d)(3) applies,
``(iii) any portion of a distribution if
such portion is transferred or paid in a
rollover contribution (as defined in section
402(c), 403(a)(4), 403(b)(8), 408A(e), or
457(e)(16)) to an account or plan to which
qualified retirement contributions can be made,
and
``(iv) the amount of distributions under a
qualified ABLE program (within the meaning of
section 529A) that is equal to amounts not
included in gross income with respect to such
distributions under section 529A(c)(1)(B)
(relating to distributions for qualified
disability expenses).
``(D) Treatment of distributions received by spouse
of individual.--For purposes of determining
distributions received by an individual under
subparagraph (A) for any taxable year, any distribution
received by the spouse of such individual shall be
treated as received by such individual if such
individual and spouse file a joint return for such
taxable year and for the taxable year during which the
spouse receives the distribution.
``(e) Applicable Retirement Savings Vehicle.--
``(1) In general.--The term `applicable retirement savings
vehicle' means an account or plan elected by the eligible
individual under paragraph (2).
``(2) Election.--Any such election to have contributed the
amount determined under subsection (a) shall be to an account
or plan which--
``(A) is a Roth IRA or a designated Roth account
(within the meaning of section 402A) of an applicable
retirement plan (as defined in section 402A(e)(1)),
``(B) is for the benefit of the eligible
individual,
``(C) accepts contributions made under this
section, and
``(D) is designated by such individual (in such
form and manner as the Secretary may provide).
``(f) Other Definitions and Special Rules.--
``(1) Modified adjusted gross income.--For purposes of this
section, the term `modified adjusted gross income' means
adjusted gross income--
``(A) determined without regard to sections 911,
931, and 933, and
``(B) determined without regard to any exclusion or
deduction allowed for any qualified retirement savings
contribution made during the taxable year.
``(2) Treatment of contributions.--In the case of any
contribution under subsection (a)(2)--
``(A) except as otherwise provided in this section
or by the Secretary under regulations, such
contribution shall be treated as--
``(i) an elective deferral made by the
individual which is a designated Roth
contribution, if contributed to an applicable
retirement plan, or
``(ii) as a Roth IRA contribution made by
such individual, if contributed to a Roth IRA,
and
``(B) such contribution shall not be taken into
account with respect to any applicable limitation under
sections 402(g)(1), 403(b), 408(a)(1), 408(b)(2)(B),
408A(c)(2), 414(v)(2), 415(c), or 457(b)(2), and shall
be disregarded for purposes of sections 401(a)(4),
401(k)(3), 401(k)(11)(B)(i)(III), and 416.
``(3) Treatment of qualified plans, etc.--A plan or
arrangement to which a contribution is made under this section
shall not be treated as violating any requirement under section
401, 403, 408A, or 457 solely by reason of accepting such
contribution.
``(4) Erroneous credits.--
``(A) In general.--If any contribution is
erroneously paid under subsection (a)(2), including a
payment that is not made to an applicable retirement
savings vehicle, the amount of such erroneous payment
shall be treated as an underpayment of tax (other than
for purposes of part II of subchapter A of chapter 68)
for the taxable year in which the Secretary determines
the payment is erroneous.
``(B) Distribution of erroneous credits.--In the
case of a contribution to which subparagraph (A)
applies--
``(i) section 72 shall not apply to the
distribution of such contribution (and any
income attributable thereto) if such
distribution is received not later than the day
prescribed by law (including extensions of
time) for filing the individual's return for
such taxable year, and
``(ii) any plan or arrangement from which
such a distribution is made under this
subparagraph shall not be treated as violating
any requirement under section 401, 403, 408A,
or 457 solely by reason of making such
distribution.
``(g) Provision by Secretary of Information Relating to
Contributions.--In the case of an amount elected by an eligible
individual to be contributed to an account or plan under subsection
(e)(2), the Secretary shall provide guidance to the custodian of the
account or the plan sponsor, as the case may be, detailing the
treatment of such contribution under subsection (f)(2) and the
reporting requirements with respect to such contribution under section
131201(c)(2) of the Act to provide for reconciliation pursuant to title
II of S. Con. Res. 14.
``(h) Inflation Adjustments.--
``(1) In general.--In the case of any taxable year
beginning in a calendar year after 2020, each of the dollar
amounts in subsections (a)(1) and (b)(3)(A)(i) shall be
increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2019' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
``(2) Rounding.--Any increase determined under paragraph
(1) shall be rounded to the nearest multiple of--
``(A) $100 in the case of an adjustment of the
amount in subsection (a)(1), and
``(B) $1,000 in the case of an adjustment of the
amount in subsection (b)(3)(A)(i).''.
(b) Treatment of Certain Possessions.--
(1) Payments to possessions with mirror code tax systems.--
The Secretary of the Treasury shall pay to each possession of
the United States which has a mirror code tax system amounts
equal to the loss (if any) to that possession by reason of the
amendments made by this section. Such amounts shall be
determined by the Secretary of the Treasury based on
information provided by the government of the respective
possession.
(2) Payments to other possessions.--The Secretary of the
Treasury shall pay to each possession of the United States
which does not have a mirror code tax system amounts estimated
by the Secretary of the Treasury as being equal to the
aggregate benefits (if any) that would have been provided to
residents of such possession by reason of the amendments made
by this section if a mirror code tax system had been in effect
in such possession. The preceding sentence shall not apply
unless the respective possession has a plan, which has been
approved by the Secretary of the Treasury, under which such
possession will promptly distribute such payments to its
residents.
(3) Coordination with credit allowed against united states
income taxes.--No credit shall be allowed against United States
income taxes under section 6433 of the Internal Revenue Code of
1986 (as added by this section) to any person--
(A) to whom a credit is allowed against taxes
imposed by the possession by reason of the amendments
made by this section, or
(B) who is eligible for a payment under a plan
described in paragraph (2).
(4) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means, with
respect to any possession of the United States, the income tax
system of such possession if the income tax liability of the
residents of such possession under such system is determined by
reference to the income tax laws of the United States as if
such possession were the United States.
(5) Treatment of payments.--For purposes of section 1324 of
title 31, United States Code, the payments under this
subsection shall be treated in the same manner as a refund due
from a credit provision referred to in subsection (b)(2) of
such section.
(c) Administrative Provisions.--
(1) Deficiencies.--Section 6211(b)(4) is amended by
striking ``and 7527A'' and inserting ``7527A, and 6433''.
(2) Reporting.--The Secretary of the Treasury shall--
(A) amend Form 5500 to require separate reporting
of the aggregate amount of contributions received by
the plan during the year under section 6433 of the
Internal Revenue Code of 1986 (as added by this
section), and
(B) amend Form 5498 to require similar reporting
with respect to individual retirement accounts (as
defined in section 408 of such Code) and individual
retirement annuities (as defined in section 408(b) of
such Code).
(d) Payment Authority.--Section 1324(b)(2) of title 31, United
States Code, is amended by striking ``or 7527A'' and inserting ``7527A,
or 6433''.
(e) Conforming Amendments.--
(1) Section 25B is amended by striking subsections (a)
through (f) and inserting the following:
``For payment of credit related to qualified retirement savings
contributions, see section 6433.''.
(2) The table of sections for subchapter B of chapter 65 is
amended by adding at the end the following new item:
``Sec. 6433. Matching payments for elective deferral and IRA
contributions by certain individuals.''.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
SEC. 131202. DEADLINE TO FUND IRA WITH TAX REFUND.
(a) In General.--Section 219(f)(3) is amended--
(1) by striking ``is made not later than'' and inserting
``is made--
``(i) not later than'',
(2) by striking the period at the end and inserting ``,
or'', and
(3) by adding at the end the following new clause:
``(ii) by direct deposit by the Secretary
pursuant to an election on the return for such
taxable year to contribute all or a portion of
any amount owed to the taxpayer to an
individual retirement account of the taxpayer,
but only if the return is filed not later than
the date described in clause (i).''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
Subtitle C--Child Care Access and Equity
SEC. 132001. CHILD CARE ACCESS.
Part A of title IV of the Social Security Act (42 U.S.C. 601-619)
is amended by inserting after section 418 the following:
``SEC. 418A. CHILD CARE ACCESS.
``(a) Establishing State Child Care Information Networks.--
``(1) Development.--The Secretary shall conduct a
stakeholder engagement process to make recommendations about
the development and implementation of the State Child Care
Information Networks to be operated by the States, Indian
tribes, and territories. The stakeholder engagement process may
include parents, center-based child care providers, home-based
child care providers, child care policy experts, trade
associations, labor unions, and other organizations
representing child care providers.
``(2) Models.--The Secretary may use funds made available
to the Secretary for administrative purposes to establish
national technology models for State Child Care Information
Networks, and guidance on development and establishment of
interoperable data governance systems that address privacy and
allow for sharing and storing data across information systems,
including guidance on alignment with State child care consumer
education websites.
``(3) Data exchange standards and interoperability.--
``(A) Designation and use of data exchange
standards.--
``(i) Designation.--The Secretary shall, in
consultation with an interagency work group
established by the Office of Management and
Budget and considering State government
perspectives, designate data exchange standards
for necessary categories of information that
the Child Care Information Network is required
to electronically exchange with another agency
under applicable Federal law.
``(ii) Data exchange standards must be
nonproprietary and interoperable.--The data
exchange standards designated under clause (i)
shall, to the extent practicable, be
nonproprietary and interoperable.
``(iii) Other requirements.--In designating
data exchange standards under this
subparagraph, the Secretary shall, to the
extent practicable, incorporate--
``(I) interoperable standards
developed and maintained by an
international voluntary consensus
standards body, as defined by the
Office of Management and Budget;
``(II) interoperable standards
developed and maintained by
intergovernmental partnerships, such as
the National Information Exchange
Model; and
``(III) interoperable standards
developed and maintained by Federal
entities with authority over
contracting and financial assistance.
``(B) Data exchange standards for federal
reporting.--
``(i) Designation.--The Secretary shall, in
consultation with an interagency work group
established by the Office of Management and
Budget, and considering State government
perspectives, designate data exchange standards
to govern Federal reporting and exchange
requirements under applicable Federal law.
``(ii) Requirements.--The data exchange
reporting standards required by clause (i)
shall, to the extent practicable--
``(I) incorporate a widely
accepted, nonproprietary, searchable,
computer-readable format;
``(II) be consistent with and
implement applicable accounting
principles;
``(III) be implemented in a manner
that is cost-effective and improves
program efficiency and effectiveness;
and
``(IV) be capable of being
continually upgraded as necessary.
``(iii) Incorporation of nonproprietary
standards.--In designating data exchange
standards under this subparagraph, the
Secretary shall, to the extent practicable,
incorporate existing nonproprietary standards.
``(iv) Rule of interpretation.--Nothing in
this subparagraph shall be construed to require
a change to existing data exchange standards
for Federal reporting under this section if the
Secretary finds the standards to be effective
and efficient.
``(4) State requirements.--A State meets the requirements
of this paragraph with respect to a quarter if--
``(A) during the quarter, the State has maintained
an up-to-date, publicly available compilation of child
care providers who are registered, licensed, or
regulated by the State (in this section referred to as
the `State Child Care Information Network'), that
includes, with respect to each such provider--
``(i) where the provider is located, and a
description of any fees imposed by the provider
and the services offered by the provider;
``(ii) whether the provider is providing
child care services that may be funded under
section 418;
``(iii) the hours of operation of the
provider;
``(iv) whether the provider offers child
care to the general public, and if so, where an
application for child care services from the
provider may be obtained, or a direct link to
such an application;
``(v) the total number of children, by age
group, for whom the provider is providing child
care services, and how many openings are
available with the provider by age group;
``(vi) whether the provider has a waiting
list for child care services, and if so, the
average length of time parents are on the
waiting list before being offered child care
services and how to join the list;
``(vii) the type of child care (such as
family child care or center-based care)
provided, differentiating between licensed and
license-exempt child care providers; and
``(viii) information about the languages
spoken by staff of the child care provider, and
such other information as the Secretary may
require to help parents determine whether the
provider can meet their child care needs and
the parents can enroll a child in care, such as
quality indicators or accreditation status;
``(B) the State Child Care Information Network--
``(i) by grant or contract, has been
maintained or jointly maintained by--
``(I) a child care resource and
referral agency that has operated in
the last fiscal year;
``(II) a local child care resource
and referral agency that has operated
in the most recently completed fiscal
year and has applied to become a State
Child Information Network; or
``(III) the lead agency, the State
licensing entity, or other appropriate
entities;
``(ii) may have been maintained in
coordination with, or jointly with, other
federally funded systems, so long as there is
no supplantation of funding; and
``(iii) has been made--
``(I) publicly available, including
through the Internet and by telephone,
to families seeking information about
obtaining child care services; and
``(II) accessible to State, county,
and other government staff involved in
the provision of child care;
``(C) the State requires each provider listed in
the State Child Care Information Network (or, at the
option of the provider, another entity designated by
the provider) to update the information described in
clauses (v) and (vi) of subparagraph (A) on a weekly
basis, and to update all other information described in
subparagraph (A) not less frequently than quarterly,
and ensures that publicly available information in the
State Child Care Information Network indicates when the
slot availability information about the provider was
most recently updated; and
``(D) the State has submitted to the Secretary a
plan that includes an estimate of the total capacity of
licensed, regulated, and registered provider slots, and
a description of the eligible expenditures the State
will make in the quarter, which may be submitted with
other plans required by the Secretary.
``(b) Funding State Child Care Information Networks.--
``(1) Start-up funds.--
``(A) Grants.--For each fiscal year specified in
subparagraph (C), the Secretary shall make grants to
lead agencies to conduct activities related to the
planning and implementation of State Child Care
Information Networks, which may include scaling systems
such as non-profit community-based referral registries,
staffed Family Child Care Networks, and child care
resource and referral systems.
``(B) Distribution.--The Secretary shall distribute
the grant funds to the States that are not territories
in accordance with the formula referred to in section
418(a)(2)(B), and to the territories according to
relative need.
``(C) Appropriation.--Out of any money in the
Treasury not otherwise appropriated, there are
appropriated to the Secretary $200,000,000 for each of
fiscal years 2022 and 2023 for grants under this
paragraph.
``(2) Matching grants.--
``(A) In general.--The Secretary shall pay to each
State that meets the requirements of subsection (a)(4)
with respect to a calendar quarter in any of fiscal
years 2022 through 2026 an amount equal to 75 percent
of the eligible expenditures of the State in the
quarter, subject to subsection (d)(3).
``(B) Eligible expenditures.--In this section, the
term `eligible expenditures' means all of the
following, but only to the extent supplementing, and
not supplanting, funds made available under other law:
``(i) State child care information
network.--Expenditures to carry out subsection
(a)(4).
``(ii) Ease of application for subsidized
child care certificate.--Expenditures to
establish an option, as indicated by the State
in a plan describing planned eligible
expenditures (which may be submitted with other
plans required by the Secretary)--
``(I) for a family to file an
application for a subsidized child care
certificate with a child care provider,
for the provider to submit the
application to the State for
processing, or for the lead agency, a
local child care resource and referral
agency, or other entity under grant or
contract to respond to the family;
``(II) to establish a statewide
common application for child care,
which--
``(aa) allows an
application with respect to a
child to be submitted
simultaneously to multiple
child care providers;
``(bb) allows the
application to be for a
particular site and schedule;
``(cc) is considered an
application directly to each
such provider involved for
purposes of any decision of the
provider regarding a wait list
or an open slot based on the
application date;
``(dd) safeguards
confidential information; and
``(ee) allows for such a
provider to seek and collect
information not on the common
application so that the
provider may determine the
priority to be given to the
applicant on any waiting list
or for other specialized
admission criteria such as
disability services; or
``(III) to enable child care
providers to respond to families
through other application methods.
``(iii) Expenditures for technology needed
to participate in the state child care
information network.--Expenditures for child
care providers, lead agencies, and contractors
to support system-building and system-
implementation activities associated with the
State Child Care Information Network, including
data interoperability and the installation and
maintenance of equipment and software needed to
develop, implement, maintain, and provide
electronic access to the State Child Care
Information Network.
``(iv) Participation incentives.--
Expenditures to provide financial incentives
and support to child care providers for whom
participating in the State Child Care
Information Network would be costly or time
consuming. In providing the incentives, a lead
agency--
``(I) shall take into account the
differential burden on varying types of
providers to ensure that the incentives
are sufficient to encourage all types
of providers, including family-based
providers, to participate in the State
Child Care Information Network;
``(II) may coordinate with staffed
Family Child Care Networks, child care
resource and referral organizations,
labor unions, labor-management
partnerships, or other community-based
organizations, to ensure that home-
based providers are able to participate
in the State Child Care Information
Network; and
``(III) may reimburse coordinating
partners and other entities for
expenses associated with helping
providers participate in the Child Care
Information Network and provide
information required under subsection
(a)(4)(A).
``(C) Appropriation.--Out of any money in the
Treasury not otherwise appropriated, there are
appropriated to the Secretary for each of fiscal years
2022 through 2026 such sums as are necessary for grants
under this paragraph.
``(c) HHS Participating Child Care Provider Certification.--
``(1) In general.--The Secretary shall--
``(A) maintain current information on child care
providers who are qualified to receive the HHS
Participating Child Care Provider Certification for a
calendar quarter, and historical information on child
care providers who were so qualified for a prior
calendar quarter, including a quarter in a prior year,
(in this section referred to as the `HHS Participating
Child Care Provider Certification') based on the
information submitted by lead agencies;
``(B) update the list of providers who are so
qualified, 1 month before the end of each quarter, and
electronically share with the Internal Revenue Service
current and historical information on the providers who
are so qualified; and
``(C) at the end of each calendar year and on
request of any provider listed in the HHS Participating
Child Care Provider Certification who has qualified for
the certification for an entire calendar quarter,
provide the provider and the lead agency of the
jurisdiction in which the provider is located written
documentation of the quarters with respect to which the
provider was so qualified.
``(2) Qualifications.--A child care provider is qualified
to receive the HHS Participating Child Care Provider
Certification for a calendar quarter if the provider--
``(A)(i) is licensed with a State as a provider of
child care services, or is in a license-exempt category
of providers that meets all health and safety standards
and has zero unresolved violations;
``(ii) is providing child care services that may be
funded under section 418;
``(iii) has submitted to the State Child Care
Information Network, on a weekly basis, the information
on all available child care slots with the provider
required under subsection (a)(4)(A)(v), and the waiting
list information required under subsection
(a)(4)(A)(vi);
``(iv) makes child care slots available to the
general public, when available, subject to any clearly
explained priority system; and
``(v) is in compliance with other requirements set
by the State regarding applications for or inquiries
about available child care slots; or
``(B) was so qualified for the entire 3-month
period preceding the most recent update made under
paragraph (1)(B).
``(d) Administrative Provisions.--
``(1) Accuracy checks.--The Secretary shall periodically
conduct accuracy checks of randomly sampled child care
providers participating in any State Child Care Information
Network to determine whether the providers are updating their
slot availability on a weekly basis, and if not, estimate the
statewide rate at which the providers are doing so.
``(2) Privacy; security.--The Secretary shall issue
guidance regarding data interoperability (in accordance with
the data exchange standards for interoperability) and the
privacy and security of personally identifiable information in
any State Child Care Information Network.
``(3) Penalty for excessive errors in state child care
information network.--The percentage specified in subsection
(b)(2)(A) with respect to a State shall be 70 percent if--
``(A) a check conducted under paragraph (1) of this
subsection reveals that the number of child care
providers erroneously included or erroneously not
included in the State Child Care Information Network is
at least 10 percent of the number of providers included
in the network; and
``(B) the State has not submitted to the Secretary
a report demonstrating that action has been taken to
reduce that error rate to less than 10 percent.
``(4) Eligible expenditures.--The Secretary shall issue
guidance to States which specifies the expenditures that will
be considered eligible expenditures for purposes of this
section.
``(5) Publication of amount of eligible expenditures of
each state.--Before issuing grant awards for fiscal year 2023
or a succeeding fiscal year, the Secretary, in consultation
with the States, shall annually publish the amount of eligible
expenditures of each State in the preceding fiscal year.
``(e) Appropriation.--Out of any funds in the Treasury not
otherwise appropriated, there is appropriated $50,000,000 for each of
fiscal years 2022 through 2026 for administrative expenses in carrying
out subsections (c) and (d).''.
SEC. 132002. INFRASTRUCTURE GRANTS TO IMPROVE CHILD CARE SAFETY.
Part A of title IV of the Social Security Act (42 U.S.C. 601-619)
is further amended by inserting after section 418A the following:
``SEC. 418B. INFRASTRUCTURE GRANTS TO IMPROVE CHILD CARE SAFETY.
``(a) Child Care Facilities Grants.--
``(1) Grants to states.--
``(A) In general.--The Secretary shall award grants
to States for the purpose of helping child care
providers acquire, construct, renovate, or improve
child care facilities, including adapting,
reconfiguring, or expanding facilities.
``(B) Duration of grants.--The Secretary shall
award grants under this paragraph within 12 months
after the date of the enactment of this section, for a
period of not more than 5 years.
``(C) Plan approval required before using grant.--A
State to which a grant is made under this paragraph
shall not obligate or expend the grant funds unless the
State has submitted to the Secretary, and the Secretary
has approved, a plan that--
``(i) includes an analysis or assessment,
in such form and manner as the Secretary may
require, of the need of the State for child
care infrastructure;
``(ii) is submitted at such time, in such
manner, and containing such other information
as the Secretary may require, which information
shall--
``(I) be disaggregated as the
Secretary may require; and
``(II) include a plan to use a
portion of the grant funds to report to
the Secretary on the effects of using
the grant funds to improve child care
facilities, including center-based and
home-based child care facilities; and
``(iii) complies with paragraph (3), if
applicable.
``(D) Requirement.--In allocating grants awards
under this paragraph, the Secretary shall require
approved plans to include elements that--
``(i) provide for improving center-based
and home-based child care programs to meet or
surpass State health and safety standards, or
include a project designed so that a facility
is expected to meet or surpass State health and
safety standards on completion of the project;
``(ii) aim to meet specific needs across
urban, suburban, or rural areas as determined
by the State;
``(iii) show evidence of collaboration
with--
``(I) local government officials;
``(II) other State agencies;
``(III) nongovernmental
organizations, such as--
``(aa) certified community
development financial
institutions as defined in
section 103 of the Community
Development Banking and
Financial Institutions Act of
1994 (12 U.S.C. 4702) that have
been certified by the Community
Development Financial
Institutions Fund (12 U.S.C.
4703); and
``(bb) organizations that
have demonstrated experience
in--
``(AA) providing
technical or financial
assistance for the
acquisition,
construction,
renovation, or
improvement of child
care facilities;
``(BB) providing
technical, financial,
or managerial
assistance to child
care providers; and
``(CC) securing
private sources of
capital financing for
child care facilities
or other community
development projects
eligible for assistance
from a child care
assistance program; and
``(IV) local community
organizations, such as--
``(aa) child care
providers;
``(bb) community care
agencies;
``(cc) resource and
referral agencies; and
``(dd) labor unions and
other employers of
infrastructure trades that pay
the prevailing wage; and
``(iv) provide for improving the facilities
of child care providers who qualify for the HHS
Participating Child Care Provider Certification
for at least 1 fiscal quarter before the date
of application for the grant.
``(E) Matching requirement.--
``(i) In general.--As a condition of the
receipt of a grant under this paragraph, a
State shall agree to make available, directly
or through donations from public or private
entities, contributions with respect to the
costs to be covered by the grant, which may be
provided in cash or in kind, in an amount equal
to 10 percent of the funds provided through the
grant.
``(ii) Determination of amount
contributed.--Such a matching contribution may
include philanthropic or private-sector funds.
``(F) Amount limit.--The annual amount of a grant
under this paragraph may not exceed $250,000,000.
``(G) Prohibition.--The Secretary may not, as a
condition of making a grant under this paragraph or
section 418D, retain an interest in any property,
including any project involving a privately-owned
family child care home or tribal land.
``(H) Report.--Not later than 6 months after the
last day of the grant period, a State to which a grant
is made under this paragraph shall submit to the
Secretary the report referred to in subparagraph
(C)(ii)(II)--
``(i) to determine the effects of the grant
in constructing, renovating, or improving child
care facilities, including any changes in
response to public health guidelines or efforts
associated with natural disaster emergency
preparedness and response and any effects on
access to child care; and
``(ii) to provide such other information as
the Secretary may require.
``(I) Return of grant if plan not approved within 2
years.--A State to which a grant is made under this
paragraph shall remit the grant to the Secretary if the
Secretary has not provided the approval required by
subparagraph (C) within 2 years after the date the
grant is made.
``(2) Grants to intermediary organizations.--
``(A) In general.--The Secretary may award grants
to intermediary organizations, such as certified
community development financial institutions or other
organizations with demonstrated experience in child
care facilities financing, for the purpose of providing
technical assistance, capacity-building, and financial
products to develop or finance child care facilities.
``(B) Application.--A grant under this paragraph
may be made only to an intermediary organization that
submits to the Secretary an application at such time,
in such manner, and containing such information as the
Secretary may require, that complies with paragraph (3)
if applicable.
``(C) Consultation.--In selecting intermediary
organizations for grants under this paragraph, the
Secretary shall conduct consultations with
organizations that--
``(i) demonstrate experience in child care
facility financing or related community
facility financing;
``(ii) demonstrate the capacity to assist
States and local governments in developing
child care facilities and programs;
``(iii) demonstrate the ability to leverage
grant funding to support financing tools to
build the capacity of child care providers,
such as through credit enhancements;
``(iv) propose to focus on child care
facilities that operate under nontraditional
hours;
``(v) propose to meet a diversity of needs
across urban, suburban, and rural areas at
varying types of center-based, home-based, and
other child care settings, including early care
programs located in buildings in which the care
center is the sole occupant or in mixed-use
properties; and
``(vi) propose to focus on child care
facilities primarily serving low-income
populations and children who have not attained
13 years of age.
``(D) Amount limit.--The amount of a grant under
this paragraph may not exceed $15,000,000.
``(E) Annual report required.--As a condition of
receiving funds under this paragraph, the recipient
shall submit annual reports to the lead agency of the
jurisdiction in which the recipient is located
documenting how the recipient has expended the funds
and updating the planned future expenditures described
in the application submitted by the recipient for the
funds.
``(3) Labor standards.--In the case of an application for a
grant under this subsection for a project to construct,
renovate, or improve a child care facility, including a project
to adapt, reconfigure, or expand such a facility, the
application shall include a written assurance that all laborers
and mechanics employed by contractors or subcontractors in the
performance of construction, alteration, or repair, as part of
the project, shall be paid wages at rates not less than those
prevailing on similar work in the locality as determined by the
Secretary of Labor in accordance with subchapter IV of chapter
of part A of subtitle II of title 40, United States Code
(commonly referred to as the `Davis-Bacon Act'), and with
respect to the labor standards specified in such subchapter,
the Secretary of Labor shall have the authority and functions
set forth in Reorganization Plan Numbered 14 of 1950 (15 Fed.
Reg. 3176; 5 U.S.C. App.).
``(4) Use of funds.--
``(A) Infrastructure improvement.--
``(i) In general.--A recipient of funds
under this subsection may use the funds only to
acquire, construct, renovate, or otherwise
physically improve the infrastructure of a
building primarily used for the provision of
child care services by a child care provider,
subject to clause (ii).
``(ii) Prohibition.--A recipient of funds
under this subsection may not use the funds for
modernization, renovation, or repair of
facilities--
``(I) that are primarily used for
sectarian instruction or religious
worship; or
``(II) in which a substantial
portion of the functions of the
facilities are subsumed in a religious
mission.
``(B) Rules applicable to lead agencies.--A lead
agency that is a recipient of funds under this
subsection may use not more than 5 percent of the funds
for administrative purposes which may be in addition to
evaluation and reporting activities, and shall use the
balance of the funds to enter into grants or contracts,
on a competitive basis, with entities to carry out
projects to acquire, construct, renovate, or complete
other physical improvements to buildings in which child
care services are provided or will be provided on
completion of the project.
``(b) Appropriation.--Out of any funds in the Treasury not
otherwise appropriated, there is appropriated $15,000,000,000 for
fiscal year 2022 to carry out this section, which shall remain
available through fiscal year 2026.
``(c) Reservations of Funds.--
``(1) Territories.--The Secretary shall reserve
$100,000,000 of the amount made available to carry out this
section, for grants to territories.
``(2) Administration.--The Secretary may reserve not more
than $200,000,000 of the amount made available to carry out
this section, for administrative costs.
``(3) Assessments and development plans.--The Secretary
shall reserve for each lead agency not more than $100,000 to
conduct assessments and develop plans for obligating and
expending funds provided under this section, which may be
expended by a lead agency immediately on receipt.
``(4) Data exchange standards for interoperability.--The
Secretary may reserve not more than $200,000 of the amount made
available to carry out this section to implement data exchange
standards for interoperability.
``(d) Limitation on Availability of Funds for Grants for
Intermediary Organizations.--Not more than $2,250,000,000 of the total
amount made available to carry out this section may be used to carry
out subsection (a)(2).''.
SEC. 132003. TECHNICAL ASSISTANCE.
Part A of title IV of the Social Security Act (42 U.S.C. 601-619)
is further amended by inserting after section 418B the following:
``SEC. 418C. TECHNICAL ASSISTANCE.
``(a) In General.--
``(1) Child care information network.--The Secretary shall
provide technical assistance to lead agencies to support the
development and implementation of, and ongoing full
participation in, State Child Care Information Networks
provided for in section 418A(a)(4).
``(2) Child care infrastructure.--The Secretary shall
provide technical assistance--
``(A) to child care small business owners,
entrepreneurs, nonprofit organizations, and child care
infrastructure grant recipients, for the purpose of
starting new licensed child care businesses, or re-
opening a closed child care facility, in areas in which
there is a child care shortage or that are at risk of
having such a shortage;
``(B) to State and local governments to incentivize
public-private partnerships to identify excess
buildings and land and conduct feasibility studies, for
new or expanded child care options that could be
available to child care entrepreneurs and
infrastructure grantees, or used for publicly-run child
care facilities; and
``(C) to support child care business technical
assistance, which may include strategies to support
management training and shared services initiatives
including provider networks such as child care center
alliances and family child care home provider networks,
as well as fundamental business support needs such as
budgeting and fiscal management skills, business
planning, understanding the cost of quality, and core
best business practices such as recordkeeping and
payment reconciliation.
``(3) Supplementing national technical assistance
efforts.--The Secretary may provide technical assistance to
States (and submit to the Congress reports on technical
assistance activities) to increase child care availability and
affordability, including by--
``(A) providing technical assistance on best
practices for conducting market rate surveys and
establishing State reimbursement rates and price-per-
child rates for child care for children who have not
attained 13 years of age;
``(B) increasing child care availability in tribal
communities for families with children who have not
attained 13 years of age;
``(C) improving the effectiveness and affordability
of child care assistance programs in meeting the needs
of low-income parents; or
``(D) collecting, managing, analyzing, and
reporting child care administrative data, and use the
data to support documentation of changes in child care
availability and affordability.
``(b) Administrative Provision.--The Secretary may carry out this
section through means including the use of grants or cooperative
agreements.
``(c) Appropriation.--Out of any funds in the Treasury not
otherwise appropriated, there is appropriated $17,500,000 for each of
fiscal years 2022 through 2026 to carry out this section.''.
SEC. 132004. TRIBAL CHILD CARE ACCESS AND GROWTH.
Part A of title IV of the Social Security Act (42 U.S.C. 601-619)
is further amended by inserting after section 418C the following:
``SEC. 418D. TRIBAL CHILD CARE ACCESS AND GROWTH.
``(a) HHS Consultations With Indian Tribes.--Of the amount
appropriated under subsection (e) for each fiscal year, the Secretary
shall use not more than $1,000,000 to--
``(1) conduct such consultations with Indian tribes and
tribal organizations as are necessary to determine how to
better conduct consumer outreach and education and provide
timely availability for child care slots, improve child care
infrastructure, and otherwise inform best practices and
guidelines for carrying out the activities described in
subsection (b); and
``(2) provide technical assistance to the lead agencies of
Indian tribes and tribal organizations with respect to carrying
out the activities.
``(b) Activities Described.--The activities described in this
subsection are the following:
``(1) Planning, start-up, implementation, and maintenance
costs associated with establishing and funding a Child Care
Information Network designed to help parents determine which
child care providers can meet their child care needs and to
give parents ease of access in enrolling their children in
child care.
``(2) Coordinating with the Secretary regarding the HHS
Participating Child Care Provider Certification provided for in
section 418A(c).
``(3) Conducting infrastructure projects to improve the
safety of child care facilities.
``(c) Grants.--
``(1) In general.--Of the amount appropriated under
subsection (e) for each fiscal year, the Secretary shall use
not less than $199,000,000 to make grants to the lead agencies
of Indian tribes and tribal organizations for activities
described in subsection (b), which are to be carried out in
accordance with such rules as the Secretary may prescribe,
taking into account the results of the consultations conducted
under subsection (a)(1).
``(2) Allocation.--The Secretary may make grants under this
subsection according to relative need.
``(d) Nonsupplantation.--An entity to which an amount is provided
under this section shall use the amount to supplement, but not
supplant, other funds provided for any purpose or activity for which
the amount is used.
``(e) Appropriation.--Out of any funds in the Treasury not
otherwise appropriated, there is appropriated to the Secretary
$200,000,000 for each of fiscal years 2022 through 2026 to carry out
this section.''.
SEC. 132005. RAISING THE FLOOR FOR CHILD CARE PROVIDER WAGES.
(a) Planning for Child Care Wage Grants for Small Businesses.--
(1) In general.--For the purpose of maintaining an
effective and diverse child care workforce, effective upon
enactment, through the end of fiscal year 2022, the Secretary
of Health and Human Services shall, regarding the development
and implementation of the Child Care Wage Grant program
provided for in section 418E of the Social Security Act (as
added by subsection (b) of this section)--
(A) issue guidance or technical assistance to lead
agencies (as defined in such section) with respect to--
(i) consultation with field engagement
organizations (as defined in such section);
(ii) wage supplement calculations, with the
option of providing a bonus that may not be
more than the equivalent of an annual wage;
(iii) application requirements;
(iv) reporting requirements;
(v) anti-discrimination protection
measures; and
(vi) other related activities;
(B) engage in hiring, training, developing work
plans, developing outreach materials, and other
administrative overhead activities; and
(C) consult with relevant entities such as tribal
leaders, governors, county and local government, and
community stakeholders.
(2) Funding.--Out of any money in the Treasury not
otherwise appropriated, there is appropriated to the Secretary
of Health and Human Services $10,000,000, to remain available
through September 30, 2022, to carry out this paragraph.
(b) Implementation.--Part A of title IV of the Social Security Act
(42 U.S.C. 601-619) is further amended by inserting after section 418D
the following:
``SEC. 418E. CHILD CARE WAGE GRANTS FOR SMALL BUSINESSES.
``(a) Grants to Lead Agencies.--
``(1) Grants.--
``(A) In general.--The Secretary shall make grants
to reimburse State, tribal, and territorial lead
agencies for the amount of child care wage grants made
to qualifying child care providers under lead agency
child care wage grant programs, and for documented
costs of administering the programs that are directly
related to determining provider eligibility, making
payments, data collection, and verifying provider
compliance with program rules.
``(B) Limitation on reimbursement for documented
administrative costs.--The amount of the reimbursement
for the documented administrative costs shall not
exceed 5 percent of the total amount of the child care
wage grants.
``(2) Consultation required as a condition of
eligibility.--A lead agency shall not be eligible for a grant
under this section with respect to a child care wage grant
program unless the lead agency has consulted with field
engagement organizations in developing and implementing the
program, including application process, eligibility
determinations, community outreach, and such other aspects of
the program as the Secretary deems appropriate, and if, after
the consultation, the lead agency intends to operate a child
care wage grant program for small businesses, the lead agency
shall submit to the Secretary a certification that the lead
agency has conducted such a consultation and intends to submit
a claim for reimbursement with respect to program expenditures
at the end of the fiscal year.
``(b) State Child Care Wage Grant Program.--
``(1) In general.--A lead agency child care wage grant
program is a program operated by a lead agency under which a
child care wage grant is made to qualified child care providers
for the 1-year period covered by the grant, in an amount equal
to the aggregate of the eligible child care wage supplements
provided by the qualified child care provider during the year,
which year shall not begin before October 1, 2022.
``(2) Reporting requirement.--
``(A) In general.--A recipient of a child care wage
grant from a lead agency shall submit to the lead
agency every fiscal quarter a report that includes
documentation of how the grant has been expended
including the number of full or part-time workers
providing child care and whether each such worker
worked for the full year, a description of the wage
levels and demographics of the child care employees of
the qualified child care provider, and such other
information as the Secretary may require, and may allow
field engagement organizations to support grant
recipients in meeting quarterly reporting requirements.
``(B) Authority to extend deadline.--A lead agency
may approve a request from such a recipient to extend
the reporting deadline for 90 days, but shall accompany
such an approval with a notice that failure to submit
all information required in the report will result in
future ineligibility for such a grant.
``(c) Reimbursement; Advance Estimated Payment.--A lead agency may
submit to the Secretary a request for reimbursement or estimated
advance payment of the costs of operating the lead agency child care
wage grant program for the 1-year period covered by the request, which
shall include documentation of the grant awards made to qualified child
care providers under the program, an assurance that not more than 5
percent of the costs in the reimbursement request are for
administrative costs, an assurance that the State will repay any
advances based on payments to child care providers that were in excess
of costs allowable under this section (including payments for workers
who did not work for the full year) or based on State administrative
costs in excess of 5 percent, and the following:
``(1) Qualified child care provider application data,
including the number of qualified child care providers and the
proportion of applications that were approved under the
program, documentation of rejected applications, including the
reason for disqualification, and demographic data of
applicants.
``(2) Qualified child care provider wage subsidy data,
including wage levels, the size and type of the qualified child
care provider, the number of children served by the qualified
child care provider, verification that the child care wage
grant provided to the qualified child care provider was not
used to supplant Federal funds, verification that the qualified
child care provider performs child care services as the primary
function of the qualified child care provider, verification
that qualifying child care provider applications are approved
for 1 year, and documentation of the number of full-time and
part-time child care employees (which may include sole
proprietors) including the portion of the year for which each
employee was employed with that provider to provide child care.
``(3) Certification that each qualified child care provider
is not eligible to receive a child care payroll tax credit
under section 3135 of the Internal Revenue Code of 1986 with
respect to wages paid to any child care employee of the
qualified child care provider.
``(4) Qualified child care provider demographic data,
including racial, ethnic, and gender data of the qualified
child care provider and child care employees.
``(5) Documentation of qualified child care provider wages,
and documentation of child care wages that, in the absence of a
grant made under this section, would have been paid at not less
than the applicable minimum rate.
``(6) Documentation that each qualified child care provider
is licensed by, registered with, or regulated by the State.
``(7) Documentation that each qualified child care provider
was so qualified throughout the year with respect to which
reimbursement is sought.
``(8) Documentation that each employee for which a grant is
sought was employed for the full year, or if not, for what
portion of the year they were employed.
``(9) Such other relevant items as the Secretary may
require.
``(d) Penalties.--
``(1) Misuse of child care wage grant.--If the Secretary
finds that a qualified child care provider has used funds
provided under this section with respect to a year other than
to supplement the applicable minimum rate of child care wages
for an employee engaged in child care work for the reported
period, the qualified child care provider shall--
``(A) repay to the lead agency all funds so
provided to the child care provider for the year; and
``(B) be ineligible for the succeeding 2 years to
receive funds made available under this section.
``(2) Decrease in number of child care employees.--If a
recipient of a child care wage grant for a year reports under
subsection (b)(2)(A) that the number of child care employees of
the recipient has decreased during the year, then--
``(A) the lead agency shall proportionately
decrease the amount of the child care wage grant (if
any) payable to the recipient for the next year; or
``(B) if the recipient is not awarded a child care
wage grant for the next year, the recipient shall remit
to the lead agency a portion of the grant equal to the
proportionate decrease in the number of child care
employees of the provider.
``(e) Appropriation.--Out of any money in the Treasury not
otherwise appropriated, there is appropriated to the Secretary for each
of fiscal years 2023 through 2026 such sums as may be necessary for
reimbursements or estimated payments referred to in subsection (a).
``(f) Definitions.--In this section:
``(1) Applicable minimum rate.--The term `applicable
minimum rate' means the rate at which basic pay is payable for
a position at level 3, step 1, of the General Schedule under
subchapter III of chapter 53 of title 5, United States Code,
including any applicable locality-based comparability payment
under section 5304 of such title or similar authority, at the
time such wages are paid and determined with respect to the
locality in which services are provided.
``(2) Child care wages.--The term `child care wages'
means--
``(A) wages paid to an employee for services in
providing child care; and
``(B) an owner's draw in lieu of wages, in the case
of a sole proprietor who provides child care services
or an owner who directly provides child care services
alongside employees.
``(3) Child care employee.--The term `child care employee'
means an employee--
``(A) who is employed by a qualified child care
provider;
``(B) who provides child care services as a primary
function of employment; and
``(C) whose wages do not qualify under section
3135(a) of the Internal Revenue Code of 1986.
``(4) Eligible child care wage supplement.--
``(A) In general.--The term `eligible child care
wage supplement' means, with respect to a year, a
supplement to child care wages of an employee (or
owner), but only to the extent that the total amount of
the child care wage supplements provided to the
employee (or owner) during the year--
``(i) in the case of a full-time employee
(or an owner who works on a full-time basis),
is not more than $16,000; or
``(ii) in the case of a part-time employee
(or an owner who works on a part-time basis),
is not more than $10,000.
In the case of any employee who is not employed as a
child care employee for the full year, the maximum
dollar amounts set forth in the preceding sentence
shall be proportionately reduced.
``(B) Inflation adjustment.--Each dollar amount in
effect under subparagraph (A) with respect to a year
shall be increased by a percentage equal to the
percentage (if any) by which the Consumer Price Index
for all urban consumers (U.S. city average) increased
during the 12-month period ending with the last month
for which Consumer Price Index data is available.
``(5) Field engagement organization.--The term `field
engagement organization' means any nonprofit, community-based
organization, labor union, trade association, staffed family
child care network, child care resource and referral
organization, or local government entity with experience
providing representation, technical assistance, or community
supports to child care providers or individuals seeking to
enter or re-enter the child care market.
``(6) Qualified child care provider.--The term `qualified
child care provider' means an entity who--
``(A) provides child care services as the primary
function of the entity;
``(B) is registered with, or regulated or licensed
by, the State as a child care provider;
``(C) at the time of application for a child care
wage grant under this section, does not have an
unresolved violation of a State law or regulation
pertaining to health or safety in the provision of
child care services;
``(D) has at least 1 employee whose wages may not
be taken into account under section 3135(a) of the
Internal Revenue Code of 1986 because the employee is a
sole proprietor or reports self-employment income;
``(E) as of the time of the application, pays child
care wages at a rate that is at least the applicable
minimum rate, and certifies that the entity will not
reduce the hourly wage rate of any employee during the
1-year period for which the entity has applied for a
child care wage grant under this section; and
``(F) has submitted to the lead agency all data
requested by the Secretary under this section;
``(G) has submitted the application to the lead
agency, which has approved the application; and
``(H) has not failed to include all information
required to be included in any quarterly report
required by subsection (b)(2) to be submitted by the
entity with respect to the year preceding the year for
which the application is submitted.''.
SEC. 132006. COMMON PROVISIONS.
(a) Definitions.--Section 419 of the Social Security Act (42 U.S.C.
619) is amended by adding at the end the following:
``(6) Lead agency.--The term `lead agency' means, with
respect to a jurisdiction, the lead agency responsible for
administering the child care assistance program of the
jurisdiction.
``(7) Territory.--The term `territory' means the
Commonwealth of Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, and the Commonwealth of the Northern
Mariana Islands.''.
(b) Reports to the Congress.--Section 411 of such Act (42 U.S.C.
611) is amended by adding at the end the following:
``(e) Reports on Certain State Child Care Expenditures.--The
Secretary shall submit to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the Senate biennial
reports on--
``(1) eligible expenditures (as defined in section
418A(b)(2)(B)) by the States, and on expenditures by the
Secretary under section 418A during the period covered by the
report;
``(2) the extent to which payments under section 418A have
been made with respect to the expenditures;
``(3) to the extent that any funds made available to carry
out such section have not been expended, the reasons therefor;
and
``(4) expenditures under section 418C.''.
(c) Inapplicability of Payment Limitation.--Section 1108(a) of such
Act (42 U.S.C. 1308(a)) is amended by inserting ``418A, 418B, 418C,
418D, 418E,'' before ``or''.
Subtitle D--Trade Adjustment Assistance
SEC. 133001. SHORT TITLE.
This subtitle may be cited as the ``Trade Adjustment Assistance
Modernization Act of 2021''.
SEC. 133002. APPLICATION OF PROVISIONS RELATING TO TRADE ADJUSTMENT
ASSISTANCE.
(a) Effective Date; Applicability.--Except as otherwise provided in
this subtitle, the provisions of chapters 2 through 6 of title II of
the Trade Act of 1974, as in effect on June 30, 2021, and as amended by
this subtitle, shall--
(1) take effect on the date of the enactment of this Act;
and
(2) apply with respect to petitions for certification filed
under chapter 2, 3, 4, or 6 of title II of the Trade Act of
1974 on or after such date of enactment.
(b) Reference.--Except as otherwise provided in this subtitle,
whenever in this subtitle an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a provision of chapters 2 through 6
of title II of the Trade Act of 1974, the reference shall be considered
to be made to a provision of any such chapter, as in effect on June 30,
2021.
(c) Repeal of Snapback.--Section 406 of the Trade Adjustment
Assistance Reauthorization Act of 2015 (Public Law 114-27; 129 Stat.
379) is repealed.
PART 1--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS
SEC. 133101. FILING PETITIONS.
Section 221(a)(1) of the Trade Act of 1974 (19 U.S.C. 2271(a)(1))
is amended--
(1) by amending subparagraph (A) to read as follows:
``(A) One or more workers in the group of workers.''; and
(2) in subparagraph (C), by striking ``or a State
dislocated worker unit'' and inserting ``a State dislocated
worker unit, or workforce intermediaries, including labor-
management organizations that carry out re-employment and
training services''.
SEC. 133102. GROUP ELIGIBILITY REQUIREMENTS.
(a) In General.--Section 222(a)(2) of the Trade Act of 1974 (19
U.S.C. 2272(a)(2)) is amended--
(1) in subparagraph (A)--
(A) in clause (i), by inserting ``, failed to
increase, or will decrease absolutely due to a
scheduled or imminently anticipated, long-term decrease
in or reallocation of the production capacity of the
firm'' after ``absolutely''; and
(B) in clause (iii)--
(i) by striking ``to the decline'' and
inserting ``to any decline or absence of
increase''; and
(ii) by striking ``or'' at the end;
(2) in subparagraph (B)(ii), by striking the period at the
end and inserting ``; or''; and
(3) by adding at the end the following:
``(C)(i) the sales or production, or both, of such firm
have decreased;
``(ii)(I) exports of articles produced or services supplied
by such workers' firm have decreased; or
``(II) imports of articles or services necessary for the
production of articles or services supplied by such firm have
decreased; and
``(iii) the decrease in exports or imports described in
clause (ii) contributed to such workers' separation or threat
of separation and to the decline in the sales or production of
such firm.''.
(b) Repeal.--Section 222 of the Trade Act of 1974 (19 U.S.C. 2272)
is amended--
(1) in subsections (a) and (b), by striking ``importantly''
each place it appears; and
(2) in subsection (c)--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) through (4) as
paragraphs (1) through (3), respectively.
(c) Eligibility of Staffed Workers and Teleworkers.--Section 222 of
the Trade Act of 1974 (19 U.S.C. 2272), as amended by subsection (b),
is further amended by adding at the end the following:
``(f) Treatment of Staffed Workers and Teleworkers.--
``(1) In general.--For purposes of subsection (a), workers
in a firm include staffed workers and teleworkers.
``(2) Definitions.--In this subsection:
``(A) Staffed worker.--The term `staffed worker'
means a worker who performs work under the operational
control of a firm that is the subject of a petition
filed under section 221, even if the worker is directly
employed by another firm.
``(B) Teleworker.--The term `teleworker' means a
worker who works remotely but who reports to the
location listed for a firm in a petition filed under
section 221.''.
SEC. 133103. APPLICATION OF DETERMINATIONS OF ELIGIBILITY TO WORKERS
EMPLOYED BY SUCCESSORS-IN-INTEREST.
Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is amended by
adding at the end the following:
``(f) Treatment of Workers of Successors-in-Interest.--If the
Secretary certifies a group of workers of a firm as eligible to apply
for adjustment assistance under this chapter, a worker of a successor-
in-interest to that firm shall be covered by the certification to the
same extent as a worker of that firm.''.
SEC. 133104. PROVISION OF BENEFIT INFORMATION TO WORKERS.
Section 225 of the Trade Act of 1974 (19 U.S.C. 2275) is amended--
(1) in subsection (a), by inserting after the second
sentence the following new sentence: ``The Secretary shall make
every effort to provide such information and assistance to
workers in their native language.''; and
(2) in subsection (b)--
(A) by redesignating paragraph (2) as paragraph
(3);
(B) by inserting after paragraph (1) the following:
``(2) The Secretary shall provide a second notice to a worker
described in paragraph (1) before the worker has exhausted all rights
to any unemployment insurance to which the worker is entitled (other
than additional compensation described in section 231(a)(3)(B) funded
by a State and not reimbursed from Federal funds).'';
(C) in paragraph (3), as redesignated by paragraph
(1), by striking ``newspapers of general circulation''
and inserting ``appropriate print or digital outlets'';
and
(D) by adding at the end the following:
``(4) For purposes of providing sustained outreach regarding the
benefits available under this chapter to workers covered by a
certification made under this subchapter, the Secretary may take any
necessary actions, including the following:
``(A) Collecting the email addresses and telephone numbers
of such workers from the employers of such workers to provide
sustained outreach to such workers.
``(B) Partnering with the certified or recognized union, a
community-based worker organization, or other duly authorized
representatives of such workers.
``(C) Hiring peer support workers to perform sustained
outreach to other workers covered by that certification.
``(D) Using advertising methods and public information
campaigns, including social media, in addition to notice
published in print or digital outlets under paragraph (3).''.
SEC. 133105. QUALIFYING REQUIREMENTS FOR WORKERS.
(a) Modification of Conditions.--
(1) In general.--Section 231(a) of the Trade Act of 1974
(19 U.S.C. 2291(a)) is amended--
(A) by striking paragraph (2);
(B) by redesignating paragraphs (3), (4), and (5)
as paragraphs (2), (3), and (4), respectively; and
(C) in paragraph (4) (as redesignated), by striking
``paragraphs (1) and (2)'' each place it appears and
inserting ``paragraph (1)''.
(2) Conforming amendments.--(A) Section 232 of the Trade
Act of 1974 (19 U.S.C. 2292) is amended by striking ``section
231(a)(3)(B)'' each place it appears and inserting ``section
231(a)(2)(B)''.
(B) Section 233(a) of the Trade Act of 1974 (19 U.S.C.
2293(a)) is amended--
(i) in paragraph (1), by striking ``section
231(a)(3)(A)'' and inserting ``section 231(a)(2)(A)'';
and
(ii) in paragraph (2)--
(I) by striking ``adversely affected
employment'' and all that follows through ``(A)
within'' and inserting ``adversely affected
employment within'';
(II) by striking ``, and'' and inserting a
period; and
(III) by striking subparagraph (B).
(b) Waivers of Training Requirements.--Section 231(c)(1) of the
Trade Act of 1974 (19 U.S.C. 2291(c)(1)) is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
subparagraphs (C), (D), and (E), respectively; and
(2) by inserting before subparagraph (C) (as redesignated)
the following:
``(A) Recall.--The worker has been notified that
the worker will be recalled by the firm from which the
separation occurred.
``(B) Retirement.--The worker is within 2 years of
meeting all requirements for entitlement to either--
``(i) old-age insurance benefits under
title II of the Social Security Act (42 U.S.C.
401 et seq.) (except for application therefor);
or
``(ii) a private pension sponsored by an
employer or labor organization.''.
SEC. 133106. MODIFICATION TO TRADE READJUSTMENT ALLOWANCES.
Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended--
(1) in subsection (a)--
(A) in paragraph (2), by inserting after ``104-week
period'' the following: ``(or, in the case of an
adversely affected worker who requires a program of
prerequisite education or remedial education (as
described in section 236(a)(5)(D)) in order to complete
training approved for the worker under section 236, the
130-week period)'';
(B) in paragraph (3), by striking ``65 additional
weeks in the 78-week period'' and inserting ``78
additional weeks in the 91-week period''; and
(C) in the flush text, by striking ``78-week
period'' and inserting ``91-week period'';
(2) by striking subsection (d); and
(3) by amending subsection (f) to read as follows:
``(f) Payment of Trade Readjustment Allowances to Complete
Training.--Notwithstanding any other provision of this section, in
order to assist an adversely affected worker to complete training
approved for the worker under section 236 that includes a program of
prerequisite education or remedial education (as described in section
236(a)(5)(D)), and in accordance with regulations prescribed by the
Secretary, payments may be made as trade readjustment allowances for up
to 26 additional weeks in the 26-week period that follows the last week
of entitlement to trade readjustment allowances otherwise payable under
this chapter.''.
SEC. 133107. AUTOMATIC EXTENSION OF TRADE READJUSTMENT ALLOWANCES.
(a) In General.--Part I of subchapter B of chapter 2 of title II of
the Trade Act of 1974 (19 U.S.C. 2291 et seq.) is amended by inserting
after section 233 the following new section:
``SEC. 233A. AUTOMATIC EXTENSION OF TRADE READJUSTMENT ALLOWANCES.
``(a) In General.--Notwithstanding the limitations under section
233(a), the Secretary shall extend the period during which trade
readjustment allowances are payable to an adversely affected worker who
completes training approved under section 236 by the Secretary during a
period of heightened unemployment with respect to the State in which
such worker seeks benefits, for the shorter of--
``(1) the 26-week period beginning on the date of
completion of such training; or
``(2) the period ending on the date on which the adversely
affected worker secures employment.
``(b) Job Search Required.--A worker shall only be eligible for an
extension under subsection (a) if the worker is complying with the job
search requirements associated with unemployment insurance in the
applicable State.
``(c) Period of Heightened Unemployment Defined.--In this section,
the term `period of heightened unemployment' with respect to a State
means a 90-day period during which, in the determination of the
Secretary, either of the following average rates equals or exceeds 5.5
percent:
``(1) The average rate of total unemployment in such State
(seasonally adjusted) for the period consisting of the most
recent 3-month period for which data for all States are
published before the close of such period.
``(2) The average rate of total unemployment in all States
(seasonally adjusted) for the period consisting of the most
recent 3-month period for which data for all States are
published before the close of such period.''.
(b) Clerical Amendment.--The table of contents for the Trade Act of
1974 is amended by inserting after the item relating to section 233 the
following:
``Sec. 233A. Automatic extension of trade readjustment allowances.''.
SEC. 133108. EMPLOYMENT AND CASE MANAGEMENT SERVICES.
Section 235 of the Trade Act of 1974 (19 U.S.C. 2295) is amended--
(1) in paragraph (3)--
(A) by inserting after ``regional areas'' the
following: ``(including information about registered
apprenticeship programs, on-the-job training
opportunities, and other work-based learning
opportunities)''; and
(B) by inserting after ``suitable training'' the
following: ``, information regarding the track record
of a training provider's ability to successfully place
participants into suitable employment'';
(2) by redesignating paragraph (8) as paragraph (10); and
(3) by inserting after paragraph (7) the following:
``(8) Information related to direct job placement,
including facilitating the extent to which employers within the
community commit to employing workers who would benefit from
the employment and case management services under this section.
``(9) Sustained outreach to groups of workers likely to be
certified as eligible for adjustment assistance under this
chapter and members of certified worker groups who have not yet
applied for or been enrolled in benefits or services under this
chapter, especially such groups and members from underserved
communities.''.
SEC. 133109. TRAINING.
Section 236 of the Trade Act of 1974 (19 U.S.C. 2296(a)) is
amended--
(1) in subsection (a)--
(A) in paragraph (1)(D), by inserting ``, with a
demonstrated ability to place participants into
employment'' before the comma at the end;
(B) in paragraph (3), by adding at the end before
the period the following: ``, except that every effort
shall be made to ensure that employment opportunities
are available upon the completion of training''; and
(C) in paragraph (5)--
(i) in subparagraph (G), by striking ``,
and'' and inserting a comma;
(ii) in subparagraph (H)(ii), by striking
the period at the end and inserting ``, and'';
and
(iii) by adding at the end before the flush
text the following:
``(I) pre-apprenticeship training.''; and
(2) by adding at the end the following:
``(h) Reimbursement for Out-of-pocket Training Expenses.--If the
Secretary approves training for a worker under paragraph (1) of
subsection (a), the Secretary may reimburse the worker for out-of-
pocket expenses relating to training program described in paragraph (5)
of that subsection that were incurred by the worker on and after the
date of the worker's total or partial separation and before the date on
which the certification of eligibility under section 222 that covers
the worker is issued.''.
SEC. 133110. JOB SEARCH, RELOCATION, AND CHILD CARE ALLOWANCES.
(a) Job Search Allowances.--Section 237 of the Trade Act of 1974
(19 U.S.C. 2297) is amended--
(1) in subsection (a)(1), by striking ``may use funds made
available to the State to carry out sections 235 through 238''
and inserting ``shall use, from funds made available to the
State to carry out sections 235 through 238A, such amounts as
may be necessary'';
(2) in subsection (a)(2), in the matter preceding
subparagraph (A), by striking ``may grant'' and inserting
``shall grant''; and
(3) in subsection (b)--
(A) in paragraph (1), by striking ``not more than
90 percent'' and inserting ``100 percent'';
(B) in paragraph (2), by striking ``$1,250'' and
inserting ``$2,000 (subject to adjustment under
paragraph (4))''; and
(C) by adding at the end the following;
``(4) Adjustment of maximum allowance limitation for
inflation.--
``(A) In general.--The Secretary of Labor shall
adjust the maximum allowance limitation under paragraph
(2) on the date that is 30 days after the date of the
enactment of this paragraph, and at the beginning of
each fiscal year thereafter, to reflect the percentage
(if any) of the increase in the average of the Consumer
Price Index for the preceding 12-month period compared
to the Consumer Price Index for fiscal year 2020.
``(B) Special rules for calculation of
adjustment.--In making an adjustment under subparagraph
(A), the Secretary--
``(i) shall round the amount of any
increase in the Consumer Price Index to the
nearest dollar; and
``(ii) may ignore any such increase of less
than 1 percent.
``(C) Consumer price index defined.--For purposes
of this paragraph, the term `Consumer Price Index'
means the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics of the
Department of Labor.''.
(b) Relocation Allowances.--Section 238 of the Trade Act of 1974
(19 U.S.C. 2298) is amended--
(1) in subsection (a)(1), by striking ``may use funds made
available to the State to carry out sections 235 through 238''
and inserting ``shall use, from funds made available to the
State to carry out sections 235 through 238A, such amounts as
may be necessary'';
(2) in subsection (a)(2), in the matter preceding
subparagraph (A), by striking ``may be granted'' and inserting
``shall be granted'';
(3) in subsection (b)--
(A) in paragraph (1), by striking ``not more than
90 percent'' and inserting ``100 percent''; and
(B) in paragraph (2), by striking ``$1,250'' and
inserting ``$2,000 (subject to adjustment under
subsection (d))''; and
(4) by adding at the end the following:
``(d) Adjustment of Maximum Payment Limitation for Inflation.--
``(1) In general.--The Secretary of Labor shall adjust the
maximum payment limitation under subsection (b)(2) on the date
that is 30 days after the date of the enactment of this
subsection, and at the beginning of each fiscal year
thereafter, to reflect the percentage (if any) of the increase
in the average of the Consumer Price Index for the preceding
12-month period compared to the Consumer Price Index for fiscal
year 2020.
``(2) Special rules for calculation of adjustment.--In
making an adjustment under paragraph (1), the Secretary--
``(A) shall round the amount of any increase in the
Consumer Price Index to the nearest dollar; and
``(B) may ignore any such increase of less than 1
percent.
``(3) Consumer price index defined.--For purposes of this
subsection, the term `Consumer Price Index' means the Consumer
Price Index for All Urban Consumers published by the Bureau of
Labor Statistics of the Department of Labor.''.
(c) Child Care Allowances.--
(1) In general.--Part II of subchapter B of chapter 2 of
title II of the Trade Act of 1974 (19 U.S.C. 2295 et seq.) is
amended by adding at the end the following:
``SEC. 238A. CHILD CARE ALLOWANCES.
``(a) Child Care Allowances Authorized.--
``(1) In general.--Each State shall use, from funds made
available to the State to carry out sections 235 through 238A,
such amounts as may be necessary to allow an adversely affected
worker covered by a certification issued under subchapter A of
this chapter to file an application for a child care allowance
with the Secretary, and the Secretary may grant the child care
allowance, subject to the terms and conditions of this section.
``(2) Conditions for granting allowance.--A child care
allowance shall be granted if the allowance will assist an
adversely affected worker to attend training or seek suitable
employment, by providing for the care of one or more of the
minor dependents of the worker.
``(b) Amount of Allowance.--Any child care allowance granted to a
worker under subsection (a) shall not exceed $2,000 per minor dependent
per year.
``(c) Adjustment of Maximum Allowance Limitation for Inflation.--
``(1) In general.--The Secretary of Labor shall adjust the
maximum allowance limitation under subsection (b) on the date
that is 30 days after the date of the enactment of this
subsection, and at the beginning of each fiscal year
thereafter, to reflect the percentage (if any) of the increase
in the average of the Consumer Price Index for the preceding
12-month period compared to the Consumer Price Index for fiscal
year 2020.
``(2) Special rules for calculation of adjustment.--In
making an adjustment under paragraph (1), the Secretary--
``(A) shall round the amount of any increase in the
Consumer Price Index to the nearest dollar; and
``(B) may ignore any such increase of less than 1
percent.
``(3) Consumer price index defined.--For purposes of this
subsection, the term `Consumer Price Index' means the Consumer
Price Index for All Urban Consumers published by the Bureau of
Labor Statistics of the Department of Labor.''.
(2) Conforming amendments.--
(A) Limitations on administrative expenses and
employment and case management services.--Section 235A
of the Trade Act of 1974 (19 U.S.C. 2295a) is amended
in the matter preceding paragraph (1) by striking
``through 238'' and inserting ``through 238A''.
(B) Training.--Section 236(a)(2) of the Trade Act
of 1974 (19 U.S.C. 2296(a)(2)) is amended--
(i) in subparagraph (A), by striking ``and
238'' and inserting ``238, and 238A'';
(ii) in subparagraph (B), by striking ``and
238'' each place it appears and inserting
``238, and 238A'';
(iii) in subparagraph (C)(i), by striking
``and 238'' and inserting ``238, and 238A'';
(iv) in subparagraph (C)(v), by striking
``and 238'' and inserting ``238, and 238A'';
and
(v) in subparagraph (E), by striking ``and
238'' each place it appears and inserting
``238, and 238A''.
(3) Clerical amendment.--The table of contents for the
Trade Act of 1974 is amended by adding after the item relating
to section 238 the following new item:
``Sec. 238A. Child care allowances.''.
SEC. 133111. AGREEMENTS WITH STATES.
(a) Coordination.--Section 239(f) of the Trade Act of 1974 (19
U.S.C. 2311(f)) is amended--
(1) by striking ``(f) Any agreement'' and inserting the
following:
``(f)(1) Any agreement''; and
(2) by adding at the end the following:
``(2) In arranging for training programs to be carried out
under this chapter, each cooperating State agency shall, among
other factors, take into account and measure the progress of
the extent to which such programs--
``(A) achieve a satisfactory rate of completion and
placement in jobs that provide a living wage and that
increase economic security;
``(B) assist workers in developing the skills,
networks, and experiences necessary to advance along a
career path;
``(C) assist workers from underserved communities
to establish a work history, demonstrate success in the
workplace, and develop the skills that lead to entry
into and retention in unsubsidized employment; and
``(D) adequately serve individuals who face the
greatest barriers to employment, including people with
low incomes, people of color, immigrants, persons with
disabilities, and formerly incarcerated individuals.
``(3) Each cooperating State agency shall facilitate joint
cooperation between training programs, representatives of
workers, employers, and communities, especially in underserved
rural and urban regions, to ensure a fair and engaging
workplace that balances the priorities and well-being of
workers with the needs of businesses.
``(4) Each cooperating State agency shall seek, including
through agreements and training programs described in this
subsection, to ensure the reemployment of adversely affected
workers upon completion of training as described in section
236.''.
(b) Administration.--Section 239(g) of the Trade Act of 1974 (19
U.S.C. 2311(g)) is amended--
(1) by redesignating--
(A) paragraphs (1) through (4) as paragraphs (3)
through (6), respectively; and
(B) paragraph (5) as paragraph (8);
(2) by inserting before paragraph (3) (as redesignated) the
following:
``(1) review each layoff of more than 5 workers in a firm
to determine whether trade played a role in the layoff and
whether workers in such firm are potentially eligible to
receive benefits under this chapter,
``(2) perform sustained outreach to firms to facilitate and
assist with filing petitions under section 221 and collecting
necessary supporting information,'';
(3) in paragraph (3) (as redesignated), by striking ``who
applies for unemployment insurance of'' and inserting
``identified under paragraph (1) of unemployment insurance
benefits and'';
(4) in paragraph (4) (as redesignated), by inserting ``and
assist with'' after ``facilitate'';
(5) in paragraph (6) (as redesignated), by striking ``and''
at the end;
(6) by inserting after paragraph (6) (as redesignated) the
following:
``(7) perform sustained outreach to workers from
underserved communities and to firms that employ a majority or
a substantial percentage of workers from underserved
communities and develop a plan, in consultation with the
Secretary, for addressing common barriers to receiving services
that such workers have faced,'';
(7) in paragraph (8) (as redesignated), by striking ``funds
provided to carry out this chapter are insufficient to make
such services available, make arrangements to make such
services available through other Federal programs'' and
inserting ``support services are needed beyond what this
chapter can provide, make arrangements to coordinate such
services available through other Federal programs'' ; and
(8) by adding at the end the following:
``(9) develop a strategy to engage with local workforce
development institutions, including local community colleges
and other educational institutions, and
``(10) develop a comprehensive strategy to provide agency
staffing to support the requirements of paragraphs (1) through
(9).''.
(c) Staffing.--Section 239 of the Trade Act of 1974 (19 U.S.C.
2311) is amended by striking subsection (k) and inserting the
following:
``(k) Staffing.--An agreement entered into under this section shall
provide that the cooperating State or cooperating State agency shall
require that any individual engaged in functions (other than functions
that are not inherently governmental) to carry out the trade adjustment
assistance program under this chapter shall be a State employee covered
by a merit system of personnel administration.''.
SEC. 133112. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.
Section 246(a) of the Trade Act of 1974 (19 U.S.C. 2318(a)) is
amended--
(1) in paragraph (3)(B)(ii), by striking ``$50,000'' and
inserting ``$70,000 (subject to adjustment under paragraph
(8))'';
(2) in paragraph (5)(B)(i), by striking ``$10,000'' and
inserting ``$20,000 (subject to adjustment under paragraph
(8))''; and
(3) by adding at the end the following:
``(8) Adjustment of salary limitation and total amount of
payments for inflation.--
``(A) In general.--The Secretary of Labor shall
adjust the salary limitation under paragraph (3)(B)(ii)
and the amount under paragraph (5)(B)(i) on the date
that is 30 days after the date of the enactment of this
paragraph, and at the beginning of each fiscal year
thereafter, to reflect the percentage (if any) of the
increase in the average of the Consumer Price Index for
the preceding 12-month period compared to the Consumer
Price Index for fiscal year 2020.
``(B) Special rules for calculation of
adjustment.--In making an adjustment under subparagraph
(A), the Secretary--
``(i) shall round the amount of any
increase in the Consumer Price Index to the
nearest dollar; and
``(ii) may ignore any such increase of less
than 1 percent.
``(C) Consumer price index defined.--For purposes
of this paragraph, the term `Consumer Price Index'
means the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics of the
Department of Labor.''.
SEC. 133113. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO PUBLIC AGENCY
WORKERS.
(a) Definitions.--Section 247 of the Trade Act of 1974 (19 U.S.C.
2319) is amended--
(1) in paragraph (3)--
(A) in the matter preceding subparagraph (A), by
striking ``The'' and inserting ``Subject to section
222(d)(5), the''; and
(B) in subparagraph (A), by striking ``or service
sector firm'' and inserting ``, service sector firm, or
public agency''; and
(2) by adding at the end the following:
``(20) The term `public agency' means a department or
agency of a State or local government or of the Federal
Government.''.
(b) Group Eligibility Requirements.--Section 222 of the Trade Act
of 1974 (19 U.S.C. 2272), as amended by subsections (b) and (c) of
section 133102, is further amended--
(1) by redesignating subsections (c), (d), (e), and (f) as
subsections (d), (e), (f), and (g), respectively;
(2) by inserting after subsection (b) the following:
``(c) Adversely Affected Workers in Public Agencies.--A group of
workers in a public agency shall be certified by the Secretary as
eligible to apply for adjustment assistance under this chapter pursuant
to a petition filed under section 221 if the Secretary determines
that--
``(1) a significant number or proportion of the workers in
the public agency have become totally or partially separated,
or are threatened to become totally or partially separated;
``(2) the public agency has acquired from a foreign country
services like or directly competitive with services which are
supplied by such agency; and
``(3) the acquisition of services described in paragraph
(2) contributed to such workers' separation or threat of
separation.'';
(3) in subsection (d) (as redesignated), by adding at the
end the following:
``(5) Reference to firm.--For purposes of subsections (a)
and (b), the term `firm' does not include a public agency.'';
and
(4) in paragraph (2) of subsection (e) (as redesignated),
by striking ``subsection (a) or (b)'' and inserting
``subsection (a), (b), or (c)''.
SEC. 133114. DEFINITIONS.
(a) Extension of Adjustment Assistance for Workers to
Territories.--Section 247(7) of the Trade Act of 1974 (19 U.S.C.
2319(7)) is amended--
(1) by inserting ``, Guam, the Virgin Islands of the United
States, American Samoa, the Commonwealth of the Northern
Mariana Islands,'' after ``District of Columbia''; and
(2) by striking ``such Commonwealth.'' and inserting ``such
territories.''.
(b) Underserved Community.--Section 247 of the Trade Act of 1974
(19 U.S.C. 2319), as amended by section 133113(a), is further amended
by adding at the end the following:
``(21) The term `underserved community' means a community
with populations sharing a particular characteristic that have
been systematically denied a full opportunity to participate in
aspects of economic, social, or civic life, such as Black,
Latino, and Indigenous and Native American persons, Asian
Americans and Pacific Islanders, other persons of color,
members of other minority communities, persons with
disabilities, persons who live in rural areas, and other
populations otherwise adversely affected by persistent poverty
or inequality.''.
SEC. 133115. SUBPOENA POWER.
Section 249 of the Trade Act of 1974 (19 U.S.C. 2321) is amended--
(1) in subsection (a), by adding at the end the following:
``The authority under the preceding sentence includes the
authority of States to require, by subpoena, a firm to provide
information on workers employed by, or totally or partially
separated from, the firm that is necessary to make a
determination under this chapter or to provide outreach to
workers, including the names and address of workers.''; and
(2) by adding at the end the following:
``(c) Enforcement of Subpoenas by States.--A State may enforce
compliance with a subpoena issued under subsection (a)--
``(1) as provided for under State law; and
``(2) by petitioning an appropriate United States district
court for an order requiring compliance with the subpoena.''.
PART 2--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS
SEC. 133201. PETITIONS AND DETERMINATIONS.
Section 251 of the Trade Act of 1974 (19 U.S.C. 2341) is amended--
(1) in the second sentence of subsection (a), by striking
``Upon'' and inserting ``Not later than 15 days after'';
(2) by amending subsection (c) to read as follows:
``(c)(1) The Secretary shall certify a firm (including any
agricultural firm or service sector firm) as eligible to apply for
adjustment assistance under this chapter if the Secretary determines--
``(A)(i) that a significant number or proportion of the
workers in such firm have become totally or partially
separated, or are threatened to become totally or partially
separated, or
``(ii) that--
``(I) sales or production, or both, of the firm
have decreased absolutely or failed to increase,
``(II) sales or production, or both, of an article
or service that accounted for not less than 25 percent
of the total sales or production of the firm during the
12-month period preceding the most recent 12-month
period for which data are available have decreased
absolutely or failed to increase,
``(III) sales or production, or both, of the firm
during the most recent 12-month period for which data
are available have decreased or failed to increase
compared to--
``(aa) the average annual sales or
production for the firm during the 24-month
period preceding that 12-month period, or
``(bb) the average annual sales or
production for the firm during the 36-month
period preceding that 12-month period, and
``(IV) sales or production, or both, of an article
or service that accounted for not less than 25 percent
of the total sales or production of the firm during the
most recent 12-month period for which data are
available have decreased or failed to increase compared
to--
``(aa) the average annual sales or
production for the article or service during
the 24-month period preceding that 12-month
period, or
``(bb) the average annual sales or
production for the article or service during
the 36-month period preceding that 12-month
period, and
``(B)(i) increases of imports of articles or services like
or directly competitive with articles which are produced or
services which are supplied by such firm contributed to such
total or partial separation, or threat thereof, or to such
decline or failure to increase in sales or production, or
``(ii) decreases in exports of articles produced or
services supplied by such firm, or imports of articles or
services necessary for the production of articles or services
supplied by such firm, contributed to such total or partial
separation, or threat thereof, or to such decline in sales or
production.
``(2) For purposes of paragraph (1)(B):
``(A) Any firm which engages in exploration or drilling for
oil or natural gas shall be considered to be a firm producing
oil or natural gas.
``(B) Any firm that engages in exploration or drilling for
oil or natural gas, or otherwise produces oil or natural gas,
shall be considered to be producing articles directly
competitive with imports of oil and with imports of natural
gas.''; and
(3) in subsection (d)--
(A) by striking ``this section,'' and inserting
``this section.''; and
(B) by striking ``but in any event'' and all that
follows and inserting the following: ``If the Secretary
does not make a determination with respect to a
petition within 55 days after the date on which an
investigation is initiated under subsection (a) with
respect to the petition, the Secretary shall be deemed
to have certified the firm as eligible to apply for
adjustment assistance under this chapter.''.
SEC. 133202. APPROVAL OF ADJUSTMENT PROPOSALS.
Section 252 of the Trade Act of 1974 (19 U.S.C. 2342) is amended--
(1) in the second sentence of subsection (a), by adding at
the end before the period the following: ``and an assessment of
the potential employment outcomes of such proposal'';
(2) in subsection (b)(1)(B), by striking ``gives adequate
consideration to'' and inserting ``is in'';
(3) by redesignating subsection (c) as subsection (d); and
(4) by inserting after subsection (b) the following:
``(c) Amount of Assistance.--
``(1) In general.--A firm may receive adjustment assistance
under this chapter with respect to the firm's economic
adjustment proposal in an amount not to exceed $300,000,
subject to adjustment under paragraph (2) and the matching
requirement under paragraph (3).
``(2) Adjustment of assistance limitation for inflation.--
``(A) In general.--The Secretary of Commerce shall
adjust the technical assistance limitation under
paragraph (1) on the date that is 30 days after the
date of the enactment of this paragraph, and at the
beginning of each fiscal year thereafter, to reflect
the percentage (if any) of the increase in the average
of the Consumer Price Index for the preceding 12-month
period compared to the Consumer Price Index for fiscal
year 2020.
``(B) Special rules for calculation of
adjustment.--In making an adjustment under subparagraph
(A), the Secretary--
``(i) shall round the amount of any
increase in the Consumer Price Index to the
nearest dollar; and
``(ii) may ignore any such increase of less
than 1 percent.
``(C) Consumer price index defined.--For purposes
of this paragraph, the term `Consumer Price Index'
means the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics of the
Department of Labor.
``(3) Matching requirement.--A firm may receive adjustment
assistance under this chapter only if the firm provides
matching funds in an amount equal to the amount of adjustment
assistance received under paragraph (1).''.
SEC. 133203. TECHNICAL ASSISTANCE.
Section 253(a)(3) of the Trade Act of 1974 (19 U.S.C. 2343(a)(3))
is amended by adding at the end before the period the following: ``,
including assistance to provide skills training programs to employees
of the firm''.
SEC. 133204. DEFINITIONS.
Section 259 of the Trade Act of 1974 (19 U.S.C. 2351) is amended by
adding at the end the following:
``(3) Underserved community.--The term `underserved
community' has the meaning given that term in section 247.''.
SEC. 133205. PLAN FOR SUSTAINED OUTREACH TO POTENTIALLY-ELIGIBLE FIRMS.
(a) In General.--Chapter 3 of title II of the Trade Act of 1974 (19
U.S.C. 2341 et seq.) is amended by adding at the end the following:
``SEC. 263. PLAN FOR SUSTAINED OUTREACH TO POTENTIALLY-ELIGIBLE FIRMS.
``(a) In General.--The Secretary shall develop a plan to provide
sustained outreach to firms that may be eligible for adjustment
assistance under this chapter.
``(b) Matters to Be Included.--The plan required by paragraph (1)
shall include the following:
``(1) Outreach to the United States International Trade
Commission and to such firms in industries with increased
imports identified in the Commission's annual report regarding
the operation of the trade agreements program under section
163(c).
``(2) Outreach to such firms in the service sector.
``(3) Outreach to such firms that are small businesses.
``(4) Outreach to such firms that are minority- or women-
owned firms.
``(5) Outreach to such firms that employ a majority or a
substantial percentage of workers from underserved communities.
``(c) Updates.--The Secretary shall update the plan required under
this section on an annual basis.
``(d) Submission to Congress.--The Secretary shall submit the plan
and each update to the plan required under this section to Congress.''.
(b) Clerical Amendment.--The table of contents for the Trade Act of
1974 is amended by inserting after the item relating to section 262 the
following new item:
``Sec. 263. Plan for sustained outreach to potentially-eligible
firms.''.
PART 3--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES AND COMMUNITY
COLLEGES
SEC. 133301. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES.
(a) In General.--Chapter 4 of title II of the Trade Act of 1974 (19
U.S.C. 2371 et seq.) is amended--
(1) by inserting after the chapter heading the following:
``Subchapter B--Trade Adjustment Assistance for Community Colleges and
Career Training''; and
(2) by redesignating sections 271 and 272 as sections 279
and 279A, respectively; and
(3) by inserting before subchapter B (as designated by
paragraph (1)) the following:
``Subchapter A--Trade Adjustment Assistance for Communities
``SEC. 271. DEFINITIONS.
``In this subchapter:
``(1) Agricultural commodity producer.--The term
`agricultural commodity producer' has the meaning given that
term in section 291.
``(2) Community.--The term `community' means--
``(A) a city or other political subdivision of a
State, including a special purpose unit of a State or
local government engaged in economic or infrastructure
development activities, or a consortium of political
subdivisions;
``(B) an Economic Development District designated
by the Economic Development Administration of the
Department of Commerce; or
``(C) an Indian Tribe.
``(3) Eligible community.--The term `eligible community'
means a community that is impacted by trade under section
273(a)(2) and is determined to be eligible for assistance under
this subchapter.
``(4) Eligible entity.--The term `eligible entity' means--
``(A) an eligible community;
``(B) an institution of higher education or a
consortium of institutions of higher education; or
``(C) a public or private nonprofit organization or
association acting in cooperation with officials of a
political subdivision of a State.
``(4) Secretary.--The term `Secretary' means the Secretary
of Commerce.
``(5) Underserved community.--The term `underserved
community' has the meaning given that term in section 247.
``SEC. 272. ESTABLISHMENT OF TRADE ADJUSTMENT ASSISTANCE FOR
COMMUNITIES PROGRAM.
``The Secretary, acting through the Assistant Secretary for
Economic Development, shall, not later than 180 days after the date of
enactment of this subchapter, establish a program to provide
communities impacted by trade with assistance in accordance with the
requirements of this subchapter.
``SEC. 273. ELIGIBILITY; NOTIFICATION OF ELIGIBILITY.
``(a) Eligibility.--
``(1) In general.--A community shall be eligible for
assistance under this subchapter if the community is a
community impacted by trade under paragraph (2).
``(2) Community impacted by trade.--A community is impacted
by trade if it meets each of the following requirements:
``(A) One or more of the following certifications
are made with respect to the community:
``(i) By the Secretary of Labor, that a
group of workers located in the community is
eligible to apply for assistance under section
223.
``(ii) By the Secretary of Commerce, that a
firm located in the community is eligible to
apply for adjustment assistance under section
251.
``(iii) By the Secretary of Agriculture,
that a group of agricultural commodity
producers located in the community is eligible
to apply for adjustment assistance under
section 293.
``(B) The community--
``(i) applies for assistance not later than
180 days after the date on which the most
recent certification described in subparagraph
(A) is made; or
``(ii) in the case of a community with
respect to which one or more such
certifications were made on or after January 1,
1994, and before the date of the enactment of
this subchapter, applies for assistance not
later than September 30, 2024.
``(C) The community--
``(i) has a per capita income of 80 percent
or less of the national average;
``(ii) has an unemployment rate that is,
for the most recent 24-month period for which
data are available, at least 1 percent greater
than the national average unemployment rate; or
``(iii) is significantly affected by a loss
of, or threat to, the jobs associated with any
certification described in subparagraph (A), or
the community is undergoing transition of its
economic base as a result of changing trade
patterns, as determined by the Secretary.
``(b) Notification of Eligibility.--If one or more certifications
described in subsection (a)(2)(A) are made with respect to a community,
the applicable Secretary with respect to such certification shall
concurrently, notify the Governor of the State in which the community
is located of the ability of the community to apply for assistance
under this section.
``SEC. 274. GRANTS TO ELIGIBLE COMMUNITIES.
``(a) In General.--The Secretary may--
``(1) upon the application of an eligible community, award
a grant under this section to the community to assist in
developing or updating a strategic plan that meets the
requirements of section 275; or
``(2) upon the application of an eligible entity, award an
implementation grant under this section to the entity to assist
in implementing projects included in a strategic plan that
meets the requirements of section 275.
``(b) Special Provisions.--
``(1) Revolving loan fund grants.--
``(A) In general.--The Secretary shall maintain the
proper operation and financial integrity of revolving
loan funds established by eligible entities with
assistance under this section.
``(B) Efficient administration.--The Secretary
may--
``(i) at the request of an eligible entity,
amend and consolidate grant agreements
governing revolving loan funds to provide
flexibility with respect to lending areas and
borrower criteria; and
``(ii) assign or transfer assets of a
revolving loan fund to third party for the
purpose of liquidation, and the third party may
retain assets of the fund to defray costs
related to liquidation.
``(C) Treatment of actions.--An action taken by the
Secretary under this subsection with respect to a
revolving loan fund shall not constitute a new
obligation if all grant funds associated with the
original grant award have been disbursed to the
recipient.
``(2) Use of funds in projects constructed under project
cost.--
``(A) In general.--In the case of a grant for a
construction project under this section, if the
Secretary determines, before closeout of the project,
that the cost of the project, based on the designs and
specifications that were the basis of the grant, has
decreased because of decreases in costs, the Secretary
may approve the use of the excess funds (or a portion
of the excess funds) to improve the project.
``(B) Other uses of excess funds.--Any amount of
excess funds remaining after application of
subparagraph (A) may be used by the Secretary for
providing assistance under this section.
``(c) Coordination.--If an eligible institution (as such term is
defined in section 279) located in an eligible community is seeking a
grant under section 279 at the same time the community is seeking an
implementation grant under subsection (a)--
``(1) the Secretary, upon receipt of such information from
the Secretary of Labor as required under section 279(e), shall
notify the community that the institution is seeking a grant
under section 279; and
``(2) the community shall provide to the Secretary, in
coordination with the institution, a description of how the
community will integrate projects included in the strategic
plan with the specific project for which the institution
submits the grant proposal under section 279.
``(d) Limitation.--The total amount of grants awarded with respect
to an eligible community under this section for fiscal years 2022
through 2026 may not exceed $25,000,000.
``(e) Priority.--The Secretary shall, in awarding grants under this
section, provide higher levels of funding with respect to eligible
communities that have a history of economic distress and long-term
unemployment, as determined by the Secretary.
``(f) Geographic Diversity.--
``(1) In general.--The Secretary shall, in awarding grants
under this section, ensure that grants are awarded with respect
to eligible communities from geographically diverse areas.
``(2) Geographic region requirement.--The Secretary shall,
in meeting the requirement under paragraph (1), award a grant
under this section for each of the fiscal years 2022 through
2026 to at least one eligible community located in each
geographic region for which regional offices of the Economic
Development Administration of the Department of Commerce are
responsible, to the extent that the Secretary receives an
application from at least one eligible community in each such
geographic region.
``SEC. 275. STRATEGIC PLANS.
``(a) In General.--A strategic plan meets the requirements of this
section if--
``(1) the consultation requirements of subsection (b) are
met with respect to the development of the plan;
``(2) the plan meets the requirements of subsection (c);
and
``(3) the plan is approved in accordance with the
requirements of subsection (d).
``(b) Consultation.--
``(1) In general.--To the extent practicable, an eligible
community shall consult with the entities described in
paragraph (2) in developing the strategic plan.
``(2) Entities described.--The entities described in this
paragraph are public and private entities located in or serving
the eligible community, including--
``(A) local, county, or State government agencies;
``(B) firms, including small- and medium-sized
firms;
``(C) local workforce investment boards;
``(D) labor organizations, including State labor
federations and labor-management initiatives,
representing workers in the community;
``(E) educational institutions, local educational
agencies, and other training providers; and
``(F) local civil rights organizations and
community-based organizations, including organizations
representing underserved communities.
``(c) Contents.--The strategic plan may contain, as applicable to
the community, the following:
``(1) A description and analysis of the capacity of the
eligible community to achieve economic adjustment to the impact
of trade.
``(2) An analysis of the economic development challenges
and opportunities facing the community, including the strengths
and weaknesses of the economy of the community.
``(3) An assessment of--
``(A) the commitment of the community to carry out
the strategic plan on a long-term basis;
``(B) the participation and input of members of the
community who are dislocated from employment due to the
impact of trade; and
``(C) the extent to which underserved communities
have been impacted by trade.
``(4) A description of how underserved communities will
benefit from the strategic plan.
``(5) A description of the role of the entities described
in subsection (b)(2) in developing the strategic plan.
``(6) A description of projects under the strategic plan to
facilitate the community's economic adjustment to the impact of
trade, including projects to--
``(A) develop public facilities, public services,
jobs, and businesses (including establishing a
revolving loan fund);
``(B) provide for planning and technical
assistance;
``(C) provide for training;
``(D) provide for the demolition of vacant or
abandoned commercial, industrial, or residential
property;
``(E) redevelop brownfields;
``(F) establish or support land banks;
``(G) support energy conservation; and
``(H) support historic preservation.
``(7) A strategy for continuing the community's economic
adjustment to the impact of trade after the completion of such
projects.
``(8) A description of the educational and training
programs and the potential employment opportunities available
to workers in the community, including for workers under the
age of 25, and the future employment needs of the community.
``(9) An assessment of--
``(A) the cost of implementing the strategic plan;
and
``(B) the timing of funding required by the
community to implement the strategic plan.
``(10) A description of the methods of financing to be used
to implement the strategic plan, including--
``(A) an implementation grant received under
section 274 or under other authorities;
``(B) a loan, including the establishment of a
revolving loan fund; or
``(C) other types of financing.
``(11) An assessment of how the community will address
unemployment among agricultural commodity producers, if
applicable.
``(d) Approval; CEDS Equivalent.--
``(1) Approval.--The Secretary shall approve the strategic
plan developed by an eligible community under this section if
the Secretary determines that the strategic plan meets the
requirements of this section.
``(2) CEDS or equivalent.--The Secretary may deem an
eligible community's Comprehensive Economic Development
Strategy that substantially meets the requirements of this
section to be an approved strategic plan for purposes of this
subchapter.
``(e) Allocation.--Of the funds appropriated to carry out this
chapter for each of the fiscal years 2022 through 2026, the Secretary
may make available not more than $50,000,000 to award grants under
section 274(a)(1).
``SEC. 276. COORDINATION OF FEDERAL RESPONSE AND OTHER ADDITIONAL
TECHNICAL ASSISTANCE.
``(a) In General.--The Secretary shall coordinate the Federal
response with respect to an eligible community that is awarded an
implementation grant under section 274(a)(2) to implement the
community's strategic plan that meets the requirements of section 275
by--
``(1) identifying and consulting, as appropriate, with any
other Federal, State, regional, or local government agency;
``(2) assisting the community to access assistance from
other available Federal sources as necessary to fulfill the
community's strategic plan developed under section 275; and
``(3) ensuring that such assistance is provided in a
targeted, integrated manner.
``(b) Transfer of Funds.--
``(1) Transfer of funds to other federal agencies.--Funds
appropriated to carry out this chapter may be transferred
between Federal agencies, if the funds are used for the
purposes for which the funds are specifically appropriated.
``(2) Transfer of funds from other federal agencies.--
``(A) In general.--Subject to subparagraph (B), for
the purposes of this chapter, the Secretary may accept
transfers of funds from other Federal agencies if the
funds are used for the purposes for which (and in
accordance with the terms under which) the funds are
specifically appropriated.
``(B) Use of funds.--The transferred funds--
``(i) shall remain available until
expended; and
``(ii) may, to the extent necessary to
carry out this chapter, be transferred to and
merged by the Secretary with the appropriations
for salaries and expenses.
``(c) Additional Technical Assistance.--In addition to the
coordination and assistance described in subsection (a), the Secretary
shall provide technical assistance for communities--
``(1) to identify significant impediments to economic
development that result from the impact of trade on the
community, including in the course of developing a strategic
plan under section 275; and
``(2) to access assistance under other available sources,
including State, local, or private sources, to implement
projects that diversify and strengthen the economy in the
community.
``SEC. 277. GENERAL PROVISIONS.
``(a) Regulations.--
``(1) In general.--The Secretary shall, subject to
paragraph (3), promulgate such regulations as may be necessary
to carry out this subchapter, including with respect to--
``(A) administering the awarding of grants under
section 274, including establishing guidelines for the
submission and evaluation of grant applications under
such section; and
``(B) establishing guidelines for the evaluation of
strategic plans developed to meet the requirements of
section 275.
``(2) Consultations.--The Secretary shall consult with the
Committee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate not later than 90 days
prior to promulgating any final rule or regulation under this
subsection.
``(3) Relationship to existing regulations.--The Secretary,
to the maximum extent practicable, shall--
``(A) rely on and apply regulations promulgated to
carry out other economic development programs of the
Department of Commerce in carrying out this subchapter;
and
``(B) provide guidance regarding the manner and
extent to which such other economic development
programs relate to this subchapter.
``(b) Resources.--The Secretary shall allocate such resources as
may be necessary to provide sufficiently individualized assistance to
each eligible community that receives a grant under section 274(a) or
seeks technical assistance under section 276(c) to develop and
implement a strategic plan that meets the requirements of section
275.''.
(b) Clerical Amendment.--The table of contents for the Trade Act of
1974 is amended by striking the items relating to chapter 4 of title II
and inserting the following:
``Chapter 4--Trade Adjustment Assistance for Communities
``subchapter a--trade adjustment assistance for communities
``Sec. 271. Definitions.
``Sec. 272. Establishment of trade adjustment assistance for
communities program.
``Sec. 273. Eligibility; notification of eligibility.
``Sec. 274. Grants to eligible communities.
``Sec. 275. Strategic plans.
``Sec. 276. Coordination of Federal response and other additional
technical assistance.
``Sec. 277. General provisions.
``subchapter b--community college and career training grant program
``Sec. 279. Community College and Career Training Grant Program.
``Sec. 279A. Authorization of appropriations.''.
SEC. 133302. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITY COLLEGES AND
CAREER TRAINING.
Section 279 of the Trade Act of 1974, as redesignated by section
133301(a)(2), is amended as follows:
(1) In subsection (a)--
(A) in paragraph (1), by striking ``eligible
institutions'' and inserting ``eligible entities''; and
(B) in paragraph (2)--
(i) in the matter preceding subparagraph
(A), by striking ``eligible institution'' and
inserting ``eligible entity''; and
(ii) in subparagraph (B)--
(I) by striking ``$1,000,000'' and
inserting ``$2,500,000'';
(II) by striking ``(B)'' and
inserting ``(B)(i) in the case of an
eligible institution,'';
(III) by striking the period at the
end and inserting ``; or''; and
(IV) by adding at the end the
following:
``(ii) in the case of a consortium of eligible
institutions, a grant under this section in excess of
$15,000,000.''.
(2) In subsection (b), by adding at the end the following:
``(3) Eligible entity.--The term `eligible entity' means an
eligible institution or a consortium of eligible institutions.
``(4) Underserved community.--The term `underserved
community' has the meaning given that term in section 247.''.
(3) In subsection (c)--
(A) by striking ``eligible institution'' each place
it appears and inserting ``eligible entity''; and
(B) in paragraph (5)(A)(i)--
(i) in subclause (I), by striking ``and''
at the end; and
(ii) by adding at the end the following:
``(III) any opportunities to
support industry or sector partnerships
to develop or expand quality academic
programs and curricula; and''.
(4) In subsection (d), by striking ``eligible institution''
each place it appears and inserting ``eligible entity''.
(5) By redesignating subsection (e) as subsection (h) and
inserting after subsection (d) the following:
``(e) Use of Funds.--
``(1) In general.--An eligible entity shall use a grant
awarded under this section to establish and scale career
training programs, including career and technical education
programs, and career pathways and supports for students
participating in such programs.
``(2) Student support and emergency services.--Not less
than 15 percent of the amount of a grant awarded to an eligible
entity under this section shall be used to carry out student
support services, which may include the following:
``(A) Supportive services, including childcare,
transportation, mental health services, or substance
use disorder prevention and treatment, assistance in
obtaining health insurance coverage, housing, and other
benefits, as appropriate.
``(B) Connecting students to State or Federal
means-tested benefits programs.
``(C) The provision of direct financial assistance
to help students facing financial hardships that may
impact enrollment in or completion of a program
supported by such funds.
``(D) Navigation, coaching, mentorship, and case
management services, including providing information
and outreach to the population described in
subparagraph (C) to take part in such a program.
``(E) Providing access to necessary supplies,
materials, technological devices, or required
equipment, and other supports necessary to participate
in such a program.
``(f) Plan for Outreach to Underserved Communities.--
``(1) In general.--In awarding grants under this section,
the Secretary shall--
``(A) ensure that eligible institutions effectively
serve individuals from underserved communities; and
``(B) develop a plan to ensure that grants provided
under this subchapter effectively serve individuals
from underserved communities.
``(2) Updates.--The Secretary shall update the plan
required by paragraph (1)(B) on an annual basis.
``(3) Submission to congress.--The Secretary shall submit
the plan required by paragraph (1)(B) and each update to the
plan required by paragraph (2) to Congress.
``(g) Geographic Diversity.--The Secretary shall, in awarding
grants under this section, ensure that grants are awarded with respect
to eligible entities from geographically diverse areas.''.
PART 4--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS
SEC. 133401. DEFINITIONS.
Section 291 of the Trade Act of 1974 (19 U.S.C. 2401) is amended--
(1) by striking paragraph (3);
(2) by redesignating paragraphs (4) through (7) as
paragraphs (3) through (6), respectively; and
(3) by adding at the end the following:
``(7) Underserved community.--The term `underserved
community' has the meaning given that term in section 247.''.
SEC. 133402. GROUP ELIGIBILITY REQUIREMENTS.
Section 292 of the Trade Act of 1974 (19 U.S.C. 2401a) is amended--
(1) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``85 percent of'' each
place it appears; and
(ii) in subparagraph (D), by adding ``and''
at the end;
(B) in paragraph (2), by striking ``(2)'' and
inserting ``(2)(A)(i)'';
(C) by redesignating paragraph (3) as clause (ii)
of paragraph (2)(A) (as designated by subparagraph
(B));
(D) in clause (ii) of paragraph (2)(A) (as
redesignated by subparagraph (C))--
(i) by striking ``importantly''; and
(ii) by striking the period at the end and
inserting ``; or'' ; and
(E) in paragraph (2), by adding at the end the
following:
``(B)(i) the volume of exports of the agricultural
commodity produced by the group in the marketing year with
respect to which the group files the petition decreased
compared to the average volume of such exports during the 3
marketing years preceding such marketing year; and
``(ii) the decrease in such exports contributed to the
decrease in the national average price, quantity of production,
or value of production of, or cash receipts for, the
agricultural commodity, as described in paragraph (1).''; and
(2) in subsection (e)(3), by adding at the end before the
period the following: ``or exports''.
SEC. 133403. BENEFIT INFORMATION TO AGRICULTURAL COMMODITY PRODUCERS.
Section 295(a) of the Trade Act of 1974 (19 U.S.C. 2401d(a)) is
amended by adding at the end the following: ``The Secretary shall
develop a plan to conduct targeted sustained outreach and offer
assistance to agricultural commodity producers from underserved
communities''.
SEC. 133404. QUALIFYING REQUIREMENTS AND BENEFITS FOR AGRICULTURAL
COMMODITY PRODUCERS.
Section 296 of the Trade Act of 1974 (19 U.S.C. 2401e) is amended--
(1) in subsection (a)(1)(A), by striking ``90 days'' and
inserting ``120 days'';
(2) in subsection (b)--
(A) in paragraph (3)(B), by striking ``$4,000'' and
inserting ``$12,000''; and
(B) in paragraph (4)(C), by striking ``$8,000'' and
inserting ``$24,000'';
(3) in subsection (c), by striking ``$12,000'' and
inserting ``$36,000''; and
(4) by adding at the end the following new subsection:
``(e) Adjustments for Inflation.--
``(1) In general.--The Secretary of Agriculture shall
adjust each dollar amount limitation described in this section
on the date that is 30 days after the date of the enactment of
this subsection, and at the beginning of each fiscal year
thereafter, to reflect the percentage (if any) of the increase
in the average of the Consumer Price Index for the preceding
12-month period compared to the Consumer Price Index for fiscal
year 2020.
``(2) Special rules for calculation of adjustment.--In
making an adjustment under paragraph (1), the Secretary--
``(A) shall round the amount of any increase in the
Consumer Price Index to the nearest dollar; and
``(B) may ignore any such increase of less than 1
percent.
``(3) Consumer price index defined.--For purposes of this
subsection, the term `Consumer Price Index' means the Consumer
Price Index for All Urban Consumers published by the Bureau of
Labor Statistics of the Department of Labor.''.
PART 5--APPROPRIATIONS AND OTHER MATTERS
SEC. 133501. EXTENSION OF AND APPROPRIATIONS FOR TRADE ADJUSTMENT
ASSISTANCE PROGRAM.
(a) Extension of Termination Provisions.--Section 285 of the Trade
Act of 1974 (19 U.S.C. 2271 note) is amended by striking ``2021'' each
place it appears and inserting ``2028''.
(b) Training Funds.--Section 236(a)(2)(A) of the Trade Act of 1974
(19 U.S.C. 2296(a)(2)(A)) , as amended by section 133110(c)(2)(B), is
further amended--
(1) by striking ``shall not exceed $450,000,000'' and
inserting the following: ``shall not exceed--
``(i) $450,000,000'';
(2) by striking the period at the end and inserting ``;
and''; and
(3) by adding at the end the following:
``(ii) $1,000,000,000 for each of the fiscal years 2022 through
2028.''.
(c) Reemployment Trade Adjustment Assistance.--Section 246(b)(1) of
the Trade Act of 1974 (19 U.S.C. 2318(b)(1)) is amended by striking
``2021'' and inserting ``2028''.
(d) Authorizations of Appropriations.--
(1) Trade adjustment assistance for workers.--Section 245
of the Trade Act of 1974 (19 U.S.C. 2317) is amended--
(A) in subsection (a), by striking ``2021'' and
inserting ``2028''; and
(B) by adding at the end the following:
``(d) Reservation by the Secretary.--Of the funds appropriated to
carry out this chapter for any fiscal year, the Secretary of Labor may
reserve not more than 0.5 percent for technical assistance, pilots and
demonstrations, and the evaluation of activities carried out under this
chapter.''.
(2) Trade adjustment assistance for firms.--Section 255(a)
of the Trade Act of 1974 (19 U.S.C. 2345(a)) is amended in the
first sentence by adding at the end before the period the
following: ``and $50,000,000 for each of the fiscal years 2022
through 2028''.
(3) Trade adjustment assistance for farmers.--Section 298
of the Trade Act of 1974 (19 U.S.C. 2401g(a)) is amended--
(A) in subsection (a)--
(i) by striking ``$90,000,000'' and
inserting ``$50,000,000''; and
(ii) by striking ``2021'' and inserting
``2028''; and
(B) by adding at the end the following:
``(c) Reservation by the Secretary.--Of the funds appropriated to
carry out this chapter for any fiscal year, the Secretary of
Agriculture may not reserve more than 5 percent for technical
assistance, pilots and demonstrations, and the evaluation of activities
carried out under this chapter.''.
(e) Appropriations.--
(1) Trade adjustment assistance for workers.--In addition
to amounts otherwise available, there is appropriated for each
of fiscal years 2022 through 2028, out of any money in the
Treasury not otherwise appropriated, $1,000,000,000, to remain
available until expended, to carry out the purposes of chapter
2 of title II of the Trade Act of 1974, as authorized by
section 245 of the Trade Act of 1974 (19 U.S.C. 2317) (as
amended by subsection (d)).
(2) Trade adjustment assistance for firms.--In addition to
amounts otherwise available, there is appropriated for each of
fiscal years 2022 through 2028, out of any money in the
Treasury not otherwise appropriated, $50,000,000, to remain
available until expended, to carry out the provisions of
chapter 3 of title II of the Trade Act of 1974, as authorized
by section 255 of the Trade Act of 1974 (19 U.S.C. 2345) (as
amended by subsection (d)).
(3) Trade adjustment assistance for communities.--
(A) In general.--In addition to amounts otherwise
available, there is appropriated for each of fiscal
years 2022 through 2026, out of any money in the
Treasury not otherwise appropriated, $1,000,000,000, to
remain available until expended, to carry out
subchapter A of chapter 4 of title II of the Trade Act
of 1974, as added by section 133301 of this Act, as
added by subsection (d).
(B) Salaries and expenses.--Of the amounts
appropriated pursuant subparagraph (A) for each of
fiscal years 2022 through 2026, not more than
$40,000,000 shall be made available for the salaries
and expenses of personnel administering subchapter A of
chapter 4 of title II of the Trade Act of 1974.
(C) Supplement and not supplant.--Amounts
appropriated pursuant to subparagraph (A) for each of
the fiscal years 2022 through 2026 shall be used to
supplement, and not supplant, other Federal, State,
regional, and local government funds made available to
provide economic development assistance for
communities.
(4) Trade adjustment assistance for community colleges and
career training.--
(A) In general.--In addition to amounts otherwise
available, there is appropriated for each of fiscal
years 2022 through 2028, out of any money in the
Treasury not otherwise appropriated, $1,300,000,000, to
remain available until expended, to carry out
subchapter B of chapter 4 of title II of the Trade Act
of 1974, as designated by section 13301 of this Act, as
authorized by section 279A of such subchapter B (as
redesignated).
(B) Reservation by the secretary.--Of the funds
appropriated to carry out subchapter B of chapter 4 of
title II of the Trade Act of 1974 for each of fiscal
years 2002 through 2028, the Secretary of Labor may
reserve not more than 5 percent for administration of
the program, including providing technical assistance,
sustained outreach to eligible institutions effectively
serving underserved communities, pilots and
demonstrations, and a rigorous third-party evaluation
of the program carried out under such subchapter.
(5) Trade adjustment assistance for farmers.--In addition
to amounts otherwise available, there is appropriated for each
of fiscal years 2022 through 2028, out of any money in the
Treasury not otherwise appropriated, $50,000,000, to remain
available until expended, to carry out the purposes of chapter
6 of title II of the Trade Act of 1974, as authorized by
section 298 of the Trade Act of 1974 (19 U.S.C. 2401) (as
amended by subsection (d)).
SEC. 133502. APPLICABILITY OF TRADE ADJUSTMENT ASSISTANCE PROVISIONS.
(a) Workers Certified Before Date of Enactment.--
(1) In general.--Except as provided in paragraphs (2) and
(3), a worker certified as eligible for adjustment assistance
under section 222 of the Trade Act of 1974 before the date of
the enactment of this Act shall be eligible, on and after such
date of enactment, to receive benefits only under the
provisions of chapter 2 of title II of the Trade Act of 1974,
as in effect on such date of enactment, or as such provisions
may be amended after such date of enactment.
(2) Computation of maximum benefits.--Benefits received by
a worker described in paragraph (1) under chapter 2 of title II
of the Trade Act of 1974 before the date of the enactment of
this Act shall be included in any determination of the maximum
benefits for which the worker is eligible under the provisions
of chapter 2 of title II of the Trade Act of 1974, as in effect
on the date of the enactment of this Act, or as such provisions
may be amended after such date of enactment.
(3) Authority to make adjustments to benefits.--For the 90-
day period beginning on the date of the enactment of this Act,
the Secretary is authorized to make any adjustments to benefits
to workers described in paragraph (1) that the Secretary
determines to be necessary and appropriate in applying and
administering the provisions of chapter 2 of title II of the
Trade Act of 1974, as in effect on the date of the enactment of
this Act, or as such provisions may be amended after such date
of enactment, in a manner that ensures parity of treatment
between the benefits of such workers and the benefits of
workers certified after such date of enactment.
(b) Workers Not Certified Pursuant to Certain Petitions Filed
Before Date of Enactment.--
(1) Certifications of workers not certified before date of
enactment.--
(A) Criteria if a determination has not been
made.--If, as of the date of the enactment of this Act,
the Secretary of Labor has not made a determination
with respect to whether to certify a group of workers
as eligible to apply for adjustment assistance under
section 222 of the Trade Act of 1974 pursuant to a
petition described in subparagraph (C), the Secretary
shall make that determination based on the requirements
of section 222 of the Trade Act of 1974, as in effect
on such date of enactment.
(B) Reconsideration of denials of certifications.--
If, before the date of the enactment of this Act, the
Secretary made a determination not to certify a group
of workers as eligible to apply for adjustment
assistance under section 222 of the Trade Act of 1974
pursuant to a petition described in subparagraph (C),
the Secretary shall--
(i) reconsider that determination; and
(ii) if the group of workers meets the
requirements of section 222 of the Trade Act of
1974, as in effect on such date of enactment,
certify the group of workers as eligible to
apply for adjustment assistance.
(C) Petition described.--A petition described in
this subparagraph is a petition for a certification of
eligibility for a group of workers filed under section
221 of the Trade Act of 1974 on or after January 1,
2021, and before the date of the enactment of this Act.
(2) Eligibility for benefits.--
(A) In general.--Except as provided in subparagraph
(B), a worker certified as eligible to apply for
adjustment assistance under section 222 of the Trade
Act of 1974 pursuant to a petition described in
paragraph (1)(C) shall be eligible, on and after the
date of the enactment of this Act, to receive benefits
only under the provisions of chapter 2 of title II of
the Trade Act of 1974, as in effect on such date of
enactment, or as such provisions may be amended after
such date of enactment.
(B) Computation of maximum benefits.--Benefits
received by a worker described in paragraph (1) under
chapter 2 of title II of the Trade Act of 1974 before
the date of the enactment of this Act shall be included
in any determination of the maximum benefits for which
the worker is eligible under the provisions of chapter
2 of title II of the Trade Act of 1974, as in effect on
the date of the enactment of this Act, or as such
provisions may be amended after such date of enactment.
(c) Conforming Amendments.--
(1) Trade act of 2002.--Section 151 of the Trade Act of
2002 (19 U.S.C. note prec. 2271) is amended by striking
subsections (a), (b), and (c).
(2) Trade and globalization adjustment assistance act of
2009.--Section 1891 of the Trade and Globalization Adjustment
Assistance Act of 2009 (19 U.S.C. 2271 note) is repealed.
(3) Trade adjustment assistance extension act of 2011.--The
Trade Adjustment Assistance Extension Act of 2011 is amended--
(A) in section 201 (19 U.S.C. note prec. 2271), by
striking subsections (b) and (c); and
(B) in section 231(a) (19 U.S.C. 2271 note), by
striking paragraphs (1)(B) and (2).
(4) Trade adjustment assistance reauthorization act of
2015.--The Trade Adjustment Assistance Reauthorization Act of
2015 is amended--
(A) in section 402 (19 U.S.C. note prec. 2271), by
striking subsections (b) and (c); and
(B) in section 405(a)(1) (19 U.S.C. 2319(a)(1)), by
striking subparagraph (B).
(d) Trade Adjustment Assistance for Firms.--
(1) Certification of firms not certified before date of
enactment.--
(A) Criteria if a determination has not been
made.--If, as of the date of the enactment of this Act,
the Secretary of Commerce has not made a determination
with respect to whether to certify a firm as eligible
to apply for adjustment assistance under section 251 of
the Trade Act of 1974 pursuant to a petition described
in subparagraph (C), the Secretary shall make that
determination based on the requirements of section 251
of the Trade Act of 1974, as in effect on such date of
enactment.
(B) Reconsideration of denial of certain
petitions.--If, before the date of the enactment of
this Act, the Secretary made a determination not to
certify a firm as eligible to apply for adjustment
assistance under section 251 of the Trade Act of 1974
pursuant to a petition described in subparagraph (C),
the Secretary shall--
(i) reconsider that determination; and
(ii) if the firm meets the requirements of
section 251 of the Trade Act of 1974, as in
effect on such date of enactment, certify the
firm as eligible to apply for adjustment
assistance.
(C) Petition described.--A petition described in
this subparagraph is a petition for a certification of
eligibility filed by a firm or its representative under
section 251 of the Trade Act of 1974 on or after
January 1, 2021, and before the date of the enactment
of this Act.
(2) Certification of firms that did not submit petitions
between january 1, 2021, and date of enactment.--
(A) In general.--The Secretary of Commerce shall
certify a firm described in subparagraph (B) as
eligible to apply for adjustment assistance under
section 251 of the Trade Act of 1974, as in effect on
the date of the enactment of this Act, if the firm or
its representative files a petition for a certification
of eligibility under section 251 of the Trade Act of
1974 not later than 90 days after such date of
enactment.
(B) Firm described.--A firm described in this
subparagraph is a firm that the Secretary determines
would have been certified as eligible to apply for
adjustment assistance if--
(i) the firm or its representative had
filed a petition for a certification of
eligibility under section 251 of the Trade Act
of 1974 on a date during the period beginning
on January 1, 2021, and ending on the day
before the date of the enactment of this Act;
and
(ii) the provisions of chapter 3 of title
II of the Trade Act of 1974, as in effect on
such date of enactment, had been in effect on
that date during the period described in clause
(i).
Subtitle E
PART 1--PROVISIONS RELATING TO PATHWAYS TO HEALTH CAREERS
SEC. 134101. PATHWAYS TO HEALTH CAREERS ACT.
(a) Transition Funding.--There is appropriated, out of any funds in
the Treasury not otherwise appropriated, $15,000,000 to the Secretary
of Health and Human Services to provide technical assistance and cover
administrative costs associated with implementing section 2071 of the
Social Security Act (as added by subsection (b)).
(b) Career Pathways Through Health Profession Opportunity Grants.--
Effective October 1, 2021, title XX of the Social Security Act (42
U.S.C. 1397-1397n-13) is amended by adding at the end the following:
``Subtitle D--Career Pathways Through Health Profession Opportunity
Grants
``SEC. 2071. CAREER PATHWAYS THROUGH HEALTH PROFESSION OPPORTUNITY
GRANTS.
``(a) Application Requirements.--An eligible entity desiring a
grant under this section for a project shall submit to the Secretary an
application for the grant, that includes the following:
``(1) A description of how the applicant will use a career
pathways approach to train eligible individuals for health
professions that pay well or will put eligible individuals on a
career path to an occupation that pays well, under the project.
``(2) A description of the adult basic education and
literacy activities, work readiness activities, training
activities, and case management and career coaching services
that the applicant will use to assist eligible individuals to
gain work experience, connection to employers, and job
placement, and a description of the plan for recruiting,
hiring, and training staff to provide the case management,
mentoring, and career coaching services, under the project
directly or through local governmental, apprenticeship,
educational, or charitable institutions.
``(3) In the case of an application for a grant under this
section for a demonstration project described in subsection
(c)(2)(B)(i)(I)--
``(A) a demonstration that the State in which the
demonstration project is to be conducted has in effect
policies or laws that permit certain allied health and
behavioral health care credentials to be awarded to
people with certain arrest or conviction records (which
policies or laws shall include appeals processes,
waivers, certificates, and other opportunities to
demonstrate rehabilitation to obtain credentials,
licensure, and approval to work in the proposed health
careers), and a plan described in the application that
will use a career pathway to assist participants with
such a record in acquiring credentials, licensing, and
employment in the specified careers;
``(B) a discussion of how the project or future
strategic hiring decisions will demonstrate the
experience and expertise of the project in working with
job seekers who have arrest or conviction records or
employers with experience working with people with
arrest or conviction records;
``(C) an identification of promising innovations or
best practices that can be used to provide the
training;
``(D) a proof of concept or demonstration that the
applicant has done sufficient research on workforce
shortage or in-demand jobs for which people with
certain types of arrest or conviction records can be
hired;
``(E) a plan for recruiting students who are
eligible individuals into the project; and
``(F) a plan for providing post-employment support
and ongoing training as part of a career pathway under
the project.
``(4) In the case of an application for a grant under this
section for a demonstration project described in subsection
(c)(2)(B)(i)(II)--
``(A) a description of the partnerships, strategic
staff hiring decisions, tailored program activities, or
other programmatic elements of the project, such as
training plans for doulas and other community health
workers and training plans for midwives and other
allied health professions, that are designed to support
a career pathway in pregnancy, birth, or post-partum
services; and
``(B) a demonstration that the State in which the
demonstration project is to be conducted recognizes
doulas or midwives, as the case may be.
``(5) A demonstration that the applicant has experience
working with low-income populations, or a description of the
plan of the applicant to work with a partner organization that
has the experience.
``(6) A plan for providing post-employment support and
ongoing training as part of a career pathway under the project.
``(7) A description of the support services that the
applicant will provide under the project, including a plan for
how child care and transportation support services will be
guaranteed and, if the applicant will provide a cash stipend or
wage supplement, how the stipend or supplement would be
calculated and distributed.
``(8) A certification by the applicant that the project
development included--
``(A) consultation with a local workforce
development board established under section 107 of the
Workforce Innovation and Opportunity Act;
``(B) consideration of apprenticeship and pre-
apprenticeship models registered under the Act of
August 16, 1937 (also known as the `National
Apprenticeship Act');
``(C) consideration of career pathway programs in
the State in which the project is to be conducted; and
``(D) a review of the State plan under section 102
or 103 of the Workforce Innovation and Opportunity Act.
``(9) A description of the availability and relevance of
recent labor market information and other pertinent evidence of
in-demand jobs or worker shortages.
``(10) A certification that the applicant will directly
provide or contract for the training services described in the
application.
``(11) A commitment by the applicant that, if the grant is
made to the applicant, the applicant will--
``(A) during the planning period for the project,
provide the Secretary with any information needed by
the Secretary to establish adequate data reporting and
administrative structure for the project;
``(B) hire a person to direct the project not later
than the end of the planning period applicable to the
project;
``(C) accept all technical assistance offered by
the Secretary with respect to the grant;
``(D) participate in peer technical assistance
conferences as are regularly scheduled by the
Secretary; and
``(E) provide all data required by the Secretary
under subsection (g).
``(b) Preferences in Considering Applications.--In considering
applications for a grant under this section, the Secretary shall give
preference to--
``(1) applications submitted by applicants to whom a grant
was made under this section or any predecessor to this section;
``(2) applications submitted by applicants who have
business and community partners in each of the following
categories:
``(A) State and local government agencies and
social service providers, including a State or local
entity that administers a State program funded under
part A of this title;
``(B) institutions of higher education,
apprenticeship programs, and local workforce
development boards established under section 107 of the
Workforce Innovation and Opportunity Act; and
``(C) health care employers, health care industry
or sector partnerships, labor unions, and labor-
management partnerships;
``(3) applications that include opportunities for mentoring
or peer support, and make career coaching available, as part of
the case management plan;
``(4) applications which describe a project that will serve
a rural area in which--
``(A) the community in which the individuals to be
enrolled in the project reside is located;
``(B) the project will be conducted; or
``(C) an employer partnership that has committed to
hiring individuals who successfully complete all
activities under the project is located;
``(5) applications that include a commitment to providing
project participants with a cash stipend or wage supplement;
and
``(6) applications which have an emergency cash fund to
assist project participants financially in emergency
situations.
``(c) Grants.--
``(1) Competitive grants.--
``(A) Grant authority.--
``(i) In general.--The Secretary may make a
grant in accordance with this paragraph to an
eligible entity whose application for the grant
is approved by the Secretary, to conduct a
project designed to train low-income
individuals for allied health professions,
health information technology, physicians
assistants, nursing assistants, registered
nurse, advanced practice nurse, and other
professions considered part of a health care
career pathway model.
``(ii) Guarantee of grantees in each state
and the district of columbia.--For each grant
cycle, the Secretary shall award a grant under
this paragraph to at least 2 eligible entities
in each State that is not a territory, to the
extent there are a sufficient number of
applications submitted by the entities that
meet the requirements applicable with respect
to such a grant. If, for a grant cycle, there
are fewer than 2 such eligible entities in a
State, the Secretary shall include that
information in the report required by
subsection (g)(2) that covers the fiscal year.
``(B) Guarantee of grants for indian populations.--
From the amount reserved under subsection (i)(2)(B) for
each fiscal year, the Secretary shall award a grant
under this paragraph to at least 10 eligible entities
that are an Indian tribe, a tribal organization, or a
tribal college or university, to the extent there are a
sufficient number of applications submitted by the
entities that meet the requirements applicable with
respect to such a grant.
``(C) Guarantee of grantees in the territories.--
From the amount reserved under subsection (i)(2)(C) for
each fiscal year, the Secretary shall award a grant
under this paragraph to at least 2 eligible entities
that are located in a territory, to the extent there
are a sufficient number of applications submitted by
the entities that meet the requirements applicable with
respect to such a grant.
``(2) Grants for demonstration projects.--
``(A) Grant authority.--The Secretary shall make a
grant in accordance with this subsection to an eligible
entity whose application for the grant is approved by
the Secretary, to conduct a demonstration project that
meets the requirements of subparagraph (B).
``(B) Requirements.--The requirements of this
subparagraph are the following:
``(i) Type of project.--The demonstration
project shall be of 1 of the following types:
``(I) Individuals with arrest or
conviction records demonstration.--The
demonstration project shall be of a
type designed to provide education and
training for eligible individuals with
arrest or conviction records to enter
and follow a career pathway in the
health professions through occupations
that pay well and are expected to
experience a labor shortage or be in
high demand.
``(II) Pregnancy and childbirth
career pathway demonstration.--The
demonstration project shall be of a
type designed to provide education and
training for eligible individuals to
enter and follow a career pathway in
the field of pregnancy, childbirth,
post-partum, or childbirth and post-
partum, in a State that recognizes
doulas or midwives and that provides
payment for services provided by doulas
or midwives, as the case may be, under
private or public health insurance
plans.
``(ii) Duration.--The demonstration project
shall be conducted for not less than 5 years.
``(C) Minimum allocation of funds for each type of
demonstration project.--
``(i) Individuals with arrest or conviction
records demonstrations.--Not less than
$6,375,000 of the amounts made available for
grants under this paragraph shall be used to
make grants for demonstration projects of the
type described in subparagraph (B)(i)(I).
``(ii) Pregnancy and childbirth career
pathway demonstrations.--Not less than
$6,375,000 of the amounts made available for
grants under this paragraph shall be used to
make grants for demonstration projects of the
type described in subparagraph (B)(i)(II).
``(3) Grant cycle.--The grant cycle under this section
shall be not less than 5 years, with a planning period of not
more than the first 12 months of the grant cycle. During the
planning period, the amount of the grant shall be in such
lesser amount as the Secretary determines appropriate.
``(d) Use of Grant.--
``(1) In general.--An entity to which a grant is made under
this section shall use the grant in accordance with the
approved application for the grant.
``(2) Support to be provided.--
``(A) Required support.--A project for which a
grant is made under this section shall include the
following:
``(i) An assessment for adult basic skill
competency, and provision of adult basic skills
education if necessary for lower-skilled
eligible individuals to enroll in the project
and go on to enter and complete post-secondary
training, through means including the
following:
``(I) Establishing a network of
partners that offer pre-training
activities for project participants who
need to improve basic academic skills
or English language proficiency before
entering a health occupational training
career pathway program.
``(II) Offering resources to enable
project participants to continue
advancing adult basic skill proficiency
while enrolled in a career pathway
program.
``(III) Embedding adult basic skill
maintenance as part of ongoing post-
graduation career coaching and
mentoring.
``(ii) A guarantee that child care is an
available and affordable support service for
project participants through means such as the
following:
``(I) Referral to, and assistance
with, enrollment in a subsidized child
care program.
``(II) Direct payment to a child
care provider if a slot in a subsidized
child care program is not available or
reasonably accessible.
``(III) Payment of co-payments or
associated fees for child care.
``(iii) Case management plans that include
career coaching (with the option to offer
appropriate peer support and mentoring
opportunities to help develop soft skills and
social capital), which may be offered on an
ongoing basis before, during, and after initial
training as part of a career pathway model.
``(iv) A plan to provide project
participants with transportation through means
such as the following:
``(I) Referral to, and assistance
with enrollment in, a subsidized
transportation program.
``(II) If a subsidized
transportation program is not
reasonably available, direct payments
to subsidize transportation costs.
For purposes of this clause, the term
`transportation' includes public transit, or
gasoline for a personal vehicle if public
transit is not reasonably accessible or
available.
``(v) In the case of a demonstration
project of the type described in subsection
(c)(2)(B)(i)(I), access to legal assistance for
project participants for the purpose of
addressing arrest or conviction records and
associated workforce barriers.
``(B) Allowed support.--The goods and services
provided under a project for which a grant is made
under this section may include the following:
``(i) A cash stipend.
``(ii) A reserve fund for financial
assistance to project participants in emergency
situations.
``(iii) Tuition, and training materials
such as books, software, uniforms, shoes, and
hair nets, and personal protective equipment.
``(iv) In-kind resource donations such as
interview clothing and conference attendance
fees.
``(v) Assistance with accessing and
completing high school equivalency or adult
basic education courses as necessary to achieve
success in the project and make progress toward
career goals.
``(vi) Assistance with programs and
activities, including legal assistance, deemed
necessary to address arrest or conviction
records as an employment barrier.
``(vii) Other support services as deemed
necessary for family well-being, success in the
project, and progress toward career goals.
``(3) Training.--The number of hours of training provided
to an eligible individual under a project for which a grant is
made under this section, for a recognized postsecondary
credential (including an industry-recognized credential, and a
certificate awarded by a local workforce development board
established under section 107 of the Workforce Innovation and
Opportunity Act), which is awarded in recognition of attainment
of measurable technical or occupational skills necessary to
gain employment or advance within an occupation, shall be--
``(A) not less than the number of hours of training
required for certification in that level of skill by
the State in which the project is conducted; or
``(B) if there is no such requirement, such number
of hours of training as the Secretary finds is
necessary to achieve that skill level.
``(4) Inclusion of tanf recipients.--In the case of a
project for which a grant is made under this section that is
conducted in a State that has a program funded under part A of
title IV, at least 10 percent of the eligible individuals to
whom support is provided under the project shall meet the
income eligibility requirements under that State program,
without regard to whether the individuals receive benefits or
services directly under that State program.
``(5) Income limitation.--An entity to which a grant is
made under this section shall not use the grant to provide
support to a person who is not an eligible individual.
``(6) Prohibition.--An entity to which a grant is made
under this section shall not use the grant for purposes of
entertainment, except that case management and career coaching
services may include celebrations of specific career-based
milestones such as completing a semester, graduation, or job
placement.
``(e) Technical Assistance.--
``(1) In general.--The Secretary shall provide technical
assistance--
``(A) to assist eligible entities in applying for
grants under this section;
``(B) that is tailored to meet the needs of
grantees at each stage of the administration of
projects for which grants are made under this section;
``(C) that is tailored to meet the specific needs
of Indian tribes, tribal organizations, and tribal
colleges and universities;
``(D) that is tailored to meet the specific needs
of the territories;
``(E) that is tailored to meet the specific needs
of eligible entities in carrying out demonstration
projects for which a grant is made under this section;
and
``(F) to facilitate the exchange of information
among eligible entities regarding best practices and
promising practices used in the projects.
``(2) Continuation of peer technical assistance
conferences.--The Secretary shall continue to hold peer
technical assistance conferences for entities to which a grant
is made under this section or was made under the immediate
predecessor of this section. The preceding sentence shall not
be interpreted to require any such conference to be held in
person.
``(f) Evaluation of Demonstration Projects.--
``(1) In general.--The Secretary shall, by grant, contract,
or interagency agreement, conduct rigorous and well-designed
evaluations of the demonstration projects for which a grant is
made under this section.
``(2) Requirement applicable to individuals with arrest or
conviction records demonstration.--In the case of a project of
the type described in subsection (c)(2)(B)(i)(I), the
evaluation shall include identification of successful
activities for creating opportunities for developing and
sustaining, particularly with respect to low-income individuals
with arrest or conviction records, a health professions
workforce that has accessible entry points, that meets high
standards for education, training, certification, and
professional development, and that provides increased wages and
affordable benefits, including health care coverage, that are
responsive to the needs of the workforce.
``(3) Requirement applicable to pregnancy and childbirth
career pathway demonstration.--In the case of a project of the
type described in subsection (c)(2)(B)(i)(II), the evaluation
shall include identification of successful activities for
creating opportunities for developing and sustaining,
particularly with respect to low-income individuals and other
entry-level workers, a career pathway that has accessible entry
points, that meets high standards for education, training,
certification, and professional development, and that provides
increased wages and affordable benefits, including health care
coverage, that are responsive to the needs of the birth,
pregnancy, and post-partum workforce.
``(4) Rule of interpretation.--Evaluations conducted
pursuant to this subsection may include a randomized controlled
trial, but this subsection shall not be interpreted to require
an evaluation to include such a trial.
``(g) Reports.--
``(1) To the secretary.--An eligible entity awarded a grant
to conduct a project under this section shall submit interim
reports to the Secretary on the activities carried out under
the project, and, on the conclusion of the project, a final
report on the activities. Each such report shall include data
on participant outcomes related to earnings, employment in
health professions, graduation rate, graduation timeliness,
credential attainment, participant demographics, and other data
specified by the Secretary.
``(2) To the congress.--During each Congress, the Secretary
shall submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
report--
``(A) on the demographics of the participants in
the projects for which a grant is made under this
section;
``(B) on the rate of which project participants
completed all activities under the projects;
``(C) on the employment credentials acquired by
project participants;
``(D) on the employment of project participants on
completion of activities under the projects, and the
earnings of project participants at entry into
employment;
``(E) on best practices and promising practices
used in the projects;
``(F) on the nature of any technical assistance
provided to grantees under this section;
``(G) on, with respect to the period since the
period covered in the most recent prior report
submitted under this paragraph--
``(i) the number of applications submitted
under this section, with a separate statement
of the number of applications referred to in
subsection (b)(5);
``(ii) the number of applications that were
approved, with a separate statement of the
number of such applications referred to in
subsection (b)(5); and
``(iii) a description of how grants were
made in any case described in the last sentence
of subsection (c)(1)(A)(ii); and
``(H) that includes an assessment of the
effectiveness of the projects with respect to
addressing health professions workforce shortages or
in-demand jobs.
``(h) Definitions.--In this section:
``(1) Allied health profession.--The term `allied health
profession' has the meaning given in section 799B(5) of the
Public Health Service Act.
``(2) Career pathway.--The term `career pathway' has the
meaning given that term in section 3(7) of the Workforce
Innovation and Opportunity Act.
``(3) Doula.--The term `doula' means an individual who--
``(A) is certified by an organization that has been
established for not less than 5 years and that requires
the completion of continuing education to maintain the
certification, to provide non-medical advice,
information, emotional support, and physical comfort to
an individual during the individual's pregnancy,
childbirth, and post-partum period; and
``(B) maintains the certification by completing the
required continuing education.
``(4) Eligible entity.--The term `eligible entity' means
any of the following entities that demonstrates in an
application submitted under this section that the entity has
the capacity to fully develop and administer the project
described in the application:
``(A) A local workforce development board
established under section 107 of the Workforce
Innovation and Opportunity Act.
``(B) A State or territory, a political subdivision
of a State or territory, or an agency of a State,
territory, or such a political subdivision, including a
State or local entity that administers a State program
funded under part A of this title.
``(C) An Indian tribe, a tribal organization, or a
tribal college or university.
``(D) An institution of higher education (as
defined in the Higher Education Act of 1965).
``(E) A hospital (as defined in section 1861(e)).
``(F) A high-quality skilled nursing facility.
``(G) A Federally qualified health center (as
defined in section 1861(aa)(4)).
``(H) A nonprofit organization described in section
501(c)(3) of the Internal Revenue Code of 1986, a labor
organization, or an entity with shared labor-management
oversight, that has a demonstrated history of providing
health profession training to eligible individuals.
``(I) In the case of a demonstration project of the
type provided for in subsection (c)(2)(B)(i)(II) of
this section, an entity recognized by a State, Indian
tribe, or tribal organization as qualified to train
doulas or midwives, if midwives or doulas, as the case
may be, are permitted to practice in the State
involved.
``(J) An opioid treatment program (as defined in
section 1861(jjj)(2)), and other high quality
comprehensive addiction care providers.
``(5) Eligible individual.--The term `eligible individual'
means an individual whose family income does not exceed 200
percent of the Federal poverty level.
``(6) Federal poverty level.--The term `Federal poverty
level' means the poverty line (as defined in section 673(2) of
the Omnibus Budget Reconciliation Act of 1981, including any
revision required by such section applicable to a family of the
size involved).
``(7) Indian tribe; tribal organization.--The terms `Indian
tribe' and `tribal organization' have the meaning given the
terms in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b).
``(8) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 101 or 102(a)(1)(B) of the Higher Education Act
of 1965.
``(9) Territory.--The term `territory' means the
Commonwealth of Puerto Rico, the United States Virgin Islands,
Guam, the Northern Mariana Islands, and American Samoa.
``(10) Tribal college or university.--The term `tribal
college or university' has the meaning given the term in
section 316(b) of the Higher Education Act of 1965.
``(i) Funding.--
``(1) In general.--Out of any funds in the Treasury of the
United States not otherwise appropriated, there are
appropriated to the Secretary to carry out this section
$425,000,000 for each of fiscal years 2022 through 2026.
``(2) Allocation of funds.--Of the amount appropriated for
a fiscal year under paragraph (1) of this subsection--
``(A) $318,750,000 shall be available for grants
under subsection (c)(1)(A);
``(B) $17,000,000 shall be reserved for grants
under subsection (c)(1)(B);
``(C) $21,250,000 shall be reserved for grants
under subsection (c)(1)(C);
``(D) $25,5000,000 shall be available for
demonstration project grants under subsection (c)(2);
``(E) $25,500,000, plus all amounts referred to in
subparagraphs (A) through (D) of this paragraph that
remain unused after all grant awards are made for the
fiscal year, shall be available for the provision of
technical assistance and associated staffing; and
``(F) $17,000,000 shall be available for studying
the effects of the demonstration and non-demonstration
projects for which a grant is made under this section,
and for associated staffing, for the purpose of
supporting the rigorous evaluation of the demonstration
projects, and supporting the continued study of the
short-, medium-, and long-term effects of all such
projects, including the effectiveness of new or added
elements of the non-demonstration projects.''.
PART 2--PROVISIONS RELATING TO ELDER JUSTICE
SEC. 134201. REAUTHORIZATION OF FUNDING FOR PROGRAMS TO PREVENT AND
INVESTIGATE ELDER ABUSE, NEGLECT, AND EXPLOITATION.
(a) Long-term Care Staff Training Grants.--Section 2041 of the
Social Security Act (42 U.S.C. 1397m) is amended to read as follows:
``SEC. 2041. NURSING HOME WORKER TRAINING GRANTS.
``(a) Appropriation.--Out of any funds in the Treasury not
otherwise appropriated, there is appropriated to the Secretary for each
of fiscal years 2022 through 2025--
``(1) $392,000,000for grants under subsection (b)(1); and
``(2) $8,000,000 for grants under subsection (b)(2).
``(b) Grants.--
``(1) State entitlement.--
``(A) In general.--Each State shall be entitled to
receive from the Secretary for each fiscal year
specified in subsection (a) a grant in an amount equal
to the amount allotted to the State under subparagraph
(B) of this paragraph.
``(B) State allotments.--The amount allotted to a
State under this subparagraph for a fiscal year shall
be--
``(i) the amount made available by
subsection (a) for the fiscal year that is not
required to be reserved by subsection (a);
multiplied by
``(ii)(I) the number of State residents who
have attained 65 years of age or are
individuals with a disability, as determined by
the Secretary using the most recent version of
the American Community Survey published by the
Bureau of the Census or a successor data set;
divided by
``(II) the total number of such residents
of all States.
``(2) Grants to indian tribes and tribal organizations.--
``(A) In general.--The Secretary, in consultation
with the Indian tribes and tribal organizations, shall
make grants in accordance with this section to Indian
tribes and tribal organizations who operate at least 1
eligible setting.
``(B) Grant formula.--The Secretary, in
consultation with the Indian tribes and tribal
organizations, shall devise a formula for distributing
among Indian tribes and tribal organizations the amount
required to be reserved by subsection (a) for each
fiscal year.
``(3) Sub-grants.--A State, Indian tribe, or tribal
organization to which an amount is paid under this paragraph
may use the amount to make sub-grants to local organizations,
including community organizations, local non-profits, elder
rights and justice groups, and workforce development boards for
any purpose described in paragraph (1) or (2) of subsection
(c).
``(c) Use of Funds.--
``(1) Required uses.--A State to which an amount is paid
under subsection (b) shall use the amount to--
``(A) provide wage subsidies to eligible
individuals;
``(B) provide student loan repayment or tuition
assistance to eligible individuals for a degree or
certification in a field relevant to their position
referred to in subsection (f)(1)(A);
``(C) guarantee affordable and accessible child
care for eligible individuals, including help with
referrals, co-pays, or other direct assistance; and
``(D) provide assistance where necessary with
obtaining appropriate transportation, including public
transportation if available, or gas money or transit
vouchers for ride share, taxis, and similar types of
transportation if public transportation is unavailable
or impractical based on work hours or location.
``(2) Authorized uses.--A State to which an amount is paid
under subsection (b) may use the amount to--
``(A) establish a reserve fund for financial
assistance to eligible individuals in emergency
situations;
``(B) provide in-kind resource donations, such as
interview clothing and conference attendance fees;
``(C) provide assistance with programs and
activities, including legal assistance, deemed
necessary to address arrest or conviction records that
are an employment barrier;
``(D) support employers operating an eligible
setting in the State in providing employees with not
less than 2 weeks of paid leave per year; or
``(E) provide other support services the Secretary
deems necessary to allow for successful recruitment and
retention of workers.
``(3) Provision of funds only for the benefit of eligible
individuals in eligible settings.--A State to which an amount
is paid under subsection (b) may provide the amount to only an
eligible individual or a partner organization serving an
eligible individual.
``(4) Nonsupplantation.--A State to which an amount is paid
under subsection (b) shall not use the amount to supplant the
expenditure of any State funds for recruiting or retaining
employees in an eligible setting.
``(d) Administration.--A State to which a grant is made under
subsection (b) shall reserve not more than 10 percent of the grant to--
``(1) administer subgrants in accordance with this section;
``(2) provide technical assistance and support for applying
for and accessing such a subgrant opportunity;
``(3) publicize the availability of the subgrants;
``(4) carry out activities to increase the supply of
eligible individuals; and
``(5) provide technical assistance to help subgrantees find
and train individuals to provide the services for which they
are contracted.
``(e) Definitions.--In this section:
``(1) Eligible individual.--The term `eligible individual'
means an individual who--
``(A)(i) is a qualified home health aide, as
defined in section 484.80(a) of title 42, Code of
Federal Regulations;
``(ii) is a nurse aide approved by the State as
meeting the requirements of sections 483.150 through
483.154 of such title, and is listed in good standing
on the State nurse aide registry;
``(iii) is a personal care aide approved by the
State, and furnishes personal care services, as defined
in section 440.167 of such title;
``(iv) is a qualified hospice aide, as defined in
section 418.76 of such title; or
``(v) is a licensed practical nurse or a licensed
or certified social worker; or
``(vi) is receiving training to be certified or
licensed as such an aide, nurse, or social worker; and
``(B) provides (or, in the case of a trainee,
intends to provide) services as such an aide, nurse, or
social worker in an eligible setting.
``(2) Eligible setting.--The term `eligible setting'
means--
``(A) a skilled nursing facility, as defined in
section 1819;
``(B) a nursing facility, as defined in section
1919;
``(C) a home health agency, as defined in section
1891;
``(D) a facility provider approved to deliver home
or community-based services authorized under State
options described in subsection (c) or (i) of section
1915 or, as relevant, demonstration projects authorized
under section 1115;
``(E) a hospice, as defined in section 1814; or
``(F) a tribal assisted living facility.
``(3) Tribal organization.--The term `tribal organization'
has the meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act.''.
(b) Adult Protective Services Functions and Grant Programs.--
(1) Direct funding; state entitlement.--Section 2042 of the
Social Security Act (42 U.S.C. 1397m-1) is amended--
(A) in subsection (a)--
(i) in paragraph (1)(A)--
(I) by striking ``offices'' and
inserting ``programs''; and
(II) by inserting ``and adults who
are under a disability (as defined in
section 216(i)(1))'' before the
semicolon; and
(ii) by striking paragraph (2) and
inserting the following:
``(2) Appropriation.--Out of any money in the Treasury not
otherwise appropriated, there are appropriated to the Secretary
$8,000,000 for each of fiscal years 2023 through 2025 to carry
out this subsection.'';
(B) in subsection (b)--
(i) in paragraph (2)--
(I) in subparagraph (A), by
striking ``the availability of
appropriations and''; and
(II) in subparagraph (B)--
(aa) in the heading for
clause (i), by inserting ``and
the district of columbia''
after ``States''; and
(bb) in clause (ii), by
inserting ``or the District of
Columbia'' after ``States'';
and
(ii) by striking paragraph (5) and
inserting the following:
``(5) Appropriation.--Out of any money in the Treasury not
otherwise appropriated, there are appropriated to the Secretary
for each of fiscal years 2023 through 2025--
``(A) $392,000,000 for grants to States under this
subsection; and
``(B) $8,000,000 for grants to Indian tribes and
tribal organizations under this subsection.''; and
(C) in subsection (c), by striking paragraph (6)
and inserting the following:
``(6) Appropriation.--Out of any money in the Treasury not
otherwise appropriated, there are appropriated to the Secretary
$75,000,000 for each of fiscal years 2023 through 2025 to carry
out this subsection.''.
(2) State entitlement; grants to indian tribes and tribal
organizations.--Section 2042 of such Act (42 U.S.C. 1397m-1) is
amended--
(A) in subsection (a)(1)(A), by striking ``State
and local'' and inserting ``State, local, and tribal'';
(B) in subsection (b)(1), by striking ``the
Secretary shall annually award grants to States in the
amounts calculated under paragraph (2)'' and inserting
``each State shall be entitled to annually receive from
the Secretary in the amounts calculated under paragraph
(2), and the Secretary may annually award to each
Indian tribe and tribal organization in accordance with
paragraph (3), grants'';
(C) in subsection (b)(2)--
(i) in the paragraph heading, by inserting
``for a state'' after ``payment'';
(ii) in subparagraph (A), by striking ``to
carry out'' and inserting ``for grants to
States under''; and
(iii) in subparagraph (B)(i), by striking
``such year'' and inserting ``for grants to
States under this subsection for the fiscal
year''; and
(D) in subsection (b), by redesignating paragraphs
(3) through (5) as paragraphs (4) through (6),
respectively, and inserting after paragraph (2) the
following:
``(3) Amount of payment to indian tribe or tribal
organization.--The Secretary, in consultation with Indian
tribes and tribal organizations, shall determine the amount of
any grant to be made to each Indian tribe and tribal
organization under this subsection. Paragraphs (4) and (5)
shall apply to grantees under this paragraph in the same manner
in which the paragraphs apply to States.'';
(E) in subsection (c)--
(i) in paragraph (1), by striking ``to
States'' and inserting ``to States, Indian
tribes, and tribal organizations'';
(ii) in paragraph (2)--
(I) in the matter preceding
subparagraph (A), by inserting ``and
Indian tribes and tribal
organizations'' after ``government'';
and
(II) in subparagraph (D), by
inserting ``or Indian tribe or tribal
organization, as the case may be''
after ``government'';
(iii) in paragraph (4), by inserting ``or
Indian tribe or tribal organization'' after ``a
State'' the 1st place it appears; and
(iv) in paragraph (5)--
(I) by inserting ``or Indian tribe
or tribal organization'' after ``Each
State''; and
(II) by inserting ``or Indian tribe
or tribal organization, as the case may
be'' after ``the State''; and
(F) by adding at the end the following:
``(d) Definitions of Indian Tribe and Tribal Organization.--In this
section, the terms `Indian tribe' and `tribal organization' have the
meanings given the terms in section 419.''.
(3) Conforming amendment.--Section 2011(2) of such Act (42
U.S.C. 1397j(2)) is amended by striking ``such services
provided to adults as the Secretary may specify'' and inserting
``services provided by an entity authorized by or under State
law address neglect, abuse, and exploitation of older adults
and people with disabilities''.
(c) Long-term Care Ombudsman Program Grants and Training.--Section
2043 of the Social Security Act (42 U.S.C. 1397m-2) is amended--
(1) in subsection (a), by striking paragraph (2) and
inserting the following:
``(2) Appropriation.--Out of any money in the Treasury not
otherwise appropriated, there are appropriated to the Secretary
to carry out this subsection--
``(A) $22,500,000 for fiscal year 2023; and
``(B) $30,000,000 for each of fiscal years 2024 and
2025.''; and
(2) in subsection (b), by striking paragraph (2) and
inserting the following:
``(2) Appropriation.--Out of any money in the Treasury not
otherwise appropriated, there are appropriated to the Secretary
$30,000,000 for each of fiscal years 2023 through 2025 to carry
out this subsection.''.
(d) Incentives for Developing and Sustaining Structural Competency
in Providing Health and Human Services.--Part II of subtitle B of title
XX of the Social Security Act (42 U.S.C. 1397m-1397m-5) is amended by
adding at the end the following:
``SEC. 2047. INCENTIVES FOR DEVELOPING AND SUSTAINING STRUCTURAL
COMPETENCY IN PROVIDING HEALTH AND HUMAN SERVICES.
``(a) Grants to States to Support Linkages to Legal Services and
Medical Legal Partnerships.--
``(1) Appropriation.--Out of any money in the Treasury not
otherwise appropriated, there are appropriated to the Secretary
$500,000,000 for fiscal year 2022, to remain available for the
purposes of this subsection through fiscal year 2028.
``(2) Grants.--Within 2 years after the date of the
enactment of this section, the Secretary shall establish and
administer a program of grants to States to support the
adoption of evidence-based approaches to establishing or
improving and maintaining real-time linkages between health and
social services and supports for vulnerable elders or in
conjunction with authorized representatives of vulnerable
elders, including through the following:
``(A) Medical-legal partnerships.--The
establishment and support of medical-legal
partnerships, the incorporation of the partnerships in
the elder justice framework and health and human
services safety net, and the implementation and
operation of such a partnership by an eligible
grantee--
``(i) at the option of a State, in
conjunction with an area agency on aging;
``(ii) in a solo provider practice in a
health professional shortage area (as defined
in section 332(a) of the Public Health Service
Act), a medically underserved community (as
defined in section 399V of such Act), or a
rural area (as defined in section 330J of such
Act);
``(iii) in a minority-serving institution
of higher learning with health, law, and social
services professional programs;
``(iv) in a federally qualified health
center, as described in section 330 of the
Public Health Service Act, or look-alike, as
described in section 1905(l)(2)(B) of this Act;
or
``(v) in certain hospitals that are
critical access hospitals, Medicare-dependent
hospitals, sole community hospitals, rural
emergency hospitals, or that serve a high
proportion of Medicare or Medicaid patients.
``(B) Legal hotlines development or expansion.--The
provision of incentives to develop, enhance, and
integrate platforms, such as legal assistance hotlines,
that help to facilitate the identification of older
adults who could benefit from linkages to available
legal services such as those described in subparagraph
(A).
``(3) State reports.--Each State to which a grant is made
under this subsection shall submit to the Secretary biannual
reports on the activities carried out by the State pursuant to
this subsection, which shall include assessments of the
effectiveness of the activities with respect to--
``(A) the number of unique individuals identified
through the mechanism outlined in paragraph (2)(B) who
are referred to services described in paragraph (2)(A),
and the average time period associated with resolving
issues;
``(B) the success rate for referrals to community-
based resources; and
``(C) other factors determined relevant by the
Secretary.
``(4) Evaluation.--The Secretary shall, by grant, contract,
or interagency agreement, evaluate the activities conducted
pursuant to this subsection, which shall include a comparison
among the States.
``(5) Supplement not supplant.--Support provided to area
agencies on aging, State units on aging, eligible entities, or
other community-based organizations pursuant to this subsection
shall be used to supplement and not supplant any other Federal,
State, or local funds expended to provide the same or
comparable services described in this subsection.
``(b) Grants and Training to Support Area Agencies on Aging or
Other Community-based Organizations to Address Social Isolation Among
Vulnerable Older Adults and People With Disabilities.--
``(1) Appropriation.--Out of any money in the Treasury not
otherwise appropriated, there are appropriated to the Secretary
$250,000,000, to remain available for the purposes of this
subsection through fiscal year 2028.
``(2) Grants.--The Secretary shall make grants to eligible
area agencies on aging or other community-based organizations
for the purpose of--
``(A) conducting outreach to individuals at risk
for, or already experiencing, social isolation or
loneliness, through established screening tools or
other methods identified by the Secretary;
``(B) developing community-based interventions for
the purposes of mitigating loneliness or social
isolation (including evidence-based programs, as
defined by the Secretary, developed with multi-
stakeholder input for the purposes of promoting social
connection, mitigating social isolation or loneliness,
or preventing social isolation or loneliness) among at-
risk individuals;
``(C) connecting at-risk individuals with community
social and clinical supports; and
``(D) evaluating the effect of programs developed
and implemented under subparagraphs (B) and (C).
``(3) Training.--The Secretary shall establish programs to
provide and improve training for area agencies on aging or
community-based organizations with respect to addressing and
preventing social isolation and loneliness among older adults
and people with disabilities.
``(4) Evaluation.--Not later than 3 years after the date of
the enactment of this section and at least once after fiscal
year 2025, the Secretary shall submit to the Congress a written
report which assesses the extent to which the programs
established under this subsection address social isolation and
loneliness among older adults and people with disabilities.
``(5) Coordination.--The Secretary shall coordinate with
resource centers, grant programs, or other funding mechanisms
established under section 411(a)(18) of the Older Americans Act
(42 U.S.C. 3032(a)(18)), section 417(a)(1) of such Act (42
U.S.C. 3032F(a)(1)), or other programs as determined by the
Secretary.
``(c) Definitions.--In this section:
``(1) Area agency on aging.--The term `area agency on
aging' means an area agency on aging designated under section
305 of the Older Americans Act of 1965.
``(2) Social isolation.--The term `social isolation' means
objectively being alone, or having few relationships or
infrequent social contact.
``(3) Loneliness.--The term `loneliness' means subjectively
feeling alone, or the discrepancy between one's desired level
of social connection and one's actual level of social
connection.
``(4) Social connection.--The term `social connection'
means the variety of ways one can connect to others socially,
through physical, behavioral, social-cognitive, and emotional
channels.
``(5) Community-based organization.--The term `community-
based organization' includes, except as otherwise provided by
the Secretary, a nonprofit community-based organization, a
consortium of nonprofit community-based organizations, a
national nonprofit organization acting as an intermediary for a
community-based organization, or a community-based organization
that has a fiscal sponsor that allows the organization to
function as an organization described in section 501(c)(3) of
the Internal Revenue Code of 1986 and exempt from taxation
under section 501(a) of such Code.''.
(e) Technical Amendment.--Section 2011(12)(A) of the Social
Security Act (42 U.S.C. 1397j(12)(A)) is amended by striking ``450b''
and inserting ``5304''.
SEC. 134202. APPROPRIATION FOR ASSESSMENTS.
Out of any money in the Treasury not otherwise appropriated, there
are appropriated to the Secretary of Health and Human Services
$5,000,000 for each of fiscal years 2022 through 2025 to prepare and
submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate, not later
than 3 years after the date of enactment of this Act, and at least once
after fiscal year 2025, reports on the programs, coordinating bodies,
registries, and activities established or authorized under subtitle B
of title XX of the Social Security Act (42 U.S.C. 1397l et seq.) or
section 6703(b) of the Patient Protection and Affordable Care Act (42
U.S.C. 1395i-3a), which shall assess the extent to which such programs,
coordinating bodies, registries, and activities have improved access
to, and the quality of, resources available to aging Americans and
their caregivers to ultimately prevent, detect, and treat abuse,
neglect, and exploitation, and shall include, as appropriate,
recommendations to Congress on funding levels and policy changes to
help these programs, coordinating bodies, registries, and activities
better prevent, detect, and treat abuse, neglect, and exploitation of
aging Americans.
PART 3--SKILLED NURSING FACILITIES
SEC. 134301. FUNDING TO IMPROVE THE ACCURACY AND RELIABILITY OF CERTAIN
SKILLED NURSING FACILITY DATA.
Section 1888 of the Social Security Act (42 U.S.C. 1395yy) is
amended--
(1) in subsection (h)(12)--
(A) in subparagraph (A), by striking ``and the data
submitted under subsection (e)(6)'' and inserting ``,
the data submitted under subsection (e)(6), and, during
the period beginning with fiscal year 2024 and ending
with fiscal year 2031, the resident assessment data
described in section 1819(b)(3) and the direct care
staffing information described in section 1128I(g)'';
and
(B) in subparagraph (B)--
(i) by striking ``Funding.--For purposes''
and inserting ``Funding.--
``(i) Fiscal years 2023 through 2025.--For
purposes''; and
(ii) by adding at the end the following new
clause:
``(ii) Fiscal years 2026 through 2031.--
There is appropriated to the Secretary, out of
any monies in the Treasury not otherwise
appropriated, $50,000,000 for the period of
fiscal years 2026 through 2031 for purposes of
carrying out this paragraph.''; and
(2) in subsection (e)(6)(A)--
(A) in the header, by striking ``for failure to
report''; and
(B) in clause (i)--
(i) by striking ``For fiscal years'' and
inserting the following:
``(I) Failure to report.--For
fiscal years''; and
(ii) by adding at the end the following new
subclause:
``(II) Reporting of inaccurate
information.--For fiscal years during
the period beginning with fiscal year
2025 and ending with fiscal year 2031,
in the case of a skilled nursing
facility that submits data under this
paragraph, measures under subsection
(h), resident assessment data described
in section 1819(b)(3), or direct care
staffing information described in
section 1128I(g) with respect to such
fiscal year that is inaccurate (as
determined by the Secretary through the
validation process described in section
1888(h)(12) or otherwise), after
determining the percentage described in
paragraph (5)(B)(i), and after
application of clauses (ii) and (iii)
of paragraph (5)(B) and of subclause
(I) of this clause (if applicable), the
Secretary shall reduce such percentage
for payment rates during such fiscal
year by 2 percentage points.''.
SEC. 134302. ENSURING ACCURATE INFORMATION ON COST REPORTS.
Section 1888(f) of the Social Security Act (42 U.S.C. 1395yy(f)) is
amended by adding at the end the following new paragraph:
``(5) Audit of cost reports.--There is appropriated to the
Secretary, out of any monies in the Treasury not otherwise
appropriated, $250,000,000 for fiscal year 2023 to remain
available until expended, for purposes of conducting an annual
audit (beginning with 2022 and ending with 2031) of cost
reports submitted under this title for a representative sample
of skilled nursing facilities.''.
SEC. 134303. SURVEY IMPROVEMENTS.
Section 1819 of the Social Security Act (42 U.S.C. 1395i-3) is
amended by adding at the end the following new subsection:
``(l) Survey Improvements.--
``(1) In general.--There is appropriated to the Secretary,
out of any monies in the Treasury not otherwise appropriated,
$325,000,000, for the period of fiscal years 2022 through 2031,
for purposes of--
``(A) conducting reviews and identifying plans
under paragraph (2); and
``(B) providing training, tools, technical
assistance, and financial support in accordance with
paragraph (3).
``(2) Review.--The Secretary shall conduct reviews, during
the period specified in paragraph (1), of (and, as appropriate,
identify plans to improve) the following:
``(A) The extent to which surveys conducted under
subsection (g) and the enforcement process under
subsection (h) result in increased compliance with
requirements under this section and subpart B of part
483 of title 42, Code of Federal Regulations, with
respect to skilled nursing facilities (in this
subsection referred to as `facilities').
``(B) The timeliness and thoroughness of State
agency verification of deficiency corrections at
facilities.
``(C) The appropriateness of the scoping and
substantiation of cited deficiencies at facilities.
``(D) The accuracy of the identification and
appropriateness of the scoping of life safety,
infection control, and emergency preparedness
deficiencies at facilities.
``(E) The timeliness of State agency investigations
of--
``(i) complaints at facilities; and
``(ii) reported allegations of abuse,
neglect, and exploitation at facilities.
``(F) The consistency of facility reporting of
substantiated complaints to law enforcement.
``(G) The ability of the State agency to
sufficiently hire, train, and retain individuals who
conduct surveys.
``(H) Any other area related to surveys of
facilities, or the individuals conducting such surveys,
determined appropriate by the Secretary.
``(3) Support.--Based on the review under paragraph (2),
the Secretary shall, during the period specified in paragraph
(1), provide training, tools, technical assistance, and
financial support to State agencies that perform surveys of
facilities for the purpose of improving the surveys conducted
under subsection (g) and the enforcement process under
subsection (h) with respect to the areas reviewed under
paragraph (2).''.
SEC. 134304. NURSE STAFFING REQUIREMENTS.
Section 1819(d) of the Social Security Act (42 U.S.C. 1395i-3(d))
is amended--
(1) in paragraph (4)(A), by inserting ``and any regulations
promulgated under paragraph (5)(C)'' after ``section 1124'';
and
(2) by adding at the end the following new paragraph:
``(5) Nurse staffing requirements.--
``(A) Funding.--There is appropriated to the
Secretary, out of any monies in the Treasury not
otherwise appropriated, $50,000,000 for the period of
fiscal years 2022 through 2031 for purposes of carrying
out this paragraph.
``(B) Study.--Not later than 3 years after the date
of the enactment of this paragraph, and not less
frequently than once every 5 years thereafter, the
Secretary shall, out of funds appropriated under
subparagraph (A), conduct a study and submit to
Congress a report on the appropriateness of
establishing minimum staff to resident ratios for
nursing staff for skilled nursing facilities. Each such
report shall include--
``(i) with respect to the first such
report, recommendations regarding appropriate
minimum ratios of registered nurses (and, if
practicable, licensed practical nurses (or
licensed vocational nurses) and certified
nursing assistants) to residents at such
skilled nursing facilities; and
``(ii) with respect to each subsequent such
report, recommendations regarding appropriate
minimum ratios of registered nurses, licensed
practical nurses (or licensed vocational
nurses), and certified nursing assistants to
residents at such skilled nursing facilities.
``(C) Promulgation of regulations.--
``(i) In general.--Not later than 2 years
after the Secretary first submits a report
under subparagraph (B), the Secretary shall,
out of funds appropriated under subparagraph
(A)--
``(I) specify through regulations,
consistent with such report,
appropriate minimum ratios (if any) of
registered nurses (and, if practicable,
licensed practical nurses (or licensed
vocational nurses) and certified
nursing assistants) to residents at
skilled nursing facilities; and
``(II) except as provided in clause
(ii), require such skilled nursing
facilities to comply with such ratios.
``(ii) Exception.--
``(I) In general.--In addition to
the authority to waive the application
of clause (i)(II) under section 1135,
the Secretary may waive the application
of such clause with respect to a
skilled nursing facility if the
Secretary finds that--
``(aa) the facility is
located in a rural area and the
supply of skilled nursing
facility services in such area
is not sufficient to meet the
needs of individuals residing
therein;
``(bb) the Secretary
provides notice of the waiver
to the State long-term care
ombudsman (established under
section 307(a)(12) of the Older
Americans Act of 1965) and the
protection and advocacy system
in the State for the mentally
ill; and
``(cc) the facility that is
granted such a waiver notifies
residents of the facility (or,
where appropriate, the
guardians or legal
representatives of such
residents) and members of their
immediate families of the
waiver.
``(II) Renewal.--Any waiver in
effect under this clause shall be
subject to annual renewal.
``(iii) Update.--Not later than 2 years
after the submission of each subsequent report
under subparagraph (B), the Secretary shall,
out of funds appropriated under subparagraph
(A) and consistent with such report, update the
regulations described in clause (i)(I) to
reflect appropriate minimum ratios (if any) of
registered nurses, licensed practical nurses
(or licensed vocational nurses), and certified
nursing assistants to residents at skilled
nursing facilities.''.
PART 4--MEDICARE DENTAL, HEARING, AND VISION COVERAGE
SEC. 134401. PROVIDING COVERAGE FOR DENTAL AND ORAL HEALTH CARE UNDER
THE MEDICARE PROGRAM.
(a) Coverage.--Section 1861(s)(2) of the Social Security Act (42
U.S.C. 1395x(s)(2)) is amended--
(1) in subparagraph (GG), by striking ``and'' after the
semicolon at the end;
(2) in subparagraph (HH), by striking the period at the end
and adding ``; and''; and
(3) by adding at the end the following new subparagraph:
``(II) dental and oral health services (as defined in
subsection (lll));''.
(b) Dental and Oral Health Services Defined.--Section 1861 of the
Social Security Act (42 U.S.C. 1395x) is amended by adding at the end
the following new subsection:
``(lll) Dental and Oral Health Services.--
``(1) In general.--The term `dental and oral health
services' means items and services (other than such items and
services for which payment may be made under part A as
inpatient hospital services) that are furnished during 2028 or
a subsequent year, for which coverage was not provided under
part B as of the date of the enactment of this subsection, and
that are--
``(A) the preventive and screening services
described in paragraph (2) furnished by a doctor of
dental surgery or of dental medicine (as described in
subsection (r)(2)) or an oral health professional (as
defined in paragraph (4)); or
``(B) the basic treatments specified for such year
by the Secretary pursuant to paragraph (3)(A) and the
major treatments specified for such year by the
Secretary pursuant to paragraph (3)(B) furnished by
such a doctor or such a professional.
``(2) Preventive and screening services.--The preventive
and screening services described in this paragraph are the
following:
``(A) Oral exams.
``(B) Dental cleanings.
``(C) Dental x-rays performed in the office of a
doctor or professional described in paragraph (1)(A).
``(D) Fluoride treatments.
``(3) Basic and major treatments.--For 2028 and each
subsequent year, the Secretary shall specify--
``(A) basic treatments (which may include basic
tooth restorations, basic periodontal services, tooth
extractions, and oral disease management services); and
``(B) major treatments (which may include major
tooth restorations, major periodontal services,
bridges, crowns, and root canals);
that shall be included as dental and oral health services for
such year.
``(4) Oral health professional.--The term `oral health
professional' means, with respect to dental and oral health
services, a health professional (other than a doctor of dental
surgery or of dental medicine (as described in subsection
(r)(2))) who is licensed to furnish such services, acting
within the scope of such license, by the State in which such
services are furnished.''.
(c) Payment; Coinsurance; and Limitations.--
(1) In general.--Section 1833(a)(1) of the Social Security
Act (42 U.S.C. 1395l(a)(1)) is amended--
(A) in subparagraph (N), by inserting ``and dental
and oral health services (as defined in section
1861(lll))'' after ``section 1861(hhh)(1))'';
(B) by striking ``and'' before ``(DD)''; and
(C) by inserting before the semicolon at the end
the following: ``and (EE) with respect to dental and
oral health services (as defined in section 1861(lll)),
the amount paid shall be the payment amount specified
under section 1834(z)''.
(2) Payment and limits specified.--Section 1834 of the
Social Security Act (42 U.S.C. 1395m) is amended by adding at
the end the following new subsection:
``(z) Payment and Limits for Dental and Oral Health Services.--
``(1) In general.--The payment amount under this part for
dental and oral health services (as defined in section
1861(lll)) shall be, subject to paragraph (3), the applicable
percent (specified in paragraph (2)) of the lesser of--
``(A) the actual charge for the service; or
``(B) the amount determined under the payment basis
determined under section 1848 for the service, or, in
lieu of such amount, if determined appropriate by the
Secretary, an amount specified by the Secretary for
such service under a fee schedule determined
appropriate by the Secretary, taking into account fee
schedules for such services--
``(i) under the TRICARE program under
chapter 55 of title 10 of the United States
Code;
``(ii) under the health insurance program
under chapter 89 of title 5 of such Code;
``(iii) under State plans (or waivers of
such plans) under title XIX;
``(iv) under Medicare Advantage plans under
part C;
``(v) established by the Secretary of
Veterans Affairs; and
``(vi) established by other health care
payers.
``(2) Applicable percent.--For purposes of paragraph (1),
the applicable percent specified in this paragraph is, with
respect to dental and oral health services (as defined in
section 1861(lll)) furnished in a year--
``(A) that are preventive and screening services
described in paragraph (2) or basic treatments
specified for such year pursuant to paragraph (3)(A) of
such section, 80 percent; and
``(B) that are major treatments specified for such
year pursuant to paragraph (3)(B) of such section--
``(i) in the case such services are
furnished during 2028, 10 percent;
``(ii) in the case such services are
furnished during 2029 or a subsequent year
before 2032, the applicable percent specified
under this subparagraph for the previous year,
increased by 10 percentage points; and
``(iii) in the case such services are
furnished during 2032 or a subsequent year, 50
percent.
``(3) Limitations.--With respect to dental and oral health
services that are--
``(A) preventive and screening oral exams, payment
may be made under this part for not more than two such
exams during a 12-month period;
``(B) dental cleanings, payment may be made under
this part for not more than two such cleanings during a
12-month period; and
``(C) not described in subparagraph (A) or (B),
payment may be made under this part only at such
frequencies and under such circumstances determined
appropriate by the Secretary.
``(4) Use of bundled payments.--The Secretary may make
payment for dentures and associated professional services, and
for any other dental and oral health services, as bundled
payments as the Secretary determines appropriate.
``(5) Limitation on judicial review.--There shall be no
administrative or judicial review under section 1869 or
otherwise of--
``(A) the determination of payment amounts under
this subsection for dental and oral health services and
under subsection (h)(6) or subsection (z)(4) for
dentures;
``(B) the determination of what services are basic
and major services under subparagraphs (A) and (B) of
section 1861(lll)(3); or
``(C) the determination of the frequency and
circumstance limitations for dental and oral health
services under paragraph (3)(C).''.
(d) Payment Under Physician Fee Schedule.--
(1) In general.--Section 1848(j)(3) of the Social Security
Act (42 U.S.C. 1395w-4(j)(3)) is amended by inserting
``(2)(II),'' before ``(3)''.
(2) Exclusion from mips.--Section 1848(q)(1)(C)(ii) of the
Social Security Act (42 U.S.C. 1395w-4(q)(1)(C)(ii)) is
amended--
(A) in subclause (II), by striking ``or'' at the
end;
(B) in subclause (III), by striking the period at
the end and inserting ``; or''; and
(C) by adding at the end the following new
subclause:
``(IV) with respect to 2028 and
each subsequent year, is a doctor of
dental surgery or of dental medicine
(as described in section 1861(r)(2)) or
is an oral health professional (as
defined in section 1861(lll)(4)).''.
(3) Inclusion of oral health professionals as certain
practitioners.--Section 1842(b)(18)(C) of the Social Security
Act (42 U.S.C. 1395u(b)(18)(C)) is amended by adding at the end
the following new clause:
``(vii) With respect to 2028 and each subsequent year, an
oral health professional (as defined in section
1861(lll)(4)).''.
(e) Dentures.--
(1) In general.--Section 1861(s)(8) of the Social Security
Act (42 U.S.C. 1395x(s)(8)) is amended--
(A) by striking ``(other than dental)''; and
(B) by inserting ``and excluding dental, except for
a full or partial set of dentures (as described in
section 1834(h)(6)) furnished on or after January 1,
2028'' after ``colostomy care''.
(2) Special payment rules.--
(A) Limitations.--Section 1834(h) of the Social
Security Act (42 U.S.C. 1395m(h)) is amended by adding
at the end the following new paragraph:
``(6) Special payment rule for dentures.--Payment may be
made under this part with respect to an individual for
dentures--
``(A) not more than once during any 5-year period
(except in the case that a doctor described in section
1861(lll)(1)(A) determines such dentures do not fit the
individual); and
``(B) only to the extent that such dentures are
furnished pursuant to a written order of such a doctor
or professional.''.
(B) Application of competitive acquisition.--
(i) In general.--Section 1834(h)(1)(H) of
the Social Security Act (42 U.S.C.
1395m(h)(1)(H)) is amended--
(I) in the subparagraph heading, by
inserting ``, dentures'' after
``orthotics'';
(II) by inserting ``, of dentures
described in paragraph (2)(D) of such
section,'' after ``2011,''; and
(III) in clause (i), by inserting
``, such dentures'' after
``orthotics''.
(ii) Conforming amendment.--Section
1847(a)(2) of the Social Security Act (42
U.S.C. 1395w-3(a)(2)) is amended by adding at
the end the following new subparagraph:
``(D) Dentures.--Dentures described in section
1861(s)(8) for which payment would otherwise be made
under section 1834(h).''.
(iii) Exemption of certain items from
competitive acquisition.--Section 1847(a)(7) of
the Social Security Act (42 U.S.C. 1395w-
3(a)(7)) is amended by adding at the end the
following new subparagraph:
``(C) Certain dentures.--Those items and services
described in paragraph (2)(D) if furnished by a
physician or other practitioner (as defined by the
Secretary) to the physician's or practitioner's own
patients as part of the physician's or practitioner's
professional service.''.
(f) Exclusion Modifications.--Section 1862(a) of the Social
Security Act (42 U.S.C. 1395y(a)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (O), by striking ``and'' at the
end;
(B) in subparagraph (P), by striking the semicolon
at the end and inserting ``, and''; and
(C) by adding at the end the following new
subparagraph:
``(Q) in the case of dental and oral health services (as
defined in section 1861(lll)) that are preventive and screening
services described in paragraph (2) of such section, which are
furnished more frequently than provided under section
1834(z)(3) or under circumstances other than circumstances
determined appropriate under subparagraph (C) of such
section;''; and
(2) in paragraph (12), by inserting before the semicolon at
the end the following: ``and except that payment may be made
under part B for dental and oral health services that are
covered under section 1861(s)(2)(II) and for dentures under
section 1861(s)(8)''.
(g) Certain Non-application.--
(1) In general.--Paragraphs (1) and (4) of section 1839(a)
of the Social Security Act (42 U.S.C. 1395r(a)) are amended by
adding at the end of each such paragraphs the following: ``In
applying this paragraph there shall not be taken into account
benefits and administrative costs attributable to the
amendments made by section 134401 (other than subsection (g))
of An Act to provide for reconciliation pursuant to title II of
S. Con. Res. 14 and the Government contribution under section
1844(a)(5)''.
(2) Payment.--Section 1844(a) of such Act (42 U.S.C.
1395w(a)) is amended--
(A) in paragraph (4), by striking the period at the
end and inserting ``; plus'';
(B) by adding at the end the following new
paragraph:
``(5) a Government contribution equal to the amount that is
estimated to be payable for benefits and related administrative
costs incurred that are attributable to the amendments made by
section 134401 (other than subsection (g)) of the An Act to
provide for reconciliation pursuant to title II of S. Con. Res.
14.''; and
(C) in the flush matter at the end, by striking
``paragraph (4)'' and inserting ``paragraphs (4) and
(5)''.
(h) Implementation.--
(1) Funding.--
(A) In general.--In addition to amounts otherwise
available, the Secretary of Health and Human Services
(in this subsection referred to as the ``Secretary'')
shall provide for the transfer from the Federal
Supplementary Medical Insurance Trust Fund under
section 1841 of the Social Security Act (42 U.S.C.
1395t) to the Centers for Medicare & Medicaid Services
Program Management Account of--
(i) $20,000,000 for each of fiscal years
2022 through 2028 for purposes of implementing
the amendments made by this section; and
(ii) such sums as determined appropriate by
the Secretary for each subsequent fiscal year
for purposes of administering the provisions of
such amendments.
(B) Availability and additional use of funds.--
Funds transferred pursuant to subparagraph (A) shall
remain available until expended and may be used, in
addition to the purpose specified in subparagraph
(A)(i), to implement the amendments made by sections
134402 and 134403.
(2) Administration.--Notwithstanding any other provision of
law, the Secretary may implement, by program instruction or
otherwise, any of the provisions of, or amendments made by,
this section.
(3) Paperwork reduction act.--Chapter 35 of title 44,
United States Code, shall not apply to the provisions of, or
the amendments made by, this section.
SEC. 134402. PROVIDING COVERAGE FOR HEARING CARE UNDER THE MEDICARE
PROGRAM.
(a) Provision of Aural Rehabilitation and Treatment Services by
Qualified Audiologists.--Section 1861(ll)(3) of the Social Security Act
(42 U.S.C. 1395x(ll)(3)) is amended by inserting ``(and, beginning
October 1, 2023, such aural rehabilitation and treatment services)''
after ``assessment services''.
(b) Coverage of Hearing Aids.--
(1) Inclusion of hearing aids as prosthetic devices.--
Section 1861(s)(8) of the Social Security Act (42 U.S.C.
1395x(s)(8)) is amended by inserting ``, and including hearing
aids (as described in section 1834(h)(7)) furnished on or after
October 1, 2023, to individuals diagnosed with profound or
severe hearing loss'' before the semicolon at the end.
(2) Payment limitations for hearing aids.--Section 1834(h)
of the Social Security Act (42 U.S.C. 1395m(h)), as amended by
section 134401(e)(2)(A), is further amended by adding at the
end the following new paragraph:
``(7) Limitations for hearing aids.--
``(A) In general.--Payment may be made under this
part with respect to an individual, with respect to
hearing aids furnished on or after October 1, 2023--
``(i) not more than once during a 5-year
period;
``(ii) only for types of such hearing aids
that are not over-the-counter hearing aids (as
defined in section 520(q)(1) of the Federal
Food, Drug, and Cosmetic Act) and that are
determined appropriate by the Secretary; and
``(iii) only if furnished pursuant to a
written order of a physician or qualified
audiologist (as defined in section
1861(ll)(4)(B)).
``(B) Limitation on judicial review.--There shall
be no administrative or judicial review under section
1869 or otherwise of--
``(i) the determination of the types of
hearing aids paid for under subparagraph
(A)(ii); or
``(ii) the determination of fee schedule
rates for hearing aids described in this
paragraph.''.
(3) Application of competitive acquisition.--
(A) In general.--Section 1834(h)(1)(H) of the
Social Security Act (42 U.S.C. 1395m(h)(1)(H)), as
amended by section 134401(e)(2)(B)(i), is further
amended--
(i) in the header, by inserting ``, hearing
aids'' after ``dentures'';
(ii) by inserting ``, of hearing aids
described in paragraph (2)(E) of such
section,'' after ``paragraph (2)(D) of such
section''; and
(iii) in clause (i), by inserting ``, such
hearing aids'' after ``such dentures''.
(B) Conforming amendment.--
(i) In general.--Section 1847(a)(2) of the
Social Security Act (42 U.S.C. 1395w-3(a)(2)),
as amended by section 134401(e)(2)(B)(ii), is
further amended by adding at the end the
following new subparagraph:
``(E) Hearing aids.--Hearing aids described in
section 1861(s)(8) for which payment would otherwise be
made under section 1834(h).''.
(ii) Exemption of certain items from
competitive acquisition.--Section 1847(a)(7) of
the Social Security Act (42 U.S.C. 1395w-
3(a)(7)), as amended by section
134401(e)(2)(B)(iii), is further amended by
adding at the end the following new
subparagraph:
``(D) Certain hearing aids.--Those items and
services described in paragraph (2)(E) if furnished by
a physician or other practitioner (as defined by the
Secretary) to the physician's or practitioner's own
patients as part of the physician's or practitioner's
professional service.''.
(4) Inclusion of audiologists as certain practitioners to
receive payment on an assignment-related basis.--Section
1842(b)(18)(C) of the Social Security Act (42 U.S.C.
1395u(b)(18)(C)), as amended by section 134401(d)(4), is
further amended by adding at the end the following new clause:
``(viii) Beginning October 1, 2023, a
qualified audiologist (as defined in section
1861(ll)(4)(B)).''.
(c) Exclusion Modification.--Section 1862(a)(7) of the Social
Security Act (42 U.S.C. 1395y(a)(7)) is amended by inserting ``(except
such hearing aids or examinations therefor as described in and
otherwise allowed under section 1861(s)(8))'' after ``hearing aids or
examinations therefor''.
(d) Certain Non-application.--
(1) In general.--The last sentence of section 1839(a)(1) of
the Social Security Act (42 U.S.C. 1395r(a)(1)), as added by
section 134401(g)(1), is amended by striking ``section 134401
(other than subsection (g))'' and inserting ``sections 134401
(other than subsection (g)), 134402 (other than subsection
(d))''.
(2) Payment.--Paragraph (4) of section 1844(a) of such Act
(42 U.S.C. 1395w(a)), as added by section 134401(g)(2), is
amended by striking ``section 134401 (other than subsection
(g))'' and inserting ``sections 134401 (other than subsection
(g)), 134402 (other than subsection (d))''.
(e) Implementation.--
(1) Funding.--
(A) In general.--In addition to amounts otherwise
available, the Secretary of Health and Human Services
(in this subsection referred to as the ``Secretary'')
shall provide for the transfer from the Federal
Supplementary Medical Insurance Trust Fund under
section 1841 of the Social Security Act (42 U.S.C.
1395t) to the Centers for Medicare & Medicaid Services
Program Management Account of--
(i) $20,000,000 for each of fiscal years
2022 through 2023 for purposes of implementing
the amendments made by this section; and
(ii) such sums as determined appropriate by
the Secretary for each subsequent fiscal year
for purposes of administering the provisions of
such amendments.
(B) Availability and additional use of funds.--
Funds transferred pursuant to subparagraph (A) shall
remain available until expended and may be used, in
addition to the purpose specified in subparagraph
(A)(i), to implement the amendments made by sections
134401 and 134403.
(2) Administration.--Notwithstanding any other provision of
law, the Secretary may implement, by program instruction or
otherwise, any of the provisions of, or amendments made by,
this section.
(3) Paperwork reduction act.--Chapter 35 of title 44,
United States Code, shall not apply to the provisions of, or
the amendments made by, this section.
SEC. 134403. PROVIDING COVERAGE FOR VISION CARE UNDER THE MEDICARE
PROGRAM.
(a) Coverage.--Section 1861(s)(2) of the Social Security Act (42
U.S.C. 1395x(s)(2)), as amended by section 134401(a), is further
amended--
(1) in subparagraph (HH), by striking ``and'' after the
semicolon at the end;
(2) in subparagraph (II), by striking the period at the end
and adding ``; and''; and
(3) by adding at the end the following new subparagraph:
``(JJ) vision services (as defined in subsection (mmm));''.
(b) Vision Services Defined.--Section 1861 of the Social Security
Act (42 U.S.C. 1395x), as amended by section 134401(b), is further
amended by adding at the end the following new subsection:
``(mmm) Vision Services.--The term `vision services' means--
``(1) routine eye examinations to determine the refractive
state of the eyes, including procedures performed during the
course of such examination; and
``(2) contact lens fitting services;
furnished on or after October 1, 2022, by or under the direct
supervision of an ophthalmologist or optometrist who is legally
authorized to furnish such examinations, procedures, or fitting
services (as applicable) under State law (or the State regulatory
mechanism provided by State law) of the State in which the
examinations, procedures, or fitting services are furnished.''.
(c) Payment Limitations.--Section 1834 of the Social Security Act
(42 U.S.C. 1395m), as amended by section 134401(c)(2), is further
amended by adding at the end the following new subsection:
``(aa) Limitation for Vision Services.--With respect to vision
services (as defined in section 1861(mmm)) and an individual, payment
may be made under this part for only 1 routine eye examination
described in paragraph (1) of such section and 1 contact lens fitting
service described in paragraph (2) of such section during a 2-year
period.''.
(d) Payment Under Physician Fee Schedule.--Section 1848(j)(3) of
the Social Security Act (42 U.S.C. 1395w-4(j)(3)), as amended by
section 134401(d)(1), is further amended by inserting ``(2)(JJ),''
before ``(3)''.
(e) Coverage of Conventional Eyeglasses and Contact Lenses.--
(1) In general.--Section 1861(s)(8) of the Social Security
Act (42 U.S.C. 1395x(s)(8)), as amended by section
134402(b)(1), is further amended by striking ``, and including
one pair of conventional eyeglasses or contact lenses furnished
subsequent to each cataract surgery with insertion of an
intraocular lens'' and inserting ``, including one pair of
conventional eyeglasses or contact lenses furnished subsequent
to each cataract surgery with insertion of an intraocular lens,
if furnished before October 1, 2022, and including conventional
eyeglasses or contact lenses (as described in section
1834(h)(8)), whether or not furnished subsequent to such a
surgery, if furnished on or after October 1, 2022''.
(2) Conforming amendment.--Section 1842(b)(11)(A) of the
Social Security Act (42 U.S.C. 1395u(b)(11)(A)) is amended by
inserting ``furnished prior to October 1, 2022,'' after
``relating to them,''.
(f) Special Payment Rules for Eyeglasses and Contact Lenses.--
(1) Limitations.--Section 1834(h) of the Social Security
Act (42 U.S.C. 1395m(h)), as amended by section 134401(e)(2)(A)
and section 134402(b)(2), is further amended by adding at the
end the following new paragraph:
``(8) Payment limitations for eyeglasses and contact
lenses.--
``(A) In general.--With respect to eyeglasses and
contact lenses furnished to an individual on or after
October 1, 2022, subject to subparagraph (B), payment
may be made under this part only--
``(i) during a 2-year period, for either 1
pair of eyeglasses (including lenses and
frames) or not more than a 2-year supply of
contact lenses;
``(ii) with respect to amounts attributable
to the lenses and frames of such a pair of
eyeglasses or amounts attributable to such a 2-
year supply of contact lenses, in an amount not
greater than--
``(I) for a pair of eyeglasses
furnished in, or a 2-year supply of
contact lenses beginning in, 2022--
``(aa) $85 for the lenses
of such pair of eyeglasses and
$85 for the frames of such pair
of eyeglasses; or
``(bb) $85 for such 2-year
supply of contact lenses; and
``(II) for the lenses and frames of
a pair of eyeglasses furnished in, or a
2-year supply of contact lenses
beginning in, a subsequent year, the
dollar amounts specified under this
subparagraph for the previous year,
increased by the percentage change in
the consumer price index for all urban
consumers (United States city average)
for the 12-month period ending with
June of the previous year;
``(iii) if furnished pursuant to a written
order of a physician described in section
1861(lll); and
``(iv) if during the 2-year period
described in clause (i), the individual did not
already receive (as described in subparagraph
(B)) one pair of conventional eyeglasses or
contact lenses subsequent to a cataract surgery
with insertion of an intraocular lens furnished
during such period.
``(B) Exception.--With respect to a 2-year period
described in subparagraph (A)(i), in the case of an
individual who receives cataract surgery with insertion
of an intraocular lens, notwithstanding subparagraph
(A), payment may be made under this part for one pair
of conventional eyeglasses or contact lenses furnished
subsequent to such cataract surgery during such period.
``(C) Limitation on judicial review.--There shall
be no administrative or judicial review under section
1869 or otherwise of--
``(i) the determination of the types of
eyeglasses and contact lenses covered under
this paragraph; or
``(ii) the determination of fee schedule
rates under this subsection for eyeglasses and
contact lenses.''.
(2) Application of competitive acquisition.--
(A) In general.--Section 1834(h)(1)(H) of the
Social Security Act (42 U.S.C. 1395m(h)(1)(H)), as
amended by section 134401(e)(2)(B)(i) and section
134402(b)(3)(A), is further amended--
(i) in the header by inserting ``,
eyeglasses, and contact lenses'' after
``hearing aids'';
(ii) by inserting ``and of eyeglasses and
contact lenses described in paragraph (2)(F) of
such section,'' after ``paragraph (2)(E) of
such section,''; and
(iii) in clause (i), by inserting ``, or
such eyeglasses and contact lenses'' after
``such hearing aids''.
(B) Conforming amendment.--
(i) In general.--Section 1847(a)(2) of the
Social Security Act (42 U.S.C. 1395w-3(a)(2)),
as amended by section 134401(e)(2)(B)(ii) and
section 134402(b)(3)(B)(i), is further amended
by adding at the end the following new
subparagraph:
``(F) Eyeglasses and contact lenses.--Eyeglasses
and contact lenses described in section 1861(s)(8) for
which payment would otherwise be made under section
1834(h).''.
(ii) Exemption of certain items from
competitive acquisition.--Section 1847(a)(7) of
the Social Security Act (42 U.S.C. 1395w-
3(a)(7)), as amended by section
134401(e)(2)(B)(iii) and section
134402(b)(3)(B)(ii), is further amended by
adding at the end the following new
subparagraph:
``(E) Certain eyeglasses and contact lenses.--Those
items and services described in paragraph (2)(F) if
furnished by a physician or other practitioner (as
defined by the Secretary) to the physician's or
practitioner's own patients as part of the physician's
or practitioner's professional service.''.
(g) Exclusion Modifications.--Section 1862(a) of the Social
Security Act (42 U.S.C. 1395y(a)), as amended by section 134401(f), is
further amended--
(1) in paragraph (1)--
(A) in subparagraph (P), by striking ``and'' at the
end;
(B) in subparagraph (Q), by striking the semicolon
at the end and inserting ``, and''; and
(C) by adding at the end the following new
subparagraph:
``(R) in the case of vision services (as defined in section
1861(mmm)) that are routine eye examinations and contact lens
fitting services (as described in paragraph (1) or (2),
respectively, of such section), which are furnished more
frequently than once during a 2-year period;''; and
(2) in paragraph (7)--
(A) by inserting ``(other than such an examination
that is a vision service that is covered under section
1861(s)(2)(JJ))'' after ``eye examinations''; and
(B) by inserting ``(other than such a procedure
that is a vision service that is covered under section
1861(s)(2)(JJ))'' after ``refractive state of the
eyes''.
(h) Certain Non-application.--
(1) In general.--The last sentence of section 1839(a)(1) of
the Social Security Act (42 U.S.C. 1395r(a)(1)), as added by
section 134401(g)(1) and amended by section 134402(d)(1), is
further amended by inserting ``, and 134403 (other than
subsection (h))'' after ``134402 (other than subsection (d))''.
(2) Payment.--Paragraph (4) of section 1844(a) of such Act
(42 U.S.C. 1395w(a)), as added by section 134401(g)(2) and
amended by section 134402(d)(2), is further amended by
inserting ``, and 134403 (other than subsection (h))'' after
``134402 (other than subsection (d))''.
(i) Implementation.--
(1) Funding.--
(A) In general.--In addition to amounts otherwise
available, the Secretary of Health and Human Services
(in this subsection referred to as the ``Secretary'')
shall provide for the transfer from the Federal
Supplementary Medical Insurance Trust Fund under
section 1841 of the Social Security Act (42 U.S.C.
1395t) to the Centers for Medicare & Medicaid Services
Program Management Account of--
(i) $20,000,000 for each of fiscal years
2022 and 2023 for purposes of implementing the
amendments made by this section; and
(ii) such sums as determined appropriate by
the Secretary for each subsequent fiscal year
for purposes of administering the provisions of
such amendments.
(B) Availability and additional use of funds.--
Funds transferred pursuant to subparagraph (A) shall
remain available until expended and may be used, in
addition to the purpose specified in subparagraph
(A)(i), to implement the amendments made by sections
134401 and 134402.
(2) Administration.--Notwithstanding any other provision of
law, the Secretary may implement, by program instruction or
otherwise, any of the provisions of, or amendments made by,
this section.
(3) Paperwork reduction act.--Chapter 35 of title 44,
United States Code, shall not apply to the provisions of, or
the amendments made by, this section.
Subtitle F--Infrastructure Financing and Community Development
SEC. 135001. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this subtitle
an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
PART 1--INFRASTRUCTURE FINANCING
Subpart A--Bond Financing
SEC. 135101. CREDIT TO ISSUER FOR CERTAIN INFRASTRUCTURE BONDS.
(a) In General.--Subchapter B of chapter 65 is amended by inserting
before section 6432 the following new section:
``SEC. 6431A. CREDIT ALLOWED TO ISSUER FOR QUALIFIED INFRASTRUCTURE
BONDS.
``(a) In General.--In the case of a qualified infrastructure bond,
the issuer of such bond shall be allowed a credit with respect to each
interest payment under such bond which shall be payable by the
Secretary as provided in subsection (b).
``(b) Payment of Credit.--
``(1) In general.--The Secretary shall pay
(contemporaneously with each date on which interest is paid,
including any interest paid after the originally scheduled
payment date) to the issuer of such bond (or, at the direction
of the issuer, to any person who makes such interest payments
on behalf of such issuer) an amount equal to the applicable
percentage of such interest so paid.
``(2) Applicable percentage.--For purposes of this
subsection, except as provided in subsection (d), the
applicable percentage with respect to any bond shall be
determined under the following table:
``In the case of a bond issued The applicable percentage is:
during calendar year:
2022 through 2024.................................. 35%
2025............................................... 32%
2026............................................... 30%
2027 and thereafter................................ 28%
``(3) Limitation.--
``(A) In general.--The amount of any interest
payment taken into account under paragraph (1) with
respect to a bond for any payment date shall not exceed
the amount of interest which would have been payable
under such bond for such payment date if interest were
determined at the applicable credit rate multiplied by
the applicable amount for such bond for such payment
date.
``(B) Applicable credit rate.--For purposes of
subparagraph (A)--
``(i) In general.--The applicable credit
rate is the rate which the Secretary estimates
will permit the issuance of qualified
infrastructure bonds with a specified maturity
or redemption date without discount and without
additional interest cost to the issuer.
``(ii) Date of determination.--The
applicable credit rate with respect to any
qualified infrastructure bond shall be
determined as of the first day on which there
is a binding, written contract for the sale or
exchange of the bond.
``(C) Applicable amount.--
``(i) Bonds with more than de minimis
original issue discount.--In the case of any
bond that has more than a de minimis amount of
original issue discount (determined under the
rules of section 1273(a)(3)), the applicable
amount for a payment date is the issue price of
such bond (within the meaning of section 148),
as adjusted for any principal payments made
prior to such date.
``(ii) Other bonds.--In the case of any
other bond, the applicable amount for a payment
date is the outstanding principal amount of
such bond on such payment date (determined
without taking into account any principal
payment on such bond on such date).
``(c) Qualified Infrastructure Bond.--
``(1) In general.--For purposes of this section, the term
`qualified infrastructure bond' means any bond (other than a
private activity bond) issued as part of an issue if--
``(A) 100 percent of the excess of available
project proceeds of such issue over the amounts in a
reasonably required reserve (within the meaning of
section 150(a)(3)) with respect to such issue are to be
used for--
``(i) capital expenditures or operations
and maintenance expenditures in connection with
property the acquisition, construction, or
improvement of which would be a capital
expenditure, or
``(ii) payments made by a State or
political subdivision of a State to a custodian
of a rail corridor for purposes of the
transfer, lease, sale, or acquisition of an
established railroad right-of-way consistent
with section 8(d) of the National Trails Act of
1968, but only if the Surface Transportation
Board has issued a certificate of interim trail
use or notice of interim trail use for purposes
of authorizing such transfer, lease, sale, or
acquisition,
``(B) the interest on such bond would (but for this
section) be excludable from gross income under section
103,
``(C) the issue price has not more than a de
minimis amount (determined under rules similar to the
rules of section 1273(a)(3)) of premium over the stated
principal amount of the bond, and
``(D) prior to the issuance of such bond, the
issuer makes an irrevocable election to have this
section apply.
``(2) Applicable rules.--For purposes of applying paragraph
(1)--
``(A) Not treated as federally guaranteed.--For
purposes of section 149(b), a qualified infrastructure
bond shall not be treated as federally guaranteed by
reason of the credit allowed under this section.
``(B) Application of arbitrage rules.--For purposes
of section 148, the yield on a qualified infrastructure
bond shall be reduced by the credit allowed under this
section, except that no such reduction shall apply in
determining the amount of gross proceeds of an issue
that qualifies as a reasonably required reserve or
replacement fund.
``(d) Definition and Special Rules.--For purposes of this section--
``(1) Interest includible in gross income.--For purposes of
this title, interest on any qualified infrastructure bond shall
be includible in gross income.
``(2) Available project proceeds.--The term `available
project proceeds' means--
``(A) the excess of--
``(i) the proceeds from the sale of an
issue, over
``(ii) issuance costs financed by the issue
(to the extent that such costs do not exceed 2
percent of such proceeds), and
``(B) the proceeds from any investment of the
excess described in subparagraph (A).
``(3) Current refundings allowed.--
``(A) In general.--In the case of a bond issued to
refund a qualified infrastructure bond, such refunding
bond shall not be treated as a qualified infrastructure
bond for purposes of this section unless--
``(i) the average maturity date of the
issue of which the refunding bond is a part is
not later than the average maturity date of the
bonds to be refunded by such issue,
``(ii) the amount of the refunding bond
does not exceed the outstanding amount of the
refunded bond,
``(iii) the refunded bond is redeemed not
later than 90 days after the date of the
issuance of the refunding bond, and
``(iv) the refunded bond was issued more
than 30 days after the date of the enactment of
this section.
``(B) Applicable percentage limitation.--The
applicable percentage with respect to any bond to which
subparagraph (A) applies shall be 28 percent.
``(C) Determination of average maturity.--For
purposes of subparagraph (A)(i), average maturity shall
be determined in accordance with section 147(b)(2)(A).
``(4) Application of davis-bacon act requirements with
respect to qualified infrastructure bonds.--Subchapter IV of
chapter 31 of title 40, United States Code, shall apply to
projects financed with the proceeds of qualified infrastructure
bonds.
``(e) Regulations.--The Secretary may prescribe such regulations
and other guidance as may be necessary or appropriate to carry out this
section.''.
(b) Gross-up of Payment to Issuers in Case of Sequestration.--In
the case of any payment under section 6431A of the Internal Revenue
Code of 1986 made after the date of the enactment of this Act to which
sequestration applies, the amount of such payment shall be increased to
an amount equal to--
(1) such payment (determined before such sequestration),
multiplied by
(2) the quotient obtained by dividing 1 by the amount by
which 1 exceeds the percentage reduction in such payment
pursuant to such sequestration.
For purposes of this subsection, the term ``sequestration'' means any
reduction in direct spending ordered in accordance with a sequestration
report prepared by the Director of the Office and Management and Budget
pursuant to the Balanced Budget and Emergency Deficit Control Act of
1985 or the Statutory Pay-As-You-Go Act of 2010.
(c) Conforming Amendments.--
(1) Section 1324(b)(2) of title 31, United States Code, is
amended by striking ``or 6431'' and inserting ``6431, or
6431A''.
(2) The table of sections for subchapter B of chapter 65 is
amended by inserting before the item relating to section 6432
the following new item:
``Sec. 6431A. Credit allowed to issuer for qualified infrastructure
bonds.''.
(d) Effective Date.--The amendments made by this section shall
apply to bonds issued after December 31, 2021.
SEC. 135102. ADVANCE REFUNDING BONDS.
(a) In General.--Section 149(d) is amended--
(1) by striking ``to advance refund another bond.'' in
paragraph (1) and inserting ``as part of an issue described in
paragraph (2), (3), or (4).'',
(2) by redesignating paragraphs (2) and (3) as paragraphs
(5) and (7), respectively,
(3) by inserting after paragraph (1) the following new
paragraphs:
``(2) Certain private activity bonds.--An issue is
described in this paragraph if any bond (issued as part of such
issue) is issued to advance refund a private activity bond
(other than a qualified 501(c)(3) bond).
``(3) Other bonds.--
``(A) In general.--An issue is described in this
paragraph if any bond (issued as part of such issue),
hereinafter in this paragraph referred to as the
`refunding bond', is issued to advance refund a bond
unless--
``(i) the refunding bond is only--
``(I) the first advance refunding
of the original bond if the original
bond is issued after 1985, or
``(II) the first or second advance
refunding of the original bond if the
original bond was issued before 1986,
``(ii) in the case of refunded bonds issued
before 1986, the refunded bond is redeemed not
later than the earliest date on which such bond
may be redeemed at par or at a premium of 3
percent or less,
``(iii) in the case of refunded bonds
issued after 1985, the refunded bond is
redeemed not later than the earliest date on
which such bond may be redeemed,
``(iv) the initial temporary period under
section 148(c) ends--
``(I) with respect to the proceeds
of the refunding bond not later than 30
days after the date of issue of such
bond, and
``(II) with respect to the proceeds
of the refunded bond on the date of
issue of the refunding bond, and
``(v) in the case of refunded bonds to
which section 148(e) did not apply, on and
after the date of issue of the refunding bond,
the amount of proceeds of the refunded bond
invested in higher yielding investments (as
defined in section 148(b)) which are nonpurpose
investments (as defined in section
148(f)(6)(A)) does not exceed--
``(I) the amount so invested as
part of a reasonably required reserve
or replacement fund or during an
allowable temporary period, and
``(II) the amount which is equal to
the lesser of 5 percent of the proceeds
of the issue of which the refunded bond
is a part or $100,000 (to the extent
such amount is allocable to the
refunded bond).
``(B) Special rules for redemptions.--
``(i) Issuer must redeem only if debt
service savings.--Clause (ii) and (iii) of
subparagraph (A) shall apply only if the issuer
may realize present value debt service savings
(determined without regard to administrative
expenses) in connection with the issue of which
the refunding bond is a part.
``(ii) Redemptions not required before 90th
day.--For purposes of clauses (ii) and (iii) of
subparagraph (A), the earliest date referred to
in such clauses shall not be earlier than the
90th day after the date of issuance of the
refunding bond.
``(4) Abusive transactions prohibited.--An issue is
described in this paragraph if any bond (issued as part of such
issue) is issued to advance refund another bond and a device is
employed in connection with the issuance of such issue to
obtain a material financial advantage (based on arbitrage)
apart from savings attributable to lower interest rates.'', and
(4) by inserting after paragraph (5) (as so redesignated)
the following new paragraph:
``(6) Special rules for purposes of paragraph (3).--For
purposes of paragraph (3), bonds issued before October 22,
1986, shall be taken into account under subparagraph (A)(i)
thereof except--
``(A) a refunding which occurred before 1986 shall
be treated as an advance refunding only if the
refunding bond was issued more than 180 days before the
redemption of the refunded bond, and
``(B) a bond issued before 1986, shall be treated
as advance refunded no more than once before March 15,
1986.''.
(b) Conforming Amendment.--Section 148(f)(4)(C) is amended by
redesignating clauses (xiv) through (xvi) as clauses (xv) to (xvii),
respectively, and by inserting after clause (xiii) the following new
clause:
``(xiv) Determination of initial temporary
period.--For purposes of this subparagraph, the
end of the initial section temporary period
shall be determined without regard to section
149(d)(3)(A)(iv).''.
(c) Effective Date.--The amendments made by this section shall
apply to advance refunding bonds issued more than 30 days after the
date of the enactment of this Act.
SEC. 135103. PERMANENT MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-
EXEMPT INTEREST EXPENSE ALLOCATION RULES FOR FINANCIAL
INSTITUTIONS.
(a) Permanent Increase in Limitation.--Subparagraphs (C)(i),
(D)(i), and (D)(iii)(II) of section 265(b)(3) are each amended by
striking ``$10,000,000'' and inserting ``$30,000,000''.
(b) Permanent Modification of Other Special Rules.--Section
265(b)(3) is amended--
(1) by redesignating clauses (iv), (v), and (vi) of
subparagraph (G) as clauses (ii), (iii), and (iv),
respectively, and moving such clauses to the end of
subparagraph (H) (as added by paragraph (2)), and
(2) by striking so much of subparagraph (G) as precedes
such clauses and inserting the following:
``(G) Qualified 501(c)(3) bonds treated as issued
by exempt organization.--In the case of a qualified
501(c)(3) bond (as defined in section 145), this
paragraph shall be applied by treating the 501(c)(3)
organization for whose benefit such bond was issued as
the issuer.
``(H) Special rule for qualified financings.--
``(i) In general.--In the case of a
qualified financing issue--
``(I) subparagraph (F) shall not
apply, and
``(II) any obligation issued as a
part of such issue shall be treated as
a qualified tax-exempt obligation if
the requirements of this paragraph are
met with respect to each qualified
portion of the issue (determined by
treating each qualified portion as a
separate issue which is issued by the
qualified borrower with respect to
which such portion relates).''.
(c) Inflation Adjustment.--Section 265(b)(3), as amended by
subsection (b), is amended by adding at the end the following new
subparagraph:
``(I) Inflation adjustment.--In the case of any
calendar year after 2021, the $30,000,000 amounts
contained in subparagraphs (C)(i), (D)(i), and
(D)(iii)(II) shall each be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for such
calendar year, determined by substituting
`calendar year 2020' for `calendar year 2016'
in subparagraph (A)(ii) thereof.
Any increase determined under the preceding sentence
shall be rounded to the nearest multiple of
$100,000.''.
(d) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
SEC. 135104. MODIFICATIONS TO QUALIFIED SMALL ISSUE BONDS.
(a) Manufacturing Facilities To Include Production of Intangible
Property and Functionally Related Facilities.--Subparagraph (C) of
section 144(a)(12) is amended to read as follows:
``(C) Manufacturing facility.--For purposes of this
paragraph--
``(i) In general.--The term `manufacturing
facility' means any facility which--
``(I) is used in the manufacturing
or production of tangible personal
property (including the processing
resulting in a change in the condition
of such property),
``(II) is used in the creation or
production of intangible property which
is described in section
197(d)(1)(C)(iii), or
``(III) is functionally related and
subordinate to a facility described in
subclause (I) or (II) if such facility
is located on the same site as the
facility described in subclause (I) or
(II).
``(ii) Certain facilities included.--The
term `manufacturing facility' includes
facilities that are directly related and
ancillary to a manufacturing facility
(determined without regard to this clause) if--
``(I) those facilities are located
on the same site as the manufacturing
facility, and
``(II) not more than 25 percent of
the net proceeds of the issue are used
to provide those facilities.
``(iii) Limitation on office space.--A rule
similar to the rule of section 142(b)(2) shall
apply for purposes of clause (i).
``(iv) Limitation on refundings for certain
property.--Subclauses (II) and (III) of clause
(i) shall not apply to any bond issued on or
before the date of the enactment of the Act to
provide for reconciliation pursuant to title II
of S. Con. Res. 14, or to any bond issued to
refund a bond issued on or before such date
(other than a bond to which clause (iii) of
this subparagraph (as in effect before the date
of the enactment of such Act) applies), either
directly or in a series of refundings.''.
(b) Increase in Limitations.--Section 144(a)(4) is amended--
(1) in subparagraph (A)(i), by striking ``$10,000,000'' and
inserting ``$30,000,000'', and
(2) in the heading, by striking ``$10,000,000'' and
inserting ``$30,000,000''.
(c) Adjustment for Inflation.--Section 144(a)(4) is amended by
adding at the end the following new subparagraph:
``(H) Adjustment for inflation.--In the case of any
calendar year after 2021, the $30,000,000 amount in
subparagraph (A) shall be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year, determined by substituting
`calendar year 2020' for `calendar year 2016'
in subparagraph (A)(ii) thereof.
If any amount as increased under the preceding sentence
is not a multiple of $100,000, such amount shall be
rounded to the nearest multiple of $100,000.''.
(d) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
SEC. 135105. EXPANSION OF CERTAIN EXCEPTIONS TO THE PRIVATE ACTIVITY
BOND RULES FOR FIRST-TIME FARMERS.
(a) Increase in Dollar Limitation.--
(1) In general.--Section 147(c)(2)(A) is amended by
striking ``$450,000'' and inserting ``$552,500''.
(2) Repeal of separate lower dollar limitation on used farm
equipment.--Section 147(c)(2) is amended by striking
subparagraph (F) and by redesignating subparagraphs (G) and (H)
as subparagraphs (F) and (G), respectively.
(3) Qualified small issue bond limitation conformed to
increased dollar limitation.--Section 144(a)(11)(A) is amended
by striking ``$250,000'' and inserting ``$552,500''.
(4) Inflation adjustment.--
(A) In general.--Section 147(c)(2)(G), as
redesignated by paragraph (2), is amended--
(i) by striking ``after 2008, the dollar
amount in subparagraph (A) shall be increased''
and inserting ``after 2021, the dollar amounts
in subparagraph (A) and section 144(a)(11)(A)
shall each be increased'', and
(ii) in clause (ii), by striking ``2007''
and inserting ``2020''.
(B) Cross-reference.--Section 144(a)(11) is amended
by adding at the end the following new subparagraph:
``(D) Inflation adjustment.--For inflation
adjustment of dollar amount contained in subparagraph
(A), see section 147(c)(2)(G).''.
(b) Substantial Farmland Determined on Basis of Average Rather Than
Median Farm Size.--Section 147(c)(2)(E) is amended by striking
``median'' and inserting ``average''.
(c) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
SEC. 135106. CERTAIN WATER AND SEWAGE FACILITY BONDS EXEMPT FROM VOLUME
CAP ON PRIVATE ACTIVITY BONDS.
(a) In General.--Section 146(g) is amended by striking ``and'' at
the end of paragraph (3), striking the period at the end of paragraph
(4) and inserting ``, and'', and inserting after paragraph (4) the
following new paragraph:
``(5) any exempt facility bond issued as part of an issue
described in paragraph (4) or (5) of section 142(a) if 95
percent or more of the net proceeds of such issue are to be
used to provide facilities which--
``(A) will be used--
``(i) by a person who was, as of July 1,
2020, engaged in operation of a facility
described in such paragraph, and
``(ii) to provide service within the area
served by such person on such date (or within a
county or city any portion of which is within
such area), or
``(B) will be used by a successor in interest to
such person for the same use and within the same
service area as described in subparagraph (A).''.
(b) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
SEC. 135107. EXEMPT FACILITY BONDS FOR ZERO-EMISSION VEHICLE
INFRASTRUCTURE.
(a) In General.--Section 142 is amended--
(1) in subsection (a)--
(A) in paragraph (14), by striking ``or'' at the
end,
(B) in paragraph (15), by striking the period at
the end and inserting ``, or'', and
(C) by adding at the end the following new
paragraph:
``(16) zero-emission vehicle infrastructure.'', and
(2) by adding at the end the following new subsection:
``(n) Zero-Emission Vehicle Infrastructure.--
``(1) In general.--For purposes of subsection (a)(16), the
term `zero-emission vehicle infrastructure' means any property
(not including a building and its structural components) if
such property is part of a unit which--
``(A) is used to charge or fuel zero-emissions
vehicles,
``(B) is located where the vehicles are charged or
fueled,
``(C) is of a character subject to the allowance
for depreciation (or amortization in lieu of
depreciation),
``(D) is made available for use by members of the
general public,
``(E) accepts payment via a credit card reader,
including a credit card reader that uses contactless
technology, and
``(F) is capable of charging or fueling vehicles
produced by more than one manufacturer (within the
meaning of section 30D(d)(3)).
``(2) Inclusion of utility service connections, etc.--The
term `zero-emission vehicle infrastructure' shall include any
utility service connections, utility panel upgrades, line
extensions and conduit, transformer upgrades, or similar
property, in connection with property meeting the requirements
of paragraph (1).
``(3) Zero-emissions vehicle.--The term `zero-emissions
vehicle' means--
``(A) a zero-emission vehicle as defined in section
88.102-94 of title 40, Code of Federal Regulations, or
``(B) a vehicle that produces zero exhaust
emissions of any criteria pollutant (or precursor
pollutant) or greenhouse gas under any possible
operational modes and conditions.
``(4) Zero-emissions vehicle infrastructure located within
other facilities or projects.--For purposes of subsection (a),
any zero-emission vehicle infrastructure located within--
``(A) a facility or project described in subsection
(a), or
``(B) an area adjacent to a facility or project
described in subsection (a) that primarily serves
vehicles traveling to or from such facility or project,
shall be treated as described in the paragraph in which such
facility or project is described.
``(5) Exception for refueling property for fleet
vehicles.--Subparagraphs (D), (E), and (F) of paragraph (1)
shall not apply to property which is part of a unit which is
used exclusively by fleets of commercial or governmental
vehicles.''.
(b) Effective Date.--The amendments made by this section shall
apply to obligations issued after December 31, 2021.
SEC. 135108. APPLICATION OF DAVIS-BACON ACT REQUIREMENTS WITH RESPECT
TO CERTAIN EXEMPT FACILITY BONDS.
(a) In General.--Section 142(b) is amended by adding at the end the
following new paragraph:
``(3) Application of davis-bacon act requirements with
respect to certain exempt facility bonds.--If any proceeds of
any issue are used for construction, alteration, or repair of
any facility otherwise described in paragraph (4), (5), (15),
or (16) of subsection (a), such facility shall be treated for
purposes of subsection (a) as described in such paragraph only
if each entity that receives such proceeds to conduct such
construction, alteration, or repair agrees to comply with the
provisions of subchapter IV of chapter 31 of title 40, United
States Code with respect to such construction, alteration, or
repair.''.
(b) Effective Date.--The amendment made by this section shall apply
to bonds issued after the date of the enactment of this Act.
Subpart B--Other Provisions Related to Infrastructure Financing
SEC. 135111. CREDIT FOR OPERATIONS AND MAINTENANCE COSTS OF GOVERNMENT-
OWNED BROADBAND.
(a) In General.--Subchapter B of chapter 65, as amended by the
preceding provisions of this Act, is amended by inserting before
section 6432 the following new section:
``SEC. 6431B. CREDIT FOR OPERATIONS AND MAINTENANCE COSTS OF
GOVERNMENT-OWNED BROADBAND.
``(a) In General.--In the case of any eligible governmental entity,
there shall be allowed a credit equal to the applicable percentage of
the qualified broadband expenses paid or incurred by such entity during
the taxable year which credit shall be payable by the Secretary as
provided in subsection (b).
``(b) Payment of Credit.--Upon receipt from an eligible
governmental entity of such information as the Secretary may require
for purposes of carrying out this section, the Secretary shall pay to
such entity the amount of the credit determined under subsection (a)
for the taxable year.
``(c) Limitation.--The amount of qualified broadband expenses taken
into account under this section for any taxable year with respect to
any qualified broadband network shall not exceed the product of $400
multiplied by the number of qualified households subscribed to the
qualified broadband service provided by such network (determined as of
any time during such taxable year).
``(d) Definitions.--For purposes of this section--
``(1) Applicable percentage.--The term `applicable
percentage' means--
``(A) in the case of any taxable year beginning in
2021 through 2026, 30 percent,
``(B) in the case of any taxable year beginning in
2027, 26 percent, and
``(C) in the case of any taxable year beginning in
2028, 24 percent.
``(2) Eligible governmental entity.--The term `eligible
governmental entity' means--
``(A) any State, local, or Indian tribal
government,
``(B) any political subdivision or instrumentality
of any government described in subparagraph (A), and
``(C) any entity wholly owned by one or more
entities described in subparagraph (A) or (B).
For purposes of this paragraph, the term `State' includes any
possession of the United States.
``(3) Qualified broadband expenses.--The term `qualified
broadband expenses' means so much of the amounts paid or
incurred for the operation and maintenance of a qualified
broadband network as are properly allocable to qualified
households subscribed to the qualified broadband service
provided by such network.
``(4) Qualified household.--The term `qualified household'
means a personal residence which--
``(A) is located in a low-income community (as
defined in section 45D(e)), and
``(B) did not have access to qualified broadband
service from the eligible governmental entity
(determined as of the beginning of the taxable year of
such entity).
``(5) Qualified broadband network.--The term `qualified
broadband network' means property owned by an eligible
governmental entity and used for the purpose of providing
qualified broadband service.
``(6) Qualified broadband service.--The term `qualified
broadband service' means fixed, terrestrial broadband service
providing downloads at a speed of at least 25 megabits per
second and uploads at a speed of at least 3 megabits per
second.
``(7) Taxable year.--Except as otherwise provided by the
Secretary, the term `taxable year' means, with respect to any
eligible governmental entity, the fiscal year of such entity.
``(e) Special Rules.--
``(1) Allocations.--For purposes of subsection (d)(3),
amounts shall be treated as properly allocated if allocated
ratably among the subscribers of the qualified broadband
service.
``(2) Denial of double benefit.--Qualified broadband
expenses shall not include any amount which is paid or
reimbursed (directly or indirectly) by any grant from the
Federal Government.
``(f) Regulations.--The Secretary may prescribe such regulations
and other guidance as may be necessary or appropriate to carry out this
section.
``(g) Termination.--No credit shall be allowed under this section
for any taxable year beginning after December 31, 2028.''.
(b) Payments Made Under Section 6431B(b) of Internal Revenue Code
of 1986.--Section 255(h) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C. 905(h)) is amended by inserting:
``Payments made under section 6431B(b) of the Internal Revenue Code of
1986'' after the item related to Payments for Foster Care and
Permanency.
(c) Conforming Amendments.--
(1) Section 1324(b)(2) of title 31, United States Code, as
amended by the preceding provisions of this Act, is amended by
striking ``or 6431A'' and inserting ``6431A, or 6431B''.
(2) The table of sections for subchapter B of chapter 65,
as amended by the preceding provisions of this Act, is amended
by inserting before the item relating to section 6432 the
following new item:
``Sec. 6431B. Credit for operations and maintenance costs of
government-owned broadband.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2020.
PART 2--NEW MARKETS TAX CREDIT
SEC. 135201. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT.
(a) Temporary Limit Increase and Permanent Extension.--Section
45D(f)(1) is amended by striking ``and'' at the end of subparagraph (G)
and by striking subparagraph (H) and inserting the following new
subparagraphs:
``(H) $5,000,000,000 for each of calendar years
2020 and 2021,
``(I) $7,000,000,000 for calendar year 2022,
``(J) $6,000,000,000 for calendar year 2023, and
``(K) $5,000,000,000 for calendar year 2024 and
each calendar year thereafter.''.
(b) Alternative Minimum Tax Relief.--Section 38(c)(4)(B) is
amended--
(1) by redesignating clauses (v) through (xii) as clauses
(vi) through (xiii), respectively, and
(2) by inserting after clause (iv) the following new
clause:
``(v) the credit determined under section
45D, but only with respect to credits
determined with respect to qualified equity
investments (as defined in section 45D(b))
initially made after December 31, 2021,''.
(c) Inflation Adjustment.--Section 45D(f) is amended by adding at
the end the following new paragraph:
``(4) Inflation adjustment.--
``(A) In general.--In the case of any calendar year
beginning after 2024, the dollar amount paragraph
(1)(H) shall be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year, determined by substituting
`calendar year 2023' for `calendar year 2016'
in subparagraph (A)(ii) thereof.
``(B) Rounding rule.--Any increase under
subparagraph (A) which is not a multiple of $1,000,000
shall be rounded to the nearest multiple of
$1,000,000.''.
(d) Conforming Amendment.--Section 45D(f)(3) is amended by striking
the last sentence.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
new markets tax credit limitation determined for calendar years
after 2021.
(2) Alternative minimum tax relief.--The amendments made by
subsection (b) shall apply to credits determined with respect
to qualified equity investments (as defined in section 45D(b)
of the Internal Revenue Code of 1986) initially made after
December 31, 2021.
PART 3--REHABILITATION TAX CREDIT
SEC. 135301. DETERMINATION OF CREDIT PERCENTAGE.
(a) In General.--Section 47(a)(2) is amended by striking ``20
percent'' and inserting ``the applicable percentage''.
(b) Applicable Percentage.--Section 47(a) is amended by adding at
the end the following new paragraph:
``(3) Applicable percentage.--For purposes of this
subsection, the term `applicable percentage' means the
percentage determined in accordance with the following table:
----------------------------------------------------------------------------------------------------------------
``In the case of taxable years beginning: The applicable percentage is:
----------------------------------------------------------------------------------------------------------------
Before 2020.................................. 20 percent
In 2020 through 2025......................... 30 percent
In 2026...................................... 26 percent
In 2027...................................... 23 percent
After 2027................................... 20 percent
----------------------------------------------------------------------------------------------------------------
``(4) Application of percentages to year of expenditure.--
In the case of qualified rehabilitation expenditures with
respect to the qualified rehabilitated building that are paid
or incurred in 2 or more taxable years for which there is a
different applicable percentage under paragraph (3), the
ratable share shall be determined by applying to such
expenditures the applicable percentage corresponding to the
taxable year in which such expenditures were paid or
incurred.''.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after March 31, 2021.
SEC. 135302. INCREASE IN THE REHABILITATION CREDIT FOR CERTAIN SMALL
PROJECTS.
(a) In General.--Section 47 is amended by adding at the end the
following new subsection:
``(e) Special Rule Regarding Certain Smaller Projects.--
``(1) In general.--In the case of any smaller project--
``(A) the applicable percentage determined under
subsection (a)(3) shall be 30 percent, and
``(B) the qualified rehabilitation expenditures
taken into account under this section with respect to
such project shall not exceed $2,500,000.
``(2) Smaller project.--For purposes of this subsection,
the term `smaller project' means the rehabilitation of any
qualified rehabilitated building if--
``(A) the qualified rehabilitation expenditures
taken into account under this section (or which would
be so taken into account but for paragraph (1)(B)) with
respect to such rehabilitation do not exceed
$3,750,000,
``(B) no credit was allowed under this section with
respect to such building to any taxpayer for either of
the 2 taxable years immediately preceding the first
taxable year in which expenditures described in
subparagraph (A) were paid or incurred, and
``(C) the taxpayer elects (at such time and manner
as the Secretary may provide) to have this subsection
apply with respect to such rehabilitation.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2021.
SEC. 135303. MODIFICATION OF DEFINITION OF SUBSTANTIALLY REHABILITATED.
(a) In General.--Section 47(c)(1)(B)(i)(I) is amended by inserting
``50 percent of'' before ``the adjusted basis''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to determinations with respect to 24-month periods (referred to
in clause (i) of section 47(c)(1)(B) of the Internal Revenue Code of
1986) and 60-month periods (referred to in clause (ii) of such section)
which end after December 31, 2021.
SEC. 135304. ELIMINATION OF REHABILITATION CREDIT BASIS ADJUSTMENT.
(a) In General.--Section 50(c) is amended by adding at the end the
following new paragraph:
``(6) Exception for rehabilitation credit.--In the case of
the rehabilitation credit, paragraph (1) shall not apply.''.
(b) Treatment in Case of Credit Allowed to Lessee.--Section 50(d)
is amended by adding at the end the following: ``In the case of the
rehabilitation credit, paragraph (5)(B) of the section 48(d) referred
to in paragraph (5) of this subsection shall not apply.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2022.
SEC. 135305. MODIFICATIONS REGARDING CERTAIN TAX-EXEMPT USE PROPERTY.
(a) In General.--Section 47(c)(2)(B)(v) is amended by adding at the
end the following new subclause:
``(III) Disqualified lease rules to
apply only in case of government
entity.--For purposes of subclause (I),
except in the case of a tax-exempt
entity described in section
168(h)(2)(A)(i) (determined without
regard to the last sentence of section
168(h)(2)(A)), the determination of
whether property is tax-exempt use
property shall be made under section
168(h) without regard to whether the
property is leased in a disqualified
lease (as defined in section
168(h)(1)(B)(ii)).''.
(b) Effective Date.--The amendments made by this section shall
apply to leases entered into after December 31, 2021.
SEC. 135306. QUALIFICATION OF REHABILITATION EXPENDITURES FOR PUBLIC
SCHOOL BUILDINGS FOR REHABILITATION CREDIT.
(a) In General.--Section 47(c)(2)(B)(v), as amended by the
preceding provisions of this Act, is amended by adding at the end the
following new subclause:
``(IV) Clause not to apply to
public schools.--This clause shall not
apply in the case of the rehabilitation
of any building which was used as a
qualified public educational facility
(as defined in section 142(k)(1),
determined without regard to
subparagraph (B) thereof) at any time
during the 5-year period ending on the
date that such rehabilitation begins
and which is used as such a facility
immediately after such
rehabilitation.''.
(b) Report.--Not later than the date which is 5 years after the
date of the enactment of this Act, the Secretary of the Treasury, after
consultation with the heads of appropriate Federal agencies, shall
report to Congress on the effects resulting from the amendment made by
subsection (a), including--
(1) the number of qualified public education facilities
rehabilitated (stated separately with respect to each State)
and the number of students using such facilities (stated
separately with respect to each such State),
(2) the number of qualified public education facilities
rehabilitated in low income communities (as section 45D(e)(1)
of the Internal Revenue Code of 1986) and the number of
students using such facilities,
(3) the amount of qualified rehabilitation expenditures for
each qualified public education facility rehabilitated, and
(4) and any other data determined by the Secretary to be
useful in evaluating the impact of such amendment.
(c) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2021.
PART 4--DISASTER AND RESILIENCY
SEC. 135401. EXCLUSION OF AMOUNTS RECEIVED FROM STATE-BASED CATASTROPHE
LOSS MITIGATION PROGRAMS.
(a) In General.--Section 139 is amended by redesignating subsection
(h) as subsection (i) and by inserting after subsection (g) the
following new subsection:
``(h) State-Based Catastrophe Loss Mitigation Programs.--
``(1) In general.--Gross income shall not include any
amount received by an individual as a qualified catastrophe
mitigation payment under a program established by a State, or a
political subdivision or instrumentality thereof, for the
purpose of making such payments.
``(2) Qualified catastrophe mitigation payment.--For
purposes of this section, the term `qualified catastrophe
mitigation payment' means any amount which is received by an
individual to make improvements to such individual's residence
for the sole purpose of reducing the damage that would be done
to such residence by a windstorm, earthquake, or wildfire.
``(3) No increase in basis.--Rules similar to the rules of
subsection (g)(3) shall apply in the case of this
subsection.''.
(b) Conforming Amendments.--
(1) Section 139(d) is amended by striking ``and qualified''
and inserting ``, qualified catastrophe mitigation payments,
and qualified''.
(2) Section 139(i) (as redesignated by subsection (a)) is
amended by striking ``or qualified'' and inserting ``,
qualified catastrophe mitigation payment, or qualified''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2020.
SEC. 135402. REPEAL OF TEMPORARY LIMITATION ON PERSONAL CASUALTY
LOSSES.
(a) In General.--Section 165(h) is amended by striking paragraph
(5).
(b) Extension of Period of Limitation on Filing Claim in Certain
Circumstances.--In the case of a claim for credit or refund which is
properly allocable to a loss which is--
(1) deductible under section 165(a) of the Internal Revenue
Code of 1986,
(2) described in Revenue Procedure 2017-60 (as modified by
Revenue Procedure 2018-14), and
(3) claimed for a taxable year beginning after December 31,
2016,
the period of limitation prescribed in section 6511 of the Internal
Revenue Code of 1986 for the filing of such claim shall be treated as
not expiring earlier than the date that is 1 year after the date of the
enactment of this Act.
(c) Effective Date.--The amendment made by subsection (a) shall
apply to losses incurred in taxable years beginning after December 31,
2017.
(d) Regulations.--The Secretary of the Treasury (or the Secretary's
delegate) shall issue such regulations or other guidance as are
necessary to implement the amendment made by this section, including
regulations or guidance consistent with Revenue Procedure 2017-60 (as
so modified).
SEC. 135403. CREDIT FOR QUALIFIED WILDFIRE MITIGATION EXPENDITURES.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
is amended by inserting after section 27 the following new section:
``SEC. 28. QUALIFIED WILDFIRE MITIGATION EXPENDITURES.
``(a) In General.--There shall be allowed as a credit against the
tax imposed by this chapter for the taxable year an amount equal to 30
percent of the qualified wildfire mitigation expenditures paid or
incurred by the taxpayer during such taxable year with respect to real
property owned or leased by the taxpayer.
``(b) Qualified Wildfire Mitigation Expenditures.--For purposes of
this section--
``(1) In general.--The term `qualified wildfire mitigation
expenditures' means any specified wildfire mitigation
expenditure made pursuant to a qualified State wildfire
mitigation program of a State which requires expenditures for
wildfire mitigation to be paid both by the taxpayer and such
State. Such term shall not include any item of expenditure
unless the ratio of the State's expenditure for such item to
the sum of the State's and taxpayer's expenditures for such
item is not less than 25 percent.
``(2) Specified wildfire mitigation expenditure.--The term
`specified wildfire mitigation expenditure' means, with respect
to any real property owned or leased by the taxpayer, any
amount paid or incurred to reduce the risk of wildfire by
removing accumulations of vegetation (including establishing,
expanding, or maintaining fuel breaks to serve as fire breaks)
on such real property.
``(3) Qualified state wildfire mitigation program.--The
term `qualified State wildfire mitigation program' means any
program of a State the primary purpose of which is to mitigate
the risk of wildfires in such State.
``(4) Treatment of reimbursements.--Any amount originally
paid or incurred by the taxpayer which is reimbursed by a State
under a qualified wildfire mitigation program of such State
shall be treated as paid by such State (and not by such
taxpayer).
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without regard
to this subsection) that is attributable to expenditures made
in the ordinary course of the taxpayer's trade or business (or,
in the case of expenditures made by a State, would have been
expenditures made in the ordinary course of the taxpayer's
trade or business if made by the taxpayer) shall be treated as
a credit listed in section 38(b) for taxable year (and not
allowed under subsection (a)).
``(2) Personal credit.--For purposes of this title, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall be
treated as a credit allowable under subpart A for such taxable
year.
``(d) Reduction of Credit Percentage Where Taxpayer Expenditures
Less Than 30 Percent.--
``(1) In general.--If the expenditure percentage with
respect to any item of qualified wildfire mitigation
expenditure is less than 30 percent, subsection (a) shall be
applied by substituting `the expenditure percentage' for `30
percent' with respect to such item of expenditure.
``(2) Expenditure percentage.--For purposes of this
section, the term `expenditure percentage' means, with respect
to any item of qualified wildfire mitigation expenditure any
portion of which is paid or incurred by a State, the ratio
(expressed as a percentage) of--
``(A) the taxpayer's expenditure for such item,
divided by
``(B) the sum of the taxpayer's and such State's
expenditures for such item.
``(e) Special Rules.--
``(1) Treatment of expenditures related to marketable
timber.--An expenditure shall not be taken into account for
purposes of this section (whether made by the taxpayer or a
State pursuant to a qualified State wildfire mitigation program
of such State) if such expenditure is properly allocable to
timber which is sold or exchanged by the taxpayer. The
preceding sentence shall not apply to the extent that such
amount exceeds the gain on such sale or exchange.
``(2) Basis reduction.--For purposes of this subtitle, if
the basis of any property would (but for this paragraph) be
determined by taking into account any qualified wildfire
mitigation expenditure, the basis of such property shall be
reduced by the amount of the credit allowed under subsection
(a) with respect to such expenditure (determined without regard
to subsection (c)).
``(3) Denial of double benefit.--The amount of any
deduction or other credit allowable under this chapter for any
expenditure for which a credit is allowable under subsection
(a) shall be reduced by the amount of credit allowed under such
subsection for such expenditure (determined without regard to
subsection (c)).''.
(b) Conforming Amendments.--
(1) Section 38(b), as amended by the preceding provisions
of this Act, is amended by striking ``plus'' at the end of
paragraph (33), by striking the period at the end of paragraph
(34) and inserting ``, plus'', and by adding at the end the
following new paragraph:
``(35) the portion of the qualified wildfire mitigation
expenditures credit to which section 28(c)(1) applies.''.
(2) Section 1016(a) is amended by redesignating paragraphs
(35) through (38) as paragraphs (36) through (39),
respectively, and by inserting after paragraph (34) the
following new paragraph:
``(35) to the extent provided in section 28(e)(2),''.
(3) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 27 the following new item:
``Sec. 28. Qualified wildfire mitigation expenditures.''.
(c) Effective Date.--The amendments made by this section shall
apply to expenditures paid or incurred after the date of the enactment
of this Act, in taxable years ending after such date.
PART 5--HOUSING
Subpart A--Low Income Housing Tax Credit
SEC. 135501. INCREASES IN STATE ALLOCATIONS.
(a) In General.--Section 42(h)(3)(I) is amended to read as follows:
``(I) Increase in state housing credit ceiling for
2022 through 2028.--
``(i) In general.--In the case of calendar
years 2022 through 2028, the dollar amounts
under subclauses (I) and (II) of subparagraph
(C)(ii) for any such calendar shall be
determined under clause (ii) and in accordance
with the following table:
------------------------------------------------------------------------
The The
subclause subclause
``In the case of calendar year: (I) amount (II) amount
shall be: shall be:
------------------------------------------------------------------------
2022.......................................... $3.22 $3,711,575
2023.......................................... $3.70 $4,269,471
2024.......................................... $4.25 $4,901,620
2025.......................................... $4.88 $5,632,880
------------------------------------------------------------------------
``(ii) Inflation adjustment for 2026, 2027,
and 2028.--In the case of calendar years 2026,
2027, and 2028, the subclause (I) and (II)
dollar amounts shall be the respective dollar
amounts corresponding to calendar year 2025 in
the table under clause (i) each increased by an
amount equal to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for such calendar year by
substituting `calendar year 2025' for
`calendar year 2016' in paragraph
(A)(ii) thereof.
Any increase under this clause shall be rounded
to the nearest cent in the case of the
subclause (I) amount and the nearest dollar in
the case of the subclause (II) amount.''.
(b) Effective Date.--The amendments made by this section shall
apply to calendar years beginning after December 31, 2021.
SEC. 135502. TAX-EXEMPT BOND FINANCING REQUIREMENT.
(a) In General.--Section 42(h)(4)(B) is amended by adding at the
end the following: ``The preceding sentence shall be applied by
substituting `25 percent' for `50 percent' in the case of any building
which is financed by any obligation issued in calendar year 2022, 2023,
2024, 2025, 2026, 2027, or 2028 (and not by any obligation on which the
application of this subparagraph is based during any taxable year
beginning during calendar year 2019, 2020, or 2021).''.
(b) Effective Date.--The amendment made by this section shall apply
to buildings placed in service in taxable years beginning after
December 31, 2021.
SEC. 135503. BUILDINGS DESIGNATED TO SERVE EXTREMELY LOW-INCOME
HOUSEHOLDS.
(a) Reserved State Allocation.--
(1) In general.--Section 42(h) is amended--
(A) by redesignating paragraphs (6), (7), and (8)
as paragraphs (7), (8), and (9), respectively, and
(B) by inserting after paragraph (5) the following
new paragraph:
``(6) Portion of state ceiling set-aside for projects
designated to serve extremely low-income households.--
``(A) In general.--Not more than 90 percent of the
portion of the State housing credit ceiling amount
described in paragraph (3)(C)(ii) for any State for any
calendar year shall be allocated to buildings other
than buildings described in subparagraph (B).
``(B) Buildings described.--A building is described
in this subparagraph if 20 percent or more of the
residential units in such building are rent-restricted
(determined as if the imputed income limitation
applicable to such units were 30 percent of area median
gross income) and are designated by the taxpayer for
occupancy by households the aggregate household income
of which does not exceed the greater of--
``(i) 30 percent of area median gross
income, or
``(ii) 100 percent of an amount equal to
the Federal poverty line (within the meaning of
section 36B(d)(3)).
``(C) State may not override set-aside.--Nothing in
subparagraph (F) of paragraph (3) shall be construed to
permit a State not to comply with subparagraph (A) of
this paragraph.
``(D) Termination.--This paragraph shall not apply
to allocations after December 31, 2031.''.
(2) Conforming amendment.--Section 42(b)(4)(C) is amended
by striking ``(h)(7)'' and inserting ``(h)(8)''.
(b) Increase in Credit.--Paragraph (5) of section 42(d) is amended
by adding at the end the following new subparagraph:
``(C) Increase in credit for projects designated to
serve extremely low-income households.--
``(i) In general.--In the case of any
building--
``(I) which is described in
subsection (h)(6)(B), and
``(II) which is designated by the
housing credit agency as requiring the
increase in credit under this
subparagraph in order for such building
to be financially feasible as part of a
qualified low-income housing project,
subparagraph (B) shall not apply to the portion
of such building which is comprised of such
units, and the eligible basis of such portion
of the building shall be 150 percent of such
basis determined without regard to this
subparagraph.
``(ii) Allocation rules applicable to
projects to which clause (i) applies.--
``(I) State housing credit
ceiling.--For any calendar year, the
housing credit agency shall not
allocate more than 15 percent of the
portion of the State housing credit
ceiling amount described in subsection
(h)(3)(C)(ii) to buildings to which
clause (i) applies, and
``(II) Private activity bond volume
cap.--In the case of projects financed
by tax-exempt bonds as described in
subsection (h)(4), for any calendar
year, the State shall not issue more
than 10 percent of the private activity
bond volume cap as described in section
146(d)(1) to buildings to which clause
(i) applies.
``(iii) Termination.--This subparagraph
shall not apply to allocations after December
31, 2031.''.
(c) Effective Date.--The amendments made by this section shall
apply to allocations, and determinations, of housing credit dollar
amount after December 31, 2021.
SEC. 135504. INCLUSION OF RURAL AREAS AS DIFFICULT DEVELOPMENT AREAS.
(a) In General.--Subclause (I) of section 42(d)(5)(B)(iii) is
amended by inserting before the period the following: ``, and any rural
area''.
(b) Rural Area.--Clause (iii) of section 42(d)(5)(B) is amended by
redesignating subclause (II) as subclause (III) and by inserting after
subclause (I) the following new subclause:
``(II) Rural area.--For purposes of
subclause (I), the term `rural area'
means any non-metropolitan area, or any
rural area as defined by section 520 of
the Housing Act of 1949, which is
identified by the qualified allocation
plan under subsection (m)(1)(B).''.
(c) Effective Date.--The amendments made by this section shall
apply to buildings placed in service after December 31, 2021.
SEC. 135505. REPEAL OF QUALIFIED CONTRACT OPTION.
(a) Termination of Option for Certain Buildings.--
(1) In general.--Subclause (II) of section 42(h)(7)(E)(i),
as redesignated by section 135503, is amended by inserting ``in
the case of a building described in clause (iii),'' before ``on
the last day''.
(2) Buildings described.--Subparagraph (E) of section
42(h)(7), as so redesignated, is amended by adding at the end
the following new clause:
``(iii) Buildings described.--A building
described in this clause is a building--
``(I) which received its allocation
of housing credit dollar amount before
January 1, 2022, or
``(II) in the case of a building
any portion of which is financed as
described in paragraph (4), which
received before January 1, 2022, a
determination from the issuer of the
tax-exempt bonds or the housing credit
agency that the building is eligible to
receive an allocation of housing credit
dollar amount under the rules of
paragraphs (1) and (2) of subsection
(m).''.
(b) Rules Relating to Existing Projects.--Subparagraph (F) of
section 42(h)(7), as redesignated by section 135503, is amended by
striking ``the nonlow-income portion'' and all that follows and
inserting ``the nonlow-income portion and the low-income portion of the
building for fair market value (determined by the housing credit agency
by taking into account the rent restrictions required for the low-
income portion of the building to continue to meet the standards of
paragraphs (1) and (2) of subsection (g)). The Secretary shall
prescribe such regulations as may be necessary or appropriate to carry
out this paragraph.''.
(c) Conforming Amendments.--
(1) Paragraph (7) of section 42(h), as redesignated by
section 135503, is amended by striking subparagraph (G) and by
redesignating subparagraphs (H), (I), (J), and (K) as
subparagraphs (G), (H), (I), and (J), respectively.
(2) Subclause (II) of section 42(h)(7)(E)(i), as so
redesignated and as amended by subsection (a), is further
amended by striking ``subparagraph (I)'' and inserting
``subparagraph (H)''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
of the enactment of this Act.
(2) Subsection (b).--The amendments made by subsection (b)
shall apply to buildings with respect to which a written
request described in section 42(h)(7)(H) of the Internal
Revenue Code of 1986, as redesignated by section 135503 and
subsection (c), is submitted after the date of the enactment of
this Act.
SEC. 135506. MODIFICATION AND CLARIFICATION OF RIGHTS RELATING TO
BUILDING PURCHASE.
(a) Modification of Right of First Refusal.--
(1) In general.--Subparagraph (A) of section 42(i)(7) is
amended by striking ``a right of 1st refusal'' and inserting
``an option''.
(2) Conforming amendment.--The heading of paragraph (7) of
section 42(i) is amended by striking ``right of 1st refusal''
and inserting ``option''.
(b) Clarification With Respect to Right of First Refusal and
Purchase Options.--
(1) Purchase of partnership interest.--Subparagraph (A) of
section 42(i)(7), as amended by subsection (a), is amended by
striking ``the property'' and inserting ``the property or all
of the partnership interests (other than interests of the
person exercising such option or a related party thereto
(within the meaning of section 267(b) or 707(b)(1))) relating
to the property''.
(2) Property includes assets relating to the building.--
Paragraph (7) of section 42(i) is amended by adding at the end
the following new subparagraph:
``(C) Property.--For purposes of subparagraph (A),
the term `property' may include all or any of the
assets held for the development, operation, or
maintenance of a building.''.
(3) Exercise of right of first refusal and purchase
options.--Subparagraph (A) of section 42(i)(7), as amended by
subsection (a) and paragraph (1)(A), is amended by adding at
the end the following: ``For purposes of determining whether an
option, including a right of first refusal, to purchase
property or partnership interests holding (directly or
indirectly) such property is described in the preceding
sentence--
``(i) such option or right of first refusal
shall be exercisable with or without the
approval of any owner of the project (including
any partner, member, or affiliated organization
of such an owner), and
``(ii) a right of first refusal shall be
exercisable in response to any offer to
purchase the property or partnership interests,
including an offer by a related party.''.
(c) Conforming Amendments.--Subparagraph (B) of section 42(i)(7) is
amended by striking ``the sum of'' and all that follows and inserting
``the principal amount of outstanding indebtedness secured by the
building (other than indebtedness incurred within the 5-year period
ending on the date of the sale to the tenants). In the case of a
purchase of a partnership interest, the minimum purchase price is an
amount not less than such interest's ratable share of the amount
determined under the first sentence of this subparagraph.''.
(d) Effective Dates.--
(1) Modification of right of first refusal.--The amendments
made by subsections (a) and (c) shall apply to agreements
entered into or amended after the date of the enactment of this
Act.
(2) Clarification.--The amendments made by subsection (b)
shall apply to agreements among the owners of the project
(including partners, members, and their affiliated
organizations) and persons described in section 42(i)(7)(A) of
the Internal Revenue Code of 1986 entered into before, on, or
after the date of the enactment of this Act.
(3) No effect on agreements.--None of the amendments made
by this section is intended to supersede express language in
any agreement with respect to the terms of a right of first
refusal or option permitted by section 42(i)(7) of the Internal
Revenue Code of 1986 in effect on the date of the enactment of
this Act.
SEC. 135507. INCREASE IN CREDIT FOR BOND-FINANCED PROJECTS DESIGNATED
BY HOUSING CREDIT AGENCY.
(a) In General.--Section 42(d)(5)(B)(v) is amended by striking
``The preceding sentence'' and inserting ``In the case of
determinations of housing credit dollar amount after December 31, 2028,
the preceding sentence''.
(b) Effective Date.--The amendments made by this section shall
apply to buildings which receive a determination of housing credit
dollar amount pursuant to section 42(m)(2)(D) of the Internal Revenue
Code of 1986 after the date of the enactment of this Act.
Subpart B--Neighborhood Homes Investment Act
SEC. 135511. NEIGHBORHOOD HOMES CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
is amended by inserting after section 42 the following new section:
``SEC. 42A. NEIGHBORHOOD HOMES CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, the
neighborhood homes credit determined under this section for the taxable
year is, with respect to each qualified residence sold by the taxpayer
during such taxable year in an affordable sale, the lesser of--
``(1) the excess (if any) of--
``(A) the reasonable development costs paid or
incurred by the taxpayer with respect to such qualified
residence, over
``(B) the sale price of such qualified residence
(reduced by any reasonable expenses paid or incurred by
the taxpayer in connection with such sale), or
``(2) 35 percent of the lesser of--
``(A) the eligible development costs paid or
incurred by the taxpayer with respect to such qualified
residence, or
``(B) 80 percent of the national median sale price
for new homes (as determined pursuant to the most
recent census data available as of the date on which
the neighborhood homes credit agency makes an
allocation for the qualified project).
``(b) Development Costs.--For purposes of this section--
``(1) Reasonable development costs.--
``(A) In general.--The term `reasonable development
costs' means amounts paid or incurred for the
acquisition of buildings and land, construction,
substantial rehabilitation, demolition of structures,
or environmental remediation, to the extent that the
neighborhood homes credit agency determines that such
amounts meet the standards specified pursuant to
subsection (f)(1)(C) (as of the date on which
construction or substantial rehabilitation is
substantially complete, as determined by such agency)
and are necessary to ensure the financial feasibility
of such qualified residence.
``(B) Considerations in making determination.--In
making the determination under subparagraph (A), the
neighborhood homes credit agency shall consider--
``(i) the sources and uses of funds and the
total financing,
``(ii) any proceeds or receipts generated
or expected to be generated by reason of tax
benefits, and
``(iii) the reasonableness of the
developmental costs and fees.
``(2) Eligible development costs.--The term `eligible
development costs' means the amount which would be reasonable
development costs if the amounts taken into account as paid or
incurred for the acquisition of buildings and land did not
exceed 75 percent of such costs determined without regard to
any amount paid or incurred for the acquisition of buildings
and land.
``(3) Substantial rehabilitation.--The term `substantial
rehabilitation' means amounts paid or incurred for
rehabilitation of a qualified residence if such amounts exceed
the greater of--
``(A) $20,000, or
``(B) 20 percent of the amounts paid or incurred by
the taxpayer for the acquisition of buildings and land
with respect to such qualified residence.
``(4) Construction and rehabilitation only after allocation
taken into account.--
``(A) In general.--The terms `reasonable
development costs' and `eligible development costs'
shall not include any amount paid or incurred before
the date on which an allocation is made to the taxpayer
under subsection (e) with respect to the qualified
project of which the qualified residence is part unless
such amount is paid or incurred for the acquisition of
buildings or land.
``(B) Land and building acquisition costs.--Amounts
paid or incurred for the acquisition of buildings or
land shall be included under paragraph (A) only if paid
or incurred not more than 3 years before the date on
which the allocation referred to in subparagraph (A) is
made. If the taxpayer acquired any building or land
from an entity (or any related party to such entity)
that holds an ownership interest in the taxpayer, then
such entity must also have acquired such property
within such 3-year period, and the acquisition cost
included under subparagraph (A) with respect to the
taxpayer shall not exceed the amount such entity paid
or incurred to acquire such property.
``(c) Qualified Residence.--For purposes of this section--
``(1) In general.--The term `qualified residence' means a
residence that--
``(A) is real property affixed on a permanent
foundation,
``(B) is--
``(i) a house which is comprised of 4 or
fewer residential units,
``(ii) a condominium unit, or
``(iii) a house or an apartment owned by a
cooperative housing corporation (as defined in
section 216(b)),
``(C) is part of a qualified project with respect
to the neighborhood homes credit agency has made an
allocation under subsection (e), and
``(D) is located in a qualified census tract
(determined as of the date of such allocation).
``(2) Qualified census tract.--
``(A) In general.--The term `qualified census
tract' means a census tract--
``(i) which--
``(I) has a median family income
which does not exceed 80 percent of the
median family income for the applicable
area,
``(II) has a poverty rate that is
not less than 130 percent of the
poverty rate of the applicable area,
and
``(III) has a median value for
owner-occupied homes that does not
exceed the median value for owner-
occupied homes in the applicable area,
``(ii) which--
``(I) is located in a city which
has a population of not less than
50,000 and such city has a poverty rate
that is not less than 150 percent of
the poverty rate of the applicable
area,
``(II) has a median family income
which does not exceed the median family
income for the applicable area, and
``(III) has a median value for
owner-occupied homes that does not
exceed 80 percent of the median value
for owner-occupied homes in the
applicable area,
``(iii) which--
``(I) is located in a
nonmetropolitan county,
``(II) has a median family income
which does not exceed the median family
income for the applicable area, and
``(III) has been designated by a
neighborhood homes credit agency under
this clause, or
``(iv) which is not otherwise a qualified
census tract and is located in a disaster area
(as defined in section 7508A(d)(3)), but only
with respect to credits allocated in any period
during which the President of the United States
has determined that such area warrants
individual or individual and public assistance
by the Federal Government under the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act.
``(B) Applicable area.--The term `applicable area'
means--
``(i) in the case of a metropolitan census
tract, the metropolitan area in which such
census tract is located, and
``(ii) in the case of a census tract other
than a census tract described in clause (i),
the State.
``(d) Affordable Sale.--For purposes of this section--
``(1) In general.--The term `affordable sale' means a sale
to a qualified homeowner of a qualified residence that the
neighborhood homes credit agency certifies as meeting the
standards promulgated under subsection (f)(1)(D) for a price
that does not exceed--
``(A) in the case of any qualified residence not
described in subparagraph (B), (C), or (D), the amount
equal to the product of 4 multiplied by the median
family income for the applicable area (as determined
pursuant to the most recent census data available as of
the date of the contract for such sale),
``(B) in the case of a house comprised of 2
residential units, 125 percent of the amount described
in subparagraph (A),
``(C) in the case of a house comprised of 3
residential units, 150 percent of the amount described
in subparagraph (A), or
``(D) in the case of a house comprised of 4
residential units, 175 percent of the amount described
in subparagraph (A).
``(2) Qualified homeowner.--The term `qualified homeowner'
means, with respect to a qualified residence, an individual--
``(A) who owns and uses such qualified residence as
the principal residence of such individual, and
``(B) whose family income (determined as of the
date that a binding contract for the affordable sale of
such residence is entered into) is 140 percent or less
of the median family income for the applicable area in
which the qualified residence is located.
``(e) Credit Ceiling and Allocations.--
``(1) Credit limited based on allocations to qualified
projects.--
``(A) In general.--The credit allowed under
subsection (a) to any taxpayer for any taxable year
with respect to one or more qualified residences which
are part of the same qualified project shall not exceed
the excess (if any) of--
``(i) the amount allocated by the
neighborhood homes credit agency under this
paragraph to such taxpayer with respect to such
qualified project, over
``(ii) the aggregate amount of credit
allowed under subsection (a) to such taxpayer
with respect to qualified residences which are
a part of such qualified project for all prior
taxable years.
``(B) Deadline for completion.--No credit shall be
allowed under subsection (a) with respect to any
qualified residence unless the affordable sale of such
residence is during the 5-year period beginning on the
date of the allocation to the qualified project of
which such residence is a part (or, in the case of a
qualified residence to which subsection (i) applies,
the rehabilitation of such residence is completed
during such 5-year period).
``(2) Limitations on allocations to qualified projects.--
``(A) Allocations limited by state neighborhood
homes credit ceiling.--The aggregate amount allocated
to taxpayers with respect to qualified projects by the
neighborhood homes credit agency of any State for any
calendar year shall not exceed the State neighborhood
homes credit amount of such State for such calendar
year.
``(B) Set-aside for certain projects involving
qualified nonprofit organizations.--Rules similar to
the rules of section 42(h)(5) shall apply for purposes
of this section.
``(3) Determination of state neighborhood homes credit
ceiling.--
``(A) In general.--The State neighborhood homes
credit amount for a State for a calendar year is an
amount equal to the sum of--
``(i) the greater of--
``(I) the product of $6, multiplied
by the State population (determined in
accordance with section 146(j)), or
``(II) $8,000,000, and
``(ii) any amount previously allocated to
any taxpayer with respect to any qualified
project by the neighborhood homes credit agency
of such State which can no longer be allocated
to any qualified residence because the 5-year
period described in paragraph (1)(B) expires
during calendar year.
``(B) 3-year carryforward of unused limitation.--
The State neighborhood homes credit amount for a State
for a calendar year shall be increased by the excess
(if any) of the State neighborhood homes credit amount
for such State for the preceding calendar year over the
aggregate amount allocated by the neighborhood homes
credit agency of such State during such preceding
calendar year. Any amount carried forward under the
preceding sentence shall not be carried past the third
calendar year after the calendar year in which such
credit amount originally arose, determined on a first-
in, first-out basis.
``(f) Responsibilities of Neighborhood Homes Credit Agencies.--
``(1) In general.--Notwithstanding subsection (e), the
State neighborhood homes credit dollar amount shall be zero for
a calendar year unless the neighborhood homes credit agency of
the State--
``(A) allocates such amount pursuant to a qualified
allocation plan of the neighborhood homes credit
agency,
``(B) allocates not more than 20 percent of amounts
allocated in the previous year (or for allocations made
in 2022, not more than 20 percent of the neighborhood
homes credit ceiling for such year) to projects with
respect to qualified residences which--
``(i) are located in census tracts
described in subsection (c)(2)(A)(iii),
(c)(2)(A)(iv), (i)(5), or
``(ii) are not located in a qualified
census tract but meet the requirements of
(i)(8),
``(C) promulgates standards with respect to
reasonable qualified development costs and fees,
``(D) promulgates standards with respect to
construction quality,
``(E) in the case of any neighborhood homes credit
agency which makes an allocation to a qualified project
which includes any qualified residence to which
subsection (i) applies, promulgates standards with
respect to protecting the owners of such residences,
including the capacity of such owners to pay
rehabilitation costs not covered by the credit provided
by this section and providing for the disclosure to
such owners of their rights and responsibilities with
respect to the rehabilitation of such residences, and
``(F) submits to the Secretary (at such time and in
such manner as the Secretary may prescribe) an annual
report specifying--
``(i) the amount of the neighborhood homes
credits allocated to each qualified project for
the previous year,
``(ii) with respect to each qualified
residence completed in the preceding calendar
year--
``(I) the census tract in which
such qualified residence is located,
``(II) with respect to the
qualified project that includes such
qualified residence, the year in which
such project received an allocation
under this section,
``(III) whether such qualified
residence was new, substantially
rehabilitated and sold to a qualified
homeowner, or substantially
rehabilitated pursuant to subsection
(i),
``(IV) the eligible development
costs of such qualified residence,
``(V) the amount of the
neighborhood homes credit with respect
to such qualified residence,
``(VI) the sales price of such
qualified residence, if applicable, and
``(VII) the family income of the
qualified homeowner (expressed as a
percentage of the applicable area
median family income for the location
of the qualified residence), and
``(iii) such other information as the
Secretary may require.
``(2) Qualified allocation plan.--For purposes of this
subsection, the term `qualified allocation plan' means any plan
which--
``(A) sets forth the selection criteria to be used
to prioritize qualified projects for allocations of
State neighborhood homes credit dollar amounts,
including--
``(i) the need for new or substantially
rehabilitated owner-occupied homes in the area
addressed by the project,
``(ii) the expected contribution of the
project to neighborhood stability and
revitalization, including the impact on
neighborhood residents,
``(iii) the capability and prior
performance of the project sponsor, and
``(iv) the likelihood the project will
result in long-term homeownership,
``(B) has been made available for public comment,
and
``(C) provides a procedure that the neighborhood
homes credit agency (or any agent or contractor of such
agency) shall follow for purposes of--
``(i) identifying noncompliance with any
provisions of this section, and
``(ii) notifying the Internal Revenue
Service of any such noncompliance of which the
agency becomes aware.
``(g) Repayment.--
``(1) In general.--
``(A) Sold during 5-year period.--If a qualified
residence is sold during the 5-year period beginning
immediately after the affordable sale of such qualified
residence referred to in subsection (a), the seller
(with respect to the sale during such 5-year period)
shall transfer an amount equal to the repayment amount
to the relevant neighborhood homes credit agency.
``(B) Use of repayments.--A neighborhood homes
credit agency shall use any amount received pursuant to
subparagraph (A) only for purposes of qualified
projects.
``(2) Repayment amount.--For purposes of paragraph (1)(A),
the repayment amount is an amount equal to 50 percent of the
gain from the sale to which the repayment relates, reduced by
20 percent for each year of the 5-year period referred to in
paragraph (1)(A) which ends before the date of such sale.
``(3) Lien for repayment amount.--A neighborhood homes
credit agency receiving an allocation under this section shall
place a lien on each qualified residence that is built or
rehabilitated as part of a qualified project for an amount such
agency deems necessary to ensure potential repayment pursuant
to paragraph (1)(A).
``(4) Denial of deductions if converted to rental
housing.--If, during the 5-year period described in paragraph
(1), an individual who owns a qualified residence fails to use
such qualified residence as such individual's principal
residence for any period of time, no deduction shall be allowed
for expenses paid or incurred by such individual with respect
to renting, during such period of time, such qualified
residence.
``(5) Waiver.--The neighborhood homes credit agency may
waive the repayment required under paragraph (1)(A) in the case
of homeowner experiencing a hardship.
``(h) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Neighborhood homes credit agency.--The term
`neighborhood homes credit agency' means the agency designated
by the governor of a State as the neighborhood homes credit
agency of the State.
``(2) Qualified project.--The term `qualified project'
means a project that a neighborhood homes credit agency
certifies will build or substantially rehabilitate one or more
qualified residences.
``(3) Determinations of family income.--Rules similar to
the rules of section 143(f)(2) shall apply for purposes of this
section.
``(4) Possessions treated as states.--The term `State'
includes the District of Columbia and the possessions of the
United States.
``(5) Special rules related to condominiums and cooperative
housing corporations.--
``(A) Determination of development costs.--In the
case of a qualified residence described in clause (ii)
or (iii) of subsection (c)(1)(A), the reasonable
development costs and eligible development costs of
such qualified residence shall be an amount equal to
such costs, respectively, of the entire condominium or
cooperative housing property in which such qualified
residence is located, multiplied by a fraction--
``(i) the numerator of which is the total
floor space of such qualified residence, and
``(ii) the denominator of which is the
total floor space of all residences within such
property.
``(B) Tenant-stockholders of cooperative housing
corporations treated as owners.--In the case of a
cooperative housing corporation (as such term is
defined in section 216(b)), a tenant-stockholder shall
be treated as owning the house or apartment which such
person is entitled to occupy.
``(6) Related party sales not treated as affordable
sales.--
``(A) In general.--A sale between related persons
shall not be treated as an affordable sale.
``(B) Related persons.--For purposes of this
paragraph, a person (in this subparagraph referred to
as the `related person') is related to any person if
the related person bears a relationship to such person
specified in section 267(b) or 707(b)(1), or the
related person and such person are engaged in trades or
businesses under common control (within the meaning of
subsections (a) and (b) of section 52). For purposes of
the preceding sentence, in applying section 267(b) or
707(b)(1), `10 percent' shall be substituted for `50
percent'.
``(7) Inflation adjustment.--
``(A) In general.--In the case of a calendar year
after 2022, the dollar amounts in subsections
(b)(3)(A), (e)(3)(A)(i)(I), (e)(3)(A)(i)(II), and
(i)(2)(C) shall each be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for such
calendar year by substituting `calendar year
2021' for `calendar year 2016' in subparagraph
(A)(ii) thereof.
``(B) Rounding.--
``(i) In the case of the dollar amounts in
subsection (b)(3)(A) and (i)(2)(C), any
increase under paragraph (1) which is not a
multiple of $1,000 shall be rounded to the
nearest multiple of $1,000.
``(ii) In the case of the dollar amount in
subsection (e)(3)(A)(i)(I), any increase under
paragraph (1) which is not a multiple of $0.01
shall be rounded to the nearest multiple of
$0.01.
``(iii) In the case of the dollar amount in
subsection (e)(3)(A)(i)(II), any increase under
paragraph (1) which is not a multiple of
$100,000 shall be rounded to the nearest
multiple of $100,000.
``(8) Report.--
``(A) In general.--The Secretary shall annually
issue a report, to be made available to the public,
which contains the information submitted pursuant to
subsection (f)(1)(F).
``(B) De-identification.--The Secretary shall
ensure that any information made public pursuant to
paragraph (1) excludes any information that would allow
for the identification of qualified homeowners.
``(9) List of qualified census tracts.--The Secretary of
Housing and Urban Development shall, for each year, make
publicly available a list of qualified census tracts under--
``(A) on a combined basis, clauses (i) and (ii) of
subsection (c)(2)(A),
``(B) clause (iii) of such subsection, and
``(C) subsection (i)(5)(A).
``(i) Application of Credit With Respect to Owner-occupied
Rehabilitations.--
``(1) In general.--In the case of a qualified
rehabilitation by the taxpayer of any qualified residence which
is owned (as of the date that the written binding contract
referred to in paragraph (3) is entered into) by a specified
homeowner, the rules of paragraphs (2) through (7) shall apply.
``(2) Alternative credit determination.--In the case of any
qualified residence described in paragraph (1), the
neighborhood homes credit determined under subsection (a) with
respect to such residence shall (in lieu of any credit
otherwise determined under subsection (a) with respect to such
residence) be allowed in the taxable year during which the
qualified rehabilitation is completed (as determined by the
neighborhood homes credit agency) and shall be equal to the
least of--
``(A) the excess (if any) of--
``(i) the amounts paid or incurred by the
taxpayer for the qualified rehabilitation of
the qualified residence to the extent that such
amounts are certified by the neighborhood homes
credit agency (at the time of the completion of
such rehabilitation) as meeting the standards
specified pursuant to subsection (f)(1)(C),
over
``(ii) any amounts paid to such taxpayer
for such rehabilitation,
``(B) 50 percent of the amounts described in
subparagraph (A)(i), or
``(C) $50,000.
``(3) Qualified rehabilitation.--
``(A) In general.--For purposes of this subsection,
the term `qualified rehabilitation' means a
rehabilitation or reconstruction performed pursuant to
a written binding contract between the taxpayer and the
qualified homeowner if the amount paid or incurred by
the taxpayer in the performance of such rehabilitation
or reconstruction exceeds the dollar amount in effect
under subsection (b)(3)(A).
``(B) Application of limitation to expenses paid or
incurred after allocation.--A rule similar to the rule
of section (b)(4) shall apply for purposes of this
subsection.
``(4) Specified homeowner.--For purposes of this
subsection, the term `qualified homeowner' means, with respect
to a qualified residence, an individual--
``(A) who owns and uses such qualified residence as
the principal residence of such individual as of the
date that the written binding contract referred to in
paragraph (3) is entered into, and
``(B) whose family income (determined as of such
date) does not exceed the median family income for the
applicable area (with respect to the census tract in
which the qualified residence is located).
``(5) Additional census tracts in which owner-occupied
residences may be located.--In the case of any qualified
residence described in paragraph (1), the term `qualified
census tract' includes any census tract which--
``(A) meets the requirements of subsection
(c)(2)(A)(i) without regard to subclause (III) thereof,
and
``(B) is designated by the neighborhood homes
credit agency for purposes of this paragraph.
``(6) Modification of repayment requirement.--In the case
of any qualified residence described in paragraph (1),
subsection (g) shall be applied by beginning the 5-year period
otherwise described therein on the date on which the qualified
owner acquired the residence.
``(7) Related parties.--Paragraph (1) shall not apply if
the taxpayer is the owner of the qualified residence described
in paragraph (1) or is related (within the meaning of
subsection (h)(6)(B)) to such owner.
``(8) Pyrrhotite remediation.--The requirement of
subsection (c)(1)(C) shall not apply to a qualified
rehabilitation under this subsection of a qualified residence
that is documented by an engineer's report and core testing to
have a foundation that is adversely impacted by pyrrhotite or
other iron sulfide minerals.
``(j) Regulations.--The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
section, including regulations that prevent avoidance of the rules, and
abuse of the purposes, of this section.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b), as amended by the preceding provisions of this Act, is amended
by striking ``plus'' at the end of paragraph (34), by striking the
period at the end of paragraph (35) and inserting ``, plus'', and by
adding at the end the following new paragraph:
``(36) the neighborhood homes credit determined under
section 42A(a),''.
(c) Credit Allowed Against Alternative Minimum Tax.--Section
38(c)(4)(B), as amended by the preceding provisions of this Act, is
amended by redesginating clauses (iv) through (xiii) as clauses (v)
through (xiv), respectively, and by inserting after clause (iii) the
following new clause:
``(iv) the credit determined under section
42A,''.
(d) Conforming Amendments.--
(1) Subsections (i)(3)(C), (i)(6)(B)(i), and (k)(1) of
section 469 are each amended by inserting ``or 42A'' after
``section 42''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 42 the following new item:
``Sec. 42A. Neighborhood homes credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
PART 6--INVESTMENTS IN TRIBAL INFRASTRUCTURE
SEC. 135601. TREATMENT OF INDIAN TRIBES AS STATES WITH RESPECT TO BOND
ISSUANCE.
(a) In General.--Section 7871(c) is amended to read as follows:
``(c) Special Rules for Tax-exempt Bonds.--
``(1) In general.--In applying section 146 to bonds issued
by Indian Tribal Governments the Secretary shall annually--
``(A) establish a national bond volume cap based on
the greater of--
``(i) the State population formula approach
in section 146(d)(1)(A) (using national Tribal
population estimates supplied annually by the
Department of the Interior in consultation with
the Census Bureau), and
``(ii) the minimum State ceiling amount in
section 146(d)(1)(B) (as adjusted in accordance
with the cost of living provision in section
146(d)(2)),
``(B) allocate such national bond volume cap among
all Indian Tribal Governments seeking such an
allocation in a particular year under regulations
prescribed by the Secretary.
``(2) Application of geographic restriction.--In the case
of national bond volume cap allocated under paragraph (1),
section 146(k)(1) shall not apply to the extent that such cap
is used with respect to financing for a facility located on
qualified Indian lands.
``(3) Restriction on financing of certain gaming
facilities.--No portion of the volume cap allocated under this
subsection may be used with respect to the financing of any
portion of a building in which class II or class III gaming (as
defined in section 4 of the Indian Gaming Regulatory Act) is
conducted or housed or any property actually used in the
conduct of such gaming.
``(4) Definitions and special rules.--For purposes of this
subsection--
``(A) Indian tribal government.--The term `Indian
Tribal Government' means the governing body of an
Indian Tribe, band, nation, or other organized group or
community, or of Alaska Natives, which is recognized as
eligible for the special programs and services provided
by the United States to Indians because of their status
as Indians, and also includes any agencies,
instrumentalities or political subdivisions thereof.
``(B) Intertribal consortiums, etc.--In any case in
which an Indian Tribal Government has authorized an
intertribal consortium, a Tribal organization, or an
Alaska Native regional or village corporation, as
defined in, or established pursuant to, the Alaska
Native Claims Settlement Act, to plan for, coordinate
or otherwise administer services, finances, functions,
or activities on its behalf under this subsection, the
authorized entity shall have the rights and
responsibilities of the authorizing Indian Tribal
Government only to the extent provided in the
Authorizing resolution.
``(C) Qualified indian lands.--The term `qualified
Indian lands' shall mean an Indian reservation as
defined in section 3(d) of the Indian Financing Act of
1974 (25 U.S.C. 1452(d)), including lands which are
within the jurisdictional area of an Oklahoma Indian
Tribe (as determined by the Secretary of the Interior)
and shall include lands outside a reservation where the
facility is to be placed in service in connection
with--
``(i) the active conduct of a trade or
business by an Indian Tribe on, contiguous to,
within reasonable proximity of, or with a
substantial connection to, an Indian
reservation or Alaska Native village, or
``(ii) infrastructure (including roads,
power lines, water systems, railroad spurs, and
communication facilities) serving an Indian
reservation or Alaska Native village.''.
(b) Conforming Amendment.--Subparagraph (B) of section 45(c)(9) is
amended to read as follows:
``(B) Indian tribe.--For purposes of this
paragraph, the term `Indian tribe' has the meaning
given the term `Indian Tribal Government' by section
7871(c)(3)(A).''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued in calendar years beginning after the date
of the enactment of this Act.
SEC. 135602. NEW MARKETS TAX CREDIT FOR TRIBAL STATISTICAL AREAS.
(a) Additional Allocations for Tribal Statistical Areas.--Section
45D(f), as amended by the preceding provisions of this Act, is amended
by adding at the end the following new paragraph:
``(5) Additional allocations for tribal statistical
areas.--
``(A) In general.--In the case of each calendar
year after 2021, there is (in addition to any
limitation under any other paragraph of this
subsection) a new markets tax credit limitation of
$175,000,000 which shall be allocated by the Secretary
as provided in paragraph (2) except that such
limitation may only be allocated with respect to Tribal
Statistical Areas.
``(B) Carryover of unused tribal statistical area
limitation.--
``(i) In general.--If the credit limitation
under subparagraph (A) for any calendar year
exceeds the amount of such limitation allocated
by the Secretary for such calendar year, such
limitation for the succeeding calendar year
shall be increased by the amount of such
excess.
``(ii) Limitation on carryover.--No amount
of credit limitation may be carried under
clause (i) past the 5th calendar year following
the calendar year in which such amount of
credit limitation arose.
``(iii) Transfer of expired tribal
statistical area limitation to general
limitation.--In the case of any amount of
credit limitation which would (but for clause
(ii)) be carried under clause (i) to the 6th
calendar year following the calendar year in
which such amount of credit limitation arose,
the new market tax credit limitation under
paragraph (1) for such 6th calendar year shall
be increased by the amount of such credit
limitation.
``(C) Tribal statistical area.--For purposes of
this paragraph, the term `Tribal Statistical Area'
means--
``(i) any low-income community which is
located in any Tribal Census Tract, Oklahoma
Tribal Statistical Area, Tribal-Designated
Statistical Area, Alaska Native Village
Statistical Area, or Hawaiian Home Land, and
``(ii) any low-income community described
in subsection (e)(1)(B).''.
(b) Eligibility of Certain Projects Serving Tribal Members.--
Section 45D(e)(1) is amended to read as follows:
``(1) In general.--The term `low-income community' means
any area--
``(A) comprising a population census tract if--
``(i) the poverty rate for such tract is at
least 20 percent, or
``(ii)(I) in the case of a tract not
located within a metropolitan area, the median
family income for such tract does not exceed 80
percent of statewide median family income, or
``(II) in the case of a tract located
within a metropolitan area, the median family
income for such tract does not exceed 80
percent of the greater of statewide median
family income or the metropolitan area median
family income,
``(B) which is used for a qualified active low-
income community business which--
``(i) services a significant population of
Tribal or Alaska Native Village members who are
residents of a low-income community described
in subsection (f)(5)(C)(i), and
``(ii) obtains a written statement from the
relevant Indian Tribal Government (within the
meaning of section 7871(c)) that documents the
eligibility such project with respect to the
requirement of clause (i).
Subparagraph (A)(ii) shall be applied using possession wide
median family income in the case of census tracts located
within a possession of the United States.''.
(c) Application of Inflation Adjustment.--Section 45D(f)(4), as
added by the preceding provisions of this Act, is amended by striking
``the dollar amount paragraph (1)(H) shall be increased'' and inserting
``the dollar amounts in paragraphs (1)(H) and (5)(A) shall each be
increased''.
(d) Coordination With Existing Carryover.--Section 45D(f)(3), as
amended by the preceding provisions of this Act, is amended to read as
follows:
``(3) Carryover of unused limitation.--If the new markets
tax credit limitation under paragraph (1) for any calendar year
exceeds the amount of such limitation allocated by the
Secretary under paragraph (2) for such year, such limitation
for the succeeding calendar year shall be increased by the
amount of such excess.''.
(e) Regulatory Authority.--Section 45D(i) is amended by striking
``and'' at the end of paragraph (5), by striking the period at the end
of paragraph (6) and inserting ``, and'', and by adding at the end the
following new paragraph:
``(7) which provide documentation requirements for the
written statement required under subsection (e)(1)(B)(ii), and
``(8) which provide procedures for determining which
projects under subsection (e)(1)(B) are qualified active low-
income community businesses with respect to the populations
described in such subsection. Such procedures shall take into
account the location needs of such projects, especially with
respect to projects that serve multiple tribal or Alaska Native
Village communities.''.
(f) Effective Date.--The amendments made by this section shall
apply to new markets tax credit limitation determined for calendar
years after December 31, 2021.
SEC. 135603. INCLUSION OF INDIAN AREAS AS DIFFICULT DEVELOPMENT AREAS
FOR PURPOSES OF CERTAIN BUILDINGS.
(a) In General.--Subclause (I) of section 42(d)(5)(B)(iii), as
amended by the preceding provisions of this Act, is amended by
inserting ``, any Indian area'' after ``median gross income''.
(b) Indian Area.--Clause (iii) of section 42(d)(5)(B), as amended
by the preceding provisions of this Act is amended by redesignating
subclause (III) as subclause (V) and by inserting after subclause (II)
the following new subclauses:
``(III) Indian area.--For purposes
of subclause (I), the term `Indian
area' means any Indian area (as defined
in section 4(11) of the Native American
Housing Assistance and Self
Determination Act of 1996 (25 U.S.C.
4103(11))).
``(IV) Special rule for buildings
in indian areas.--In the case of an
area which is a difficult development
area solely because it is an Indian
area, a building shall not be treated
as located in such area unless such
building is assisted or financed under
the Native American Housing Assistance
and Self Determination Act of 1996 (25
U.S.C. 4101 et seq.) or the project
sponsor is an Indian tribe (as defined
in section 45A(c)(6)), a tribally
designated housing entity (as defined
in section 4(22) of such Act (25 U.S.C.
4103(22))), or wholly owned or
controlled by such an Indian tribe or
tribally designated housing entity.''.
(c) Effective Date.--The amendments made by this section shall
apply to buildings placed in service after December 31, 2021.
PART 7--INVESTMENTS IN THE TERRITORIES
SEC. 135701. POSSESSIONS ECONOMIC ACTIVITY CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1,
as amended by the preceding provisions of this Act, is amended by
adding at the end the following new section:
``SEC. 45V. POSSESSIONS ECONOMIC ACTIVITY CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, in the case
of a qualified domestic corporation the possessions economic activity
credit determined under this section for a taxable year is an amount
equal to 20 percent of the sum of the qualified possession wages and
allocable employee fringe benefit expenses paid or incurred by the
taxpayer for the taxable year.
``(b) Qualified Domestic Corporation; Qualified Corporation.--For
purposes of this section--
``(1) In general.--The term `qualified domestic
corporation' means any domestic corporation which is--
``(A) a qualified corporation, or
``(B) a United States shareholder of a foreign
corporation which--
``(i) is a qualified corporation, and
``(ii) is wholly owned by the United States
shareholder together with any corporations
which are members of the same affiliated group
(within the meaning of section 1504(a)) as such
United States shareholder.
``(2) Qualified corporation.--The term `qualified
corporation' means any corporation if such corporation meets
the following requirements:
``(A) Source qualification.--80 percent or more of
the gross income of the corporation for the 3-year
period immediately preceding the close of the taxable
year (or for such part of such period immediately
preceding the close of such taxable year as may be
applicable) was derived from sources within a
possession of the United States (determined without
regard to section 904(f)).
``(B) Trade or business qualification.--75 percent
or more of the gross income of the corporation for such
period or such part thereof was derived from the active
conduct of a trade or business within a possession of
the United States.
``(3) Special rule for separate and clearly identified
units of foreign corporations.--
``(A) In general.--In the case of a United States
shareholder of a foreign corporation which--
``(i) is not a qualified corporation but
with respect to which the ownership
requirements of paragraph (1)(B)(ii) are met,
and
``(ii) has an eligible foreign business
unit which, if such unit were a corporation,
would be a qualified corporation with respect
to which such ownership requirements would be
met,
then, for purposes of this section, the United States
shareholder may elect to treat such unit as a separate
foreign corporation which meets the requirements of
paragraph (1)(B) and with respect to which such
shareholder is a United States shareholder.
``(B) Eligible foreign business unit.--For purposes
of this paragraph, the term `eligible foreign business
unit' means a separate and clearly identified foreign
unit of a trade or business, including a partnership or
an entity treated as disregarded as a separate entity
from its owner (under section 7701 or other provision
under this title), which maintains separate books and
records.
``(C) Special election for affiliated groups.--In
the case of an affiliated group described in paragraph
(1)(B)(ii), the election under subparagraph (A) with
respect to any eligible foreign business unit shall be
made by the common parent of such group and shall apply
uniformly to all members of such group which are United
States shareholders with respect to the foreign
corporation which has such unit.
``(c) Qualified Possession Wages.--For purposes of this section--
``(1) In general.--The term `qualified possession wages'
means wages paid or incurred by the qualified corporation
during the taxable year in connection with the active conduct
of a trade or business within a possession of the United States
to any employee for services performed in such possession, but
only if such services are performed while the principal place
of employment of such employee is within such possession.
``(2) Limitation on amount of wages taken into account.--
``(A) In general.--The amount of wages which may be
taken into account under paragraph (1) with respect to
any employee for any taxable year shall not exceed
$50,000.
``(B) Treatment of part-time employees, etc.--If--
``(i) any employee is not employed by the
qualified corporation on a substantially full-
time basis at all times during the taxable
year, or
``(ii) the principal place of employment of
any employee with the qualified corporation is
not within a possession at all times during the
taxable year,
the limitation applicable under paragraph (1) with
respect to such employee shall be the appropriate
portion (as determined by the Secretary) of the
limitation which would otherwise be in effect under
paragraph (1).
``(C) Wages.--
``(i) In general.--Except as provided in
clause (ii), the term `wages' has the meaning
given to such term by subsection (b) of section
3306 (determined without regard to any dollar
limitation contained in such section). For
purposes of the preceding sentence, such
subsection (b) shall be applied as if the term
`United States' included all possessions of the
United States.
``(ii) Special rule for agricultural labor
and railway labor.--In any case to which
subparagraph (A) or (B) of paragraph (1) of
section 51(h) applies, the term `wages' has the
meaning given to such term by section 51(h)(2).
``(3) Allocable employee fringe benefit expenses.--
``(A) In general.--The allocable employee fringe
benefit expenses of any qualified corporation for any
taxable year is an amount which bears the same ratio to
the amount determined under subparagraph (B) for such
taxable year as--
``(i) the aggregate amount of the qualified
corporation's qualified possession wages for
such taxable year, bears to
``(ii) the aggregate amount of the wages
paid or incurred by such qualified corporation
during such taxable year.
In no event shall the amount determined under the
preceding sentence exceed 15 percent of the amount
referred to in clause (i).
``(B) Expenses taken into account.--For purposes of
subparagraph (A), the amount determined under this
subparagraph for any taxable year is the aggregate
amount allowable (or, in the case of a foreign
corporation, which would be allowable if such foreign
corporation were a domestic corporation) as a deduction
under this chapter to the qualified corporation for
such taxable year with respect to--
``(i) employer contributions under a stock
bonus, pension, profit-sharing, or annuity
plan,
``(ii) employer-provided coverage under any
accident or health plan for employees, and
``(iii) the cost of life or disability
insurance provided to employees.
Any amount treated as wages under paragraph (2)(C)
shall not be taken into account under this
subparagraph.
``(d) Special Rule for Qualified Small Domestic Corporation.--For
purposes of this section--
``(1) Increased credit percentage.--In the case of a
qualified small domestic corporation, subsection (a) shall be
applied by substituting `50 percent' for `20 percent'.
``(2) Qualified small domestic corporation.--
``(A) In general.--The term `qualified small
domestic corporation' means a qualified domestic
corporation that meets the requirements of
subparagraphs (B) and (C).
``(B) Full-time employment.--A qualified domestic
corporation meets the requirements of this subparagraph
if the qualified corporation which is the qualified
domestic corporation under subsection (b)(1)(A) or the
foreign corporation under subsection (b)(1)(B)(i)--
``(i) has at least 5 full-time employees in
a possession of the United States for each year
in the 3-year period immediately preceding the
close of the taxable year (or for such part of
such period immediately preceding the close of
such taxable year as may be applicable), and
``(ii) has not more than a total of 30
full-time employees for each year in such 3-
year period.
``(C) Gross receipts.--A qualified domestic
corporation meets the requirements of this subparagraph
if the annual gross receipts of the qualified domestic
corporation (and all persons related thereto) for each
year in such 3-year period is not more than
$50,000,000.
``(3) Related persons.--In determining whether the
limitations under subparagraphs (B)(ii) and (C) of paragraph
(2) are met, all persons who are treated as related to the
qualified domestic corporation for purposes of subsection (a)
or (b) of section 52 shall be taken into account.
``(4) Amount of wages taken into account.--Subsection
(c)(2)(A) shall be applied by substituting `$139,500' for
`$50,000'.
``(e) Possession of the United States.--
``(1) In general.--The term `possession of the United
States' means American Samoa, the Commonwealth of the Northern
Mariana Islands, the Commonwealth of Puerto Rico, Guam, and the
Virgin Islands.
``(2) Mirror code possessions.--In the case of any
possession of the United States with a mirror code tax system
(as defined in section 24(k)), this section shall not be
treated as part of the income tax laws of the United States for
purposes of determining the income tax law of such possession
unless such possession elects to have this section be so
treated.
``(f) Separate Application to Each Possession.--For purposes of
determining the amount of the credit allowed under this section, this
section shall be applied separately with respect to each possession of
the United States.
``(g) Termination.--No credit shall be allowed under this section
for any taxable year beginning after December 31, 2031.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38, as amended by the preceding provisions of this Act, is
amended by striking ``plus'' at the end of paragraph (35), by striking
the period at the end of paragraph (36) and inserting ``, plus'', and
by adding at the end the following new paragraph:
``(37) the possessions economic activity credit determined
under section 45V.''.
(c) Clerical Amendment.--The table of sections for subpart B of
part IV of subchapter A of chapter 1 is amended by adding at the end
the following:
``Sec. 45V. Possessions Economic Activity Credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act, and in the case of a qualified corporation that is a foreign
corporation, to taxable years beginning after the date of enactment and
to taxable years of United States shareholders in which or with which
such taxable years of foreign corporations end.
SEC. 135702. ADDITIONAL NEW MARKETS TAX CREDIT ALLOCATIONS FOR THE
TERRITORIES.
(a) In General.--Section 45D(f), as amended by the preceding
provisions of this Act, is amended by adding at the end the following
new paragraph:
``(6) Additional allocations for possessions of the united
states.--
``(A) In general.--In the case of each calendar
year after 2021, there is (in addition to the
limitation under paragraph (1)--
``(i) a new markets tax credit limitation
of $80,000,000 which shall be allocated by the
Secretary as provided in paragraph (2) except
that such limitation may only be allocated with
respect to low-income communities located in
Puerto Rico, and
``(ii) a new markets tax credit limitation
of $20,000,000 which shall be allocated by the
Secretary as provided in paragraph (2) except
that such limitation may only be allocated with
respect to low-income communities located in
possessions of the United States other than
Puerto Rico.
``(B) Carryover of unused limitation.--
``(i) In general.--If the credit limitation
under clause (i) or clause (ii) of subparagraph
(A) for any calendar year exceeds the amount of
such limitation allocated by the Secretary for
such calendar year, such limitation for the
succeeding calendar year shall be increased by
the amount of such excess.
``(ii) Limitation on carryover.--No amount
of credit limitation may be carried under
clause (i) past the 5th calendar year following
the calendar year in which such amount of
credit limitation arose.
``(iii) Transfer of expired possession
limitation to general limitation.--In the case
of any amount of credit limitation which would
(but for clause (ii)) be carried under clause
(i) to the 6th calendar year following the
calendar year in which such amount of credit
limitation arose, the new market tax credit
limitation under paragraph (1) for such 6th
calendar year shall be increased by the amount
of such credit limitation.''.
(b) Application of Inflation Adjustment.--Section 45D(f)(4), as
added and amended by the preceding provisions of this Act, is amended
by striking ``paragraphs (1)(H) and (5)(A)'' and inserting ``paragraphs
(1)(H), (5)(A), (6)(A)(i), and (6)(A)(ii)''.
(c) Effective Dates.--The amendments made by this section shall
apply to new markets tax credit limitation determined for calendar
years after December 31, 2021.
Subtitle G--Green Energy
SEC. 136001. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this subtitle
an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
PART 1--RENEWABLE ELECTRICITY AND REDUCING CARBON EMISSIONS
SEC. 136101. EXTENSION AND MODIFICATION OF CREDIT FOR ELECTRICITY
PRODUCED FROM CERTAIN RENEWABLE RESOURCES.
(a) In General.--The following provisions of section 45(d) are each
amended by striking ``January 1, 2022'' each place it appears and
inserting ``January 1, 2034'':
(1) Paragraph (2)(A).
(2) Paragraph (3)(A).
(3) Paragraph (4)(B).
(4) Paragraph (6).
(5) Paragraph (7).
(6) Paragraph (9).
(7) Paragraph (11)(B).
(b) Application of Extension to Solar.--Section 45(d)(4)(A) is
amended by striking ``is placed in service before January 1, 2006'' and
inserting ``the construction of which begins before January 1, 2034.''.
(c) Extension of Election to Treat Qualified Facilities as Energy
Property.--Section 48(a)(5)(C)(ii) is amended by striking ``January 1,
2022'' and inserting ``January 1, 2034''.
(d) Application of Extension to Wind Facilities.--
(1) In general.--Section 45(d)(1) is amended by striking
``January 1, 2022'' and inserting ``January 1, 2034''.
(2) Application of phaseout percentage.--
(A) Renewable electricity production credit.--
Section 45(b)(5)(D) is amended by inserting ``placed in
service before January 1, 2022'' after ``In the case of
any facility''.
(B) Energy credit.--Section 48(a)(5)(E)(iv) is
amended by inserting ``placed in service before January
1, 2022'' after ``In the case of any facility''.
(3) Qualified offshore wind facilities under energy
credit.--Section 48(a)(5)(F)(i) is amended by striking
``offshore wind facility--'' and all that follows and inserting
the following: ``offshore wind facility, subparagraph (E) shall
not apply.''.
(e) Percentage Phaseout of Credit.--Section 45(b) is amended by
adding at the end the following new paragraph:
``(6) Percentage phaseout of credit.--In the case of any
facility, the amount of the credit determined under subsection
(a) shall be reduced by--
``(A) in the case of any facility the construction
of which begins after December 31, 2031 and before
January 1, 2033, 20 percent,
``(B) in the case of any facility the construction
of which begins after December 31, 2032 and before
January 1, 2034, 40 percent, and
``(C) in the case of any facility the construction
of which begins after December 31, 2033, 100
percent.''.
(f) Wage and Apprenticeship Requirements.--Section 45(b) is amended
by adding at the end the following new paragraphs:
``(7) Base credit amount and increased credit amount for
qualified facilities.--
``(A) In general.--In the case of any qualified
facility which does not satisfy the requirements of
subparagraph (B), the amount of the credit determined
under subsection (a) (determined after the application
of paragraphs (1) through (6)) shall be 20 percent of
such amount (determined without regard to this
sentence).
``(B) Increased credit for certain facilities
meeting project requirements.--
``(i) In general.--In the case of any
qualified facility which meets the project
requirements of this subparagraph, subparagraph
(A) shall not apply.
``(ii) Project requirements.--A project
meets the requirements of this subparagraph if
it is one of the following:
``(I) A project with a maximum net
output of less than 1 megawatt.
``(II) A project which commences
construction prior to the date of the
enactment of this paragraph.
``(III) A project which satisfies
the requirements of paragraphs (8) and
(9).
``(8) Prevailing wage requirements.--
``(A) In general.--The requirements described in
this subparagraph with respect to any qualified
facility are that the taxpayer shall ensure that any
laborers and mechanics employed by contractors and
subcontractors in--
``(i) the construction of such facility,
and
``(ii) for the 10-year period beginning on
the date the facility was originally placed in
service, the alteration or repair of such
facility,
shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or
repair of a similar character in the locality as most
recently determined by the Secretary of Labor, in
accordance with subchapter IV of chapter 31 of title
40, United States Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--
``(i) In general.--In the case of any
taxpayer which fails to satisfy the requirement
under subparagraph (A) with respect to the
construction of any qualified facility or with
respect to the alteration or repair of a
facility in any year during the period
described in subparagraph (A)(ii), such
taxpayer shall be deemed to have satisfied such
requirement under such subparagraph with
respect to such facility for any year if, with
respect to any laborer or mechanic who was paid
wages at a rate below the rate described in
such subparagraph for any period during such
year, such taxpayer--
``(I) makes payment to such laborer
or mechanic in an amount equal to the
sum of--
``(aa) an amount equal to
the difference between the
amount of wages paid to such
laborer or mechanic during such
period, and--
``(AA) the amount
of wages required to be
paid to such laborer or
mechanic pursuant to
such subparagraph
during such period,
plus
``(BB) interest on
the amount determined
under item (aa) at the
underpayment rate
established under
section 6621 for the
period described in
such item, and
``(II) makes payment to the
Secretary of a penalty in an amount
equal to the product of--
``(aa) $5,000, multiplied
by
``(bb) the total number of
laborers and mechanics who were
paid wages at a rate below the
rate described in subparagraph
(A) for any period during such
year.
``(ii) Penalty assessed as tax.--The
penalty described in clause (i)(II) shall be
treated in the same manner as a penalty imposed
under subchapter B of chapter 68.
``(9) Apprenticeship requirements.--The requirements
described in this subparagraph with respect to the construction
of any qualified facility are as follows:
``(A) Labor hours.--
``(i) Percentage of total labor hours.--All
contractors and subcontractors engaged in the
performance of construction, alteration, or
repair work on any project shall, subject to
subparagraph (B), ensure that not less than the
applicable percentage of the total labor hours
of such work be performed by qualified
apprentices.
``(ii) Applicable percentage.--For purposes
of paragraph (1), the applicable percentage
shall be--
``(I) in the case of any applicable
project the construction of which
begins before January 1, 2023, 5
percent,
``(II) in the case of any
applicable project the construction of
which begins after December 31, 2022,
and before January 1, 2024, 10 percent,
and
``(III) in the case of any
applicable project the construction of
which begins after December 31, 2023,
15 percent.
``(B) Apprentice to journeyworker ratio.--The
requirement under subparagraph (A)(i) shall be subject
to any applicable requirements for apprentice-to-
journeyworker ratios of the Department of Labor or the
applicable State apprenticeship agency.
``(C) Participation.--Each contractor and
subcontractor who employs 4 or more individuals to
perform construction, alteration, or repair work on an
applicable project shall employ 1 or more qualified
apprentices to perform such work.
``(D) Exception.--
``(i) In general.--Notwithstanding any
other provision of this paragraph, this
paragraph shall not apply in the case of a
taxpayer who--
``(I) demonstrates a lack of
availability of qualified apprentices
in the geographic area of the
construction, alteration, or repair
work, and
``(II) makes a good faith effort to
comply with the requirements of this
paragraph, or
``(ii) Good faith effort.--For purposes of
clause (i), a taxpayer shall be deemed to have
satisfied the requirements under such paragraph
with respect to an applicable project if such
taxpayer has requested qualified apprentices
from a registered apprenticeship program, as
defined in section 3131(e)(3)(B), and such
request has been denied, provided that such
denial is not the result of a refusal by the
contractors or subcontractors engaged in the
performance of construction, alteration, or
repair work on such applicable project to
comply with the established standards and
requirements of such apprenticeship program.
``(E) Definitions.--For purposes of this
paragraph--
``(i) Labor hours.--The term `labor
hours'--
``(I) means the total number of
hours devoted to the performance of
construction, alteration, or repair
work by employees of the contractor or
subcontractor, and
``(II) excludes any hours worked
by--
``(aa) foremen,
``(bb) superintendents,
``(cc) owners, or
``(dd) persons employed in
a bona fide executive,
administrative, or professional
capacity (within the meaning of
those terms in part 541 of
title 29, Code of Federal
Regulations).
``(ii) Qualified apprentice.--The term
`qualified apprentice' means an individual who
is an employee of the contractor or
subcontractor and who is participating in a
registered apprenticeship program, as defined
in section 3131(e)(3)(B).
``(10) Domestic content bonus credit amount.--
``(A) In general.--In the case of any qualified
facility which satisfies the requirement under
subparagraph (B), the amount of the credit determined
under subsection (a) (determined after the application
of paragraphs (1) through (9)) shall be increased by an
amount equal to 10 percent of the amount otherwise in
effect under such subsection.
``(B) Requirement.--
``(i) In general.--Subject to clause (iii),
the requirement described in this subclause
with respect to any qualified facility is that,
prior to the end of the taxable year in which
such facility is placed in service, the
taxpayer shall certify to the Secretary that,
any steel, iron, or manufactured product used
in the construction of such facility was
produced in the United States.
``(ii) Steel and iron.--In the case of
steel or iron, clause (i) shall be applied in a
manner consistent with section 661.5(b) of
title 49, Code of Federal Regulations.
``(iii) Manufactured product.--For purposes
of clause (i), a manufactured product shall be
deemed to have been manufactured in the United
States if not less than 55 percent of the total
cost of the components of such product is
attributable to components which are mined,
produced, or manufactured in the United States.
``(C) International agreements.--This paragraph
shall be applied in a manner which is consistent with
the obligations of the United States under
international agreements.
``(11) Penalty for direct pay.--
``(A) In general.--In the case of a taxpayer making
an election under section 6417 with respect to a credit
under this section, the amount of such credit shall be
replaced with--
``(i) the value of such credit (determined
without regard to this paragraph), multiplied
by
``(ii) the applicable percentage.
``(B) 100 percent applicable percentage for certain
qualified facilities.--In the case of any qualified
facility--
``(i) which satisfies the requirements
under paragraph (10) with respect to the
construction of such facility, or
``(ii) with a maximum net output of less
than 1 megawatt,
the applicable percentage shall be 100 percent.
``(C) Phased domestic content requirement.--Subject
to subparagraph (D), in the case of any qualified
facility which is not described in subparagraph (B),
the applicable percentage shall be--
``(i) if construction of such facility
began before January 1, 2024, 100 percent,
``(ii) if construction of such facility
began in calendar year 2024, 90 percent,
``(iii) if construction of such facility
began in calendar year 2025, 85 percent, and
``(iv) if construction of such facility
began after December 31, 2025, 0 percent.
``(D) Exceptions.--In order to facilitate the use
of amounts made available in this section, increase the
tax incentives for investment in clean energy, and grow
the domestic supply chains, the Secretary shall provide
appropriate exceptions to the domestic content
requirements for products under subparagraph (C) for
the construction of qualified facilities if either the
inclusion of domestic products increases the overall
costs of projects by more than 25 percent or relevant
manufactured products are not produced in the United
States in sufficient and reasonably available
quantities or of a satisfactory quality.
``(12) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary determines
necessary or appropriate to carry out the purposes of this
subsection.''.
(g) Effective Date.--The amendments made by this section shall
apply to facilities placed in service after December 31, 2021.
SEC. 136102. EXTENSION AND MODIFICATION OF ENERGY CREDIT.
(a) Extension of Credit.--The following provisions of section 48
are each amended by striking ``January 1, 2024'' each place it appears
and inserting ``January 1, 2034'':
(1) Subsection (a)(3)(A)(ii).
(2) Subsection (a)(3)(A)(vii).
(3) Subsection (c)(1)(D).
(4) Subsection (c)(2)(D).
(5) Subsection (c)(3)(A)(iv).
(6) Subsection (c)(4)(C).
(b) Phaseout of Credit.--Section 48(a) is amended by striking
paragraphs (6) and (7) and inserting the following new paragraphs:
``(6) Phaseout for solar energy property.--
``(A) In general.--Subject to subparagraph (B), in
the case of any energy property described in paragraph
(3)(A)(i) the construction of which begins before
January 1, 2034, the energy percentage determined under
paragraph (2) shall be equal to--
``(i) in the case of any property the
construction of which begins after December 31,
2019, and which is placed in service before
January 1, 2022, 26 percent,
``(ii) in the case of any property the
construction of which begins before January 1,
2032, and which is placed in service after
December 31, 2021, 30 percent,
``(iii) in the case of any property the
construction of which begins after December 31,
2031 and before January 1, 2033, 26 percent,
and
``(iv) in the case of any property the
construction of which begins after December 31,
2032 and before January 1, 2034, 22 percent.
``(B) Placed in service deadline.--In the case of
any energy property described in paragraph (3)(A)(i)
the construction of which begins before January 1,
2034, and which is not placed in service before January
1, 2036, the energy percentage determined under
paragraph (2) shall be equal to 10 percent.
``(7) Phaseout for certain other energy property.--
``(A) In general.--Subject to subparagraph (B), in
the case of any qualified fuel cell property, qualified
small wind property, waste energy recovery property, or
energy property described in paragraph (3)(A)(ii), the
energy percentage determined under paragraph (2) shall
be equal to--
``(i) in the case of any property the
construction of which begins after December 31,
2019, and which is placed in service before
January 1, 2022, 26 percent,
``(ii) in the case of any property the
construction of which begins before January 1,
2032, and which is placed in service after
December 31, 2021, 30 percent,
``(iii) in the case of any property the
construction of which begins after December 31,
2031 and before January 1, 2033, 26 percent,
and
``(iv) in the case of any property the
construction of which begins after December 31,
2032 and before January 1, 2034, 22 percent.
``(B) Placed in service deadline.--In the case of
any energy property described in subparagraph (A) which
is not placed in service before January 1, 2036, the
energy percentage determined under paragraph (2) shall
be equal to 0 percent.''.
(c) 30 Percent Credit for Solar and Geothermal.--
(1) Extension for solar.--Section 48(a)(2)(A)(i)(II) is
amended by striking ``January 1, 2024'' and inserting ``January
1, 2034''.
(2) Application to geothermal.--
(A) In general.--Paragraphs (2)(A)(i)(II), (6)(A),
and (6)(B) of section 48(a) are each amended by
striking ``paragraph (3)(A)(i)'' and inserting ``clause
(i), (iii), or (vii) of paragraph (3)(A)''.
(B) Conforming amendment.--The heading of section
48(a)(6) is amended by inserting ``and geothermal''
after ``solar energy''.
(d) Energy Storage Technologies; Qualified Biogas Property;
Microgrid Controllers; Extension of Waste Energy Recovery Property.--
(1) In general.--Section 48(a)(3)(A) is amended by striking
``or'' at the end of clause (vii), and by adding at the end the
following new clauses:
``(viii) energy storage technology,
``(ix) qualified biogas property, or
``(x) microgrid controllers,''.
(2) Application of 30 percent credit.--Section
48(a)(2)(A)(i) is amended by striking ``and'' at the end of
subclauses (IV) and (V) and adding at the end the following new
subclauses:
``(VI) energy storage technology,
``(VII) qualified biogas property,
and
``(VIII) microgrid controllers,
and''.
(3) Application of phaseout.--Section 48(a)(7) is amended
by inserting ``energy storage technology, qualified biogas
property, microgrid contollers,'' after ``waste energy recovery
property,''.
(4) Definitions.--Section 48(c) is amended by adding at the
end the following new paragraphs:
``(6) Energy storage technology.--
``(A) In general.--The term `energy storage
technology' means equipment (other than equipment
primarily used in the transportation of goods or
individuals and not for the production of electricity)
which uses batteries, compressed air, pumped
hydropower, hydrogen storage, thermal energy storage,
regenerative fuel cells, flywheels, capacitors,
superconducting magnets, or other technologies
identified by the Secretary, after consultation with
the Secretary of Energy, to store energy for conversion
to electricity (or, in the case of hydrogen storage, to
store energy), and has a capacity of not less than 5
kilowatt hours.
``(B) Modifications of certain property.--In the
case of any equipment which either--
``(i) would be described in subparagraph
(A) except that such equipment has a capacity
of less than 5 kilowatt hours is modified such
that such equipment (after such modification)
has a capacity of not less than 5 kilowatt
hours, or
``(ii) is described in subparagraph (A) and
which has a capacity of not less than 5
kilowatt hours and is modified such that such
equipment (after such modification) has an
increased capacity,
such equipment shall be treated as described in
subparagraph (A) except that the basis of any property
which was part of such equipment before such
modification shall not be taken into account for
purposes of this section. In the case of any property
to which this subparagraph applies, subparagraph (C)
shall be applied by substituting `modification' for
`construction'.
``(C) Termination.--The term `energy storage
technology' shall not include any property the
construction of which does not begin before January 1,
2034.
``(7) Qualified biogas property.--
``(A) In general.--The term `qualified biogas
property' means property comprising a system which--
``(i) converts biomass (as defined in
section 45K(c)(3), as in effect on the date of
enactment of this paragraph) into a gas which--
``(I) consists of not less than 52
percent methane, or
``(II) is concentrated by such
system into a gas which consists of not
less than 52 percent methane, and
``(ii) captures such gas for productive
use.
``(B) Inclusion of cleaning and conditioning
property.--The term `qualified biogas property'
includes any property which is part of such system
which cleans or conditions such gas.
``(C) Termination.--The term `qualified biogas
property' shall not include any property the
construction of which does not begin before January 1,
2034.
``(8) Microgrid controller.--
``(A) In general.--The term `microgrid controller'
means equipment which is--
``(i) part of a qualified microgrid, and
``(ii) designed and used to monitor and
control the energy resources and loads on such
microgrid to maintain acceptable frequency,
voltage, or economic dispatch.
``(B) Qualified microgrid.--The term `qualified
microgrid' means an electrical system which--
``(i) includes equipment which is capable
of generating not less than 4 kilowatts and not
greater than 20 megawatts of electricity,
``(ii) is capable of operating--
``(I) in connection with the
electrical grid and as a single
controllable entity with respect to
such grid, and
``(II) independently (and
disconnected) from such grid, and
``(iii) is not part of a bulk-power system
(as defined in section 215 of the Federal Power
Act (16 U.S.C. 24o)).
``(C) Termination.--The term `microgrid controller'
shall not include any property the construction of
which does not begin before January 1, 2034.''.
(5) Denial of double benefit for qualified biogas
property.--Section 45(e) is amended by adding at the end the
following new paragraph:
``(12) Coordination with energy credit for qualified biogas
property.--The term `qualified facility' shall not include any
facility which produces electricity from gas produced by
qualified biogas property (as defined in section 48(c)(7)) if a
credit is determined under section 48 with respect to such
property for the taxable year or any prior taxable year.''.
(6) Extension of waste energy recovery property.--Section
48(c)(5)(D) is amended by striking ``January 1, 2024'' and
inserting ``January 1, 2034''.
(e) Fuel Cells Using Electromechanical Processes.--
(1) In general.--Section 48(c)(1) is amended--
(A) in subparagraph (A)(i)--
(i) by inserting ``or electromechanical''
after ``electrochemical'', and
(ii) by inserting ``(1 kilowatts in the
case of a fuel cell power plant with a linear
generator assembly)'' after ``0.5 kilowatt'',
and
(B) in subparagraph (C)--
(i) by inserting ``, or linear generator
assembly,'' after ``a fuel cell stack
assembly'', and
(ii) by inserting ``or electromechanical''
after ``electrochemical''.
(2) Linear generator assembly limitation.--Section 48(c)(1)
is amended by redesignating subparagraph (D) as subparagraph
(E) and by inserting after subparagraph (C) the following new
subparagraph:
``(D) Linear generator assembly.--The term `linear
generator assembly' does not include any assembly which
contains rotating parts.''.
(f) Dynamic Glass.--Section 48(a)(3)(A)(ii) is amended by inserting
``, or electrochromic glass which uses electricity to change its light
transmittance properties in order to heat or cool a structure,'' after
``sunlight''.
(g) Coordination With Low Income Housing Tax Credit.--Paragraph (3)
of section 50(c) of the Internal Revenue Code of 1986 is amended--
(1) by striking ``and'' at the end of subparagraph (A),
(2) by striking the period at the end of subparagraph (B)
and inserting ``, and'', and
(3) by adding at the end the following new subparagraph:
``(C) paragraph (1) shall not apply for purposes of
determining eligible basis under section 42.''.
(h) Wage and Apprenticeship Requirements.--Section 48(a) is amended
by adding at the end the following new paragraphs:
``(8) Base credit amount and increased credit amount for
energy projects.--
``(A) In general.--
``(i) Rule.--In the case of any energy
project which does not satisfy the requirements
of subparagraph (B), the amount of the credit
determined under this subsection (determined
after the application of paragraphs (1) through
(7)) shall be 20 percent of such amount
(determined without regard to this sentence).
``(ii) Energy project defined.--For
purposes of this subsection the term `energy
project' means a project consisting of multiple
energy properties that are part of a single
project. The requirements of this paragraph
shall be applied to such project.
``(B) Increased credit for energy projects meeting
project requirements.--
``(i) In general.--In the case of any
energy project which meets the project
requirements of this subparagraph, subparagraph
(A) shall not apply.
``(ii) Project requirements.--A project
meets the requirements of this subparagraph if
it is one of the following:
``(I) A project with a maximum net
output of less than 1 megawatt.
``(II) A project which commences
construction prior to the date of the
enactment of this paragraph.
``(III) A project which satisfies
the requirements of paragraphs (9) and
(10).
``(9) Prevailing wage requirements.--
``(A) In general.--The requirements described in
this subparagraph with respect to any energy project
are that the taxpayer shall ensure that any laborers
and mechanics employed by contractors and
subcontractors in--
``(i) the construction of such energy
project , and
``(ii) for any year during the period
beginning on the date any energy property of
such project is originally placed in service,
the alteration or repair of such property,
shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or
repair of a similar character in the locality as most
recently determined by the Secretary of Labor, in
accordance with subchapter IV of chapter 31 of title
40, United States Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--A taxpayer shall not be
treated as failing to satisfy the requirements of this
paragraph if such taxpayer meets requirements similar
to the requirements of section 45(b)(8)(B).
``(10) Apprenticeship requirements.--The requirements
described in this subparagraph with respect to the construction
of any applicable facility are as follows:
``(A) Labor hours.--
``(i) Percentage of total labor hours.--All
contractors and subcontractors engaged in the
performance of construction, alteration, or
repair work on any applicable facility prior to
such facility being placed into service shall,
subject to subparagraph (B), ensure that not
less than the applicable percentage of the
total labor hours of such work be performed by
qualified apprentices.
``(ii) Applicable percentage.--For purposes
of paragraph (1), the applicable percentage
shall be--
``(I) in the case of any applicable
project the construction of which
begins before January 1, 2023, 5
percent,
``(II) in the case of any
applicable project the construction of
which begins after December 31, 2022,
and before January 1, 2024, 10 percent,
and
``(III) in the case of any
applicable project the construction of
which begins after December 31, 2023,
15 percent.
``(B) Apprentice to journeyworker ratio.--The
requirement under subparagraph (A)(i) shall be subject
to any applicable requirements for apprentice-to-
journeyworker ratios of the Department of Labor or the
applicable State apprenticeship agency.
``(C) Participation.--Each contractor and
subcontractor who employs 4 or more individuals to
perform construction, alteration, or repair work on an
applicable project shall employ 1 or more qualified
apprentices to perform such work.
``(D) Exception.--
``(i) In general.--Notwithstanding any
other provision of this paragraph, this
paragraph shall not apply in the case of a
taxpayer who--
``(I) demonstrates a lack of
availability of qualified apprentices
in the geographic area of the
construction, alteration, or repair
work, and
``(II) makes a good faith effort to
comply with the requirements of this
paragraph.
``(ii) Good faith effort.--For purposes of
clause (i), a taxpayer shall be deemed to have
satisfied the requirements under such paragraph
with respect to an applicable project if such
taxpayer has requested qualified apprentices
from a registered apprenticeship program, as
defined in section 3131(e)(3)(B), and such
request has been denied, provided that such
denial is not the result of a refusal by the
contractors or subcontractors engaged in the
performance of construction, alteration, or
repair work on such applicable project to
comply with the established standards and
requirements of such apprenticeship program.
``(E) Definitions.--For purposes of this
paragraph--
``(i) Labor hours.--The term `labor hours'
has the meaning given such term in section
45(b)(9)(E)(i).
``(ii) Qualified apprentice.--The term
`qualified apprentice' has the meaning given
such term in section 45(b)(9)(E)(ii).
``(11) Domestic content bonus credit amount.--
``(A) In general.--In the case of any energy
project which satisfies the requirements under
subparagraph (B), the energy percentage in subsection
(a)(2) shall be increased by the applicable rate in
subparagraph (C).
``(B) Requirements.--
``(i) In general.--The requirement
described in this subclause with respect to any
energy project is satisfied if the taxpayer
certifies to the Secretary (at such time, and
in such form and manner, as the Secretary may
prescribe) that the facility is composed of
steel, iron, or manufactured products which
were produced in the United States.
``(ii) Steel and iron.--In the case of
steel or iron, clause (i) shall be applied in a
manner consistent with section 661.5(b) of
title 49, Code of Federal Regulations.
``(iii) Manufactured product.--For purposes
of clause (i), a manufactured product shall be
deemed to have been manufactured in the United
States if not less than 55 percent of the total
cost of the components of such product is
attributable to components which are mined,
produced, or manufactured in the United States.
``(C) Applicable rate increase.--For purposes of
subparagraph (A), the applicable credit rate increase
shall be an amount equal to--
``(i) in the case of energy project that
does not meet the requirements of subclause (I)
or (III) of paragraph (8)(B)(ii), 2 percentage
points, and
``(ii) in the case of energy property that
meets the requirements of subclause (I) or
(III) of paragraph (8)(B)(ii), 10 percentage
points.
``(D) International agreements.--This paragraph
shall be applied in a manner which is consistent with
the obligations of the United States under
international agreements.
``(12) Penalty for direct pay.--
``(A) In general.--In the case of a taxpayer making
an election under section 6417 with respect to a credit
under this section, the amount of such credit shall be
replaced with--
``(i) the value of such credit (determined
without regard to this paragraph), multiplied
by
``(ii) the applicable percentage.
``(B) 100 percent applicable percentage for certain
energy projects.--In the case of any energy project--
``(i) which satisfies the requirements
under paragraph (11) with respect to the
construction of such project, or
``(ii) with a maximum net output of less
than 1 megawatt
the applicable percentage shall be 100 percent.
``(C) Phased domestic content requirement.--Subject
to subparagraph (D), in the case of any energy project
which is not described in subparagraph (B), the
applicable percentage shall be--
``(i) if construction of such project began
before January 1, 2024, 100 percent,
``(ii) if construction of such project
began in calendar year 2024, 90 percent,
``(iii) if construction of such project
began in calendar year 2025, 85 percent, and
``(iv) if construction of such project
began after December 31, 2025, 0 percent.
``(D) Exceptions.--In order to facilitate the use
of amounts made available in this section, increase the
tax incentives for investment in clean energy, and grow
the domestic supply chains, the Secretary shall provide
appropriate exceptions to the domestic content
requirements for products under subparagraph (C) for
the construction of qualified facilities if either the
inclusion of domestic products increases the overall
costs of projects by more than 25 percent or relevant
manufactured products are not produced in the United
States in sufficient and reasonably available
quantities or of a satisfactory quality.
``(13) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary determines
necessary or appropriate to carry out the purposes of this
subsection.''.
(i) Effective Dates.--
(1) The amendments made by subsections (a), (b), (c), (e),
(f), (g), and (h) of this section shall apply to property
placed in service after December 31, 2021.
(2) The amendment made by subsection (d) shall apply to
periods after December 31, 2021, under rules similar to the
rules of section 48(m) of the Internal Revenue Code of 1986 (as
in effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990).
SEC. 136103. INCREASE IN ENERGY CREDIT FOR SOLAR FACILITIES PLACED IN
SERVICE IN CONNECTION WITH LOW-INCOME COMMUNITIES.
(a) In General.--Section 48 is amended by adding at the end the
following new subsection:
``(e) Special Rules for Certain Solar Facilities Placed in Service
in Connection With Low-income Communities.--
``(1) In general.--In the case of any qualified solar
facility with respect to which the Secretary, after
consultation with the Secretary of Energy and the Administrator
of the Environmental Protection Agency, makes an allocation of
environmental justice solar capacity limitation under paragraph
(4)--
``(A) equipment described in paragraph (3)(B) shall
be treated for purposes of this section as energy
property described in subsection (a)(2)(A)(i),
``(B) the energy percentage otherwise determined
under subsection (a)(2) with respect to any eligible
property which is part of such facility shall be
increased by--
``(i) in the case of a facility described
in subclause (I) of paragraph (2)(A)(iii) and
not described in subclause (II) of such
paragraph, 10 percentage points, and
``(ii) in the case of a facility described
in subclause (II) of paragraph (2)(A)(iii), 20
percentage points, and
``(C) the increase in the credit determined under
subsection (a) by reason of this subsection for any
taxable year with respect to all property which is part
of such facility shall not exceed the amount which
bears the same ratio to the amount of such increase
(determined without regard to this subparagraph) as--
``(i) the environmental justice solar
capacity limitation allocated to such facility,
bears to
``(ii) the total megawatt nameplate
capacity of such facility, as measured in
direct current.
``(2) Qualified solar facility.--For purposes of this
subsection--
``(A) In general.--The term `qualified solar
facility' means any facility--
``(i) which generates electricity solely
from property described in subsection
(a)(3)(A)(i),
``(ii) which has a nameplate capacity of 5
megawatts or less, and
``(iii) which--
``(I) is located in a low-income
community (as defined in section
45D(e)), or
``(II) is part of a qualified low-
income residential building project or
a qualified low-income economic benefit
project.
``(B) Qualified low-income residential building
project.--A facility shall be treated as part of a
qualified low-income residential building project if--
``(i) such facility is installed on a
residential rental building which participates
in a covered housing program (as defined in
section 41411(a) of the Violence Against Women
Act of 1994 (34 U.S.C. 12491(a)(3)), a Housing
Development Fund Corporation cooperative under
Article XI of the New York State Private
Housing Finance Law, a housing assistance
program administered by the Department of
Agriculture under title V of the Housing Act of
1949, or such other affordable housing programs
as the Secretary may provide, and
``(ii) the financial benefits of the
electricity produced by such facility are
allocated equitably among the occupants of the
dwelling units of such building.
``(C) Qualified low-income economic benefit
project.--A facility shall be treated as part of a
qualified low-income economic benefit project if at
least 50 percent of the financial benefits of the
electricity produced by such facility are provided to
households with income of--
``(i) less than 200 percent of the poverty
line applicable to a family of the size
involved, or
``(ii) less than 80 percent of area median
gross income (as determined under section
142(d)(2)(B)).
``(D) Financial benefit.--For purposes of
subparagraphs (B) and (C), electricity acquired at a
below-market rate shall not fail to be taken into
account as a financial benefit.
``(3) Eligible property.--
``(A) In general.--For purposes of this section,
the term `eligible property' means--
``(i) energy property which is described in
subsection (a)(3)(A)(i), including energy
storage property (described in subsection
(a)(3)(A)(viii)) installed in connection with
such energy property, and
``(ii) the amount of any expenditures which
are paid or incurred by the taxpayer for
qualified interconnection property installed in
connection with the installation of property
described in subparagraph (A) to provide for
the transmission or distribution of the
electricity produced or stored by such
property, and which are properly chargeable to
the capital account of the taxpayer.
``(B) Definitions.--For purposes of subparagraph
(A)--
``(i) Qualified interconnection property.--
The term `qualified interconnection property'
means, with respect to a qualified facility
which is not a microgrid, any tangible
property--
``(I) which is part of an addition,
modification, or upgrade to a
transmission or distribution system
which is required at or beyond the
point at which the qualified facility
interconnects to such transmission or
distribution system in order to
accommodate such interconnection,
``(II) either--
``(aa) which is
constructed, reconstructed, or
erected by the taxpayer, or
``(bb) for which the cost
with respect to the
construction, reconstruction,
or erection of such property is
paid or incurred by such
taxpayer, and
``(III) the original use of which,
pursuant to an interconnection
agreement, commences with the utility.
``(ii) Interconnection agreement.--The term
`interconnection agreement' means an agreement
with a utility for the purposes of
interconnecting the qualified facility owned by
such taxpayer to the transmission or
distribution system of such utility.
``(iii) Utility.--The term `utility' means
the owner or operator of an electrical
transmission or distribution system which is
subject to the regulatory authority of--
``(I) the Federal Energy Regulatory
Commission, or
``(II) a State or political
subdivision thereof, any agency or
instrumentality of the United States, a
public service or public utility
commission or other similar body of any
State or political subdivision thereof,
or the governing or ratemaking body of
an electric cooperative.
``(C) Special rule for interconnection property.--
In the case of expenses paid or incurred for
interconnection property, amounts otherwise chargeable
to capital account with respect to such expenses shall
be reduced under rules similar to the rules of section
50(c).
``(4) Allocations.--
``(A) In general.--Not later than 180 days after
the date of enactment of this subsection, the Secretary
shall establish a program to allocate amounts of
environmental justice solar capacity limitation to
qualified solar facilities.
``(B) Limitation.--The amount of environmental
justice solar capacity limitation allocated by the
Secretary under subparagraph (A) during any calendar
year shall not exceed the annual capacity limitation
with respect to such year.
``(C) Annual capacity limitation.--For purposes of
this paragraph, the term `annual capacity limitation'
means 1.8 gigawatts of direct current capacity for each
of calendar years 2022 through 2031, and zero
thereafter.
``(D) Carryover of unused limitation.--If the
annual capacity limitation for any calendar year
exceeds the aggregate amount allocated for such year
under this paragraph, such limitation for the
succeeding calendar year shall be increased by the
amount of such excess. No amount may be carried under
the preceding sentence to any calendar year after 2033.
``(E) Placed in service deadline.--
``(i) In general.--Paragraph (1) shall not
apply with respect to any property which is
placed in service after the date that is 4
years after the date of the allocation with
respect to the facility of which such property
is a part.
``(ii) Application of carryover.--Any
amount of environmental justice solar capacity
limitation which expires under clause (i)
during any calendar year shall be taken into
account as an excess described in subparagraph
(D) (or as an increase in such excess) for such
calendar year, subject to the limitation
imposed by the last sentence of such
subparagraph.
``(F) Selection criteria.--In determining to which
qualified solar facilities to allocate environmental
justice solar capacity limitation under this paragraph,
the Secretary shall take into consideration which
facilities will result in--
``(i) the greatest health and economic
benefits, including the ability to withstand
extreme weather events, for individuals
described in section 45D(e)(2),
``(ii) the greatest employment and wages
for such individuals, and
``(iii) the greatest engagement with,
outreach to, or ownership by, such individuals,
including through partnerships with local
governments and community-based organizations.
``(G) Disclosure of allocations.--The Secretary
shall, upon making an allocation of environmental
justice solar capacity limitation under this paragraph,
publicly disclose the identity of the applicant, the
amount of the environmental justice solar capacity
limitation allocated to such applicant, and the
location of the facility for which such allocation is
made.
``(5) Recapture.--The Secretary shall, by regulations or
other guidance, provide for recapturing the benefit of any
increase in the credit allowed under subsection (a) by reason
of this subsection with respect to any property which ceases to
be property eligible for such increase (but which does not
cease to be investment credit property within the meaning of
section 50(a)). The period and percentage of such recapture
shall be determined under rules similar to the rules of section
50(a). To the extent provided by the Secretary, such recapture
may not apply with respect to any property if, within 12 months
after the date the taxpayer becomes aware (or reasonably should
have become aware) of such property ceasing to be property
eligible for such increase, the eligibility of such property
for such increase is restored. The preceding sentence shall not
apply more than once with respect to any facility.''.
(b) Effective Date.--The amendments made by this section shall
apply to periods after December 31, 2021, under rules similar to the
rules of section 48(m) of the Internal Revenue Code of 1986 (as in
effect on the day before the date of the enactment of the Revenue
Reconciliation Act of 1990).
SEC. 136104. ELECTIVE PAYMENT FOR ENERGY PROPERTY AND ELECTRICITY
PRODUCED FROM CERTAIN RENEWABLE RESOURCES, ETC.
(a) In General.--Subchapter B of chapter 65 is amended by inserting
after section 6416 the following new section:
``SEC. 6417. ELECTIVE PAYMENT OF APPLICABLE CREDITS.
``(a) In General.--In the case of a taxpayer making an election (at
such time and in such manner as the Secretary may provide) under this
section with respect to any applicable credit determined with respect
to such taxpayer, such taxpayer shall be treated as making a payment
against the tax imposed by subtitle A (for the taxable year with
respect to which such credit was determined) equal to the amount of
such credit.
``(b) Applicable Credit.--The term `applicable credit' means each
of the following:
``(1) The renewable electricity production credit
determined under section 45.
``(2) The energy credit determined under section 48.
``(3) The credit for carbon oxide sequestration determined
under section 45Q.
``(4) The credit for alternative fuel vehicle refueling
property allowed under section 30C.
``(5) The qualifying advanced energy project credit
determined under section 48C.
``(c) Special Rules.--For purposes of this section--
``(1) Application to tax-exempt and governmental
entities.--In the case of any organization exempt from the tax
imposed by subtitle A, any State or local government (or
political subdivision thereof), or any Indian tribal government
(within the meaning of section 139E), which makes the election
described in subsection (a), any applicable credit shall be
determined--
``(A) without regard to paragraphs (3) and
(4)(A)(i) of section 50(b), and
``(B) by treating any property with respect to
which such credit is determined as used in a trade or
business of the taxpayer.
``(2) Application to partnerships and s corporations.--
``(A) In general.--In the case of any applicable
credit determined with respect to any qualified
resources, qualified facility, or energy property held
directly by a partnership or S corporation, if such
partnership or S corporation makes an election under
this subsection (in such manner as the Secretary may
provide) with respect to such credit--
``(i) the Secretary shall make a payment to
such partnership or S corporation equal to the
amount of such credit,
``(ii) subsection (d) shall be applied with
respect to such credit before determining any
partner's distributive share, or shareholder's
pro rata share, of such credit,
``(iii) any amount with respect to which
the election in subsection (a) is made shall be
treated as tax exempt income for purposes of
sections 705 and 1366, and
``(iv) a partner's distributive share of
such tax exempt income shall be based on such
partner's distributive share of the otherwise
applicable credit for each taxable year.
``(B) Coordination with application at partner or
shareholder level.--In the case of any partnership or S
corporation, subsection (a) shall be applied at the
partner or shareholder level after application of
paragraph (2)(A)(ii).
``(3) Irrevocable election.--Any election under this
subsection shall be made not later than the due date (including
extensions of time) for the return of tax for the taxable year
for which the applicable credit is determined, but in no event
earlier than 180 days after the date of the enactment of this
section. Any such election, once made, shall be irrevocable.
``(4) Timing.--The payment described in subsection (a)
shall be treated as made on--
``(A) in the case of any government, or political
subdivision, described in paragraph (1) and for which
no return is required under section 6011 or 6033(a),
the later of the date that a return would be due under
section 6033(a) if such government or subdivision were
described in that section or the date on which such
government or subdivision submits a claim for credit or
refund (at such time and in such manner as the
Secretary shall provide), and
``(B) in any other case, the later of the due date
of the return of tax for the taxable year or the date
on which such return is filed.
``(5) Treatment of payments to partnerships and s
corporations.--For purposes of section 1324 of title 31, United
States Code, the payments under subparagraph (A)(ii) of
paragraph (2) shall be treated in the same manner as a refund
due from a credit provision referred to in subparagraph (B) of
such paragraph.
``(6) Additional information.--As a condition of, and prior
to, a payment under this section, the Secretary may require
such information or registration as the Secretary deems
necessary or appropriate for purposes of preventing
duplication, fraud, improper payments, or excessive payments
under this section.
``(7) Excessive payment.--
``(A) In general.--In the case of a payment made to
a taxpayer under this subsection or any amount treated
as a payment which is made by the taxpayer under
subsection (a) which the Secretary determines
constitutes an excessive payment, the tax imposed on
such taxpayer by chapter 1 for the taxable year in
which such determination is made shall be increased by
an amount equal to the sum of--
``(i) the amount of such excessive payment,
plus
``(ii) an amount equal to 20 percent of
such excessive payment.
``(B) Reasonable cause.--Subparagraph (A)(ii) shall
not apply if the taxpayer demonstrates to the
satisfaction of the Secretary that the excessive
payment resulted from reasonable cause.
``(C) Excessive payment defined.--For purposes of
this paragraph, the term `excessive payment' means,
with respect to a facility for which an election is
made under this section for any taxable year, an amount
equal to the excess of--
``(i) the amount of the payment made to the
taxpayer under this subsection with respect to
such facility for such taxable year, over
``(ii) the amount of the credit which,
without application of this subsection, would
be otherwise allowable under this section with
respect to such facility for such taxable year.
``(d) Denial of Double Benefit.--In the case of a taxpayer making
an election under this section with respect to an applicable credit,
such credit shall be reduced to zero and such taxpayer shall be deemed
to have taken such credit.
``(e) Mirror Code Possessions.--In the case of any possession of
the United States with a mirror code tax system (as defined in section
24(k)), this section shall not be treated as part of the income tax
laws of the United States for purposes of determining the income tax
law of such possession unless such possession elects to have this
section be so treated.
``(f) Basis Reduction and Recapture.--Rules similar to the rules of
subsections (a) and (c) of section 50 shall apply for purposes of this
section.
``(g) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section, including--
``(1) regulations or other guidance providing rules for
determining a partner's distributive share of the tax exempt
income described in subsection (c)(2)(A)(iii), and
``(2) guidance to ensure that the amount of the payment or
deemed payment made under this section is commensurate with the
amount of the credit that would be otherwise allowable.''.
(b) Clerical Amendment.--The table of sections for subchapter B of
chapter 65 is amended by inserting after the item relating to section
6416 the following new item:
``Sec. 6417. Elective payment of applicable credits.''.
(c) In General.--The amendments made by this section shall apply to
property placed in service after the December 31, 2021.
SEC. 136105. INVESTMENT CREDIT FOR ELECTRIC TRANSMISSION PROPERTY.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
is amended by inserting after section 48C the following new section:
``SEC. 48D. QUALIFYING ELECTRIC TRANSMISSION PROPERTY.
``(a) Allowance of Credit.--For purposes of section 46, the
qualifying electric transmission property credit for any taxable year
is an amount equal to 30 percent of the basis of qualifying electric
transmission property placed in service by the taxpayer during such
taxable year.
``(b) Qualifying Electric Transmission Property.--For purposes of
this section--
``(1) In general.--The term `qualifying electric
transmission property' means tangible property--
``(A) which is a qualifying electric transmission
line or related transmission property,
``(B)(i) the construction, reconstruction, or
erection of which is completed by the taxpayer, or
``(ii) which is acquired by the taxpayer if the
original use of such property commences with the
taxpayer, and
``(C) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable.
``(2) Qualifying electric transmission line.--The term
`qualifying electric transmission line' means an electric
transmission line which--
``(A) is capable of transmitting electricity at a
voltage of not less than 275 kilovolts, and
``(B) has a transmission capacity of not less than
500 megawatts.
``(3) Related transmission property.--
``(A) In general.--The term `related transmission
property' means, with respect to any electric
transmission line, any property which--
``(i) is listed as `transmission plant' in
the Uniform System of Accounts for the Federal
Energy Regulatory Commission under part 101 of
subchapter C of chapter I of title 18, Code of
Federal Regulations, and
``(ii) is necessary for the operation of
such electric transmission line.
``(B) Credit not allowed separately with respect to
related property.--No credit shall be allowed to any
taxpayer under this section with respect to any related
transmission property unless such taxpayer is allowed a
credit under this section with respect to the
qualifying electric transmission line to which such
related transmission property relates.
``(c) Application to Replacement and Upgraded Systems.--
``(1) In general.--In the case of any qualifying electric
transmission line (determined without regard to this
subsection) which replaces any existing electric transmission
line--
``(A) the 500 megawatts referred to in subsection
(b)(2)(B) shall be increased by the transmission
capacity of such existing electric transmission line,
and
``(B) in no event shall the basis of such existing
electric transmission line (or related transmission
property with respect to such existing electric
transmission line) be taken into account in determining
the credit allowed under this section.
``(2) Upgrades treated as replacements.--For purposes of
this subsection, any upgrade of an existing electric
transmission line shall be treated as a replacement of such
line.
``(d) Exception for Certain Property and Projects Already in
Process.--No credit shall be allowed under this section with respect
to--
``(1) any property if a State or political subdivision
thereof, any agency or instrumentality of the United States, a
public service or public utility commission or other similar
body of any State or political subdivision thereof, or the
governing or ratemaking body of an electric cooperative has,
before the date of the enactment of this section, selected for
cost allocation such property for cost recovery, or
``(2) any property if--
``(A) construction of such property begins before
January 1, 2022, or
``(B) construction of any portion of the qualifying
electric transmission line to which such property
relates begins before such date.
``(e) Certain Qualified Progress Expenditures Rules Made
Applicable.--Rules similar to the rules of subsections (c)(4) and (d)
of section 46 (as in effect on the day before the enactment of the
Revenue Reconciliation Act of 1990) shall apply for purposes of this
section.
``(f) Credit Adjustments; Wage and Apprenticeship Requirements.--
``(1) Base credit amount and increased credit amount for
applicable facilities.--
``(A) In general.--
``(i) Rule.--In the case of any applicable
facility which does not satisfy the
requirements of subparagraph (B), the amount of
the credit determined under this subsection
shall be 20 percent of such amount (determined
without regard to this sentence).
``(ii) Applicable facility defined.--For
purposes of this subsection, the term
`applicable facility' means a qualifying
electric transmission line and related
transmission property to which such qualifying
electric transmission line relates.
``(B) Increased credit for applicable facility
meeting project requirements.--
``(i) In general.--In the case of any
applicable facility which meets the project
requirements of this subparagraph, subparagraph
(A) shall not apply.
``(ii) Project requirements.--A project
meets the requirements of this subparagraph if
it is one of the following:
``(I) A project with a maximum net
output of less than 1 megawatt.
``(II) A project which commences
construction prior to the date of the
enactment of this paragraph.
``(III) A project which satisfies
the requirements of paragraphs (2) and
(3).
``(2) Prevailing wage requirements.--
``(A) In general.--The requirements described in
this subparagraph with respect to any applicable
facility are that the taxpayer shall ensure that any
laborers and mechanics employed by contractors and
subcontractors in--
``(i) the construction of such facility,
and
``(ii) for any year during the 5-year
period beginning on the date the facility or
property is originally placed in service, the
alteration or repair of such facility or
property,
shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or
repair of a similar character in the locality as most
recently determined by the Secretary of Labor, in
accordance with subchapter IV of chapter 31 of title
40, United States Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--A taxpayer shall not be
treated as failing to satisfy the requirements of this
paragraph if such taxpayer meets requirements similar
to the requirements of section 45(b)(8)(B).
``(3) Apprenticeship requirements.--The requirements
described in this subparagraph with respect to the construction
of any applicable facility are as follows:
``(A) Labor hours.--
``(i) Percentage of total labor hours.--All
contractors and subcontractors engaged in the
performance of construction, alteration, or
repair work on any applicable facility prior to
such facility being placed into service shall,
subject to subparagraph (B), ensure that not
less than the applicable percentage of the
total labor hours of such work be performed by
qualified apprentices.
``(ii) Applicable percentage.--For purposes
of paragraph (1), the applicable percentage
shall be--
``(I) in the case of any applicable
project the construction of which
begins before January 1, 2023, 5
percent,
``(II) in the case of any
applicable project the construction of
which begins after December 31, 2022,
and before January 1, 2024, 10 percent,
and
``(III) in the case of any
applicable project the construction of
which begins after December 31, 2023,
15 percent.
``(B) Apprentice to journeyworker ratio.--The
requirement under subparagraph (A)(i) shall be subject
to any applicable requirements for apprentice-to-
journeyworker ratios of the Department of Labor or the
applicable State apprenticeship agency.
``(C) Participation.--Each contractor and
subcontractor who employs 4 or more individuals to
perform construction, alteration, or repair work on an
applicable project shall employ 1 or more qualified
apprentices to perform such work.
``(D) Exception.--
``(i) In general.--Notwithstanding any
other provision of this paragraph, this
paragraph shall not apply in the case of a
taxpayer who--
``(I) demonstrates a lack of
availability of qualified apprentices
in the geographic area of the
construction, alteration, or repair
work, and
``(II) makes a good faith effort to
comply with the requirements of this
paragraph.
``(ii) Good faith effort.--For purposes of
clause (i), a taxpayer shall be deemed to have
satisfied the requirements under such paragraph
with respect to an applicable project if such
taxpayer has requested qualified apprentices
from a registered apprenticeship program, as
defined in section 3131(e)(3)(B), and such
request has been denied, provided that such
denial is not the result of a refusal by the
contractors or subcontractors engaged in the
performance of construction, alteration, or
repair work on such applicable project to
comply with the established standards and
requirements of such apprenticeship program.
``(E) Definitions.--For purposes of this
paragraph--
``(i) Labor hours.--The term `labor hours'
has the meaning given such term in section
45(b)(9)(E)(i).
``(ii) Qualified apprentice.--The term
`qualified apprentice' has the meaning given
such term in section 45(b)(9)(E)(ii).
``(4) Domestic content bonus credit amount.--
``(A) In general.--In the case of any applicable
facility which satisfies the requirements under
subparagraph (B), the credit determined under
subsection (a) shall be increased by the applicable
rate in subparagraph (C).
``(B) Requirements.--
``(i) In general.--The requirement
described in this subclause with respect to any
applicable facility is satisfied if the
taxpayer certifies to the Secretary (at such
time, and in such form and manner, as the
Secretary may prescribe) that the facility is
composed of steel, iron, or manufactured
products which were produced in the United
States.
``(ii) Steel and iron.--In the case of
steel or iron, clause (i) shall be applied in a
manner consistent with section 661.5(b) of
title 49, Code of Federal Regulations.
``(iii) Manufactured product.--For purposes
of clause (i), a manufactured product shall be
deemed to have been manufactured in the United
States if not less than 55 percent of the total
cost of the components of such product is
attributable to components which are mined,
produced, or manufactured in the United States.
``(C) Applicable rate increase.--For purposes of
subparagraph (A), the applicable credit rate increase
shall be an amount equal to--
``(i) in the case of applicable facility
that does not meet the requirements of
subclause (I) or (III) of paragraph (1)(B)(ii),
2 percentage points, and
``(ii) in the case of applicable facility
that meets the requirements of subclause (I) or
(III) of paragraph (1)(B)(ii), 10 percentage
points.
``(D) International agreements.--This paragraph
shall be applied in a manner which is consistent with
the obligations of the United States under
international agreements.
``(5) Penalty for direct pay.--
``(A) In general.--In the case of a taxpayer making
an election under section 6417 with respect to a credit
under this section, the amount of such credit shall be
replaced with--
``(i) the value of such credit (determined
without regard to this paragraph), multiplied
by
``(ii) the applicable percentage.
``(B) 100 percent applicable percentage for certain
applicable facility.--In the case of any applicable
facility--
``(i) which satisfies the requirements
under paragraph (11) with respect to the
construction of such property, or
``(ii) with a maximum net output of less
than 1 megawatt,
the applicable percentage shall be 100 percent.
``(C) Phased domestic content requirement.--Subject
to subparagraph (D), in the case of any qualified
facility which is not described in subparagraph (B),
the applicable percentage shall be--
``(i) if construction of such facility
began before January 1, 2024, 100 percent,
``(ii) if construction of such facility
began in calendar year 2024, 90 percent,
``(iii) if construction of such facility
began in calendar year 2025, 85 percent, and
``(iv) if construction of such facility
began after December 31, 2025, 0 percent.
``(D) Exceptions.--In order to facilitate the use
of amounts made available in this section, increase the
tax incentives for investment in clean energy, and grow
the domestic supply chains, the Secretary shall provide
appropriate exceptions to the domestic content
requirements for products under subparagraph (C) for
the construction of qualified facilities if either the
inclusion of domestic products increases the overall
costs of projects by more than 25 percent or relevant
manufactured products are not produced in the United
States in sufficient and reasonably available
quantities or of a satisfactory quality.
``(g) Termination.--This section shall not apply to any property
unless--
``(1) such property is placed in service before January 1,
2032, and
``(2) the qualifying electric transmission line with
respect to which such property relates is placed in service
before such date.
``(h) Regulations and Guidance.--The Secretary, after consultation
with the Chairman of the Federal Energy Regulatory Commission, shall
issue such regulations or other guidance as the Secretary determines
necessary or appropriate to carry out the purposes of this section.''.
(b) Elective Payment of Credit.--Section 6417(b), as added by the
preceding provisions of this Act, is amended by adding at the end the
following new paragraph:
``(6) The qualifying electric transmission property credit
determined under section 48D.''.
(c) Conforming Amendments.--
(1) Section 46 is amended--
(A) by striking ``and'' at the end of paragraph
(5),
(B) by striking the period at the end of paragraph
(6) and inserting ``, and'', and
(C) by adding at the end the following new
paragraph:
``(7) the qualifying electric transmission property
credit.''.
(2) Section 49(a)(1)(C) is amended--
(A) by striking ``and'' at the end of clause (iv),
(B) by striking the period at the end of clause (v)
and inserting ``, and'', and
(C) by adding at the end the following new clause:
``(vi) the basis of any qualifying electric
transmission property under section 48D.''.
(3) Section 50(a)(2)(E) is amended by striking ``or
48C(b)(2)'' and inserting ``48C(b)(2), or 48D''.
(4) The table of sections for subpart E of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 48C the following new item:
``Sec. 48D. Qualifying electric transmission property.''.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to property placed in service after December 31, 2021.
(2) Exception for certain property and projects already in
process.--For exclusion of certain property and projects
already in process, see section 48D(d) of the Internal Revenue
Code of 1986 (as added by this section).
SEC. 136106. ZERO EMISSIONS FACILITY CREDIT.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
is amended by inserting after section 48C the following new section:
``SEC. 48E. ZERO EMISSIONS FACILITY CREDIT.
``(a) In General.--For purposes of section 46, the zero emissions
facility credit for any taxable year is an amount equal to 30 percent
of the qualified investment for such taxable year with respect to any
zero emissions facility of the taxpayer.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment for any taxable year is the basis of
eligible property placed in service by the taxpayer during such
taxable year which is part of a zero emissions facility.
``(2) Certain qualified progress expenditures rules made
applicable.--Rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of this section.
``(3) Limitation.--The amount which is treated as the
qualified investment for all taxable years with respect to any
zero emissions facility shall not exceed the amount designated
by the Secretary as eligible for the credit under this section.
``(c) Zero Emissions Facility.--
``(1) In general.--For purposes of this section, the term
`zero emissions facility' means any facility--
``(A) which generates electricity,
``(B) which does not generate any greenhouse gases
(within the meaning of section 211(o)(1)(G) of the
Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect
on the date of the enactment of this section),
``(C) which uses a technology or process which, in
the calendar year in which an amount of credit is
designated with respect to such facility, achieved a
market penetration level of less than 3 percent,
``(D) no portion of which is--
``(i) a qualified facility (as defined in
section 45(d)),
``(ii) an advanced nuclear power facility
(as defined in section 45J(d)),
``(iii) a qualified facility (as defined in
section 45Q), or
``(iv) energy property (as defined in
section 48(a)(3)).
``(2) Market penetration level.--For purposes of this
subsection, the term `market penetration level' means, with
respect to any calendar year, the amount equal to the greater
of--
``(A) the amount (expressed as a percentage) equal
to the quotient of--
``(i) the sum of all electricity produced
(expressed in terawatt hours) from the
technology or method used for the production of
electricity by all electricity generating
facilities in the United States during such
calendar year (as determined by the Secretary
on the basis of data reported by the Energy
Information Administration), divided by the
total domestic power sector electricity
production (expressed in terawatt hours) for
such calendar year, or
``(ii) the amount determined under this
subparagraph for the preceding calendar year
with respect to such technology or method.
``(d) Eligible Property.--For purposes of this section, the term
`eligible property' means any property--
``(1) which is necessary for the generation of electricity,
``(2) which is--
``(A) tangible personal property, or
``(B) other tangible property (not including a
building or its structural components), but only if
such property is used as an integral part of the zero
emissions facility, and
``(3) with respect to which depreciation (or amortization
in lieu of depreciation) is allowable.
``(e) Allocations.--
``(1) In general.--Not later than 180 days after the date
of enactment of this section, the Secretary, after consultation
with the Secretary of Energy and the Administrator of the
Environmental Protection Agency, shall establish a program to
consider and award certification amounts of zero emissions
facility credit limitation to zero emissions facilities.
``(2) Annual limitation.--
``(A) In general.--The amount of zero emissions
facility credit limitation that may be designated under
this subsection during any calendar year shall not
exceed the annual credit limitation with respect to
such year.
``(B) Annual credit limitation.--For purposes of
this subsection, the term `annual credit limitation'
means $250,000,000 for each of calendar years 2022
through 2031, and zero thereafter.
``(C) Carryover of unused limitation.--If the
annual credit limitation for any calendar year exceeds
the aggregate amount designated for such year under
this subsection, such limitation for the succeeding
calendar year shall be increased by the amount of such
excess. No amount may be carried under the preceding
sentence to any calendar year after 2031.
``(3) Placed in service deadline.--
``(A) In general.--No credit shall be determined
under subsection (a) with respect to any zero emissions
facility which is placed in service after the date that
is 4 years after the date of the designation under this
subsection relating to such zero emissions facility.
``(B) Application of carryover.--Any amount of
credit which expires under subparagraph (A) during any
calendar year shall be taken into account as an excess
described in paragraph (2)(C) (or as an increase in
such excess) for such calendar, subject to the
limitation imposed by the last sentence of such
paragraph.
``(4) Selection criteria.--In determining which zero
emissions facilities to certify under this section, the
Secretary, after consultation with the Secretary of Energy and
the Administrator of the Environmental Protection Agency,
shall--
``(A) take into consideration which facilities--
``(i) will result in the greatest reduction
of greenhouse gas emissions,
``(ii) have the greatest potential for
technological innovation and commercial
deployment, and
``(iii) will result in the greatest
reduction of local environmental effects that
are harmful to human health, and
``(B) require that applicants provide written
assurances to the Secretary that all laborers and
mechanics employed by contractors and subcontractors in
the performance of construction, alteration or repair
work on a zero emissions facility shall be paid wages
at rates not less than those prevailing on projects of
a similar character in the locality as determined by
the Secretary of Labor in accordance with subchapter IV
of chapter 31 of title 40, United States Code.
``(5) Disclosure of certifications.--The Secretary shall,
upon making a certification under this subsection, publicly
disclose the identity of the applicant, the amount of the
credit awarded with respect to such applicant, and the location
of the zero-emissions facility for which such credit is
awarded.
``(f) Credit Conditioned Upon Wage and Apprenticeship
Requirements.--
``(1) In general.--No credit shall be allocated for a zero
emissions facility under this section unless the zero emissions
facility meets the prevailing wage requirements of paragraph
(2) and the apprenticeship requirements of paragraph (3).
``(2) Prevailing wage requirements.--
``(A) In general.--The requirements described in
this paragraph with respect to a zero emissions
facility are that the taxpayer shall ensure that any
laborers and mechanics employed by contractors and
subcontractors in--
``(i) the construction of such zero
emissions facility, and
``(ii) for any year during the 5-year
period beginning on the date the facility is
originally placed in service, the alteration or
repair of such zero emissions facility,
shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or
repair of a similar character in the locality as most
recently determined by the Secretary of Labor, in
accordance with subchapter IV of chapter 31 of title
40, United States Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--
``(i) In general.--In the case of any
taxpayer which fails to satisfy the requirement
under subparagraph (A) with respect to the
construction of any qualified facility or with
respect to the alteration or repair of a
facility in any year during the period
described in subparagraph (A)(ii), such
taxpayer shall be deemed to have satisfied such
requirement under such subparagraph with
respect to such zero emissions facility for any
year if, with respect to any laborer or
mechanic who was paid wages at a rate below the
rate described in such subparagraph for any
period during such year, such taxpayer--
``(I) makes payment to such laborer
or mechanic in an amount equal to the
sum of--
``(aa) an amount equal to
the difference between the
amount of wages paid to such
laborer or mechanic during such
period, and--
``(bb) the amount of wages
required to be paid to such
laborer or mechanic pursuant to
such subparagraph during such
period, plus
``(AA) interest on
the amount determined
under item (aa) at the
underpayment rate
established under
section 6621 for the
period described in
such item, and
``(II) makes payment to the
Secretary of a penalty in an amount
equal to the product of--
``(aa) $5,000, multiplied
by
``(bb) the total number of
laborers and mechanics who were
paid wages at a rate below the
rate described in subparagraph
(A) for any period during such
year.
``(ii) Penalty assessed as tax.--The
penalty described in clause (i)(II) shall be
treated in the same manner as a penalty imposed
under subchapter B of chapter 68.
``(3) Apprenticeship requirements.--The requirements
described in this subparagraph with respect to a zero emissions
facility are as follows:
``(A) Labor hours.--
``(i) Percentage of total labor hours.--All
contractors and subcontractors engaged in the
performance of construction, alteration, or
repair work on any facility prior to such
facility being placed into service shall,
subject to subparagraph (B), ensure that not
less than the applicable percentage of the
total labor hours of such work be performed by
qualified apprentices.
``(ii) Applicable percentage.--For purposes
of paragraph (1), the applicable percentage
shall be--
``(I) in the case of any applicable
zero emissions facility the
construction of which begins before
January 1, 2023, 5 percent,
``(II) in the case of any
applicable zero emissions facility the
construction of which begins after
December 31, 2022, and before January
1, 2024, 10 percent, and
``(III) in the case of any
applicable zero emissions facility the
construction of which begins after
December 31, 2023, 15 percent.
``(B) Apprentice to journeyworker ratio.--The
requirement under subparagraph (A)(i) shall be subject
to any applicable requirements for apprentice-to-
journeyworker ratios of the Department of Labor or the
applicable State apprenticeship agency.
``(C) Participation.--Each contractor and
subcontractor who employs 4 or more individuals to
perform construction, alteration, or repair work on an
applicable zero emissions facility shall employ 1 or
more qualified apprentices to perform such work.
``(D) Exception.--
``(i) In general.--Notwithstanding any
other provision of this paragraph, this
paragraph shall not apply in the case of a
taxpayer who--
``(I) demonstrates a lack of
availability of qualified apprentices
in the geographic area of the
construction, alteration, or repair
work, and
``(II) makes a good faith effort to
comply with the requirements of this
paragraph.
``(ii) Good faith effort.--For purposes of
clause (i), a taxpayer shall be deemed to have
satisfied the requirements under such paragraph
with respect to an applicable project if such
taxpayer has requested qualified apprentices
from a registered apprenticeship program, as
defined in section 3131(e)(3)(B), and such
request has been denied, provided that such
denial is not the result of a refusal by the
contractors or subcontractors engaged in the
performance of construction, alteration, or
repair work on such applicable project to
comply with the established standards and
requirements of such apprenticeship program.
``(E) Definitions.--For purposes of this
paragraph--
``(i) Labor hours.--The term `labor
hours'--
``(I) means the total number of
hours devoted to the performance of
construction, alteration, or repair
work by employees of the contractor or
subcontractor prior to a facility being
placed into service, and
``(II) excludes any hours worked
by--
``(aa) foremen,
``(bb) superintendents,
``(cc) owners, or
``(dd) persons employed in
a bona fide executive,
administrative, or professional
capacity (within the meaning of
those terms in part 541 of
title 29, Code of Federal
Regulations).
``(ii Qualified apprentice.--The term
`qualified apprentice' has the meaning given
such term in section 45(b)(9)(E)(ii).
``(4) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary determines
necessary or appropriate to carry out the purposes of this
subsection.
``(5) Penalty for direct pay.--
``(A) In general.--In the case of a taxpayer making
an election under section 6417 with respect to a credit
under this section, the amount of such credit shall be
replaced with--
``(i) the value of such credit (determined
without regard to this paragraph), multiplied
by
``(ii) the applicable percentage.
``(B) 100 percent applicable percentage for certain
qualified facilities.--In the case of any qualified
facility--
``(i) which satisfies the requirements
under paragraph (5) with respect to the
construction of such facility, or
``(ii) with a maximum net output of less
than 1 megawatt,
the applicable percentage shall be 100 percent.
``(C) Phased domestic content requirement.--Subject
to subparagraph (D), in the case of any qualified
facility which is not described in subparagraph (B),
the applicable percentage shall be--
``(i) if construction of such facility
began before January 1, 2024, 100 percent,
``(ii) if construction of such facility
began in calendar year 2024, 90 percent,
``(iii) if construction of such facility
began in calendar year 2025, 85 percent, and
``(iv) if construction of such facility
began after December 31, 2025, 0 percent.
``(D) Exception.--If the Secretary, after
consultation with the Secretary of Commerce and the
United States Trade Representative, determines that,
for purposes of application of the requirements under
paragraph (5) with respect to the construction of the
qualified facility--
``(i) their application would be
inconsistent with the public interest,
``(ii) such materials and products are not
produced in the United States in sufficient and
reasonably available quantities and of a
satisfactory quality, or
``(iii) inclusion of domestic material will
increase the cost of the construction of the
qualified facility by more than 25 percent,
the applicable percentage shall be 100 percent.''.
(b) Elective Payment of Credit.--Section 6417(b), as added and
amended by the preceding provisions of this Act, is amended by adding
at the end the following new paragraph:
``(7) The zero emissions facility credit determined under
section 48E.''.
(c) Conforming Amendments.--
(1) Section 46 is amended by striking ``and'' at the end of
paragraph (6), by striking the period at the end of paragraph
(7) and inserting ``, and'', and by adding at the end the
following new paragraph:
``(8) the zero emissions facility credit.''.
(2) Section 49(a)(1)(C) is amended by striking ``and'' at
the end of clause (v), by striking the period at the end of
clause (vi) and inserting a comma, and by adding at the end the
following new clause:
``(vii) the basis of any eligible property
which is part of a zero emissions facility
under section 48D.''.
(3) Section 50(a)(2)(E) is amended by striking `` or 48D''
and inserting ``48D, or 48E(b)(2)''.
(4) The table of sections for subpart E of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 48D the following new item:
Sec. 48E. Zero emissions facility credit.
(d) Effective Date.--The amendments made by this section shall
apply to periods after December 31, 2021, under rules similar to the
rules of section 48(m) of the Internal Revenue Code of 1986 (as in
effect on the day before the date of the enactment of the Revenue
Reconciliation Act of 1990)
SEC. 136107. EXTENSION AND MODIFICATION OF CREDIT FOR CARBON OXIDE
SEQUESTRATION.
(a) Extension.--Section 45Q(d)(1) is amended by striking ``January
1, 2026'' and inserting ``January 1, 2032''.
(b) Modification of Carbon Oxide Capture Requirements.--Section
45Q(d)(2) is amended to read as follows:
``(2) which captures--
``(A) in the case of a direct air capture facility,
not less than 1,000 metric tons of qualified carbon
oxide during the taxable year,
``(B) in the case of an electricity generating
facility, not less than 18,750 metric tons of qualified
carbon oxide during the taxable year and not less than
75 percent of the carbon oxide that would otherwise be
released into the atmosphere by such facility during
such taxable year, and
``(C) in the case of any other facility, not less
than 12,500 metric tons of qualified carbon oxide
during the taxable year and not less than 50 percent of
the carbon oxide that would otherwise be released into
the atmosphere by such facility during such taxable
year.''.
(c) Determination of Applicable Dollar Amount.--
(1) In general.--Section 45Q(b)(1) is amended by
redesignating subparagraph (B) as subparagraph (C) and by
inserting after subparagraph (A) the following new
subparagraph:
``(B) Special rule for direct air capture
facilities.--For any taxable year beginning after
December 31, 2021, in the case of any qualified
facility described in subsection (d)(2)(C), the
applicable dollar amount shall be an amount equal to--
``(i) for purposes of paragraph (3) of
subsection (a), an amount equal to the product
of $180 and the inflation adjustment factor for
such calendar year determined under section
43(b)(3)(B) for such calendar year, determined
by substituting `2020' for `1990', and
``(ii) for purposes of paragraph (4) of
such subsection, an amount equal to the product
of $130 and the inflation adjustment factor for
such calendar year determined under section
43(b)(3)(B) for such calendar year, determined
by substituting `2020' for `1990'.''.
(2) Conforming amendments.--
(A) Section 45Q(b)(1)(A) is amended by striking
``The applicable dollar amount'' and inserting ``Except
as provided in subparagraph (B), the applicable dollar
amount''.
(B) Section 45Q(b)(1)(C), as redesignated by
subparagraph (A), is amended by striking ``subparagraph
(A)'' and inserting ``subparagraph (A) or (B)''.
(d) Wage and Apprenticeship Requirements.--Section 45Q is amended
by redesignating subsection (h) as subsection (i) and inserting after
subsection (g) following new subsection:
``(h) Base Credit Amount and Increased Credit Amount for Qualified
Facilities and Carbon Capture Equipment.--
``(1) In general.--In the case of any qualified facility
and any carbon capture equipment which does not satisfy the
requirements of paragraph (2), the amount of the credit
determined under subsection (a) shall be 20 percent of such
amount (determined without regard to this sentence).
``(2) Increased credit for certain facilities and carbon
capture equipment meeting project requirements.--
``(A) In general.--In the case of any qualified
facility and any carbon capture equipment placed in
service at such facility which meets the project
requirements of this subparagraph, subparagraph (A)
shall not apply.
``(B) Project requirements.--A project meets the
requirements of this subparagraph if it is one of the
following:
``(i) A qualified facility with a maximum
net output of less than 1 megawatt.
``(ii) A qualified facility or any carbon
capture equipment placed in service at such
facility which commences construction prior to
the date of the enactment of this paragraph.
``(iii) A project which satisfies the
requirements of paragraphs (3) and (4).
``(3) Prevailing wage requirements.--
``(A) In general.--The requirements described in
this subparagraph with respect to any qualified
facility and any carbon capture equipment placed in
service at such facility are that the taxpayer shall
ensure that any laborers and mechanics employed by
contractors and subcontractors in--
``(i) the construction of such facility and
carbon capture equipment,
``(ii) the alteration or repair of such
facility and carbon capture equipment during
the 12 year-period after being placed into
service, or for carbon capture equipment placed
in service prior to 2018, until the date
determined by the Secretary under subsection
(g),
shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or
repair of a similar character in the locality as most
recently determined by the Secretary of Labor, in
accordance with subchapter IV of chapter 31 of title
40, United States Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--
``(i) In general.--In the case of any
taxpayer which fails to satisfy the requirement
under subparagraph (A) with respect to the
construction of any qualified facility or with
respect to the alteration or repair of a
facility in any year during the period
described in subparagraph (A)(ii), such
taxpayer shall be deemed to have satisfied such
requirement under such subparagraph with
respect to such facility and carbon capture
equipment for any year if, with respect to any
laborer or mechanic who was paid wages at a
rate below the rate described in such
subparagraph for any period during such year,
such taxpayer--
``(I) makes payment to such laborer
or mechanic in an amount equal to the
sum of an amount equal to the
difference between the amount of wages
paid to such laborer or mechanic during
such period, and--
``(aa) the amount of wages
required to be paid to such
laborer or mechanic pursuant to
such subparagraph during such
period, plus
``(bb) interest on the
amount determined under item
(aa) at the underpayment rate
established under section 6621
for the period described in
such item, and
``(II) makes payment to the
Secretary of a penalty in an amount
equal to the product of--
``(aa) $5,000, multiplied
by
``(bb) the total number of
laborers and mechanics who were
paid wages at a rate below the
rate described in subparagraph
(A) for any period during such
year.
``(ii) Penalty assessed as tax.--The
penalty described in clause (i)(II) shall be
treated in the same manner as a penalty imposed
under subchapter B of chapter 68.
``(4) Apprenticeship requirements.--The requirements
described in this paragraph with respect to any qualified
facility and carbon capture equipment are as follows:
``(A) Labor hours.--
``(i) Percentage of total labor hours.--All
contractors and subcontractors engaged in the
performance of construction, alteration, or
repair work on any facility and carbon capture
equipment prior to such facility being placed
into service shall, subject to subparagraph
(B), ensure that not less than the applicable
percentage of the total labor hours of such
work be performed by qualified apprentices.
``(ii) Applicable percentage.--For purposes
of paragraph (1), the applicable percentage
shall be--
``(I) in the case of any applicable
project the construction of which
begins before January 1, 2023, 5
percent,
``(II) in the case of any
applicable project the construction of
which begins after December 31, 2022,
and before January 1, 2024, 10 percent,
and
``(III) in the case of any
applicable project the construction of
which begins after December 31, 2023,
15 percent.
``(B) Apprentice to journeyworker ratio.--The
requirement under subparagraph (A)(i) shall be subject
to any applicable requirements for apprentice-to-
journeyworker ratios of the Department of Labor or the
applicable State apprenticeship agency.
``(C) Participation.--Each contractor and
subcontractor who employs 4 or more individuals to
perform construction, alteration, or repair work on an
applicable project shall employ 1 or more qualified
apprentices to perform such work.
``(D) Exception.--
``(i) In general.--Notwithstanding any
other provision of this paragraph, this
paragraph shall not apply in the case of a
taxpayer who--
``(I) demonstrates a lack of
availability of qualified apprentices
in the geographic area of the
construction, alteration, or repair
work, and
``(II) makes a good faith effort to
comply with the requirements of this
paragraph.
``(ii) Good faith effort.--For purposes of
clause (i), a taxpayer shall be deemed to have
satisfied the requirements under such paragraph
with respect to an applicable project if such
taxpayer has requested qualified apprentices
from a registered apprenticeship program, as
defined in section 3131(e)(3)(B), and such
request has been denied, provided that such
denial is not the result of a refusal by the
contractors or subcontractors engaged in the
performance of construction, alteration, or
repair work on such applicable project to
comply with the established standards and
requirements of such apprenticeship program.
``(E) Definitions.--For purposes of this
paragraph--
``(i) Labor hours.--The term `labor hours'
has the meaning given such term in section
45(b)(9)(E)(i).
``(ii) Qualified apprentice.--The term
`qualified apprentice' has the meaning given
such term in section 45(b)(9)(E)(ii).
``(5) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary determines
necessary or appropriate to carry out the purposes of this
subsection.''.
(e) Increased Applicable Dollar Amount.--
(1) In general.--Section 45Q(b)(1) is amended--
(A) by amending clause (i) of subparagraph (A) to
read as follows:
``(i) for any taxable year beginning in a
calendar year after 2016 and before 2027--
``(I) for purposes of paragraph (3)
of subsection (a), $50 for each
calendar year during such period, and
``(II) for purposes of paragraph
(4) of such subsection, $35 for each
calendar year during such period,
and'',
(B) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), and
(C) by inserting after subparagraph (A) the
following new subparagraph:
``(B) Inflation adjustment.--In the case of any
taxable year beginning in a calendar year after 2025,
each of the dollar amounts in subparagraph (A)(i) shall
be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2024'
for `calendar year 2016' in subparagraph
(A)(ii) thereof.
Any increase determined under the preceding sentence
shall be rounded to the nearest cent.''.
(f) Effective Dates.--
(1) Extension.--The amendment made by subsection (a) shall
apply to facilities the construction of which begins after
December 31, 2025.
(2) Other amendments.--The amendments made by subsections
(b), (c), (d), and (e) shall apply to taxable years beginning
after December 31, 2021.
SEC. 136108. GREEN ENERGY PUBLICLY TRADED PARTNERSHIPS.
(a) In General.--Section 7704(d)(1)(E) is amended--
(1) by striking ``income and gains derived from the
exploration'' and inserting ``income and gains derived from--
``(i) the exploration'',
(2) by inserting ``or'' before ``industrial source'', and
(3) by striking ``, or the transportation or storage'' and
all that follows and inserting the following:
``(ii) the generation of electric power or
thermal energy exclusively using any qualified
energy resource (as defined in section
45(c)(1)),
``(iii) the operation of energy property
(as defined in section 48(a)(3), determined
without regard to any date by which the
construction of the facility is required to
begin),
``(iv) in the case of a facility described
in paragraph (3) or (7) of section 45(d)
(determined without regard to any placed in
service date or date by which construction of
the facility is required to begin), the
accepting or processing of open-loop biomass or
municipal solid waste,
``(v) the transportation or storage of any
fuel described in subsection (b), (c), (d), or
(e) of section 6426,
``(vi) the conversion of renewable biomass
(as defined in subparagraph (I) of section
211(o)(1) of the Clean Air Act (as in effect on
the date of the enactment of this clause)) into
renewable fuel (as defined in subparagraph (J)
of such section as so in effect), or the
storage or transportation of such fuel,
``(vii) the production, storage, or
transportation of any fuel which--
``(I) uses as its primary feedstock
carbon oxides captured from an
anthropogenic source or the atmosphere,
``(II) does not use as its primary
feedstock carbon oxide which is
deliberately released from naturally
occurring subsurface springs, and
``(III) is determined by the
Secretary, after consultation with the
Secretary of Energy and the
Administrator of the Environmental
Protection Agency, to achieve a
reduction of not less than a 60 percent
in lifecycle greenhouse gas emissions
(as defined in section 211(o)(1)(H) of
the Clean Air Act, as in effect on the
date of the enactment of this clause)
compared to baseline lifecycle
greenhouse gas emissions (as defined in
section 211(o)(1)(C) of such Act, as so
in effect), or
``(viii) a qualified facility (as defined
in section 45Q(d), without regard to any date
by which construction of the facility is
required to begin).''.
(b) Effective Date.--The amendments made by this section apply to
taxable years beginning after December 31, 2021.
SEC. 136109. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45W. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.
``(a) Amount of Credit.--For purposes of section 38, the zero-
emission nuclear power production credit for any taxable year is an
amount equal to the amount by which--
``(1) the product of--
``(A) 1.5 cents, multiplied by
``(B) the kilowatt hours of electricity--
``(i) produced by the taxpayer at a
qualified nuclear power facility, and
``(ii) sold by the taxpayer to an unrelated
person during the taxable year, exceeds
``(2) the reduction amount for such taxable year.
``(b) Definitions.--
``(1) Qualified nuclear power facility.--For purposes of
this section, the term `qualified nuclear power facility' means
any nuclear facility--
``(A) which is owned by the taxpayer and which uses
nuclear energy to produce electricity,
``(B) which has not received an allocation under
section 45J(b), and
``(C) which is placed in service before the date of
the enactment of this section.
``(2) Reduction amount.--
``(A) In general.--For purposes of this section,
the term `reduction amount' means, with respect to any
qualified nuclear power facility for any taxable year,
the amount equal to the lesser of--
``(i) the amount determined under
subsection (a)(1), or
``(ii) the amount equal to 80 percent of
the excess of--
``(I) subject to subparagraph (B),
the gross receipts from any electricity
produced by such facility (including
any electricity services or products
provided in conjunction with the
electricity produced by such facility)
and sold to an unrelated person during
such taxable year, over
``(II) the amount equal to the
product of--
``(aa) 2.5 cents,
multiplied by
``(bb) the amount
determined under subsection
(a)(1)(B).
``(B) Treatment of certain receipts.--
``(i) In general.--The amount determined
under subparagraph (A)(ii)(I) shall include any
amount received by the taxpayer during the
taxable year with respect to the qualified
nuclear power facility from a zero-emission
credit program unless the amount received by
the taxpayer is subject to reduction--
``(I) by the full amount of the
credit determined under this section,
or
``(II) by any lesser amount if such
amount entirely offsets the amount
received from a zero-emission credit
program.
``(ii) Zero-emission credit program.--For
purposes of this subparagraph, the term `zero-
emission credit program' means any payments to
a qualified nuclear power facility as a result
of any Federal, State or local government
program for, in whole or in part, the zero-
emission, zero-carbon, or air quality
attributes of any portion of the electricity
produced by such facility.
``(3) Electricity.--For purposes of this section, the term
`electricity' means the energy produced by a qualified nuclear
power facility from the conversion of nuclear fuel into
electric power.
``(c) Other Rules.--
``(1) Inflation adjustment.--The 1.5 cent amount in
subsection (a)(1)(A) and the 2.5 cent amount in subsection
(b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying
such amount by the inflation adjustment factor (as determined
under section 45(e)(2), as applied by substituting `calendar
year 2022' for `calendar year 1992' in subparagraph (B)
thereof) for the calendar year in which the sale occurs. If any
amount as increased under the preceding sentence is not a
multiple of 0.1 cent, such amount shall be rounded to the
nearest multiple of 0.1 cent.
``(2) Special rules.--Rules similar to the rules of
paragraphs (1), (3), (4), and (5) of section 45(e) shall apply
for purposes of this section.
``(3) Denial of double benefit.--No credit shall be allowed
under section 48E for any power production for which a credit
is taken under this section.
``(d) Wage and Apprenticeship Requirements.--
``(1) Base credit amount and increased credit amount for
qualified nuclear power facilities.--
``(A) In general.--In the case of any qualified
nuclear power facility which does not satisfy the
requirements of subparagraph (B), the amount of the
credit determined under subsection (a) and the 2.5 cent
amount in subsection (b)(2)(A)(ii)(II)(aa) shall be 20
percent of such amount (determined without regard to
this sentence).
``(B) Increased credit for certain facilities
meeting project requirements.--
``(i) In general.--In the case of any
qualified nuclear power facility which meets
the project requirements of this subparagraph,
subparagraph (A) shall not apply.
``(ii) Project requirements.--A project
meets the requirements of this subparagraph if
it is one of the following:
``(I) A project with a maximum net
output of less than 1 megawatt.
``(II) A project which satisfies
the requirements of paragraphs (2) and
(3).
``(2) Prevailing wage requirements.--
``(A) In general.--The taxpayer shall ensure that
any laborers and mechanics employed by contractors and
subcontractors in the alteration or repair of a
facility shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or
repair of a similar character in the locality as most
recently determined by the Secretary of Labor, in
accordance with subchapter IV of chapter 31 of title
40, United States Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--
``(i) In general.--In the case of any
taxpayer which fails to satisfy the requirement
under subparagraph (A), such taxpayer shall be
deemed to have satisfied such requirement under
such subparagraph with respect to such facility
for any year if, with respect to any laborer or
mechanic who was paid wages at a rate below the
rate described in such subparagraph for any
period during such year, such taxpayer--
``(I) makes payment to such laborer
or mechanic in an amount equal to the
sum of--
``(aa) an amount equal to
the difference between the
amount of wages paid to such
laborer or mechanic during such
period, and--
``(AA) the amount
of wages required to be
paid to such laborer or
mechanic pursuant to
such subparagraph
during such period,
plus
``(BB) interest on
the amount determined
under item (aa) at the
underpayment rate
established under
section 6621 for the
period described in
such item, and
``(II) makes payment to the
Secretary of a penalty in an amount
equal to the product of--
``(aa) $5,000, multiplied
by
``(bb) the total number of
laborers and mechanics who were
paid wages at a rate below the
rate described in subparagraph
(A) for any period during such
year.
``(ii) Penalty assessed as tax.--The
penalty described in clause (i)(II) shall be
treated in the same manner as a penalty imposed
under subchapter B of chapter 68.
``(3) Apprenticeship requirements.--The requirements
described in this subparagraph with respect to any qualified
nuclear power facility are as follows:
``(A) Labor hours.--
``(i) Percentage of total labor hours.--All
contractors and subcontractors engaged in the
performance of alteration or repair work on any
qualified nuclear power facility shall, subject
to subparagraph (B), ensure that not less than
the applicable percentage of the total labor
hours of such work be performed by qualified
apprentices.
``(ii) Applicable percentage.--For purposes
of paragraph (1), the applicable percentage
shall be--
``(I) in the case of any applicable
project the construction of which
begins before January 1, 2023, 5
percent,
``(II) in the case of any
applicable project the construction of
which begins after December 31, 2022,
and before January 1, 2024, 10 percent,
and
``(III) in the case of any
applicable project the construction of
which begins after December 31, 2023,
15 percent.
``(B) Apprentice to journeyworker ratio.--The
requirement under subparagraph (A)(i) shall be subject
to any applicable requirements for apprentice-to-
journeyworker ratios of the Department of Labor or the
applicable State apprenticeship agency.
``(C) Participation.--Each contractor and
subcontractor who employs 4 or more individuals to
perform construction, alteration, or repair work on an
applicable project shall employ 1 or more qualified
apprentices to perform such work.
``(D) Exception.--
``(i) In general.--Notwithstanding any
other provision of this paragraph, this
paragraph shall not apply in the case of a
taxpayer who--
``(I) demonstrates a lack of
availability of qualified apprentices
in the geographic area of the
construction, alteration, or repair
work, and
``(II) makes a good faith effort to
comply with the requirements of this
paragraph.
``(ii) Good faith effort.--For purposes of
clause (i), a taxpayer shall be deemed to have
satisfied the requirements under such paragraph
with respect to an applicable project if such
taxpayer has requested qualified apprentices
from a registered apprenticeship program, as
defined in section 3131(e)(3)(B), and such
request has been denied, provided that such
denial is not the result of a refusal by the
contractors or subcontractors engaged in the
performance of construction, alteration, or
repair work on such applicable project to
comply with the established standards and
requirements of such apprenticeship program.
``(E) Definitions.--For purposes of this
paragraph--
``(i) Labor hours.--The term `labor hours'
has the meaning given such term in section
45(b)(9)(E)(i).
``(ii) Qualified apprentice.--The term
`qualified apprentice' has the meaning given
such term in section 45(b)(9)(E)(ii).
``(4) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary determines
necessary or appropriate to carry out the purposes of this
subsection.
``(e) Termination.--This section shall not apply to taxable years
beginning after December 31, 2026.''.
(b) Conforming Amendments.--
(1) Section 38(b) of the Internal Revenue Code of 1986 is
amended--
(A) in paragraph (36), by striking ``plus'' at the
end,
(B) in paragraph (37), by striking the period at
the end and inserting ``, plus'', and
(C) by adding at the end the following new
paragraph:
``(38) the zero-emission nuclear power production credit
determined under section 45W(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of such Code is amended by adding at
the end the following new item:
``Sec. 45W. Zero-emission nuclear power production credit.''.
(c) Elective Payment of Credit.--Section 6417(b), as added by the
preceding provisions of this Act, is amended by adding at the end the
following new paragraph:
``(8) The zero-emission nuclear power production credit
determined under section 45W.''.
(d) Effective Date.--This section shall apply to electricity
produced and sold after December 31, 2021, in taxable years beginning
after such date.
PART 2--RENEWABLE FUELS
SEC. 136201. EXTENSION OF INCENTIVES FOR BIODIESEL, RENEWABLE DIESEL
AND ALTERNATIVE FUELS.
(a) Biodiesel and Renewable Diesel Credit.--Section 40A(g) is
amended by striking ``December 31, 2022'' and inserting ``December 31,
2031''.
(b) Biodiesel Mixture Credit.--
(1) In general.--Section 6426(c)(6) is amended by striking
``December 31, 2022'' and inserting ``December 31, 2031''.
(2) Fuels not used for taxable purposes.--Section
6427(e)(6)(B) is amended by striking ``December 31, 2022'' and
inserting ``December 31, 2031''.
(c) Alternative Fuel Credit.--Section 6426(d)(5) is amended by
striking ``December 31, 2021'' and inserting ``December 31, 2031''.
(d) Alternative Fuel Mixture Credit.--Section 6426(e)(3) is amended
by striking ``December 31, 2021'' and inserting ``December 31, 2031''.
(e) Payments for Alternative Fuels.--Section 6427(e)(6)(C) is
amended by striking ``December 31, 2021'' and inserting ``December 31,
2031''.
(f) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after December 31, 2021.
SEC. 136202. EXTENSION OF SECOND GENERATION BIOFUEL INCENTIVES.
(a) In General.--Section 40(b)(6)(J)(i) is amended by striking
``2022'' and inserting ``2032''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to qualified second generation biofuel production after December
31, 2021.
SEC. 136203. SUSTAINABLE AVIATION FUEL CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
is amended by inserting after section 40A the following new section:
``SEC. 40B. SUSTAINABLE AVIATION FUEL CREDIT.
``(a) In General.--For purposes of section 38, the sustainable
aviation fuel credit for the taxable year is, with respect to any sale
or use of a qualified mixture which occurs during such taxable year, an
amount equal to the product of--
``(1) the number of gallons of sustainable aviation fuel in
such mixture, multiplied by
``(2) the sum of--
``(A) $1.25, plus
``(B) the applicable supplementary amount with
respect to such sustainable aviation fuel.
``(b) Applicable Supplementary Amount.--For purposes of this
section, the term `applicable supplementary amount' means, with respect
to any sustainable aviation fuel, an amount equal to $0.01 for each
percentage point by which the lifecycle greehouse gas emissions
reduction percentage with respect to such fuel exceeds 50 percent. In
no event shall the applicable supplementary amount determined under
this subsection exceed $0.50.
``(c) Qualified Mixture.--For purposes of this section, the term
`qualified mixture' means a mixture of sustainable aviation fuel and
kerosene if--
``(1) such mixture is produced by the taxpayer in the
United States,
``(2) such mixture is used by the taxpayer (or sold by the
taxpayer for use) in an aircraft,
``(3) such sale or use is in the ordinary course of a trade
or business of the taxpayer, and
``(4) the transfer of such mixture to the fuel tank of such
aircraft occurs in the United States.
``(d) Sustainable Aviation Fuel.--For purposes of this section, the
term `sustainable aviation fuel' means liquid fuel which--
``(1) meets the requirements of--
``(A) ASTM International Standard D7566, or
``(B) the Fischer Tropsch provisions of ASTM
International Standard D1655, Annex A1,
``(2) is not derived from palm fatty distillates or
petroleum, and
``(3) has been certified in accordance with subsection (e)
as having a lifecycle greenhouse gas emissions reduction
percentage of at least 50 percent.
``(e) Lifecycle Greenhouse Gas Emissions Reduction Percentage.--For
purposes of this section--
``(1) In general.--The term `lifecycle greenhouse gas
emissions reduction percentage' means, with respect to any
sustainable aviation fuel, the percentage reduction in
lifecycle greenhouse gas emissions achieved by such fuel in
comparison with petroleum-based jet fuel as stated in a
certification which meets the requirements of paragraphs (2).
``(2) Certification methodology.--A certification meets the
requirements of this paragraph if such certification (including
the methodology and process of such certification) conforms
with all requirements (including requirements related to
traceability and information transmission) of the most recent
Carbon Offsetting and Reduction Scheme for International
Aviation which has been adopted by the International Civil
Aviation Organization with the agreement of the United States.
``(3) Option to obtain certification from secretary.--Not
later than 24 months after the date of the enactment of this
section, the Secretary, after consultation with the Secretary
of Energy and the Administrator of the Environmental Protection
Agency, shall establish procedures pursuant to which taxpayers
may obtain a certification which meets the requirements of
paragraph (2) from the Secretary.
``(f) Registration of Sustainable Aviation Fuel Producers.--No
credit shall be allowed under this section with respect to any
sustainable aviation fuel unless the producer of such fuel has entered
into an agreement with the Secretary to provide the Secretary such
information with respect to such fuel as the Secretary may require for
purposes of carrying out this section.
``(g) Coordination With Credit Against Excise Tax.--The amount of
the credit determined under this section with respect to any
sustainable aviation fuel shall, under rules prescribed by the
Secretary, be properly reduced to take into account any benefit
provided with respect to such sustainable aviation fuel solely by
reason of the application of section 6426 or 6427(e).
``(h) Termination.--This section shall not apply to any sale or use
after December 31, 2031.''.
(b) Credit Made Part of General Business Credit.-- Section 38(b) is
amended by striking ``plus'' at the end of paragraph (37), by striking
the period at the end of paragraph (38) and inserting ``, plus'', and
by inserting after paragraph (38) the following new paragraph:
``(39) the sustainable aviation fuel credit determined
under section 40B.''.
(c) Coordination With Biodiesel Incentives.--
(1) In general.--Section 40A(d)(1) is amended by inserting
``or 40B'' after ``determined under section 40''.
(2) Conforming amendment.--Section 40A(f) is amended by
striking paragraph (4).
(d) Sustainable Aviation Fuel Added to Credit for Alcohol Fuel,
Biodiesel, and Alternative Fuel Mixtures.--
(1) In general.--Section 6426 is amended by adding at the
end the following new subsection:
``(k) Sustainable Aviation Fuel Credit.--
``(1) In general.--For purposes of this section, the
sustainable aviation fuel credit for the taxable year is, with
respect to any sale or use of a qualified mixture, an amount
equal to the product of--
``(A) the number of gallons of sustainable aviation
fuel in such mixture, multiplied by
``(B) the sum of--
``(i) $1.25, plus
``(ii) the applicable supplementary amount
with respect to such sustainable aviation fuel.
``(2) Applicable supplementary amount.--For purposes of
this subsection, the term `applicable supplementary amount' has
the meaning given such term in section 40B(b).
``(3) Other definitions.--Any term used in this subsection
which is also used in section 40B shall have the meaning given
such term by section 40B.
``(4) Registration requirement.--For purposes of this
subsection, rules similar to the rules of section 40B(f) shall
apply.''.
(2) Conforming amendments.--
(A) Section 6426 is amended--
(i) in subsection (a)(1), by striking ``and
(e)'' and inserting ``(e), and (k)'', and
(ii) in subsection (h), by striking ``under
section 40 or 40A'' and inserting ``under
section 40, 40A, or 40B''.
(B) Section 6427(e)(6) is amended by striking the
``and'' at the end of subparagraph (C), by striking the
period at the end of subparagraph (D) and inserting ``,
and'', and by adding at the end the following new
subparagraph:
``(E) any qualified mixture of sustainable aviation
fuel (as defined in section 6426(k)(3)) sold or used
after December 31, 2031.''.
(e) Guidance.--Under rules prescribed by the Secretary of the
Treasury (or the Secretary's delegate), the amount of the credit
allowed under section 40B of the Internal Revenue Code of 1986 (as
added by this subsection) shall be properly reduced to take into
account any benefit provided with respect to sustainable aviation fuel
(as defined in such section 40B) by reason of the application of
section 6426 or section 6427(e).
(f) Amount of Credit Included in Gross Income.--Section 87 is
amended by striking ``and'' in paragraph (1), by striking the period at
the end of paragraph (2) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(3) the sustainable aviation fuel credit determined with
respect to the taxpayer for the taxable year under section
40B(a).''.
(g) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after December 31, 2022.
SEC. 136204. CLEAN HYDROGEN.
(a) Credit for Production of Clean Hydrogen.--
(1) In general.--Subpart D of part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
section:
``SEC. 45X. CREDIT FOR PRODUCTION OF CLEAN HYDROGEN.
``(a) Amount of Credit.--For purposes of section 38, the clean
hydrogen production credit for any taxable year is an amount equal to
the product of--
``(1) the applicable amount, multiplied by
``(2) the kilograms of qualified clean hydrogen produced by
the taxpayer during such taxable year at a qualified clean
hydrogen production facility during the 10-year period
beginning on the date such facility was originally placed in
service.
``(b) Applicable Amount.--
``(1) In general.--For purposes of subsection (a)(1), the
applicable amount shall be an amount equal to the applicable
percentage of $3.00. If any amount as determined under the
preceding sentence is not a multiple of 0.1 cent, such amount
shall be rounded to the nearest multiple of 0.1 cent.
``(2) Applicable percentage.--For purposes of paragraph
(1), the term `applicable percentage' means--
``(A) in the case of any qualified clean hydrogen
which is produced through a process that, as compared
to hydrogen produced by steam-methane reforming,
achieves a percentage reduction in lifecycle greenhouse
gas emissions which is less than 75 percent, 20
percent,
``(B) in the case of any qualified clean hydrogen
which is produced through a process that, as compared
to hydrogen produced by steam-methane reforming,
achieves a percentage reduction in lifecycle greenhouse
gas emissions which is not less than 75 percent and
less than 85 percent, 25 percent,
``(C) in the case of any qualified clean hydrogen
which is produced through a process that, as compared
to hydrogen produced by steam-methane reforming,
achieves a percentage reduction in lifecycle greenhouse
gas emissions which is not less than 85 percent and
less than 95 percent, 34 percent, and
``(D) in the case of any qualified clean hydrogen
which is produced through a process that, as compared
to hydrogen produced by steam-methane reforming,
achieves a percentage reduction in lifecycle greenhouse
gas emissions which is not less than 95 percent, 100
percent.
``(3) Inflation adjustment.--The $3.00 amount in paragraph
(1) shall be adjusted by multiplying such amount by the
inflation adjustment factor (as determined under section
45(e)(2), determined by substituting `2020' for `1992' in
subparagraph (B) thereof) for the calendar year in which the
qualified clean hydrogen is produced. If any amount as
increased under the preceding sentence is not a multiple of 0.1
cent, such amount shall be rounded to the nearest multiple of
0.1 cent.
``(c) Definitions.--For purposes of this section--
``(1) Lifecycle greenhouse gas emissions.--For purposes of
this section, the term `lifecycle greenhouse gas emissions' has
the same meaning given such term under subparagraph (H) of
section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)),
as in effect on the date of enactment of this section, as
related to the full fuel lifecycle through the point of
hydrogen production.
``(2) Qualified clean hydrogen.--
``(A) In general.--The term `qualified clean
hydrogen' means hydrogen which is produced through a
process that, as compared to hydrogen produced by
steam-methane reforming, achieves a percentage
reduction in lifecycle greenhouse gas emissions which
is not less than 40 percent.
``(B) Additional requirements.--Such term shall not
include any hydrogen unless such hydrogen is produced--
``(i) in the United States (as defined in
section 638(1) or a possession of the United
States (as defined in section 638(2)),
``(ii) in the ordinary course of a trade or
business of the taxpayer, and
``(iii) for sale or use.
``(3) Qualified clean hydrogen production facility.--
``(A) In general.--The term `qualified clean
hydrogen production facility' means a facility owned by
the taxpayer which produces qualified clean hydrogen
and which meets the requirements of subparagraph (B).
``(B) Termination.--The term `qualified clean
hydrogen production facility' shall not include any
facility the construction of which begins after
December 31, 2028.
``(4) Steam-methane reforming.--The term `steam-methane
reforming' means a hydrogen production process in which high-
temperature steam is used to produce hydrogen from natural gas
(other than natural gas derived from biomass (as defined in
section 45K(c)(3) as in effect on the date of the enactment of
this section), without carbon capture and sequestration.
``(d) Special Rules.--
``(1) Treatment of facilities owned by more than 1
taxpayer.--Rules similar to the rules section 45(e)(3) shall
apply for purposes of this section.
``(2) Coordination with credit for carbon oxide
sequestration.--No credit shall be allowed under this section
with respect to any qualified clean hydrogen produced at a
facility which includes property for which a credit is allowed
under section 45Q.
``(e) Base Credit Amount and Increased Credit Amount for Qualified
Clean Hydrogen Production Facilities.--
``(1) In general.--In the case of any qualified clean
hydrogen production facility which does not satisfy the
requirements of paragraph (2)(B), the amount of the credit
determined under subsection (a) shall be 20 percent of such
amount (determined without regard to this sentence).
``(2) Increased credit for certain facilities meeting
project requirements.--
``(A) In general.--In the case of any qualified
facility which meets the project requirements of this
paragraph, paragraph (1) shall not apply.
``(B) Project requirements.--A project meets the
requirements of this subparagraph if it is one of the
following:
``(i) A project with a maximum net output
of less than 1 megawatt.
``(ii) A project which commences
construction prior to the date of the enactment
of this paragraph.
``(iii) A project which satisfies the
requirements of paragraphs (3) and (4).
``(3) Prevailing wage requirements.--
``(A) In general.--The requirements described in
this subparagraph with respect to any qualified clean
hydrogen production facility are that the taxpayer
shall ensure that any laborers and mechanics employed
by contractors and subcontractors in--
``(i) the construction of such facility,
and
``(ii) for the 10-year period beginning on
the date the facility was originally placed in
service, the alteration or repair of such
facility,
shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or
repair of a similar character in the locality as most
recently determined by the Secretary of Labor, in
accordance with subchapter IV of chapter 31 of title
40, United States Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--Rules similar to the rules
of section 45(b)(8)(B) shall apply for purposes of this
subparagraph.
``(4) Apprenticeship requirements.--Rules similar to the
rules of section 45(b)(9) shall apply for purposes of this
paragraph.
``(5) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary determines
necessary or appropriate to carry out the purposes of this
subsection.
``(f) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary, after consultation with the
Secretary of Energy and the Administrator of the Environmental
Protection Agency, shall issue regulations or other guidance to carry
out the purposes of this section, including regulations or other
guidance--
``(1) for determining lifecycle greenhouse gas emissions,
and
``(2) which require verification by unrelated third parties
of the production and sale or use of qualified clean hydrogen
with respect to which credit is otherwise allowed under this
section.''.
(2) Elective payment of credit.--Section 6417(b), as added
by the preceding provisions of this Act, is amended by adding
at the end the following new paragraph:
``(9) The credit for production of clean hydrogen
determined under section 45X.''.
(3) Conforming amendments.--
(A) Section 38(b) is amended--
(i) in paragraph (38), by striking ``plus''
at the end,
(ii) in paragraph (39), by striking the
period at the end and inserting ``, plus'', and
(iii) by adding at the end the following
new paragraph:
``(40) the clean hydrogen production credit determined
under section 45X(a).''.
(B) The table of sections for subpart D of part IV
of subchapter A of chapter 1 amended by adding at the
end the following new item:
``Sec. 45X. Credit for production of clean hydrogen.''.
(4) Effective date.--The amendments made by this subsection
shall apply to hydrogen placed in service after December 31,
2021.
(b) Credit for Electricity Produced From Renewable Resources
Allowed if Electricity Is Used to Produce Clean Hydrogen.--
(1) In general.--Section 45(e) is amended by adding at the
end the following new paragraph:
``(13) Special rule for electricity used at a qualified
clean hydrogen production facility.--Electricity produced by
the taxpayer shall be treated as sold by such taxpayer to an
unrelated person during the taxable year if such electricity is
used during such taxable year by the taxpayer or a person
related to the taxpayer at a qualified clean hydrogen
production facility (as defined in section 45X(d)(3)) to
produce qualified clean hydrogen (as defined in section
45X(d)(2)) during the 10 year period after such facility is
placed in service. The Secretary shall issue such regulations
or other guidance as the Secretary determines appropriate to
carry out the purposes of this paragraph, including regulations
or other guidance to require verification by unrelated third
parties of the production and use of electricity to which this
paragraph applies.''.
(2) Effective date.--The amendment made by this subsection
shall apply to electricity produced after December 31, 2021.
(c) Election to Treat Clean Hydrogen Production Facilities as
Energy Property.--
(1) In general.--Section 48(a) is amended by adding at the
end the following new paragraph:
``(8) Election to treat clean hydrogen production
facilities as energy property.--
``(A) In general.--In the case of any qualified
property (as defined in paragraph (5)(D)) which is part
of a specified clean hydrogen production facility--
``(i) such property shall be treated as
energy property for purposes of this section,
and
``(ii) the energy percentage with respect
to such property is--
``(I) in the case of a facility
which is designed and reasonably
expected to produce qualified clean
hydrogen which is described in a
subparagraph (A) of section 45X(b)(2),
6 percent,
``(II) in the case of a facility
which is designed and reasonably
expected to produce qualified clean
hydrogen which is described in a
subparagraph (B) of such section, 7.5
percent,
``(III) in the case of a facility
which is designed and reasonably
expected to produce qualified clean
hydrogen which is described in a
subparagraph (C) of such section, 10.2
percent, and
``(IV) in the case of a facility
which is designed and reasonably
expected to produce qualified clean
hydrogen which is described in a
subparagraph (D) of such section, 30
percent.
``(B) Denial of production credit.--No credit shall
be allowed under section 45X for any taxable year with
respect to any specified clean hydrogen production
facility.
``(C) Specified clean hydrogen production
facility.--For purposes of this paragraph, the term
`specified clean hydrogen production facility' means
any qualified clean hydrogen production facility (as
defined in section 45X(d)(3)) or any portion of such
facility--
``(i) which is placed in service after
December 31, 2021, and
``(ii) with respect to which--
``(I) no credit has been allowed
under section 45X or 45Q, and
``(II) the taxpayer makes an
irrevocable election to have this
paragraph apply.
``(D) Qualified clean hydrogen.--For purposes of
this paragraph, the term `qualified clean hydrogen' has
the meaning given such term by section 45X(d)(2).
``(E) Regulations.--The Secretary, after
consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency,
shall issue such regulations or other guidance as the
Secretary determines necessary or appropriate to carry
out the purposes of this section, including regulations
or other guidance which--
``(i) requires verification by one or more
unrelated third parties that the facility
produces hydrogen which is consistent with the
hydrogen that such facility was designed and
expected to produce under subparagraph (A)(ii),
and
``(ii) recaptures so much of any credit
allowed under this section as exceeds the
amount of the credit which would have been
allowed if the expected production were
consistent with the actual verified production
(or all of the credit so allowed in the absence
of such verification).''.
(2) Effective date.--The amendments made by this section
shall apply to periods after December 31, 2021, under rules
similar to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990).
(d) Termination of Excise Tax Credit for Hydrogen.--
(1) In general.--Section 6426(d)(2) is amended by striking
subparagraph (D) and by redesignating subparagraphs (E), (F),
and (G) as subparagraphs (D), (E), and (F), respectively.
(2) Conforming amendment.--Section 6426(e)(2) is amended by
striking ``(F)'' and inserting ``(E)''.
(3) Effective date.--The amendments made by this subsection
shall apply to fuel sold or used after December 31, 2021.
PART 3--GREEN ENERGY AND EFFICIENCY INCENTIVES FOR INDIVIDUALS
SEC. 136301. EXTENSION, INCREASE, AND MODIFICATIONS OF NONBUSINESS
ENERGY PROPERTY CREDIT.
(a) Extension of Credit.--Section 25C(g)(2) is amended by striking
``December 31, 2021'' and inserting ``December 31, 2031''.
(b) Increase in Credit Percentage for Qualified Energy Efficiency
Improvements.--Section 25C(a)(1) is amended by striking ``10 percent''
and inserting ``30 percent''.
(c) Application of Annual Limitation in Lieu of Lifetime
Limitation.--Section 25C(b) is amended to read as follows:
``(b) Limitations.--
``(1) In general.--The credit allowed under this section
with respect to any taxpayer for any taxable year shall not
exceed $1,200.
``(2) Windows.--The credit allowed under this section by
reason of subsection (a)(1) with respect to any taxpayer for
any taxable year shall not exceed--
``(A) in the aggregate with respect to all exterior
windows and skylights which are not described in
subparagraph (B), $200,
``(B) in the aggregate with respect to all exterior
windows and skylights which meet the standard for the
most efficient certification under applicable Energy
Star program requirements, the excess (if any) of $600
over the credit so allowed with respect to all windows
and skylights taken into account under subparagraph
(A).
``(3) Doors.--The credit allowed under this section by
reason of subsection (a)(1) with respect to any taxpayer for
any taxable year shall not exceed--
``(A) $250 in the case of any exterior door, and
``(B) $500 in the aggregate with respect to all
exterior doors.''.
(d) Modifications Related to Qualified Energy Efficiency
Improvements.--
(1) Standards for energy efficient building envelope
components.--Section 25C(c)(2) is amended by striking ``meets--
'' and all that follows through the period at the end and
inserting the following: ``meets--
``(A) in the case of an exterior window, a
skylight, or an exterior door, applicable Energy Star
program requirements, and
``(B) in the case of any other component, the
prescriptive criteria for such component established by
the most recent International Energy Conservation Code
standard in effect as of the beginning of the calendar
year which is 2 years prior to the calendar year in
which such component is placed in service.''.
(2) Roofs not treated as building envelope components.--
Section 25C(c)(3) is amended by adding ``and'' at the end of
subparagraph (B), by striking ``, and'' at the end of
subparagraph (C) and inserting a period, and by striking
subparagraph (D).
(3) Air barrier insulation added to definition of building
envelope component.--Section 25C(c)(3)(A) is amended by
striking ``material or system'' and inserting ``material or
system, including air sealing material or system,''.
(e) Modification of Residential Energy Property Expenditures.--
Section 25C(d) is amended to read as follows:
``(d) Residential Energy Property Expenditures.--For purposes of
this section--
``(1) In general.--The term `residential energy property
expenditures' means expenditures made by the taxpayer for
qualified energy property which is--
``(A) installed on or in connection with a dwelling
unit located in the United States and used as a
residence by the taxpayer, and
``(B) originally placed in service by the taxpayer.
Such term includes expenditures for labor costs properly
allocable to the onsite preparation, assembly, or original
installation of the property.
``(2) Qualified energy property.--The term `qualified
energy property' means any of the following which meet or
exceed the highest efficiency tier (not including any advanced
tier) established by the Consortium for Energy Efficiency which
is in effect as of the beginning of the calendar year in which
the property is placed in service:
``(A) An electric heat pump water heater.
``(B) An electric heat pump.
``(C) A central air conditioner.
``(D) A natural gas, propane, or oil water heater.
``(E) A natural gas, propane, or oil furnace or hot
water boiler.''.
(f) Home Energy Audits.--
(1) In general.--Section 25C(a) is amended by striking
``and'' at the end of paragraph (1), by striking the period at
the end of paragraph (2) and inserting ``, and'', and by adding
at the end the following new paragraph:
``(3) 30 percent of the amount paid or incurred by the
taxpayer during the taxable year for home energy audits.''.
(2) Limitation.--Section 25C(b), as amended by subsection
(c), is amended adding at the end the following new paragraph:
``(5) Home energy audits.--
``(A) Dollar limitation.--The amount of the credit
allowed under this section by reason of subsection
(a)(3) shall not exceed $150.
``(B) Substantiation requirement.--No credit shall
be allowed under this section by reason of subsection
(a)(3) unless the taxpayer includes with the taxpayer's
return of tax such information or documentation as the
Secretary may require.''.
(3) Home energy audits.--
(A) In general.--Section 25C, as amended by
subsections (a), is amended by redesignating
subsections (e), (f), and (g), as subsections (f), (g),
and (h), respectively, and by inserting after
subsection (d) the following new subsection:
``(e) Home Energy Audits.--For purposes of this section, the term
`home energy audit' means an inspection and written report with respect
to a dwelling unit located in the United States and owned or used by
the taxpayer as the taxpayer's principal residence (within the meaning
of section 121) which--
``(1) identifies the most significant and cost-effective
energy efficiency improvements with respect to such dwelling
unit, including an estimate of the energy and cost savings with
respect to each such improvement, and
``(2) is conducted and prepared by a home energy auditor
that meets the certification or other requirements specified by
the Secretary (after consultation with the Secretary of Energy
and the Administrator of the Environmental Protection Agency
and not later than 180 days after the date of the enactment of
this subsection) in regulations or other guidance.''.
(B) Conforming amendment.--Section 1016(a)(33) is
amended by striking ``section 25C(f)'' and inserting
``section 25C(g)''.
(4) Lack of substantiation treated as mathematical or
clerical error.--Section 6213(g)(2) is amended--
(A) in subparagraph (P), by striking ``and'' at the
end,
(B) in subparagraph (Q), by striking the period at
the end and inserting ``, and'', and
(C) by adding at the end the following:
``(R) an omission of correct information or
documentation required under section 25C(b)(5)(B)
(relating to home energy audits) to be included on a
return.''.
(g) Identification Number Requirement.--
(1) In general.--Section 25C, as amended by subsections (a)
and (f), is amended by redesignating subsection (h) as
subsection (i) and by inserting after subsection (g) the
following new subsection:
``(h) Product Identification Number Requirement.--
``(1) In general.--No credit shall be allowed under
subsection (a) with respect to any item of specified property
placed in service after December 31, 2023, unless--
``(A) such item is produced by a qualified
manufacturer, and
``(B) the taxpayer includes the qualified product
identification number of such item on the return of tax
for the taxable year.
``(2) Qualified product identification number.--For
purposes of this section, the term `qualified product
identification number' means, with respect to any item of
specified property, the product identification number assigned
to such item by the qualified manufacturer pursuant to the
methodology referred to in paragraph (3).
``(3) Qualified manufacturer.--
``(A) In general.--For purposes of this section,
the term `qualified manufacturer' means any
manufacturer of specified property which enters into an
agreement with the Secretary which provides that such
manufacturer will--
``(i) assign a product identification
number to each item of specified property
produced by such manufacturer utilizing a
methodology that will ensure that such number
(including any alphanumeric) is unique to each
such item (by utilizing numbers or letters
which are unique to such manufacturer or by
such other method as the Secretary may
provide),
``(ii) label such item with such number in
such manner as the Secretary may provide, and
``(iii) make periodic written reports to
the Secretary (at such times and in such manner
as the Secretary may provide) of the product
identification numbers so assigned and
including such information as the Secretary may
require with respect to the item of specified
property to which such number was so assigned.
``(B) Consultation with doe and epa.--The
Secretary, after consultation with the Secretary of
Energy and the Administrator of the Environmental
Protection Agency, shall establish procedures for
manufacturers and consumers to meet the requirements
for product identification numbers under subparagraph
(A).
``(4) Specified property.--For purposes of this subsection,
the term `specified property' means any qualified energy
property and any property described in subparagraph (B) or (C)
of subsection (c)(3).''.
(2) Omission of correct product identification number
treated as mathematical or clerical error.--Section 6213(g)(2),
as amended by the preceding provisions of this Act, is
amended--
(A) in subparagraph (Q), by striking ``and'' at the
end,
(B) in subparagraph (R), by striking the period at
the end and inserting ``, and'', and
(C) by adding at the end the following:
``(S) an omission of a correct product
identification number required under section 25C(h)
(relating to credit for nonbusiness energy property) to
be included on a return.''.
(h) Effective Dates.--
(1) In general.--Except as otherwise provided by this
subsection, the amendments made by this section shall apply to
property placed in service after December 31, 2021.
(2) Home energy audits.--The amendments made by subsection
(f) shall apply to amounts paid or incurred after December 31,
2021.
(3) Identification number requirement.--The amendments made
subsection (g) shall apply to property placed in service after
December 31, 2023.
SEC. 136302. RESIDENTIAL ENERGY EFFICIENT PROPERTY.
(a) Extension of Credit.--
(1) In general.--Section 25D(h) is amended by striking
``December 31, 2023'' and inserting ``December 31, 2033''.
(2) Application of phaseout.--Section 25D(g) is amended--
(A) by striking ``before January 1, 2023'' in
paragraph (2) and inserting ``before January 1, 2022'',
(B) by striking ``and'' at the end of paragraph
(2),
(C) by redesignating paragraph (3) as paragraph (5)
and by inserting after paragraph (2) the following new
paragraphs:
``(3) in the case of property placed in service after
December 31, 2021, and before January 1, 2032, 30 percent,
``(4) in the case of property placed in service after
December 31, 2031, and before January 1, 2033, 26 percent,
and'', and
(D) by striking ``December 31, 2022, and before
January 1, 2024'' in paragraph (5) (as so redesignated)
and inserting ``December 31, 2032, and before January
1, 2034''.
(b) Residential Energy Efficient Property Credit for Battery
Storage Technology.--
(1) In general.--Section 25D(a) is amended by striking
``and'' at the end of paragraph (5) and by inserting after
paragraph (6) the following new paragraph:
``(7) the qualified battery storage technology
expenditures,''.
(2) Qualified battery storage technology expenditure.--
Section 25D(d) is amended by adding at the end the following
new paragraph:
``(7) Qualified battery storage technology expenditure.--
The term `qualified battery storage technology expenditure'
means an expenditure for battery storage technology which--
``(A) is installed in connection with a dwelling
unit located in the United States and used as a
residence by the taxpayer, and
``(B) has a capacity of not less than 3 kilowatt
hours.''.
(c) Effective Date.--The amendments made by this section shall
apply to expenditures made after December 31, 2021.
SEC. 136303. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
(a) Placed in Service Requirement.--Section 179D(c)(2) is amended
by striking ``the date that is 2 years before the date that
construction of such property begins'' and inserting ``the date that is
2 years before the date such property is placed into service''.
(b) Temporary Increase in Deduction, etc..--Section 179D is amended
by adding at the end the following:
``(i) Temporary Rules.--
``(1) Period of application.--The provisions of this
subsection shall apply only to taxable years beginning after
December 31, 2021, and before January 1, 2032.
``(2) Modification of efficiency standard.--Subsection
(c)(1)(D) shall be applied by substituting `25' for `50'.
``(3) Maximum amount of deduction.--
``(A) In general.--The deduction under subsection
(a) with respect to any building for any taxable year
shall not exceed the excess (if any) of--
``(i) the product of--
``(I) the applicable dollar value,
and
``(II) the square footage of the
building, over
``(ii) the aggregate amount of the
deductions under subsection (a) and paragraph
(6) with respect to the building for the 3
taxable years immediately preceding such
taxable year (or, in the case of any such
deduction allowable to a person other than the
taxpayer, for any taxable year ending during
the 4-taxable-year period ending with such
taxable year).
``(B) Applicable dollar value.--For purposes of
paragraph (3)(A)(i), the applicable dollar value shall
be an amount equal to $2.50 increased (but not above
$5.00) by $0.10 for each percentage point by which the
total annual energy and power costs for the building
are certified to be reduced by a percentage greater
than 25 percent.
``(C) Application of inflation adjustment.--
Subsection (g) shall be applied--
``(i) by substituting `2022' for `2020',
``(ii) by substituting `subsection
(i)(3)(B)' for `subsection (b) or subsection
(d)(1)(A)', and
``(iii) by substituting `2021' for `2019'.
``(D) Limitation to apply in lieu of current
limitation and partial allowance.--Subsections (b) and
(d)(1) shall not apply.
``(4) Base credit amount and increased credit amount for
certain property.--
``(A) In general.--In the case of any property
which does not satisfy the requirements of subparagraph
(B), paragraph (3)(B) shall be applied by substituting
`$0.50' for `$2.50', `$.02' for `$.10', and `$1.00' for
`$5.00'.
``(B) Increased credit for certain property meeting
project requirements.--
``(i) Project requirements.--A project
meets the requirements of this subparagraph if
it is one of the following:
``(I) A project which commences
construction prior to the date of the
enactment of this paragraph.
``(II) A project which commences
construction after the date of
enactment of this paragraph and
satisfies the requirements of
paragraphs (5) and (6).
``(III) A project with respect to
which initial construction is completed
and building modifications are made as
part of a qualified retrofit plan, and
which satisfies paragraphs (5) and (6).
``(5) Prevailing wage requirements.--
``(A) In general.--The requirements described in
this subparagraph with respect to any project are that
the taxpayer shall ensure that any laborers and
mechanics employed by contractors and subcontractors in
the construction of any property or with respect to
building modifications made as part of a qualified
retrofit plan shall be paid wages at rates not less
than the prevailing rates for construction, alteration,
or repair of a similar character in the locality as
most recently determined by the Secretary of Labor, in
accordance with subchapter IV of chapter 31 of title
40, United States Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--In the case of any taxpayer
which fails to satisfy the requirement under
subparagraph (A) with respect to any project or any
building modifications made as part of a qualified
retrofit plan, rules similar to the rules of section
45(b)(8)(B) shall apply for purposes of this paragraph.
``(6) Apprenticeship requirements.--The requirements
described in this subparagraph with respect to any property are
as follows:
``(A) Labor hours.--
``(i) Percentage of total labor hours.--All
contractors and subcontractors engaged in the
performance of construction of a project or
building modifications made as part of a
qualified retrofit plan shall, subject to
subparagraph (B), ensure that not less than the
applicable percentage of the total labor hours
of such work be performed by qualified
apprentices.
``(ii) Applicable percentage.--For purposes
of paragraph (1), the applicable percentage
shall be--
``(I) in the case of any applicable
project the construction of which
begins before January 1, 2023, 5
percent,
``(II) in the case of any
applicable project the construction of
which begins after December 31, 2022,
and before January 1, 2024, 10 percent,
and
``(III) in the case of any
applicable project the construction of
which begins after December 31, 2023,
15 percent.
``(B) Apprentice to journeyworker ratio.--The
requirement under subparagraph (A)(i) shall be subject
to any applicable requirements for apprentice-to-
journeyworker ratios of the Department of Labor or the
applicable State apprenticeship agency.
``(C) Participation.--Each contractor and
subcontractor who employs 4 or more individuals to
perform construction, alteration, or repair work on an
applicable project shall employ 1 or more qualified
apprentices to perform such work.
``(D) Exception.--
``(i) In general.--Notwithstanding any
other provision of this paragraph, this
paragraph shall not apply in the case of a
taxpayer who--
``(I) demonstrates a lack of
availability of qualified apprentices
in the geographic area of the
construction, alteration, or repair
work, and
``(II) makes a good faith effort to
comply with the requirements of this
paragraph.
``(ii) Good faith effort.--For purposes of
clause (i), a taxpayer shall be deemed to have
satisfied the requirements under such paragraph
with respect to an applicable project if such
taxpayer has requested qualified apprentices
from a registered apprenticeship program, as
defined in section 3131(e)(3)(B), and such
request has been denied, provided that such
denial is not the result of a refusal by the
contractors or subcontractors engaged in the
performance of construction, alteration, or
repair work on such applicable project to
comply with the established standards and
requirements of such apprenticeship program.
``(E) Definitions.--For purposes of this
paragraph--
``(i) Labor hours.--The term `labor hours'
has the meaning given such term in section
45(b)(9)(E)(i).
``(ii) Qualified apprentice.--The term
`qualified apprentice' has the meaning given
such term in section 45(b)(9)(E)(ii).
``(7) Allocation of deduction by certain tax-exempt
entities.--
``(A) In general.--A specified tax-exempt entity
shall be treated in the same manner as a Federal,
State, or local government for purposes of applying
subsection (d)(4).
``(B) Specified tax-exempt entity.--For purposes of
this paragraph, the term `specified tax-exempt entity'
means--
``(i) the United States, any State or
political subdivision thereof, any possession
of the United States, or any agency or
instrumentality of any of the foregoing,
``(ii) any Indian tribal government (within
the meaning of section 139E), and
``(iii) any organization exempt from tax
imposed by this chapter.
``(8) Alternative deduction for energy efficient retrofit
building property.--
``(A) In general.--In the case of a taxpayer which
elects (at such time and in such manner as the
Secretary, after consultation with the administrator of
the Environmental Protection Agency, may provide) the
application of this paragraph with respect to any
qualified building, there shall be allowed as a
deduction for the taxable year which includes the date
of the qualifying final certification with respect to
the qualified retrofit plan of such building, an amount
equal to the lesser of--
``(i) the excess described in paragraph (3)
(determined by substituting `energy usage
intensity' for `total annual energy and power
costs' in subparagraph (B) thereof), or
``(ii) the aggregate adjusted basis
(determined after taking into account all
adjustments with respect to such taxable year
other than the reduction under subsection (e))
of energy efficient retrofit building property
placed in service by the taxpayer pursuant to
such qualified retrofit plan.
``(B) Qualified retrofit plan.--For purposes of
this paragraph, the term `qualified retrofit plan'
means a written plan prepared by a qualified
professional which specifies modifications to a
building which, in the aggregate, are expected to
reduce such building's energy usage intensity by 25
percent or more in comparison to the baseline energy
usage intensity of such building. Such plan shall
provide for a qualified professional to--
``(i) as of any date during the 1-year
period ending on the date of the first
certification described in clause (ii), certify
the energy usage intensity of such building as
of such date,
``(ii) certify the status of property
installed pursuant to such plan as meeting the
requirements of clauses (ii) and (iii)
subparagraph (C), and
``(iii) as of any date that is more than 1
year after completion of the plan, certify the
energy usage intensity of such building as of
such date.
``(C) Energy efficient retrofit building
property.--For purposes of this paragraph, the term
`energy efficient retrofit building property' means
property--
``(i) with respect to which depreciation
(or amortization in lieu of depreciation) is
allowable,
``(ii) which is installed on or in any
qualified building,
``(iii) which is installed as part of--
``(I) the interior lighting
systems,
``(II) the heating, cooling,
ventilation, and hot water systems, or
``(III) the building envelope, and
``(iv) which is certified in accordance
with subparagraph (B)(ii) as meeting the
requirements of clauses (ii) and (iii).
``(D) Qualified building.--For purposes of this
paragraph, the term `qualified building' means any
building which--
``(i) is located in the United States, and
``(ii) was originally placed in service not
less than 5 years before the establishment of
the qualified retrofit plan with respect to
such building.
``(E) Qualifying final certification.--For purposes
of this paragraph, the term `qualifying final
certification' means, with respect to any qualified
retrofit plan, the certification described in
subparagraph (B)(iii) if the energy usage intensity
certified in such certification is not more than 75
percent of the baseline energy usage intensity of the
building.
``(F) Baseline energy usage intensity.--
``(i) In general.--The term `baseline
energy usage intensity' means the energy usage
intensity certified under subparagraph (B)(i),
as adjusted to take into account weather as
compared to the energy usage intensity
determined under subparagraph (B)(iii)(I).
``(ii) Determination of adjustment.--For
purposes of clause (i), the adjustments
described in such clause shall be determined in
such manner as the Secretary, after
consultation with the Administrator of the
Environmental Protection Agency, may provide.
``(G) Other definitions.--For purposes of this
paragraph--
``(i) Energy usage intensity.--The term
`energy usage intensity' means the site energy
usage intensity determined in accordance with
such regulations or other guidance as the
Secretary, after consultation with the
Administrator of the Environmental Protection
Agency, may provide and measured in British
thermal units.
``(ii) Qualified professional.--The term
`qualified professional' means an individual
who is a licensed architect or a licenced
engineer and meets such other requirements as
the Secretary may provide.
``(H) Coordination with deduction otherwise allowed
under subsection (a).--
``(i) In general.--In the case of any
building with respect to which an election is
made under subparagraph (A), the term `energy
efficient commercial building property' shall
not include any energy efficient retrofit
building property with respect to which a
deduction is allowable under this paragraph.
``(ii) Certain rules not applicable.--
``(I) In general.--Except as
provided in subclause (II), subsection
(d) shall not apply for purposes of
this paragraph.
``(II) Allocation of deduction by
certain tax-exempt entities.--Rules
similar to subsection (d)(4)
(determined after application of
paragraph (5)) shall apply for purposes
of this paragraph.''.
(c) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendment made by this section shall apply to
taxable years beginning after December 31, 2021.
(2) Alternative deduction for energy efficient retrofit
building property.--Paragraph (6) of section 179D(i) of the
Internal Revenue Code of 1986 (as added by this section), and
any other provision of such section solely for purposes of
applying such paragraph, shall apply to property placed in
service after December 31, 2021 (in taxable years ending after
such date) if such property is placed in service pursuant to
qualified retrofit plan (within the meaning of such section)
established after such date.
SEC. 136304. EXTENSION, INCREASE, AND MODIFICATIONS OF NEW ENERGY
EFFICIENT HOME CREDIT.
(a) Extension of Credit.--Section 45L(g) is amended by striking
``December 31, 2021'' and inserting ``December 31, 2031''.
(b) Increase in Credit Amounts.--Section 45L(a)(2) is amended to
read as follows:
``(2) Applicable amount.--For purposes of paragraph (1),
the applicable amount is an amount equal to--
``(A) in the case of a dwelling unit which is
eligible to participate in the Energy Star Residential
New Construction Program or the Energy Star
Manufactured New Homes program--
``(i) that is described in subsection
(c)(1)(A) (and not described in subsection
(c)(1)(B)), $2,500, and
``(ii) that is described in subsection
(c)(1)(B), $5000, and
``(B) in the case of a dwelling which are part of a
building eligible to participate in the Energy Star
Multifamily New Construction Program--
``(i) that is described in subsection
(c)(1)(A) (and not described in subsection
(c)(1)(B)), $500, and
``(ii) that is described in subsection
(c)(1)(B), $1000.''.
(c) Modification of Energy Saving Requirements.--Section 45L(c) is
amended to read as follows:
``(c) Energy Saving Requirements.--
``(1) In general.--A dwelling unit meets the energy saving
requirements of this subsection if--
``(A) such dwelling unit meets the requirements of
paragraph (2) or (3) (whichever is applicable), or
``(B) such dwelling unit is certified as a zero
energy ready home under the zero energy ready home
program of the Department of Energy (or any successor
program determined by the Secretary, after consultation
with the Secretary of Energy) as in effect on January
1, 2022.
``(2) Single-family home requirements.--A dwelling unit
meets the requirements of this paragraph if--
``(A) such dwelling unit meets--
``(i) in the case of a dwelling unit
acquired before January 1, 2025, the Energy
Star Single-Family New Homes National Program
Requirements 3.1, and
``(ii) in the case of a dwelling unit
acquired after December 31, 2024, the Energy
Star Single-Family New Homes National Program
Requirements 3.2,
``(B) such dwelling unit meets the most recent
Energy Star Single-Family New Homes Program
Requirements applicable to the location of such
dwelling unit (as in effect on the latter of January 1,
2022 or January 1 of two calendar years prior to the
date the dwelling was acquired), or
``(C) such dwelling unit meets the most recent
Energy Star Manufactured Home National program
requirements as in effect on the latter of January 1,
2022 or January 1 of two calendar years prior to the
date such dwelling unit is acquired.
``(3) Multi-family home requirements.--A dwelling unit
meets the requirements of this paragraph if--
``(A) such dwelling unit meets the most recent
Energy Star Multifamily New Construction National
Program Requirements (as in effect on either January 1,
2022 or January 1 of three calendar years prior to the
date the dwelling was acquired, whichever is later),
and
``(B) such dwelling unit meets the most recent
Energy Star Multifamily New Construction Regional
Program Requirements applicable to the location of such
dwelling unit (as in effect on either January 1, 2022
or January 1 of three calendar years prior to the date
the dwelling was acquired, whichever is later).''.
(d) Prevailing Wage Requirement.--Section 45L is amended by
redesignating subsection (g) as subsection (h) and by inserting after
subsection (f) the following new subsection:
``(g) Prevailing Wage Requirement.--
``(1) In general.--In the case of a qualifying residence
described in subsection (b)(2)(B) meeting the prevailing wage
requirements of paragraph (2), the credit amount allowed with
respect to such residence shall be--
``(A) $2,500 in the case of a residence described
in subparagraph (A) of subsection (c)(1) (and not
described in subparagraph (B) of such subsection), and
``(B) $5,000 in the case of a residence described
in (c)(1)(B).
``(2) Prevailing wage requirements.--
``(A) In general.--The requirements described in
this paragraph with respect to any qualified residence
are that the taxpayer shall ensure that any laborers
and mechanics employed by contractors and
subcontractors in the construction of such residence
shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or
repair of a similar character in the locality as most
recently determined by the Secretary of Labor, in
accordance with subchapter IV of chapter 31 of title
40, United States Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--In the case of any taxpayer
which fails to satisfy the requirement under
subparagraph (A) with respect to any qualified
residence, rules similar to the rules of section
45(b)(8)(B) shall apply for purposes of this paragraph.
``(3) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary determines
necessary or appropriate to carry out the purposes of this
subsection.''.
(e) Effective Dates.--The amendments made by this section shall
apply to dwelling units acquired after December 31, 2021.
SEC. 136305. MODIFICATIONS TO INCOME EXCLUSION FOR CONSERVATION
SUBSIDIES.
(a) In General.--Section 136(a) is amended--
(1) by striking ``any subsidy provided'' and inserting
``any subsidy--
``(1) provided'',
(2) by striking the period at the end and inserting a
comma, and
(3) by adding at the end the following new paragraphs:
``(2) provided (directly or indirectly) by a public utility
to a customer, or by a State or local government to a resident
of such State or locality, for the purchase or installation of
any water conservation or efficiency measure,
``(3) provided (directly or indirectly) by a storm water
management provider to a customer, or by a State or local
government to a resident of such State or locality, for the
purchase or installation of any storm water management measure,
or
``(4) provided (directly or indirectly) by a State or local
government to a resident of such State or locality for the
purchase or installation of any wastewater management measure,
but only if such measure is with respect to the taxpayer's
principal residence.''.
(b) Conforming Amendments.--
(1) Definition of water conservation or efficiency measure
and storm water management measure.--Section 136(c) is
amended--
(A) by striking ``Energy Conservation Measure'' in
the heading thereof and inserting ``Definitions'',
(B) by striking ``In general'' in the heading of
paragraph (1) and inserting ``Energy conservation
measure'', and
(C) by redesignating paragraph (2) as paragraph (5)
and by inserting after paragraph (1) the following:
``(2) Water conservation or efficiency measure.--For
purposes of this section, the term `water conservation or
efficiency measure' means any evaluation of water use, or any
installation or modification of property, the primary purpose
of which is to reduce consumption of water or to improve the
management of water demand with respect to one or more dwelling
units.
``(3) Storm water management measure.--For purposes of this
section, the term `storm water management measure' means any
installation or modification of property primarily designed to
reduce or manage amounts of storm water with respect to one or
more dwelling units.
``(4) Wastewater management measure.--For purposes of this
section, the term `wastewater management measure' means any
installation or modification of property primarily designed to
manage wastewater (including septic tanks and cesspools) with
respect to one or more dwelling units.''.
(2) Definition of public utility.--Section 136(c)(5) (as
redesignated by paragraph (1)(C)) is amended by striking
subparagraph (B) and inserting the following:
``(B) Public utility.--The term `public utility'
means a person engaged in the sale of electricity,
natural gas, or water to residential, commercial, or
industrial customers for use by such customers.
``(C) Storm water management provider.--The term
`storm water management provider' means a person
engaged in the provision of storm water management
measures to the public.
``(D) Person.--For purposes of subparagraphs (B)
and (C), the term `person' includes the Federal
Government, a State or local government or any
political subdivision thereof, or any instrumentality
of any of the foregoing.''.
(3) Clerical amendments.--
(A) The heading for section 136 is amended--
(i) by inserting ``and water'' after
``energy'', and
(ii) by striking ``provided by public
utilities''.
(B) The item relating to section 136 in the table
of sections of part III of subchapter B of chapter 1 is
amended--
(i) by inserting ``and water'' after
``energy'', and
(ii) by striking ``provided by public
utilities''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts received after December 31, 2018.
(d) No Inference.--Nothing in this Act or the amendments made by
this Act shall be construed to create any inference with respect to the
proper tax treatment of any subsidy received directly or indirectly
from a public utility, a storm water management provider, or a State or
local government for any water conservation measure or storm water
management measure before January 1, 2019.
PART 4--GREENING THE FLEET AND ALTERNATIVE VEHICLES
SEC. 136401. REFUNDABLE NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR
VEHICLE CREDIT FOR INDIVIDUALS.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
is amended by inserting after section 36B the following new section:
``SEC. 36C. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this subtitle
for the taxable year an amount equal to the sum of the credit amounts
determined under subsection (b) with respect to each new qualified
plug-in electric drive motor vehicle placed in service by the taxpayer
during the taxable year.
``(b) Per Vehicle Dollar Limitation.--
``(1) In general.--The amount determined under this
subsection with respect to any new qualified plug-in electric
drive motor vehicle is the sum of the amounts determined under
paragraphs (2) through (5) with respect to such vehicle (not to
exceed 50 percent of the purchase price of such vehicle).
``(2) Base amount.--The amount determined under this
paragraph is $4,000.
``(3) Battery capacity.--In the case of a new qualified
plug-in electric drive motor vehicle, the amount determined
under this paragraph is $3,500 if--
``(A) in the case of a vehicle placed in service
before January 1, 2027, such vehicle draws propulsion
energy from a battery with not less than 40 kilowatt
hours of capacity, and
``(B) in the case of a vehicle placed in service
after December 31, 2026, such vehicle draws propulsion
energy from a battery with not less than 50 kilowatt
hours of capacity.
``(4) Domestic assembly.--In the case of a new qualified
plug-in vehicle which satisfies the domestic assembly
qualifications, the amount determined under this paragraph is
$4,500.
``(5) Domestic content.--In the case of a new qualified
plug-in vehicle which satisfies domestic content
qualifications, the amount determined under this paragraph is
$500.
``(c) Limitation Based on Modified Adjusted Gross Income.--
``(1) In general.--The amount of the credit allowable under
subsection (a) shall be reduced (but not below zero) by $200
for each $1,000 (or fraction thereof) by which the taxpayer's
modified adjusted gross income exceeds the threshold amount.
For purposes of the preceding sentence, the term `modified
adjusted gross income' means adjusted gross income increased by
any amount excluded from gross income under section 911, 931,
or 933.
``(2) Special rule for determination of modified adjusted
gross income.--The modified adjusted gross income of the
taxpayer that is taken into account for purposes of paragraph
(1) shall be the lesser of--
``(A) the modified adjusted gross income for the
taxable year in which the credit is claimed, or
``(B) the modified adjusted gross income for the
immediately preceding taxable year.
``(3) Threshold amount.--For purposes of paragraph (1), the
term `threshold amount' means--
``(A) $800,000 in the case of a joint return or
surviving spouse (half such amount for married filing
separately),
``(B) $600,000 in the case of a head of household,
and
``(C) $400,000 in any other case.
``(d) Manufacturer's Suggested Retail Price Limitation.--
``(1) In general.--No credit shall be allowed under
subsection (a) for a vehicle with a manufacturer's suggested
retail price in excess of the applicable limitation.
``(2) Applicable limitation.--For purposes of paragraph
(1), the applicable limitation for each vehicle classification
is as follows:
``(A) Sedans.--In the case of a sedan, $55,000.
``(B) Vans.--In the case of a van, $64,000.
``(C) Sport utility vehicles.--In the case of a
sport utility vehicle, $69,000.
``(D) Pickup trucks.--In the case of a pickup
truck, $74,000.
``(3) Regulations.--For purposes of this subsection, the
Secretary shall prescribe regulations for determining vehicle
classifications using criteria similar to that employed by the
Environmental Protection Agency and the Department of Energy to
determine size and class of vehicles.
``(e) New Qualified Plug-in Electric Drive Motor Vehicle.--For
purposes of this section--
``(1) In general.--The term `new qualified plug-in electric
drive motor vehicle' means a motor vehicle--
``(A) the original use of which commences with the
taxpayer,
``(B) which is acquired for use by the taxpayer and
not for resale,
``(C) which is made by a qualified manufacturer,
``(D) which is treated as a motor vehicle for
purposes of title II of the Clean Air Act,
``(E) which has a gross vehicle weight rating of
less than 14,000 pounds,
``(F) which is propelled to a significant extent by
an electric motor which draws electricity from a
battery which--
``(i) has a capacity of--
``(I) in the case of a vehicle
placed in service in 2022 or 2023, not
less than 7 kilowatt hours, and
``(II) in the case of a vehicle
placed in service after 2023, not less
than 10 kilowatt hours, and
``(ii) is capable of being recharged from
an external source of electricity,
``(G) for which, in the case of a vehicle placed
into service after December 31, 2026, final assembly is
within the United States, and
``(H) is not of a character subject to an allowance
for depreciation.
``(2) Motor vehicle.--The term `motor vehicle' means any
vehicle which is manufactured primarily for use on public
streets, roads, and highways (not including a vehicle operated
exclusively on a rail or rails) and which has at least 4
wheels.
``(3) Qualified manufacturer.--The term `qualified
manufacturer' means any manufacturer (within the meaning of the
regulations prescribed by the Administrator of the
Environmental Protection Agency for purposes of the
administration of title II of the Clean Air Act (42 U.S.C. 7521
et seq.) which enters into a written agreement with the
Secretary under which such manufacturer agrees--
``(A) to ensure that each vehicle manufactured by
such manufacturer after the later of the date on which
such agreement takes effect or December 31, 2021, and
that meets the requirements of subparagraphs (D), (E),
and (F) of paragraph (1) and paragraph (6) of
subsection (e) is labeled with a unique vehicle
identification number, and
``(B) to make periodic written reports to the
Secretary (at such times and in such manner as the
Secretary may provide) providing such vehicle
identification numbers and such other information
related to such vehicle as the Secretary may require.
``(4) Battery capacity.--The term `capacity' means, with
respect to any battery, the quantity of electricity which the
battery is capable of storing, expressed in kilowatt hours, as
measured from a 100 percent state of charge to a 0 percent
state of charge.
``(f) Special Rules.--
``(1) Basis reduction.--For purposes of this subtitle, the
basis of any property for which a credit is allowable under
subsection (a) shall be reduced by the amount of such credit so
allowed.
``(2) No double benefit.--The amount of any deduction or
other credit allowable under this chapter for a vehicle for
which a credit is allowable under subsection (a) shall be
reduced by the amount of credit allowed under such subsection
for such vehicle.
``(3) Property used outside united states not qualified.--
No credit shall be allowable under subsection (a) with respect
to any property referred to in section 50(b)(1).
``(4) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which ceases
to be property eligible for such credit.
``(5) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(6) Interaction with air quality and motor vehicle safety
standards.--A vehicle shall not be considered eligible for a
credit under this section unless such vehicle is in compliance
with--
``(A) the applicable provisions of the Clean Air
Act for the applicable make and model year of the
vehicle (or applicable air quality provisions of State
law in the case of a State which has adopted such
provision under a waiver under section 209(b) of the
Clean Air Act), and
``(B) the motor vehicle safety provisions of
sections 30101 through 30169 of title 49, United States
Code.
``(g) Credit Allowed for 2 and 3-wheeled Plug-in Electric
Vehicles.--
``(1) In general.--In the case of a qualified 2- or 3-
wheeled plug-in electric vehicle--
``(A) there shall be allowed as a credit against
the tax imposed by this subtitle for the taxable year
an amount equal to the sum of the applicable amount
with respect to each such qualified 2- or 3-wheeled
plug-in electric vehicle placed in service by the
taxpayer during the taxable year, and
``(B) the amount of the credit allowed under
subparagraph (A) shall be treated as a credit allowed
under subsection (a).
``(2) Applicable amount.--For purposes of paragraph (1),
the applicable amount is an amount equal to the lesser of--
``(A) 10 percent of the cost of the qualified 2- or
3-wheeled plug-in electric vehicle, or
``(B) $2,500.
``(3) Qualified 2- or 3-wheeled plug-in electric vehicle.--
The term `qualified 2- or 3-wheeled plug-in electric vehicle'
means any vehicle which--
``(A) has 2 or 3 wheels,
``(B) meets the requirements of subparagraphs (A),
(B), (C), (E), (F), and (G) of subsection (e)(1)
(determined by substituting `2.5 kilowatt hours' for `7
kilowatt hours' in subparagraph (F)(i)(I) and by
substituting `2.5 kilowatt hours' for `10 kilowatt
hours' in subparagraph (F)(i)(II)),
``(C) is manufactured primarily for use on public
streets, roads, and highways, and
``(D) is capable of achieving a speed of 45 miles
per hour or greater.
``(h) VIN Number Requirement.--No credit shall be allowed under
this section with respect to any vehicle unless the taxpayer includes
the vehicle identification number of such vehicle on the return of tax
for the taxable year.
``(i) Treatment of Certain Possessions.--
``(1) Payments to possessions with mirror code tax
systems.--The Secretary shall pay to each possession of the
United States which has a mirror code tax system amounts equal
to the loss (if any) to that possession by reason of the
application of the provisions of this section (determined
without regard to this subsection). Such amounts shall be
determined by the Secretary based on information provided by
the government of the respective possession.
``(2) Payments to other possessions.--The Secretary shall
pay to each possession of the United States which does not have
a mirror code tax system amounts estimated by the Secretary as
being equal to the aggregate benefits (if any) that would have
been provided to residents of such possession by reason of the
provisions of this section if a mirror code tax system had been
in effect in such possession. The preceding sentence shall not
apply unless the respective possession has a plan which has
been approved by the Secretary under which such possession will
promptly distribute such payments to its residents.
``(3) Mirror code tax system; treatment of payments.--Rules
similar to the rules of paragraphs (4) and (5) of section 21(h)
shall apply for purposes of this section.
``(j) Assembly and Content Qualifications.--For purposes of this
section--
``(1) Domestic assembly qualifications.--The term `domestic
assembly qualifications' means, with respect to any new
qualified plug-in electric vehicle, that the final assembly of
such vehicle occurs at a plant, factory, or other place which
is operating under a collective bargaining agreement negotiated
by an employee organization (as defined in section 412(c)(4)),
determined in a manner consistent with section 7701(a)(46).
``(2) Domestic content qualifications.--The term `domestic
content qualifications' means, with respect to any model of a
new qualified plug-in electric vehicle, that vehicles of that
model--
``(A) are assembled by a manufacturer which
utilizes not less than 50 percent domestic content in
the component parts for final assembly of such
vehicles, and
``(B) are powered by battery cells which are
manufactured in the United States (with suchbattery
cells to be included for purposes of the requirement
described in subparagraph (A)), as certified by the
manufacturer, at such time, and in such form and
manner, as the Secretary may prescribe.
``(3) Final assembly.--The term `final assembly' means the
process by which a manufacturer produces a new qualified plug-
in electric vehicle at, or through the use of, a plant,
factory, or other place from which the vehicle is delivered to
a dealer or importer with all component parts necessary for the
mechanical operation of the vehicle included with the vehicle,
whether or not the component parts are permanently installed in
or on the vehicle.
``(k) Termination.--No credit shall be allowed under this section
with respect to any vehicle acquired after December 31, 2031.''.
(b) Transfer of Credit.--Subsection (f) of section 36C is amended
by adding at the end the following new paragraphs:
``(7) In general.--Subject to such regulations or other
guidance as the Secretary determines necessary or appropriate,
if, with respect to the credit allowed under subsection (a) for
any taxable year, the taxpayer elects the application of this
subparagraph for such taxable year with respect to such credit,
the eligible entity specified in such election, and not the
taxpayer who has purchased or leased the vehicle, shall be
treated as the taxpayer for purposes of this title with respect
to such credit.
``(8) Eligible entity.--For purposes of this paragraph, the
term `eligible entity' means, with respect to the vehicle for
which the credit is allowed under subsection (a), the dealer
which sold such vehicle to the taxpayer and has--
``(A) subject to paragraph (10), registered with
the Secretary for purposes of this paragraph, at such
time, and in such form and manner, as the Secretary may
prescribe,
``(B) prior to the election described in paragraph
(7), disclosed to the taxpayer purchasing such
vehicle--
``(i) the manufacturer's suggested retail
price,
``(ii) the value of the credit allowed or
other incentive available for the purchase or
lease of such vehicle,
``(iii) all fees associated with the
purchase or lease of such vehicle, and
``(iv) the amount provided by the dealer to
such taxpayer as a condition of the election
described in paragraph (7),
``(C) made payment to such taxpayer (whether in
cash or in the form of a partial payment or down
payment for the purchase of such vehicle) in an amount
equal to the credit otherwise allowable to such
taxpayer, and
``(D) with respect to any incentive otherwise
available for the purchase of a vehicle for which a
credit is allowed under this section, including any
incentive in the form of a rebate or discount provided
by the dealer or manufacturer, ensured that--
``(i) the availability or use of such
incentive shall not limit the ability of a
taxpayer to make an election described in
paragraph (7), and
``(ii) such election shall not limit the
value or use of such incentive.
``(9) Timing.--An election described in paragraph (7) shall
be made by the taxpayer not later than the date on which the
vehicle for which the credit is allowed under subsection (a) is
purchased.
``(10) Revocation of registration.--Upon determination by
the Secretary that a dealer has failed to comply with the
requirements described in paragraph (8), the Secretary may
revoke the registration (as described in subparagraph (A) of
such subparagraph) of such dealer.
``(11) Tax treatment of payments.--With respect to any
payment described in paragraph (8)(C), such payment--
``(A) shall not be includible in the gross income
of the taxpayer, and
``(B) with respect to the dealer, shall not be
deductible under this title.
``(12) Advance payment to registered dealers.--
``(A) In general.--The Secretary shall establish a
program to make advance payments to any eligible entity
in an amount equal to the cumulative amount of the
credits allowed under subsection (a) with respect to
any vehicles sold by such entity for which an election
described in paragraph (1) has been made.
``(B) Excessive payments.--Rules similar to the
rules of section 6417(c)(8) shall apply for purposes of
this subparagraph.
``(13) Dealer.--For purposes of this paragraph, the term
`dealer' means a person licensed by a State, the District of
Columbia, the Commonwealth of Puerto Rico, any other territory
or possession of the United States, or an Indian Tribe (as
defined in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5304)) to engage in the
sale of vehicles.''.
(c) Repeal of Nonrefundable New Qualified Plug-in Electric Drive
Motor Vehicle Credit.--Subpart B of part IV of subchapter A of chapter
1 is amended by striking section 30D (and by striking the item relating
to such section in the table of sections of such subpart).
(d) Conforming Amendments.--
(1) Section 1016(a)(37) is amended by striking ``section
30D(f)(1)'' and inserting ``section 36C(f)(1)''.
(2) Section 6211(b)(4)(A) is amended by inserting ``36C,''
after ``36B,''.
(3) Section 6213(g)(2), as amended by the preceding
provisions of this Act, is amended--
(A) in subparagraph (R), by striking ``and'' at the
end,
(B) in subparagraph (S), by striking the period at
the end and inserting ``, and'', and
(C) by adding at the end the following:
``(T) an omission of a correct vehicle
identification number required under section 36C(f)
(relating to credit for new qualified plug-in electric
drive motor vehicles) to be included on a return.''.
(4) Section 6501(m) is amended by striking ``30D(e)(4)''
and inserting ``36C(f)(5)''.
(5) Section 166(b)(5)(A)(ii) of title 23, United States
Code, is amended by striking ``section 30D(d)(1)'' and
inserting ``section 36C(e)(1)''.
(6) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``36C,'' after ``36B,''.
(7) The table of sections for subpart C of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 36B the following new item:
``Sec. 36C. New qualified plug-in electric drive motor vehicles.''.
(e) Effective Dates.--
(1) The amendments made by subsections (a), (c), and (d) of
this section shall apply to vehicles acquired after December
31, 2021.
(2) The amendments made by subsection (b) shall apply to
vehicles purchased or leased after December 31, 2022.
SEC. 136402. CREDIT FOR PREVIOUSLY-OWNED QUALIFIED PLUG-IN ELECTRIC
DRIVE MOTOR VEHICLES.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1,
as amended by the preceding provisions of this Act, is amended by
inserting after section 36C the following new section:
``SEC. 36D. PREVIOUSLY-OWNED QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR
VEHICLES.
``(a) Allowance of Credit.--In the case of a qualified buyer who
during a taxable year places in service a previously-owned qualified
plug-in electric drive motor vehicle, there shall be allowed as a
credit against the tax imposed by this subtitle for the taxable year an
amount equal to the sum of--
``(1) $1,250, plus
``(2) in the case of a vehicle which draws propulsion
energy from a battery which exceeds 4 kilowatt hours of
capacity (determined at the time of sale), the lesser of--
``(A) $1,250, and
``(B) the product of $208.50 and such excess
kilowatt hours.
``(b) Limitations.--
``(1) Sale price.--The credit allowed under subsection (a)
with respect to sale of a vehicle shall not exceed 30 percent
of the sale price.
``(2) Adjusted gross income.--The amount which would (but
for this paragraph) be allowed as a credit under subsection (a)
shall be reduced (but not below zero) by $200 for each $1,000
(or fraction thereof) by which the taxpayer's adjusted gross
income exceeds--
``(A) $150,000 in the case of a joint return or a
surviving spouse (as defined in section 2(a)),
``(B) $112,500 in the case of a head of household
(as defined in section 2(b)), and
``(C) $75,000 in the case of a taxpayer not
described in paragraph (1) or (2).
``(c) Definitions.--For purposes of this section--
``(1) Previously-owned qualified plug-in electric drive
motor vehicle.--The term `previously-owned qualified plug-in
electric drive motor vehicle' means, with respect to a
taxpayer, a motor vehicle--
``(A) the model year of which is at least 2 earlier
than the calendar year in which the taxpayer acquires
such vehicle,
``(B) the original use of which commences with a
person other than the taxpayer,
``(C) which is acquired by the taxpayer in a
qualified sale,
``(D) registered by the taxpayer for operation in a
State or possession of the United States, and
``(E) which meets the requirements of subparagraphs
(C), (D), (E), (F), and (G) of section 36C(e)(1).
``(2) Qualified sale.--The term `qualified sale' means a
sale of a motor vehicle--
``(A) by a seller who holds such vehicle in
inventory (within the meaning of section 471) for sale
or lease,
``(B) for a sale price not to exceed $25,000, and
``(C) which is the first transfer since the date of
the enactment of this section to a person other than
the person with whom the original use of such vehicle
commenced.
``(3) Qualified buyer.--The term `qualified buyer' means,
with respect to a sale of a motor vehicle, a taxpayer--
``(A) who is an individual,
``(B) who purchases such vehicle for use and not
for resale,
``(C) with respect to whom no deduction is
allowable with respect to another taxpayer under
section 151,
``(D) who has not been allowed a credit under this
section for any sale during the 3-year period ending on
the date of the sale of such vehicle, and
``(E) who possesses a certificate issued by the
seller that certifies--
``(i) that the vehicle is a previously-
owned qualified plug-in electric drive motor
vehicle,
``(ii) the vehicle identification number of
such vehicle,
``(iii) the capacity of the battery at time
of sale, and
``(iv) such other information as the
Secretary may require.
``(4) Motor vehicle; capacity.--The terms `motor vehicle'
and `capacity' have the meaning given such terms in paragraphs
(2) and (4) of section 36C(e), respectively.
``(d) VIN Number Requirement.--No credit shall be allowed under
subsection (a) with respect to any vehicle unless the taxpayer includes
the vehicle identification number of such vehicle on the return of tax
for the taxable year.
``(e) Application of Certain Rules.--For purposes of this section,
rules similar to the rules of paragraphs (1), (2), (4), (5), (6) and
(7) of section 36C(f) shall apply for purposes of this section.
``(f) Certificate Submission Requirement.--The Secretary may
require that the issuer of the certificate described in subsection
(c)(3)(E) submit such certificate to the Secretary at the time and in
the manner required by the Secretary.
``(g) Treatment of Certain Possessions.--
``(1) Payments to possessions with mirror code tax
systems.--The Secretary shall pay to each possession of the
United States which has a mirror code tax system amounts equal
to the loss (if any) to that possession by reason of the
application of the provisions of this section. Such amounts
shall be determined by the Secretary based on information
provided by the government of the respective possession.
``(2) Payments to other possessions.--The Secretary shall
pay to each possession of the United States which does not have
a mirror code tax system amounts estimated by the Secretary as
being equal to the aggregate benefits (if any) that would have
been provided to residents of such possession by reason of the
provisions of this section if a mirror code tax system had been
in effect in such possession. The preceding sentence shall not
apply unless the respective possession has a plan which has
been approved by the Secretary under which such possession will
promptly distribute such payments to its residents.
``(3) Mirror code tax system; treatment of payments.--Rules
similar to the rules of paragraphs (4) and (5) of section 21(h)
shall apply for purposes of this section.
``(h) Termination.--No credit shall be allowed under this section
with respect to any vehicle acquired after December 31, 2031.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A), as amended by the preceding
provisions of this Act, is amended by inserting ``36D,'' after
``36C,''.
(2) Section 6213(g)(2), as amended by the preceding
provisions of this Act, is amended--
(A) in subparagraph (S), by striking ``and'' at the
end,
(B) in subparagraph (T), by striking the period at
the end and inserting ``, and'', and
(C) by adding at the end the following:
``(U) an omission of a correct vehicle
identification number required under section 36D(d)
(relating to credit for previously-owned qualified
plug-in electric drive motor vehicles) to be included
on a return.''.
(3) Paragraph (2) of section 1324(b) of title 31, United
States Code, as amended by the preceding provisions of this
Act, is amended by inserting ``36D,'' after ``36C,''.
(c) Clerical Amendment.--The table of sections for subpart C of
part IV of subchapter A of chapter 1, as amended by the preceding
provisions of this Act, is amended by inserting after the item relating
to section 36C the following new item:
``Sec. 36D. Previously-owned qualified plug-in electric drive motor
vehicles.''.
(d) Effective Date.--The amendments made by this section shall
apply to vehicles acquired after December 31, 2021.
SEC. 136403. QUALIFIED COMMERCIAL ELECTRIC VEHICLES.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
is amended by adding at the end the following new section:
``SEC. 45Y. CREDIT FOR QUALIFIED COMMERCIAL ELECTRIC VEHICLES.
``(a) In General.--For purposes of section 38, the qualified
commercial electric vehicle credit for any taxable year is an amount
equal to the sum of the credit amounts determined under subsection (b)
with respect to each qualified commercial electric vehicle placed in
service by the taxpayer during the taxable year.
``(b) Per Vehicle Amount.--The amount determined under this
subsection with respect to any qualified commercial electric vehicle
shall be equal to 30 percent of the basis of such vehicle.
``(c) Qualified Commercial Electric Vehicle.--For purposes of this
section, the term `qualified commercial electric vehicle' means any
vehicle which--
``(1) meets the requirements of subparagraphs (A) and (C)
of section 36C(e)(1) without regard to any gross vehicle weight
rating, and is acquired for use or lease by the taxpayer and
not for resale,
``(2) either--
``(A) meets the requirements of subparagraph (D) of
section 36C(e)(1), or
``(B) is mobile machinery, as defined in section
4053(8),
``(3) is primarily propelled by an electric motor which
draws electricity from a battery which--
``(A) has a capacity of not less than 30 kilowatt
hours,
``(B) is capable of being recharged from an
external source of electricity,
``(C) is not powered or charged by an internal
combustion engine, or
``(D) is a new qualified fuel cell motor vehicle
described in subparagraphs (A) and (B) of section
30B(b)(3), and
``(4) is of a character subject to the allowance for
depreciation.
``(d) Special Rules.--
``(1) In general.--Rules similar to the rules under
subsection (f) of section 36C shall apply for purposes of this
section.
``(2) Property used by tax-exempt entity.--In the case of a
vehicle the use of which is described in paragraph (3) or (4)
of section 50(b) and which is not subject to a lease, the
person who sold such vehicle to the person or entity using such
vehicle shall be treated as the taxpayer that placed such
vehicle in service, but only if such person clearly discloses
to such person or entity in a document the amount of any credit
allowable under subsection (a) with respect to such vehicle.
``(e) VIN Number Requirement.--No credit shall be determined under
subsection (a) with respect to any vehicle unless the taxpayer includes
the vehicle identification number of such vehicle on the return of tax
for the taxable year.
``(f) Termination.--No credit shall be determined under this
section with respect to any vehicle acquired after December 31,
2031.''.
(b) Conforming Amendments.--
(1) Section 38(b) is amended by striking paragraph (30) and
inserting the following:
``(30) the qualified commercial electric vehicle credit
determined under section 45Y,''.
(2) Section 6213(g)(2), as amended by the preceding
provisions of this Act, is amended--
(A) in subparagraph (T), by striking ``and'' at the
end,
(B) in subparagraph (U), by striking the period at
the end and inserting ``, and'', and
(C) by adding at the end the following:
``(V) an omission of a correct vehicle
identification number required under section 45Y(e)
(relating to commercial electric vehicle credit) to be
included on a return.''.
(3) The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 45Y. Qualified commercial electric vehicle credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to vehicles acquired after December 31, 2021.
SEC. 136404. QUALIFIED FUEL CELL MOTOR VEHICLES.
(a) In General.--Section 30B(k)(1) is amended by striking
``December 31, 2021'' and inserting ``December 31, 2031''.
(b) New Qualified Fuel Cell Motor Vehicle.--Section 30B(b) is
amended by striking ``and'' at the end of subparagraph (D), by striking
the period at the end of subparagraph (E) and inserting ``, and'', and
by adding at the end the following new subparagraph:
``(F) which is not property of a character subject
to an allowance for depreciation.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2021.
SEC. 136405. ALTERNATIVE FUEL REFUELING PROPERTY CREDIT.
(a) In General.--Section 30C(g) is amended by striking ``December
31, 2021'' and inserting ``December 31, 2031''.
(b) Additional Credit for Certain Electric Charging Property.--
(1) In general.--Section 30C(a) is amended--
(A) by striking ``equal to 30 percent'' and
inserting the following: ``equal to the sum of--
``(1) 30 percent'',
(B) by striking the period at the end and inserting
``, plus'', and
(C) by adding at the end the following new
paragraph:
``(2) 20 percent of so much of such cost as exceeds the
limitation under subsection (b)(1) that does not exceed the
amount of cost attributable to qualified alternative vehicle
refueling property (determined without regard to subsection
(c)(1) and as if only electricity, and fuel at least 85 percent
of the volume of which consists of hydrogen, were treated as
clean-burning fuels for purposes of section 179A(d)) which--
``(A) is intended for general public use with no
associated fee or payment arrangement,
``(B) is intended for general public use and
accepts payment via a credit card reader, including a
credit card reader that uses contactless technology, or
``(C) is intended for use exclusively by fleets of
commercial or governmental vehicles.''.
(2) Conforming amendment.--Section 30C(b) is amended--
(A) by striking ``The credit allowed under
subsection (a)'' and inserting ``The amount of cost
taken into account under subsection (a)(1)'',
(B) by striking ``$30,000'' and inserting
``$100,000'', and
(C) by striking ``$1,000'' and inserting
``$3,333.33''.
(3) Bidirectional charging equipment included as qualified
alternative fuel vehicle refueling property.--Section 30C(c) is
amended--
(A) by striking ``For purposes of this section, the
term'' and inserting ``For purposes of this section--
``(1) In general.--The term'', and
(B) by adding at the end the following new
paragraph:
``(2) Bidirectional charging equipment.--Property shall not
fail to be treated as qualified alternative vehicle refueling
property solely because such property--
``(A) is capable of charging the battery of a motor
vehicle propelled by electricity, and
``(B) allows discharging electricity from such
battery to an electric load external to such motor
vehicle.''.
(c) Certain Electric Charging Stations Included as Qualified
Alternative Fuel Vehicle Refueling Property.--Section 30C is amended by
redesignating subsections (f) and (g) as subsections (g) and (h),
respectively, and by inserting after subsection (e) the following:
``(f) Special Rule for Electric Charging Stations for Certain
Vehicles With 2 or 3 Wheels.--For purposes of this section--
``(1) In general.--The term `qualified alternative fuel
vehicle refueling property' includes any property described in
subsection (c) for the recharging of a motor vehicle described
in paragraph (2) that is propelled by electricity, but only if
the property--
``(A) meets the requirements of subsection (a)(2),
and
``(B) is of a character subject to depreciation.
``(2) Motor vehicle.--A motor vehicle is described in this
paragraph if the motor vehicle--
``(A) is manufactured primarily for use on public
streets, roads, or highways (not including a vehicle
operated exclusively on a rail or rails), and
``(B) has at least 2, but not more than 3,
wheels.''.
(d) Wage and Apprenticeship Requirements.--Section 30C, as amended
by this section, is further amended by redesignating subsections (g)
and (h) as subsections (h) and (i) and by inserting after subsection
(f) the following new subsection:
``(g) Wage and Apprenticeship Requirements.--
``(1) Base credit amount and increased credit amount.--
``(A) In general.--In the case of any qualified
alternative fuel vehicle refueling property which does
not satisfy the requirements of subparagraph (B), the
amount of the credit determined under subsection (a)
shall be 20 percent of such amount (determined without
regard to this sentence).
``(B) Increased credit for certain qualified
alternative fuel vehicle refueling property meeting
project requirements.--
``(i) In general.--In the case of any
qualified alternative fuel vehicle refueling
property which meets the project requirements
of this subparagraph, subparagraph (A) shall
not apply.
``(ii) Project requirements.--A project
meets the requirements of this subparagraph if
it is one of the following:
``(I) A project which commences
construction prior to the date of the
enactment of this paragraph.
``(II) A project which satisfies
the requirements of paragraphs (2) and
(3).
``(2) Prevailing wage requirements.--
``(A) In general.--The requirements described in
this subparagraph with respect to any qualified
alternative fuel vehicle refueling property are that
the taxpayer shall ensure that any laborers and
mechanics employed by contractors and subcontractors in
the construction of such property shall be paid wages
at rates not less than the prevailing rates for
construction, alteration, or repair of a similar
character in the locality as most recently determined
by the Secretary of Labor, in accordance with
subchapter IV of chapter 31 of title 40, United States
Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--In the case of any taxpayer
which fails to satisfy the requirement under
subparagraph (A) with respect to such qualified
alternative fuel vehicle refueling property, rules
similar to the rules of section 45(b)(8)(B) shall apply
for purposes of this paragraph.
``(3) Apprenticeship requirements.--The requirements
described in this subparagraph with respect to the construction
of any qualified alternative fuel vehicle refueling property
are as follows:
``(A) Labor hours.--
``(i) Percentage of total labor hours.--All
contractors and subcontractors engaged in the
performance of construction on any project
shall, subject to subparagraph (B), ensure that
not less than the applicable percentage of the
total labor hours of such work be performed by
qualified apprentices.
``(ii) Applicable percentage.--For purposes
of paragraph (1), the applicable percentage
shall be--
``(I) in the case of any applicable
project the construction of which
begins before January 1, 2023, 5
percent,
``(II) in the case of any
applicable project the construction of
which begins after December 31, 2022,
and before January 1, 2024, 10 percent,
and
``(III) in the case of any
applicable project the construction of
which begins after December 31, 2023,
15 percent.
``(B) Apprentice to journeyworker ratio.--The
requirement under subparagraph (A)(i) shall be subject
to any applicable requirements for apprentice-to-
journeyworker ratios of the Department of Labor or the
applicable State apprenticeship agency.
``(C) Participation.--Each contractor and
subcontractor who employs 4 or more individuals to
perform construction, alteration, or repair work on an
applicable project shall employ 1 or more qualified
apprentices to perform such work.
``(D) Exception.--
``(i) In general.--Notwithstanding any
other provision of this paragraph, this
paragraph shall not apply in the case of a
taxpayer who--
``(I) demonstrates a lack of
availability of qualified apprentices
in the geographic area of the
construction, alteration, or repair
work, and
``(II) makes a good faith effort to
comply with the requirements of this
paragraph.
``(ii) Good faith effort.--For purposes of
clause (i), a taxpayer shall be deemed to have
satisfied the requirements under such paragraph
with respect to an applicable project if such
taxpayer has requested qualified apprentices
from a registered apprenticeship program, as
defined in section 3131(e)(3)(B), and such
request has been denied, provided that such
denial is not the result of a refusal by the
contractors or subcontractors engaged in the
performance of construction, alteration, or
repair work on such applicable project to
comply with the established standards and
requirements of such apprenticeship program.
``(E) Definitions.--For purposes of this
paragraph--
``(i) Labor hours.--The term `labor hours'
has the meaning given such term in section
45(b)(9)(E)(i).
``(ii) Qualified apprentice.--The term
`qualified apprentice' has the meaning given
such term in section 45(b)(9)(E)(ii).
``(4) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary determines
necessary or appropriate to carry out the purposes of this
subsection.''.
(e) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2021.
SEC. 136406. REINSTATEMENT AND EXPANSION OF EMPLOYER-PROVIDED FRINGE
BENEFITS FOR BICYCLE COMMUTING.
(a) Repeal of Suspension of Exclusion for Qualified Bicycle
Commuting Benefits.--Section 132(f) is amended by striking paragraph
(8).
(b) Expansion of Bicycle Commuting Benefits.--Section 132(f)(5)(F)
is amended to read as follows:
``(F) Definitions related to bicycle commuting
benefits.--
``(i) Qualified bicycle commuting
benefit.--The term `qualified bicycle commuting
benefit' means, with respect to any calendar
year--
``(I) any employer reimbursement
during the 15-month period beginning
with the first day of such calendar
year for reasonable expenses incurred
by the employee during such calendar
year for the purchase (including
associated finance charges), lease,
rental (including a bikeshare),
improvement, repair, or storage of
qualified commuting property, or
``(II) the provision by the
employer to the employee during such
calendar year of the use (including a
bikeshare), improvement, repair, or
storage of qualified commuting
property,
if the employee regularly uses such qualified
commuting property for travel between the
employee's residence, place of employment, or a
mass transit facility that connects the
employee to their residence or place of
employment.
``(ii) Qualified commuting property.--The
term `qualified commuting property' means--
``(I) any bicycle (other than a
bicycle equipped with any motor),
``(II) any electric bicycle which
meets the requirements of section
36E(c)(5),
``(III) any 2- or 3-wheel scooter
(other than a scooter equipped with any
motor), and
``(IV) any 2- or 3-wheel scooter
propelled by an electric motor if such
motor does not provide assistance if
the speed of such scooter exceeds 20
miler per hour (or if the speed of such
scooter is not capable of exceeding 20
miles per hour) and the weight of such
scooter does not exceed 100 pounds.
``(iii) Bikeshare.--The term `bikeshare'
means a rental operation at which qualified
commuting property is made available to
customers to pick up and drop off for point-to-
point use within a defined geographic area.''.
(c) Limitation on Exclusion.--Section 132(f)(2)(C) is amended to
read as follows:
``(C) 30 percent of the dollar amount in effect
under subparagraph (B) per month in the case of any
qualified bicycle commuting benefit.''.
(d) No Constructive Receipt.--Section 132(f)(4) is amended by
striking ``(other than a qualified bicycle commuting reimbursement)''.
(e) Conforming Amendment.--Section 132(f)(1)(D) is amended by
striking ``reimbursement'' and inserting ``benefit''.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 136407. CREDIT FOR CERTAIN NEW ELECTRIC BICYCLES.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1,
as amended by the preceding provisions of this Act, is amended by
inserting after section 36D the following new section:
``SEC. 36E. ELECTRIC BICYCLES.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to 15 percent of the cost of each qualified electric bicycle
placed in service by the taxpayer during such taxable year.
``(b) Limitations.--
``(1) Limitation on cost per electric bicycle taken into
account.--The amount taken into account under subsection (a) as
the cost of any qualified electric bicycle shall not exceed
$5,000.
``(2) Bicycle limitation with respect to credit.--
``(A) Limitation on number of personal-use
bicycles.--In the case of any taxpayer for any taxable
year, the number of personal-use bicycles taken into
account under subsection (a) shall not exceed the
excess (if any) of--
``(i) 1 (2 in the case of a joint return),
reduced by
``(ii) the aggregate number of bicycles
taken into account by the taxpayer under
subsection (a) for the 2 preceding taxable
years.
``(B) Phaseout based on modified adjusted gross
income.--So much of the credit allowed under subsection
(a) to any taxpayer for any taxable year as would (but
for this subparagraph) be treated under subsection
(c)(2) as a credit allowable under subpart C shall be
reduced by $200 for each $1,000 (or fraction thereof)
by which the taxpayer's modified adjusted gross income
exceeds--
``(i) $150,000 in the case of a joint
return or a surviving spouse (as defined in
section 2(a)),
``(ii) $112,500 in the case of a head of
household (as defined in section 2(b)), and
``(iii) $75,000 in the case of a taxpayer
not described in clause (i) or (ii).
``(C) Modified adjusted gross income.--For purposes
of subparagraph (B), the term `modified adjusted gross
income' means adjusted gross income increased by any
amount excluded from gross income under section 911,
931, or 933.
``(D) Special rule for determination of modified
adjusted gross income.--The modified adjusted gross
income of the taxpayer that is taken into account for
purposes of this paragraph shall be the lesser of--
``(i) the modified adjusted gross income
for the taxable year in which the credit is
claimed, or
``(ii) the modified adjusted gross income
for the immediately preceding taxable year.
``(c) Qualified Electric Bicycle.--For purposes of this section,
the term `qualified electric bicycle' means a bicycle--
``(1) the original use of which commences with the
taxpayer,
``(2) which is acquired for use by the taxpayer and not for
resale,
``(3) which is made by a qualified manufacturer and is
labeled with the qualified vehicle identification number
assigned to such bicycle by such manufacturer,
``(4) with respect to which the aggregate amount paid for
such acquisition does not exceed $8,000, and
``(5) which is equipped with--
``(A) fully operable pedals,
``(B) a saddle or seat for the rider, and
``(C) an electric motor of less than 750 watts
which is designed to provided assistance in propelling
the bicycle and--
``(i) does not provide such assistance if
the bicycle is moving in excess of 20 miler per
hour, or
``(ii) if such motor only provides such
assistance when the rider is pedaling, does not
provide such assistance if the bicycle is
moving in excess of 28 miles per hour.
``(d) VIN Number Requirement.--
``(1) In general.--No credit shall be allowed under
subsection (a) with respect to any qualified electric bicycle
unless the taxpayer includes the qualified vehicle
identification number of such bicycle on the return of tax for
the taxable year.
``(2) Qualified vehicle identification number.--For
purposes of this section, the term `qualified vehicle
identification number' means, with respect to any bicycle, the
vehicle identification number assigned to such bicycle by a
qualified manufacturer pursuant to the methodology referred to
in paragraph (3).
``(3) Qualified manufacturer.--For purposes of this
section, the term `qualified manufacturer' means any
manufacturer of qualified electric bicycles which enters into
an agreement with the Secretary which provides that such
manufacturer will--
``(A) assign a vehicle identification number to
each qualified electric bicycle produced by such
manufacturer utilizing a methodology that will ensure
that such number (including any alphanumeric) is unique
to such bicycle (by utilizing numbers or letters which
are unique to such manufacturer or by such other method
as the Secretary may provide),
``(B) label such bicycle with such number in such
manner as the Secretary may provide, and
``(C) make periodic written reports to the
Secretary (at such times and in such manner as the
Secretary may provide) of the vehicle identification
numbers so assigned and including such information as
the Secretary may require with respect to the qualified
electric bicycle to which such number was so assigned.
``(e) Special Rules.--
``(1) Basis reduction.--For purposes of this subtitle, the
basis of any property for which a credit is allowable under
subsection (a) shall be reduced by the amount of such credit so
allowed (determined without regard to subsection (c)).
``(2) No double benefit.--The amount of any deduction or
other credit allowable under this chapter for a qualified
electric bicycle for which a credit is allowable under
subsection (a) shall be reduced by the amount of credit allowed
under such subsection for such vehicle (determined without
regard to subsection (c)).
``(3) Property used outside united states not qualified.--
No credit shall be allowable under subsection (a) with respect
to any property referred to in section 50(b)(1).
``(4) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which ceases
to be property eligible for such credit.
``(5) Election not to take credit.--No credit shall be
allowed under subsection (a) for any bicycle if the taxpayer
elects to not have this section apply to such bicycle.
``(f) Treatment of Certain Possessions.--
``(1) Payments to possessions with mirror code tax
systems.--The Secretary shall pay to each possession of the
United States which has a mirror code tax system amounts equal
to the loss (if any) to that possession by reason of the
application of the provisions of this section (determined
without regard to this subsection). Such amounts shall be
determined by the Secretary based on information provided by
the government of the respective possession.
``(2) Payments to other possessions.--The Secretary shall
pay to each possession of the United States which does not have
a mirror code tax system amounts estimated by the Secretary as
being equal to the aggregate benefits (if any) that would have
been provided to residents of such possession by reason of the
provisions of this section if a mirror code tax system had been
in effect in such possession. The preceding sentence shall not
apply unless the respective possession has a plan which has
been approved by the Secretary under which such possession will
promptly distribute such payments to its residents.
``(3) Mirror code tax system; treatment of payments.--Rules
similar to the rules of paragraphs (4) and (5) of section 21(h)
shall apply for purposes of this section.
``(g) Termination.--This section shall not apply to bicycles placed
in service after December 31, 2031.''.
(b) Conforming Amendments.--
(1) Section 38(b) is amended by striking ``plus'' at the
end of paragraph (39), by striking the period at the end of
paragraph (40) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(41) the portion of the electric bicycles credit to which
section 36E(c)(1) applies.''.
(2) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (37), by striking the period at the end of
paragraph (38) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(39) to the extent provided in section 36E(f)(1).''.
(3) Section 6211(b)(4)(A) of such Code is amended by
inserting ``36E by reason of subsection (c)(2) thereof,''
before ``32,''.
(4) Section 6213(g)(2), as amended by the preceding
provisions of this Act, is amended--
(A) in subparagraph (U), by striking ``and'' at the
end,
(B) in subparagraph (V), by striking the period at
the end and inserting ``, and'', and
(C) by adding at the end the following:
``(W) an omission of a correct vehicle
identification number required under section 36E(e)
(relating to electric bicycles credit) to be included
on a return.''.
(5) Section 6501(m) is amended by inserting ``36E(f)(4),''
after ``35(g)(11),''.
(6) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``36E,'' after ``36B,''.
(c) Clerical Amendment.--The table of sections for subpart B of
part IV of subchapter A of chapter 1 is amended by adding at the end
the following new item:
``Sec. 36E. Electric bicycles.''.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
PART 5--INVESTMENT IN THE GREEN WORKFORCE
SEC. 136501. EXTENSION OF THE ADVANCED ENERGY PROJECT CREDIT.
(a) Extension of Credit.--Section 48C is amended by redesignating
subsection (e) as subsection (f) and by inserting after subsection (d)
the following new subsection:
``(e) Additional Allocations.--
``(1) In general.--Not later than 180 days after the date
of enactment of this subsection, the Secretary, after
consultation with the Secretary of Energy, shall establish a
program to consider and award certifications for qualified
investments eligible for credits under this section to
qualifying advanced energy project sponsors.
``(2) Annual limitation.--
``(A) In general.--The amount of credits that may
be allocated under this subsection during any calendar
year shall not exceed the annual credit limitation with
respect to such year.
``(B) Annual credit limitation.--
``(i) In general.--For purposes of this
subsection, the term `annual credit limitation'
means $2,500,000,000 for each of calendar years
2022 through 2031, and zero thereafter.
``(ii) Amount set aside for automotive
communities.--
``(I) In general.--For purposes of
clause (i), $400,000,000 of the annual
credit limitation for each of calendar
years 2022 through 2031 shall be
allocated to qualified investments
located within automotive communities.
``(II) Automotive communities.--For
purposes of this clause, the term
`automotive communities' means a census
tract and any directly adjoining census
tract, including a no-population census
tract, that has experienced major job
losses in the automotive manufacturing
sector since January 1, 1994, as
determined by the Secretary after
consultation with the Secretary of
Energy and Secretary of Labor.
``(C) Carryover of unused limitation.--If the
annual credit limitation for any calendar year exceeds
the aggregate amount designated for such year under
this subsection, such limitation for the succeeding
calendar year shall be increased by the amount of such
excess. No amount may be carried under the preceding
sentence to any calendar year after 2036.
``(3) Certifications.--
``(A) Application requirement.--Each applicant for
certification under this subsection shall submit an
application at such time and containing such
information as the Secretary may require.
``(B) Time to meet criteria for certification.--
Each applicant for certification shall have 2 years
from the date of acceptance by the Secretary of the
application during which to provide to the Secretary
evidence that the requirements of the certification
have been met.
``(C) Period of issuance.--An applicant which
receives a certification shall have 2 years from the
date of issuance of the certification in order to place
the project in service and to notify the Secretary that
such project has been so placed in service, and if such
project is not placed in service (and the Secretary so
notified) by that time period, then the certification
shall no longer be valid. If any certification is
revoked under this subparagraph, the amount of the
annual credit limitation under paragraph (2) for the
calendar year in which such certification is revoked
shall be increased by the amount of the credit with
respect to such revoked certification.
``(4) Selection criteria.--Selection criteria similar to
those in subsection (d)(3) shall apply, except that in
determining designations under this subsection, the Secretary,
after consultation with the Secretary of Energy, shall--
``(A) in addition to the factors described in
subsection (d)(3)(B), take into consideration which
projects--
``(i) will provide the greatest net impact
in avoiding or reducing anthropogenic emissions
of greenhouse gases, as determined by the
Secretary after consultation with the
Administrator of the Environmental Protection
Agency,
``(ii) will provide the greatest domestic
job creation (both direct and indirect) during
the credit period,
``(iii) will provide the greatest job
creation within the vicinity of the project,
particularly with respect to--
``(I) low-income communities (as
described in section 45D(e)), and
``(II) dislocated workers who were
previously employed in manufacturing,
coal power plants, or coal mining, and
``(iv) will provide the greatest job
creation in areas with a population that is at
risk of experiencing higher or more adverse
human health or environmental effects and a
significant portion of such population is
comprised of communities of color, low-income
communities, Tribal and Indigenous communities,
or individuals formerly employed in the fossil
fuel industry, and
``(B) give the highest priority to projects which--
``(i) manufacture (other than primarily
assembly of components) property described in a
subclause of subsection (c)(1)(A)(i) (or
components thereof), and
``(ii) have the greatest potential for
commercial deployment of new applications.
``(5) Disclosure of allocations.--The Secretary shall, upon
allocating a credit under this subsection, publicly disclose
the identity of the applicant, the amount of the credit with
respect to such applicant, and the project location for which
such credit was allocated.
``(6) Credit conditioned upon wage and apprenticeship
requirements.--No credit shall be allocated for a project under
this subsection unless the project meets the prevailing wage
requirements of paragraph (7) and the apprenticeship
requirements of paragraph (8).
``(7) Prevailing wage requirements.--
``(A) In general.--The requirements described in
this paragraph with respect to a project are that the
taxpayer shall ensure that any laborers and mechanics
employed by contractors and subcontractors in the re-
equipping, expansion, or establishment of an industrial
or manufacturing facility shall be paid wages at rates
not less than the prevailing rates for construction,
alteration, or repair of a similar character in the
locality as most recently determined by the Secretary
of Labor, in accordance with subchapter IV of chapter
31 of title 40, United States Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--
``(i) In general.--In the case of any
taxpayer which fails to satisfy the requirement
under subparagraph (A) with respect to any
project--
``(I) rules similar to the rules of
section 45(b)(8)(B) shall apply for
purposes of this paragraph, and
``(II) if the failure to satisfy
the requirement under subparagraph (A)
is not corrected pursuant to the rules
described in subclause (I), the
certification with respect to the re-
equipping, expansion, or establishment
of an industrial or manufacturing
facility shall no longer be valid.
``(8) Apprenticeship requirements.--The requirements
described in this subparagraph with respect to a project are as
follows:
``(A) Labor hours.--
``(i) Percentage of total labor hours.--All
contractors and subcontractors engaged in the
performance of construction, alteration, or
repair work on any project shall, subject to
subparagraph (B), ensure that not less than the
applicable percentage of the total labor hours
of such work be performed by qualified
apprentices.
``(ii) Applicable percentage.--For purposes
of paragraph (1), the applicable percentage
shall be--
``(I) in the case of any applicable
project the construction of which
begins before January 1, 2023, 5
percent,
``(II) in the case of any
applicable project the construction of
which begins after December 31, 2022,
and before January 1, 2024, 10 percent,
and
``(III) in the case of any
applicable project the construction of
which begins after December 31, 2023,
15 percent.
``(B) Apprentice to journeyworker ratio.--The
requirement under subparagraph (A)(i) shall be subject
to any applicable requirements for apprentice-to-
journeyworker ratios of the Department of Labor or the
applicable State apprenticeship agency.
``(C) Participation.--Each contractor and
subcontractor who employs 4 or more individuals to
perform construction, alteration, or repair work on an
applicable project shall employ 1 or more qualified
apprentices to perform such work.
``(D) Exception.--
``(i) In general.--Notwithstanding any
other provision of this paragraph, this
paragraph shall not apply in the case of a
taxpayer who--
``(I) demonstrates a lack of
availability of qualified apprentices
in the geographic area of the
construction, alteration, or repair
work, and
``(II) makes a good faith effort to
comply with the requirements of this
paragraph.
``(ii) Good faith effort.--For purposes of
clause (i), a taxpayer shall be deemed to have
satisfied the requirements under such paragraph
with respect to an applicable project if such
taxpayer has requested qualified apprentices
from a registered apprenticeship program, as
defined in section 3131(e)(3)(B), and such
request has been denied, provided that such
denial is not the result of a refusal by the
contractors or subcontractors engaged in the
performance of construction, alteration, or
repair work on such applicable project to
comply with the established standards and
requirements of such apprenticeship program.
``(E) Definitions.--For purposes of this
paragraph--
``(i) Labor hours.--The term `labor hours'
has the meaning given such term in section
45(b)(9)(E)(i).
``(ii) Qualified apprentice.--The term
`qualified apprentice' has the meaning given
such term in section 45(b)(9)(E)(ii).''.
(b) Modification of Qualifying Advanced Energy Projects.--
(1) Inclusion of water as a renewable resource.--Section
48C(c)(1)(A)(i)(I) is amended by inserting ``water,'' after
``sun,''.
(2) Energy storage systems.--Section 48C(c)(1)(A)(i)(II) is
amended by striking ``an energy storage system for use with
electric or hybrid-electric motor vehicles'' and inserting
``energy storage systems and components''.
(3) Modification of qualifying electric grid property.--
Section 48C(c)(1)(A)(i)(III) is amended to read as follows:
``(III) electric grid modernization
equipment or components,''.
(4) Use of captured carbon.--Section 48C(c)(1)(A)(i)(IV) is
amended by striking ``sequester'' and insert ``use or
sequester''.
(5) Electric and fuel cell vehicles.--Section
48C(c)(1)(A)(i)(VI) is amended--
(A) by striking ``new qualified plug-in electric
drive motor vehicles (as defined by section 30D)'' and
inserting ``vehicles described in section 36C, 45Y, and
36E'', and
(B) and striking ``and power control units'' and
inserting ``power control units, and equipment used for
charging or refueling''.
(6) Property for production of hydrogen.--Section
48C(c)(1)(A)(i) is amended by striking ``or'' at the end of
subclause (VI), by redesignating subclause (VII) as subclause
(VIII), an by inserting after subclause (VI) the following new
subclause:
``(VII) property designed to be
used to produce qualified clean
hydrogen (as defined in section 45X),
or''.
(7) Recycling of advanced energy property.--Section
48C(c)(1) is amended by adding at the end the following new
subparagraph:
``(C) Special rule for certain recycling
facilities.--A facility which recycles batteries or
similar energy storage property described in
subparagraph (A)(i) shall be treated as part of a
manufacturing facility described in such
subparagraph.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 136502. LABOR COSTS OF INSTALLING MECHANICAL INSULATION PROPERTY.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1,
as amended by the preceding provisions of this Act, is further amended
by adding at the end the following new section:
``SEC. 45Z. LABOR COSTS OF INSTALLING MECHANICAL INSULATION PROPERTY.
``(a) In General.--For purposes of section 38, the mechanical
insulation labor costs credit determined under this section for any
taxable year is an amount equal to 10 percent of the mechanical
insulation labor costs paid or incurred by the taxpayer during such
taxable year.
``(b) Mechanical Insulation Labor Costs.--For purposes of this
section--
``(1) In general.--The term `mechanical insulation labor
costs' means the labor cost of installing mechanical insulation
property with respect to a mechanical system referred to in
paragraph (2)(A) which was originally placed in service not
less than 1 year before the date on which such mechanical
insulation property is installed.
``(2) Mechanical insulation property.--The term `mechanical
insulation property' means insulation materials, and facings
and accessory products installed in connection to such
insulation materials--
``(A) placed in service in connection with a
mechanical system which--
``(i) is located in the United States,
``(ii) is of a character subject to an
allowance for depreciation, and
``(iii) meets the requirements of section
434.403 of title 10, Code of Federal
Regulations (as in effect on the date of
enactment of this section), and
``(B) which result in a reduction in energy loss
from the mechanical system which is greater than the
expected reduction from the installation of insulation
materials which meet the minimum requirements of
Reference Standard 90.1 (as defined in section
179D(c)(2)).
``(c) Termination.--This section shall not apply to mechanical
insulation labor costs paid or incurred after December 31, 2031.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b), as amended by the preceding provisions of this Act, is further
amended by striking ``plus'' at the end of paragraph (40), by striking
the period at the end of paragraph (41) and inserting ``, plus'', and
by adding at the end the following new paragraph:
``(42) the mechanical insulation labor costs credit
determined under section 45Z(a).''.
(c) Conforming Amendments.--
(1) Section 280C is amended by adding at the end the
following new subsection:
``(i) Mechanical Insulation Labor Costs Credit.--
``(1) In general.--No deduction shall be allowed for that
portion of the mechanical insulation labor costs (as defined in
section 45Z(b)) otherwise allowable as deduction for the
taxable year which is equal to the amount of the credit
determined for such taxable year under section 45Z(a).
``(2) Similar rule where taxpayer capitalizes rather than
deducts expenses.--If--
``(A) the amount of the credit determined for the
taxable year under section 45Z(a), exceeds
``(B) the amount of allowable as a deduction for
such taxable year for mechanical insulation labor costs
(determined without regard to paragraph (1)),
the amount chargeable to capital account for the taxable year
for such costs shall be reduced by the amount of such
excess.''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by the preceding
provisions of this Act, is further amended by adding at the end
the following new item:
``Sec. 45Z. Labor costs of installing mechanical insulation
property.''.
(d) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after December 31, 2021, in taxable
years ending after such date.
PART 6--ENVIRONMENTAL JUSTICE
SEC. 136601. QUALIFIED ENVIRONMENTAL JUSTICE PROGRAM CREDIT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1,
as amended by the preceding provisions of this Act, is amended by
inserting after section 36E the following new section:
``SEC. 36F. QUALIFIED ENVIRONMENTAL JUSTICE PROGRAMS.
``(a) Allowance of Credit.--In the case of an eligible educational
institution, there shall be allowed as a credit against the tax imposed
by this subtitle for any taxable year an amount equal to the applicable
percentage of the amounts paid or incurred by such taxpayer during such
taxable year which are necessary for a qualified environmental justice
program.
``(b) Qualified Environmental Justice Program.--For purposes of
this section--
``(1) In general.--The term `qualified environmental
justice program' means a program conducted by one or more
eligible educational institutions that is designed to address,
or improve data about, qualified environmental stressors for
the primary purpose of improving, or facilitating the
improvement of, health and economic outcomes of individuals
residing in low-income areas or areas that experience, or are
at risk of experiencing, multiple exposures to qualified
environmental stressors.
``(2) Qualified environmental stressor.--The term
`qualified environmental stressor' means, with respect to an
area, a contamination of the air, water, soil, or food with
respect to such area or a change relative to historical norms
of the weather conditions of such area, including--
``(A) toxic pollutants (such as lead, pesticides,
or fine particulate matter) in air, soil, food, or
water,
``(B) high rates of asthma prevalence and
incidence, and
``(C) such other adverse human health or
environmental effects as are identified by the
Secretary.
``(c) Eligible Educational Institution.--For purposes of this
section, the term `eligible educational institution' means an
institution of higher education (as such term is defined in section 101
or 102(c) of the Higher Education Act of 1965) that is eligible to
participate in a program under title IV of such Act.
``(d) Applicable Percentage.--For purposes of this section, the
term `applicable percentage' means--
``(1) in the case of a program involving material
participation of faculty and students of an institution
described in section 371(a) of the Higher Education Act of
1965, 30 percent, and
``(2) in all other cases, 20 percent.
``(e) Credit Allocation.--
``(1) Allocation.--
``(A) In general.--The Secretary shall allocate
credit dollar amounts under this section to eligible
educational institutions, for qualified environmental
justice programs, that--
``(i) submit applications at such time and
in such manner as the Secretary may provide,
and
``(ii) are selected by the Secretary under
subparagraph (B).
``(B) Selection criteria.--The Secretary, after
consultation with the Secretary of Energy, the
Secretary of Education, the Secretary of Health and
Human Services, and the Administrator of the
Environmental Protection Agency, shall select
applications on the basis of the following criteria:
``(i) The extent of participation of
faculty and students of an institution
described in section 371(a) of the Higher
Education Act of 1965.
``(ii) The extent of the expected effect on
the health or economic outcomes of individuals
residing in areas within the United States that
are low-income areas or areas that experience,
or are at risk of experiencing, multiple
exposures to qualified environmental stressors.
``(iii) The creation or significant
expansion of qualified environmental justice
programs.
``(2) Limitations.--
``(A) In general.--The amount of the credit
determined under this section for any taxable year to
any eligible educational institution for any qualified
environmental justice program shall not exceed the
excess of--
``(i) the credit dollar amount allocated to
such institution for such program under this
subsection, over
``(ii) the credits previously claimed by
such institution for such program under this
section.
``(B) Five-year limitation.--No amounts paid or
incurred after the 5-year period beginning on the date
a credit dollar amount is allocated to an eligible
educational institution for a qualified environmental
justice program shall be taken into account under
subsection (a) with respect to such institution for
such program.
``(C) Allocation limitation.--The total amount of
credits that may be allocated under the program shall
not exceed--
``(i) $1,000,000,000 for each of taxable
years 2022 through 2031, and
``(ii) $0 for each subsequent year.
``(D) Carryover of unused limitation.--If the
annual credit limitation for any calendar year exceeds
the aggregate amount designated for such year under
this subsection, such limitation for the succeeding
calendar year shall be increased by the amount of such
excess. No amount may be carried under the preceding
sentence to any calendar year after 2036.
``(f) Requirements.--
``(1) In general.--An eligible educational institution that
has been allocated credit dollar amounts under this section for
a qualified environmental justice project for a taxable year
shall--
``(A) make publicly available the application
submitted to the Secretary under subsection (e) with
respect to such project, and
``(B) submit an annual report to the Secretary that
describes the amounts paid or incurred for, and
expected impact of, such project.
``(2) Failure to comply.--In the case of an eligible
educations institution that has failed to comply with the
requirements of this subsection, the credit dollar amount
allocated to such institution under this section is deemed to
be $0.
``(g) Public Disclosure.--The Secretary, upon making an allocation
of credit dollar amounts under this section, shall publicly disclose--
``(1) the identity of the eligible educational institution
receiving the allocation, and
``(2) the amount of such allocation.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A), as amended by the preceding
provisions of this Act, is amended by inserting ``36F,'' after
``36D,''.
(2) Paragraph (2) of section 1324(b) of title 31, United
States Code, as amended by the preceding provisions of this
Act, is amended by inserting ``36F,'' after ``36D,''.
(c) Clerical Amendment.--The table of sections for subpart C of
part IV of subchapter A of chapter 1, as amended by the preceding
provisions of this Act, is amended by inserting after the item relating
to section 36E the following new item:
``Sec. 36F. Qualified environmental justice programs.''.
(d) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
PART 7--SUPERFUND
SEC. 136701. REINSTATEMENT OF SUPERFUND.
(a) Hazardous Substance Superfund Financing Rate.--
(1) Extension.--Section 4611(e) is amended to read as
follows:
``(e) Application of Hazardous Substance Superfund Financing
Rate.--The Hazardous Substance Superfund financing rate under this
section shall apply after December 31, 2021.''.
(2) Adjustment for inflation.--
(A) Section 4611(c)(2)(A) is amended by striking
``9.7 cents'' and inserting ``16.4 cents''.
(B) Section 4611(c) is amended by adding at the end
the following:
``(3) Adjustment for inflation.--
``(A) In general.--In the case of a year beginning
after 2022, the amount in paragraph (2)(A) shall be
increased by an amount equal to--
``(i) such amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year, determined by substituting
`calendar year 2021' for `calendar year 2016'
in subparagraph (A)(ii) thereof.
``(B) Rounding.--If any amount as adjusted under
subparagraph (A) is not a multiple of $0.01, such
amount shall be rounded to the next lowest multiple of
$0.01.''.
(b) Authority for Advances.--Section 9507(d)(3)(B) is amended by
striking ``December 31, 1995'' and inserting ``December 31, 2031''.
(c) Effective Date.--The amendments made by this section shall take
effect on January 1, 2022.
PART 8--APPROPRIATIONS
SEC. 136801. APPROPRIATIONS.
Immediately upon the enactment of this Act, in addition to amounts
otherwise available, there are appropriated for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated, $3,831,000,000
to remain available until September 30, 2031, for necessary expenses
for the Internal Revenue Service to carry out this subtitle (and the
amendments made by this subtitle), which shall supplement and not
supplant any other appropriations that may be available for this
purpose.
Subtitle H--Social Safety Net
SEC. 137001. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this subtitle
an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
PART 1--CHILD TAX CREDIT
SEC. 137101. MODIFICATIONS APPLICABLE BEGINNING IN 2021.
(a) Safe Harbor Exception for Fraud and Intentional Disregard of
Rules and Regulations.--Section 24(j)(2)(B) is amended--
(1) by striking ``qualified'' each place it appears in
clause (iv)(II) and inserting ``qualifying'', and
(2) by adding at the end the following new clause:
``(v) Exception for fraud and intentional
disregard of rules and regulations.--
``(I) In general.--For purposes of
determining the safe harbor amount
under clause (iv) with respect to any
taxpayer, an individual shall not be
treated as taken into account in
determining the annual advance amount
of such taxpayer if the Secretary
determines that such individual was so
taken into account due to fraud by the
taxpayer or intentional disregard of
rules and regulations by the taxpayer.
``(II) Arrangements to take
individual into account more than
once.--For purposes of subclause (I), a
taxpayer shall not fail to be treated
as intentionally disregarding rules and
regulations with respect to any
individual taken into account in
determining the annual advance amount
of such taxpayer if such taxpayer
entered into a plan or other
arrangement with, or expected, another
taxpayer to take such individual into
account in determining the credit
allowed under this section for the
taxable year.''.
(b) Treatment of Joint Returns.--Section 24(j) is amended by adding
at the end the following new paragraph:
``(3) Joint returns.--Except as otherwise provided by the
Secretary, in the case of an advance payment made under section
7527A with respect to a joint return, half of such payment
shall be treated as having been made to each individual filing
such return.''.
(c) Annual Advance Amount.--Section 7527A(b) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by inserting ``or based on
any other information known to the Secretary'' after
``reference taxable year'',
(B) in subparagraph (C), by inserting ``unless
determined by the Secretary based on any information
known to the Secretary,'' before ``the only children'',
and
(C) in subparagraph (D), by inserting ``unless
determined by the Secretary based on any information
known to the Secretary,'' before ``the ages of'', and
(2) in paragraph (3)(A)(ii), by striking `` provided by the
taxpayer'' and inserting ``provided, or known,''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning, and payments made, after December 31,
2020.
SEC. 137102. EXTENSION AND MODIFICATION OF CHILD TAX CREDIT AND ADVANCE
PAYMENT FOR 2022.
(a) Extensions.--
(1) Extension of child tax credit.--Section 24(i) is
amended--
(A) by striking ``January 1, 2022'' in the matter
preceding paragraph (1) and inserting ``January 1,
2023'', and
(B) by inserting ``and 2022'' after ``2021'' in the
heading thereof.
(2) Extension of provisions related to possessions of the
united states.--
(A) Section 24(k)(2)(B) is amended--
(i) by striking ``December 31, 2021'' in
the matter preceding clause (i) and inserting
``December 31, 2022'', and
(ii) by striking ``After 2021'' in the
heading thereof and inserting ``After 2022''.
(B) Section 24(k)(3)(C)(ii) is amended--
(i) in subclause (I), by inserting ``or
2022'' after ``2021'', and
(ii) in subclause (II), by striking
``December 31, 2021'' and inserting ``December
31, 2022''.
(C) The heading of section 24(k)(2)(A) is amended
by inserting ``and 2022'' after ``2021''.
(3) Extension of advance payment.--Section 7527A is
amended--
(A) in subsection (b)(1), by striking ``50 percent
of'',
(B) in clauses (i) and (ii) of subsection
(e)(4)(C), by inserting ``or 2022'' after ``in 2021'',
and
(C) in subsection (f), by striking ``December 31,
2021'' and inserting ``December 31, 2022''.
(b) Repeal of Social Security Number Requirement.--Section 24(h) is
amended by striking paragraph (7).
(c) Application of Income Phaseout on Basis of Income for Preceding
Taxable Year.--Section 24(i) is amended by adding at the end the
following new paragraph:
``(5) Application of income phaseout on basis of income for
prior taxable year.--If the taxpayer's modified adjusted gross
income (as defined in subsection (b)) for the taxable year for
which the credit allowed under this section is determined is
greater than such taxpayer's modified adjusted gross income (as
so defined) for the preceding taxable year, paragraph (4) and
subsection (b)(1) shall both be applied with respect to such
taxpayer's modified adjusted gross income (as so defined) for
the preceding taxable year.''.
(d) Inflation Adjustment.--Section 24(i), as amended by subsection
(c), is amended by adding at the end the following new paragraph:
``(6) Inflation adjustments.--
``(A) In general.--In the case of any taxable year
beginning after December 31, 2021, the $500 amount in
subsection (h)(4)(A), the $3,000 and $3,600 amounts in
paragraph (3) and subsection (j)(2)(B)(iv), and the
dollar amounts in paragraph (4)(B), shall each be
increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the percentage (if any) by which--
``(I) the CPI (as defined in
section 1(f)(4)) for the calendar year
preceding the calendar year in which
such taxable year begins, exceeds
``(II) the CPI (as so defined) for
calendar year 2020.
``(B) Rounding.--
``(i) $500 amount.--In the case of the $500
amount in subsection (h)(4)(A), any increase
under subparagraph (A) which is not a multiple
of $10 shall be rounded to the nearest multiple
of $10.
``(ii) $3,000 and $3,600 amounts.--In the
case of the $3,000 and $3,600 amounts in
paragraph (3) and subsection (j)(2)(B)(iv), any
increase under subparagraph (A) which is not a
multiple of $100 shall be rounded to the
nearest multiple of $100.
``(iii) Applicable threshold amounts.--In
the case of the dollar amounts in paragraph
(4)(B), any increase under subparagraph (A)
which is not a multiple of $5,000 shall be
rounded to the nearest multiple of $5,000.''.
(e) Modification of Recapture Safe Harbor for 2022.--Section
24(j)(2)(B)(iv), as amended by the preceding provisions of this Act, is
amended to read as follows:
``(iv) Safe harbor amount.--For purposes of
this subparagraph, the term `safe harbor
amount' means, with respect to any taxpayer for
any taxable year, the aggregate of $3,000
($3,600 in the case of a qualifying child who
has not attained age 6 as of the close of the
calendar year in which the taxable year of the
taxpayer begins) with respect to each
qualifying child who is--
``(I) taken into account in
determining the annual advance amount
with respect to such taxpayer under
section 7527A with respect to months
beginning in such taxable year, and
``(II) not taken into account in
determining the credit allowed to such
taxpayer under this section for such
taxable year.''.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning, and payments made, after December 31,
2021.
SEC. 137103. ESTABLISHMENT OF MONTHLY CHILD TAX CREDIT WITH ADVANCE
PAYMENT THROUGH 2025.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
is amended by inserting after section 24 the following new sections:
``SEC. 24A. MONTHLY CHILD TAX CREDIT.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year the sum of
the monthly specified child allowances determined with respect to the
taxpayer under subsection (b) for each calendar month during such
taxable year.
``(b) Monthly Specified Child Allowance.--
``(1) In general.--For purposes of this section, the term
`monthly specified child allowance' means, with respect to any
taxpayer for any calendar month, the sum of--
``(A) $300 with respect to each specified child of
such taxpayer who will not, as of the close of the
taxable year which includes such month, have attained
age 6, plus
``(B) $250 with respect to each specified child of
such taxpayer who will, as of the close of the taxable
year which includes such month, have attained age 6.
``(2) Limitations based on modified adjusted gross
income.--
``(A) Initial reduction.--The monthly specified
child allowance otherwise determined under paragraph
(1) with respect to any taxpayer for any calendar month
shall be reduced (but not below zero) by \1/12\ of 5
percent of the excess (if any) of the taxpayer's
modified adjusted gross income for the applicable
taxable year over the initial threshold amount in
effect for such applicable taxable year.
``(B) Limitation on initial reduction.--The amount
of the reduction under subparagraph (A) shall not
exceed the lesser of--
``(i) the excess (if any) of--
``(I) the monthly specified child
allowance with respect to the taxpayer
for the calendar month (determined
without regard to this paragraph), over
``(II) the amount which would be
determined under subclause (I) if the
dollar amounts in effect under
subparagraphs (A) and (B) of paragraph
(1) were each equal to $166.67, or
``(ii) \1/12\ of 5 percent of the excess of
the secondary threshold amount over the initial
threshold amount.
``(C) Secondary reduction.--The monthly specified
child allowance otherwise determined under paragraph
(1) with respect to any taxpayer for any calendar month
(determined after the application of subparagraphs (A)
and (B)) shall be reduced (but not below zero) by \1/
12\ of 5 percent of the excess (if any) of the
taxpayer's modified adjusted gross income for the
applicable taxable year over the secondary threshold
amount.
``(D) Definitions related to limitations based on
modified adjusted gross income.--For purposes of this
paragraph--
``(i) Initial threshold amount.--The term
`initial threshold amount' means--
``(I) $150,000, in the case of a
joint return or surviving spouse (as
defined in section 2(a)),
``(II) \1/2\ the dollar amount in
effect under subclause (I), in the case
of a married individual filing a
separate return, and
``(III) $112,500, in any other
case.
``(iii) Secondary threshold amount.--The
term `secondary threshold amount' means--
``(I) $400,000, in the case of a
joint return or surviving spouse (as
defined in section 2(a)),
``(II) $300,000, in the case of a
head of household (as defined in
section 2(b)), and
``(III) $200,000, in any other
case.
``(iv) Applicable taxable year.--The term
`applicable taxable year' means, with respect
to any taxpayer, the relevant taxable year with
respect to which the taxpayer has the lowest
modified adjusted gross income. For purposes of
the preceding sentence, the term `relevant
taxable year' means the taxable year for which
the credit allowed under this section is
determined and each of the 2 immediately
preceding taxable years.
``(v) Modified adjusted gross income.--The
term `modified adjusted gross income' means
adjusted gross income increased by any amount
excluded from gross income under section 911,
931, or 933.
``(c) Specified Child.--For purposes of this section--
``(1) In general.--The term `specified child' means, with
respect to any taxpayer for any calendar month, an individual--
``(A) who has the same principal place of abode as
the taxpayer for more than one-half of such month,
``(B) who is younger than the taxpayer and will
not, as of the close of the calendar year which
includes such month, have attained age 18,
``(C) who receives care from the taxpayer during
such month that is not compensated,
``(D) who is not the spouse of the taxpayer at any
time during such month,
``(E) who is not a taxpayer with respect to whom
any individual is a specified child for such month, and
``(F) who either--
``(i) is a citizen, national, or resident
of the United States, or
``(ii) if the taxpayer is a citizen or
national of the United States, such individual
is described in section 152(f)(1)(B) with
respect to such taxpayer.
``(2) Care from the taxpayer.--
``(A) In general.--Except as otherwise provided by
the Secretary, whether any individual receives care
from the taxpayer (within the meaning of paragraph
(1)(C)) shall be determined on the basis of facts and
circumstances with respect to the following factors:
``(i) The supervision provided by the
taxpayer regarding the daily activities and
needs of the individual.
``(ii) The maintenance by the taxpayer of a
secure environment at which the individual
resides.
``(iii) The provision or arrangement by the
taxpayer of, and transportation by the taxpayer
to, medical care at regular intervals and as
required for the individual.
``(iv) The involvement by the taxpayer in,
and financial and other support by the taxpayer
for, educational or similar activities of the
individual.
``(v) Any other factor that the Secretary
determines to be appropriate to determine
whether the individual receives care from the
taxpayer.
``(B) Determination of whether care is
compensated.--For purposes of determining if care is
compensated within the meaning of paragraph (1)(C),
compensation from the Federal Government, a State or
local government, a Tribal government, or any
possession of the United States shall not be taken into
account.
``(3) Application of tie-breaker rules.--
``(A) In general.--Except as provided in
subparagraph (D), if any individual would (but for this
paragraph) be a specified child of 2 or more taxpayers
for any month, such individual shall be treated as the
specified child only of the taxpayer who is--
``(i) the parent of the individual (or, if
such individual would (but for this paragraph)
be a specified child of 2 or more parents of
the individual for such month, the parent of
the individual determined under subparagraph
(B)),
``(ii) if the individual is not a specified
child of any parent of the individual
(determined without regard to this paragraph),
the specified relative of the individual with
the highest adjusted gross income for the
taxable year which includes such month, or
``(iii) if the individual is neither a
specified child of any parent of the individual
nor a specified child of any specified relative
of the individual (in both cases determined
without regard to this paragraph), the taxpayer
with the highest adjusted gross income for the
taxable year which includes such month.
``(B) Tie-breaker among parents.--If any individual
would (but for this paragraph) be the specified child
of 2 or more parents of the individual for any month,
such child shall be treated only as the specified child
of--
``(i) the parent with whom the child
resided for the longest period of time during
such month, or
``(ii) if the child resides with both
parents for the same amount of time during such
month, the parent with the highest adjusted
gross income for the taxable year which
includes such month.
``(C) Specified relative.--For purposes of this
paragraph, the term `specified relative' means an
individual who is--
``(i) an ancestor of a parent of the
specified child,
``(ii) a brother or sister of a parent of
the specified child, or
``(iii) a brother, sister, stepbrother, or
stepsister of the specified child.
``(D) Certain parents or specified relatives not
taken into account.--This paragraph shall be applied
without regard to any parent or specified relative of
an individual for any month if--
``(i) such parent or specified relative
elects to have such individual not be treated
as a specified child of such parent or
specified relative for such month,
``(ii) in the case of a parent of such
individual, the adjusted gross income of the
taxpayer (with respect to whom such individual
would be treated as a specified child after
application of this subparagraph) for the
taxable year which includes such month is
higher than the highest adjusted gross income
of any parent of the individual for any taxable
year which includes such month (determined
without regard to any parent with respect to
whom such individual is not a specified child,
determined without regard to subparagraphs (A)
and (B) and after application of this
subparagraph), and
``(iii) in the case of a specified relative
of such individual, the adjusted gross income
of the taxpayer (with respect to whom such
individual would be treated as a specified
child after application of this subparagraph)
for the taxable year which includes such month
is higher than the highest adjusted gross
income of any parent and any specified relative
of the individual for any taxable year which
includes such month (determined without regard
to any parent and any specified relative with
respect to whom such individual is not a
specified child, determined without regard to
subparagraphs (A) and (B) and after application
of this subparagraph).
``(E) Treatment of joint returns.--For purposes of
this paragraph, with respect to any month, 2
individuals filing a joint return for the taxable year
which includes such month shall be treated as 1
individual.
``(F) Parent.--Except as otherwise provided by the
Secretary, the term `parent' shall have the same
meaning as when used in section 152(c)(4).
``(4) Special rules with respect to birth and death.--
``(A) Birth.--
``(i) In general.--In the case of the birth
of an individual during any calendar year, such
individual shall be treated as a specified
child of the relevant taxpayer for each
calendar month in such calendar year which
precedes the calendar month referred to in
clause (ii).
``(ii) Relevant taxpayer.--For purposes of
clause (i), the term `relevant taxpayer' means
the taxpayer with respect to whom the
individual referred to in clause (i) is a
specified child for the first month for which
such individual is a specified child with
respect to any taxpayer (determined without
regard to this subparagraph).
``(B) Death.--
``(i) In general.--In the case of the death
of an individual during any calendar year, such
individual shall be treated as a specified
child of the relevant taxpayer for each
calendar month in such calendar year which
follows the calendar month referred to in
clause (ii).
``(ii) Relevant taxpayer.--For purposes of
clause (i), the term `relevant taxpayer' means
the taxpayer with respect to whom the
individual referred to in clause (i) is a
specified child for the last month for which
such individual is alive.
``(5) Treatment of temporary absences.--For purposes of
this subsection--
``(A) In general.--In the case of any individual's
temporary absence from such individual's principal
place of abode, each day composing the temporary
absence shall--
``(i) be treated as a day at such
individual's principal place of abode, and
``(ii) not be treated as a day at any other
location.
``(B) Temporary absence.--For purposes of
subparagraph (A), an absence shall be treated as
temporary if--
``(i) the individual would have resided at
the place of abode but for the absence, and
``(ii) under the facts and circumstances,
it is reasonable to assume that the individual
will return to reside at the place of abode.
``(6) Special rule for divorced parents, etc.--Rules
similar to the rules section 152(e) shall apply for purposes of
this subsection.
``(7) Eligibilty determined on basis of presumptive
eligibility.--
``(A) In general.--If a period of presumptive
eligibility is established under section 7527B(c) for
any individual with respect to any taxpayer--
``(i) such individual shall be treated as
the specified child of such taxpayer for any
month in such period of presumptive
eligibility, and
``(ii) such individual shall not be treated
as the specified child of any other taxpayer
with respect to whom a period of presumptive
eligibility has not been established for any
such month.
``(B) Ability of credit claimants to establish
presumptive eligibility.--Nothing in section 7527B(c)
shall be interpreted to preclude a taxpayer who elects
not to receive monthly advance child payments under
section 7527B from establishing a period of presumptive
eligibility (including any such period described in
section 7527B(c)(2)(D)) with respect to any specified
child for purposes of this section.
``(d) Portion of Credit Refundable.--If the taxpayer (in the case
of a joint return, either spouse) has a principal place of abode
(determined as provided in section 32) in the United States or Puerto
Rico for more than one-half of any calendar month during the taxable
year, so much of the credit otherwise allowed under subsection (a) as
is attributable to monthly specified child allowances with respect to
any such calendar month shall be allowed under subpart C (and not
allowed under this subpart).
``(e) Identification Requirements.--Rules similar to the rules of
section 24(e) shall apply for purposes of this section.
``(f) Restrictions on Taxpayers Who Improperly Claimed Credit or
Improperly Received Monthly Advance Child Payment.--
``(1) Taxpayers making prior fraudulent or reckless
claims.--
``(A) In general.--No credit shall be allowed under
this section for any taxable year (and no payment shall
be made under section 7527B for any month) in the
disallowance period.
``(B) Disallowance period.--For purposes of
subparagraph (A), the disallowance period is--
``(i) the period of 10 taxable years after
the most recent taxable year for which there
was a final determination that the taxpayer's
claim of credit under this section or section
24 (or payment under section 7527A or 7527B)
was due to fraud,
``(ii) the period of 2 taxable years after
the most recent taxable year for which there
was a final determination that the taxpayer's
claim of credit under this section or section
24 (or payment under section 7527A or 7527B)
was due to reckless or intentional disregard of
rules and regulations (but not due to fraud),
and
``(iii) in addition to any period
determined under clause (i) or (ii) (as the
case may be), the period beginning on the date
of the final determination described in such
clause and ending with the beginning of the
period described in such clause.
``(2) Taxpayers making improper prior claims.--In the case
of a taxpayer who is denied credit under this section or
section 24 for any taxable year as a result of the deficiency
procedures under subchapter B of chapter 63, no credit shall be
allowed under this section for any subsequent taxable year (and
no payment shall be made under section 7527B for any subsequent
month) unless the taxpayer provides such information as the
Secretary may require to demonstrate eligibility for such
credit.
``(3) Coordination with possessions of the united states.--
In carrying out this section, the Secretary shall coordinate
with each possession of the United States to prevent the
avoidance of the application of this subsection.
``(g) Reconciliation of Credit and Monthly Advance Child
Payments.--
``(1) In general.--The amount otherwise determined under
subsection (a) with respect to any taxpayer for any taxable
year shall be reduced (but not below zero) by the aggregate
amount of payments made under section 7527B to such taxpayer
for one or more calendar months in such taxable year. Any
failure to so reduce the credit shall be treated as arising out
of a mathematical or clerical error and assessed according to
section 6213(b)(1).
``(2) Recapture of excess advance payments in certain
circumstances.--In the case of a taxpayer described in
paragraph (3) for any taxable year, the tax imposed by this
chapter for such taxable year shall be increased by the excess
(if any) of--
``(A) the aggregate amount of payments made to the
taxpayer under section 7527B for one or more calendar
months in such taxable year, over
``(B) the amount determined under subsection (a)
with respect to the taxpayer for such taxable year
(without regard to paragraph (1) of this subsection).
``(3) Taxpayers subject to recapture.--
``(A) Fraud or reckless or intentional disregard of
rules and regulations.--A taxpayer is described in this
paragraph with respect to any taxable year if the
Secretary determines that the amount described in
paragraph (2)(A) with respect to the taxpayer for such
taxable year was determined on the basis of fraud or a
reckless or intentional disregard of rules and
regulations.
``(B) Understatement of income; changes in filing
status.--If the amount described in paragraph (2)(A)
with respect to the taxpayer for the taxable year was
determined on the basis of an amount of the taxpayer's
modified adjusted gross income which was less than the
taxpayer's modified adjusted gross income for the
applicable taxable year (as defined in subsection
(b))--
``(i) such taxpayer shall be treated as
described in this paragraph, and
``(ii) the increase determined under
paragraph (2) by reason of this subparagraph
shall not exceed the excess of--
``(I) the amount described in
paragraph (2)(A), over
``(II) the amount which would be so
described if the payments described
therein had been determined on the
basis of the taxpayer's modified
adjusted gross income for the
applicable taxable year (as defined in
subsection (b)).
A rule similar to the rule of the preceding
sentence shall apply if the amount described in
paragraph (2)(A) with respect to the taxpayer
for the taxable year was determined on the
basis of a filing status of the taxpayer which
differs from the taxpayer's filing status for
the applicable taxable year (as so defined).
``(C) Payments made outside of period of
presumptive eligibility.--If any payment described in
paragraph (2)(A) with respect to the taxpayer for the
taxable year was made with respect to a child for a
month which was not part of a period of presumptive
eligibility established under section 7527B(c) for such
child with respect to such taxpayer--
``(i) such taxpayer shall be treated as
described in this paragraph, and
``(ii) the increase determined under
paragraph (2) by reason of this subparagraph
shall not exceed the portion of such payment so
made.
``(D) Certain payments made after notice from
secretary.--If the Secretary notifies a taxpayer under
section 7527B(j)(2) that such taxpayer is subject to
recapture with respect to any payments--
``(i) such taxpayer shall be treated as
described in this paragraph, and
``(ii) the increase determined under
paragraph (2) by reason of this subparagraph
shall not exceed the aggregate amount of such
payments.
``(E) Taxpayers moving to another jurisdiction.--To
minimize the amount of advance payments made under
section 7527B to ineligible individuals, the Secretary
shall issue regulations or other guidance for purposes
of this paragraph which apply with respect to taxpayers
who are described in section 7527B(b)(4) with respect
to the reference month but are not so described with
respect to one or more months during the taxable year
for which advance payments under section 7527B are
made.
``(F) Other circumstances to prevent abuse.--A
taxpayer is described in this paragraph with respect to
any taxable year pursuant to regulations or other
guidance of the Secretary describing other recapture
circumstances to facilitate the administration and
enforcement by the Secretary of section 7527B to
minimize the amount of advance payments made under
section 7527B to ineligible individuals and to prevent
abuse.
``(4) Joint returns.--Except as otherwise provided by the
Secretary, in the case of an advance payment made under section
7527B with respect to a joint return, half of such payment
shall be treated as having been made to each individual filing
such return.
``(h) Inflation Adjustments.--
``(1) Monthly specified child allowance.--
``(A) In general.--In the case of any month
beginning after December 31, 2022, each of the dollar
amounts in subsection (b)(1) shall be increased by an
amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the percentage (if any) by which--
``(I) the CPI (as defined in
section 1(f)(4)) for the calendar year
preceding the calendar year in which
such month begins, exceeds
``(II) the CPI (as so defined) for
calendar year 2020.
``(B) Rounding.--Any increase under subparagraph
(A) which is not a multiple of $10 shall be rounded to
the nearest multiple of $10.
``(2) Initial threshold amount.--
``(A) In general.--In the case of any taxable year
beginning after December 31, 2022, the dollar amounts
in subclauses (I) and (III) of subsection (b)(2)(D)(i)
shall each be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the percentage (if any) by which--
``(I) the CPI (as defined in
section 1(f)(4)) for the calendar year
preceding the calendar year in which
such taxable year begins, exceeds
``(II) the CPI (as so defined) for
calendar year 2020.
``(B) Rounding.--Any increase under subparagraph
(A) which is not a multiple of $5,000 shall be rounded
to the nearest multiple of $5,000.
``(i) Application of Credit in Possessions.--
``(1) Mirror code possessions.--
``(A) In general.--The Secretary shall pay to each
possession of the United States with a mirror code tax
system amounts equal to the loss (if any) to that
possession by reason of the application of this section
(determined without regard to this subsection) with
respect to taxable years beginning after 2022 and
before 2026. Such amounts shall be determined by the
Secretary based on information provided by the
government of the respective possession.
``(B) Coordination with credit allowed against
united states income taxes.--No credit shall be allowed
under this section for any taxable year to any
individual to whom a credit is allowable against taxes
imposed by a possession of the United States with a
mirror code tax system by reason of the application of
this section in such possession for such taxable year.
``(C) Mirror code tax system.--For purposes of this
paragraph, the term `mirror code tax system' means,
with respect to any possession of the United States,
the income tax system of such possession if the income
tax liability of the residents of such possession under
such system is determined by reference to the income
tax laws of the United States as if such possession
were the United States.
``(2) Cross references related to application of credit to
residents of puerto rico.--
``(A) For application of refundable credit to
residents of Puerto Rico, see subsection (d).
``(B) For application of advance payment to
residents of Puerto Rico, see section 7527B(b)(4).
``(3) American samoa.--
``(A) In general.--The Secretary shall pay to
American Samoa amounts estimated by the Secretary as
being equal to the aggregate benefits that would have
been provided to residents of American Samoa by reason
of the application of this section for taxable years
beginning after 2022 and before 2026 if the provisions
of this section had been in effect in American Samoa
(applied as if American Samoa were the United States
and without regard to the application of this section
to residents of Puerto Rico under subsection (d)).
``(B) Distribution requirement.--Subparagraph (A)
shall not apply unless American Samoa has a plan, which
has been approved by the Secretary, under which
American Samoa will promptly distribute such payments
to its residents.
``(C) Coordination with credit allowed against
united states income taxes.--
``(i) In general.--In the case of a taxable
year with respect to which a plan is approved
under subparagraph (B), this section (other
than this subsection) shall not apply to any
individual eligible for a distribution under
such plan.
``(ii) Application of section in event of
absence of approved plan.--In the case of a
taxable year with respect to which a plan is
not approved under subparagraph (B), subsection
(d) shall be applied by substituting `, Puerto
Rico, or American Samoa' for `or Puerto Rico'.
``(4) Treatment of payments.--For purposes of section 1324
of title 31, United States Code, the payments under this
subsection shall be treated in the same manner as a refund due
from a credit provision referred to in subsection (b)(2) of
such section.
``(j) Regulations.--The Secretary shall issue such regulations or
other guidance as the Secretary determines necessary or appropriate to
carry out the purposes of this section, including regulations or other
guidance--
``(1) for determining whether an individual receives care
from a taxpayer for purposes of subsection (c)(1), and
``(2) to coordinate or modify the application of this
section and section 24, 7527A, and 7527B in the case of any
taxpayer--
``(A) whose taxable year is other than a calendar
year,
``(B) whose filing status for a taxable year is
different from the status used for determining one or
more monthly payments under section 7527B during such
taxable year, or
``(C) whose principal place of abode for any month
is different from the principal place of abode used for
determining the monthly payment under section 7527B for
such month.
``(k) Termination.--This section shall not apply to taxable years
beginning after December 31, 2025.
``SEC. 24B. CREDIT FOR CERTAIN OTHER DEPENDENTS.
``(a) In General.--There shall be allowed as a credit against the
tax imposed by this chapter for the taxable year an amount equal to
$500 with respect to each specified dependent of such taxpayer for such
taxable year.
``(b) Limitation Based on Modified Adjusted Gross Income.--
``(1) In general.--The amount of the credit allowable under
subsection (a) shall be reduced (but not below zero) by $50 for
each $1,000 (or fraction thereof) by which the taxpayer's
modified adjusted gross income exceeds the threshold amount.
``(2) Threshold amount.--For purposes of this subsection,
the term `threshold amount' means--
``(A) $400,000, in the case of a joint return or
surviving spouse (as defined in section 2(a)),
``(B) $300,000, in the case of a head of household
(as defined in section 2(b)), and
``(C) $200,000, in any other case.
``(3) Modified adjusted gross income.--For purposes of this
subsection, the term `modified adjusted gross income' means
adjusted gross income increased by any amount excluded from
gross income under section 911, 931, or 933.
``(c) Specified Dependent.--For purposes of this section, the term
`specified dependent' means, with respect to any taxpayer for any
taxable year, any dependent of such taxpayer for such taxable year
unless such dependent--
``(1) is a specified child of the taxpayer, or any other
taxpayer, for any month during such taxable year, or
``(2) would not be a dependent if subparagraph (A) of
section 152(b)(3) were applied without regard to all that
follows `resident of the United States'.
``(d) Identification Requirements.--Rules similar to the rules of
section 24(e) shall apply for purposes of this section.
``(e) Taxable Year Must Be Full Taxable Year.--Except in the case
of a taxable year closed by reason of the death of the taxpayer, no
credit shall be allowable under this section in the case of a taxable
year covering a period of less than 12 months.
``(f) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning after December 31, 2022, the $500 amount in
subsection (a) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the percentage (if any) by which--
``(i) the CPI (as defined in section
1(f)(4)) for the calendar year preceding the
calendar year in which such taxable year
begins, exceeds
``(ii) the CPI (as so defined) for calendar
year 2020.
``(2) Rounding.--If the increase determined under paragraph
(1) is not a multiple of $10, such increase shall be rounded to
the nearest multiple of $10.
``(g) Regulations.--The Secretary shall issue such regulations or
other guidance as the Secretary determines necessary or appropriate to
carry out the purposes of this section.
``(h) Termination.--This section shall not apply to taxable years
beginning after December 31, 2025.''.
(b) Monthly Payment of Child Tax Credit.--Chapter 77 is amended by
inserting after section 7527A the following new section:
``SEC. 7527B. MONTHLY PAYMENTS OF CHILD TAX CREDIT.
``(a) In General.--The Secretary shall establish a program for
making payments to taxpayers with respect to each calendar month equal
to the monthly advance child payment determined with respect to such
taxpayer for such month.
``(b) Monthly Advance Child Payment.--For purposes of this section
and except as otherwise provided in this section, the term `monthly
advance child payment' means, with respect to any taxpayer for any
calendar month, the amount (if any) which is estimated by the Secretary
as being equal to the monthly specified child allowance which would be
determined under section 24A(b) with respect to such taxpayer for such
calendar month if--
``(1) unless determined by the Secretary based on any
information known to the Secretary, the only specified children
of such taxpayer for such calendar month are the specified
children of such taxpayer for the reference month,
``(2) unless determined by the Secretary based on any
information known to the Secretary, the ages of such children
(and the status of such children as specified children) are
determined for such calendar month by taking into account the
passage of time since such reference month,
``(3) the limitations of section 24A(b)(2) were applied
with respect to the reference taxable year rather than with
respect to the applicable taxable year, and
``(4) unless determined by the Secretary based on any
information known to the Secretary, no monthly specified child
allowance were determined with respect to such taxpayer for
such calendar month unless the taxpayer (in the case of a joint
return, either spouse) has a principal place of abode
(determined as provided in section 32) in the United States or
Puerto Rico for more than one-half of the reference month.
``(c) Presumptive Eligibility.--
``(1) In general.--An individual shall be treated as a
specified child of a taxpayer for purposes of determining any
monthly advance child payment under this section only if such
month is part of the period of presumptive eligibility
determined by the Secretary under this subsection with respect
to such specified child and such taxpayer (determined by
treating the month described in subclause (I) of paragraph
(2)(A)(ii) as being the first month beginning after the
determination described in such subclause).
``(2) Period of presumptive eligibility.--For purposes of
this section--
``(A) In general.--Except as otherwise provided by
the Secretary, the term `period of presumptive
eligibility' means the period--
``(i) beginning with the month for which
presumptive eligibility is established, and
``(ii) ending with the earliest of--
``(I) the beginning of the month
described in clause (i) if the
Secretary determines that the taxpayer
committed fraud or intentionally
disregarded rules or regulations in
establishing or maintaining presumptive
eligibility,
``(II) in the case of any
notification from the Secretary that
the period of presumptive eligibility
has been terminated or suspended by
reason of any question regarding
eligibility of the taxpayer for monthly
advance child payments with respect to
such child, the month specified in such
notice as the month on which such
termination or suspension begins, and
``(III) the month following any
failure of the taxpayer to make the
required annual renewal of presumptive
eligibility by such date as the
Secretary may provide.
``(B) Establishing presumptive eligibility.--A
taxpayer shall establish presumptive eligibility with
respect to any specified child for any month at such
time and in such manner as the Secretary may provide.
Except as otherwise provided by the Secretary, in order
to establish a period of presumptive eligibility the
taxpayer must express a reasonable expectation and
intent that the taxpayer will continue to be eligible
with respect to such specified child for at least the
two months following the month for which presumptive
eligibility is to be established.
``(C) Method of establishing presumptive
eligibility.--The Secretary shall ensure information to
establish presumptive eligibility under this paragraph
may be provided on the return of tax for the taxable
year ending before the calendar year which includes the
month for which such eligibility is to be established,
through the on-line portal described in subsection (c),
or in such other manner as the Secretary may provide.
``(D) Inclusion of automatic grace periods and
periods of hardship.--The period of presumptive
eligibility shall include any period to which paragraph
(1) or (2) of subsection (g) applies.
``(E) Automatic eligibility for birth of child.--
The Secretary shall issue regulations or other guidance
to establish procedures pursuant to which, to the
maximum extent administratively practicable--
``(i) a parent of a child born during a
calendar month shall be treated as
automatically establishing presumptive
eligibility with respect to such child,
``(ii) the period of such automatic
presumptive eligibility is determined, and
``(iii) the first monthly advance child
payment with respect to such child is adjusted
to properly take into account each month in the
taxable year preceding such birth.
``(F) Presumptive eligibility based on certain
government programs.--The Secretary shall issue
regulations or other guidance to establish procedures
under which--
``(i) based on information provided to the
Secretary by one or more government entities, a
parent or specified relative of a child is
treated as automatically establishing
presumptive eligibility with respect to such
child, and
``(ii) the period for which such automatic
presumptive eligibility is determined
(including any additional circumstances under
which such period will terminate).
``(G) Coordination with presumption.--For purposes
of determining the status of any individual as a
specified child for purposes of determining presumptive
eligibility with respect to any period, section 24A(c)
shall be applied without regard to paragraph (7)
thereof.
``(3) Notice of termination of presumptive eligibility by
reason of failure to make annual renewal.--If a taxpayer's
period of presumptive eligibility with respect to any specified
child terminates by reason of paragraph (2)(A)(ii)(IV), the
Secretary shall provide the taxpayer a written notice of such
termination.
``(d) Determination of Reference Month and Reference Taxable
Year.--For purposes of this section--
``(1) Reference month.--The term `reference month' means,
with respect to any taxpayer for any calendar month, the most
recent of--
``(A) in the case of a taxpayer who filed a return
of tax for the last taxable year ending before such
calendar month, the last month of such taxable year,
``(B) in the case of a taxpayer who filed a return
of tax for the taxable year preceding the taxable year
described in subparagraph (A), the last month of such
preceding taxable year, and
``(C) in the case of a taxpayer who provides,
through a specified alternative mechanism, information
which is sufficient to estimate the taxpayer's monthly
advance child payment for such month, such month.
``(2) Reference taxable year.--The term `reference taxable
year' means, with respect to any taxpayer for any calendar
month, the most recent of--
``(A) the taxable year described in subparagraph
(A) or (B) of paragraph (1), or
``(B) in the case of a taxpayer who provides,
through a specified alternative mechanism, information
which is sufficient to estimate the taxpayer's modified
adjusted gross income for the taxable year which
includes such month, such taxable year.
``(3) Availability of information.--Any month or year
referred to in subparagraphs (A), (B), or (C) of paragraph (1)
or subparagraph (A) or (B) of paragraph (2) shall not be taken
into account in determining the reference month or reference
taxable year with respect to any calendar month unless all
relevant information with respect to such month or year is
available to the Secretary and the Secretary has adequate time
to make estimates under this section on the basis of such
information before the beginning of such calendar month.
``(4) Treatment of insufficient information.--Except as
otherwise provided by the Secretary--
``(A) if a taxpayer is not described in
subparagraph (A), (B), or (C) of paragraph (1) with
respect to any calendar month, the monthly advance
child payment with respect to such taxpayer for such
calendar month shall be treated as zero unless the
Secretary determines that the Secretary can make the
estimate described in subsection (b) on the basis of
information known to the Secretary which the Secretary
determines is reasonably reliable, and
``(B) if the taxpayer is not described in paragraph
(1)(C) and the information on the return of tax
referred to in subparagraph (A) or (B) of paragraph (1)
does not establish the status of the taxpayer (in the
case of a joint return, either spouse) as having a
principal place of abode (determined as provided in
section 32) in the United States or Puerto Rico for
more than one-half of the reference month, the
Secretary shall determine such status based on
information known to the Secretary.
``(5) Transition rule.--In any case with respect to which
section 24A was not in effect for the taxable year described in
subparagraph (A), (B), or (C) of paragraph (1) (whichever is
applicable), subsection (b)(1) shall be applied by substituting
`the qualifying children of such taxpayer for the taxable year
which includes the reference month' for `the specified children
of such taxpayer for the reference month'.
``(e) On-line Information Portal; Specified Alternative
Mechanisms.--
``(1) On-line information portal.--The Secretary shall
establish an on-line portal which allows taxpayers to--
``(A) subject to such restrictions as the Secretary
may provide, elect to begin or cease receiving payments
under this section, and
``(B) provide information to the Secretary which is
relevant in determining the monthly advance child
payment and the taxpayer's eligibility for such
payment, including information regarding--
``(i) the number of the taxpayer's
specified children, including by reason of the
birth of a child,
``(ii) the taxpayer's marital status,
``(iii) the taxpayer's modified adjusted
gross income,
``(iv) the taxpayer's principal place of
abode, and
``(v) any other factor which the Secretary
may provide.
``(2) Specified alternative mechanism.--For purposes of
this section, the term `specified alternative mechanism' means
the on-line portal established under paragraph (1), the on-line
portal established under section 7527A, and any other mechanism
or method established by the Secretary to allow taxpayer's to
provide the information described in paragraph (1) (including
in connection with the filing of any return of tax).
``(f) Specified Child of More Than 1 Taxpayer.--
``(1) In general.--In the event that (without regard to
this paragraph and determined without regard to any election
under subsection (e)(1)) any specified child would be taken
into account in determining the monthly advance child payment
of more than one taxpayer for the same calendar month--
``(A) except as provided in subparagraph (B), such
child shall be so taken into account only with respect
to the taxpayer with the most recent reference month,
and
``(B) if any such taxpayer is described in
subsection (d)(1)(C) (or more than 1 taxpayer is
described in subparagraph (A) of this paragraph), the
Secretary shall establish procedures under which the
Secretary expeditiously adjudicates the taxpayer's
competing claims of presumptive eligibility with
respect to the same child.
``(2) Provisions related to adjudication.--
``(A) Expedited process; appeals.--The procedures
established under paragraph (1)(B) shall include--
``(i) an expedited process for taxpayers
who meet such requirements as the Secretary may
establish for such expedited process, and
``(ii) procedures for adjudicating an
appeal of an adverse decision.
``(B) Information receipt and coordination.--The
Secretary may enter into agreements to receive
information from, and otherwise coordinate with--
``(i) Federal agencies (including the
Social Security Administration and the
Department of Agriculture),
``(ii) any State, local government, Tribal
government, or possession of the United States,
and
``(iii) any other individual or entity that
the Secretary determines to be appropriate for
purposes of adjudicating a competing claim
described in paragraph (1).
``(C) Adjudication not treated as assessment.--An
adjudication under the procedures established under
paragraph (1)(B) (including the adjudication of any
appeal) shall not be treated as an assessment described
in section 6201.
``(D) Adjudication not treated as inspection of
taxpayer's books of account.--The inspection of a
taxpayer's books of account in connection with any
adjudication under the procedures established under
paragraph (1)(B) (including the adjudication of any
appeal) shall not be treated as an examination or
inspection of a taxpayer's books of account for
purposes of section 7605(b).
``(3) Retroactive payments.--If, pursuant to the procedures
established under paragraph (1)(B), the Secretary determines
that a child is a specified child of a taxpayer and the
Secretary did not make payments to such taxpayer with respect
to such child for any portion of the period during which the
determination was made, the Secretary may make a one-time
payment to the taxpayer with respect to which such child is the
specified child in an amount equal to the aggregate amount by
which the monthly advance child payments to such taxpayer would
have increased during such period if such determination had
been made immediately.
``(4) Recapture of payments.--If, pursuant to the
procedures established under paragraph (1)(B), the Secretary
makes payments with respect to the child during the period
during which the determination is made--
``(A) the Secretary shall provide each taxpayer
which receives such payments notice that such payments
may be subject to recapture, and
``(B) upon making such determination, the Secretary
shall determine on the basis of the facts and
circumstances of each such taxpayer whether any such
payments should be subject to recapture and shall so
notify each such taxpayer.
``(g) Rules Related to Grace Periods and Hardships.--
``(1) Automatic grace period.--
``(A) In general.--Notwithstanding subsection (f),
in the case of any failure or delay in establishing a
period of presumptive eligibility with respect to which
the taxpayer elects the application of this
subparagraph, credit under section 24A or retroactive
payment under this section (similar to the payment
described in subsection (f)(3)) shall be allowed or
made with respect to so much of the period of such
failure or delay as does not exceed 3 months. The
preceding sentence shall not apply if the Secretary
determines that such failure or delay was due to fraud
or reckless or intentional disregard of rules and
regulations.
``(B) Limitation.--Subparagraph (A) shall not apply
with respect to any taxpayer more than once during any
36-month period.
``(2) Hardship.--Notwithstanding subsection (f), if the
Secretary determines that a failure or delay in establishing a
period of presumptive eligibility with respect to any specified
child was due to domestic violence, serious illness, natural
disaster, or any other hardship, credit under section 24A or
retroactive payment under this section (similar to the payment
described in subsection (f)(3)) shall be allowed or made with
respect to so much of the period of such failure or delay as
does not exceed 6 months.
``(h) Provisions Related to Form, Manner, and Treatment of
Payments.--
``(1) Application of electronic funds payment
requirement.--The payments made by the Secretary under
subsection (a) shall be made by electronic funds transfer to
the same extent and in the same manner as if such payments were
Federal payments not made under this title.
``(2) Application of certain rules.--Rules similar to the
rules of subparagraphs (B) and (C) of section 6428A(f)(3) shall
apply for purposes of this section, applied by substituting
`January 1, 2022' for `January 1, 2019' in clauses (i) and (ii)
of such subparagraph (B).
``(3) Exception from reduction or offset.--Any payment made
to any individual under this section shall not be--
``(A) subject to reduction or offset pursuant to
subsection (c), (d), (e), or (f) of section 6402 or any
similar authority permitting offset, or
``(B) reduced or offset by other assessed Federal
taxes that would otherwise be subject to levy or
collection.
``(4) Application of advance payments in the possessions of
the united states.--
``(A) Puerto rico.--
``(i) For application of child tax credit
to residents of Puerto Rico, see section
24A(d).
``(ii) For application of monthly advance
child payments to residents of Puerto Rico, see
subsection (b)(4).
``(B) Mirror code possessions.--In the case of any
possession of the United States with a mirror code tax
system (as defined in section 24A(i)(1)(C)), this
section shall not be treated as part of the income tax
laws of the United States for purposes of determining
the income tax law of such possession unless such
possession elects to have this section be so treated.
``(C) Administrative expenses of advance
payments.--
``(i) Mirror code possessions.--In the case
of any possession described in subparagraph (B)
which makes the election described in such
subparagraph, the amount otherwise paid by the
Secretary to such possession under section
24A(i)(1)(A) with respect to taxable years
beginning in 2023, 2024, and 2025 shall each be
increased by $300,000 if such possession has a
plan, which has been approved by the Secretary,
for making monthly advance child payments
consistent with such election.
``(ii) American samoa.-- The amount
otherwise paid by the Secretary to American
Samoa under subparagraph (A) of section
24A(i)(3) with respect to taxable years
beginning in 2023, 2024, and 2025 shall each be
increased by $300,000 if the plan described in
subparagraph (B) of such section includes a
program, which has been approved by the
Secretary, for making monthly advance child
payments under rules similar to the rules of
this section.
``(iii) Timing of payment.--The Secretary
may pay, upon the request of the possession of
the United States to which the payment is to be
made, the amount of the increase determined
under clause (i) or (ii), respectively,
immediately upon approval of the plan with
respect to which such payment relates.
``(i) Application of Certain Definitions and Rules Applicable to
Child Tax Credit.--
``(1) Definitions.--Except as otherwise provided in this
section, terms used in this section which are also used in
section 24A shall have the same respective meanings as when
used in section 24A.
``(2) Treatment of certain deaths.--A child shall not be
taken into account in determining the monthly advance child
payment for any calendar month if the death of such child
before the beginning of the calendar year which includes such
month is known to the Secretary as of date on which the
Secretary estimates such payment.
``(3) Identification requirements.--Rules similar to the
rules which apply under section 24A(e) shall apply for purposes
of this section except that such rules shall apply with respect
to the return of tax for the reference taxable year or, in the
case of information provided through a specified alternative
mechanism, with respect to the information provided through
such mechanism.
``(4) Restrictions on taxpayers who improperly claimed
credit or monthly advance child payments.--For restrictions on
taxpayers who improperly claimed credit or monthly advance
child payments, see section 24A(f).
``(j) Notice of Payments.--
``(1) In general.--Not later than January 31 of the
calendar year following any calendar year during which the
Secretary makes one or more payments to any taxpayer under this
section, the Secretary shall provide such taxpayer with a
written notice which includes--
``(A) the taxpayer's taxpayer identity (as defined
in section 6103(b)(6)),
``(B) the aggregate amount of such payments made to
such taxpayer during such calendar year, and
``(C) such other information as the Secretary
determines appropriate.
``(2) Certain payments subject to recapture.--In the case
of any payments made to a taxpayer which the Secretary has
determined are subject to recapture, the notice provided under
paragraph (1) to such taxpayer shall include the amount of such
payments.
``(k) Regulations.--The Secretary shall issue such regulations or
other guidance as the Secretary determines necessary or appropriate to
carry out the purposes of this section.
``(l) Termination.--No payments shall be made under the program
established under subsection (a) with respect to any month beginning
after December 31, 2025.''.
(c) Suspension of Child Tax Credit During Period That Monthly Child
Tax Credit Is in Effect.--Section 24 is amended by adding at the end
the following new subsection:
``(l) Coordination With Monthly Child Tax Credit.--This section
shall not apply to (and no payment shall be made under subsection (k)
with respect to) any taxable year beginning after December 31, 2022,
and before January 1, 2026.''.
(d) Conforming Amendments.--
(1) Section 26(b)(2) is amended by striking ``and'' at the
end of subparagraph (Y), by striking the period at the end of
subparagraph (Z) and inserting ``, and'', and by adding at the
end the following new subparagraph:
``(AA) section 24A(g)(2) (relating to recapture of
certain monthly advance child payments).''.
(2) Section 152(f)(6)(B)(ii) is amended to read as follows:
``(ii) the credits under sections 24, 24A,
and 24B and the payments under sections 7527A
and 7527B,''.
(3) Section 3402(f)(1)(C) is amended by inserting ``or
section 24A (determined after application of subsection (g)
thereof)'' after ``section 24 (determined after application of
subsection (j) thereof)''.
(4) Section 6103(l)(13)(A)(v) is amended by insert ``or
section 24A, as the case may be'' after ``section 24''.
(5) Section 6211(b)(4)(A) is amended by inserting ``24A by
reason of subsection (d) thereof,'' after ``24 by reason of
subsections (d) and (i)(1) thereof,''.
(6) Section 6213(g)(2)(I) is amended by inserting ``or
section 24A(e) (relating to monthly child tax credit)'' after
``section 24(e) (relating to child tax credit)''.
(7) Section 6213(g)(2)(L) is amended by inserting ``24A,''
after ``24,''.
(8) Section 6213(g)(2)(P) is amended--
(A) by inserting ``or 24A(f)(2)'' after ``section
24(g)(2)'',
(B) by inserting ``or 24A'' after ``under section
24'', and
(C) by striking ``subsection (g)(1) thereof'' and
inserting ``section 24(g)(1) or section 24A(f)(1),
respectively''.
(9) Section 6695(g)(2) is amended by inserting ``24A,''
after ``24,''.
(10) Paragraph (2) of section 1324(b) of title 31, United
States Code, as amended by the preceding provisions of this
Act, is amended--
(A) by inserting ``24A,'' after ``24,'', and
(B) by inserting ``7527B,'' after ``7527A,''.
(11) The table of sections for subpart A of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 24 the following new items:
``Sec. 24A. Monthly child tax credit.
``Sec. 24B. Credit for certain other dependents.''.
(12) The table of sections for chapter 77 is amended by
inserting after the item relating to section 7527A the
following new item:
``Sec. 7527B. Monthly payments of child tax credit.''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years beginning after December 31, 2022.
(2) Monthly advance child payments.--The amendments made by
subsection (b) shall apply to payments made for calendar months
beginning after December 31, 2022.
SEC. 137104. REFUNDABLE CHILD TAX CREDIT AFTER 2025.
(a) In General.--Section 24, as amended by the preceding provisions
of this Act, is amended by adding at the end the following new
subsection:
``(m) Refundable Credit After 2025.--In the case of any taxable
year beginning after December 31, 2025, if the taxpayer (in the case of
a joint return, either spouse) has a principal place of abode in the
United States (determined as provided in section 32) for more than one-
half of the taxable year or is a bona fide resident of Puerto Rico
(within the meaning of section 937(a)) for such taxable year--
``(1) subsection (d) shall not apply, and
``(2) the credit determined under subsection (a) (after
application of paragraph (1)) shall be allowed under subpart C
(and not allowed under this subpart).''.
(b) Conforming Amendments Related to Possessions of the United
States.--
(1) Puerto rico.--Section 24(k)(2) is amended--
(A) in subparagraph (B) (as amended by the
preceding provisions of this Act)--
(i) by inserting ``and before January 1,
2026,'' after ``December 31, 2022,'', and
(ii) by inserting ``and before 2026'' after
``After 2022'', and
(B) by adding at the end the following new
subparagraph:
``(C) Application to taxable years after 2025.--For
application of refundable credit to residents of Puerto
Rico for taxable years after 2025, see subsection
(m).''.
(2) American samoa.--Section 24(k)(3)(C)(ii), as amended by
the preceding provisions of this Act, is amended--
(A) in subclause (I), by striking ``and'' at the
end,
(B) in subclause (II)--
(i) by inserting ``and before January 1,
2026,'' after ``after December 31, 2022,'', and
(ii) by striking the period at the end and
inserting ``, and'', and
(C) by adding at the end the following new
subclause:
``(III) if such taxable year begins
after December 31, 2025, subsection (m)
shall be applied by substituting
`Puerto Rico or American Samoa' for
`Puerto Rico'.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 137105. APPROPRIATIONS.
Immediately upon the enactment of this Act, in addition to amounts
otherwise available, there are appropriated out of any money in the
Treasury not otherwise appropriated:
(1) $9,000,000,000 to remain available until September 30,
2026, for necessary expenses for the Internal Revenue Service
to administer the Child Tax Credit, and advance payments of the
Child Tax Credit, including the costs of disbursing such
payments, which shall supplement and not supplant any other
appropriations that may be available for this purpose, and
(2) $1,000,000,000 is appropriated to the Department of the
Treasury, to remain available until September 30, 2026, to
support efforts to increase enrollment of eligible families in
the Child Tax Credit, for advance payments of the Child Tax
Credit, and for other tax benefits, including but not limited
to program outreach, costs of data sharing arrangements,
systems changes, forms changes, and related efforts, and
efforts by federal agencies to facilitate the cross-enrollment
of beneficiaries of other programs in the Child Tax Credit, and
for advance payments of the Child Tax Credit, including by
establishing intergovernmental cooperative agreements with
states and local governments, tribal governments, and
possessions of the United States: Provided, that such amount
shall be available in addition to any amounts otherwise
available: Provided further, that these funds may be awarded by
federal agencies to state and local governments, tribal
governments, and possessions of the United States, and private
entities, including organizations dedicated to free tax return
preparation.
PART 2--CHILD AND DEPENDENT CARE TAX CREDIT
SEC. 137201. CERTAIN IMPROVEMENTS TO THE CHILD AND DEPENDENT CARE
CREDIT MADE PERMANENT.
(a) Credit Refundable for Taxpayers With Principal Place of Abode
in the United States.--Section 21(g) is amended to read as follows;
``(g) Credit Refundable for Taxpayers With Principal Place of Abode
in the United States.--If the taxpayer (in the case of a joint return,
either spouse) has a principal place of abode in the United States
(determined as provided in section 32) for more than one-half of the
taxable year, the credit allowed under subsection (a) shall be treated
as a credit allowed under subpart C (and not allowed under this
subpart).''.
(b) Increase in Dollar Limit on Amount Creditable.--Section 21(c)
is amended--
(1) by striking ``$3,000'' in paragraph (1) and inserting
``$8,000'', and
(2) by striking ``$6,000'' in paragraph (2) and inserting
``$16,000''.
(c) Increase in Applicable Percentage.--Section 21(a)(2) is
amended--
(1) by striking ``35 percent'' and inserting ``50
percent'', and
(2) by striking ``$15,000'' and inserting ``$125,000''.
(d) Application of Increased Dollar Limitation to Spouses Who Are
Students or Incapable of Caring for Themselves.--Section 21(d)(2) is
amended by striking ``of not less than--'' and all that follows through
``In the case of'' and inserting ``of not less than \1/12\ of the
dollar amount in effect under paragraph (1) or (2) of subsection (c)
(whichever is applicable to the taxpayer for the taxable year). In the
case of''.
(e) Inflation Adjustment.--Section 21(e) is amended by adding at
the end the following new paragraph:
``(11) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning after December 31, 2021, the $125,000 amount
in subsection (a)(2), the $8,000 amount in subsection
(c)(1), and the $16,000 amount in subsection (c)(2)
shall each be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2020'
for `calendar year 2016' in subparagraph
(A)(ii) thereof.
``(B) Rounding.--
``(i) Limitation based on adjusted gross
income.--If any increase determined under
subparagraph (A) of the $125,000 dollar amount
in subsection (a)(2) is not a multiple of
$5,000, such amount shall be rounded to the
nearest multiple of $5,000.
``(i) Dollar limitations.--If any increase
determined under subparagraph (A) of any dollar
amount in subsection (c) is not a multiple of
$100, such amount shall be rounded to the
nearest multiple of $100.''.
(f) Application of Phaseout to High Income Individuals.--
(1) In general.--Section 21(a)(2) is amended by striking
``20 percent'' and inserting ``the phaseout percentage''.
(2) Phaseout percentage.--Section 21(a) is amended by
adding at the end the following new paragraph:
``(3) Phaseout percentage.--For purposes of paragraph (2),
the term `phaseout percentage' means 20 percent reduced (but
not below zero) by 1 percentage point for each $2,000 (or
fraction thereof) by which the taxpayer's adjusted gross income
for the taxable year exceeds $400,000.''.
(g) Application of Credit in Possessions.--Section 21(h) is
amended--
(1) in paragraph (1)--
(A) by striking ``The Secretary'' and inserting
``With respect to taxable years beginning in or with
calendar years after 2020, the Secretary'', and
(B) by striking ``with respect to taxable years
beginning in or with 2021'',
(2) in paragraph (2)--
(A) by striking ``The Secretary'' and inserting
``With respect to taxable years beginning in or with
calendar years after 2020, the Secretary'', and
(B) by striking ``with respect to taxable years
beginning in or with 2021'', and
(3) in paragraph (3), by striking ``in or with 2021'' and
inserting ``after December 31, 2020''.
(h) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 137202. INCREASE IN EXCLUSION FOR EMPLOYER-PROVIDED DEPENDENT CARE
ASSISTANCE MADE PERMANENT.
(a) In General.--Section 129(a)(2)(A) is amended by striking
``$5,000 ($2,500'' and inserting ``$10,500 (half such dollar amount''.
(b) Inflation Adjustment.--Section 129(e) is amended by adding at
the end the following new paragraph:
``(10) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning after December 31, 2021, the $10,500 amount
in subsection (a)(2)(A) shall be increased by an amount
equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2020'
for `calendar year 2016' in subparagraph
(A)(ii) thereof.
``(B) Rounding.--If any increase determined under
subparagraph (A) is not a multiple of $100, such amount
shall be rounded to the nearest multiple of $100.''.
(c) Conforming Amendment.--Section 129(a)(2) is amended by striking
subparagraph (D).
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
(e) Retroactive Plan Amendments.--A plan that otherwise satisfies
all applicable requirements of sections 125 and 129 of the Internal
Revenue Code of 1986 (including any rules or regulations thereunder)
shall not fail to be treated as a cafeteria plan or dependent care
assistance program merely because such plan is amended pursuant to a
provision under this subsection and such amendment is retroactive, if--
(1) such amendment is adopted no later than the last day of
the plan year in which the amendment is effective, and
(2) the plan is operated consistent with the terms of such
amendment during the period beginning on the effective date of
the amendment and ending on the date the amendment is adopted.
PART 3--SUPPORTING CAREGIVERS
SEC. 137301. PAYROLL TAX CREDIT FOR CHILD CARE WORKERS.
(a) In General.--Subchapter D of chapter 21 is amended by adding at
the end the following:
``SEC. 3135. PAYROLL CREDIT FOR CERTAIN WAGES PAID TO CHILD CARE
WORKERS.
``(a) In General.--In the case of an eligible child care employer,
there shall be allowed as a credit against applicable employment taxes
for each calendar quarter an amount equal to 50 percent of the
qualified child care wages paid with respect to each eligible employee
of such employer for such calendar quarter.
``(b) Limitations and Refundability.--
``(1) Limitation on wages taken into account.--The amount
of qualified child care wages with respect to any eligible
employee which may be taken into account under subsection (a)
by the eligible child care employer for any calendar quarter
shall not exceed $2,500.
``(2) Credit limited to certain employment taxes.--The
credit allowed by subsection (a) with respect to any calendar
quarter shall not exceed the applicable employment taxes
(reduced by any credits allowed under sections 3131, 3132,
3134, and 6432) on the wages paid with respect to the
employment of all the employees of the eligible child care
employer for such calendar quarter.
``(3) Refundability of excess credit.--
``(A) Credit is refundable.--If the amount of the
credit under subsection (a) exceeds the limitation of
paragraph (2) for any calendar quarter, such excess
shall be treated as an overpayment that shall be
refunded under sections 6402(a) and 6413(b).
``(B) Advancing credit.--In anticipation of the
credit, including the refundable portion under
subparagraph (A), the credit shall be advanced,
according to forms and instructions provided by the
Secretary, up to an amount calculated under subsection
(a), subject to the limits under paragraph (1), all
calculated through the end of the most recent payroll
period in the quarter.
``(c) Eligible Child Care Employer.--For purposes of this section,
the term `eligible child care employer' means any employer which
operates one or more qualified child care facilities.
``(d) Qualified Child Care Facility.--For purposes of this section,
the term `qualified child care facility' means any facility which is
certified as an HHS Participating Child Care Provider by the Secretary
of Health and Human Services under section 418A(c) of the Social
Security Act.
``(e) Eligible Employee.--For purposes of this section, the term
`eligible employee' means, with respect to any eligible child care
employer for any calendar quarter, any employee of such employer if--
``(1) the aggregate wages paid to such employee for such
quarter do not exceed 25 percent of the dollar amount in effect
for such quarter under section 414(q)(1)(B)(i) (relating to
highly compensated employees), and
``(2) the aggregate wages paid to such employee for the 1-
year period ending with the close of such quarter do not exceed
100 percent of such dollar amount.
``(f) Qualified Child Care Wages.--For purposes of this section--
``(1) In general.--The term `qualified child care wages'
means, with respect to any eligible employee for any calendar
quarter, so much of the child care wages paid by the eligible
child care employer to such employee during such quarter as are
paid at a rate in excess of the applicable minimum rate. Such
term shall not include any wages paid by an eligible child care
employer during any period during which the certification
described in subsection (d) is not in effect.
``(2) Applicable minimum rate.--The term `applicable
minimum rate' means, with respect to wages paid to any eligible
employee, the rate of basic pay which is payable for GS-3, step
1 of the General Schedule under subchapter III of chapter 53 of
title 5, United States Code (including any applicable locality-
based comparability payment under section 5304 of such title,
or similar authority) at the time such wages are paid and
determined with respect to the locality in which the services
are provided.
``(3) Child care wages.--The term `child care wages' means
wages paid for the services of the employee to provide child
care at a qualified child care facility or to provide support
services for such a facility.
``(4) Exception.--The term `child care wages' shall not
include any wages taken into account under section 41, 45A,
45P, 45R, 51, 1396, 3131, 3132, 3134, or 6432.
``(g) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Applicable employment taxes.--The term `applicable
employment taxes' means the following:
``(A) The taxes imposed under section 3111(b).
``(B) So much of the taxes imposed under section
3221(a) as are attributable to the rate in effect under
section 3111(b).
``(2) Wages.--
``(A) In general.--The term `wages' means wages (as
defined in section 3121(a)), determined without regard
to paragraphs (1) through (22) of section 3121(b)) and
compensation (as defined in section 3231(e), determined
without regard to the sentence in paragraph (1) thereof
which begins `Such term does not include
remuneration').
``(B) Allowance for certain health plan expenses.--
``(i) In general.--Such term shall include
amounts paid by the eligible child care
employer to provide and maintain a group health
plan (as defined in section 5000(b)(1)), but
only to the extent that such amounts are
excluded from the gross income of employees by
reason of section 106(a).
``(ii) Allocation rules.--For purposes of
this section, amounts treated as wages under
clause (i) shall be treated as paid with
respect to any eligible employee (and with
respect to any period) to the extent that such
amounts are properly allocable to such employee
(and to such period) in such manner as the
Secretary may prescribe. Except as otherwise
provided by the Secretary, such allocation
shall be treated as properly made if made on
the basis of being pro rata among periods of
coverage.
``(3) Other terms.--Any term used in this section which is
also used in this chapter or chapter 22 shall have the same
meaning as when used in such chapter.
``(4) Denial of double benefit.--For purposes of chapter 1,
the gross income of the employer, for the taxable year which
includes the last day of any calendar quarter with respect to
which a credit is allowed under this section, shall be
increased by the amount of such credit.
``(5) Election to not take certain wages into account.--
This section shall not apply to so much of the qualified child
care wages paid by an eligible child care employer as such
employer elects (at such time and in such manner as the
Secretary may prescribe) to not take into account for purposes
of this section.
``(6) Certain governmental employers.--No credit shall be
allowed under this section to the Government of the United
States or to any agency or instrumentality thereof. The
preceding sentence shall not apply to any organization
described in section 501(c)(1) and exempt from tax under
section 501(a).
``(7) Coordination with certain programs.--
``(A) In general.--This section shall not apply to
so much of the qualified child care wages paid by an
eligible child care employer as are taken into account
as payroll costs in connection with--
``(i) a covered loan under section 7(a)(37)
or 7A of the Small Business Act,
``(ii) a grant under section 324 of the
Economic Aid to Hard-Hit Small Businesses, Non-
Profits, and Venues Act, or
``(iii) a restaurant revitalization grant
under section 5003 of the American Rescue Plan
Act of 2021.
``(B) Application where ppp loans not forgiven.--
The Secretary shall issue guidance providing that
payroll costs paid during the covered period shall not
fail to be treated as qualified child care wages under
this section by reason of subparagraph (A)(i) to the
extent that--
``(i) a covered loan of the taxpayer under
section 7(a)(37) of the Small Business Act is
not forgiven by reason of a decision under
section 7(a)(37)(J) of such Act, or
``(ii) a covered loan of the taxpayer under
section 7A of the Small Business Act is not
forgiven by reason of a decision under section
7A(g) of such Act.
Terms used in the preceding sentence which are also
used in section 7A(g) or 7(a)(37)(J) of the Small
Business Act shall, when applied in connection with
either such section, have the same meaning as when used
in such section, respectively.
``(8) Aggregation rule.--All persons treated as a single
employer under subsection (a) or (b) of section 52, or
subsection (m) or (o) of section 414, shall be treated as one
employer for purposes of this section.
``(9) Third party payors.--Any credit allowed under this
section shall be treated as a credit described in section
3511(d)(2).
``(10) Inflation adjustment.--In the case of any taxable
year beginning after December 31, 2022, the $2,500 amount in
subsection (b)(1) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2021' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
If any amount as adjusted under the preceding sentence is not a
multiple of $100, such amount shall be rounded to the nearest
multiple of $100.
``(h) Regulations.--The Secretary shall prescribe such regulations
or other guidance as may be necessary to carry out the purposes of this
section, including--
``(1) regulations or other guidance to prevent the
avoidance of the purposes of the limitations under this
section,
``(2) regulations or other guidance to minimize compliance
and record-keeping burdens under this section,
``(3) regulations or other guidance providing for waiver of
penalties for failure to deposit amounts in anticipation of the
allowance of the credit allowed under this section,
``(4) regulations or other guidance for recapturing the
benefit of credits determined under this section in cases where
there is a subsequent adjustment to the credit determined under
subsection (a),
``(5) regulations or other guidance to permit the
advancement of the credit determined under subsection (a), and
``(6) regulations or other guidance for applying subsection
(f) with respect to eligible employees not paid at a single
rate of pay.''.
(b) Refunds.--Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``3135,'' after ``3134,''.
(c) Clerical Amendment.--The table of sections for subchapter D of
chapter 21 is amended by adding at the end the following:
``Sec. 3135. Payroll credit for certain wages paid to child care
workers.''.
(d) Effective Date.--The amendments made by this section shall
apply to calendar quarters beginning after December 31, 2021.
SEC. 137302. CREDIT FOR CAREGIVER EXPENSES.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
is amended by inserting after section 25D the following new section:
``SEC. 25E. CREDIT FOR CAREGIVER EXPENSES.
``(a) Allowance of Credit.--In the case of an individual for whom
there are 1 or more qualified care recipients, there shall be allowed
as a credit against the tax imposed by this chapter for the taxable
year an amount equal to 50 percent of the qualified expenses paid or
incurred by such individual during the taxable year (and not
compensated for by insurance or otherwise).
``(b) Qualified Care Recipient.--For purposes of this section--
``(1) In general.--The term `qualified care recipient'
means, with respect to any taxable year, any individual who--
``(A) is the spouse of the taxpayer, or any other
person who bears a relationship to the taxpayer
described in any of subparagraphs (A) through (H) of
section 152(d)(2),
``(B) has been certified, before the due date for
filing the return of tax for the taxable year, by a
licensed health care practitioner (as defined in
section 7702B(c)(4)) as being an individual with long-
term care needs (as defined in paragraph (3)) for a
period--
``(i) which is expected to be at least 180
consecutive days, and
``(ii) a portion of which occurs within the
taxable year, and
``(C) resides in a personal residence and not an
institutional care facility.
``(2) Period for making certification.--Notwithstanding
paragraph (1)(B), a certification shall not be treated as valid
unless it is made within the 18-month period ending on such due
date (or such other period as the Secretary prescribes).
``(3) Individuals with long-term care needs.--For purposes
of this subsection, the term `individual with long-term care
needs' means any individual who meets the requirements of any
of the following subparagraphs:
``(A) The individual is at least 6 years of age
and--
``(i) is unable to perform (without
substantial assistance from another individual)
at least 2 activities of daily living (as
defined in section 7702B(c)(2)(B)) due to a
loss of functional capacity, or
``(ii) requires substantial supervision to
protect such individual from threats to health
and safety due to severe cognitive impairment
and is unable to perform, without reminding or
cuing assistance, at least 1 activity of daily
living (as so defined) or, to the extent
provided in regulations prescribed by the
Secretary (in consultation with the Secretary
of Health and Human Services), is unable to
engage in age appropriate activities.
``(B) The individual is at least 2 but not 6 years
of age and is unable, due to a loss of functional
capacity, to perform (without substantial assistance
from another individual) at least 2 of the following
activities:
``(i) Eating.
``(ii) Transferring.
``(iii) Mobility.
``(C) The individual is under 2 years of age and
requires specific durable medical equipment by reason
of a severe health condition or requires a skilled
practitioner trained to address the individual's
condition to be available if the individual's parents
or guardians are absent.
``(4) Institutional care facility.--For purposes of
paragraph (1)(C), an institutional care facility (including two
or more places, establishments, or institutions owned by the
same legal entity) includes any congregate, protected living
residential arrangement that provides or coordinates personal
or health care services, including assistance with the
activities of daily living and social care, for two or more
adults who are aged, infirm, or disabled
``(c) Qualified Expenses.--For purposes of this section--
``(1) In general.--The term `qualified expenses' means
expenses for goods, services, and supports described in
paragraph (2) which--
``(A) assist a qualified care recipient with
accomplishing activities of daily living (as defined in
section 7702B(c)(2)(B)) and instrumental activities of
daily living (as defined in section 1915(k)(6)(F) of
the Social Security Act), and
``(B) are provided solely for use by such qualified
care recipient.
``(2) Items described.--The goods, services, and supports
described in this paragraph are--
``(A) human assistance, supervision, cuing, and
standby assistance,
``(B) health maintenance tasks (such as medication
management),
``(C) respite care,
``(D) assistive technologies and devices (including
remote health monitoring),
``(E) accessibility modifications of the qualified
care recipient's residence,
``(F) counseling, support groups, or training
relating to caring for a qualified care recipient, and
``(G) any other items which directly relate to the
health and safety of a qualified care recipient, as
determined by the Secretary after consultation with the
Secretary of Health and Human Services.
``(3) Dollar limitation.--The amount taken into account as
qualified expenses for any taxable year shall not exceed
$4,000.
``(4) Denial of double benefit.--Amounts taken into account
for purposes of section 21, 129, 213, or 223(f), or such other
circumstances as may be provided by the Secretary, shall not be
taken into account as qualified expenses.
``(5) Documentation requirement.--An expense shall not be
treated as a qualified expense unless the taxpayer
substantiates such expense under such regulations or guidance
as the Secretary shall provide.
``(d) Credit Phaseout.--The 50 percent rate under subsection (a)
shall be reduced by 1 percentage point for every $2,500 or fraction
thereof by which the taxpayer's adjusted gross income exceeds $75,000.
``(e) Special Rules.--For purposes of this section--
``(1) Payments to related individuals.--Rules similar to
the rules of section 21(e)(6) shall apply.
``(2) Licensed health care practitioner.--
``(A) In general.--The licensed health care
practitioner making the certification for purposes of
subsection (b)(1)(B)--
``(i) shall not be related (within the
meaning of section 51(i)(1)) to the taxpayer or
the qualified care recipient, or have a
conflict of interest (as determined under
regulations provided by the Secretary) with
respect to the taxpayer or the qualified care
recipient,
``(ii) shall be licensed and eligible under
applicable State law to certify limitations in
performing activities of daily living, and
``(iii) shall be a participant in the
Medicaid program, pursuant to sections
1902(a)(77) and 1932(d)(6) of the Social
Security Act, or the State Children's Health
Insurance Program under section 2107(e)(1)(G)
of such Act.
``(B) Identification requirement.--
``(i) In general.--No credit shall be
allowed with respect to any qualified care
recipient unless the taxpayer includes the name
and specified provider identification number of
such licensed health care practitioner on the
return of tax for the taxable year.
``(ii) Specified provider identification
number.--The term `specified provider
identification number' means a valid National
Provider Identifier as authorized in section
1173 of the Social Security Act.
``(3) Individual may not be claimed by more than 1
taxpayer.--An individual shall be treated as a qualified care
recipient with respect to only 1 taxpayer, as determined by the
Secretary, for any taxable year.
``(4) Identification requirement.--No credit shall be
allowed with respect to any qualified care recipient unless the
taxpayer includes the name and taxpayer identification number
of the qualified care recipient on the return of tax for the
taxable year.
``(f) Termination.--No credit shall be allowed under this section
for any taxable year beginning after December 31, 2025.''.
(b) Math Error Authority.--Section 6213(g)(2), as amended by the
preceding provisions of this Act, is amended by striking ``and'' at the
end of subparagraph (T), by striking the period at the end of
subparagraph (U) and inserting ``, and'', and by inserting after
subparagraph (U) the following new subparagraph:
``(V) an omission of a correct TIN required under
section 25E(e)(4) or a correct specified provider
identification number required under section
25E(e)(2)(B).''.
(c) Clerical Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 is amended by inserting after the
item relating to section 25D the following new item:
``Sec. 25E. Credit for caregiver expenses.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
PART 4--EARNED INCOME TAX CREDIT
SEC. 137401. CERTAIN IMPROVEMENTS TO THE EARNED INCOME TAX CREDIT MADE
PERMANENT.
(a) Decrease in Minimum Age Requirement.--
(1) In general.--Section 32(c)(1)(A)(ii)(II) is amended by
striking ``age 25'' and inserting ``the applicable minimum
age''.
(2) Applicable minimum age.--Section 32(c) is amended by
adding at the end the following new paragraph:
``(5) Applicable minimum age.--
``(A) In general.--The term `applicable minimum
age' means--
``(i) except as otherwise provided in this
subparagraph, age 19,
``(ii) in the case of a specified student
(other than a qualified former foster youth or
a qualified homeless youth), age 24, and
``(iii) in the case of a qualified former
foster youth or a qualified homeless youth, age
18.
``(B) Specified student.--For purposes of this
paragraph, the term `specified student' means, with
respect to any taxable year, an individual who is an
eligible student (as defined in section 25A(b)(3))
during at least 5 calendar months during the taxable
year.
``(C) Qualified former foster youth.--For purposes
of this paragraph, the term `qualified former foster
youth' means an individual who--
``(i) on or after the date that such
individual attained age 14, was in foster care
provided under the supervision or
administration of an entity administering (or
eligible to administer) a plan under part B or
part E of title IV of the Social Security Act
(without regard to whether Federal assistance
was provided with respect to such child under
such part E), and
``(ii) provides (in such manner as the
Secretary may provide) consent for entities
which administer a plan under part B or part E
of title IV of the Social Security Act to
disclose to the Secretary information related
to the status of such individual as a qualified
former foster youth.
``(D) Qualified homeless youth.--For purposes of
this paragraph, the term `qualified homeless youth'
means, with respect to any taxable year, an individual
who certifies, in a manner as provided by the
Secretary, that such individual is either an
unaccompanied youth who is a homeless child or youth,
or is unaccompanied, at risk of homelessness, and self-
supporting.''.
(b) Elimination of Maximum Age for Credit.--Section
32(c)(1)(A)(ii)(II) is amended by striking ``but not attained age 65''.
(c) Increase in Credit and Phaseout Percentages.--The table
contained in section 32(b)(1) is amended by striking ``7.65'' each
place it appears therein and inserting ``15.3''.
(d) Increase in Earned Income and Phaseout Amounts.--
(1) In general.--The table contained in section 32(b)(2)(A)
is amended--
(A) by striking ``$4,220'' and inserting
``$9,820'', and
(B) by striking ``$5,280'' and inserting
``$11,610''.
(2) Application of inflation adjustment.--Section 32(j)(1)
is amended--
(A) by striking ``(2021 in the case of the dollar
amount in subsection (i)(1))'' and inserting ``(2021 in
the case of the $9,820 and $11,610 amounts in
subsection (b)(2)(A) and the $10,000 amount in
subsection (i)(1))'',
(B) in subparagraph (B)(i), by inserting ``(other
than the $9,820 and $11,610 amounts)'' after
``subsection (b)(2)(A)'', and
(C) in subparagraph (B)(iii), by inserting ``the
$9,820 and $11,610 amounts in subsection (b)(2)(A)
and'' before ``the $10,000 amount in subsection
(i)(1)''.
(e) Section 32, as amended by subsection (f), is amended by adding
at the end the following new subsection:
``(n) Election to Determine Earned Income Based on Prior Taxable
Year.--
``(1) In general.--In the case of a taxpayer whose earned
income for any taxable year is less than the earned income of
such taxpayer for the preceding taxable year, if such taxpayer
elects (at such time and in such manner as the Secretary may
provide) the application of this subsection for such taxable
year, the earned income of such taxpayer for such taxable year
shall be treated for purposes of this section as being equal to
the earned income of such taxpayer for such preceding taxable
year.
``(2) Joint returns.--For purposes of this subsection, in
the case of a joint return, the earned income of the taxpayer
for the preceding taxable year shall be the sum of the earned
income of each spouse for the preceding taxable year.
``(3) Treatment as mathematical or clerical error.--In the
case of a taxpayer described in paragraph (1) who makes the
election described in such paragraph, the use on the return for
purposes of this section of an amount of earned income for the
preceding taxable year which differs from the amount of such
earned income as shown in the electronic files of the Internal
Revenue Service shall be treated as a mathematical or clerical
error for purposes of section 6213.
``(4) Treatment of references.--Any provision of this title
which defines or determines earned income by reference to this
section shall be applied without regard to this subsection
unless such provision specifically provides otherwise.''.
(f) Repeal of Temporary Provisions.--Section 32 is amended by
striking subsection (n).
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 137402. FUNDS FOR ADMINISTRATION OF EARNED INCOME TAX CREDITS IN
THE TERRITORIES.
(a) Puerto Rico.--Section 7530(a)(1) is amended by striking
``plus'' at the end of subparagraph (A), by striking the period at the
end of subparagraph (B) and inserting ``, plus'', and by adding at the
end the following new subparagraph:
``(C) reasonable administrative costs associated
with the provision of the earned income tax credit not
in excess of $4,000,000.''.
(b) Possessions With Mirror Code Tax Systems.--Section 7530(b)(1)
is amended by striking ``plus'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and inserting ``,
plus'', and by adding at the end the following new subparagraph:
``(C) reasonable administrative costs associated
with the provision of the earned income tax credit not
in excess of $200,000.''.
(c) American Samoa.--Section 7530(c)(1) is amended by striking
``plus'' at the end of subparagraph (A), by striking the period at the
end of subparagraph (B) and inserting ``, plus'', and by adding at the
end the following new subparagraph:
``(C) reasonable administrative costs associated
with the provision of the earned income tax credit not
in excess of $200,000.''.
(d) Effective Date.--The amendments made by this section shall
apply to payments made for calendar years beginning after December 31,
2021.
PART 5--EXPANDING ACCESS TO HEALTH COVERAGE AND LOWERING COSTS
SEC. 137501. IMPROVE AFFORDABILITY AND REDUCE PREMIUM COSTS OF HEALTH
INSURANCE FOR CONSUMERS.
(a) Increase in Applicable Percentage Made Permanent.--Section
36B(b)(3)(A) is amended to read as follows:
``(A) Applicable percentage.--The applicable
percentage for any taxable year shall be the percentage
such that the applicable percentage for any taxpayer
whose household income is within an income tier
specified in the following table shall increase, on a
sliding scale in a linear manner, from the initial
premium percentage to the final premium percentage
specified in such table for such income tier:
------------------------------------------------------------------------
``In the case of household income
(expressed as a percent of poverty The initial The final
line) within the following income premium premium
tier: percentage is-- percentage is--
------------------------------------------------------------------------
Up to 150.0 percent.................. 0 0
150.0 percent up to 200.0 percent.... 0 2
200.0 percent up to 250.0 percent.... 2 4
250.0 percent up to 300.0 percent.... 4 6
300.0 percent up to 400.0 percent.... 6 8.5
400.0 percent and higher............. 8.5 8.5''.
------------------------------------------------------------------------
(b) Credit Allowed to Taxpayers Whose Household Income Exceeds 400
Percent of the Poverty Line.--
(1) In general.--Section 36B(c)(1)(A) is amended by
striking ``but does not exceed 400 percent''.
(2) Conforming amendment.--Section 36B(c)(1) is amended by
striking subparagraph (E).
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 137502. MODIFICATION OF EMPLOYER-SPONSORED COVERAGE AFFORDABILITY
TEST IN HEALTH INSURANCE PREMIUM TAX CREDIT.
(a) In General.--Section 36B(c)(2)(C) is amended--
(1) in clause (i)(II), by striking ``9.5 percent'' and
inserting ``8.5 percent'', and
(2) by striking clause (iv).
(b) Qualified Small Employer Health Reimbursement Arrangements.--
Section 36B(c)(4) is amended--
(1) in subparagraph (C)(ii), by striking ``9.5 percent''
and inserting ``8.5 percent'', and
(2) by striking subparagraph (F).
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 137503. TREATMENT OF LUMP-SUM SOCIAL SECURITY BENEFITS IN
DETERMINING HOUSEHOLD INCOME.
(a) In General.--Section 36B(d)(2) is amended by adding at the end
the following new subparagraph:
``(C) Exclusion of portion of lump-sum social
security benefits.--
``(i) In general.--The term `modified
adjusted gross income' shall not include so
much of any lump-sum social security benefit
payment as is attributable to months ending
before the beginning of the taxable year.
``(ii) Lump-sum social security benefit
payment.--For purposes of this subparagraph,
the term `lump-sum social security benefit
payment' means any payment of social security
benefits (as defined in section 86(d)(1)) which
constitutes more than 1 month of such benefits.
``(iii) Election to include excludable
amount.--With respect to any taxable year
beginning on or after the termination date (as
defined in subsection (h)(2)), a taxpayer may
elect (at such time and in such manner as the
Secretary may provide) to have this
subparagraph not apply for such taxable
year.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2021.
SEC. 137504. TEMPORARY EXPANSION OF HEALTH INSURANCE PREMIUM TAX
CREDITS FOR CERTAIN LOW-INCOME POPULATIONS.
(a) In General.--Section 36B is amended by redesignating subsection
(h) as subsection (i) and by inserting after subsection (g) the
following new subsection:
``(h) Certain Temporary Rules Beginning in 2022.--
``(1) In general.--With respect to any taxable year
beginning after December 31, 2021, and before the termination
date--
``(A) Eligibility for credit not limited based on
income.--Section 36B(c)(1)(A) shall be disregarded in
determining whether a taxpayer is an applicable
taxpayer.
``(B) Credit allowed to certain low-income
employees offered employer-provided coverage.--
Subclause (II) of subsection (c)(2)(C)(i) shall not
apply if the taxpayer's household income does not
exceed 138 percent of the poverty line for a family of
the size involved. Subclause (II) of subsection
(c)(2)(C)(i) shall also not apply to an individual
described in the last sentence of such subsection if
the taxpayer's household income does not exceed 138
percent of the poverty line for a family of the size
involved.
``(C) Credit allowed to certain low-income
employees offered qualified small employer health
reimbursement arrangements.--A qualified small employer
health reimbursement arrangement shall not be treated
as constituting affordable coverage for an employee (or
any spouse or dependent of such employee) for any
months of a taxable year if the employee's household
income for such taxable year does not exceed 138
percent of the poverty line for a family of the size
involved.
``(D) Limitations on recapture.--
``(i) In general.--In the case of a
taxpayer whose household income is less than
200 percent of the poverty line for the size of
the family involved for the taxable year, the
amount of the increase under subsection
(f)(2)(A) shall in no event exceed $300 (one-
half of such amount in the case of a taxpayer
whose tax is determined under section 1(c) for
the taxable year).
``(ii) Limitation on increase for certain
non-filers.--In the case of any taxpayer who
would not be required to file a return of tax
for the taxable year but for any requirement to
reconcile advance credit payments under
subsection (f), if an Exchange established
under title I of the Patient Protection and
Affordable Care Act has determined that--
``(I) such taxpayer is eligible for
advance payments under section 1412 of
such Act for any portion of such
taxable year, and
``(II) such taxpayer's household
income for such taxable year is
projected to not exceed 138 percent of
the poverty line for a family of the
size involved,
subsection (f)(2)(A) shall not apply to such
taxpayer for such taxable year and such
taxpayer shall not be required to file such
return of tax.
``(iii) Information provided by exchange.--
The information required to be provided by an
Exchange to the Secretary and to the taxpayer
under subsection (f)(3) shall include such
information as is necessary to determine
whether such Exchange has made the
determinations described in subclauses (I) and
(II) of clause (ii) with respect to such
taxpayer.
``(2) Termination date.--For purposes of this subsection,
the term `termination date' means the later of--
``(A) January 1, 2025, or
``(B) the date on which the Secretary of Health and
Human Services makes a written certification to the
Secretary that the Secretary of Health and Human
Services has fully implemented the program described in
section 1948 of the Social Security Act (relating to
Federal Medicaid program to close coverage gap in
nonexpansion States).''.
(b) Employer Shared Responsibility Provision Not Applicable With
Respect to Certain Low-income Taxpayers Receiving Premium Assistance.--
Section 4980H(c)(3) is amended to read as follows:
``(3) Applicable premium tax credit and cost-sharing
reduction.--
``(A) In general.--The term `applicable premium tax
credit and cost-sharing reduction' means--
``(i) any premium tax credit allowed under
section 36B,
``(ii) any cost-sharing reduction under
section 1402 of the Patient Protection and
Affordable Care Act, and
``(iii) any advance payment of such credit
or reduction under section 1412 of such Act.
``(B) Exception with respect to certain low-income
taxpayers.--Such term shall not include any premium tax
credit, cost-sharing reduction, or advance payment
otherwise described in subparagraph (A) if such credit,
reduction, or payment is allowed or paid for a taxable
year of an employee (beginning after December 31, 2021,
and before the termination date, as defined in section
36B(h)(2)) with respect to which--
``(i) an Exchange established under title I
of the Patient Protection and Affordable Care
Act has determined that such employee's
household income for such taxable year is
projected to not exceed 138 percent of the
poverty line for a family of the size involved,
or
``(ii) such employee's household income for
such taxable year does not exceed 138 percent
of the poverty line for a family of the size
involved.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 137505. ENSURING AFFORDABILITY OF COVERAGE FOR CERTAIN LOW-INCOME
POPULATIONS.
(a) Reducing Cost Sharing Under Qualified Health Plans.--Section
1402 of the Patient Protection and Affordable Care Act (42 U.S.C.
18071) is amended--
(1) in subsection (b)--
(A) in paragraph (2), by inserting ``(or, with
respect to plan years 2023 and 2024, whose household
income does not exceed 400 percent of the poverty line
for a family of the size involved)'' before the period;
and
(B) in the matter following paragraph (2), by
adding at the end the following new sentence: ``In the
case of an individual with a household income of less
than 138 percent of the poverty line for a family of
the size involved for any month occurring during the
period beginning on January 1, 2022, and ending on
December 31, 2022, such individual shall, for such
month and for each succeeding month during such period,
be treated as having household income equal to 100
percent for purposes of applying this section.''; and
(2) in subsection (c)--
(A) in paragraph (1)(A), in the matter preceding
clause (i), by inserting ``, with respect to eligible
insureds (other than, with respect to plan years 2023
and 2024, specified enrollees (as defined in paragraph
(6)(C))),'' after ``first be achieved'';
(B) in paragraph (2), in the matter preceding
subparagraph (A), by inserting ``with respect to
eligible insureds (other than, with respect to plan
years 2023 and 2024, specified enrollees)'' after
``under the plan'';
(C) in paragraph (3)--
(i) in subparagraph (A), by striking ``this
subsection'' and inserting ``paragraph (1) or
(2)''; and
(ii) in subparagraph (B), by striking
``this section'' and inserting ``paragraphs (1)
and (2)''; and
(D) by adding at the end the following new
paragraph:
``(6) Special rule for specified enrollees.--
``(A) In general.--The Secretary shall establish
procedures under which the issuer of a qualified health
plan to which this section applies shall reduce cost-
sharing under the plan with respect to months occurring
during plan years 2023 and 2024 for enrollees who are
specified enrollees (as defined in subparagraph (C)) in
a manner sufficient to increase the plan's share of the
total allowed costs of benefits provided under the plan
to 99 percent of such costs.
``(B) Methods for reducing cost sharing.--
``(i) In general.--An issuer of a qualified
health plan making reductions under this
paragraph shall notify the Secretary of such
reductions and the Secretary shall, out of
funds made available under clause (ii), make
periodic and timely payments to the issuer
equal to 12 percent of the total allowed costs
of benefits provided under each such plan to
specified enrollees during plan years 2023 and
2024.
``(ii) Appropriation.--There are
appropriated, out of any monies in the Treasury
not otherwise appropriated, such sums as may be
necessary to the Secretary for purposes of
making payments under clause (i).
``(C) Specified enrollee defined.--For purposes of
this section, the term `specified enrollee' means, with
respect to a month occurring during a plan year, an
eligible insured with a household income of less than
138 percent of the poverty line for a family of the
size involved during such month. Such insured shall be
deemed to be a specified enrollee for each succeeding
month in such plan year.''.
(b) Open Enrollments Applicable to Certain Lower-income
Populations.--Section 1311(c) of the Patient Protection and Affordable
Care Act (42 U.S.C. 18031(c)) is amended--
(1) in paragraph (6)--
(A) in subparagraph (C), by striking at the end
``and'';
(B) in subparagraph (D), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(E) with respect to a qualified health plan with
respect to which section 1402 applies, for months
occurring during the period beginning on January 1,
2022, and ending on December 31, 2024, enrollment
periods described in subparagraph (A) of paragraph (8)
for individuals described in subparagraph (B) of such
paragraph.''; and
(2) by adding at the end the following new paragraph:
``(8) Special enrollment period for certain low-income
populations.--
``(A) In general.--The enrollment period described
in this paragraph is, in the case of an individual
described in subparagraph (B), the continuous period
beginning on the first day that such individual is so
described.
``(B) Individual described.--For purposes of
subparagraph (A), an individual described in this
subparagraph is an individual--
``(i) with a household income of less than
138 percent of the poverty line for a family of
the size involved; and
``(ii) who is not eligible for minimum
essential coverage (as defined in section
5000A(f) of the Internal Revenue Code of 1986),
other than for coverage described in any of
subparagraphs (B) through (E) of paragraph (1)
of such section.''.
(c) Additional Benefits for Certain Low-income Individuals for Plan
Year 2024.--Section 1301(a) of the Patient Protection and Affordable
Care Act (42 U.S.C. 18021(a)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C)(iv), by striking the period
and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(D) provides, with respect to a plan offered in
the silver level of coverage to which section 1402
applies during plan year 2024, for benefits described
in paragraph (5) in the case of an individual who, for
a month during such plan year, has a household income
of less than 138 percent of the poverty line for a
family of the size involved, and who is eligible to
receive cost-sharing reductions under section 1402.'';
and
(2) by adding at the end the following new paragraph:
``(5) Additional benefits for certain low-income
individuals for plan year 2024.--
``(A) In general.--For purposes of paragraph
(1)(D), the benefits described in this paragraph to be
provided by a qualified health plan are benefits
consisting of non-emergency medical transportation
services and services described in subsection (a)(4)(C)
of section 1905 of the Social Security Act, without any
restriction on the choice of a qualified provider from
whom such an individual so enrolled in such plan may
receive such services described in such subsection, and
without any imposition of cost sharing, which are not
otherwise provided under such plan as part of the
essential health benefits package described in section
1302(a).
``(B) Payments for additional benefits.--
``(i) In general.--An issuer of a qualified
health plan making payments for services
described in subparagraph (A) furnished to
individuals described in paragraph (1)(D)
during plan year 2024 shall notify the
Secretary of such payments and the Secretary
shall, out of funds made available under clause
(ii), make periodic and timely payments to the
issuer equal to payments for such services so
furnished.
``(ii) Appropriation.--There is
appropriated, out of any monies in the Treasury
not otherwise appropriated, such sums as may be
necessary to the Secretary for purposes of
making payments under clause (i).''.
(d) Education and Outreach Activities.----
(1) In general.--Section 1321(c) of the Patient Protection
and Affordable Care Act (42 U.S.C. 18041(c)) is amended by
adding at the end the following new paragraph:
``(3) Outreach and educational activities.--
``(A) In general.--In the case of an Exchange
established or operated by the Secretary within a State
pursuant to this subsection, the Secretary shall carry
out outreach and educational activities for purposes of
informing individuals described in section
1902(a)(10)(A)(i)(VIII) of the Social Security Act who
reside in States that have not expended amounts under a
State plan (or waiver of such plan) under title XIX of
such Act for all such individuals about qualified
health plans offered through the Exchange, including by
informing such individuals of the availability of
coverage under such plans and financial assistance for
coverage under such plans. Such outreach and
educational activities shall be provided in a manner
that is culturally and linguistically appropriate to
the needs of the populations being served by the
Exchange (including hard-to-reach populations, such as
racial and sexual minorities, limited English
proficient populations, individuals residing in areas
where the unemployment rates exceeds the national
average unemployment rate, individuals in rural areas,
veterans, and young adults).
``(B) Limitation on use of funds.--No funds
appropriated under this paragraph shall be used for
expenditures for promoting non-ACA compliant health
insurance coverage.
``(C) Non-aca compliant health insurance
coverage.--For purposes of subparagraph (B):
``(i) The term `non-ACA compliant health
insurance coverage' means health insurance
coverage, or a group health plan, that is not a
qualified health plan.
``(ii) Such term includes the following:
``(I) An association health plan.
``(II) Short-term limited duration
insurance.
``(D) Funding.--There are appropriated, out of any
monies in the Treasury not otherwise appropriated,
$15,000,000 for fiscal year 2022, and $30,000,000 for
each of fiscal years 2023 and 2024, to carry out this
paragraph. Funds appropriated under this subparagraph
shall remain available until expended.''.
(2) Navigator program.--Section 1311(i)(6) of the Patient
Protection and Affordable Care Act (42 U.S.C. 18031(i)(6)) is
amended--
(A) by striking ``Funding.--Grants under'' and
inserting ``Funding.--
``(A) State exchanges.--Grants under''; and
(B) by adding at the end the following new
subparagraph:
``(B) Federal exchanges.--For purposes of carrying
out this subsection, with respect to an Exchange
established and operated by the Secretary within a
State pursuant to section 1321(c), the Secretary shall
obligate $10,000,000 out of amounts collected through
the user fees on participating health insurance issuers
pursuant to section 156.50 of title 45, Code of Federal
Regulations (or any successor regulations) for fiscal
year 2022, and $20,000,000 for each of fiscal years
2023 and 2024. Such amount so obligated for a fiscal
year shall remain available until expended.''.
SEC. 137506. ESTABLISHING A HEALTH INSURANCE AFFORDABILITY FUND.
(a) In General.--Subtitle D of title I of the Patient Protection
and Affordable Care Act is amended by inserting after part 5 (42 U.S.C.
18061 et seq.) the following new part:
``PART 6--IMPROVE HEALTH INSURANCE AFFORDABILITY FUND
``SEC. 1351. ESTABLISHMENT OF PROGRAM.
``There is hereby established the `Improve Health Insurance
Affordability Fund' to be administered by the Secretary of Health and
Human Services, acting through the Administrator of the Centers for
Medicare & Medicaid Services (in this section referred to as the
`Administrator'), to provide funding, in accordance with this part, to
the 50 States and the District of Columbia (each referred to in this
section as a `State') beginning on January 1, 2023, for the purposes
described in section 1352.
``SEC. 1352. USE OF FUNDS.
``(a) In General.--A State shall use the funds allocated to the
State under this part for one of the following purposes:
``(1) To provide reinsurance payments to health insurance
issuers with respect to individuals enrolled under individual
health insurance coverage (other than through a plan described
in subsection (b)) offered by such issuers.
``(2) To provide assistance (other than through payments
described in paragraph (1)) to reduce out-of-pocket costs, such
as copayments, coinsurance, premiums, and deductibles, of
individuals enrolled under qualified health plans offered on
the individual market through an Exchange and of individuals
enrolled under standard health plans offered through a basic
health program established under section 1331.
``(b) Exclusion of Certain Grandfathered Plans, Transitional Plans,
Student Health Plans, and Excepted Benefits.--For purposes of
subsection (a), a plan described in this subsection is the following:
``(1) A grandfathered health plan (as defined in section
1251).
``(2) A plan (commonly referred to as a `transitional
plan') continued under the letter issued by the Centers for
Medicare & Medicaid Services on November 14, 2013, to the State
Insurance Commissioners outlining a transitional policy for
coverage in the individual and small group markets to which
section 1251 does not apply, and under the extension of the
transitional policy for such coverage set forth in the
Insurance Standards Bulletin Series guidance issued by the
Centers for Medicare & Medicaid Services on March 5, 2014,
February 29, 2016, February 13, 2017, April 9, 2018, March 25,
2019, January 31, 2020, and January 19, 2021, or under any
subsequent extensions thereof.
``(3) Student health insurance coverage (as defined in
section 147.145 of title 45, Code of Federal Regulations, or
any successor regulation).
``(4) Excepted benefits (as defined in section 2791(c) of
the Public Health Service Act).
``SEC. 1353. STATE ELIGIBILITY AND APPROVAL; DEFAULT SAFEGUARD.
``(a) Encouraging State Options for Allocations.--
``(1) In general.--Subject to subsection (b), to be
eligible for an allocation of funds under this part for a year
(beginning with 2023), a State shall submit to the
Administrator an application at such time (but, in the case of
allocations for 2023, not later than 120 days after the date of
the enactment of this part and, in the case of allocations for
a subsequent year, not later than January 1 of the previous
year) and in such form and manner as specified by the
Administrator containing--
``(A) a description of how the funds will be used;
and
``(B) such other information as the Administrator
may require.
``(2) Automatic approval.--An application so submitted is
approved (as outlined in the terms of the plan) unless the
Administrator notifies the State submitting the application,
not later than 90 days after the date of the submission of such
application, that the application has been denied for not being
in compliance with any requirement of this part and of the
reason for such denial.
``(3) 5-year application approval.--If an application of a
State is approved for a purpose described in section 1352 for a
year, such application shall be treated as approved for such
purpose for each of the subsequent 4 years.
``(4) Oversight authority and authority to revoke
approval.--
``(A) Oversight.--The Secretary may conduct
periodic reviews of the use of funds provided to a
State under this section, with respect to a purpose
described in section 1352, to ensure the State uses
such funds for such purpose and otherwise complies with
the requirements of this section.
``(B) Revocation of approval.--The approval of an
application of a State, with respect to a purpose
described in section 1352, may be revoked if the State
fails to use funds provided to the State under this
section for such purpose or otherwise fails to comply
with the requirements of this section.
``(b) Default Federal Safeguard for 2023 and 2024 for Certain
States.--
``(1) In general.--For 2023 and 2024, in the case of a
State described in paragraph (5), with respect to such year,
the State shall not be eligible to submit an application under
subsection (a), and the Administrator, in consultation with the
applicable State authority, shall from the amount calculated
under paragraph (3) for such year, carry out the purpose
described in paragraph (2) in such State for such year.
``(2) Specified use.--The amount described in paragraph
(3), with respect to a State described in paragraph (5) for
2023 or 2024, shall be used to carry out the purpose described
in section 1352(a)(1) in such State for such year, as
applicable, by providing reinsurance payments to health
insurance issuers with respect to attachment range claims (as
defined in section 1354(b)(2), using the dollar amounts
specified in subparagraph (B) of such section for such year) in
an amount equal to, subject to paragraph (4), the percentage
(specified for such year by the Secretary under such
subparagraph) of the amount of such claims.
``(3) Amount described.--The amount described in this
paragraph, with respect to 2023 or 2024, is the amount equal to
the total sum of amounts that the Secretary would otherwise
estimate under section 1354(b)(2)(A)(i) for such year for each
State described in paragraph (5) for such year, as applicable,
if each such State were not so described for such year.
``(4) Adjustment.--For purposes of this subsection, the
Secretary may apply a percentage under paragraph (3) with
respect to a year that is less than the percentage otherwise
specified in section 1354(b)(2)(B) for such year, if the cost
of paying the total eligible attachment range claims for States
described in paragraph (5) for such year at such percentage
otherwise specified would exceed the amount calculated under
paragraph (3) for such year.
``(5) State described.--A State described in this
paragraph, with respect to years 2023 and 2024, is a State
that, as of January 1 of 2022 or 2023, respectively, was not
expending amounts under the State plan (or waiver of such plan)
for all individuals described in section
1902(a)(10)(A)(i)(VIII) during such year.
``SEC. 1354. ALLOCATIONS.
``(a) Appropriation.--For the purpose of providing allocations for
States under subsection (b) and payments under section 1353(b) there is
appropriated, out of any money in the Treasury not otherwise
appropriated, $10,000,000,000 for 2023 and each subsequent year.
``(b) Allocations.--
``(1) Payment.--
``(A) In general.--From amounts appropriated under
subsection (a) for a year, the Secretary shall, with
respect to a State not described in section 1353(b) for
such year and not later than the date specified under
subparagraph (B) for such year, allocate for such State
the amount determined for such State and year under
paragraph (2).
``(B) Specified date.--For purposes of subparagraph
(A), the date specified in this subparagraph is--
``(i) for 2023, the date that is 90 days
after the date of the enactment of this part;
and
``(ii) for 2024 or a subsequent year,
January 1 of the previous year.
``(C) Notifications of allocation amounts.--For
2024 and each subsequent year, the Secretary shall
notify each State of the amount determined for such
State under paragraph (2) for such year by not later
than January 1 of the previous year.
``(2) Allocation amount determinations.--
``(A) In general.--For purposes of paragraph (1),
the amount determined under this paragraph for a year
for a State described in paragraph (1)(A) for such year
is the amount equal to--
``(i) the amount that the Secretary
estimates would be expended under this part for
such year on attachment range claims of
individuals residing in such State if such
State used such funds only for the purpose
described in paragraph (1) of section 1352(a)
at the dollar amounts and percentage specified
under subparagraph (B) for such year; minus
``(ii) the amount, if any, by which the
Secretary determines--
``(I) the estimated amount of
premium tax credits under section 36B
of the Internal Revenue Code of 1986
that would be attributable to
individuals residing in such State for
such year without application of this
part; exceeds
``(II) the estimated amount of
premium tax credits under section 36B
of the Internal Revenue Code of 1986
that would be attributable to
individuals residing in such State for
such year if section 1353(b) applied
for such year and applied with respect
to such State for such year.
For purposes of the previous sentence and section
1353(b)(3), the term `attachment range claims' means,
with respect to an individual, the claims for such
individual that exceed a dollar amount specified by the
Secretary for a year, but do not exceed a ceiling
dollar amount specified by the Secretary for such year,
under subparagraph (B).
``(B) Specifications.--For purposes of subparagraph
(A) and section 1353(b)(3), the Secretary shall
determine the dollar amounts and the percentage to be
specified under this subparagraph for a year in a
manner to ensure that the total amount of expenditures
under this part for such year is estimated to equal the
total amount appropriated for such year under
subsection (a) if such expenditures were used solely
for the purpose described in paragraph (1) of section
1352(a) for attachment range claims at the dollar
amounts and percentage so specified for such year.
``(3) Availability.--Funds allocated to a State under this
subsection for a year shall remain available through the end of
the subsequent year.''.
(b) Basic Health Program Funding Adjustments.--Section 1331 of the
Patient Protection and Affordable Care Act (42 U.S.C. 18051) is
amended--
(1) in subsection (a), by adding at the end the following
new paragraph:
``(3) Provision of information on qualified health plan
premiums.--
``(A) In general.--For plan years beginning on or
after January 1, 2023, the program described in
paragraph (1) shall provide that a State may not
establish a basic health program unless such State
furnishes to the Secretary, with respect to each
qualified health plan offered in such State during a
year that receives any reinsurance payment from funds
made available under part 6 for such year, the adjusted
premium amount (as defined in subparagraph (B)) for
each such plan and year.
``(B) Adjusted premium amount defined.--For
purposes of subparagraph (A), the term `adjusted
premium amount' means, with respect to a qualified
health plan and a year, the monthly premium for such
plan and year that would have applied had such plan not
received any payments described in subparagraph (A) for
such year.''; and
(2) in subsection (d)(3)(A)(ii), by adding at the end the
following new sentence: ``In making such determination, the
Secretary shall calculate the value of such premium tax credits
that would have been provided to such individuals enrolled
through a basic health program established by a State during a
year using the adjusted premium amounts (as defined in
subsection (a)(3)(B)) for qualified health plans offered in
such State during such year.''.
SEC. 137507. SPECIAL RULE FOR INDIVIDUALS RECEIVING UNEMPLOYMENT
COMPENSATION.
(a) Extension.--Section 36B(g)(1) is amended by striking ``during
2021,'' and inserting ``after December 31, 2020, and before January 1,
2026,''.
(b) Modification of Income Not Taken Into Account.--Section
36B(g)(1)(B) is amended by striking ``133 percent'' and inserting ``150
percent''.
(c) Conforming Amendment.--Section 36B(g) by inserting ``Through
2025'' after ``2021'' in the heading thereof.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 137508. PERMANENT CREDIT FOR HEALTH INSURANCE COSTS.
(a) In General.--Subparagraph (B) of section 35(b)(1) of the
Internal Revenue Code of 1986 is amended by striking ``, and before
January 1, 2022'' and inserting a period.
(b) Increase in Credit Percentage.--Subsection (a) of section 35 of
the Internal Revenue Code of 1986 is amended by striking ``72.5
percent'' and inserting ``80 percent''.
(c) Conforming Amendments.--Subsections (b) and (e)(1) of section
7527 of the Internal Revenue Code of 1986 are each amended by striking
``72.5 percent'' and inserting ``80 percent''.
(d) Effective Date.--The amendments made by this section shall
apply to coverage months beginning after December 31, 2021.
PART 6--PATHWAY TO PRACTICE TRAINING PROGRAMS
SEC. 137601. ESTABLISHING RURAL AND UNDERSERVED PATHWAY TO PRACTICE
TRAINING PROGRAMS FOR POST-BACCALAUREATE STUDENTS AND
MEDICAL STUDENTS.
(a) Program.--
(1) In general.--Title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.) is amended by adding at the end the
following new section:
``SEC. 1899C. RURAL AND UNDERSERVED PATHWAY TO PRACTICE TRAINING
PROGRAM FOR POST-BACCALAUREATE AND MEDICAL STUDENTS.
``(a) In General.--Not later than October 1, 2023, the Secretary
shall, subject to the succeeding provisions of this section, carry out
the `Rural and Underserved Pathway to Practice Training Program for
Post-Baccalaureate and Medical Students' (in this section, referred to
as the `Program') under which the Secretary awards Pathway to Practice
medical scholarship vouchers to qualifying students described in
subsection (b) for the purpose of increasing the number of physicians
practicing in rural and underserved communities.
``(b) Qualifying Student Described.--For purposes of this section,
a qualifying student described in this subsection is an individual
who--
``(1) attests he or she--
``(A) is or will be a first-generation student of a
4-year college, graduate school, or professional
school;
``(B) was a Pell Grant recipient; or
``(C) lived in a medically underserved area, rural
area, or health professional shortage area for a period
of 4 or more years prior to attending an undergraduate
program;
``(2) has accepted enrollment in--
``(A) a post-baccalaureate program that is not more
than 2 years and intends to enroll in a qualifying
medical school within 2 years after completion of such
program; or
``(B) a qualifying medical school;
``(3) will practice medicine in a health professional
shortage area, medically underserved area, public hospital,
rural area, or as required under subsection (d)(5); and
``(4) submits an application and a signed copy of the
agreement described under subsection (c).
``(c) Applications.--
``(1) In general.--To be eligible to receive a Pathway to
Practice medical scholarship voucher under this section, a
qualifying student described in subsection (b) shall submit to
the Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.
``(2) Information to be included.--As a part of the
application described in paragraph (1), the Secretary shall
include a notice of the items which are required to be agreed
to under subsection (d)(4) for the purpose of notifying the
qualifying student of the terms of the Rural and Underserved
Pathway to Practice Training Program.
``(d) Pathway to Practice Medical Scholarship Voucher Details.--
``(1) Number.--On an annual basis, the Secretary may award
a Pathway to Practice medical scholarship voucher under the
Program to not more than 1,000 qualifying students described in
subsection (b).
``(2) Prioritization criteria.--In determining whether to
award a Pathway to Practice medical scholarship voucher under
the Program to qualifying students described in subsection (b),
the Secretary shall prioritize applications from any such
student who attests that he or she--
``(A) was a participant in the Health Resources and
Services Administration Health Careers Opportunity
Program or an Area Health Education Center scholar;
``(B) is a disadvantaged student (as defined by the
National Health Service Corps of the Health Resources &
Services Administration of the Department of Health and
Human Services); or
``(C) attended a historically black college or
other minority serving institution (as defined in
section 1067q of title 20, United States Code).
``(3) Duration.--Each Pathway to Practice medical
scholarship voucher awarded to a qualifying student pursuant to
paragraph (1) shall be so awarded to such a student on an
annual basis for each year of enrollment in a post-
baccalaureate program and a qualifying medical school (as
appropriate).
``(4) Amount.--Subject to paragraph (5), each Pathway to
Practice medical scholarship voucher awarded under the Program
shall include amounts for--
``(A) tuition;
``(B) academic fees (as determined by the
qualifying medical school);
``(C) required textbooks and equipment;
``(D) a monthly stipend equal to the amount
provided for individuals under the health professions
scholarship and financial assistance program described
in section 2121(c) of title 10, United States Code; and
``(E) any other educational expenses normally
incurred by students at the post-baccalaureate program
or qualifying medical school (as appropriate).
``(5) Required agreement.--No amounts under paragraph (4)
may be provided a qualifying student awarded a Pathway to
Practice medical scholarship voucher under the Program, unless
the qualifying student submits to the Secretary an agreement
to--
``(A) complete a post-baccalaureate program that is
not more than 2 years (if applicable pursuant to the
option under subsection (b)(2)(A));
``(B) graduate from a qualifying medical school;
``(C) complete a residency program in an approved
residency training program (as defined in section
1886(h)(5)(A));
``(D) complete an initial residency period or the
period of board eligibility;
``(E) practice medicine for at least the number of
years of the Pathway to Practice medical scholarship
voucher awarded under paragraph (2) after a residency
program in a health professional shortage area, a
medically underserved area, a public hospital, or a
rural area, and during such period annually submit
documentation with respect to whether the qualifying
student practices medicine in such an area and where;
``(F) for the purpose of determining compliance
with subparagraph (E), not later than 180 days after
the date on which qualifying student completes a
residency program, provide to the Secretary information
with respect to where the qualifying student is
practicing medicine following the period described in
such subparagraph;
``(G) except in the case of a waiver for hardship
pursuant to section 1892(f)(3), be liable to the United
States pursuant to section 1892 for any amounts
received under this Program that is determined a past-
due obligation under subsection (b)(3) of such section
in the case qualifying student fails to complete all of
the requirements of this agreement under this
subsection; and
``(H) for the purpose of determining the amount of
Pathway to Practice medical scholarship vouchers paid
or incurred by a qualifying medical school or any
provider of a post-baccalaureate program referred to in
subsection (b)(2)(A) for the costs of tuition under
paragraph (4)(A), consent to any personally identifying
information being shared with the Secretary of the
Treasury.
``(6) Responsibilities of participating educational
institutions.--Each annual award of an amount of Pathway to
Practice medical scholarship voucher under paragraph (2) shall
be made with respect to a specific qualifying medical school or
post-baccalaureate program that is not more than 2 years and
such school or program shall (as a condition of, and prior to,
such award being made with respect to such school or program)--
``(A) submit to the Secretary such information as
the Secretary may require to determine the amount of
such award on the basis of the costs of the costs of
the items specified under paragraph (4) (except for
subparagraph (D)) with respect to such school or
program, and
``(B) enter into an agreement with the Secretary
under which such school or provider will verify (in
such manner as the Secretary may provide) that amounts
paid by such school or provider to the qualifying
student are used for such costs.
``(e) Definitions.--In this section:
``(1) Health professional shortage area.--The team `health
professional shortage area' has the meaning given such term in
subparagraphs (A) or (B) of section 332(a)(1) of the Public
Health Service Act.
``(2) Initial residency period.--The term `initial
residency period' has the meaning given such term in section
1886(h)(5)(F).
``(3) Medically underserved area.--The term `medically
underserved area' means an area designated pursuant to section
330(b)(3)(A) of the Public Health Service Act.
``(4) Pell grant recipient.--The term `Pell Grant
recipient' has the meaning given such term in section 322(3) of
the Higher Education Act of 1965.
``(5) Period of board eligibility.--The term `period of
board eligibility' has the meaning given such term in section
1886(h)(5)(G).
``(6) Qualifying medical school.--The term `qualifying
medical school' means a school of medicine accredited by the
Liaison Committee on Medical Education of the American Medical
Association and the Association of American Medical Colleges
(or approved by such Committee as meeting the standards
necessary for such accreditation) or a school of osteopathy
accredited by the American Osteopathic Association, or approved
by such Association as meeting the standards necessary for such
accreditation which--
``(A) for each academic year, enrolls at least 10
qualifying students who are in enrolled in such a
school;
``(B) requires qualifying students to enroll in
didactic coursework and clinical experience applicable
to practicing medicine in health professional shortage
areas, medically underserved areas, or rural areas,
including--
``(i) clinical rotations in such areas in
applicable specialties (as applicable and as
available);
``(ii) coursework or training experiences
focused on medical issues prevalent in such
areas and cultural and structural competency;
and
``(C) is located in a State (as defined in section
210(h)).
``(7) Rural area.--The term `rural area' has the meaning
given such term in section 1886(d)(2)(D).
``(f) Penalty for False Information.--Any person who knowingly and
willfully obtains by fraud, false statement, or forgery, or fails to
refund any funds, assets, or property provided under this section or
attempts to so obtain by fraud, false statement or forgery, or fail to
refund any funds, assets, or property, received pursuant to this
section shall be fined not more than $20,000 or imprisoned for not more
than 5 years, or both.''.
(2) Agreements.--Section 1892 of the Social Security Act
(42 U.S.C. 1395ccc) is amended--
(A) in subsection (a)(1)(A)--
(i) by striking ``, or the'' and inserting
``, the''; and
(ii) by inserting ``or the Rural and
Underserved Pathway to Practice Training
Program for Post- Baccalaureate and Medical
Students under section 1899C'' before ``, owes
a past-due obligation'';
(B) in subsection (b)--
(i) in paragraph (1), by striking at the
end ``or'';
(ii) in paragraph (2), by striking the
period at the end and inserting ``; or''; and
(iii) by adding the end the following new
paragraph:
``(3) subject to subsection (f), owed by an individual to
the United States by breach of an agreement under section
1899C(c) and which payment has not been paid by the individual
for any amounts received under the Rural and Underserved
Pathway to Practice Training Program for Post-Baccalaureate and
Medical Students (and accrued interest determined in accordance
with subsection (f)(4)) in the case such individual fails to
complete the requirements of such agreement.''; and
(C) by adding at the end the following new
subsection:
``(f) Authorities With Respect to the Collection Under the Pathway
to Practice Training Program.--The Secretary--
``(1) shall require payment to the United States for any
amount of damages that the United States is entitled to recover
under subsection (b)(3), within the 5-year period beginning on
the date an eligible individual fails to complete the
requirements of such agreement under section 1899C(d)(5) (or
such longer period beginning on such date as specified by the
Secretary), and any such amounts not paid within such period
shall be subject to collection through deductions in Medicare
payments pursuant to subsection (e);
``(2) may allow payments described in paragraph (1) to be
paid in installments over such 5-year period, which shall
accrue interest in an amount determined pursuant to paragraph
(5);
``(3) may waive the requirement for an individual to pay a
past-due obligation under subsection (b)(3) in the case of
hardship (as determined by the Secretary);
``(4) may not disclose any past-due obligation under
subsection (b)(3) that is owed to the United States to any
credit reporting agency that the United States entitled to be
recovered the United States under this section; and
``(5) shall make a final determination of whether the
amount of payment under section 1899C made to a qualifying
student (as described in subsection (b) of such section) was in
excess of or less than the amount of payment that is due, and
payment of such excess or deficit is not made (or effected by
offset) within 90 days of the date of the determination, and
interest shall accrue on the balance of such excess or deficit
not paid or offset (to the extent that the balance is owed by
or owing to the provider) at a rate determined in accordance
with the regulations of the Secretary of the Treasury
applicable to charges for late payments.''.
SEC. 137602. FUNDING FOR THE RURAL AND UNDERSERVED PATHWAY TO PRACTICE
TRAINING PROGRAMS FOR POST-BACCALAUREATE STUDENTS AND
MEDICAL STUDENTS.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986, as amended by the preceding
provisions of this Act, is amended by inserting after section 36F the
following new section:
``SEC. 36G. PATHWAY TO PRACTICE MEDICAL SCHOLARSHIP VOUCHER CREDIT.
``(a) In General.--In the case of a qualified educational
institution, there shall be allowed as a credit against the tax imposed
by this subtitle for any taxable year an amount equal to the aggregate
amount paid or incurred by such institution during such taxable year
pursuant to any Pathway to Practice medical scholarship voucher awarded
to a qualifying student with respect to such institution.
``(b) Determination of Amounts Paid Pursuant to Qualified
Scholarship Vouchers, etc.--For purposes of this section--
``(1) an amount shall be treated as paid or incurred
pursuant to an annual award of a Pathway to Practice medical
scholarship voucher only if such amount is paid or incurred in
reimbursement, or anticipation of, an expense described in
subparagraphs (A) through (E) of paragraph (4) of section
1899C(d) of the Social Security Act and is subject to
verification in such manner as the Secretary of Health and
Human Services may provide under paragraph (6) of such section,
and
``(2) in the case of any amount credited by a qualified
educational institution against a liability owed by the
qualifying student to such institution, such amount shall be
treated as paid by such institution to such student as of the
date that such liability would otherwise be due.
``(c) Definitions.--For purposes of this section--
``(1) Qualified educational institution.--The term
`qualified educational institution' means, with respect to any
annual award of a Pathway to Practice medical scholarship
voucher--
``(A) any qualifying medical school (as defined in
subsection (e)(6) of section 1899C of the Social
Security Act), and
``(B) any provider of a post-baccalaureate program
referred to in subsection (b)(2)(A) of such section,
which meets the requirements of subsection (d)(6) of such
section.
``(2) Qualifying student.--The term `qualifying student'
means any student to whom the Secretary of Health and Human
Services has made an annual award of a Pathway to Practice
medical scholarship voucher under section 1899C of the Social
Security Act.
``(3) Annual award of a pathway to practice medical
scholarship voucher.--The term `annual award of a Pathway to
Practice medical scholarship voucher' means the annual award of
a Pathway to Practice medical scholarship voucher referred to
in section 1899C(d)(3) of the Social Security Act.
``(d) Coordination of Academic and Taxable Years.--The credit
allowed under subsection (a) with respect to any Pathway to Practice
medical scholarship voucher shall not exceed the amount of such voucher
which is for expenses described in subparagraphs (A) through (E) of
section 1899C(d)(4) of the Social Security Act, reduced by any amount
of such voucher with respect to which credit was allowed under this
section for any prior taxable year.
``(e) Regulations.--The Secretary shall issue such regulations or
other guidance as are necessary or appropriate to carry out the
purposes of this section.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A), as amended by the preceding
provisions of this Act, is amended by inserting ``36G,'' after
``36F,''.
(2) Paragraph (2) of section 1324(b) of title 31, United
States Code, as amended by the preceding provisions of this
Act, is amended by inserting ``36G,'' after ``36F,''.
(3) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986,
and amended by the preceding provisions of this Act, is amended
by inserting after the item relating to section 36F the
following new item:
``Sec. 36G. Pathway to Practice medical scholarship voucher credit.''.
(c) Information Sharing.--The Secretary of Health and Human
Services shall annually provide the Secretary of the Treasury such
information regarding the program under section 1899C of the Social
Security Act as the Secretary of the Treasury may require to administer
the tax credits determined under section 36G of the Internal Revenue
Code of 1986, including information to identify qualifying students and
the qualified educational institutions at which such students are
enrolled and the amount of the annual award of the Pathway to Practice
medical scholarship voucher awarded to each such student with respect
to such institution. Terms used in this subparagraph shall have the
same meaning as when used is such section 36G.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
SEC. 137603. ESTABLISHING RURAL AND UNDERSERVED PATHWAY TO PRACTICE
TRAINING PROGRAMS FOR MEDICAL RESIDENTS.
Section 1886 of the Social Security Act (42 U.S.C. 1395ww) is
amended--
(1) in subsection (d)(5)(B)(v), by inserting
``(h)(4)(H)(vii),'' after ``The provisions of subsections
(h)(4)(H)(vi),''; and
(2) in subsection (h)(4)(H), by adding at the end the
following new clause:
``(vii) Increase in full-time equivalent
limitation for hospitals implementing pathway
training programs.--
``(I) In general.--For cost
reporting periods beginning on or after
October 1, 2026, during which a
resident trains in an applicable
hospital or hospitals (as defined in
subclause (II) in an approved medical
residency training program), the
Secretary shall, after any adjustment
made under any preceding provision of
this paragraph or under any of
paragraphs (7) through (9), subject to
subclause (III), increase the
limitation under subparagraph (F) for
such cost reporting period by the
number of full-time equivalent
residents so trained under such program
during such period (in this clause,
referred to as the `Rural and
Underserved Pathway to Practice
Training Programs for Medical
Residents' or `Program').
``(II) Applicable hospital or
hospitals defined.--For purposes of
this clause, the term `applicable
hospital or hospitals' means any
hospital that has been recognized by
the Accreditation Council for Graduate
Medical Education as meeting at least
the following requirements for their
approved medical residency training
programs:
``(aa) The programs provide
mentorships for residents.
``(bb) The programs include
cultural and structural
competency as part of the
training of residents under the
programs.
``(cc) The programs have a
demonstrated record of training
medical residents in medically
underserved areas, rural areas,
or health professional shortage
areas.
``(dd) The hospital agrees
to promote community-based
training of residents under
their programs, as appropriate.
``(III) Annual limitation for
number of residents in program.--The
Secretary shall ensure that, during any
1-year period and across all approved
medical residency training programs
described in subclause (I), not more
than 1,000 full-time equivalent
residents are trained each year.
``(IV) Other definitions.--
``(aa) Health professional
shortage area.--The team
`health professional shortage
area' has the meaning given
such term in subparagraphs (A)
or (B) of section 332(a)(1) of
the Public Health Service Act.
``(bb) Medical underserved
area.--The term `medically
underserved area' means an area
designated pursuant to section
330(b)(3)(A) of the Public
Health Service Act.
``(cc) Qualifying medical
school.--The term `qualifying
medical school' has the meaning
given such term in section
1899C(e)(6).
``(dd) Qualifying medical
student.--The term `qualifying
medical student' has the
meaning given such term in
section 1899C(b).
``(ee) Rural area.--The
term `rural area' has the
meaning given such term in
section 1886(d)(2)(D).''.
SEC. 137604. ADMINISTRATIVE FUNDING OF THE RURAL AND UNDERSERVED
PATHWAY TO PRACTICE TRAINING PROGRAMS FOR POST-
BACCALAUREATE STUDENTS, MEDICAL STUDENTS, AND MEDICAL
RESIDENTS.
The Secretary shall provide for the transfer of $6,000,000 from the
Hospital Insurance Trust Fund established under section 1817 of the
Social Security Act (42 U.S.C. 1395i) and the Federal Supplementary
Medical Insurance Trust Fund under section 1841 of such Act (42 U.S.C.
1395t), in addition to amounts otherwise available to remain available
until expended, to carry out the administration of the Rural and
Underserved Pathway to Practice Training Program for Post-Baccalaureate
and Medical Students under section 1899C of such Act (42 U.S.C.
1395mmm) and the Rural and Underserved Pathway to Practice Training
Programs for Medical Residents under section 1886(h)(4)(H)(vii) of such
Act (42 U.S.C. 1395ww(h)(4)(H)(vii)).
PART 7--HIGHER EDUCATION
SEC. 137701. CREDIT FOR PUBLIC UNIVERSITY RESEARCH INFRASTRUCTURE.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1,
as amended by the preceding provisions of this Act, is amended by
adding at the end the following new section:
``SEC. 45AA. PUBLIC UNIVERSITY RESEARCH INFRASTRUCTURE CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, the public
university research infrastructure credit determined under this section
for a taxable year is an amount equal to 40 percent of the qualified
cash contributions made by a taxpayer during such taxable year.
``(b) Qualified Cash Contribution.--
``(1) In general.--
``(A) Defined.--For purposes of subsection (a), the
qualified cash contribution for any taxable year is the
aggregate amount contributed in cash by a taxpayer
during such taxable year to a certified educational
institution in connection with a qualifying project
that, but for this section, would be treated as a
charitable contribution for purposes of section 170(c).
``(B) Qualified cash contributions taken into
account for purposes of charitable contribution
limitations.--Any qualified cash contributions made by
a taxpayer under this section shall be taken into
account for purposes of determining the percentage
limitations under section 170(b).
``(2) Designation required.--A contribution shall only be
treated as a qualified cash contribution to the extent that it
is designated as such by a certified educational institution
under subsection (d).
``(c) Definitions.--For purposes of this section--
``(1) Qualifying project.--The term `qualifying project'
means a project to purchase, construct, or improve research
infrastructure property.
``(2) Research infrastructure property.--The term `research
infrastructure property' means any portion of a property,
building, or structure of an eligible educational institution,
or any land associated with such property, building, or
structure, that is used for research.
``(3) Eligible educational institution.--The term `eligible
educational institution' means--
``(A) an institution of higher education (as such
term is defined in section 101 or 102(c) of the Higher
Education Act of 1965) that is a college or university
described in section 511(a)(2)(B), or
``(B) an organization described in section
170(b)(1)(A)(iv) or section 509(a)(3) to which
authority has been delegated by an institution
described in subparagraph (A) for purposes of applying
for or administering credit amounts on behalf of such
institution.
``(4) Certified educational institution.--The term
`certified educational institution' means an eligible
educational institution which has been allocated a credit
amount for a qualifying project and--
``(A) has received a certification for such project
under subsection (d)(2), and
``(B) designates credit amounts to taxpayers for
qualifying cash contributions toward such project under
subsection (d)(4).
``(d) Qualifying University Research Infrastructure Program.--
``(1) Establishment.--
``(A) In general.--Not later than 180 days after
the date of the enactment of this section, the
Secretary, after consultation with the Secretary of
Education, shall establish a program to--
``(i) certify and allocate credit amounts
for qualifying projects to eligible educational
institutions, and
``(ii) allow certified educational
institutions to designate cash contributions
for qualifying projects of such certified
educational institutions as qualified cash
contributions.
``(B) Limitations.--
``(i) Allocation limitation per
institution.--The credit amounts allocated to a
certified educational institution under
subparagraph (A)(i) for all projects shall not
exceed $50,000,000 per calendar year.
``(ii) Overall allocation limitation.--
``(I) In general.--The total amount
of qualifying project credit amounts
that may be allocated under
subparagraph (A)(i) shall not exceed--
``(aa) $500,000,000 for
each of calendar years 2022,
2023, 2024, 2025, and 2026, and
``(bb) $0 for each
subsequent year.
``(II) Rollover of unallocated
credit amounts.--Any credit amounts
described in subclause (I) that are
unallocated during a calendar year
shall be carried to the succeeding
calendar year and added to the
limitation allowable under such
subclause for such succeeding calendar
year.
``(iii) Designation limitation.--The
aggregate amount of cash contributions which
are designated by a certified educational
institution as qualifying cash contributions
with respect to any qualifying project shall
not exceed 250 percent of the credit amount
allocated to such certified educational
institution for a qualifying project under
subparagraph (A)(i).
``(2) Certification application.--Each eligible educational
institution which applies for certification of a project under
this paragraph shall submit an application in such time, form,
and manner as the Secretary may require.
``(3) Selection criteria for allocations to eligible
educational institutions.--The Secretary, after consultation
with the Secretary of Education, shall select applications from
eligible educational institutions--
``(A) based on the extent of the expected expansion
of an eligible educational institution's targeted
research within disciplines in science, mathematics,
engineering, and technology, and
``(B) in a manner that ensures consideration is
given to eligible educational institutions with full-
time student populations of less than 12,000.
``(4) Designation of qualified cash contributions to
taxpayers.--The Secretary, after consultation with the
Secretary of Education, shall establish a process by which
certified educational institutions shall designate cash
contributions to such institutions as qualified cash
contributions.
``(5) Disclosure of allocations and designations.--
``(A) Allocations.--The Secretary shall, upon
allocating credit amounts to an applicant under this
subsection, publicly disclose the identity of the
applicant and the credit amount allocated to such
applicant.
``(B) Designations.--Each certified educational
institution shall, upon designating contributions of a
taxpayer as qualified cash contributions under this
subsection, publicly disclose the identity of the
taxpayer and the amount of contributions designated in
such time, form, and manner as the Secretary may
require.
``(e) Regulations and Guidance.--The Secretary, after consultation
with the Secretary of Education when applicable, shall prescribe such
regulations and guidance as may be necessary or appropriate to carry
out the purposes of this section, including regulations for--
``(1) prevention of abuse,
``(2) establishment of reporting requirements,
``(3) establishment of selection criteria for applications,
and
``(4) disclosure of allocations.
``(f) Penalty for Noncompliance.--
``(1) In general.--If at any time during the 5-year period
beginning on the date of the allocation of credit amounts to a
certified educational institution under subsection (d)(1)(A)(i)
there is a noncompliance event with respect to such credit
amounts, then the following rules shall apply:
``(A) General rule.--Any cash contribution
designated as a qualifying cash contribution with
respect to a qualifying project for which such credit
amounts were allocated under subsection (d)(1)(A)(ii)
shall be treated as unrelated business taxable income
(as defined in section 512) of such certified
educational institution.
``(B) Rule for unused credit amounts.--In the case
of unused credit amounts described under paragraph
(2)(A) and identified pursuant to subsection (g), the
Secretary shall reallocate any portion of such unused
credit amounts to certified educational institutions in
lieu of imposing the general rule under subparagraph
(A).
``(2) Noncompliance event.--For purposes of this
subsection, the term `noncompliance event' means, with respect
to a credit amount allocated to a certified educational
institution--
``(A) cash contributions equaling the amount of
such credit amount are not designated as qualifying
cash contributions within 2 years after December 31 of
the year such credit amount is allocated,
``(B) a qualifying project with respect to which
such credit amount was allocated is not placed in
service within either--
``(i) 4 years after December 31 of the year
such credit amount is allocated, or
``(ii) a period of time that the Secretary
determines is appropriate, or
``(C) the research infrastructure property placed
in service as part of a qualifying project with respect
to which such credit amount was allocated ceases to be
used for research within five years after such property
is placed in service.
``(g) Review and Reallocation of Credit Amounts.--
``(1) Review.--Not later than 5 years after the date of
enactment of this section, the Secretary shall review the
credit amounts allocated under this section as of such date.
``(2) Reallocation.--
``(A) In general.--The Secretary may reallocate
credit amounts allocated under this section if the
Secretary determines, as of the date of the review in
paragraph (1), that such credit amounts are subject to
a noncompliance event.
``(B) Additional program.--If the Secretary
determines that credits under this section are
available for reallocation pursuant to the requirements
set forth in subparagraph (A), the Secretary is
authorized to conduct an additional program for
applications for certification.
``(C) Deadline for reallocation.--The Secretary
shall not certify any project, or reallocate any credit
amount, pursuant to this paragraph after December 31,
2031.
``(h) Denial of Double Benefit.--No credit or deduction shall be
allowed under any other provision of this chapter for any qualified
cash contribution for which a credit is allowed under this section.
``(i) Rule for Trusts and Estates.--For purposes of this section,
rules similar to the rules of subsection (d) of section 52 shall apply.
``(j) Termination.--This section shall not apply to qualified cash
contributions made after December 31, 2033.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38, as amended by the preceding provisions of this Act, is
amended by striking ``plus'' at the end of paragraph (38), by striking
the period at the end of paragraph (39) and inserting ``, plus'', and
by adding at the end the following new paragraph:
``(43) the public university research infrastructure credit
determined under section 45AA.''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1, as amended by the preceding
provisions of this Act, is amended by adding at the end the following
new item:
``Sec. 45AA. Public university research infrastructure credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to qualified cash contributions made after December 31, 2021.
SEC. 137702. MODIFICATION OF EXCISE TAX ON INVESTMENT INCOME OF PRIVATE
COLLEGES AND UNIVERSITIES.
(a) Phaseout of Investment Income Excise Tax for Private Colleges
and Universities Providing Sufficient Grants and Scholarships.--Section
4968 is amended by adding at the end the following new subsection:
``(e) Phaseout for Institutions Providing Qualified Aid.--
``(1) In general.--The amount of tax imposed by subsection
(a) (determined without regard to this subsection) shall be
reduced (but not below zero) by the amount which bears the same
ratio to such amount of tax (as so determined) as--
``(A) the excess (if any) of--
``(i) the aggregate amount of qualified aid
awards provided by the institution to its
first-time, full-time undergraduate students
for academic periods beginning during the
taxable year, over
``(ii) an amount equal to 20 percent of the
aggregate undergraduate tuition and fees
received by the institution from first-time,
full-time undergraduate students for such
academic periods, bears to
``(B) an amount equal to 13 percent of such
aggregate undergraduate tuition and fees so received.
``(2) Institution must meet reporting requirement.--
``(A) In general.--Paragraph (1) shall not apply to
an applicable educational institution for a taxable
year unless such institution furnishes to the
Secretary, and makes widely available, a statement
detailing the average aggregate amount of Federal
student loans received by a student for attendance at
the institution, averaged among each of the following
groups of first-time, full-time undergraduate students
who during the taxable year completed a course of study
for which the institution awarded a baccalaureate
degree:
``(i) All such students.
``(ii) The students who have been awarded a
Federal Pell Grant under subpart 1 of part A of
title IV of the Higher Education Act of 1965
for attendance at the institution.
``(iii) The students who received work-
study assistance under part C of title IV of
such Act for attendance at such institution.
``(iv) The students who were provided such
Federal student loans.
``(B) Form and manner for report.--Such statement
shall be furnished at such time and in such form and
manner, and made widely available, under such
regulations or guidance as the Secretary may prescribe.
``(C) Federal student loans.--For purposes of this
paragraph, the term `Federal student loans' means a
loan made under part D of title IV of the Higher
Education Act of 1965, except such term does not
include a Federal Direct PLUS Loan made on behalf of a
dependent student.
``(3) Other definitions.--For purposes of this subsection--
``(A) First-time, full-time undergraduate
student.--The term `first-time, full-time undergraduate
student' shall have the same meaning as when used in
section 132 of the Higher Education Act of 1965.
``(B) Qualified aid awards.--The term `qualified
aid awards' means, with respect to any applicable
educational institution, grants and scholarships to the
extent used for undergraduate tuition and fees.
``(C) Undergraduate tuition and fees.--The term
`undergraduate tuition and fees' means, with respect to
any institution, the tuition and fees required for the
enrollment or attendance of a student as an
undergraduate student at the institution.''.
(b) Inflation Adjustment to Per Student Asset Threshold.--Section
4968(b) is amended by adding at the end the following new paragraph:
``(3) Inflation adjustment.--In the case of any taxable
year beginning after 2022, the dollar amount in paragraph
(1)(D) shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2021' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
If any increase determined under this paragraph is not a
multiple of $1,000, such increase shall be rounded to the
nearest multiple of $1,000.''.
(c) Clarification of 500 Student Threshold.--Section 4968(b)(1)(A)
is amended by inserting ``below the graduate level'' after ``500
tuition-paying students''.
(d) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2021.
SEC. 137703. TREATMENT OF FEDERAL PELL GRANTS FOR INCOME TAX PURPOSES.
(a) Exclusion From Gross Income.--Section 117(b)(1) is amended by
striking ``received by an individual'' and all that follows and
inserting ``received by an individual--
``(A) as a scholarship or fellowship grant to the
extent the individual establishes that, in accordance
with the conditions of the grant, such amount was used
for qualified tuition and related expenses, or
``(B) as a Federal Pell Grant under section 401 of
the Higher Education Act of 1965.''.
(b) Treatment for Purposes of American Opportunity Tax Credit and
Lifetime Learning Credit.--Section 25A(g)(2) is amended--
(1) in subparagraph (A), by inserting ``described in
section 117(b)(1)(A)'' after ``a qualified scholarship'', and
(2) in subparagraph (C), by inserting ``or Federal Pell
Grant under section 401 of the Higher Education Act of 1965''
after ``within the meaning of section 102(a)''.
(c) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2021.
SEC. 137704. REPEAL OF DENIAL OF AMERICAN OPPORTUNITY TAX CREDIT ON
BASIS OF FELONY DRUG CONVICTION.
(a) In General.--Section 25A(b)(2) is amended by striking
subparagraph (D).
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2021.
Subtitle I--Responsibly Funding Our Priorities
SEC. 138001. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this subtitle
an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
PART 1--CORPORATE AND INTERNATIONAL TAX REFORMS
Subpart A--Corporate Tax Rate
SEC. 138101. INCREASE IN CORPORATE TAX RATE.
(a) In General.--Section 11(b) is amended to read as follows:
``(b) Amount of Tax.--
``(1) In general.--The amount of the tax imposed by
subsection (a) shall be the sum of--
``(A) 18 percent of so much of the taxable income
as does not exceed $400,000,
``(B) 21 percent of so much of the taxable income
as exceeds $400,000 but does not exceed $5,000,000, and
``(C) 26.5 percent of so much of the taxable income
as exceeds $5,000,000.
In the case of a corporation which has taxable income in excess
of $10,000,000 for any taxable year, the amount of tax
determined under the preceding sentence for such taxable year
shall be increased by the lesser of (i) 3 percent of such
excess, or (ii) $287,000.
``(2) Certain personal service corporation not eligible for
graduated rates.--Notwithstanding paragraph (1), the amount of
the tax imposed by subsection (a) on the taxable income of a
qualified personal service corporation (as defined in section
448(d)(2)) shall be equal to 26.5 percent of the taxable
income.''.
(b) Proportional Adjustment of Deduction for Dividends Received.--
(1) In general.--Section 243(a)(1) is amended by striking
``50 percent'' and inserting ``60 percent''.
(2) Dividends from 20-percent owned corporations.--Section
243(c)(1) is amended--
(A) prior to amendment by subparagraph (B), by
striking ``65 percent'' and inserting ``72.5 percent'',
and
(B) by striking ``50 percent'' and inserting ``60
percent''.
(c) Conforming Amendment.--Section 1561 is amended--
(1) by amending subsection (a) to read as follows:
``(a) In General.--The component members of a controlled group of
corporations on a December 31 shall, for their taxable years which
include such December 31, be limited for purposes of this subtitle to--
``(1) amounts in each taxable income bracket in the
subparagraphs of section 11(b)(1) which do not aggregate more
than the maximum amount in each such bracket to which a
corporation which is not a component member of a controlled
group is entitled, and
``(2) one $250,000 ($150,000 if any component member is a
corporation described in section 535(c)(2)(B)) amount for
purposes of computing the accumulated earnings credit under
section 535(c)(2) and (3).
The amounts specified in paragraph (1) shall be divided equally among
the component members of such group on such December 31 unless all of
such component members consent (at such time and in such manner as the
Secretary shall by regulations prescribe) to an apportionment plan
providing for an unequal allocation of such amounts. The amounts
specified in paragraph (2) shall be divided equally among the component
members of such group on such December 31 unless the Secretary
prescribes regulations permitting an unequal allocation of such
amounts. Notwithstanding paragraph (1), in applying the last sentence
of section 11(b)(1) to such component members, the taxable income of
all such component members shall be taken into account and any increase
in tax under such last sentence shall be divided among such component
members in the same manner as amounts under paragraph (1).'', and
(2) by striking ``accumulated earnings credit'' in the
heading and inserting ``certain multiple tax benefits''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
(e) Normalization Requirements.--
(1) In general.--A normalization method of accounting shall
not be treated as being used with respect to any public utility
property for purposes of section 167 or 168 of the Internal
Revenue Code of 1986 if the taxpayer, in computing its cost of
service for ratemaking purposes and reflecting operating
results in its regulated books of account, reduces the tax
reserve deficit less rapidly or to a lesser extent than such
reserve would be reduced under the average rate assumption
method.
(2) Alternative method for certain taxpayers.--If, as of
the first day of the taxable year that includes the date of
enactment of this Act--
(A) the taxpayer was required by a regulatory
agency to compute depreciation for public utility
property on the basis of an average life or composite
rate method, and
(B) the taxpayer's books and underlying records did
not contain the vintage account data necessary to apply
the average rate assumption method,
the taxpayer will be treated as using a normalization method of
accounting if, with respect to such jurisdiction, the taxpayer
uses the alternative method for public utility property that is
subject to the regulatory authority of that jurisdiction.
(3) Definitions.--For purposes of this subsection--
(A) Tax reserve deficit.--The term ``tax reserve
deficit'' means the excess of--
(i) the amount which would be the balance
in the reserve for deferred taxes (as described
in section 168(i)(9)(A)(ii) of the Internal
Revenue Code of 1986, or section
167(l)(3)(G)(ii) of such Code as in effect on
the day before the date of the enactment of the
Tax Reform Act of 1986) if the amount of such
reserve were determined by assuming that the
corporate rate increases provided in the
amendments made by this section were in effect
for all prior periods, over
(ii) the balance in such reserve as of the
day before such corporate rate increases take
effect.
(B) Average rate assumption method.--The average
rate assumption method is the method under which the
excess in the reserve for deferred taxes is reduced
over the remaining lives of the property as used in its
regulated books of account which gave rise to the
reserve for deferred taxes. Under such method, if
timing differences for the property reverse, the amount
of the adjustment to the reserve for the deferred taxes
is calculated by multiplying--
(i) the ratio of the aggregate deferred
taxes for the property to the aggregate timing
differences for the property as of the
beginning of the period in question, by
(ii) the amount of the timing differences
which reverse during such period.
(C) Alternative method.--The ``alternative method''
is the method in which the taxpayer--
(i) computes the tax reserve deficit on all
public utility property included in the plant
account on the basis of the weighted average
life or composite rate used to compute
depreciation for regulatory purposes, and
(ii) reduces the tax reserve deficit
ratably over the remaining regulatory life of
the property.
(4) Treatment of normalization violation.--If, for any
taxable year ending after the date of the enactment of this
Act, the taxpayer does not use a normalization method of
accounting, such taxpayer shall not be treated as using a
normalization method of accounting for purposes of subsections
(f)(2) and (i)(9)(C) of section 168 of the Internal Revenue
Code of 1986.
(5) Regulations.--The Secretary of the Treasury, or the
Secretary's designee, shall issue such regulations or other
guidance as may be necessary or appropriate to carry out this
subsection, including regulations or other guidance to provide
appropriate coordination between this subsection, section
13001(d) of Public Law 115-97, and section 203(e) of the Tax
Reform Act of 1986.
Subpart B--Limitations on Deduction for Interest Expense
SEC. 138111. LIMITATIONS ON DEDUCTION FOR INTEREST EXPENSE.
(a) Interest Expense of Certain Members of International Financial
Reporting Groups.--Section 163 is amended by redesignating subsection
(n) as subsection (p) and by inserting after subsection (m) the
following new subsection:
``(n) Limitation on Deduction of Interest by Certain Members of
International Financial Reporting Groups.--
``(1) In general.--In the case of any specified domestic
corporation which is a member of any international financial
reporting group, the deduction under this chapter for interest
paid or accrued during the taxable year in excess of the amount
of interest includible in the gross income of such corporation
shall not exceed the allowable percentage of 110 percent of
such excess.
``(2) Specified domestic corporation.--For purposes of this
subsection--
``(A) In general.--The term `specified domestic
corporation' means any domestic corporation other
than--
``(i) any corporation if the excess of--
``(I) the average amount of
interest paid or accrued by such
corporation during the 3-taxable-year
period ending with the taxable year to
which paragraph (1) applies, over
``(II) the average amount of
interest includible in the gross income
of such corporation for such 3-taxable-
year period,
does not exceed $12,000,000,
``(ii) any corporation to which paragraph
(1) of section 163(j) does not apply by reason
of paragraph (3) thereof (relating to exemption
for certain small businesses), and
``(iii) any S corporation, real estate
investment trust, or regulated investment
company.
``(B) Aggregation rule.--For purposes of
subparagraph (A)(i), all domestic corporations which
are members of the same international financial
reporting group shall be treated as a single
corporation.
``(3) International financial reporting group.--For
purposes of this subsection--
``(A) In general.--The term `international
financial reporting group' means, with respect to any
reporting year, two or more entities if--
``(i) either--
``(I) at least one entity is a
foreign corporation engaged in a trade
or business within the United States,
or
``(II) at least one entity is a
domestic corporation and another entity
is a foreign corporation, and
``(ii) such entities are included in the
same applicable financial statement with
respect to such year.
``(B) Additional members.--
``(i) In general.--To the extent provided
by the Secretary in regulations or other
guidance, the specified domestic corporation
referred to in paragraph (1) may elect (at such
time and in such manner as the Secretary may
provide) for purposes of this subsection to
treat any eligible corporation as a member of
the international financial reporting group of
which such specified domestic corporation is a
member if such eligible corporation maintains
(and such specified domestic corporation has
access to) such books and records as the
Secretary determines are satisfactory to allow
for the application of this subsection with
respect to such eligible corporation. Any
election under this clause shall apply only
with respect to the specified domestic
corporation which makes such election.
``(ii) Eligible corporation.--The term
`eligible corporation' means, with respect to
any international financial reporting group,
any corporation if at least 20 percent of the
stock of such corporation (determined by vote
and value) is held (directly or indirectly) by
members of such international financial
reporting group (determined without regard to
this clause).
``(4) Allowable percentage.--For purposes of this
subsection--
``(A) In general.--The term `allowable percentage'
means, with respect to any specified domestic
corporation for any taxable year, the ratio (expressed
as a percentage and not greater than 100 percent) of--
``(i) such corporation's allocable share of
the international financial reporting group's
reported net interest expense for the reporting
year of such group which ends in or with such
taxable year of such corporation, over
``(ii) such corporation's reported net
interest expense for such reporting year of
such group.
``(B) Reported net interest expense.--The term
`reported net interest expense' means--
``(i) with respect to any international
financial reporting group for any reporting
year, the excess of--
``(I) the aggregate amount of
interest expense reported in such
group's applicable financial statements
for such taxable year, over
``(II) the aggregate amount of
interest income reported in such
group's applicable financial statements
for such taxable year, and
``(ii) with respect to any specified
domestic corporation for any reporting year,
the excess of--
``(I) the amount of interest
expense of such corporation reported in
the books and records of the
international financial reporting group
which are used in preparing such
group's applicable financial statements
for such taxable year, over
``(II) the amount of interest
income of such corporation reported in
such books and records.
``(C) Allocable share of reported net interest
expense.--With respect to any specified domestic
corporation which is a member of any international
financial reporting group, such corporation's allocable
share of such group's reported net interest expense for
any reporting year is the portion of such expense which
bears the same ratio to such expense as--
``(i) the EBITDA of such corporation for
such reporting year, bears to
``(ii) the EBITDA of such group for such
reporting year.
``(D) EBITDA.--
``(i) In general.--The term `EBITDA' means,
with respect to any reporting year, earnings
before interest income and interest expense,
taxes, depreciation, depletion, and
amortization--
``(I) as determined in the
international financial reporting
group's applicable financial statements
for such year, or
``(II) for purposes of subparagraph
(A)(i), as determined in the books and
records of the international financial
reporting group which are used in
preparing such statements if not
determined in such statements.
``(ii) Treatment of intra-group
distributions.--The EBITDA of any specified
domestic corporation shall be determined
without regard to any distribution received by
such corporation from any other member of the
international financial reporting group.
``(E) Special rules for non-positive ebitda.--
``(i) Non-positive group ebitda.--In the
case of any international financial reporting
group the EBITDA of which is zero or less,
paragraph (1) shall not apply to any specified
domestic corporation which is a member of such
group.
``(ii) Non-positive entity ebitda.--In the
case of any specified domestic corporation the
EBITDA of which is zero or less, the allowable
percentage shall be 0 percent.
``(5) Applicable financial statement.--For purposes of this
subsection, the term `applicable financial statement' has the
meaning given such term in section 451(b)(3).
``(6) Reporting year.--For purposes of this subsection, the
term `reporting year' means any year for which an applicable
financial statement is prepared or required to be prepared.
``(7) Foreign corporations engaged in trade or business
within the united states.--For purposes of this subsection, any
foreign corporation engaged in a trade or business within the
United States shall be treated as a domestic corporation with
respect to any earnings, interest income and interest expense,
or other amount, which is effectively connected with the
conduct of a trade or business in the United States.
``(8) Regulations.--The Secretary may issue such
regulations or other guidance as are necessary or appropriate
to carry out the purposes of this subsection, including
regulations or other guidance which--
``(A) allows or requires the adjustment of amounts
reported on applicable financial statements,
``(B) allows or requires any corporation to be
included or excluded as a member of any international
financial reporting group for purposes of any
determination or calculation under this subsection,
``(C) provides rules for the application of this
subsection with respect to--
``(i) a domestic corporation that is a
partner (directly or indirectly) in a
partnership, and
``(ii) foreign corporation to which this
subsection applies by reason of paragraph
(7).''.
(b) Modification of Application of Limitation on Business Interest
to Partnerships and S Corporations.--Section 163(j)(4) is amended to
read as follows:
``(4) Application to partnerships and s corporations.--In
the case of any partnership or S corporation, this subsection
shall be applied at the partner or shareholder level,
respectively.''.
(c) Carryforward of Disallowed Interest.--
(1) In general.--Section 163 is amended by inserting after
subsection (n), as added by subsection (a), the following new
subsection:
``(o) Carryforward of Certain Disallowed Interest.--
``(1) In general.--The amount of any interest not allowed
as a deduction for any taxable year by reason of subsection
(j)(1) or (n)(1) (whichever imposes the lower limitation with
respect to such taxable year) shall be treated as interest (and
as business interest for purposes of subsection (j)(1)) paid or
accrued in the succeeding taxable year.
``(2) Limitation on carryforward.--Interest paid or accrued
in a taxable year beginning after December 31, 2021 (determined
without regard to paragraph (1)), shall not be carried forward
under paragraph (1) past the fifth taxable year following the
taxable year in which such interest was so paid or accrued. For
purposes of the preceding sentence, interest shall be treated
as allowed as a deduction on a first-in, first-out basis.''.
(2) Conforming amendments.--
(A) Section 163(j)(2) is amended to read as
follows:
``(2) Carryforward cross-reference.--For carryforward
treatment, see subsection (o).''.
(B) Section 381(c)(20) is amended to read as
follows:
``(20) Carryforward of disallowed interest.--The carryover
of disallowed interest described in section 163(o) to taxable
years ending after the date of distribution or transfer.''.
(C) Section 382(d)(3) is amended to read as
follows:
``(3) Application to carryforward of disallowed interest.--
The term `pre-change loss' shall include any carryover of
disallowed interest described in section 163(o) under rules
similar to the rules of paragraph (1).''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
(e) Transition Rule.--In the case of a partner's first succeeding
taxable year described in subclause (II) of section 163(j)(4)(B)(ii) of
the Internal Revenue Code of 1986 (as in effect before the amendment
made by subsection (b)) which begins after December 31, 2021, the
amount of excess business interest which would (but for such amendment)
be carried to such taxable year under such subclause shall be treated
as interest (and as business interest for purposes of section 163(j) of
such Code, as amended by this section) paid or accrued in such taxable
year. For carryover of any such interest disallowed for such taxable
year, see section 163(o) of such Code, as amended by this section.
Subpart C--Outbound International Provisions
SEC. 138121. MODIFICATIONS TO DEDUCTION FOR FOREIGN-DERIVED INTANGIBLE
INCOME AND GLOBAL INTANGIBLE LOW-TAXED INCOME.
(a) In General.--Section 250(a) is amended to read as follows:
``(a) In General.--In the case of a domestic corporation for any
taxable year, there shall be allowed as a deduction an amount equal to
the sum of--
``(1) 21.875 percent of the foreign-derived intangible
income of such domestic corporation for such taxable year, plus
``(2) 37.5 percent of--
``(A) the global intangible low-taxed income (if
any) which is included in the gross income of such
domestic corporation under section 951A for such
taxable year, and
``(B) the amount treated as a dividend received by
such corporation under section 78 which is attributable
to the amount described in subparagraph (A).''.
(b) Deduction Taken Into Account in Determining Net Operating Loss
Deduction.--Section 172(d) is amended by striking paragraph (9).
(c) Certain Other Modifications.--
(1) Section 250(b)(3) is amended--
(A) in subparagraph (A)(i)--
(i) by striking ``and'' at the end of
subclause (V),
(ii) by striking ``over'' at the end of
subclause (VI), and
(iii) by adding at the end the following
new subclauses:
``(VII) any income received or
accrued which is of a kind which would
be foreign personal holding company
income (as defined in section 954(c)),
``(VIII) any amount included in the
gross income of such corporation under
section 1293, and
``(IX) any disqualified
extraterritorial income, over'', and
(B) by adding at the end the following new
subparagraph:
``(C) Disqualified extraterritorial income.--
``(i) In general.--For purposes of
subparagraph (A)(i)(IX), the term `disqualified
extraterritorial income' means any amount
included in the gross income of the corporation
with respect to any transaction for any taxable
year if any amount could (determined after
application of clause (ii) but without regard
to any election under section 942(a)(3) as in
effect before its repeal) be excluded from the
gross income of the corporation with respect to
such transaction for such taxable year by
reason of section 114 pursuant to the
application of subsection (d) or (f) of section
101 of the American Jobs Creation Act of 2004.
``(ii) Election out of extraterritorial
income benefits.--
``(I) In general.--Except as
provided in subclause (II), the
corporation referred to in clause (i)
may make an irrevocable election (at
such time and in such form and manner
as the Secretary may provide) to have
subsections (d) and (f) of section 101
of the American Jobs Creation Act of
2004 not apply with respect to such
corporation for the taxable year for
which such election is made and all
succeeding taxable years (applicable
with respect to all transactions,
including transactions occurring before
such taxable year).
``(II) Expanded affiliated
groups.--In the case of any corporation
which is a member of an expanded
affiliated group, the election
described in subclause (I) may be made
only by the common parent of such group
and shall apply with respect to all
members of such group. For purposes of
the preceding sentence, the term
`expanded affiliated group' means an
affiliated group as defined in section
1504(a), determined without regard to
section 1504(b)(3) and by substituting
`more than 50 percent' for `at least 80
percent' each place it appears.''.
(2) Section 613A(d)(1) is amended by striking ``and'' at
the end of subparagraph (D), by striking the period at the end
of subparagraph (E) and inserting ``, and'', and by inserting
after subparagraph (E) the following new subparagraph:
``(F) any deduction allowable under section 250.''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years beginning after December 31, 2021.
(2) Certain other modifications.--The amendments made by
subsection (c) shall apply to taxable years beginning after
December 31, 2017.
(e) Transitional Rule for Accelerated Percentage Reduction.--
(1) In general.--In the case of any taxable year which
includes December 31, 2021 (other than a taxable year with
respect to which such date is the last day of such taxable
year)--
(A) the percentage in effect under section
250(a)(1)(A) of the Internal Revenue Code of 1986 shall
be treated as being equal to the sum of--
(i) the pre-effective date percentage of
37.5 percent, plus
(ii) the post-effective date percentage of
21.875 percent, and
(B) the percentage in effect under section
250(a)(1)(B) of such Code shall be treated as being
equal to the sum of--
(i) the pre-effective date percentage of 50
percent, plus
(ii) the post-effective date percentage of
37.5 percent.
(2) Pre- and post-effective date percentages.--For purposes
of this subsection, with respect to any taxable year--
(A) the term ``pre-effective date percentage''
means the ratio that the portion of such taxable year
which precedes January 1, 2022, bears to the entire
taxable year, and
(B) the term ``post-effective date percentage''
means the ratio that the remainder of such taxable year
bears to the entire taxable year.
SEC. 138122. REPEAL OF ELECTION FOR 1-MONTH DEFERRAL IN DETERMINATION
OF TAXABLE YEAR OF SPECIFIED FOREIGN CORPORATIONS.
(a) In General.--Section 898(c) is amended by striking paragraph
(2) and redesignating paragraph (3) as paragraph (2).
(b) Effective Date.--The amendments made by this section shall
apply to taxable years of specified foreign corporations beginning
after November 30, 2021.
(c) Transition Rule.--A taxpayer's first taxable year beginning
after November 30, 2021, shall end at the same time as the first
required year (within the meaning of section 898(c)(1) of the Internal
Revenue Code of 1986) ending after such date.
SEC. 138123. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO
CERTAIN TAXPAYERS RECEIVING SPECIFIC ECONOMIC BENEFITS.
(a) In General.--Section 901 is amended by redesignating subsection
(n) as subsection (o) and by inserting after subsection (m) the
following new subsection:
``(n) Special Rules Relating to Dual Capacity Taxpayers.--
``(1) General rule.--Notwithstanding any other provision of
this chapter, any amount paid or accrued by a dual capacity
taxpayer to a foreign country or possession of the United
States for any period shall not be considered a tax--
``(A) if, for such period, the foreign country or
possession does not impose a generally applicable
income tax, or
``(B) to the extent such amount exceeds the amount
which would be paid or accrued by such dual capacity
taxpayer under the generally applicable income tax
imposed by such country or possession if such taxpayer
were not a dual capacity taxpayer.
Nothing in this paragraph shall be construed to imply
the proper treatment of any such amount not in excess
of the amount determined under subparagraph (B).
``(2) Dual capacity taxpayer.--For purposes of this
subsection, the term `dual capacity taxpayer' means, with
respect to any foreign country or possession of the United
States, a person who--
``(A) is subject to a levy of such country or
possession, and
``(B) receives (or will receive) directly or
indirectly a specific economic benefit from such
country or possession.
``(3) Generally applicable income tax.--For purposes of
this subsection, the term `generally applicable income tax'
means an income tax (or a series of income taxes) which is
generally imposed under the laws of a foreign country or
possession of the United States on residents of such foreign
country or possession that are not dual capacity taxpayers.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years of foreign corporations beginning after December
31, 2021, and to taxable years of United States shareholders in which
or with which such taxable years of foreign corporations end.
SEC. 138124. MODIFICATIONS TO FOREIGN TAX CREDIT LIMITATIONS.
(a) Country-by-country Application of Limitation on Foreign Tax
Credit Based on Taxable Units.--
(1) In general.--Section 904 is amended by inserting after
subsection (d) the following new subsection:
``(e) Country-by-country Application Based on Taxable Units.--
``(1) In general.--The provisions of subsections (a), (b),
(c), and (d) and sections 907 and 960 shall be applied
separately with respect to each country by taking into account
the aggregate income properly attributable or otherwise
allocable to a taxable unit of the taxpayer which is a tax
resident of such country.
``(2) Taxable units.--
``(A) In general.--Except as otherwise provided by
the Secretary, each item shall be attributable or
otherwise allocable to exactly one taxable unit of the
taxpayer.
``(B) Determination of taxable units.--Except as
otherwise provided by the Secretary, the taxable units
of a taxpayer are as follows:
``(i) General taxable unit.--The person
that is the taxpayer and that is not otherwise
described in a separate clause of this
subparagraph.
``(ii) Controlled foreign corporations.--
Each controlled foreign corporation with
respect to which the taxpayer is a United
States shareholder.
``(iii) Interests in pass-through
entities.--Each interest held (directly or
indirectly) by the taxpayer or any controlled
foreign corporation referred to in clause (ii)
in a pass-through entity if such pass-through
entity is a tax resident of a country other
than the country with respect to which such
taxpayer or controlled foreign corporation (as
the case may be) is a tax resident.
``(iv) Branches.--Each branch (or portion
thereof) the activities of which are directly
or indirectly carried on by the taxpayer or any
controlled foreign corporation referred to in
clause (ii) and which give rise to a taxable
presence in a country other than the country in
which the taxpayer or any such controlled
foreign corporation (as the case may be) is a
tax resident.
``(3) Definitions and special rules.--For purposes of this
subsection--
``(A) Tax resident.--Except as otherwise provided
by the Secretary, the term `tax resident' means a
person or arrangement subject to tax under the tax law
of a country as a resident, or a person or arrangement
that gives rise to a taxable presence by reason of its
activities in such country. If an entity is organized
under the law of a country, or resident in a country,
that does not impose an income tax with respect to such
entity, such entity shall, except as provided by the
Secretary, be treated as subject to tax under the tax
law of such country for the purposes of the preceding
sentence.
``(B) Pass-through entity.--Except as otherwise
provided by the Secretary, the term `pass-through
entity' includes any partnership or other entity or
arrangement to the extent that income, gain, deduction,
or loss of the entity is taken into account in
determining the income or loss of a person that owns
(directly or indirectly) an interest in such entity.
``(C) Branch.--Except as otherwise provided by the
Secretary, the term `branch' means a taxable presence
of a tax resident in a country other than its country
of residence as determined under such other country's
tax law. The Secretary shall provide regulations or
other guidance applying such term to activities in a
country that does not subject income to tax on the
basis of residence or taxable presence.
``(D) Treatment of fiscally autonomous
jurisdictions.--Any fiscally autonomous jurisdiction
shall be treated as a separate country. Any possession
of the United States shall also be treated as separate
country. For purposes of the preceding sentence, the
term `possession of the United States' means each of
American Samoa, the Commonwealth of the Northern
Mariana Islands, the Commonwealth of Puerto Rico, Guam,
and the Virgin Islands.
``(4) Regulations.--The Secretary shall issue such
regulations or other guidance as may be necessary or
appropriate to carry out, or prevent avoidance of, the purposes
of this subsection, including regulations or other guidance--
``(A) providing for the application of this
subsection to entities, arrangements, and branches that
are otherwise considered a resident of more than one
country or no country,
``(B) providing for the application of this
subsection to hybrid entities or hybrid transactions
(as such terms are used for purposes of section 267A),
pass-through entities, passive foreign investment
companies, trusts, and other entities or arrangements
not otherwise described in this subsection, and
``(C) providing for the assignment of any item
(including foreign taxes and deductions) to taxable
units, including in the case of amounts not otherwise
taken into account in determining taxable income under
this chapter.''.
(2) Application of recapture of overall foreign loss.--
Section 904(f)(5)(E)(i) is amended by inserting ``applied
separately with respect to each country (within the meaning of
subsection (e)) as provided in subsection (e)'' before the
period at the end.
(3) Application of separate limitation losses with respect
to global intangible low-taxed income.--Section 904(f)(5) is
amended by adding at the end the following new subparagraph:
``(G) Special rule with respect to global
intangible low-taxed income.--The amount of the
separate limitation losses for any taxable year shall
reduce income described in subparagraph (d)(1)(A) for
such taxable year only to the extent the aggregate
amount of such losses exceeds the aggregate amount of
the separate limitation incomes for such taxable year.
For purposes of this subparagraph, separate limitation
income shall exclude income described in subparagraph
(d)(1)(A) for the taxable year.''.
(b) Repeal of Separate Application to Foreign Branch Income.--
(1) In general.--Section 904(d)(1) is amended by striking
subparagraph (B) and redesignating subparagraphs (C) and (D) as
subparagraph (B) and (C).
(2) Coordination with deduction for foreign-derived
intangible income.--Section 205(b)(3)(A) is amended--
(A) by striking subclause (VI) of clause (i) and
inserting the following new subclause:
``(VI) the income of a United
States person which is attributable to
1 or more branches (which would be
referred to in clause (iv) of section
904(e)(2)(B) if such clause were
applied without regard to any reference
to a controlled foreign corporation) or
pass-through entities (which would be
referred to in clause (iii) of section
904(e)(2)(B) if such clause were
applied without regard to any reference
to a controlled foreign corporation) in
1 or more foreign countries, over'',
and
(B) by adding at the end the following flush
sentence:
``For purposes of clause (i)(VI), the amount of income
attributable to a branch or pass-through entity shall
be determined under rules established by the
Secretary.''.
(3) Conforming amendments.--
(A) Section 904(d)(2)(A)(ii) is amended by striking
``, foreign branch income,''.
(B) Section 904(d)(2) is amended by striking
subparagraph (J).
(c) Modification of Foreign Tax Credit Carryback and
Carryforward.--
(1) Carryover limited to 5 taxable years.--
(A) In general.--Section 904(c) is amended by
striking ``10 succeeding taxable years'' and inserting
``5 succeeding taxable years''.
(B) Conforming amendment.--Section 6511(d)(3)(A) is
amended by striking ``10 years'' and inserting ``5
years''.
(2) Repeal of carryback.--Section 904(c) is amended--
(A) by striking ``in the first preceding taxable
year, and'',
(B) by striking ``preceding or'' each place it
appears, and
(C) by striking ``Carryback and'' in the heading
thereof.
(3) Carryover applicable to tax on global intangible low-
taxed income.--Section 904(c) is amended by striking the last
sentence.
(4) Application to limitation on foreign oil and gas
taxes.--Section 907(f)(1) is amended--
(A) by striking ``in the first preceding taxable
year and'', and
(B) by striking ``first 10'' and inserting ``first
5''.
(d) Treatment of Certain Tax-exempt Dividends.--
(1) Certain tax-exempt dividends taken into account in
applying limitations on foreign tax credits.--Section 904(b) is
amended by striking paragraph (4).
(2) Certain tax-exempt dividends not taken into account in
allocating interest expense.--Section 864(e)(3) is amended by
striking ``or 245(a)'' and inserting ``, 245(a), or 245A''.
(e) Rules for Allocation of Certain Deductions to Foreign Source
Global Intangible Low-taxed Income for Purposes of Foreign Tax Credit
Limitation.--Section 904(b), as amended by the preceding provisions of
this Act, is amended by adding at the end the following new paragraph:
``(4) Deductions treated as allocable to foreign source
global intangible low-taxed income.--In the case of a domestic
corporation and solely for purposes of the application of
subsection (a) with respect to amounts described in subsection
(d)(1)(A), the taxpayer's taxable income from sources without
the United States shall be determined by--
``(A) allocating any deduction allowed under
section 250 to such income, and
``(B) by treating any expense of such domestic
corporation as not allocable to such income.''.
(f) Treatment of Certain Asset Dispositions.--Section 904(b), as
amended by the preceding provisions of this Act, is amended by adding
at the end the following new paragraph:
``(5) Treatment of certain asset dispositions.--
``(A) In general.--Except as otherwise provided by
the Secretary, in the case of any covered asset
disposition, the principles of section 338(h)(16) shall
apply in determining the source and character of any
item for purposes of this part.
``(B) Covered asset disposition.--For purposes of
this paragraph, the term `covered asset disposition'
means any transaction which--
``(i) is treated as a disposition of assets
for purposes of subchapter N of this chapter,
and
``(ii) is treated as a disposition of stock
of a corporation (or is disregarded) for
purposes of the tax laws of the relevant
foreign country or possession of the United
States.
``(C) Regulations.--The Secretary shall issue such
regulations or other guidance as is necessary or
appropriate to carry out, or to the prevent the
avoidance of, the purposes of this paragraph.''.
(g) Redetermination of Foreign Taxes and Related Claims.--
(1) In general.--Section 905(c)(1) is amended by striking
``or'' at the end of subparagraph (B) and by inserting after
subparagraph (C) the following new subparagraphs:
``(D) the taxpayer makes a timely change in its
choice to claim a credit or deduction for taxes paid or
accrued, or
``(E) there is any other change in the amount, or
treatment, of taxes, which affects the taxpayer's tax
liability under this chapter.''.
(2) Modification to time for claiming credit or
deduction.--Section 901(a) is amended by striking the second
sentence and inserting the following: ``The choice to claim a
credit for such amounts may be made at any time before the
expiration of the period prescribed by section 6511(d)(3)(A),
and the choice to claim a deduction in lieu of a credit may be
made at any time before the expiration of the period prescribed
by section 6511(a), for making a claim for refund or credit of
the tax imposed by this chapter for such taxable year, or such
later period prescribed by section 6511(c) if the period is
extended by agreement.''.
(3) Modification to special period of limitation.--Section
6511(d)(3)(A) is amended--
(A) by inserting ``change in the liability for''
before ``any taxes paid or accrued'',
(B) by striking ``actually paid'' and inserting
``paid (or deemed paid under section 960)'', and
(C) by inserting ``change in the liability for''
before ``foreign taxes'' in the heading thereof.
(h) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years beginning after December 31, 2021.
(2) Modification of foreign tax credit carryback and
carryforward.--Except as otherwise provided in paragraph (3),
the amendments made by subsection (c) shall apply to taxes paid
or accrued in taxable years beginning after December 31, 2021.
(3) Certain modifications.--The amendment made by
subsection (c)(4)(B) shall apply to taxable years of foreign
corporations beginning after December 31, 2017, and to taxable
years of United States shareholders in which or with which such
taxable years of foreign corporations end.
(4) Redetermination of foreign taxes and related claims.--
The amendments made by subsection (g) shall take effect on the
date which is 60 days after the date of the enactment of this
Act.
(i) Regulations.--The Secretary shall prescribe rules providing for
the application of subsection (e) of section 904 of the Internal
Revenue Code of 1986, as added by this section, to any amounts carried
over under subsection (c) of such section from a taxable year with
respect to which such subsection (e) did not apply to a taxable year
with respect to which such subsection (e) does apply.
SEC. 138125. FOREIGN OIL AND GAS EXTRACTION INCOME AND FOREIGN OIL
RELATED INCOME TO INCLUDE OIL SHALE AND TAR SANDS.
(a) In General.--Paragraphs (1)(A) and (2)(A) of section 907(c) are
each amended by inserting ``(or oil shale or tar sands)'' after ``oil
or gas wells''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years of foreign corporations beginning after December
31, 2021, and to taxable years of United States shareholders in which
or with which such taxable years of foreign corporations end.
SEC. 138126. MODIFICATIONS TO INCLUSION OF GLOBAL INTANGIBLE LOW-TAXED
INCOME.
(a) Country-by-country Application of Section Based on CFC Taxable
Units.--Section 951A is amended by adding at the end the following new
subsection:
``(g) Country-by-country Application of Section Based on CFC
Taxable Units.--
``(1) In general.--If any CFC taxable unit of a United
States shareholder is a tax resident of a country which is
different from the country with respect to which any other CFC
taxable unit of such United States shareholder is a tax
resident--
``(A) such shareholder's global intangible low-
taxed income for purposes of subsection (a) shall be
the sum of the amounts of global intangible low-taxed
income determined separately with respect to each
country with respect to which any CFC taxable unit of
such shareholder is a tax resident, and
``(B) for purposes of determining such separate
amounts of global intangible low-taxed income--
``(i) any reference in subsection (b), (c),
or (d) to a controlled foreign corporation of
such shareholder shall be treated as reference
to a CFC taxable unit of such shareholder, and
``(ii) net CFC tested income, net deemed
tangible income return, qualified business
asset investment, interest expense described in
subsection (b)(2)(B), and such other items and
amounts as the Secretary may provide, shall be
determined separately with respect to each such
country by determining such amounts with
respect to each CFC taxable unit of such
shareholder which is a tax resident of such
country.
``(2) Definitions.--For purposes of this subsection--
``(A) CFC taxable unit.--The term `CFC taxable
unit' means any taxable unit described clause (ii),
(iii), or (iv) of section 904(e)(2)(B) (determined
without regard to the references to the taxpayer in
clauses (iii) and (iv) of such section).
``(B) Application of other definitions.--Terms used
in this subsection which are also used in section
904(e) shall have the same meaning as when used in such
section.
``(3) Special rules.--For purposes of this subsection--
``(A) Application of certain rules.--Except as
otherwise provided by the Secretary, rules similar to
the rules of section 904(e) shall apply.
``(B) Allocation of global intangible low-taxed
income to controlled foreign corporations.--Except as
otherwise provided by the Secretary, subsection (f)(2)
shall be applied separately with respect to each CFC
taxable unit.''.
(b) Regulatory Authority.--
(1) In general.--Section 951A, as amended by subsection
(a), is amended by adding at the end the following new
subsection:
``(h) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out, or
prevent the avoidance of, the purposes of this section, including
regulations or guidance which provide for--
``(1) the treatment of property if such property is
transferred, or held, temporarily,
``(2) the treatment of property if the avoidance of the
purposes of this section is a factor in the transfer or holding
of such property, and
``(3) appropriate adjustments to the basis of stock and
other ownership interests, and to earnings and profits, to
reflect tested losses.''.
(2) Conforming amendment.--Section 951A(d) is amended by
striking paragraph (4).
(3) Additional regulatory authority.--Section 951A(h), as
added by paragraph (1), is amended by striking ``and'' at the
end of paragraph (2), by striking the period at the end of
paragraph (3) and inserting a comma, and by adding at the end
the following new paragraphs:
``(4) rules similar to the rules provided under the
regulations or guidance issued under section 904(e)(5),
``(5) appropriate basis adjustments, and
``(6) appropriate adjustment to made, and appropriate tax
attributes and records to be maintained, separately with
respect to CFC taxable units.''.
(c) Carryover of Net CFC Tested Loss.--
(1) In general.--Section 951A(c) is amended by adding at
the end the following new paragraph:
``(3) Carryover of net cfc tested loss.--
``(A) In general.--If the amount described in
paragraph (1)(B) with respect to any United States
shareholder for any taxable year of such United States
shareholder (determined after the application of this
paragraph) exceeds the amount described in paragraph
(1)(A) with respect to such shareholder of such taxable
year, the amount otherwise described in paragraph
(1)(B) with respect to such shareholder for the
succeeding taxable year shall be increased by the
amount of such excess.
``(B) Proper adjustment in allocations of global
intangible low-taxed income to controlled foreign
corporations.--Proper adjustments shall be made in the
application of subsection (f)(2)(B) to take into
account any decrease in global intangible low-taxed
income by reason of the application of subparagraph
(A).''.
(2) Coordination with country-by-country application.--
Section 951A(g)(1)(B)(ii), as added by subsection (a), is
amended by inserting ``any increase determined under subsection
(c)(3)(A),'' after ``interest expense described in subsection
(b)(2)(B),''.
(3) Application of rules with respect to ownership
changes.--Section 382(d) is amended by adding at the end the
following new paragraph:
``(4) Application to carryover of net cfc tested loss.--The
term `pre-change loss' shall include any excess carried over
under section 951A(c)(3) under rules similar to the rules of
paragraph (1).''.
(d) Reduction in Net Deemed Tangible Income Return for Purposes of
Determining Global Intangible Low-taxed Income.--
(1) In general.--Section 951A(b)(2)(A) is amended by
striking ``10 percent'' and inserting ``5 percent''.
(2) Application to assets located in possessions of the
united states.--Section 951A(b) is amended by adding at the end
the following new paragraph:
``(3) Application to assets located in possessions of the
united states.--In the case of any specified tangible property
located in a possession of the United States, paragraph (2)(A)
and subsection (d) shall be applied by substituting `10
percent' for `5 percent' in paragraph (2)(A).''.
(e) Inclusion of Foreign Oil and Gas Extraction Income in
Determining Tested Income and Loss.--Section 951A(c)(2)(A) is amended
by inserting ``and'' at the end of subclause (III), by striking ``and''
at the end of subclause (IV) and inserting ``over'', and by striking
subclause (V).
(f) Coordination With Other Provisions.--Section 951A(f)(1) is
amended by adding at the end the following new subparagraph:
``(C) Treatment of certain references.--Except as
otherwise provided by the Secretary, references to
section 951 or section 951(a) in sections 959, 961, 962
and such other sections as the Secretary may identify
shall include references to section 951A or section
951A(a), respectively.''.
(g) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years of foreign corporations beginning after December
31, 2021, and to taxable years of United States shareholders in
which or with which such taxable years of foreign corporations
end.
(2) Certain related modifications.--The amendments made by
subsections (b)(1), (b)(2), and (f) shall apply to taxable
years of foreign corporations beginning after December 31,
2017, and to taxable years of United States shareholders in
which or with which such taxable years of foreign corporations
end.
SEC. 138127. MODIFICATIONS TO DETERMINATION OF DEEMED PAID CREDIT FOR
TAXES PROPERLY ATTRIBUTABLE TO TESTED INCOME.
(a) Increase in Deemed Paid Credit.--Section 960(d)(1) is amended
by striking ``80 percent'' and inserting ``95 percent (100 percent in
the case of tested foreign income taxes paid or accrued to a possession
of the United States)''.
(b) Inclusion of Taxes Properly Attributable to Tested Loss.--
Section 960(d)(3) is amended to read as follows:
``(3) Tested foreign income taxes.--For purposes of
paragraph (1), the term `tested foreign income taxes' means,
with respect to any domestic corporation which is a United
States shareholder of a controlled foreign corporation, such
shareholder's pro rata share (as determined under section
951A(e)(1)) of--
``(A) the foreign income taxes (within the meaning
of section 904(d)(2)(F)) which are properly
attributable to amounts taken into account in
determining tested income or tested loss under section
951A(b)(2), and
``(B) solely to the extent provided in regulations
prescribed by the Secretary, the foreign income taxes
(as so defined) paid or accrued by a foreign
corporation (other than such controlled foreign
corporation) which owns, directly or indirectly, 80
percent or more (by vote or value) of the stock in such
domestic corporation but only if--
``(i) such foreign income taxes are
properly attributable to amounts of such
controlled foreign corporation taken into
account in determining tested income or tested
loss under section 951A(b)(2), and
``(ii) no credit is allowed, in whole or in
part, for such foreign taxes in any foreign
jurisdiction.''.
(c) Application of Foreign Tax Credit Limitation to Amounts
Included Under Section 78.--
(1) Section 904(d)(2) is amended by redesignating
subparagraph (K) as subparagraph (L) and by inserting after
subparagraph (J) the following new subparagraph:
``(K) Amounts includible under section 78.--Any
amount includible in gross income under section 78
shall be treated as income in the same separate
category as the related foreign taxes deemed paid.''.
(2) Section 904(d)(3)(G) is amended by striking the second
sentence and inserting the following: ``Any amount included in
gross income under section 78 shall not be treated as a
dividend.''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years of
foreign corporations beginning after December 31, 2021, and to
taxable years of United States shareholders in which or with
which such taxable years of foreign corporations end.
(2) Application of foreign tax credit limitation to amounts
included under section 78.--The amendments made by subsection
(c) shall apply to taxable years beginning after December 31,
2017.
SEC. 138128. DEDUCTION FOR FOREIGN SOURCE PORTION OF DIVIDENDS LIMITED
TO CONTROLLED FOREIGN CORPORATIONS, ETC.
(a) In General.--Section 245A is amended--
(1) in subsections (a), (c)(1), and (c)(2), by striking
``specified 10-percent owned foreign corporation'' each place
it appears and inserting ``controlled foreign corporation'',
and
(2) by striking subsection (b).
(b) Modifications Related to Determination of Status as a
Controlled Foreign Corporation.--
(1) Subpart F of part III of subchapter N of chapter 1 is
amended by inserting after section 951A the following new
section:
``SEC. 951B. AMOUNTS INCLUDED IN GROSS INCOME OF FOREIGN CONTROLLED
UNITED STATES SHAREHOLDERS.
``(a) In General.--In the case of any foreign controlled United
States shareholder of a foreign controlled foreign corporation--
``(1) this subpart (other than sections 951A, 951(b), 957,
and 965) shall be applied with respect to such shareholder
(separately from, and in addition to, the application of this
subpart without regard to this section)--
``(A) by substituting `foreign controlled United
States shareholder' for `United States shareholder'
each place it appears therein, and
``(B) by substituting `foreign controlled foreign
corporation' for `controlled foreign corporation' each
place it appears therein, and
``(2) sections 951A and 965 shall be applied with respect
to such shareholder --
``(A) by treating each reference to `United States
shareholder' in such sections as including a reference
to such shareholder, and
``(B) by treating each reference to `controlled
foreign corporation' in such sections as including a
reference to such foreign controlled foreign
corporation.
``(b) Foreign Controlled United States Shareholder.--For purposes
of this section, the term `foreign controlled United States
shareholder' means, with respect to any foreign corporation, any United
States person which would be a United States shareholder with respect
to such foreign corporation if--
``(1) section 951(b) were applied by substituting `more
than 50 percent' for `10 percent or more', and
``(2) section 958(b) were applied without regard to
paragraph (4) thereof.
``(c) Foreign Controlled Foreign Corporation.--For purposes of this
section, the term `foreign controlled foreign corporation' means a
foreign corporation, other than a controlled foreign corporation, which
would be a controlled foreign corporation if section 957(a) were
applied--
``(1) by substituting `foreign controlled United States
shareholders' for `United States shareholders', and
``(2) by substituting `section 958(b) (other than paragraph
(4) thereof)' for `section 958(b)'.
``(d) Regulations.--The Secretary shall prescribe such regulations
or other guidance as may be necessary or appropriate to carry out the
purposes of this section, including regulations or other guidance--
``(1) to treat a foreign controlled United States
shareholder or a foreign controlled foreign corporation as a
United States shareholder or as a controlled foreign
corporation, respectively, for purposes of provisions of this
title other than this subpart, and
``(2) to prevent the avoidance of the purposes of this
section.''.
(2) Section 957(a) is amended to read as follows:
``(a) Controlled Foreign Corporation.--For purposes of this title--
``(1) In general.--The term `controlled foreign
corporation' means any foreign corporation if more than 50
percent of--
``(A) the total combined voting power of all
classes of stock of such corporation entitled to vote,
or
``(B) the total value of the stock of such
corporation,
is owned (within the meaning of section 958(a)), or is
considered as owned by applying the rules of ownership of
section 958(b), by United States shareholders on any day during
the taxable year of such foreign corporation.
``(2) Election to treat a foreign corporation as a
controlled foreign corporation for certain purposes.--
``(A) In general.--In the case of a foreign
corporation with respect to which an election is in
effect under this paragraph, such foreign corporation
shall be treated as controlled foreign corporation with
respect to all United States shareholders of such
foreign corporation.
``(B) Exceptions.--Notwithstanding subparagraph
(A), such foreign corporation shall not be treated as a
controlled foreign corporation for purposes of section
951B(c) or for any other purpose if the Secretary
determines that treatment of such foreign corporation
as a controlled foreign corporation for such purpose
would be inconsistent with the purposes of this
subchapter.
``(C) Election.--
``(i) By whom.--An election under
subparagraph (A) shall be effective only if
made by the foreign corporation and by all
United States shareholders of such foreign
corporation (determined as of the time of such
election by such foreign corporation).
``(ii) With respect to whom.--Any election
under this paragraph, once effective, shall
apply to such foreign corporation and to all
United States shareholders of such foreign
corporation (including any person who becomes a
United States shareholder of such foreign
corporation after such election takes effect).
``(iii) Time, manner, etc.--The election
under this paragraph shall be made at such time
and in such manner as the Secretary may provide
and, once effective, may be revoked only with
the consent of the Secretary.
``(D) Regulations.--The Secretary shall issue such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this
paragraph, including regulations or other guidance for
the application of this paragraph to an acquisition of
assets described in section 381(a) from any corporation
with respect to which an election under this paragraph
applies.''.
(3) Section 958(b) is amended--
(A) by inserting after paragraph (3) the following:
``(4) Subparagraphs (A), (B), and (C) of section 318(a)(3)
shall not be applied so as to consider a United States person
as owning stock which is owned by a person who is not a United
States person.'', and
(B) by striking ``Paragraph (1)'' in the last
sentence and inserting ``Paragraphs (1) and (4)''.
(4) The table of sections for subpart F of part III of
subchapter N of chapter 1 is amended by inserting after the
item relating to section 951A the following new item:
``Sec. 951B. Amounts included in gross income of foreign controlled
United States shareholders.''.
(c) Certain Other Modifications.--
(1) Section 245A(b)(1) is amended by striking ``with
respect to such corporation''.
(2) Section 245A(e)(4) is amended by striking ``an amount
received'' and all that follows through ``for which the
controlled foreign corporation received a deduction'' and
inserting ``any dividend received from a controlled foreign
corporation for which such controlled foreign corporation
received a deduction''.
(3) Section 245A(e)(1) is amended--
(A) by striking ``any dividend'' and inserting
``any hybrid dividend'', and
(B) by striking ``if the dividend is a hybrid
dividend''.
(4) Section 245A(g) is amended to read as follows:
``(g) Regulations.--The Secretary shall prescribe such regulations
or other guidance as may be necessary or appropriate to carry out the
provisions of this section, including regulations or other guidance
for--
``(1) the treatment of United States shareholders owning
stock of a controlled foreign corporation through a
partnership, and
``(2) the denial of all or a portion of the deduction under
this section with respect to dividends received from foreign
corporations in situations in which--
``(A) any portion of the dividend is out of
earnings and profits arising from dispositions to
related parties which--
``(i) are not made in the ordinary course
of a trade or business, and
``(ii) are made on or after January 1,
2018, and during a taxable year to which
section 951A did not apply, or
``(B) a transfer or issuance of stock on or after
January 1, 2018, results in a reduction in the United
States shareholder's pro rata share of a controlled
foreign corporation's subpart F income or tested income
(as defined in section 951A).''.
(5) Section 246(b)(1) is amended to read as follows:
``(1) General rule.--Except as provided in paragraph (2),
the aggregate amount of the deductions allowed by section
243(a)(1) and subsection (a) and (b) of section 245 shall not
exceed the percentage determined under paragraph (3) of the
taxable income computed without regard to the deductions
allowed by section 172, section 243(a)(1), subsections (a) and
(b) of section 245, and section 250, without regard to any
adjustment under section 1059, and without regard to any
capital loss carryback to the taxable year under section
1212(a)(1).''.
(6) Section 246(c)(1) is amended by striking ``section
243'' and all that follows through ``245A'' and inserting
``section 243, 245, or 245A''.
(7) For purposes of section 78 of the Internal Revenue Code
of 1986, as in effect on the day before the enactment of Public
Law 115-97, with respect to taxable years of foreign
corporations beginning before January 1, 2018, and ending after
December 31, 2017, any reference to section 245 of such Code
shall be treated as including a reference to section 245A of
such Code (as added by such Public Law).
(d) Effective Dates.--
(1) In general.--The amendment made by subsection (a) shall
apply to distributions made after the date of the enactment of
this Act.
(2) Modifications related to determination of status as a
controlled foreign corporation.--The amendments made by
subsection (b) shall apply to--
(A) the last taxable year of foreign corporations
beginning before January 1, 2018, and each subsequent
taxable year of such foreign corporations, and
(B) taxable years of United States persons in which
or with which such taxable years of foreign
corporations end.
(3) Certain other modifications.--The amendments made by
subsection (c) shall apply to distributions made after December
31, 2017.
SEC. 138129. LIMITATION ON FOREIGN BASE COMPANY SALES AND SERVICES
INCOME.
(a) Foreign Base Company Sales Income.--Section 954(d)(2) is
amended to read as follows:
``(2) Limitation.--
``(A) In general.--For purposes of this subsection,
the term `related person' shall not include any person
unless such person is a taxable unit (within the
meaning of section 904(e)) which is a tax resident of
the United States.
``(B) Regulations.--The Secretary shall issue such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this
paragraph, including regulations or other guidance
providing for the proper application of subparagraph
(A) in the case of a series of transactions in which a
person described in subparagraph (A) is a party.''.
(b) Foreign Base Company Services Income.--Section 954(e)(1)(A) is
amended by striking ``subsection (d)(3)'' and inserting ``subsection
(d)''.
(c) Certain Other Modifications.--
(1)(A) Section 951(a)(1) is amended--
(i) by striking ``the last day'' in the matter
preceding subparagraph (A) and inserting ``any day'',
(ii) by striking ``his'' each place it appears and
inserting ``such shareholder's'', and
(iii) by inserting ``if such shareholder owns
(within the meaning of section 958(a)) stock of such
foreign corporation as of the close of the last
relevant day of such foreign corporation's taxable
year,'' before ``the amount'' in subparagraph (B).
(B) Section 951(a) is amended by striking paragraph (2) and
inserting the following new paragraphs:
``(2) Pro rata share of subpart f income.--In the case of
any United States shareholder with respect to a foreign
corporation, the pro rata share referred to in paragraph (1)(A)
is the sum of--
``(A) if such shareholder owns (within the meaning
of section 958(a)) stock of such foreign corporation as
of the close of the last relevant day of such foreign
corporation's taxable year, such shareholder's general
pro rata share determined under paragraph (3), plus
``(B) if such shareholder owns (within the meaning
of section 958(a)) stock of such foreign corporation
during such taxable year but does not own (within the
meaning of section 958(a)) such stock as of the close
of such last relevant day, such shareholder's nontaxed
current dividend share determined under paragraph (4).
``(3) General pro rata share.--
``(A) In general.--In the case of any United States
shareholder with respect to a foreign corporation, the
general pro rata share determined under this paragraph
is the excess (if any) of--
``(i) the pro rata current earnings
percentage of the amount which bears the same
ratio to such corporation's subpart F income
for the taxable year (reduced by the aggregate
nontaxed current dividend shares determined
under paragraph (4) with respect to such
shareholder or any other United States
shareholder) as the part of such year during
which such corporation is a controlled foreign
corporation bears to the entire year, over
``(ii) the lesser of--
``(I) the amount of any pre-holding
period dividends with respect to stock
of such foreign corporation which such
shareholder owns (within the meaning of
section 958(a)) as of the close of the
last relevant day of such foreign
corporation's taxable year, or
``(II) the amount which bears the
same ratio to the subpart F income of
such corporation for the taxable year
(reduced by the aggregate nontaxed
current dividend shares determined
under paragraph (4) with respect to
such shareholder or any other United
States shareholder) as the part of such
year during which such shareholder did
not own (within the meaning of section
958(a)) such stock bears to the entire
year.
``(B) Pro rata current earnings percentage.--For
purposes of subparagraph (A)(i), the term `pro rata
current earnings percentage' means, in the case of any
United States shareholder with respect to a foreign
corporation for any taxable year of such foreign
corporation, the ratio (expressed as a percentage) of--
``(i) the amount which would have been
distributed with respect to the stock which
such shareholder owns (within the meaning of
section 958(a)) in such corporation if on the
last relevant day of such taxable year it had
distributed its earnings and profits for such
taxable year (computed as of the close of such
taxable year without diminution by reason of
any distributions made during such taxable
year), divided by
``(ii) such corporation's earnings and
profits for such taxable year (as so computed).
``(C) Pre-holding period dividends.--For purposes
of subparagraph (A)(ii)(I), the term `pre-holding
period dividends' means, in the case of any United
States shareholder with respect to a foreign
corporation for any taxable year of such foreign
corporation, dividends which are--
``(i) made out of such corporation's
earnings and profits for the taxable year
(other than nontaxed current dividends as
defined in paragraph (4)(C)), and
``(ii) received--
``(I) by any other United States
person with respect to stock of such
foreign corporation which such
shareholder owns (within the meaning of
section 958(a)) as of the close of the
last relevant day of such foreign
corporation's taxable year, and
``(II) while such foreign
corporation was a controlled foreign
corporation and before such shareholder
owned (within the meaning of section
958(a)) such stock.
``(4) Nontaxed current dividend share.--
``(A) In general.--In the case of any United States
shareholder with respect to a foreign corporation, the
nontaxed current dividend share determined under this
paragraph is the nontaxed current dividend percentage
of the subpart F income of such foreign corporation for
the taxable year.
``(B) Nontaxed current dividend percentage.--For
purposes of this paragraph, the term `nontaxed current
dividend percentage' means, in the case of any United
States shareholder with respect to a foreign
corporation for any taxable year of such foreign
corporation, the ratio (expressed as a percentage) of--
``(i) the amount of nontaxed current
dividends with respect to such taxable year
received with respect to the stock of such
foreign corporation which such shareholder owns
(within the meaning of section 958(a)) at the
time of the dividend on a day in which such
corporation is a controlled foreign
corporation, divided by
``(ii) such foreign corporation's earnings
and profits for such taxable year (computed as
of the close of such taxable year without
diminution by reason of any distributions made
during such taxable year).
``(C) Nontaxed current dividends.--For purposes of
this paragraph, the term `nontaxed current dividends'
means the portion of any amount received with respect
to stock to the extent such amount (without regard to
amounts included in the gross income of a United States
shareholder for the taxable year by reason of this
subpart)--
``(i) would result in a dividend out of the
corporation's earnings and profits for the
taxable year (including a dividend under
section 1248 attributable to earnings and
profits for the taxable year), and
``(ii) either--
``(I) would give rise to a
deduction under section 245A(a), or
``(II) in the case of a dividend
paid directly or indirectly to a
controlled foreign corporation with
respect to stock owned by the
shareholder within the meaning of
section 958(a)(2), would not result in
subpart F income with respect to such
controlled foreign corporation by
reason of subsection (b)(4), (c)(3), or
(c)(6) of section 954.
Any amount treated as the foreign-source
portion of a dividend under section 245A(g)
shall be treated as nontaxed current dividends
for purposes of this paragraph.
``(5) Last relevant day of taxable year of a controlled
foreign corporation.--For purposes of this subsection, the term
`last relevant day' means, with respect to any taxable year of
a foreign corporation, the last day of such taxable year on
which such corporation is a controlled foreign corporation.
``(6) Regulations.--The Secretary may prescribe such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this subsection,
including regulations or other guidance--
``(A) to treat a partnership as an aggregate of its
partners,
``(B) to provide rules allowing a foreign
corporation to close its taxable year upon a change in
ownership, and
``(C) to treat a distribution followed by an
issuance of stock to a shareholder not subject to tax
under this chapter in the same manner as an acquisition
of stock.''.
(C) Section 951A(e)(1) is amended by striking ``determined
under the rules of section 951(a)(2) in the same manner as such
section applies to subpart F income'' and inserting
``determined under rules similar to the rules of section
951(a)(2)''.
(D) Section 951A(e)(2) is amended to read as follows:
``(2) Treatment as united states shareholder.--A person
shall be treated as a United States shareholder of a controlled
foreign corporation for any taxable year of such person if such
person--
``(A) is a United States shareholder of such
foreign corporation on any day in such taxable year,
and
``(B) owns (within the meaning of section 958(a))
stock in such foreign corporation on any day in such
taxable year which is part of a taxable year of such
foreign corporation with respect to which such foreign
corporation is a controlled foreign corporation.''.
(E) Section 953(c)(5)(A)(i) is amended--
(i) in subclause (I), by adding ``and'' at the end,
(ii) in subclause (II)--
(I) by striking ``on the last day of the
taxable year'' and inserting ``during the
taxable year'', and
(II) by striking ``and'' at the end and
inserting ``or'', and
(iii) by striking subclause (III).
(2) Section 78 is amended by striking ``, (b),''.
(d) Certain Related Prospective Modifications.--Section 961(c) is
amended--
(1) by striking ``Basis Adjustments in'' in the heading of
such subsection and inserting ``Application of Rules to'', and
(2) by striking ``then adjustments similar to'' and all
that follows in such subsection and inserting ``then rules
similar to the rules of subsections (a) and (b) shall apply
to--
``(1) such stock,
``(2) stock in any other controlled foreign corporation by
reason of which the United States shareholder is considered
under section 958(a)(2) as owning the stock described in
paragraph (1), and
``(3) property by reason of which the United States
shareholder is considered as owning stock described in
paragraph (1) or (2).
The preceding sentence shall not apply with respect to any stock or
property to which subsection (a) or (b) applies.''.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years of foreign corporations beginning after December
31, 2021, and to taxable years of United States shareholders in
which or with which such taxable years of foreign corporations
end.
(2) Certain other modifications.--
(A) The amendments made by subsection (c)(1) shall
apply to distributions made after December 31, 2017.
(B) The amendment made by subsection (c)(2) apply
to taxable years of foreign corporations beginning
after December 31, 2017, and to taxable years of United
States shareholders in which or with which such taxable
years of foreign corporations end.
Subpart D--Inbound International Provisions
SEC. 138131. MODIFICATIONS TO BASE EROSION AND ANTI-ABUSE TAX.
(a) Modifications to Base Erosion Minimum Tax Amount.--
(1) Modification of rates.--Section 59A(b)(1)(A) is amended
by striking ``10 percent (5 percent in the case of taxable
years beginning in calendar year 2018)'' and inserting ``the
applicable percentage''.
(2) Base erosion minimum tax amount determined without
regard to credits.--Section 59A(b)(1)(B) is amended to read as
follows:
``(B) an amount equal to the regular tax liability
(as defined in section 26(b)) of the taxpayer for the
taxable year.''.
(3) Applicable percentage.--Section 59A(b)(2) is amended to
read as follows:
``(2) Applicable percentage.--For purposes of this
subsection, the term applicable percentage means--
``(A) in the case of any taxable year beginning
after December 31, 2021, and before January 1, 2024, 10
percent,
``(B) in the case of any taxable year beginning
after December 31, 2023, and before January 1, 2026,
12.5 percent, and
``(C) in the case of any taxable year beginning
after December 31, 2025, 15 percent.''.
(4) Taxpayers subject to rules for banks and securities
dealers.--Section 59A(b)(3)(B) is amended to read as follows:
``(B) Taxpayer described.--A taxpayer is described
in this subparagraph if such taxpayer is--
``(i) a bank (as defined in section
585(a)(2)),
``(ii) a securities dealer registered under
section 15(a) of the Securities Exchange Act of
1934, or
``(iii) a member of an affiliated group (as
defined in section 1504(a)(1), determined
without regard to section 1504(b)(3)) which
includes any person described in clause (i) or
(ii).''.
(5) General business credit allowed against base erosion
and anti-abuse tax.--Section 38(c)(1) is amended by striking
``the tax imposed by section 55'' and inserting ``the taxes
imposed by sections 55 and 59A''.
(6) Conforming amendments.--
(A) Section 59A(b)(3)(A) is amended by striking
``paragraphs (1)(A) and (2)(A) shall each'' and
inserting ``paragraph (2) shall''.
(B) Section 59A(b) is amended by striking paragraph
(4).
(b) Modification of Rules for Determining Modified Taxable
Income.--
(1) In general.--Section 59A(c) is amended to read as
follows:
``(c) Modified Taxable Income.--For purposes of this section--
``(1) In general.--The term `modified taxable income' means
the taxable income of the taxpayer computed under this chapter
for the taxable year with the following adjustments:
``(A) Base erosion tax benefits.--Any base erosion
tax benefit shall be determined without regard to any
base erosion payment described in paragraphs (1)
through (4) of subsection (d), including for purposes
of determining the adjusted basis of property described
in subsection (d)(2).
``(B) Base erosion basis adjustments with respect
to cost of goods sold.--Cost of goods sold shall be
determined without regard to any base erosion payment
described in subparagraph (A) or (B) of subsection
(d)(5).
``(C) Net operating losses.--The net operating loss
deduction for the taxable year under section 172 shall
be applied--
``(i) by substituting `modified taxable
income' for `taxable income' in subsection
(a)(2)(B)(ii)(I) thereof,
``(ii) by determining any net operating
loss arising in any taxable year beginning
after December 31, 2021, without regard to any
deduction which is a base erosion tax benefit
(determined with respect to each such taxable
year), and
``(iii) by making appropriate adjustments
in the application of subsection (b)(2) thereof
to take into account clause (i) of this
subparagraph as though such clause applied with
respect to taxable years beginning after
December 31, 2021 (but by applying section
172(e) for purposes of determining the amount
of modified taxable income).
``(D) Application of certain other adjustments.--
Except as otherwise provided by the Secretary, rules
similar to the rules of subsections (g) and (h) of
section 59 shall apply.
``(2) Base erosion tax benefit.--The term `base erosion tax
benefit' means--
``(A) any deduction allowed under this chapter for
the taxable year with respect to any base erosion
payment described in subsection (d)(1),
``(B) in the case of a base erosion payment
described in subsection (d)(2), any deduction allowed
under this chapter for the taxable year for
depreciation (or amortization in lieu of depreciation)
with respect to the property acquired with such
payment,
``(C) in the case of a base erosion payment
described in subsection (d)(3)--
``(i) any reduction under section
803(a)(1)(B) in the gross amount of premiums
and other consideration on insurance and
annuity contracts for premiums and other
consideration arising out of indemnity
insurance, and
``(ii) any deduction under section
832(b)(4)(A) from the amount of gross premiums
written on insurance contracts during the
taxable year for premiums paid for reinsurance,
and
``(D) in the case of a base erosion payment
described in subsection (d)(4), any reduction in gross
receipts with respect to such payment in computing
gross income of the taxpayer for the taxable year for
purposes of this chapter.''.
(2) Certain payments with respect to inventory treated as
base erosion payments.--Section 59A(d) is amended by
redesignating paragraph (5) as paragraph (6) and by inserting
after paragraph (4) the following new paragraph:
``(5) Certain payments with respect to inventory.--
``(A) Indirect costs included in inventory under
section 263A.--Such term shall also include any amount
paid or accrued by the taxpayer to a foreign person
which is a related party of the taxpayer if such amount
is described in paragraph (2)(B) of section 263A(a) and
required to be included in inventory costs of the
taxpayer under paragraph (1)(A) of such section.
``(B) Certain indirect costs of foreign related
parties.--Such term shall also include so much of any
amount paid or accrued by the taxpayer to a foreign
person which is a related party of the taxpayer in
connection with the acquisition by the taxpayer from
such foreign person of property which is inventory in
the hands of the taxpayer as exceeds the sum of--
``(i) the direct costs of such property in
the hands of such foreign person, plus
``(ii) so much of the costs described in
section 263A(a)(2)(B) with respect to such
property in the hands of such foreign person as
the taxpayer demonstrates to the satisfaction
of the Secretary are attributable to amounts--
``(I) paid or accrued by such
foreign person to a United States
person or a person which is not a
related party of the taxpayer, or
``(II) otherwise subject to the tax
imposed by this subtitle.
``(C) Application to tiered related-party
transactions.--In the case of direct costs otherwise
described in clause (i) of subparagraph (B) which are
paid or incurred by the foreign person referred to in
such clause to another foreign person which is a
related party of the taxpayer, such costs shall be
taken into account under such clause only to the extent
that the taxpayer demonstrates to the satisfaction of
the Secretary that such costs are attributable to
amounts paid or accrued (directly or indirectly) to a
United States person or a person which is not a related
party of the taxpayer.
``(D) Safe harbor with respect indirect costs of
foreign related parties.--In the case of a taxpayer
which elects the application of this subparagraph (at
such time, in such manner, and with respect to such
inventory property, as the Secretary may provide), the
amount described in subparagraph (B)(ii) with respect
to such property shall be treated for purposes of this
section as being equal to 20 percent of the amount paid
or incurred by the taxpayer to the related party of the
taxpayer in connection with the acquisition of such
property.''.
(3) Expansion and consolidation of rules to exempt certain
payments from treatment as base erosion payments.--
(A) In general.--Section 59A is amended by
redesignating subsection (i) as subsection (j) and by
inserting after subsection (h) the following new
subsection:
``(i) Certain Payment Not Treated as Base Erosion Payments.--
``(1) Exception for payments on which tax is imposed.--An
amount shall not be treated as a base erosion payment if tax is
imposed by this subtitle with respect to such amount. The
amount not treated as a base erosion payment by reason of the
preceding sentence shall be determined under rules similar to
the rules of section 163(j)(5) (as in effect before the date of
the enactment of Public Law 115-97).
``(2) Exception for certain payments subject to sufficient
foreign tax.--
``(A) In general.--An amount shall not be treated
as a base erosion payment if the taxpayer establishes
to the satisfaction of the Secretary that such amount
was subject to an effective rate of foreign income tax
(as defined in section 904(d)(2)(F)) which is not less
than the applicable percentage in effect under
subsection (b)(2) for the taxable year in which such
amount is paid or accrued. Except as otherwise provided
by the Secretary under subparagraph (B), the effective
rate of foreign income tax with respect to any amount
may be established on the basis of applicable financial
statements (as defined in section 451(b)(3)).
``(B) Regulations.--The Secretary shall issue such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this
paragraph, including regulations or other guidance
providing procedures for determining the effective rate
of foreign income tax to which any amount is subject.
Such procedures may require that any transaction or
series of transactions among multiple parties be
recharacterized as one or more transactions directly
among any 2 or more of such parties where the Secretary
determines that such recharacterization is appropriate
to carry out, or prevent avoidance of, the purposes of
this section.
``(3) Exception for certain amounts with respect to
services.--Subsections (d)(1) and (d)(5)(A) shall not apply to
so much of any amount paid or accrued by a taxpayer for
services as does not exceed the total services cost of such
services. The preceding sentence shall not apply unless such
services meet the requirements for eligibility for use of the
services cost method under section 482 (determined without
regard to the requirement that the services not contribute
significantly to fundamental risks of business success or
failure).''.
(B) Conforming amendment.--Section 59A(d), as
amended by paragraph (2), is amended by striking
paragraph (6).
(c) Repeal of Exemption From Base Erosion and Anti-abuse Tax for
Taxpayers With Low Base Erosion Percentage.--Section 59A(e)(1)(C) is
amended by inserting ``in the case of any taxable year beginning before
January 1, 2024,'' before ``the base erosion percentage''.
(d) Other Modifications.--
(1) Section 59A(h)(2)(B) is amended by striking ``section
6038B(b)(2)'' and inserting ``section 6038A(b)(2)''.
(2) Section 59A(j)(2), as redesignated by subsection (b),
is amended by striking ``subsection (g)(3)'' and inserting
``subsection (h)(3)''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
Subpart E--Other Business Tax Provisions
SEC. 138141. CREDIT FOR CLINICAL TESTING OF ORPHAN DRUGS LIMITED TO
FIRST USE OR INDICATION.
(a) In General.--Section 45C(b)(2)(B) is amended to read as
follows:
``(B) Testing must be related to first use or
indication for rare disease or condition.--Human
clinical testing may be taken into account under
subparagraph (A) only to the extent such testing is
related to the first use or indication with respect to
which a drug for a rare disease or condition is
designated under section 526 of the Federal Food, Drug,
and Cosmetic Act.''.
(b) Eligible Testing Must Be Conducted Before Approval for Any Use
or Indication.--Section 45C(b)(2)(A)(ii)(II) is amended to read as
follows:
``(II) before the first date on
which an application (with respect to
any use or indication with respect to
any disease or condition) with respect
to such drug is approved under section
505(c) of such Act or, if the drug is a
biological product, before the first
date on which a license (with respect
to any use or indication with respect
to any disease or condition) for such
drug is issued under section 351(a) of
the Public Health Service Act, and''.
(c) Eligibility of Biological Products.--
(1) In general.--Section 45C(b)(2)(A)(i) is amended by
inserting ``or, if the drug is a biological product, section
351(a)(3) of the Public Health Service Act'' before the comma
at the end.
(2) Conforming amendment.--Section 45C(b)(2)(A)(ii)(I) is
amended by striking ``such Act'' and inserting ``the Federal
Food, Drug, and Cosmetic Act''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 138142. MODIFICATIONS TO TREATMENT OF CERTAIN LOSSES.
(a) Losses From Certain Capital Assets Which Become Worthless.--
(1) When treated as loss.--Section 165(g)(1) is amended by
striking ``on the last day of the taxable year'' and inserting
``at the time of the identifiable event establishing
worthlessness''.
(2) Treatment of partnership indebtedness.--Section
165(g)(2)(C) is amended by inserting ``, by a partnership,''
after ``by a corporation''.
(3) Treatment of partnership interest.--Section 165 is
amended by redesignating subsection (m) as subsection (n) and
by inserting after subsection (l) the following new subsection:
``(m) Worthless Partnership Interest.--If any interest in a
partnership becomes worthless during the taxable year, the loss
resulting therefrom shall, for purposes of this subtitle, be treated as
a loss from the sale or exchange of the interest in the partnership, as
provided in section 741, at the time of the identifiable event
establishing worthlessness.''.
(b) Deferral of Losses in Certain Controlled Group Corporate
Liquidations.--Section 267 is amended by adding at the end the
following new subsection:
``(h) Deferral of Losses in Certain Controlled Group
Liquidations.--
``(1) In general.--In the case of two corporations
described in subsection (b)(3), no loss shall be recognized on
the stock or securities of the liquidating corporation in a
complete liquidation to which section 331 applies until the
other corporation receiving property distributed in such
liquidation with respect to such stock or in exchange for such
securities has disposed of substantially all property such
other corporation received in such liquidation to one or more
persons who are not related to such other corporation (within
the meaning of subsection (b)(3) or section 707(b)(1)).
``(2) Regulations.--The Secretary shall issue such
regulations or other guidance as the Secretary determines is
necessary or appropriate to carry out the purposes of this
subsection, including to apply the principles of this
subsection to liquidating corporation stock or securities owned
by a corporation indirectly through 1 or more partnerships.''.
(c) Cross Reference.--Section 331(c) is amended--
(1) by striking ``Cross Reference'' and all that follows
through ``For general rule'' and inserting the following:
``Cross Reference.--
``(1) For general rule'', and
(2) by adding at the end the following new paragraph:
``(2) For losses in controlled group liquidations, see
section 267(h).''.
(d) Effective Date.--
(1) Subsection (a).--The amendments made by this section
shall apply to losses arising in taxable years beginning after
December 31, 2021.
(2) Subsection (b).--The amendment made by subsection (b)
shall apply to liquidations on or after the date of the
enactment of this Act.
SEC. 138143. ADJUSTED BASIS LIMITATION FOR DIVISIVE REORGANIZATION.
(a) In General.--Section 361 is amended by adding at the end the
following new subsections:
``(d) Adjusted Basis Limitation for Divisive Reorganizations.--
``(1) In general.--Except as provided paragraph (2), in the
case of a reorganization described in section 368(a)(1)(D) with
respect to which stock or securities of the controlled
corporation (within the meaning of section 355) are distributed
by the distributing corporation (within the meaning of such
section) in a transaction which qualifies under such section,
subsection (b)(3) and subsection (c)(3) shall not apply to so
much of the money and other property transferred to creditors
as equals an amount equal to the excess (if any) of--
``(A) the sum of--
``(i) the total amount of the liabilities
assumed (within the meaning of section 357(c))
by the controlled corporation,
``(ii) in the case of subsection (b)(3),
the total amount of money and the fair market
value of other property (including stock
described in section 354(a)(2)(C)) transferred
to the creditors, and
``(iii) in the case of subsection (c)(3),
the total principal amount of securities of the
controlled corporation which is qualified
property (as defined in subsection (c)(2)(B))
transferred to the creditors, over
``(B) the total adjusted bases of the assets
transferred by the distributing corporation to the
controlled corporation.
``(2) Exception regarding certain stock or rights to
acquire stock.--Paragraph (1) shall not apply to any stock (or
right to acquire stock) described in subsection (c)(2)(B).
``(3) Regulations.--The Secretary shall issue such
regulations as may be necessary or appropriate to prevent
avoidance of tax through abuse of subsection (b)(3), subsection
(c)(3), or this subsection, including to determine whether a
disposition of property or any other transaction is in
connection with the reorganization or pursuant to the plan of
reorganization.
``(e) Cross-references.--For provisions providing for the inclusion
of income or recognition of gain in certain distributions, see
subsections (d), (e), (f), (g), and (h) of section 355.''.
(b) Conforming Amendments.--
(1) Section 361(b)(3) is amended--
(A) in the first sentence, by inserting ``, and
except as provided in subsection (d)'' after
``paragraph (1)'', and
(B) by striking the second and third sentences.
(2) Section 361(c) is amended--
(A) in paragraph (3), by inserting ``, and except
as provided in subsection (d)'' after ``this
subsection'', and
(B) by striking paragraph (5).
(c) Effective Date.--The amendments made by this section shall
apply to reorganizations occurring on or after the date of the
enactment of this Act.
SEC. 138144. RENTS FROM PRISON FACILITIES NOT TREATED AS QUALIFIED
INCOME FOR PURPOSES OF REIT INCOME TESTS.
(a) In General.--Section 856(d)(2) is amended by striking ``and''
at the end of subparagraph (B), by striking the period at the end of
subparagraph (C) and inserting ``, and'', and by adding at the end the
following new subparagraph:
``(D) any amount received or accrued, directly or
indirectly, with respect to any real or personal
property which is primarily used in connection with any
correctional, detention, or penal facility.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 138145. MODIFICATIONS TO EXEMPTION FOR PORTFOLIO INTEREST.
(a) In General.--Section 871(h)(3)(B)(i) is amended to read as
follows:
``(i) in the case of an obligation issued
by a corporation--
``(I) any person who owns 10
percent or more of the total combined
voting power of all classes of stock of
such corporation entitled to vote, or
``(II) any person who owns 10
percent or more of the total value of
the stock of such corporation, and''.
(b) Effective Date.--The amendment made by this section shall apply
to obligations issued after the date of the enactment of this Act.
SEC. 138146. CERTAIN PARTNERSHIP INTEREST DERIVATIVES.
(a) In General.--Section 871(m) is amended by adding at the end the
following new paragraphs:
``(8) Specified partnership interest income equivalent
payments.--
``(A) In general.--For purposes of this subsection,
any payment made pursuant to a sale-repurchase
transaction, or a specified notional principal
contract, that is determined by reference to any income
or gain in respect of an interest in a specified
partnership (or any other payment the Secretary
determines to be substantially similar) shall be
treated as a dividend equivalent.
``(B) Specified partnership.--For purposes of this
paragraph, the term `specified partnership' means--
``(i) any publicly-traded partnership (as
defined in subsection (b) of section 7704)
which is not treated as a corporation under
such section, or
``(ii) any other partnership as the
Secretary may by regulation prescribe.
``(C) Exceptions.--
``(i) Excepted contracts.--Subparagraph (A)
shall not apply to any contract or transaction
the Secretary determines does not have the
potential for tax avoidance.
``(ii) Certain income.--Under such
regulations as the Secretary shall prescribe,
there shall not be taken into account under
subparagraph (A) any payment the income or gain
from which would (but for this paragraph) be--
``(I) exempt from taxes under this
subtitle, or
``(II) treated as income from
sources without the United States if
paid to a nonresident alien individual.
``(D) Treatment of definitions and special rules
with respect to partnerships.--For purposes of this
paragraph, rules similar to the rules and definitions
in paragraphs (3), (4), (5), (6) and (7) shall apply to
an interest in a specified partnership in a manner
similar to an underlying security, and to income or
gain in respect of an interest in a specified
partnership in a manner similar to a dividend.
``(9) Other rules relating to treatment of dividend
equivalents.--
``(A) In general.--A dividend equivalent amount
under this subsection shall be treated as a dividend
paid by a domestic corporation.
``(B) Rate of tax for publicly traded partnership
income payments.--In the case of a payment treated as a
dividend equivalent pursuant to paragraph (8), the rate
of tax imposed on any nonresident alien individual or
foreign corporation with respect to such payment shall
not be less than the rate that would be imposed had
such individual or foreign corporation, as the case may
be, received a dividend from a domestic corporation in
which such individual or foreign corporation owned less
than 1 percent (by vote or value) of the stock.''.
(b) Withholding of Tax on Nonresident Aliens.--Section 1441 is
amended by redesignating subsection (g) as subsection (h) and by
inserting after subsection (f) the following new subsection:
``(g) Deemed Dividend Equivalent Payments in Case of Certain
Publicly Traded Partnerships.--The Secretary may prescribe regulations,
under rules similar to the rules of section 1446(f), to determine the
manner in which the amount of income and gain is determined for
purposes of this section in the case of amounts treated as a dividend
equivalent under section 871(m)(8).''.
(c) Effective Date.--The amendments made by this section shall
apply to payments made on or after the date that is 180 days after the
date of the enactment of this Act.
SEC. 138147. ADJUSTMENTS TO EARNINGS AND PROFITS OF CONTROLLED FOREIGN
CORPORATIONS.
(a) In General.--Section 312(n) is amended by adding at the end the
following new paragraph:
``(9) Special rules for controlled foreign corporations.--
Earnings and profits of any controlled foreign corporation
shall be determined without regard to paragraphs (4), (5), and
(6).''.
(b) Conforming Amendment.--Section 952(c) is amended by striking
paragraph (3).
(c) Effective Date.--The amendments made by this section shall
apply to taxable years of foreign corporations beginning after December
31, 2021, and to taxable years of United States shareholders in which
or with which such taxable years of foreign corporations end.
SEC. 138148. CERTAIN DIVIDENDS FROM CONTROLLED FOREIGN CORPORATIONS TO
UNITED STATES SHAREHOLDERS TREATED AS EXTRAORDINARY
DIVIDENDS.
(a) In General.--Section 1059 is amended by redesignating
subsection (g) as subsection (h) and by inserting after subsection (f)
the following new subsection:
``(g) Treatment of Certain Dividends From Controlled Foreign
Corporations to United States Shareholders.--
``(1) In general.--Except as otherwise provided by the
Secretary, any disqualified CFC dividend shall be treated as an
extraordinary dividend to which paragraph (1) and (2) of
subsection (a) applies without regard to the period the
taxpayer held the stock with respect to which such dividend is
paid.
``(2) Disqualified cfc dividend.-- For purposes of this
subsection, the term `disqualified CFC dividend' means any
dividend paid by a controlled foreign corporation to a taxpayer
which is a United States shareholder of such foreign
corporation if--
``(A) such dividend is attributable to earnings and
profits which--
``(i) were earned by such controlled
foreign corporation during a disqualified
period, or
``(ii) are attributable to gain on property
which accrued during a disqualified period.
``(3) Disqualified period.--For purposes of this
subsection, the term `disqualified period' means, with respect
to any dividend paid with respect to any stock of a controlled
foreign corporation, any period during which--
``(A) such foreign corporation was not a controlled
foreign corporation, or
``(B) such stock was not owned by a United States
shareholder.''.
(b) Regulations.--Section 1059(h), as redesignated by subsection
(a), is amended--
(1) by striking ``regulations'' both places it appears and
inserting ``regulations or other guidance'', and
(2) by striking ``and'' at the end of paragraph (1), by
striking the period at the end of paragraph (2) and inserting
``, and'', and by adding at the end the following new
paragraph:
``(3) providing for the coordination of subsection (g) with
the other provisions of this chapter, including section
1248.''.
(c) Effective Date.--The amendments made by this section shall
apply to distributions made after the date of the enactment of this
Act.
SEC. 138149. MODIFICATION OF RULES FOR PARTNERSHIP INTERESTS HELD IN
CONNECTION WITH THE PERFORMANCE OF SERVICES.
(a) In General.--Section 1061 is amended by striking subsections
(a) and (b) and inserting the following new subsections:
``(a) In General.--If one or more applicable partnership interests
are held by a taxpayer at any time during the taxable year, the
taxpayer's net applicable partnership gain for such taxable year shall
be treated as short-term capital gain.
``(b) Net Applicable Partnership Gain.--For purposes of this
section--
``(1) In general.--The term `net applicable partnership
gain' means--
``(A) the taxpayer's net long-term capital gain
determined by only taking into account gains and losses
with respect to one or more applicable partnership
interests described in subsection (a), and
``(B) any other amounts which are--
``(i) includible in the gross income of the
taxpayer with respect to one or more such
applicable partnership interests, and
``(ii) treated as capital gain or subject
to tax at the rate applicable to capital gain.
``(2) Holding period exception.--
``(A) In general.--Net applicable partnership gain
shall be determined without regard to any amount which
is realized after the date that is 5 years after the
latest of:
``(i) The date on which the taxpayer
acquired substantially all of the applicable
partnership interest with respect to which the
amount is realized.
``(ii) The date on which the partnership in
which such applicable partnership interest is
held acquired substantially all of the assets
held by such partnership.
``(iii) If the partnership described in
clause (i) owns, directly or indirectly,
interests in one or more other partnerships,
the dates determined by applying rules similar
to the rules in clauses (i) and (ii) in the
case of each such other partnership.
``(B) Shorter holding period in certain
circumstances.--Subparagraph (A) shall be applied by
substituting `3 years' for `5 years' in the case of--
``(i) a taxpayer (other than a trust or
estate) with an adjusted gross income
(determined without regard to sections 911, 931
and 933) of less than $400,000, and
``(ii) any income with respect to any
applicable partnership interest that is
attributable to a real property trade or
business within the meaning of section
469(c)(7)(C).
``(iii) The Secretary is directed to
provide guidance regarding determination of the
amount described in subsection (a) as applied
in paragraph (1) hereof, and any necessary and
appropriate reporting by any partnership to
carry out the purposes of this section. --
``(3) Section 83 to not apply.--This section shall be
applied without regard to section 83 and any election in effect
under section 83(b).
``(4) Special rule.--To the extent provided by the
Secretary, subsection (a) shall not apply to income or gain
attributable to any asset not held for portfolio investment on
behalf of third party investors.''.
(b) Modifications Related to Definition of Applicable Partnership
Interest.--Section 1061(c) is amended--
(1) in paragraph (1), by striking ``to such other entity''
and inserting ``with respect to a trade or business that is not
an applicable trade or business'',
(2) in paragraph (3), by striking ``an interest in a
partnership to the extent of the partnership's proportionate
interest in any of the foregoing'' and inserting ``except as
otherwise provided by the Secretary, an interest in a
partnership if such partnership has a direct or indirect
interest in any of the foregoing'', and
(3) in paragraph (4)--
(A) by striking ``The term'' and inserting ``Except
as otherwise provided by the Secretary, the term'', and
(B) in subparagraph (A), by striking
``corporation'' and inserting ``C corporation''.
(c) Recognition of Gain on Transfers of Applicable Partnership
Interests to Unrelated Parties.--Section 1061(d) is amended to read as
follows:
``(d) Transfer of Applicable Partnership Interest.--If a taxpayer
transfers any applicable partnership interest, gain shall be recognized
notwithstanding any other provision of this subtitle.''.
(d) Regulations.--Section 1061(e) is amended by striking the period
at the end and inserting the following: ``, including regulations or
other guidance to--
``(1) to prevent the avoidance of the purposes of this
section, including through the distribution of property by a
partnership and through carry waivers, and
``(2) to provide for the application of this section to
financial instruments, contracts or interests in entities other
than partnerships to the extent necessary or appropriate to
carry out the purposes of this section.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 138150. LIMITATION ON CERTAIN SPECIAL RULES FOR SECTION 1202
GAINS.
(a) In General.--Section 1202(a) is amended by adding at the end
the following new paragraph:
``(5) Limitation on certain special rules.--In the case of
the sale or exchange of qualified small business stock after
September 13, 2021, paragraphs (3) and (4) shall not apply to
any taxpayer if--
``(A) the adjusted gross income of such taxpayer
(determined without regard to this section and sections
911, 931, and 933) equals or exceeds $400,000, or
``(B) such taxpayer is a trust or estate.''.
(b) Effective Date.--Except as provided in subsection (c), the
amendment made by this section shall apply to sales and exchanges on or
after September 13, 2021.
(c) Binding Contract Exception.--The amendment made by this section
shall not apply to any sale or exchange which is made pursuant to
written binding contract which was in effect on September 12, 2021, and
is not modified in any material respect thereafter.
SEC. 138151. CONSTRUCTIVE SALES.
(a) Application to Appreciated Digital Assets.--
(1) In general.--Section 1259(b)(1) is amended by inserting
``digital asset,'' after ``debt instrument,''.
(2) Digital asset.--Section 1259(d) is amended by adding at
the end the following new paragraph:
``(3) Digital asset.--Except as otherwise provided by the
Secretary, the term `digital asset' means any digital
representation of value which is recorded on a
cryptographically secured distributed ledger or any similar
technology as specified by the Secretary.''.
(b) Treatment of Certain Contracts.--Section 1259(c)(1)(D) is
amended by inserting ``or enters into a contract to acquire'' after
``acquires''.
(c) Effective Date.--
(1) In general.--The amendments made by subsection (a)
shall apply to constructive sales (determined after the
application of the amendment made by subsection (b)) after the
date of the enactment of this Act.
(2) Treatment of certain contracts.--The amendment made by
subsection (b) shall apply to contracts entered into after the
date of the enactment of this Act.
SEC. 138152. RULES RELATING TO COMMON CONTROL.
(a) Clarification of Trade or Business.--Section 52(b) is amended
by adding at the end the following new sentence: ``For purposes of this
subsection, the term `trade or business' includes any activity treated
as a trade or business under paragraph (5) or (6) of section 469(c).''
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2021.
SEC. 138153. WASH SALES BY RELATED PARTIES; WASH SALES OF SPECIFIED
ASSETS.
(a) Application of Wash Sale Rules to Related Parties.--Section
1091(a) is amended by striking ``the taxpayer has acquired'' and
inserting ``the taxpayer (or a related party) has acquired''.
(b) Modification of Basis Adjustment Rule to Prevent Transfer of
Losses to Related Parties.--Section 1091(d) is amended to read as
follows:
``(d) Adjustment to Basis in Case of Wash Sale.--If the taxpayer
(or the taxpayer's spouse) acquires substantially identical specified
assets during the period which--
``(1) begins 30 days before the disposition with respect to
which a deduction was disallowed under subsection (a), and
``(2) ends with the close of the taxpayer's first taxable
year which begins after such disposition,
the basis of such specified assets shall be increased by the amount of
the deduction so disallowed (reduced by any amount of such deduction
taken into account under this subsection to increase the basis of
specified assets previously acquired).''
(c) Related Party.--Section 1091 is amended by adding at the end
the following new subsection:
``(g) Related Party.--For purposes of this section--
``(1) In general.--The term `related party' means--
``(A) the taxpayer's spouse,
``(B) any dependent of the taxpayer and any other
taxpayer with respect to whom the taxpayer is a
dependent,
``(C) any individual, corporation, partnership,
trust, or estate which controls, or is controlled by,
(within the meaning of section 954(d)(3)) the taxpayer
or any individual described in subparagraph (A) or (B)
with respect to the taxpayer (or any combination
thereof),
``(D) any individual retirement plan, Archer MSA
(as defined in section 220(d)), or health savings
account (as defined in section 223(d)), of the taxpayer
or of any individual described in subparagraph (A) or
(B) with respect to the taxpayer,
``(E) any account under a qualified tuition program
described in section 529 or a Coverdell education
savings account (as defined in section 530(b)) if the
taxpayer, or any individual described in subparagraph
(A) or (B) with respect to the taxpayer, is the
designated beneficiary of such account or has the right
to make any decision with respect to the investment of
any amount in such account, and
``(F) any account under--
``(i) a plan described in section 401(a),
``(ii) an annuity plan described in section
403(a),
``(iii) an annuity contract described in
section 403(b), or
``(iv) an eligible deferred compensation
plan described in section 457(b) and maintained
by an employer described in section
457(e)(1)(A),
if the taxpayer or any individual described in
subparagraph (A) or (B) with respect to the taxpayer
has the right to make any decision with respect to the
investment of any amount in such account.
``(2) Rules for determining status.--
``(A) Relationships determined at time of
acquisition.--Determinations under paragraph (1) shall
be made as of the time of the purchase or exchange
referred to in subsection (a) except that
determinations under subparagraphs (A) and (B) of
paragraph (1) shall be made for the taxable year which
includes such purchase or exchange.
``(B) Determination of marital status.--
``(i) In general.--Except as provided in
clause (ii), marital status shall be determined
under section 7703.
``(ii) Special rule for married individuals
filing separately and living apart.--A husband
and wife who--
``(I) file separate returns for any
taxable year, and
``(II) live apart at all times
during such taxable year,
shall not be treated as married individuals.
``(3) Regulations.--The Secretary shall issue such
regulations or other guidance as may be necessary to prevent
the avoidance of the purposes of this subsection, including
regulations which treat persons as related parties if such
persons are formed or availed of to avoid the purposes of this
subsection.''.
(d) Wash Sale Rules to Apply With Respect to Specified Assets.--
(1) Specified assets.--Section 1091, as amended by the
preceding provisions of this section, is amended by adding at
the end the following new subsection:
``(h) Specified Asset.--For purposes of this section, the term
`specified asset' means any of the following:
``(1) Any security described in subparagraph (A), (B), (C),
(D), or (E) of section 475(c)(2).
``(2) Any foreign currency.
``(3) Any commodity described in subparagraph (A), (B), or
(C) of section 475(e)(2).
``(4) Any digital representation of value which is recorded
on a cryptographically secured distributed ledger or any
similar technology as specified by the Secretary.
Such term shall, except as provided in regulations, include contracts
or options to acquire or sell any specified assets.''.
(2) Conforming amendments.--Section 1091 is amended--
(A) by striking the last sentence of subsection
(a),
(B) by striking ``stock or securities'' each place
it appears and inserting ``specified assets'', and
(C) by striking ``shares of'' each place it appears
in subsections (a), (b), and (c).
(e) Exception for Business Needs and Hedging Transactions.--Section
1091, as amended by the preceding provisions of this section, is
amended by adding at the end the following new subsection:
``(i) Exception for Business Needs and Hedging Transactions.--
Except as provided in regulations prescribed by the Secretary,
subsection (a) shall not apply in the case of any sale or other
disposition--
``(1) of a foreign currency or commodity described in
subsection (h), and
``(2) which--
``(A) is directly related to the business needs of
a trade or business of the taxpayer (other than the
trade or business of trading foreign currencies or
commodities described in subsection (h)), or
``(B) is part of a hedging transaction (as defined
in section 1221(b)(2)).''.
(f) Effective Date.--The amendments made by this section shall
apply to sales and other dispositions after December 31, 2021.
PART 2--TAX INCREASES FOR HIGH-INCOME INDIVIDUALS
SEC. 138201. INCREASE IN TOP MARGINAL INDIVIDUAL INCOME TAX RATE.
(a) Re-establishment of 39.6 Percent Rate Bracket.--
(1) Married individuals filing joint returns and surviving
spouses.--The table contained in section 1(j)(2)(A) is amended
by striking the last two rows and inserting the following: ``
``Over $400,000 but not over
$450,000.
$91,379, plus 35% of the excess
over $400,000
Over $450,000..................
$108,879, plus 39.6% of the
excess over
$450,000.''.
(2) Heads of households.--The table contained in section
1(j)(2)(B) is amended by striking the last two rows and
inserting the following: ``
``Over $200,000 but not over
$425,000.
$44,298, plus 35% of the excess
over $200,000
Over $425,000..................
$123,048, plus 39.6% of the
excess over
$425,000.''.
(3) Unmarried individuals other than surviving spouses and
heads of households.--The table contained in section 1(j)(2)(C)
is amended by striking the last two rows and inserting the
following: ``
``Over $200,000 but not over
$400,000.
$45,689.50, plus 35% of the
excess over $200,000
Over $400,000..................
$115,689.50, plus 39.6% of the
excess over
$400,000.''.
(4) Married individuals filing separate returns.--The table
contained in section 1(j)(2)(D) is amended by striking the last
two rows and inserting the following: ``
``Over $200,000 but not over
$225,000.
$45,689.50, plus 35% of the
excess over $200,000
Over $225,000..................
$54,439.50, plus 39.6% of the
excess over
$225,000.''.
(5) Estates and trusts.--The table contained in section
1(j)(2)(E) is amended by striking the last row and inserting
the following: ``
``Over $12,500.................
$3,011.50, plus 39.6% of the
excess over $12,500.''.
(b) Application of Adjustments.--Section 1(j)(3) is amended to read
as follows:
``(3) Adjustments.--For taxable years beginning after
December 31, 2021, the Secretary shall prescribe tables which
shall apply in lieu of the tables contained in paragraph (2) in
the same manner as under paragraphs (1) and (2) of subsection
(f) (applied without regard to clauses (i) and (ii) of
subsection (f)(2)(A), except that in prescribing such tables--
``(A) except as provided in subparagraph (B),
subsection (f)(3) shall be applied by substituting
`calendar year 2017' for `calendar year 2016' in
subparagraph (A)(ii) thereof,
``(B) in the case of adjustments to the dollar
amounts at which the 39.6 percent rate bracket begins
(other than such dollar amount in paragraph (2)(E))--
``(i) no adjustment shall be made for
taxable years beginning after December 31,
2021, and before January 1, 2023, and
``(ii) in the case of any taxable year
beginning after December 31, 2022, subsection
(f)(3) shall be applied by substituting
`calendar year 2021' for `calendar year 2016',
``(C) subsection (f)(7)(B) shall apply to any
unmarried individual other than a surviving spouse, and
``(D) subsection (f)(8) shall not apply.''.
(c) Modification to 39.6 Percent Rate Bracket for High-income
Taxpayers After 2025.--Section 1(i)(3) is amended to read as follows:
``(3) Modifications to 39.6 percent rate bracket.--In the
case of taxable years beginning after December 31, 2025--
``(A) In general.--The rate of tax under
subsections (a), (b), (c), and (d) on a taxpayer's
taxable income in excess of the 39.6 percent rate
bracket threshold shall be taxed at a rate of 39.6
percent.
``(B) 39.6 percent rate bracket threshold.--For
purposes of this paragraph, the term `39.6 percent rate
bracket threshold' means--
``(i) in the case any taxpayer described in
subsection (a), $450,000,
``(ii) in the case of any taxpayer
described in subsection (b), $425,000,
``(iii) in the case of any taxpayer
described in subsection (c), $400,000, and
``(iv) in the case of any taxpayer
described in subsection (d), $225,000.
``(C) Inflation adjustment.--For purposes of this
paragraph, with respect to taxable years beginning in
calendar years after 2025, each of the dollar amounts
in subparagraph (B) shall be adjusted in the same
manner as under paragraph (1)(C)(i), except that
subsection (f)(3)(A)(ii) shall be applied by
substituting `2021' for `2016'.''.
(d) Conforming Amendments.--
(1) Section 1(j)(1) is amended by striking ``December 31,
2017'' and inserting ``December 31, 2021''.
(2) The heading of section 1(j) is amended by striking
``2018'' and inserting ``2022''.
(3) The heading of section 1(i) is amended by striking
``Rate Reductions'' and inserting ``Modifications''
(4) Section 15(f) is amended by striking ``rate
reductions'' and inserting ``modifications''.
(e) Section 15 Not to Apply.--For rules providing that section 15
of the Internal Revenue Code of 1986 does not apply to the amendments
made by this section, see sections 1(j)(6) and 15(f) of the Internal
Revenue Code of 1986.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 138202. INCREASE IN CAPITAL GAINS RATE FOR CERTAIN HIGH INCOME
INDIVIDUALS.
(a) In General.--Section 1(h)(1)(D) is amended by striking ``20
percent'' and inserting ``25 percent''.
(b) Re-alignment of 25 Percent Capital Gains Rate Threshold With
39.6 Percent Income Tax Rate Threshold.--Section 1(j)(5) is amended--
(1) by striking subparagraphs (A) and (B) and inserting the
following new subparagraphs:
``(A) In general.--Section 1(h)(1) shall be applied
by substituting `below the maximum zero rate amount'
for `which would (without regard to this paragraph) be
taxed at a rate below 25 percent' in subparagraph
(B)(i).
``(B) Maximum zero rate amount defined.--For
purposes of applying section 1(h) with the
modifications described in subparagraph (A), the
maximum zero rate amount shall be--
``(i) in the case of a joint return or
surviving spouse, $77,200,
``(ii) in the case of an individual who is
a head of household (as defined in section
2(b)), $51,700,
``(iii) in the case of any other individual
(other than an estate or trust), an amount
equal to \1/2\ of the amount in effect for the
taxable year under subclause (I), and
``(iv) in the case of an estate or trust,
$2,600.'', and
(2) by striking ``each of the dollar amounts in clauses (i)
and (ii)'' in subparagraph (C) and inserting ``each dollar
amount in clause (i), (ii), or (iv)''.
(c) Conforming Amendments.--
(1) Section 55(b)(3) is amended by striking subparagraph
(D) and redesignating subparagraph (E) as subparagraph (D).
(2) The following provisions are each amended by striking
``20 percent'' and inserting ``25 percent'':
(A) Section 531.
(B) Section 541.
(C) Section 1445(e)(1).
(D) Section 1445(e)(6).
(E) The second sentence of section 7518(g)(6)(A).
(3) Section 53511(f)(2) of title 46, United States Code, is
amended to read as follows:
``(2) Maximum tax rate.--For that portion of a nonqualified
withdrawal made from the capital gain account during a taxable
year to which section 1(h) of such Code (26 U.S.C. 1(h))
applies, the tax rate used under paragraph (1)(B) may not
exceed 25 percent.''.
(d) Section 15 Not to Apply.--The amendments made by this section
shall not be treated as a change in a rate of tax for purposes of
section 15 of the Internal Revenue Code of 1986.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years ending after September 13, 2021.
(2) Re-alignment of 25 percent capital gains rate threshold
with 39.6 percent income tax rate threshold.--The amendments
made by subsection (b) shall apply to taxable years beginning
after December 31, 2021.
(3) Withholding under sections 1445 and 1446.--The
amendments made by subparagraphs (C) and (D) of subsection
(c)(2) shall apply to dispositions after the date of the
enactment of this Act.
(f) Transitional Rules for Taxable Years Which Include September
13, 2021.--
(1) In general.--For purposes of applying section 1(h) of
the Internal Revenue Code of 1986 with respect to any taxable
year which includes September 13, 2021, the amount determined
under subparagraph (D) of section 1(h)(1) of such Code shall be
the sum of--
(A) 20 percent of the lesser of--
(i) the amount on which a tax is determined
under such subparagraph (D) (without regard to
this subsection), or
(ii) the amount (if any) of net capital
gain determined by taking into account only
dividends, gains, and losses for the portion of
the taxable year on or before September 13,
2021 (determined without regard to collectibles
gain or loss, gain described in section
1(h)(6)(A)(i) of such Code, and section 1202
gain), plus--
(B) 25 percent of the excess (if any) of the amount
described in subparagraph (A)(i) over the amount
described in subparagraph (A)(ii).
(2) Special rule for binding contracts entered into prior
to september 13, 2021.--For purposes of paragraph (1), a gain
recognized in the taxable year that includes September 13,
2021, shall be treated as being with respect to the portion of
such taxable year on or before such date if such gain arises
from a transaction which occurs pursuant to a written binding
contract entered into on or before such date (and which is not
modified thereafter in any material respect).
(3) Alternative minimum tax.--Rules similar to the rules of
paragraph (1) shall apply for purposes of applying section
55(b)(3) of such Code.
(4) Application to pass-thru entities.--In applying this
subsection with respect to any pass-thru entity, the
determination of when dividends, gains, and losses are properly
taken into account shall be made at the entity level.
(5) Definitions of certain terms.--Terms used in this
subsection which are also used in section 1(h) of such Code
shall have the respective meanings that such terms have in such
section.
SEC. 138203. APPLICATION OF NET INVESTMENT INCOME TAX TO TRADE OR
BUSINESS INCOME OF CERTAIN HIGH INCOME INDIVIDUALS.
(a) In General.--Section 1411 is amended by adding at the end the
following new subsection:
``(f) Application to Certain High Income Individuals.--
``(1) In general.--In the case of any individual whose
modified adjusted gross income for the taxable year exceeds the
high income threshold amount, subsection (a)(1) shall be
applied by substituting `the greater of specified net income or
net investment income' for `net investment income' in
subparagraph (A) thereof.
``(2) Phase-in of increase.--The increase in the tax
imposed under subsection (a)(1) by reason of the application of
paragraph (1) of this subsection shall not exceed the amount
which bears the same ratio to the amount of such increase
(determined without regard to this paragraph) as--
``(A) the excess described in paragraph (1), bears
to
``(B) $100,000 (\1/2\ such amount in the case of a
married taxpayer (as defined in section 7703) filing a
separate return).
``(3) High income threshold amount.--For purposes of this
subsection, the term `high income threshold amount' means--
``(A) except as provided in subparagraph (B) or
(C), $400,000,
``(B) in the case of a taxpayer making a joint
return under section 6013 or a surviving spouse (as
defined in section 2(a)), $500,000, and
``(C) in the case of a married taxpayer (as defined
in section 7703) filing a separate return, \1/2\ of the
dollar amount determined under subparagraph (B).
``(4) Specified net income.--For purposes of this section,
the term `specified net income' means net investment income
determined--
``(A) without regard to the phrase `other than such
income which is derived in the ordinary course of a
trade or business not described in paragraph (2),' in
subsection (c)(1)(A)(i),
``(B) without regard to the phrase `described in
paragraph (2)' in subsection (c)(1)(A)(ii),
``(C) without regard to the phrase `other than
property held in a trade or business not described in
paragraph (2)' in subsection (c)(1)(A)(iii),
``(D) without regard to paragraphs (2), (3), and
(4) of subsection (c), and
``(E) by treating paragraphs (5) and (6) of section
469(c) as applying for purposes of subsection (c) of
this section.''.
(b) Application to Trusts and Estates.--Section 1411(a)(2)(A) is
amended by striking ``undistributed net investment income'' and
inserting ``the greater of undistributed specified net income or
undistributed net investment income''.
(c) Clarifications With Respect to Determination of Net Investment
Income.--
(1) Wages subject to fica not taken into account.--Section
1411(c)(6) is amended by inserting ``or wages received with
respect to employment on which a tax is imposed under section
3101(b)'' before the period at the end.
(2) Net operating losses not taken into account.--Section
1411(c)(1)(B) is amended by inserting ``(other than section
172)'' after ``this subtitle''.
(3) Inclusion of certain foreign income.--
(A) In general.--Section 1411(c)(1)(A) is amended
by striking ``and'' at the end of clause (ii), by
striking ``over'' at the end of clause (iii) and
inserting ``and'', and by adding at the end the
following new clause:
``(iv) any amount includible in gross
income under section 951, 951A, 1293, or 1296,
over''.
(B) Proper treatment of certain previously taxed
income.--Section 1411(c) is amended by adding at the
end the following new paragraph:
``(7) Certain previously taxed income.--The Secretary shall
issue regulations or other guidance providing for the treatment
of distributions of amounts previously included in gross income
for purposes of chapter 1 but not previously subject to tax
under this section.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
(e) Transition Rule.--The regulations or other guidance issued by
the Secretary under section 1411(c)(7) of the Internal Revenue Code of
1986 (as added by this section) shall include provisions which provide
for the proper coordination and application of clauses (i) and (iv) of
section 1411(c)(1)(A) with respect to--
(1) taxable years beginning on or before December 31, 2021,
and
(2) taxable years beginning after such date.
SEC. 138204. LIMITATION ON DEDUCTION OF QUALIFIED BUSINESS INCOME FOR
CERTAIN HIGH INCOME INDIVIDUALS.
(a) In General.--Section 199A(a) is amended by striking ``or'' at
the end of paragraph (1), by striking the period at the end of
paragraph (2) and inserting ``, or'', and by adding at the end the
following new paragraph:
``(3) the following amount:
``(A) $500,000 in the case of a joint return or
surviving spouse (as defined in section 2(a)),
``(B) $400,000 in the case of any taxpayer not
described in subparagraph (A), (C), or (D),
``(C) $250,000 in the case of a married individual
filing a separate return, or
``(D) $10,000 in the case of an estate or trust.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 138205. LIMITATIONS ON EXCESS BUSINESS LOSSES OF NONCORPORATE
TAXPAYERS.
(a) Limitation Made Permanent.--
(1) In general.--Section 461(l)(1) is amended to read as
follows:
``(1) Limitation.--In the case of any taxpayer other than a
corporation, any excess business loss of the taxpayer for the
taxable year shall not be allowed.''.
(2) Conforming amendment.--Section 461 is amended by
striking subsection (j).
(b) Modification of Carryover of Disallowed Losses.--Section
461(l)(2) is amended to read as follows:
``(2) Disallowed loss carryover.--Any loss which is
disallowed under paragraph (1) for any taxable year shall be
treated (solely for purposes of this chapter) as a deduction
described in paragraph (3)(A)(i) for the next taxable year.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2020.
SEC. 138206. SURCHARGE ON HIGH INCOME INDIVIDUALS, ESTATES, AND TRUSTS.
(a) In General.--Part I of subchapter A of chapter 1 is amended by
inserting after section 1 the following new section:
``SEC. 1A. SURCHARGE ON HIGH INCOME INDIVIDUALS, ESTATES, AND TRUSTS.
``(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 3 percent of so much of the
modified adjusted gross income of the taxpayer as exceeds--
``(1) $5,000,000, in the case of any taxpayer not described
in paragraph (2) or (3),
``(2) $2,500,000, in the case of a married individual
filing a separate return, and
``(3) $100,000, in the case of an estate or trust.
``(b) Modified Adjusted Gross Income.--For purposes of this
section, the term `modified adjusted gross income' means adjusted gross
income reduced by any deduction (not taken into account in determining
adjusted gross income) allowed for investment interest (as defined in
section 163(d)). In the case of an estate or trust, adjusted gross
income shall be determined as provided in section 67(e).
``(c) Special Rules.--
``(1) Nonresident alien.--In the case of a nonresident
alien individual, only amounts taken into account in connection
with the tax imposed under section 871(b) shall be taken into
account under this section.
``(2) Citizens and residents living abroad.--The dollar
amount applicable to any taxpayer under paragraph (1), (2), or
(3) of subsection (a) (as the case may be) shall be decreased
(but not below zero) by the excess (if any) of--
``(A) the amounts excluded from the taxpayer's
gross income under section 911, over
``(B) the amounts of any deductions or exclusions
disallowed under section 911(d)(6) with respect to the
amounts described in subparagraph (A).
``(3) Charitable trusts.--Subsection (a) shall not apply to
a trust all the unexpired interests in which are devoted to one
or more of the purposes described in section 170(c)(2)(B).
``(4) 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 is amended by inserting after the item
relating to section 1 the following new item:
``Sec. 1A. Surcharge on high income individuals.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 138207. TERMINATION OF TEMPORARY INCREASE IN UNIFIED CREDIT.
(a) In General.--Section 2010(c)(3) of the Internal Revenue Code of
1986 is amended by striking subparagraph (C).
(b) Effective Date.--The amendment made by this section shall apply
to estates of decedents dying and gifts made after December 31, 2021.
SEC. 138208. INCREASE IN LIMITATION ON ESTATE TAX VALUATION REDUCTION
FOR CERTAIN REAL PROPERTY USED IN FARMING OR OTHER TRADES
OR BUSINESSES.
(a) In General.--Section 2032A(a)(2) of the Internal Revenue Code
of 1986 is amended by striking ``$750,000'' and inserting
``$11,700,000''.
(b) Inflation Adjustment.--Section 2032A(a)(3) of such Code is
amended--
(1) by striking ``$750,000'' both places it appears and
inserting ``$11,700,000'',
(2) by striking ``1998'' in the matter preceding
subparagraph (A) and inserting ``2021'', and
(3) by striking ``1997'' in subparagraph (B) and inserting
``2020''.
(c) Effective Date.--The amendments made by this section shall
apply to the estates of decedents dying after December 31, 2021.
SEC. 138209. CERTAIN TAX RULES APPLICABLE TO GRANTOR TRUSTS.
(a) Application of Transfer Taxes.--
(1) In general.--Subtitle B of the Internal Revenue Code of
1986 is amended by adding at the end the following new chapter:
``CHAPTER 16--SPECIAL RULES FOR GRANTOR TRUSTS
``Sec. 2901. Application of transfer taxes.
``SEC. 2901. APPLICATION OF TRANSFER TAXES.
``(a) In General.--In the case of any portion of a trust with
respect to which the grantor is the deemed owner--
``(1) the value of the gross estate of the deceased deemed
owner of such portion shall include all assets attributable to
that portion at the time of the death of such owner,
``(2) any distribution (other than to the deemed owner or
the deemed owner's spouse) from such portion to one or more
beneficiaries during the life of the deemed owner of such
portion (other than in discharge of an obligation of the deemed
owner) shall be treated as a transfer by gift for purposes of
chapter 12,
``(3) if at any time during the life of the deemed owner of
such portion, such owner ceases to be treated as the owner of
such portion under subpart E of part 1 of subchapter J of
chapter 1, all assets attributable to such portion at such time
shall be treated for purposes of chapter 12 as a transfer by
gift made by the deemed owner, and
``(4) proper adjustment shall be made with respect to
amounts so included in the gross estate, or treated as
transferred by gift, pursuant to paragraph (1), (2), or (3), as
the case may be, to account for amounts treated previously as
taxable gifts under chapter 12 with respect to previous
transfers to the trust by the deemed owner.
``(b) Exceptions.--This section shall not apply to any trust that
is includible in the gross estate of the deemed owner (without regard
to subsection (a)(1)).
``(c) Deemed Owner Defined.--For purposes of this chapter, the term
`deemed owner' means any person who is treated as the owner of a
portion of a trust under subpart E of part 1 of subchapter J of chapter
1.''.
(2) Cross-reference.--Section 2511 of such Code is amended
by adding at the end the following new subsection:
``(c) Cross-reference.--For treatment of transfers to grantor
trusts, see section 2901.''.
(3) Clerical amendment.--The table of chapters for subtitle
B of such Code is amended by adding at the end the following
new item:
``Chapter 16. Special Rules for Grantor Trusts''.
(b) Certain Sales to Grantor Trust.--
(1) In general.--Part IV of subchapter O of chapter 1 of
such Code is amended by redesignating section 1062 as section
1063 and inserting after section 1061 the following new
section:
``SEC. 1062. CERTAIN SALES BETWEEN GRANTOR TRUST AND DEEMED OWNER.
``(a) In General.--In the case of any transfer of property between
a trust and the a person who is the deemed owner of the trust (or
portion thereof), such treatment of the person as the owner of the
trust shall be disregarded in determining whether the transfer is a
sale or exchange for purposes of this chapter.
``(b) Exception.--Subsection (a) shall not apply to any trust that
is fully revocable by the deemed owner.
``(c) Deemed Owner.--For purposes of this section, the term `deemed
owner' means any person who is treated as the owner of a portion of a
trust under subpart E of part 1 of subchapter J.''.
(2) Related taxpayers.--Section 267(b) is amended by
striking ``or'' at the end of paragraph (12), by striking the
period at the end of paragraph (13) and inserting ``; or'', and
by adding at the end the following new paragraph:
``(14) A grantor trust and the person treated as the owner
of the trust (or portion thereof) under subpart E of part 1 of
subchapter J of this chapter.''.
(3) Clerical amendment.--The table of sections for part IV
of subchapter O of chapter 1 of such Code is amended by
striking the item relating to section 1062 and inserting the
following new items:
``Sec. 1062. Certain sales to grantor trusts.
``Sec. 1063. Cross references.''.
(c) Effective Date.--The amendments made by this section shall
apply--
(1) to trusts created on or after the date of the enactment
of this Act, and
(2) to any portion of a trust established before the date
of the enactment of this Act which is attributable to a
contribution made on or after such date.
SEC. 138210. VALUATION RULES FOR CERTAIN TRANSFERS OF NONBUSINESS
ASSETS.
(a) In General.--Section 2031 of the Internal Revenue Code of 1986
is amended by redesignating subsection (d) as subsection (f) and by
inserting after subsection (c) the following new subsections:
``(d) Valuation Rules for Certain Transfers of Nonbusiness
Assets.--For purposes of this chapter and chapter 12--
``(1) In general.--In the case of the transfer of any
interest in an entity other than an interest which is actively
traded (within the meaning of section 1092)--
``(A) the value of any nonbusiness assets held by
the entity with respect to such interest shall be
determined as if the transferor had transferred such
assets directly to the transferee (and no valuation
discount shall be allowed with respect to such
nonbusiness assets), and
``(B) such nonbusiness assets shall not be taken
into account in determining the value of the interest
in the entity.
``(2) Nonbusiness assets.--For purposes of this
subsection--
``(A) In general.--The term `nonbusiness asset'
means any passive asset which--
``(i) is held for the production or
collection of income, and
``(ii) is not used in the active conduct of
a trade or business.
``(B) Passive assets used in active conduct of
trade or business.--Except as provided in subparagraph
(C), a passive asset shall not be treated for purposes
of subparagraph (A) as used in the active conduct of a
trade or business unless--
``(i) the asset is property described in
paragraph (1) or (4) of section 1221(a) or is a
hedge with respect to such property, or
``(ii) the asset is real property used in
the active conduct of 1 or more real property
trades or businesses (within the meaning of
section 469(c)(7)(C)) in which the transferor
materially participates and with respect to
which the transferor meets the requirements of
section 469(c)(7)(B)(ii).
For purposes of clause (ii), material participation
shall be determined under the rules of section 469(h),
except that section 469(h)(3) shall be applied without
regard to the limitation to farming activity.
``(C) Exception for working capital.--Any passive
asset which is held as a part of the reasonably
required working capital needs of a trade or business
shall be treated as used in the active conduct of a
trade or business.
``(3) Passive asset.--For purposes of this subsection, the
term `passive asset' means any--
``(A) cash or cash equivalents,
``(B) except to the extent provided by the
Secretary, stock in a corporation or any other equity,
profits, or capital interest in a partnership,
``(C) evidence of indebtedness, option, forward or
futures contract, notional principal contract, or
derivative,
``(D) asset described in clause (iii), (iv), or (v)
of section 351(e)(1)(B),
``(E) annuity,
``(F) real property,
``(G) asset (other than a patent, trademark, or
copyright) which produces royalty income,
``(H) commodity,
``(I) collectible (within the meaning of section
408(m)),
``(J) personal property (as defined in section
1092(d)(1)) or position in personal property (within
the meaning of section 1092(d)(2)), or
``(K) other asset specified in regulations
prescribed by the Secretary.
``(4) Look-thru rules.--
``(A) In general.--If a passive asset of an entity
consists of a 10-percent interest in any other entity,
this subsection shall be applied by disregarding the
10-percent interest and by treating the entity as
holding directly its ratable share of the assets of the
other entity. This subparagraph shall be applied
successively to any 10-percent interest of such other
entity in any other entity.
``(B) 10-percent interest.--The term `10-percent
interest' means--
``(i) in the case of an interest in a
corporation, ownership of at least 10 percent
(by vote or value) of the stock in such
corporation,
``(ii) in the case of an interest in a
partnership, ownership of at least 10 percent
of the capital or profits interest in the
partnership, and
``(iii) in any other case, ownership of at
least 10 percent of the beneficial interests in
the entity.
For purposes of the preceding sentence, the rules
prescribed by section 318(a) shall apply.
``(5) Coordination with subsection (b).--Subsection (b)
shall apply after the application of this subsection.
``(6) Regulations.--The Secretary shall issue such
regulations or other guidance as the Secretary determines is
necessary or appropriate to carry out this subsection,
including regulations or other guidance to--
``(A) determine whether a passive asset is used in
the active conduct of a trade or business, in addition
to the instances described in paragraph (2)(B), and
``(B) determine whether a passive asset is held as
a part of the reasonably required working capital needs
of a trade or business under paragraph (2)(C).''.
(b) Effective Date.--The amendments made by this section shall
apply to transfers after the date of the enactment of this Act.
PART 3--MODIFICATIONS OF RULES RELATING TO RETIREMENT PLANS
Subpart A--Limitations on High-income Taxpayers With Large Retirement
Account Balances
SEC. 138301. CONTRIBUTION LIMIT FOR INDIVIDUAL RETIREMENT PLANS OF
HIGH-INCOME TAXPAYERS WITH LARGE ACCOUNT BALANCES.
(a) Contribution Limit.--
(1) In general.--Subpart A of part I of subchapter D of
chapter 1 is amended by adding at the end the following:
``SEC. 409B. CONTRIBUTION LIMIT ON INDIVIDUAL RETIREMENT PLANS OF HIGH-
INCOME TAXPAYERS WITH LARGE ACCOUNT BALANCES.
``(a) General Rule.--Notwithstanding any other provision of this
title, in the case of an individual who is an applicable taxpayer for a
taxable year, no annual additions which are allocable to such taxable
year shall be made by, or on behalf of, such individual to any
individual retirement plan to the extent such annual additions exceed
the excess (if any) of--
``(1) the applicable dollar amount for such taxable year,
over
``(2) the aggregate vested balances to the credit of the
individual (whether as a participant, owner, or beneficiary) in
all applicable retirement plans (determined as of the close of
the calendar year preceding the calendar year in which such
taxable year begins).
``(b) Definitions and Special Rules.--For purposes of this
section--
``(1) Annual addition.--
``(A) In general.--Except as provided in this
paragraph, the term `annual addition' means any
contribution to an individual retirement plan.
``(B) Contributions to sep and simple plans.--In
the case of any employer or employee contributions by,
or on behalf of, an individual to a simplified employee
pension under section 408(k) or a simple retirement
account under section 408(p)--
``(i) such contributions shall not be
treated as annual additions for purposes of
applying the limitation under subsection (a),
but
``(ii) the excess described in subsection
(a) shall be reduced by the amount of such
contributions in applying such limitation to
other annual additions with respect to such
individual.
``(C) Rollover contributions disregarded.--A
rollover contribution under section 402(c),
402A(c)(3)(A), 403(a)(4), 403(b)(8), 408(d)(3)(A),
408A(e)(1), or 457(e)(16) shall not be treated as an
annual addition.
``(D) Accounts acquired by death or divorce or
separation.--The acquisition of an individual
retirement plan (or the transfer to or contribution of
amounts to an individual retirement plan) by reason
of--
``(i) the death of another individual, or
``(ii) divorce or separation (pursuant to
section 408(d)(6)),
shall not be treated as an annual addition.
``(2) Applicable dollar amount.--The term `applicable
dollar amount' means $10,000,000.
``(3) Applicable retirement plan.--The term `applicable
retirement plan' means--
``(A) a defined contribution plan to which section
401(a) or 403(a) applies,
``(B) an annuity contract under section 403(b),
``(C) an eligible deferred compensation plan
described in section 457(b) which is maintained by an
eligible employer described in section 457(e)(1)(A), or
``(D) an individual retirement plan.
``(4) Applicable taxpayer.--
``(A) In general.--The term `applicable taxpayer'
means, with respect to any taxable year, a taxpayer
whose adjusted taxable income for such taxable year
exceeds the amount determined under subparagraph (B).
``(B) Dollar limit.--The amount determined under
this subparagraph for any taxable year is--
``(i) $400,000 for an individual who is a
taxpayer not described in clause (ii) or (iii),
``(ii) $425,000 in the case of an
individual who is a head of household (as
defined in section 2(b)), and
``(iii) $450,000 in the case of an
individual who is a married individual filing a
joint return or a surviving spouse (as defined
in section 2(a)).
``(C) Adjusted taxable income.--The term `adjusted
taxable income' means taxable income determined without
regard to--
``(i) any deduction for annual additions to
individual retirement plans to which subsection
(a) applies, and
``(ii) any increase in minimum required
distributions by reason of section 4974(e).
``(5) Adjustments for inflation.--
``(A) In general.--In the case of any taxable year
beginning after 2022, each of the dollar amounts under
paragraph (2) and paragraph (4)(B) shall be increased
by an amount equal to the product of--
``(i) such dollar amount, and
``(ii) the cost-of-living adjustment under
section 1(f)(3) for the calendar year in which
such taxable year begins, determined by
substituting `calendar year 2021' for `calendar
year 1992' in subparagraph (B) thereof.
``(B) Rounding.--If any amount as adjusted under
subparagraph (A) is not--
``(i) in the case of the dollar amount
under paragraph (2), a multiple of $250,000,
such amount shall be rounded to the next lowest
multiple of $250,000, and
``(ii) in the case of a dollar amount under
paragraph (4), a multiple of $1,000, such
amount shall be rounded to the next lowest
multiple of $1,000.
``(c) Regulations.--The Secretary shall prescribe such regulations
and guidance as are necessary or appropriate to carry out the purposes
of this section, including regulations or guidance that provide for the
application of this section and section 4974(e) in the case of plans
with a valuation date other than the last day of a calendar year.''.
(2) Conforming amendments.--
(A) The table of contents for subpart A of part I
of subchapter D of chapter 1 is amended by adding after
the item relating to section 409A the following new
item:
``Sec. 409B. Contribution limit on individual retirement plans of high-
income taxpayers with large account
balances.''.
(B) Section 408(r) is amended by adding at the end
the following new paragraph:
``(3) For additional limitation on contributions to
individual retirement plans with large account balances, see
sections 402A(c)(3)(A) and 409B.''.
(b) Excise Tax on Excess Annual Additions.--
(1) In general.--Section 4973 is amended by adding at the
end the following new subsection:
``(i) Special Rule for Individual Retirement Plans With Excess
Annual Additions.--For purposes of this section, in the case of
individual retirement plans, the term `excess contributions' with
respect to any taxable year means the sum of--
``(1) the excess of the annual additions (within the
meaning of section 409B(b)(1)) to such plans over the
limitation under section 409B(a) for such taxable year, reduced
by the amount of any excess contributions determined under
subsections (b) and (f), and
``(2) the lesser of--
``(A) the amount determined under this subsection
for the preceding taxable year with respect to such
plans, reduced by the aggregate distributions from such
plans for the taxable year (including distributions
required under section 4974(e)) to the extent not
contributed in a rollover contribution to another
eligible retirement plan in accordance with section
402(c), 402A(c)(3)(A), 403(a)(4), 403(b)(8),
457(e)(16), 408(d)(3), or 408A(d)(3), or
``(B) the amount (if any) by which the amount
determined under section 409B(a)(2) for the taxable
year exceeds the applicable dollar amount under section
409B(b)(2) for the taxable year.''.
(2) Conforming amendments.--Subsections (b) and (f) of
section 4973 are each amended by inserting ``, except as
further provided in subsection (i)'' after ``For purposes of
this section''.
(c) Reporting Requirements.--Section 6057(a) is amended by adding
at the end the following:
``(3) Additional information regarding high account
balances.--
``(A) In general.--If, as of the close of any plan
year, 1 or more participants in an applicable
retirement plan (as defined in section 409B(b)(3)
without regard to subparagraph (D) thereof) have a
vested account balance of at least $2,500,000, the plan
administrator shall file a statement with the Secretary
which includes--
``(i) the name and identifying number of
each such participant (without regard to
whether such participant has separated from
employment), and
``(ii) the amount to which each such
participant is entitled.
``(B) Inclusion in registration statement.--If both
subparagraph (A) and paragraph (1) apply to a plan, the
plan administrator shall include the information
required under subparagraph (A) in the registration
statement under paragraph (1) rather than file a
statement under subparagraph (A).
``(C) Adjustments for inflation.--In the case of
any plan year beginning after 2022, the $2,500,000
amount under subparagraph (A) shall be increased by an
amount equal to the product of--
``(i) such dollar amount, and
``(ii) the cost-of-living adjustment under
section 1(f)(3) for the calendar year in which
such taxable year begins, determined by
substituting `calendar year 2021' for `calendar
year 1992' in subparagraph (B) thereof.
If the amount as adjusted under the preceding sentence
is not a multiple of $250,000, such amount shall be
rounded to the next lowest multiple of $250,000.''.
(d) Effective Dates.--
(1) In general.--The amendments made by subsections (a) and
(b) shall apply to taxable years beginning after December 31,
2021.
(2) Plan requirements.--The amendments made by subsection
(c) shall apply to plan years beginning after December 31,
2021.
SEC. 138302. INCREASE IN MINIMUM REQUIRED DISTRIBUTIONS FOR HIGH-INCOME
TAXPAYERS WITH LARGE RETIREMENT ACCOUNT BALANCES.
(a) In General.--Section 4974 is amended by adding at the end the
following:
``(e) Increase in Minimum Required Distributions for High-income
Taxpayers With Large Aggregate Account Balances.--
``(1) In general.--If this subsection applies to a payee
who is an applicable taxpayer (as defined in section
409B(b)(4)) for a taxable year--
``(A) all qualified retirement plans and eligible
deferred compensation plans of the payee which are
applicable retirement plans taken into account in
computing the excess described in paragraph (3)(A)
shall be treated as 1 plan solely for purposes of
applying this section to the increase in minimum
required distributions for such taxable year determined
under subparagraph (B), and
``(B) the minimum required distributions under this
section for all plans treated as 1 plan under
subparagraph (A) with respect to such payee for such
taxable year shall be increased by the excess (if any)
of--
``(i) the sum of--
``(I) if paragraph (2) applies to
such taxable year, the applicable Roth
excess amount, plus
``(II) 50 percent of the excess
determined under paragraph (3)(A),
reduced by the applicable Roth excess
amount, over
``(ii) the sum of the minimum required
distributions (determined without regard to
this subsection) for all such plans.
``(2) Applicable roth excess amount.--
``(A) Application.--For purposes of paragraph
(1)(B)(i), this paragraph applies to a taxable year of
a payee if the aggregate vested balances to the credit
of the payee (whether as a participant, owner, or
beneficiary) in all applicable retirement plans
(determined as of the close of the calendar year
preceding the calendar year in which the taxable year
begins) exceed 200 percent of the applicable dollar
amount for the calendar year in which the taxable year
begins.
``(B) Applicable roth excess amount.--The
applicable Roth excess amount for any taxable year to
which this paragraph applies is an amount equal to the
lesser of--
``(i) the excess determined under
subparagraph (A), or
``(ii) the aggregate balances to the credit
of the payee (whether as a participant, owner,
or beneficiary) in all Roth IRAs and designated
Roth accounts (within the meaning of section
402A) as of the time described in subparagraph
(A).
``(3) Application.--This subsection shall apply to a payee
for a taxable year--
``(A) if the aggregate vested balances to the
credit of the payee (whether as a participant, owner,
or beneficiary) in all applicable retirement plans
(determined as of the close of the calendar year
preceding the calendar year in which the taxable year
begins) exceed the applicable dollar amount for the
calendar year in which the taxable year begins, and
``(B) without regard to whether amounts with
respect to the payee are otherwise required to be
distributed under section 401(a)(9), 403(b)(10),
408(a)(6), 408(b)(3), or 457(d)(2).
``(4) Coordination and allocation.--
``(A) Minimum distribution requirements.--If this
subsection applies to a payee for any taxable year--
``(i) this section shall apply first to
minimum required distributions determined
without regard to this subsection and then to
any increase in minimum required distributions
by reason of this subsection, and
``(ii) nothing in this subsection shall be
construed to affect the amount of any minimum
required distribution determined without regard
to this subsection or the plan or plans from
which it is required to be distributed from.
``(B) Allocation of increase in minimum required
distributions.--
``(i) In general.--Except as provided in
clauses (ii) and (iii), the taxpayer may, in
such form and manner as the Secretary may
prescribe, allocate any increase in minimum
required distributions by reason of this
subsection to applicable retirement plans
treated as 1 plan under subparagraph (A) in
such manner as the taxpayer chooses.
``(ii) Allocation to roth iras and
accounts.--In the case of a taxable year to
which paragraph (2) applies, the portion of any
increase in minimum required distributions by
reason of this subsection equal to the
applicable Roth excess amount shall be
allocated first to Roth IRAs and then to
designated Roth accounts (within the meaning of
section 402A) of the payee.
``(iii) Special rules for employee stock
ownership plans.--If any payee to which this
subsection applies for any taxable year has
account balances in 1 or more employee stock
ownership plans (as defined in section
4975(e)(7)) any portion of which is invested in
employer securities which are not readily
tradable on an securities market, the increase
in minimum required distributions by reason of
this subsection shall be allocated--
``(I) first to all account balances
(other than such portions) of the payee
in all applicable retirement plans in
the manner provided by this
subparagraph (without regard to this
clause), and
``(II) then to such portions in
such manner as the taxpayer chooses.
The Secretary shall prescribe regulations which
provide that if any such increase is allocated
to any such portion of an account balance for
the first taxable year of the payee beginning
in 2022, the payee may elect to have such
portion distributed over a period of years not
greater than the period specified by the
Secretary in such regulations (and any
distributions made in accordance with such
election shall be treated for purposes of this
section as made in such first taxable year).
``(5) Distributions not eligible for rollovers.--For
purposes of determining whether a distribution is an eligible
rollover distribution, any distribution from an applicable
retirement plan which is attributable to any increase in
minimum required distributions by reason of this subsection
shall be treated as a distribution required under section
401(a)(9), 403(b)(10), 408(a)(6), 408(b)(3), or 457(d)(2),
whichever is applicable.
``(6) Definitions.--For purposes of this subsection, any
term used in this subsection which is also used in section 409B
shall have the same meaning as when such term is used in such
section.''.
(b) Special Rules.--
(1) Distribution rights.--
(A) Qualified trusts.--Section 401(a) is amended by
inserting after paragraph (38) the following new
paragraph:
``(39) Immediate distribution right.--A trust forming part
of a defined contribution plan shall not constitute a qualified
trust under this section unless an employee who certifies to
the plan that the employee is a taxpayer who is subject to the
distribution requirements of section 4974(e) may elect to
receive a distribution from the employee's account balance
under the plan in such amount as the employee may elect,
including any amounts attributable to a qualified cash or
deferred arrangement (as defined in subsection (k)(2)).''.
(B) Annuity contracts.--
(i) Custodial accounts.--Section
403(b)(7)(A) is amended by adding at the end
the following new flush sentence:
``Notwithstanding clause (i), the custodial account
shall permit an employee who certifies that the
employee is a taxpayer who is subject to the
distribution requirements of section 4974(e) to elect
to receive a distribution from the employee's custodial
account in such amount as the employee may elect.''.
(ii) Annuity contracts.--Section 403(b)(11)
is amended by adding at the end the following
new sentence: ``Notwithstanding subparagraphs
(A), (B), (C), and (D), the annuity contract
shall permit an employee who certifies that the
employee is a taxpayer who is subject to the
distribution requirements of section 4974(e) to
elect to receive a distribution of
contributions made pursuant to a salary
reduction agreement (within the meaning of
section 402(g)(3)) from the employee's annuity
contract in such amount as the employee may
elect.''
(C) Governmental plans.--Section 457(d)(1) is
amended by adding at the end the following new flush
sentence:
``Notwithstanding subparagraph (A), an eligible deferred
compensation plan of an employer described in subsection
(e)(1)(A) shall permit an employee who certifies that the
employee is a taxpayer who is subject to the distribution
requirements of section 4974(e) to elect to receive a
distribution from the plan in such amount as the employee may
elect.''.
(2) Exception from 10 percent additional tax on early
distributions.--Section 72(t)(2) is amended by adding at the
end the following new subparagraph:
``(I) Distributions of excess balances.--
Distributions from an applicable retirement plan
(within the meaning of section 409B)) to the extent
such distributions for the taxable year do not exceed
the amount required to be distributed from such plan
under section 4974(e).''.
(3) Withholding.--Section 3405(b) is amended by adding at
the end the following new paragraph:
``(3) Additional withholding for required distributions
from high balance retirement accounts.--
``(A) In general.--For purposes of this section, a
distribution pursuant to section 401(a)(39), the last
sentence of section 403(b)(7)(A), the last sentence of
section 403(b)(11), and the last sentence of section
457(d)(1) shall be treated as a nonperiodic
distribution, except that in applying this subsection
to such distribution--
``(i) paragraph (1) shall be applied by
substituting `35 percent' for `10 percent', and
``(ii) no election may be made under
paragraph (2) with respect to such
distribution.
``(B) Exception.--Subparagraph (A) shall not apply
to any qualified distribution from a designated Roth
account (within the meaning of section 402A).''.
(c) Effective Dates.--
(1) In general.--The amendments made by subsection (a)
shall apply to taxable years beginning after December 31, 2021.
(2) Plan requirements.--The amendments made by subsection
(b) shall apply to plan years beginning after December 31,
2021.
(d) Provisions Relating to Plan Amendments.--
(1) In general.--If this subsection applies to any plan or
contract amendment, such plan or contract shall be treated as
being operated in accordance with the terms of the plan during
the period described in paragraph (2)(B)(i).
(2) Amendments to which subsection applies.--
(A) In general.--This subsection shall apply to any
amendment to any plan or annuity contract which is
made--
(i) pursuant to any amendment made by this
section or pursuant to any regulation issued by
the Secretary of the Treasury under this
section or such amendments, and
(ii) on or before the last day of the first
plan year beginning after December 31, 2022, or
such later date as the Secretary of the
Treasury may prescribe.
In the case of a governmental or collectively bargained
plan to which subparagraph (B) or (C) of subsection
(a)(4) applies, clause (ii) shall be applied by
substituting the date which is 2 years after the date
otherwise applied under such clause.
(B) Conditions.--This subsection shall not apply to
any amendment unless--
(i) during the period--
(I) beginning on the date the
legislative or regulatory amendment
described in paragraph (1)(A) takes
effect (or in the case of a plan or
contract amendment not required by such
legislative or regulatory amendment,
the effective date specified in such
amendment), and
(II) ending on the date described
in subparagraph (A)(ii) (or, if
earlier, the date the plan or contract
amendment is adopted),
the plan or contract is operated as if such
plan or contract amendment were in effect; and
(ii) such plan or contract amendment
applies retroactively for such period.
Subpart B--Other Provisions Relating to Individual Retirement Plans
SEC. 138311. TAX TREATMENT OF ROLLOVERS TO ROTH IRAS AND ACCOUNTS.
(a) Rollovers and Conversions Limited to Taxable Amounts.--
(1) Roth iras.--
(A) In general.--Paragraph (1) of section 408A(e)
is amended by adding at the end the following new
sentence: ``A qualified rollover contribution shall not
include any rollover contribution from any eligible
retirement plan described in subparagraph (B) (other
than from a designated Roth account (within the meaning
of section 402A)) if any portion of the distribution
from which such contribution is made would (without
regard to such contribution) be treated as not
includible in gross income.''
(B) Conversions.--Subparagraph (C) of section
408A(d)(3) is amended by adding at the end the
following new sentence: ``This subparagraph shall not
apply if any portion of the plan being converted would
be treated as not includible in gross income if
distributed at the time of the conversion.''
(2) Designated roth accounts.--Section 402A(c)(4)(B) is
amended by inserting ``, determined after the application of
the last sentence of paragraph (1) thereof'' after ``section
408A(e)''.
(3) Effective date.--The amendments made by this subsection
shall apply to distributions, transfers, and contributions made
after December 31, 2021.
(b) No Rollovers or Conversions for High-income Taxpayers.--
(1) Roth iras.--
(A) Qualified rollover contribution.--Section
408A(e), as amended by subsection (a), is amended by
adding at the end the following:
``(3) High-income taxpayers may only rollover from roth
iras and accounts.--If--
``(A) a taxpayer is an applicable taxpayer (as
defined in section 409B(b)(4)) for the taxable year in
which a distribution is made, and
``(B) such distribution is contributed to a Roth
IRA in a rollover contribution,
such contribution shall be treated as a qualified rollover
contribution under paragraph (1) only if it is made from
another Roth IRA or from a designated Roth account (within the
meaning of section 402A).''.
(B) Elimination of conversions.--Paragraph (3) of
section 408A(d), as amended by subsection (a), is
amended by adding at the end the following:
``(G) Paragraph not to apply to high-income
taxpayers.--If a taxpayer is an applicable taxpayer (as
defined in section 409B(b)(4)) for any taxable year,
this paragraph shall not apply to any distribution to
which this paragraph otherwise applies (or to any
conversion described in subparagraph (C)) which is made
during such taxable year.''.
(2) Designated roth accounts.--Paragraph (4) of section
402A(c) is amended by adding at the end the following:
``(F) Paragraph not to apply to high-income
taxpayers.--If a taxpayer is an applicable taxpayer (as
defined in section 409B(b)(4)) for any taxable year,
this paragraph shall not apply to any distribution to
which this paragraph otherwise applies and which is
made during such taxable year.''.
(3) Effective date.--The amendments made by this subsection
shall apply to distributions, transfers, and contributions made
in taxable years beginning after December 31, 2031.
SEC. 138312. PROHIBITION OF IRA INVESTMENTS CONDITIONED ON ACCOUNT
HOLDER'S STATUS.
(a) In General.--Subsection (a) of section 408 is amended by adding
at the end the following new paragraph:
``(7) No part of the trust funds will be invested in any
security if the issuer of such security (or any other person
specified by the Secretary) requires the individual on whose
behalf the trust is maintained to make a representation to the
issuer or such other person that such individual--
``(A) has a specified minimum amount of income or
assets,
``(B) has completed a specified minimum level of
education, or
``(C) holds a specific license or credential.''.
(b) Loss of Exemption of Account.--Paragraph (2) of section 408(e)
is amended--
(1) by striking ``'' each place it appears in subparagraph
(A) and inserting ``maintained'',
(2) by redesignating subparagraph (B) as subparagraph (C),
(3) by inserting after subparagraph (A) the following new
subparagraph:
``(B) Prohibited investment.--If, during any
taxable year of the individual for whose benefit any
individual retirement account is maintained, the
investment of any part of the funds of such individual
retirement account does not comply with subsection
(a)(7), such account ceases to be an individual
retirement account as of the first day of such taxable
year. Rules similar to the rules of clauses (i) and
(ii) of subparagraph (A) shall apply for purposes of
this subparagraph.'',
(4) by striking ``where employee engages in prohibited
transaction'' in the heading and inserting ``in case of certain
prohibited transactions and investments'',
(5) by striking ``In general'' in the heading of
subparagraph (A) and inserting ``Employee engaging in
prohibited transaction'', and
(6) by striking ``(A)'' in subparagraph (C), as so
redesignated, and inserting ``(A) or (B)''.
(c) Conforming Amendments.--
(1) Paragraph (1) of section 408(c) is amended by striking
``(1) through (6)'' and inserting ``(1) through (7)''.
(2) Paragraph (3) of section 4975(c) is amended--
(A) striking ``'' and inserting ``maintained'',
(B) by striking ``transaction'' both places it
appears and inserting ``transaction or investment'',
and
(C) by striking ``section 408(e)(2)(A)'' and
inserting ``subparagraph (A) or (B) of section
408(e)(2)''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2021.
(2) Special rule for existing investments.--If, on the date
of the enactment of this Act, an individual retirement account
holds an investment prohibited under section 408(a)(7) of the
Internal Revenue Code of 1986 (as added by subsection (a)), the
amendments made by this section shall apply to such investment
for taxable years beginning after December 31, 2023.
SEC. 138313. STATUTE OF LIMITATIONS WITH RESPECT TO IRA NONCOMPLIANCE.
(a) In General.--Subsection (c) of section 6501 is amended by
adding at the end the following new paragraph:
``(13) Noncompliance relating to an individual retirement
plan.--
``(A) Misreporting.--In the case of any substantial
error (willful or otherwise) in the reporting on a
return of any information relating to the valuation of
investment assets with respect to an individual
retirement plan, the time for assessment of any tax
imposed by this title with respect to such plan shall
not expire before the date which is 6 years after the
return containing such error was filed (whether or not
such return was filed on or after the date prescribed).
``(B) Prohibited transactions.--The time for
assessment of any tax imposed by section 4975 shall not
expire before the date which is 6 years after the
return was filed (whether or not such return was filed
on or after the date prescribed).''.
(b) Effective Date.--The amendment made by this section shall apply
to taxes with respect to which the 3-year period under section 6501(a)
of the Internal Revenue Code of 1986 (without regard to the amendment
made by this section) ends after December 31, 2021.
SEC. 138314. PROHIBITION OF INVESTMENT OF IRA ASSETS IN ENTITIES IN
WHICH THE OWNER HAS A SUBSTANTIAL INTEREST.
(a) In General.--Subsection (a) of section 408, as amended by the
preceding provisions of this Act, is amended by adding at the end the
following new paragraph:
``(8) No part of the trust funds will be invested in a
corporation, partnership or other unincorporated enterprise, or
trust or estate if--
``(A) in the case of an entity with respect to
which interests described in clause (i), (ii), or (iii)
are not readily tradable on an securities market, 10
percent or more of--
``(i) the combined voting power of all
classes of stock entitled to vote or the total
value of shares of all classes of stock of such
corporation,
``(ii) the capital interest or profits
interest of such partnership or enterprise, or
``(iii) the beneficial interest of such
trust or estate,
is owned (directly or indirectly) or held by the
individual on whose behalf the trust is maintained, or
``(B) the individual on whose behalf the trust is
maintained is an officer or director (or an individual
having powers or responsibilities similar to officers
or directors) of such corporation, partnership, or
other unincorporated enterprise.
For purposes of subparagraph (A), the constructive ownership
rules of paragraphs (4) and (5) of section 4975(e) shall apply,
and any asset or interest held by the trust shall be treated as
held by the individual described in such subparagraph.''.
(b) Loss of Exemption of Account.--Subparagraph (B) of section
408(e)(2), as added by this Act, is amended by striking ``(a)(7)'' and
inserting ``(a)(7) or (a)(8)''.
(c) Conforming Amendment.--Paragraph (1) of section 408(c), as
amended by the preceding provisions of this Act, is amended by striking
``(1) through (7)'' and inserting ``(1) through (8)''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to investments made
in taxable years beginning after December 31, 2021.
(2) Special rule for existing investments.--If, on the date
of the enactment of this Act, an individual retirement account
holds an investment prohibited under section 408(a)(8) of the
Internal Revenue Code of 1986 (as added by subsection (a)), the
amendments made by this section shall apply to such investment
for taxable years beginning after December 31, 2023.
SEC. 138315. IRA OWNERS TREATED AS DISQUALIFIED PERSONS FOR PURPOSES OF
PROHIBITED TRANSACTION RULES.
(a) In General.--Paragraph (2) of section 4975(e) is amended--
(1) by striking ``or'' at the end of subparagraph (H),
(2) by striking the period at the end of subparagraph (I)
and inserting ``; or'',
(3) by inserting after subparagraph (I) the following new
subparagraph:
``(J) the individual for whose benefit a plan
described in subparagraph (B) or (C) of paragraph (1)
is maintained.'',
(4) by striking ``or (E)'' both places it appears in
subparagraphs (F) and (G) and inserting ``(E), or (J) (in the
case of a plan described in subparagraph (B) or (C) of
paragraph (1))'',
(5) by striking ``or (G)'' in subparagraph (I) and
inserting ``(G), or (J) (in the case of a plan described in
subparagraph (B) or (C) of paragraph (1))'', and
(6) by adding at the end the following: ``For purposes of
subparagraphs (G) and (I), any asset or interest held by a plan
described in subparagraph (B) or (C) of paragraph (1) shall be
treated as owned by the individual described in subparagraph
(J) with respect to such plan.''.
(b) Conforming Amendments.--
(1) Subparagraph (A) of section 408(e)(2), as amended by
the preceding provisions of this Act, is amended to read as
follows:
``(A) Employee engaging in prohibited
transaction.--If, during any taxable year of the
individual for whose benefit any individual retirement
account is maintained, that individual engages in any
transaction prohibited by section 4975 with respect to
such account, such account ceases to be an individual
retirement account as of the first day of such taxable
year. For purposes of this paragraph, the separate
account for the benefit of any individual within an
individual retirement account maintained by an employer
or association of employees is treated as a separate
individual retirement account.''.
(2) Subparagraph (B) of section 408(e)(2), as added by this
Act, is amended by striking the last sentence.
(c) Effective Date.--The amendments made by this section shall
apply to transactions occurring after December 31, 2021.
PART 4--FUNDING THE INTERNAL REVENUE SERVICE AND IMPROVING TAXPAYER
COMPLIANCE
SEC. 138401. FUNDING OF THE INTERNAL REVENUE SERVICE.
In addition to amounts otherwise available, there are appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated:
(1) $78,935,000,000, to remain available until September
30, 2031, for necessary expenses for the Internal Revenue
Service (IRS) for strengthening tax enforcement activities and
increasing voluntary compliance, expanding audits and other
enforcement activities, and modernizing information technology
to effectively support enforcement activities, except that no
use of these funds is intended to increase taxes on any
taxpayer with taxable income below $400,000;
(2) $410,000,000, to remain available until September 30,
2031, for necessary expenses for the Treasury Inspector General
for Tax Administration to provide oversight of the IRS,
including ensuring that taxpayer privacy is protected and that
no undue burden is imposed on small businesses from IRS
enforcement activities; and
(3) $157,000,000, to remain available until September 30,
2031, for the Tax Court for adjudicating tax disputes.
SEC. 138402. APPLICATION OF BACKUP WITHHOLDING WITH RESPECT TO THIRD
PARTY NETWORK TRANSACTIONS.
(a) In General.--Section 3406(b) is amended by adding at the end
the following new paragraph:
``(8) Other reportable payments include payments in
settlement of third party network transactions only where
aggregate for calendar year is $600 or more.--Any payment in
settlement of a third party network transaction required to be
shown on a return required under section 6050W which is made
during any calendar year shall be treated as a reportable
payment only if--
``(A) the aggregate amount of such payment and all
previous such payments made by the third party
settlement organization to the participating payee
during such calendar year equals or exceeds $600, or
``(B) the third party settlement organization was
required under section 6050W to file a return for the
preceding calendar year with respect to payments to the
participating payee.''.
(b) Conforming Amendment.--Section 6050W(e) is amended by inserting
``equal or'' before ``exceed $600''.
(c) Effective Date.--The amendments made by this section shall
apply to calendar years beginning after December 31, 2021.
(d) Transitional Rule for 2022.--In the case of payments made
during calendar year 2022, section 3406(b)(8)(A) of the Internal
Revenue Code of 1986 (as added by this section) shall be applied by
inserting ``and the aggregate number of third party network
transactions settled by the third party settlement organization with
respect to the participating payee during such calendar year exceeds
200'' before the comma at the end.
SEC. 138403. LIMITATION ON DEDUCTION FOR QUALIFIED CONSERVATION
CONTRIBUTIONS MADE BY PASS-THROUGH ENTITIES, ETC.
(a) In General.--Section 170(h) is amended by adding at the end the
following new paragraphs:
``(7) Limitation on deduction for qualified conservation
contributions made by pass-through entities.--
``(A) In general.--A contribution by a partnership
(whether directly or as a distributive share of a
contribution of another partnership) shall not be
treated as a qualified conservation contribution for
purposes of this section if the amount of such
contribution exceeds 2.5 times the sum of each
partner's relevant basis in such partnership.
``(B) Relevant basis.--For purposes of this
paragraph--
``(i) In general.--The term `relevant
basis' means, with respect to any partner, the
portion of such partner's modified basis in the
partnership which is allocable (under rules
similar to the rules of section 755) to the
portion of the real property with respect to
which the contribution described in
subparagraph (A) is made.
``(ii) Modified basis.--The term `modified
basis' means, with respect to any partner, such
partner's adjusted basis in the partnership as
determined--
``(I) immediately before the
contribution described in subparagraph
(A),
``(II) without regard to section
752, and
``(III) by the partnership after
taking into account the adjustments
described in subclauses (I) and (II)
and such other adjustments as the
Secretary may provide.
``(C) Exception for contributions outside 3-year
holding period.--Subparagraph (A) shall not apply to
any contribution which is made at least 3 years after
the latest of--
``(i) the last date on which the
partnership that made such contribution
acquired any portion of the real property with
respect to which such contribution is made,
``(ii) the last date on which any partner
in the partnership that made such contribution
acquired any interest in such partnership, and
``(iii) if the interest in the partnership
that made such contribution is held through one
or more partnerships--
``(I) the last date on which any
such partnership acquired any interest
in any other such partnership, and
``(II) the last date on which any
partner in any such partnership
acquired any interest in such
partnership.
``(D) Exception for family partnerships.--
``(i) In general.--Subparagraph (A) shall
not apply with respect to any contribution made
by any partnership if substantially all of the
partnership interests in such partnership are
held, directly or indirectly, by an individual
and members of the family of such individual.
``(ii) Members of the family.--For purposes
of this subparagraph, the term `members of the
family' means, with respect to any individual--
``(I) the spouse of such
individual, and
``(II) any individual who bears a
relationship to such individual which
is described in subparagraphs (A)
through (G) of section 152(d)(2).
``(E) Application to other pass-through entities.--
Except as may be otherwise provided by the Secretary,
the rules of this paragraph shall apply to S
corporations and other pass-through entities in the
same manner as such rules apply to partnerships.
``(F) Regulations.--The Secretary shall prescribe
such regulations or other guidance as may be necessary
or appropriate to carry out the purposes of this
paragraph, including regulations or other guidance--
``(i) to require reporting, including
reporting related to tiered partnerships and
the modified basis of partners, and
``(ii) to prevent the avoidance of the
purposes of this paragraph.
``(8) Notice of certain failures.--
``(A) In general.--If a donor is found by the
Secretary to have failed to meet the requirement that a
qualified conservation contribution shall be granted
and protected in perpetuity by reason of defective
language in the deed relating to property line
adjustments or extinguishment clauses, the donor shall
have 90 days from the written notice by the Secretary
to correct such failure, unless the Secretary can
demonstrate that the donor's failure to meet those
requirements was intentional.
``(B) Exception.--Subparagraph (A) shall not apply
to any reportable transaction or any contribution that
is not treated as a qualified conservation contribution
by reason of paragraph (7).''.
(b) Application of Accuracy-Related Penalties.--
(1) In general.--Section 6662(b) is amended by inserting
after paragraph (9) the following new paragraph:
``(10) Any disallowance of a deduction by reason of section
170(h)(7).''.
(2) Treatment as gross valuation misstatement.--Section
6662(h)(2) is amended by striking ``and'' at the end of
subparagraph (B), by striking the period at the end of
subparagraph (C) and inserting ``, and'', and by adding at the
end the following new subparagraph:
``(D) any disallowance of a deduction described in
subsection (b)(10).''.
(3) No reasonable cause exception.--Section 6664(c)(2) is
amended by inserting ``or to any disallowance of a deduction
described in section 6662(b)(10)'' before the period at the
end.
(4) Approval of assessment not required.--Section
6751(b)(2)(A) is amended by striking ``subsection (b)(9)'' and
inserting ``paragraph (9) or (10) of subsection (b)''.
(c) Application of Statute of Limitations on Assessment and
Collection.--
(1) Extension for certain adjustments made under prior
law.--In the case of any disallowance of a deduction by reason
of section 170(h)(7) of the Internal Revenue Code of 1986 (as
added by this section) or any penalty imposed under section
6662 of such Code with respect to such disallowance, section
6229(d)(2) of such Code (as in effect before its repeal) shall
be applied by substituting ``2 years'' for ``1 year''.
(2) Extension for listed transactions.--Any contribution
described in section 170(h)(7)(A) of the Internal Revenue Code
of 1986 (as added by this section) shall be treated for
purposes of sections 6501(c)(10) and 6235(c)(6) of such Code as
a transaction specifically identified by the Secretary on
December 23, 2016, as a tax avoidance transaction for purposes
of section 6011 of such Code.
(d) Application to Certain Transactions Disallowed Under Other
Provisions of Law.--In the case of any disallowance of a deduction
under section 170 of the Internal Revenue Code of 1986 with respect to
a transaction described in Internal Revenue Service Notice 2017-10 with
respect to a taxable year ending before the date of the enactment of
this Act, such disallowance shall be treated for purposes of section
6662(b)(10) of such Code (as added by this section) and subsection
(c)(1) as being by reason of section 170(h)(7) of such Code (as added
by this section).
(e) Effective Date.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the amendments made by this section shall apply to
contributions made after December 23, 2016, in taxable years
ending after such date.
(2) Notice of certain failures.--So much of the amendment
made by subsection (a) as relates to section 170(h)(8) of the
Internal Revenue Code of 1986, as added by such subsection,
shall apply to--
(A) returns filed after the date of the enactment
of this Act, and
(B) returns filed on or before such date if the
period specified in section 6501 for assessment of the
taxes with respect to which such return relates has not
expired as of such date.
(3) Certified historic structures.--In the case of
contributions the conservation purpose (as defined in section
170(h)(4) of the Internal Revenue Code of 1986) of which is the
preservation of a certified historic structure (as defined in
section 170(h)(4)(C) of such Code), the amendments made by this
section shall apply to contributions made in taxable years
beginning after December 31, 2018.
(4) No inference.--No inference is intended as to the
appropriate treatment of contributions made in taxable years
ending on or before the date specified in paragraph (1) or (3),
whichever is applicable, or as to any activity not described in
section 170(h)(7) of the Internal Revenue Code of 1986, as
added by this section.
SEC. 138404. MODIFICATION OF PROCEDURAL REQUIREMENTS RELATING TO
ASSESSMENT OF PENALTIES.
(a) Repeal of Approval Requirement.--Section 6751, as amended by
the preceding provision of this Act, is amended by striking subsection
(b).
(b) Quarterly Certifications of Compliance With Procedural
Requirements.--Section 6751, as amended by subsection (a) of this
section, is amended by inserting after subsection (a) the following new
subsection:
``(b) Quarterly Certifications of Compliance.--Each appropriate
supervisor of employees of the Internal Revenue Service shall certify
quarterly by letter to the Commissioner of Internal Revenue whether or
not the requirements of subsection (a) have been met with respect to
notices of penalty issued by such employees.''.
(c) Effective Dates.--
(1) Repeal of approval requirement.--The amendment made by
subsection (a) shall take effect as if included in section 3306
of the Internal Revenue Service Restructuring and Reform Act of
1998.
(2) Quarterly certifications of compliance with procedural
requirements.--The amendment made by subsection (b) shall apply
to notices of penalty issued after the date of the enactment of
this Act.
PART 5--OTHER PROVISIONS
SEC. 138501. MODIFICATIONS TO LIMITATION ON DEDUCTION OF EXCESSIVE
EMPLOYEE REMUNERATION.
(a) In General.--Section 162(m) is amended by adding at the end the
following new paragraph:
``(7) Special rules related to limitation on deduction of
excessive employee remuneration.--
``(A) Aggregation rule.--A rule similar to the rule
of paragraph (6)(C)(ii) shall apply for purposes of
paragraph (1).
``(B) Regulations.--The Secretary shall prescribe
such regulations or other guidance as may be necessary
or appropriate to carry out the purposes of paragraph
(1), including regulations or other guidance to prevent
the avoidance of such purposes, including through the
performance of services other than as an employee or by
providing compensation through a pass-through or other
entity.''.
(b) Acceleration of Application to 5 Highest Compensated
Employees.--Section 162(m)(3)(C) is amended by striking ``December 31,
2026'' and inserting ``December 31, 2021''.
(c) Applicable Employee Remuneration.--Section 162(m)(4)(A) is
amended--
(1) by inserting ``(including performance-based
compensation, commissions, post-termination compensation, and
beneficiary payments)'' after ``remuneration for services'',
and
(2) by inserting ``and whether or not such remuneration is
paid directly by the publicly held corporation'' after
``whether or not during the taxable year''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 138502. EXTENSION OF TAX TO FUND BLACK LUNG DISABILITY TRUST FUND.
(a) In General.--Section 4121(e)(2)(A) is amended by striking
``December 31, 2021'' and inserting ``December 31, 2025''.
(b) Effective Date.--The amendment made by this section shall apply
to sales after December 31, 2021.
SEC. 138503. PROHIBITED TRANSACTIONS RELATING TO HOLDING DISC OR FSC IN
INDIVIDUAL RETIREMENT ACCOUNT.
(a) In General.--Section 4975(c)(1) is amended by striking ``or''
at the end of subparagraph (E), by striking the period at the end of
subparagraph (F) and inserting ``; or'', and by adding at the end the
following new subparagraph:
``(G) in the case of a DISC or FSC that receives
any commission, or other payment, from an entity any
stock or interest in which is owned by the individual
for whose benefit an individual retirement account is
maintained, holding of an interest in such DISC or FSC
by the individual retirement account.''.
(b) Special Rules of Application.--Section 4975(c) is amended by
adding at the end the following new paragraph:
``(8) Special rules of application for DISC and FSC
holdings.--
``(A) Indirect holding of DISC or FSC.--For
purposes of paragraph (1)(G), if an individual
retirement account holds an interest in an entity that
owns (directly or indirectly) an interest in a DISC or
FSC, the account shall be treated as holding an
interest in such DISC or FSC.
``(B) Constructive ownership.--For purposes of
determining ownership of stock (or any other interest)
in an entity under paragraph (1)(G) and ownership of an
interest in a DISC or FSC under subparagraph (A), the
rules prescribed by section 318 for determining
ownership shall apply, except that such section shall
be applied by substituting `10 percent' for `50
percent' each place it appears.
``(C) DISC and FSC.--For purposes of his
subsection, the terms `DISC' and `FSC' shall have the
respective meanings given such terms by section
992(a)(1)) and section 922(a) (as in effect before its
repeal by the FSC Repeal and Extraterritorial Income
Exclusion Act of 2000).''.
(c) Application of Tax to Terminated Individual Retirement
Accounts.--Section 4975(c)(3) is amended by adding at the end the
following: ``The preceding sentence shall not apply in the case of a
prohibited transaction described in paragraph (1)(G).''.
(d) Effective Date.--The amendments made by this section shall
apply to stock and other interests acquired or held on or after
December 31, 2021.
SEC. 138504. INCREASE IN TAX ON CERTAIN TOBACCO PRODUCTS AND IMPOSITION
OF TAX ON NICOTINE.
(a) Increasing Tax on Cigarettes.--
(1) Small cigarettes.--Section 5701(b)(1) is amended by
striking ``$50.33'' and inserting ``$100.66''.
(2) Large cigarettes.--Section 5701(b)(2) is amended by
striking ``$105.69'' and inserting ``$211.39''.
(b) Tax Parity for Small Cigars.--Section 5701(a)(1) is amended by
striking ``$50.33'' and inserting ``$100.66''.
(c) Tax Parity for Large Cigars.--Section 5701(a)(2) is amended by
striking ``52.75 percent'' and all that follows through the period and
inserting ``$49.56 per pound and a proportionate tax at the like rate
on all fractional parts of a pound but not less than 10.06 cents per
cigar.''.
(d) Tax Parity for Smokeless Tobacco.--
(1) Section 5701(e) is amended--
(A) in paragraph (1), by striking ``$1.51'' and
inserting ``$26.84'',
(B) in paragraph (2), by striking ``50.33 cents''
and inserting ``$10.70'', and
(C) by adding at the end the following new
paragraph:
``(3) Smokeless tobacco sold in discrete single-use
units.--On discrete single-use units, $100 per thousand.''.
(2) Section 5702(m) is amended--
(A) in paragraph (1), by striking ``or chewing
tobacco'' and inserting ``, chewing tobacco, or
discrete single-use unit'',
(B) in paragraphs (2) and (3), by inserting ``and
that is not a discrete single-use unit'' before the
period at the end of each such paragraph, and
(C) by adding at the end the following new
paragraph:
``(4) Discrete single-use unit.--The term `discrete single-
use unit' means any product containing tobacco that--
``(A) is not intended to be smoked, and
``(B) is in the form of a lozenge, tablet, pill,
pouch, dissolvable strip, or other discrete single-use
or single-dose unit.''.
(e) Tax Parity for Pipe Tobacco.--Section 5701(f) is amended by
striking ``$2.8311 cents'' and inserting ``$49.56''.
(f) Tax Parity for Roll-Your-Own Tobacco.--Section 5701(g) is
amended by striking ``$24.78'' and inserting ``$49.56''.
(g) Tax Parity for Roll-Your-Own Tobacco and Certain Processed
Tobacco.--Section 5702(o) is amended by inserting ``, and includes
processed tobacco that is removed for delivery or delivered to a person
other than a person with a permit provided under section 5713, but does
not include removals of processed tobacco for exportation'' after
``wrappers thereof''.
(h) Imposition of Tax on Nicotine for Use in Vaping, etc.--
(1) In general.--Section 5701 is amended by redesignating
subsection (h) as subsection (i) and by inserting after
subsection (g) the following new subsection:
``(h) Nicotine.--On taxable nicotine, manufactured in or imported
into the United States, there shall be imposed a tax equal to the
dollar amount specified in section 5701(b)(1) per 1,810 milligrams of
nicotine (and a proportionate tax at the like rate on any fractional
part thereof).''.
(2) Taxable nicotine.--Section 5702 is amended by adding at
the end the following new subsection:
``(q) Taxable Nicotine.--
``(1) In general.--Except as otherwise provided in this
subsection, the term `taxable nicotine' means any nicotine
which has been extracted, concentrated, or synthesized.
``(2) Exception for products approved by food and drug
administration.--Such term shall not include any nicotine if
the manufacturer or importer thereof demonstrates to the
satisfaction of the Secretary of Health and Human Services that
such nicotine will be used in--
``(A) a drug--
``(i) that is approved under section 505 of
the Federal Food, Drug, and Cosmetic Act or
licensed under section 351 of the Public Health
Service Act; or
``(ii) for which an investigational use
exemption has been authorized under section
505(i) of the Federal Food, Drug, and Cosmetic
Act or under section 351(a) of the Public
Health Service Act; or
``(B) a combination product (as described in
section 503(g) of the Federal Food, Drug, and Cosmetic
Act), the constituent parts of which were approved or
cleared under section 505, 510(k), or 515 of such Act.
``(3) Coordination with taxation of other tobacco
products.--Tobacco products meeting the definition of cigars,
cigarettes, smokeless tobacco, pipe tobacco, and roll-your-own
tobacco in this section shall be classified and taxed as such
despite any concentration of the nicotine inherent in those
products or any addition of nicotine to those products during
the manufacturing process.
``(4) Regulations.--The Secretary shall prescribe such
regulations or other guidance as is necessary or appropriate to
carry out the purposes of this subsection, including
regulations or other guidance for coordinating the taxation of
tobacco products and taxable nicotine to protect revenue and
prevent double taxation.''.
(3) Taxable nicotine treated as a tobacco product.--Section
5702(c) is amended by striking ``and roll-your-own tobacco''
and inserting ``roll-your-own tobacco, and taxable nicotine''.
(4) Manufacturer of taxable nicotine.--Section 5702, as
amended by paragraph (2), is amended by adding at the end the
following new subsection:
``(r) Manufacturer of Taxable Nicotine.--
``(1) In general.--Any person who extracts, concentrates,
or synthesizes nicotine shall be treated as a manufacturer of
taxable nicotine (and as manufacturing such taxable nicotine).
``(2) Application of rules related to manufacturers of
tobacco products.--Any reference to a manufacturer of tobacco
products, or to manufacturing tobacco products, shall be
treated as including a reference to a manufacturer of taxable
nicotine, or to manufacturing taxable nicotine,
respectively.''.
(j) Repeal of Special Rules for Determining Price of Cigars.--
Section 5702 is amended by striking subsection (l).
(k) Floor Stocks Taxes.--
(1) Imposition of tax.--On covered tobacco products, and
cigarette papers and tubes, manufactured in or imported into
the United States which are removed before the tax increase
date and held on such date for sale by any person, there is
hereby imposed a tax in an amount equal to the excess of--
(A) the tax which would be imposed under section
5701 of the Internal Revenue Code of 1986 on the
article if the article had been removed on such date,
over
(B) the prior tax (if any) imposed under section
5701 of such Code on such article.
(2) Covered tobacco products.--For purposes of this
subsection, the term ``covered tobacco products'' means any
tobacco product other than--
(A) cigars described in section 5701(a)(2) of the
Internal Revenue Code of 1986,
(B) discrete single-use units (as defined in
section 5702(m)(4) of such Code, as amended by this
section), and
(C) taxable nicotine (as defined in section 5702(q)
of such Code, as amended by this section).
(3) Credit against tax.--Each person shall be allowed as a
credit against the taxes imposed by paragraph (1) an amount
equal to the lesser of $1,000 or the amount of such taxes. For
purposes of the preceding sentence, all persons treated as a
single employer under subsection (b), (c), (m), or (o) of
section 414 of the Internal Revenue Code of 1986 shall be
treated as 1 person for purposes of this paragraph.
(4) Liability for tax and method of payment.--
(A) Liability for tax.--The person referred to in
paragraph (1) shall be liable for the tax imposed by
such paragraph.
(B) Method of payment.--The tax imposed by
paragraph (1) shall be paid in such manner as the
Secretary may provide.
(5) Articles in foreign trade zones.--
(A) In general.--Notwithstanding the Act of June
18, 1934 (commonly known as the Foreign Trade Zone Act,
48 Stat. 998, 19 U.S.C. 81a et seq.) or any other
provision of law, any covered tobacco products, or
cigarette papers and tubes, which are located in a
foreign trade zone on the tax increase date, shall be
subject to the tax imposed by paragraph (1) if--
(i) internal revenue taxes have been
determined, or customs duties liquidated, with
respect to such article before such date
pursuant to a request made under the 1st
proviso of section 3(a) of such Act, or
(ii) such article is held on such date
under the supervision of an officer of the
United States Customs and Border Protection of
the Department of Homeland Security pursuant to
the 2d proviso of such section 3(a).
(6) Tax increase date.--For purposes of this subsection,
the term ``tax increase date'' means the first day of the first
calendar quarter described in subsection (k)(1).
(7) Certain other definitions.--Terms used in this
subsection which are also used in section 5702 of the Internal
Revenue Code of 1986 shall have the same meaning as when used
in such section.
(l) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
articles removed in calendar quarters beginning after the date
of the enactment of this Act.
(2) Delayed effective date for certain products.--The
amendments made by subsections (c), (d)(1)(C), (d)(2), and (h)
shall apply to articles removed in calendar quarters beginning
after the date which is 180 days after the date of the
enactment of this Act.
(m) Transition Rule for Permit and Bond Requirements.--A person
which is lawfully engaged in business as a manufacturer or importer of
taxable nicotine (within the meaning of subchapter A of chapter 52 of
the Internal Revenue Code of 1986, as amended by this section) on the
date of the enactment of this Act, first becomes subject to the
requirements of subchapter B of chapter 52 of such Code by reason of
the amendments made by this section, and submits an application under
such subchapter B to engage in such business not later than 90 days
after the date of the enactment of this Act, shall not be denied the
right to carry on such business by reason of such requirements before
final action on such application.
SEC. 138505. CLARIFICATION OF RULES REGARDING TOBACCO DRAWBACK.
(a) In General.--Section 5706 is amended by adding at the end the
following: ``Exemption from tax under section 5704 is drawback, and no
further drawback shall be allowed based on merchandise that has not
been subject to tax.''.
(b) Effective Date.--The amendment made by this section shall apply
to drawback claims made on or after December 18, 2018.
(c) No Inference.--Nothing contained in this subsection or the
amendments made by this subsection shall be construed to create any
inference with respect to any drawback claim made before December 18,
2018.
SEC. 138506. TERMINATION OF EMPLOYER CREDIT FOR PAID FAMILY AND MEDICAL
LEAVE.
Section 45S(i) is amended by striking ``December 31, 2025'' and
inserting ``December 31, 2023''.
SEC. 138507. CLARIFICATION OF TREATMENT OF DISC GAINS AND DISTRIBUTIONS
OF CERTAIN FOREIGN SHAREHOLDERS.
(a) In General.--Section 996(g) of the Internal Revenue Code of
1986 is amended by striking ``of such shareholder'' and inserting
``deemed to be had by such shareholder''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to gains and distributions after December 31, 2021.
(c) Application to Foreign Sales Corporations.--In the case of any
distribution after December 31, 2021, section 926(b)(1) of the Internal
Revenue Code of 1986 (prior to its repeal by the FSC Repeal and
Extraterritorial Income Exclusion Act of 2000) shall be applied by
substituting ``deemed to be had by such shareholder'' for ``of such
shareholder''.
SEC. 138508. ACCESS TO SELF-EMPLOYMENT INCOME INFORMATION FOR PAID
LEAVE ADMINISTRATION.
Section 6103(l) of the Internal Revenue Code of 1986 is amended by
adding at the end the following new paragraph:
``(23) Disclosure of certain return information to carry
out paid family and medical leave benefit program.--
``(A) In general.--The Secretary shall, upon
written request, disclose to officers and employees of
the Department of the Treasury return information with
respect to a taxpayer whose self-employment income is
relevant in determining eligibility for, or the correct
amount of, a paid family and medical leave benefit
under title XXII of the Social Security Act. Such
information shall be limited to--
``(i) the taxpayer identity information
with respect to the taxpayer,
``(ii) the self-employment income of the
taxpayer, and
``(iii) the taxable year to which such
self-employment income relates.
``(B) Restriction on disclosure.--Return
information disclosed under subparagraph (A) may be
used by officers and employees of the Department of the
Treasury solely for the purpose of administering the
paid family and medical leave benefit program under
title XXII of the Social Security Act.
``(C) Self-employment income.--For purposes of this
paragraph, the term `self-employment income' has the
meaning given such term in section 1402(b) for purposes
of the taxes imposed by section 1401(b).''.
SEC. 138509. TEMPORARY RULE TO ALLOW CERTAIN S CORPORATIONS TO
REORGANIZE AS PARTNERSHIPS WITHOUT TAX.
(a) In General.--A qualified liquidation of an eligible S
corporation shall be treated for purposes of the Internal Revenue Code
of 1986 in the same manner as if--
(1) such liquidation were a complete liquidation described
in section 332(b) of such Code, and
(2) the domestic partnership referred to in subsection
(c)(2) were a corporation which is an 80-percent distributee
(within the meaning of section 337(c) of such Code).
(b) Eligible S Corporation.--For purposes of this section, the term
``eligible S corporation'' means any corporation (including any
predecessor corporation) that was an S corporation on May 13, 1996, and
at all times thereafter through the date on which the qualified
liquidation is completed.
(c) Qualified Liquidation.--For purposes of this section, the term
``qualified liquidation'' means one or more transactions occurring
during the 2-year period beginning on December 31, 2021 if--
(1) such transactions constitute the complete liquidation
of an eligible S corporation, and
(2) substantially all of the assets and liabilities of such
eligible S corporation are, as a result of such transactions,
transferred to a domestic partnership.
(d) Election.--This section shall apply to any qualified
liquidation only if the eligible S corporation elects the application
of this section in such manner as the Secretary may require and not
later than the due date for filing the return of tax under chapter 1 of
such Code for the taxable year in which such liquidation is completed.
(e) Application of Restriction on Subsection S Corporation
Elections.--In the case of any qualified liquidation to which this
section applies, the domestic partnership referred to in subsection
(c)(2) shall not fail to be treated as a successor corporation of the
eligible S corporation for purposes of section 1362(g) of such Code.
(f) Other Definitions.--Terms used in this section which are also
used in the Internal Revenue Code of 1986 shall have the same meaning
as when used in such Code.
(g) Regulations.--The Secretary shall prescribe such regulations or
other guidance as may be necessary or appropriate to carry out this
section.
SEC. 138510. TREATMENT OF CERTAIN QUALIFIED SOUND RECORDING
PRODUCTIONS.
(a) Election To Treat Costs as Expenses.--Section 181(a)(1) is
amended by striking ``qualified film or television production, and any
qualified live theatrical production,'' and inserting ``qualified film
or television production, any qualified live theatrical production, and
any qualified sound recording production''.
(b) Dollar Limitation.--Section 181(a)(2) is amended by adding at
the end the following new subparagraph:
``(C) Qualified sound recording production.--
Paragraph (1) shall not apply to so much of the
aggregate cost of any qualified sound recording
production, or to so much of the aggregate, cumulative
cost of all such qualified sound recording productions
in the taxable year, as exceeds $150,000.''.
(c) No Other Deduction or Amortization Deduction Allowable.--
Section 181(b) is amended by striking ``qualified film or television
production or any qualified live theatrical production'' and inserting
``qualified film or television production, any qualified live
theatrical production, or any qualified sound recording production''.
(d) Election.--Section 181(c)(1) is amended by striking ``qualified
film or television production or any qualified live theatrical
production'' and inserting ``qualified film or television production,
any qualified live theatrical production, or any qualified sound
recording production''.
(e) Qualified Sound Recording Production Defined.--Section 181 is
amended by redesignating subsections (f) and (g) as subsections (g) and
(h), respectively, and by inserting after subsection (e) the following
new subsection:
``(f) Qualified Sound Recording Production.--For purposes of this
section, the term `qualified sound recording production' means a sound
recording (as defined in section 101 of title 17, United States Code)
produced and recorded in the United States.''.
(f) Termination.--Section 181(h) (as redesignated by subsection
(e)) is amended by striking ``qualified film or television production
or any qualified live theatrical production'' and inserting ``qualified
film or television production, any qualified live theatrical
production, or any qualified sound recording production''.
(g) Bonus Depreciation.--
(1) Qualified sound recording production as qualified
property.--Section 168(k)(2)(A)(i) is amended--
(A) by striking ``or'' at the end of subclause
(IV), by adding ``or'' at the end of subclause (V), and
by inserting after subclause (V) the following:
``(VI) which is a qualified sound
recording production (as defined in
subsection (f) of section 181) for
which a deduction would have been
allowable under section 181 without
regard to subsections (a)(2) and (h) of
such section or this subsection,'', and
(B) in subclauses (IV) and (V) (as amended) by
striking ``without regard to subsections (a)(2) and
(g)'' both places it appears and inserting ``without
regard to subsections (a)(2) and (h)''.
(2) Production placed in service.--Section 168(k)(2)(H) is
amended by striking ``and'' at the end of clause (i), by
striking the period at the end of clause (ii) and inserting ``,
and'', and by adding after clause (ii) the following:
``(iii) a qualified sound recording
production shall be considered to be placed in
service at the time of initial release or
broadcast.''.
(h) Conforming Amendments.--
(1) The heading for section 181 is amended to read as
follows: ``treatment of certain qualified productions.''.
(2) The table of sections for part VI of subchapter B of
chapter 1 is amended by striking the item relating to section
181 and inserting the following new item:
``Sec. 181. Treatment of certain qualified productions.''.
(i) Effective Date.--The amendments made by this section shall
apply to productions commencing in taxable years ending after the date
of the enactment of this Act.
SEC. 138511. PAYMENT TO CERTAIN INDIVIDUALS WHO DYE FUEL.
(a) In General.--Subchapter B of chapter 65 is amended by adding at
the end the following new subsection:
``SEC. 6433. DYED FUEL.
``(a) In General.--If a person establishes to the satisfaction of
the Secretary that such person meets the requirements of subsection (b)
with respect to diesel fuel or kerosene, then the Secretary shall pay
to such person an amount (without interest) equal to the tax described
in subsection (b)(2)(A) with respect to such diesel fuel or kerosene.
``(b) Requirements.--
``(1) In general.--A person meets the requirements of this
subsection with respect to diesel fuel or kerosene if such
person removes from a terminal eligible indelibly dyed diesel
fuel or kerosene.
``(2) Eligible indelibly dyed diesel fuel or kerosene
defined.--The term `eligible indelibly dyed diesel fuel or
kerosene' means diesel fuel or kerosene--
``(A) with respect to which a tax under section
4081 was previously paid (and not credited or
refunded), and
``(B) which is exempt from taxation under section
4082(a).
``(c) Cross Reference.--For civil penalty for excessive claims
under this section, see section 6675.''.
(b) Conforming Amendments.--
(1) Section 6206 is amended--
(A) by striking ``or 6427'' each place it appears
and inserting ``6427, or 6433'', and
(B) by striking ``6420 and 6421'' and inserting
``6420, 6421, and 6433''.
(2) Section 6430 is amended--
(A) by striking ``or'' at the end of paragraph (2),
by striking the period at the end of paragraph (3) and
inserting ``or'', and by adding at the end the
following new paragraph:
``(4) which are removed as eligible indelibly dyed diesel
fuel or kerosene under section 6433.''.
(3) Section 6675 is amended--
(A) in subsection (a), by striking ``or 6427
(relating to fuels not used for taxable purposes)'' and
inserting ``6427 (relating to fuels not used for
taxable purposes), or 6433 (relating to eligible
indelibly dyed fuel)'', and
(B) in subsection (b)(1), by striking ``6421, or
6427,'' and inserting ``6421, 6427, or 6433''.
(4) The table of sections for subchapter B of chapter 65 is
amended by adding at the end the following new item:
``Sec. 6433. Dyed fuel.''.
(c) Effective Date.--The amendments made by this section shall
apply to eligible indelibly dyed diesel fuel or kerosene removed on or
after the date that is 180 days after the date of the enactment of this
section.
SEC. 138512. EXTENSION OF CREDIT FOR PORTION OF EMPLOYER SOCIAL
SECURITY TAXES PAID WITH RESPECT TO EMPLOYEE TIPS TO
BEAUTY SERVICE ESTABLISHMENTS.
(a) Extension of Tip Credit to Beauty Service Business.--
(1) In general.--Section 45B(b)(2) is amended to read as
follows:
``(2) Application only to certain lines of business.--In
applying paragraph (1), there shall be taken into account only
tips received from customers or clients in connection with the
following services:
``(A) The providing, delivering, or serving of food
or beverages for consumption, if the tipping of
employees delivering or serving food or beverages by
customers is customary.
``(B) The providing of beauty services to a
customer or client if the tipping of employees
providing such services is customary.''.
(2) Beauty service defined.--Section 45B is amended by
adding at the end the following new subsection:
``(e) Beauty Service.--For purposes of this section, the term
`beauty service' means any of the following:
``(1) Barbering and hair care.
``(2) Nail care.
``(3) Esthetics.
``(4) Body and spa treatments.''.
(b) Credit Determined With Respect to Minimum Wage in Effect.--
Section 45B(b)(1)(B) is amended--
(1) by striking ``as in effect on January 1, 2007, and'',
and
(2) by inserting ``, and in the case of food or beverage
establishments, as in effect on January 1, 2007'' after
``without regard to section 3(m) of such Act''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 138513. ENHANCEMENT OF WORK OPPORTUNITY CREDIT DURING COVID-19
RECOVERY PERIOD.
(a) In General.--Section 51 is amended by adding at the end the
following new subsection:
``(l) Adjustment to Credit During COVID-19 Recovery Period.--In the
case of individuals (other than any individual who is a qualified
summer youth employee) hired after the date of the enactment of this
subsection and before January 1, 2023--
``(1) Increased amount of credit.--Subsection (a) shall be
applied by substituting `50 percent' for `40 percent'.
``(2) Availability of credit in second year of
employment.--
``(A) In general.--Subsection (a) shall be applied
by inserting `or qualified second-year wages' after
`wages'.
``(B) Qualified second-year wages.--For the
purposes of this paragraph, the term `qualified second-
year wages' means qualified wages which are
attributable to service rendered during the 1-year
period beginning on the day after the last day of the
1-year period with respect to the recipient determined
under subsection (b)(2).
``(3) Increase in limitation on wages taken into account.--
Subsection (b)(3) shall be applied by substituting `$10,000'
for `$6,000'.
``(4) Eligibility of rehires.--
``(A) In general.--Subsection (i)(2) shall not
apply.
``(B) Regulations.--The Secretary shall issue such
regulations as the Secretary determines appropriate to
ensure a reasonable application of subparagraph (A),
including prohibiting attempts to claim the benefit of
this section through the termination and rehiring of an
employee.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years ending after the date of enactment of this Act.
SEC. 138514. ALLOWANCE OF DEDUCTION FOR CERTAIN EXPENSES OF THE TRADE
OR BUSINESS OF BEING AN EMPLOYEE.
(a) Above-the-Line Deduction for Union Dues.--Section 62(a)(2) is
amended by adding at the end the following new subparagraph:
``(F) Union dues.--The deductions allowed by section 162
which are both--
``(A) not in excess of $250, and
``(B) attributable to a trade or business
consisting of the performance of services by the
taxpayer as an employee if such deductions are for dues
paid to a labor organization described in section
501(c)(5) and with respect to which such taxpayer
remained a member through the end of the taxable
year.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 138515. COVER OVER OF CERTAIN DISTILLED SPIRITS TAXES.
(a) Repeal of Limitation on Cover Over of Distilled Spirits Taxes
to Puerto Rico and Virgin Islands.--
(1) In general.--Section 7652 is amended by striking
subsection (f) and by redesignating subsections (g) and (h) as
subsections (f) and (g), respectively.
(2) Effective date.--The amendments made by this subsection
shall apply to distilled spirits brought into the United States
after December 31, 2021.
(b) Required Transfer to Puerto Rico Conservation Trust Fund of
Portion of Puerto Rico Rum Cover Over.--
(1) In general.--Section 7652(a) is amended by adding at
the end the following new paragraph:
``(4) Required transfer to puerto rico conservation trust
fund of portion of rum taxes covered over.--
``(A) In general.--From any taxes collected on rum
transported to the United States that are covered into
the treasury of Puerto Rico under paragraph (3) at a
rate equal to or greater than $10.50 per proof gallon,
Puerto Rico shall transfer to the Puerto Rico
Conservation Trust Fund an amount per proof gallon
equal to or greater than \1/6\ of the difference
between $10.50 and the rate, not to exceed $13.25, at
which such taxes are covered into such treasury. Puerto
Rico's obligations under this paragraph shall not
modify or impair payment priorities established under
Puerto Rico law and in effect on May 21, 2021.
``(B) Puerto rico conservation trust fund.--For
purposes of this section, the term `Puerto Rico
Conservation Trust Fund' means the fund established
pursuant to a Memorandum of Understanding between the
United States Department of the Interior and the
Commonwealth of Puerto Rico, dated December 24,
1968.''.
(2) Cover over determined without regard to certain rate
reductions.--Section 7652(h), as amended by subsections (a) and
(c), is amended by inserting ``(a)(4),'' after ``(a)(3),''.
(3) Effective date.--The amendments made by this subsection
shall apply to distilled spirits brought into the United States
after December 31, 2021.
(c) Cover Over Determined Without Regard to Certain Rate
Reductions.--
(1) In general.--Section 7652, as amended by subsection
(a), is amended by inserting after subsection (g) the following
new subsection:
``(h) Cover Over Determined Without Regard to Certain Rate
Reductions.--For purposes of subsections (a)(3), (b)(3), and (e)(1),
refunds under section 5001(c)(4) shall not be taken into account as a
refund, and the amount of taxes imposed and collected under section
5001(a)(1) shall be determined without regard to section 5001(c).''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect as if included in section 13807 of Public Law
116-260.
(3) Conforming amendments.--
(A) 7652(e).--
(i) In general.--Section 7652(e) is amended
by striking paragraph (5).
(ii) Effective date.--The amendment made by
this subparagraph shall take effect as if
included in section 13807 of Public Law 115-97.
(B) 7652(i).--
(i) In general.--Section 7652 is amended by
striking subsection (i).
(ii) Effective date.--The amendment made by
this subparagraph shall take effect as if
included in section 107 of Public Law 116-260.
SEC. 138516. RESEARCH AND EXPERIMENTAL EXPENDITURES.
(a) In General.--Section 13206 of Public Law 115-97 is amended--
(1) in subsection (b)(3), by striking ``2021'' and
inserting ``2025'', and
(2) in subsection (e), by striking ``2021'' and inserting
``2025''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.
SEC. 138517. PAYROLL CREDIT FOR COMPENSATION OF LOCAL NEWS JOURNALISTS.
(a) In General.--In the case of an eligible local newspaper
publisher, there shall be allowed as a credit against applicable
employment taxes for each calendar quarter an amount equal to the
applicable percentage of wages paid by such publisher to local news
journalists for such calendar quarter.
(b) Limitations and Refundability.--
(1) Wages taken into account.--The amount of wages paid
with respect to any individual which may be taken into account
under subsection (a) during any calendar quarter by the
eligible local newspaper publisher shall not exceed $12,500.
(2) Credit limited to employment taxes.--The credit allowed
by subsection (a) with respect to any calendar quarter shall
not exceed the applicable employment taxes (reduced by any
credits allowed under sections 3131, 3132, 3134, and 6432 of
the Internal Revenue Code of 1986) on the wages paid with
respect to the employment of all the employees of the eligible
local newspaper publisher for such calendar quarter.
(3) Refundability of excess credit.--
(A) In general.--If the amount of the credit under
subsection (a) exceeds the limitation of paragraph (2)
for any calendar quarter, such excess shall be treated
as an overpayment that shall be refunded under sections
6402(a) and 6413(b) of the Internal Revenue Code of
1986.
(B) Treatment of payments.--For purposes of section
1324 of title 31, United States Code, any amounts due
to the employer under this paragraph shall be treated
in the same manner as a refund due from a credit
provision referred to in subsection (b)(2) of such
section.
(c) Definitions.--For purposes of this section--
(1) Applicable percentage.--The term ``applicable
percentage'' means--
(A) in the case of each of the first 4 calendar
quarters to which this section applies, 50 percent, and
(B) in the case of each calendar quarter
thereafter, 30 percent.
(2) Applicable employment taxes.--The term ``applicable
employment taxes'' means the taxes imposed under section
3111(b) of the Internal Revenue Code of 1986.
(3) Eligible local newspaper publisher.--The term
``eligible local newspaper publisher'' means, with respect to
any calendar quarter, any employer if substantially all of the
gross receipts of such employer for such calendar quarter are
derived in the trade or business of publishing a local
newspaper.
(4) Local newspaper.--The term ``local newspaper'' means
any print or digital publication if--
(A) the primary content of such publication is
original content derived from primary sources and
relating to news and current events,
(B) such publication primarily serves the needs of
a regional or local community,
(C) the publisher of such publication employs at
least one local news journalist who resides in such
regional or local community, and
(D) the publisher of such publication employs no
more than 750 employees during the calendar quarter
with respect to which a credit is allowed under this
section.
(5) Local news journalist.--The term ``local news
journalist'' means, with respect to any eligible local
newspaper publisher for any calendar quarter, an individual who
provides at least 100 hours of service during such calendar
quarter to such eligible local newspaper publisher, during
which time such individual regularly gathers, collects,
photographs, records, writes, or reports news or information
that concerns local events or other matters of local public
interest.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury or the Secretary's delegate.
(7) Wages.--The term ``wages'' means wages (as defined in
section 3121(a) of the Internal Revenue Code of 1986).
(8) Other terms.--Any term used in this section which is
also used in chapter 21 or chapter 22 of the Internal Revenue
Code of 1986 shall have the same meaning as when used in such
chapter.
(d) Aggregation Rule.--
(1) In general.--All persons treated as a single employer
under subsection (a) or (b) of section 52 of the Internal
Revenue Code of 1986, or subsection (m) or (o) of section 414
of such Code, shall be treated as one employer for purposes of
this section.
(2) Exception.--Paragraph (1) shall not apply unless such
persons are involved in the production of the same print or
digital publication.
(e) Certain Rules To Apply.--For purposes of this section, rules
similar to the rules of sections 51(i)(1) and 280C(a) of the Internal
Revenue Code of 1986 shall apply.
(f) Certain Governmental Employers.--This credit shall not apply to
the Government of the United States, the government of any State or
political subdivision thereof, or any agency or instrumentality of any
of the foregoing.
(g) Election To Have Section Not Apply.--This section shall not
apply with respect to any eligible local newspaper publisher for any
calendar quarter if such person elects (at such time and in such manner
as the Secretary may prescribe) not to have this section apply.
(h) Special Rules.--
(1) Employee not taken into account more than once.--An
employee shall not be included for purposes of this section for
any period with respect to any employer if such employer is
allowed a credit under section 51 of the Internal Revenue Code
of 1986 with respect to such employee for such period.
(2) Denial of double benefit.--Any wages taken into account
in determining the credit allowed under this section shall not
be taken into account for purposes of determining the credits
allowed under section 41, 45A, 45P, 45S, 51, 1396, 3131, 3132,
3134, and 6432 of such Code.
(3) Third-party payors.--Any credit allowed under this
section shall be treated as a credit described in section
3511(d)(2) of such Code.
(i) Treatment of Deposits.--The Secretary shall waive any penalty
under section 6656 of the Internal Revenue Code of 1986 for any failure
to make a deposit of any applicable employment taxes if the Secretary
determines that such failure was due to the reasonable anticipation of
the credit allowed under this section.
(j) Regulations and Guidance.--The Secretary shall issue such
forms, instructions, regulations, and guidance as are necessary to
implement the purposes of this section, including with respect to the
application of the credit under subsection (a) to third-party payors
(including professional employer organizations, certified professional
employer organizations, or agents under section 3504 of the Internal
Revenue Code of 1986), including regulations or guidance allowing such
payors to submit documentation necessary to substantiate the eligible
employer status of employers that use such payors.
(k) Application.--This section shall only apply to calendar
quarters during the first 5 calendar years beginning after the date of
the enactment of this Act.
SEC. 138518. TREATMENT OF FINANCIAL GUARANTY INSURANCE COMPANIES AS
QUALIFYING INSURANCE CORPORATIONS UNDER PASSIVE FOREIGN
INVESTMENT COMPANY RULES.
(a) In General.--Section 1297(f)(3) is amended by adding at the end
the following new subparagraph:
``(C) Special rules for financial guaranty
insurance companies.--
``(i) In general.--Notwithstanding
subparagraphs (A)(ii) and (B), the applicable
insurance liabilities of a financial guaranty
insurance company shall include its unearned
premium reserves if--
``(I) such company is prohibited
under generally accepted accounting
principles from reporting on its
applicable financial statements
reserves for losses and loss adjustment
expenses with respect to a financial
guaranty insurance or reinsurance
contract except to the extent that
losses and loss adjustment expenses are
expected to exceed the unearned premium
reserves on the contract,
``(II) the applicable financial
statement of such company reports
financial guaranty exposure of at least
15-to-1 or State or local bond exposure
of at least 9-to-1 (8-to-1 in the case
of a taxable year of such company which
ends on or before December 31, 2018),
and
``(III) such company includes in
its insurance liabilities only its
unearned premium reserves relating to
insurance written or assumed that is
within the single risk limits set forth
in subsection (D) of section 4 of the
Financial Guaranty Insurance Guideline
(modified by using total shareholder's
equity as reported on the applicable
financial statement of the company
rather than aggregate of the surplus to
policyholders and contingency
reserves).
``(ii) Application of alternative facts and
circumstances test.--A financial guaranty
insurance company shall be treated as
satisfying the requirements of paragraph
(2)(B).
``(iii) Financial guaranty insurance
company.--For purposes of this subparagraph,
the term `financial guaranty insurance company'
means any insurance company the sole business
of which is writing or reinsuring financial
guaranty insurance (as defined in subsection
(A) of section 1 of the Financial Guaranty
Insurance Guideline) which is permitted under
subsection (B) of section 4 of such Guideline.
``(iv) Financial guaranty exposure.--For
purposes of this subparagraph, the term
`financial guaranty exposure' means the ratio
of--
``(I) the net debt service
outstanding insured or reinsured by the
company that is within the single risk
limits set forth in the Financial
Guaranty Insurance Guideline (as
reported on such company's applicable
financial statement), to
``(II) the company's total assets
(as so reported).
``(v) State or local bond exposure.--For
purposes of this subparagraph, the term `State
or local bond exposure' means the ratio of--
``(I) the net unpaid principal of
State or local bonds (as defined in
section 103(c)(1)) insured or reinsured
by the company that is within the
single risk limits set forth in the
Financial Guaranty Insurance Guideline
(as reported on such company's
applicable financial statement), to
``(II) the company's total assets
(as so reported).''
``(vi) Financial guaranty insurance
guideline.--For purposes of this subparagraph--
``(I) In general.--The term
`Financial Guaranty Insurance
Guideline' means the October 2008 model
regulation that was adopted by the
National Association of Insurance
Commissioners on December 4, 2007.
``(II) Determinations made by
secretary.--The determination of
whether any provision of the Financial
Guaranty Insurance Guideline has been
satisfied shall be made by the
Secretary.''.
(b) Reporting of Certain Items.--Section 1297(f)(4) is amended by
adding at the end the following new subparagraph:
``(C) Clarification that certain items on
applicable financial statement be separately reported
with respect to corporation.--An amount described in
paragraph (1)(B) or clause (i)(II), (i)(III), (iv)(I),
(iv)(II), (v)(I), or (v)(II) of paragraph (3)(C) shall
be treated as reported on an applicable financial
statement for purposes of this section if--
``(i) such amount is separately reported on
such statement with respect to the corporation
referred to in paragraph (1), or
``(ii) such amount is separately determined
for purposes of calculating an amount which is
reported on such statement.
``(D) Authority of secretary to require
reporting.--
``(i) In general.--Each United States
person who owns an interest in a specified non-
publicly traded foreign corporation and who
takes the position that such corporation is not
a passive foreign investment company shall
report to the Secretary such information with
respect to such corporation as the Secretary
may require.
``(ii) Specified non-publicly traded
foreign corporation.--For purposes of this
subparagraph, the term `specified non-publicly
traded foreign corporation' means any foreign
corporation--
``(I) which would be a passive
foreign investment company if
subsection (b)(2)(B) did not apply, and
``(II) no interest in which is
traded on an established securities
market.''.
(c) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall take
effect as if included in section 14501 of Public Law 115-97.
(2) Reporting.--The amendment made by subsection (b) shall
apply to reports made after the date of the enactment of this
Act.
SEC. 138519. CREDIT FOR QUALIFIED ACCESS TECHNOLOGY FOR THE BLIND.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
is amended by inserting after section 36G the following new section:
``SEC. 36H. CREDIT FOR QUALIFIED ACCESS TECHNOLOGY FOR THE BLIND.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this subtitle an amount equal to amounts
paid or incurred during the taxable year, not compensated for by
insurance or otherwise, by the taxpayer for qualified access technology
for use by a qualified blind individual who is the taxpayer, the
taxpayer's spouse, or any dependent (as defined in section 152) of the
taxpayer.
``(b) Limitation.--The aggregate amount of the credit allowed under
subsection (a) with respect to any qualified blind individual shall not
exceed $2,000 in any 3-consecutive-taxable-year period.
``(c) Definitions.--For purposes of this section--
``(1) Qualified blind individual.--The term `qualified
blind individual' means an individual who is blind within the
meaning of section 63(f)(4).
``(2) Qualified access technology defined.--The term
`qualified access technology' means hardware, software, or
other information technology the primary function of which is
to convert or adapt information which is visually represented
into forms or formats useable by blind individuals.
``(d) Denial of Double Benefit.--No credit shall be allowed under
subsection (a) for any expense for which a deduction or credit is
allowed under any other provision of this chapter.
``(e) Inflation Adjustment.--
``(1) In general.--In the case of a taxable year beginning
after 2022, the $2,000 amount in subsection (b) shall be
increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2021' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
``(2) Rounding.--If the amount as adjusted under
subparagraph (A) is not a multiple of $100, such amount shall
be rounded to the next lowest multiple of $100.
``(f) Termination.--This section shall not apply with respect to
amounts paid or incurred in taxable years beginning after December 31,
2026.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A), as amended by the preceding
provisions of this Act, is amended by inserting ``, 36H'' after
``36G''.
(2) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``, 36H'' after ``, 36G''.
(3) The table of sections for subpart C of part IV of
subchapter A is amended by inserting after the item relating to
section 36G the following new item:
``Sec. 36H. Credit for qualified access technology for the blind.''
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 138520. MODIFICATION OF REIT CONSTRUCTIVE OWNERSHIP RULES.
(a) In General.--Section 856(d)(5) is amended by striking ``and''
at the end of subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, and'', and by adding at the end the
following:
``(C) except as otherwise provided by the
Secretary, stock, assets, and net profits
constructively owned by a partnership, estate, trust,
or corporation by reason of the application of section
318(a)(3) (after application of subparagraphs (A) and
(B)) shall not be considered as owned by it for
purposes of again applying such section in order to
make another person the constructive owner of such
stock, assets, or net profits.
Subparagraph (C) shall not prevent any person from being the
constructive owner of stock, assets, or net profits of any
person as the result of any other application of section 318(a)
(as modified by this paragraph).''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
(c) No Inference.--Nothing in this section or the amendments made
by this section shall be construed to create any inference with respect
to the proper application of section 318 of the Internal Revenue Code
of 1986 to cases other than cases to which such amendments apply.
Subtitle J--Drug Pricing
PART 1--LOWERING PRICES THROUGH FAIR DRUG PRICE NEGOTIATION
SEC. 139001. PROVIDING FOR LOWER PRICES FOR CERTAIN HIGH-PRICED SINGLE
SOURCE DRUGS.
(a) Program To Lower Prices for Certain High-Priced Single Source
Drugs.--Title XI of the Social Security Act (42 U.S.C. 1301 et seq.) is
amended by adding at the end the following new part:
``PART E--FAIR PRICE NEGOTIATION PROGRAM TO LOWER PRICES FOR CERTAIN
HIGH-PRICED SINGLE SOURCE DRUGS
``SEC. 1191. ESTABLISHMENT OF PROGRAM.
``(a) In General.--The Secretary shall establish a Fair Price
Negotiation Program (in this part referred to as the `program'). Under
the program, with respect to each price applicability period, the
Secretary shall--
``(1) publish a list of selected drugs in accordance with
section 1192;
``(2) enter into agreements with manufacturers of selected
drugs with respect to such period, in accordance with section
1193;
``(3) negotiate and, if applicable, renegotiate maximum
fair prices for such selected drugs, in accordance with section
1194; and
``(4) carry out the administrative duties described in
section 1196.
``(b) Definitions Relating to Timing.--For purposes of this part:
``(1) Initial price applicability year.--The term `initial
price applicability year' means a plan year (beginning with
plan year 2025) or, if agreed to in an agreement under section
1193 by the Secretary and manufacturer involved, a period of
more than one plan year (beginning on or after January 1,
2025).
``(2) Price applicability period.--The term `price
applicability period' means, with respect to a drug, the period
beginning with the initial price applicability year with
respect to which such drug is a selected drug and ending with
the last plan year during which the drug is a selected drug.
``(3) Selected drug publication date.--The term `selected
drug publication date' means, with respect to each initial
price applicability year, April 15 of the plan year that begins
2 years prior to such year.
``(4) Voluntary negotiation period.--The term `voluntary
negotiation period' means, with respect to an initial price
applicability year with respect to a selected drug, the
period--
``(A) beginning on the sooner of--
``(i) the date on which the manufacturer of
the drug and the Secretary enter into an
agreement under section 1193 with respect to
such drug; or
``(ii) June 15 following the selected drug
publication date with respect to such selected
drug; and
``(B) ending on March 31 of the year that begins
one year prior to the initial price applicability year.
``(c) Other Definitions.--For purposes of this part:
``(1) Fair price eligible individual.--The term `fair price
eligible individual' means, with respect to a selected drug--
``(A) in the case such drug is furnished or
dispensed to the individual at a pharmacy or by a mail
order service--
``(i) an individual who is enrolled under a
prescription drug plan under part D of title
XVIII or an MA-PD plan under part C of such
title if coverage is provided under such plan
for such selected drug; and
``(ii) an individual who is enrolled under
a group health plan or health insurance
coverage offered in the group or individual
market (as such terms are defined in section
2791 of the Public Health Service Act) with
respect to which there is in effect an
agreement with the Secretary under section 1197
with respect to such selected drug as so
furnished or dispensed; and
``(B) in the case such drug is furnished or
administered to the individual by a hospital,
physician, or other provider of services or supplier--
``(i) an individual who is entitled to
benefits under part A of title XVIII or
enrolled under part B of such title if such
selected drug is covered under the respective
part; and
``(ii) an individual who is enrolled under
a group health plan or health insurance
coverage offered in the group or individual
market (as such terms are defined in section
2791 of the Public Health Service Act) with
respect to which there is in effect an
agreement with the Secretary under section 1197
with respect to such selected drug as so
furnished or administered.
``(2) Maximum fair price.--The term `maximum fair price'
means, with respect to a plan year during a price applicability
period and with respect to a selected drug (as defined in
section 1192(c)) with respect to such period, the price
published pursuant to section 1195 in the Federal Register for
such drug and year.
``(3) Average international market price defined.--
``(A) In general.--The terms `average international
market price' and `AIM price' mean, with respect to a
drug, the average price (which shall be the net average
price, if practicable, and volume-weighted, if
practicable) for a unit (as defined in paragraph (4))
of the drug for sales of such drug (calculated across
different dosage forms and strengths of the drug and
not based on the specific formulation or package size
or package type), as computed (as of the date of
publication of such drug as a selected drug under
section 1192(a)) in all countries described in clause
(ii) of subparagraph (B) that are applicable countries
(as described in clause (i) of such subparagraph) with
respect to such drug.
``(B) Applicable countries.--
``(i) In general.--For purposes of
subparagraph (A), a country described in clause
(ii) is an applicable country described in this
clause with respect to a drug if there is
available an average price for any unit for the
drug for sales of such drug in such country.
``(ii) Countries described.--For purposes
of this paragraph, the following are countries
described in this clause:
``(I) Australia.
``(II) Canada.
``(III) France.
``(IV) Germany.
``(V) Japan.
``(VI) The United Kingdom.
``(4) Unit.--The term `unit' means, with respect to a drug,
the lowest identifiable quantity (such as a capsule or tablet,
milligram of molecules, or grams) of the drug that is
dispensed.
``SEC. 1192. SELECTION OF NEGOTIATION-ELIGIBLE DRUGS AS SELECTED DRUGS.
``(a) In General.--Not later than the selected drug publication
date with respect to an initial price applicability year, subject to
subsection (h), the Secretary shall select and publish in the Federal
Register a list of--
``(1)(A) with respect to an initial price applicability
year during 2025, at least 25 negotiation-eligible drugs
described in subparagraphs (A) and (B), but not subparagraph
(C), of subsection (d)(1) (or, with respect to an initial price
applicability year during such period beginning after 2025, the
maximum number (if such number is less than 25) of such
negotiation-eligible drugs for the year) with respect to such
year; and
``(B) with respect to an initial price applicability year
during 2026 or a subsequent year, at least 50 negotiation-
eligible drugs described in subparagraphs (A) and (B), but not
subparagraph (C), of subsection (d)(1) (or, with respect to an
initial price applicability year during such period, the
maximum number (if such number is less than 50) of such
negotiation-eligible drugs for the year) with respect to such
year;
``(2) all negotiation-eligible drugs described in
subparagraph (C) of such subsection with respect to such year;
and
``(3) all new-entrant negotiation-eligible drugs (as
defined in subsection (g)(1)) with respect to such year.
Each drug published on the list pursuant to the previous sentence shall
be subject to the negotiation process under section 1194 for the
voluntary negotiation period with respect to such initial price
applicability year (and the renegotiation process under such section as
applicable for any subsequent year during the applicable price
applicability period). In applying this subsection, any negotiation-
eligible drug that is selected under this subsection for an initial
price applicability year shall not count toward the required minimum
amount of drugs to be selected under paragraph (1) for any subsequent
year, including such a drug so selected that is subject to
renegotiation under section 1194.
``(b) Selection of Drugs.--In carrying out subsection (a)(1) the
Secretary shall select for inclusion on the published list described in
subsection (a) with respect to a price applicability period, the
negotiation-eligible drugs that the Secretary projects will result in
the greatest savings to the Federal Government or fair price eligible
individuals during the price applicability period. In making this
projection of savings for drugs for which there is an AIM price for a
price applicability period, the savings shall be projected across
different dosage forms and strengths of the drugs and not based on the
specific formulation or package size or package type of the drugs,
taking into consideration both the volume of drugs for which payment is
made, to the extent such data is available, and the amount by which the
net price for the drugs exceeds the AIM price for the drugs.
``(c) Selected Drug.--For purposes of this part, each drug included
on the list published under subsection (a) with respect to an initial
price applicability year shall be referred to as a `selected drug' with
respect to such year and each subsequent plan year beginning before the
first plan year beginning after the date on which the Secretary
determines two or more drug products--
``(1) are approved or licensed (as applicable)--
``(A) under section 505(j) of the Federal Food,
Drug, and Cosmetic Act using such drug as the listed
drug; or
``(B) under section 351(k) of the Public Health
Service Act using such drug as the reference product;
and
``(2) continue to be marketed.
``(d) Negotiation-Eligible Drug.--
``(1) In general.--For purposes of this part, the term
`negotiation-eligible drug' means, with respect to the selected
drug publication date with respect to an initial price
applicability year, a qualifying single source drug, as defined
in subsection (e), that meets any of the following criteria:
``(A) Covered part d drugs.--The drug is among the
125 covered part D drugs (as defined in section 1860D-
2(e)) for which there was an estimated greatest net
spending under parts C and D of title XVIII, as
determined by the Secretary, during the most recent
plan year prior to such drug publication date for which
data are available.
``(B) Other drugs.--The drug is among the 125 drugs
for which there was an estimated greatest net spending
in the United States (including the 50 States, the
District of Columbia, and the territories of the United
States), as determined by the Secretary, during the
most recent plan year prior to such drug publication
date for which data are available.
``(C) Insulin.--The drug is a qualifying single
source drug described in subsection (e)(3).
``(2) Clarification.--In determining whether a qualifying
single source drug satisfies any of the criteria described in
paragraph (1), the Secretary shall, to the extent practicable,
use data that is aggregated across dosage forms and strengths
of the drug and not based on the specific formulation or
package size or package type of the drug.
``(3) Publication.--Not later than the selected drug
publication date with respect to an initial price applicability
year, the Secretary shall publish in the Federal Register a
list of negotiation-eligible drugs with respect to such
selected drug publication date.
``(e) Qualifying Single Source Drug.--For purposes of this part,
the term `qualifying single source drug' means any of the following:
``(1) Drug products.--A drug that--
``(A) is approved under section 505(c) of the
Federal Food, Drug, and Cosmetic Act and continues to
be marketed pursuant to such approval; and
``(B) is not the listed drug for any drug that is
approved and continues to be marketed under section
505(j) of such Act.
``(2) Biological products.--A biological product that--
``(A) is licensed under section 351(a) of the
Public Health Service Act, including any product that
has been deemed to be licensed under section 351 of
such Act pursuant to section 7002(e)(4) of the
Biologics Price Competition and Innovation Act of 2009,
and continues to be marketed under section 351 of such
Act; and
``(B) is not the reference product for any
biological product that is licensed and continues to be
marketed under section 351(k) of such Act.
``(3) Insulin product.--Notwithstanding paragraphs (1) and
(2), any insulin product that is approved under subsection (c)
or (j) of section 505 of the Federal Food, Drug, and Cosmetic
Act or licensed under subsection (a) or (k) of section 351 of
the Public Health Service Act and continues to be marketed
under such section 505 or 351, including any insulin product
that has been deemed to be licensed under section 351(a) of the
Public Health Service Act pursuant to section 7002(e)(4) of the
Biologics Price Competition and Innovation Act of 2009 and
continues to be marketed pursuant to such licensure.
For purposes of applying paragraphs (1) and (2), a drug or biological
product that is marketed by the same sponsor or manufacturer (or an
affiliate thereof or a cross-licensed producer or distributor) as the
listed drug or reference product described in such respective paragraph
shall not be taken into consideration.
``(f) Information on International Drug Prices.--For purposes of
determining which negotiation-eligible drugs to select under subsection
(a) and, in the case of such drugs that are selected drugs, to
determine the maximum fair price for such a drug and whether such
maximum fair price should be renegotiated under section 1194, the
Secretary shall use data relating to the AIM price with respect to such
drug as available or provided to the Secretary and shall on an ongoing
basis request from manufacturers of selected drugs information on the
AIM price of such a drug.
``(g) New-Entrant Negotiation-Eligible Drugs.--
``(1) In general.--For purposes of this part, the term
`new-entrant negotiation-eligible drug' means, with respect to
the selected drug publication date with respect to an initial
price applicability year, a qualifying single source drug--
``(A) that is first approved or licensed, as
described in paragraph (1), (2), or (3) of subsection
(e), as applicable, during the year preceding such
selected drug publication date; and
``(B) that the Secretary determines under paragraph
(2) is likely to be included as a negotiation-eligible
drug with respect to the subsequent selected drug
publication date.
``(2) Determination.--In the case of a qualifying single
source drug that meets the criteria described in subparagraph
(A) of paragraph (1), with respect to an initial price
applicability year, if the wholesale acquisition cost at which
such drug is first marketed in the United States is equal to or
greater than the median household income (as determined
according to the most recent data collected by the United
States Census Bureau), the Secretary shall determine before the
selected drug publication date with respect to the initial
price applicability year, if the drug is likely to be included
as a negotiation-eligible drug with respect to the subsequent
selected drug publication date, based on the projected spending
under title XVIII or in the United States on such drug. For
purposes of this paragraph the term `United States' includes
the 50 States, the District of Columbia, and the territories of
the United States.
``(h) Conflict of Interest.--
``(1) In general.--In the case the Inspector General of the
Department of Health and Human Services determines the
Secretary has a conflict, with respect to a matter described in
paragraph (2), the individual described in paragraph (3) shall
carry out the duties of the Secretary under this part, with
respect to a negotiation-eligible drug, that would otherwise be
such a conflict.
``(2) Matter described.--A matter described in this
paragraph is--
``(A) a financial interest (as described in section
2635.402 of title 5, Code of Federal Regulations, as in
effect on the date of the enactment of this section,
(except for an interest described in subsection
(b)(2)(iv) of such section)) on the date of the
selected drug publication date, with respect the price
applicability year (as applicable);
``(B) a personal or business relationship (as
described in section 2635.502 of such title) on the
date of the selected drug publication date, with
respect the price applicability year;
``(C) employment by a manufacturer of a
negotiation-eligible drug during the preceding 10-year
period beginning on the date of the selected drug
publication date, with respect to each price
applicability year; and
``(D) any other matter the General Counsel
determines appropriate.
``(3) Individual described.--An individual described in
this paragraph is--
``(A) the highest-ranking officer or employee of
the Department of Health and Human Services (as
determined by the organizational chart of the
Department) that does not have a conflict under this
subsection; and
``(B) is nominated by the President and confirmed
by the Senate with respect to the position.
``SEC. 1193. MANUFACTURER AGREEMENTS.
``(a) In General.--For purposes of section 1191(a)(2), the
Secretary shall enter into agreements with manufacturers of selected
drugs with respect to a price applicability period, by not later than
June 15 following the selected drug publication date with respect to
such selected drug, under which--
``(1) during the voluntary negotiation period for the
initial price applicability year for the selected drug, the
Secretary and manufacturer, in accordance with section 1194,
negotiate to determine (and, by not later than the last date of
such period and in accordance with subsection (c), agree to) a
maximum fair price for such selected drug of the manufacturer
in order to provide access to such price--
``(A) to fair price eligible individuals who with
respect to such drug are described in subparagraph (A)
of section 1191(c)(1) and are furnished or dispensed
such drug during, subject to subparagraph (2), the
price applicability period; and
``(B) to hospitals, physicians, and other providers
of services and suppliers with respect to fair price
eligible individuals who with respect to such drug are
described in subparagraph (B) of such section and are
furnished or administered such drug during, subject to
subparagraph (2), the price applicability period;
``(2) the Secretary and the manufacturer shall, in
accordance with a process and during a period specified by the
Secretary pursuant to rulemaking, renegotiate (and, by not
later than the last date of such period and in accordance with
subsection (c), agree to) the maximum fair price for such drug
if the Secretary determines that there is a material change in
any of the factors described in section 1194(d) relating to the
drug, including changes in the AIM price for such drug, in
order to provide access to such maximum fair price (as so
renegotiated)--
``(A) to fair price eligible individuals who with
respect to such drug are described in subparagraph (A)
of section 1191(c)(1) and are furnished or dispensed
such drug during any year during the price
applicability period (beginning after such
renegotiation) with respect to such selected drug; and
``(B) to hospitals, physicians, and other providers
of services and suppliers with respect to fair price
eligible individuals who with respect to such drug are
described in subparagraph (B) of such section and are
furnished or administered such drug during any year
described in subparagraph (A);
``(3) the maximum fair price (including as renegotiated
pursuant to paragraph (2)), with respect to such a selected
drug, shall be provided to fair price eligible individuals, who
with respect to such drug are described in subparagraph (A) of
section 1191(c)(1), at the pharmacy or by a mail order service
at the point-of-sale of such drug;
``(4) the manufacturer, subject to subsection (d), submits
to the Secretary, in a form and manner specified by the
Secretary--
``(A) for the voluntary negotiation period for the
price applicability period (and, if applicable, before
any period of renegotiation specified pursuant to
paragraph (2)) with respect to such drug all
information that the Secretary requires to carry out
the negotiation (or renegotiation process) under this
part, including information described in section
1192(f) and section 1194(d)(1); and
``(B) on an ongoing basis, information on changes
in prices for such drug that would affect the AIM price
for such drug or otherwise provide a basis for
renegotiation of the maximum fair price for such drug
pursuant to paragraph (2);
``(5) the manufacturer agrees that in the case the selected
drug of a manufacturer is a drug described in subsection (c),
the manufacturer will, in accordance with such subsection, make
any payment required under such subsection with respect to such
drug; and
``(6) the manufacturer complies with requirements imposed
by the Secretary for purposes of administering the program,
including with respect to the duties described in section 1196.
``(b) Agreement in Effect Until Drug Is No Longer a Selected
Drug.--An agreement entered into under this section shall be effective,
with respect to a drug, until such drug is no longer considered a
selected drug under section 1192(c).
``(c) Special Rule for Certain Selected Drugs Without AIM Price.--
``(1) In general.--In the case of a selected drug for which
there is no AIM price available with respect to the initial
price applicability year for such drug and for which an AIM
price becomes available beginning with respect to a subsequent
plan year during the price applicability period for such drug,
if the Secretary determines that the amount described in
paragraph (2)(A) for a unit of such drug is greater than the
amount described in paragraph (2)(B) for a unit of such drug,
then by not later than one year after the date of such
determination, the manufacturer of such selected drug shall pay
to the Treasury an amount equal to the product of--
``(A) the difference between such amount described
in paragraph (2)(A) for a unit of such drug and such
amount described in paragraph (2)(B) for a unit of such
drug; and
``(B) the number of units of such drug sold in the
United States, including the 50 States, the District of
Columbia, and the territories of the United States,
during the period described in paragraph (2)(B).
``(2) Amounts described.--
``(A) Weighted average price before aim price
available.--For purposes of paragraph (1), the amount
described in this subparagraph for a selected drug
described in such paragraph, is the amount equal to the
weighted average manufacturer price (as defined in
section 1927(k)(1)) for such dosage strength and form
for the drug during the period beginning with the first
plan year for which the drug is included on the list of
negotiation-eligible drugs published under section
1192(d) and ending with the last plan year during the
price applicability period for such drug with respect
to which there is no AIM price available for such drug.
``(B) Amount multiplier after aim price
available.--For purposes of paragraph (1), the amount
described in this subparagraph for a selected drug
described in such paragraph, is the amount equal to 200
percent of the AIM price for such drug with respect to
the first plan year during the price applicability
period for such drug with respect to which there is an
AIM price available for such drug.
``(d) Confidentiality of Information.--Information submitted to the
Secretary under this part by a manufacturer of a selected drug that is
proprietary information of such manufacturer (as determined by the
Secretary) may be used only by the Secretary or disclosed to and used
by the Comptroller General of the United States or the Medicare Payment
Advisory Commission for purposes of carrying out this part.
``(e) Regulations.--
``(1) In general.--The Secretary shall, pursuant to
rulemaking, specify, in accordance with paragraph (2), the
information that must be submitted under subsection (a)(4).
``(2) Information specified.--Information described in
paragraph (1), with respect to a selected drug, shall include
information on sales of the drug (by the manufacturer of the
drug or by another entity under license or other agreement with
the manufacturer, with respect to the sales of such drug,
regardless of the name under which the drug is sold) in any
foreign country that is part of the AIM price. The Secretary
shall verify, to the extent practicable, such sales from
appropriate officials of the government of the foreign country
involved.
``(f) Compliance With Requirements for Administration of Program.--
Each manufacturer with an agreement in effect under this section shall
comply with requirements imposed by the Secretary or a third party with
a contract under section 1196(c)(1), as applicable, for purposes of
administering the program.
``SEC. 1194. NEGOTIATION AND RENEGOTIATION PROCESS.
``(a) In General.--For purposes of this part, under an agreement
under section 1193 between the Secretary and a manufacturer of a
selected drug, with respect to the period for which such agreement is
in effect and in accordance with subsections (b) and (c), the Secretary
and the manufacturer--
``(1) shall during the voluntary negotiation period with
respect to the initial price applicability year for such drug,
in accordance with this section, negotiate a maximum fair price
for such drug for the purpose described in section 1193(a)(1);
and
``(2) as applicable pursuant to section 1193(a)(2) and in
accordance with the process specified pursuant to such section,
renegotiate such maximum fair price for such drug for the
purpose described in such section.
``(b) Negotiating Methodology and Objective.--
``(1) In general.--The Secretary shall develop and use a
consistent methodology for negotiations under subsection (a)
that, in accordance with paragraph (2) and subject to paragraph
(3), achieves the lowest maximum fair price for each selected
drug while appropriately rewarding innovation.
``(2) Prioritizing factors.--In considering the factors
described in subsection (d) in negotiating (and, as applicable,
renegotiating) the maximum fair price for a selected drug, the
Secretary shall, to the extent practicable, consider all of the
available factors listed but shall prioritize the following
factors:
``(A) Research and development costs.--The factor
described in paragraph (1)(A) of subsection (d).
``(B) Market data.--The factor described in
paragraph (1)(B) of such subsection.
``(C) Unit costs of production and distribution.--
The factor described in paragraph (1)(C) of such
subsection.
``(D) Comparison to existing therapeutic
alternatives.--The factor described in paragraph (2)(A)
of such subsection.
``(3) Requirement.--
``(A) In general.--In negotiating the maximum fair
price of a selected drug, with respect to an initial
price applicability year for the selected drug, and, as
applicable, in renegotiating the maximum fair price for
such drug, with respect to a subsequent year during the
price applicability period for such drug, in the case
that the manufacturer of the selected drug offers under
the negotiation or renegotiation, as applicable, a
price for such drug that is not more than the target
price described in subparagraph (B) for such drug for
the respective year, the Secretary shall agree under
such negotiation or renegotiation, respectively, to
such offered price as the maximum fair price.
``(B) Target price.--
``(i) In general.--Subject to clause (ii),
the target price described in this subparagraph
for a selected drug with respect to a year, is
the average price (which shall be the net
average price, if practicable, and volume-
weighted, if practicable) for a unit of such
drug for sales of such drug, as computed
(across different dosage forms and strengths of
the drug and not based on the specific
formulation or package size or package type of
the drug) in the applicable country described
in section 1191(c)(3)(B) with respect to such
drug that, with respect to such year, has the
lowest average price for such drug as compared
to the average prices (as so computed) of such
drug with respect to such year in the other
applicable countries described in such section
with respect to such drug.
``(ii) Selected drugs without aim price.--
In applying this paragraph in the case of
negotiating the maximum fair price of a
selected drug for which there is no AIM price
available with respect to the initial price
applicability year for such drug, or, as
applicable, renegotiating the maximum fair
price for such drug with respect to a
subsequent year during the price applicability
period for such drug before the first plan year
for which there is an AIM price available for
such drug, the target price described in this
subparagraph for such drug and respective year
is the amount that is 80 percent of the average
manufacturer price (as defined in section
1927(k)(1)) for such drug and year.
``(c) Limitation.--
``(1) In general.--Subject to paragraph (2), the maximum
fair price negotiated (including as renegotiated) under this
section for a selected drug, with respect to each plan year
during a price applicability period for such drug, shall not
exceed 120 percent of the AIM price applicable to such drug
with respect to such year.
``(2) Selected drugs without aim price.--In the case of a
selected drug for which there is no AIM price available with
respect to the initial price applicability year for such drug,
for each plan year during the price applicability period before
the first plan year for which there is an AIM price available
for such drug, the maximum fair price negotiated (including as
renegotiated) under this section for the selected drug shall
not exceed the amount equal to 85 percent of the average
manufacturer price for the drug with respect to such year.
``(d) Considerations.--For purposes of negotiating and, as
applicable, renegotiating (including for purposes of determining
whether to renegotiate) the maximum fair price of a selected drug under
this part with the manufacturer of the drug, the Secretary, consistent
with subsection (b)(2), shall take into consideration the factors
described in paragraphs (1), (2), (3), and (5), and may take into
consideration the factor described in paragraph (4):
``(1) Manufacturer-specific information.--The following
information, including as submitted by the manufacturer:
``(A) Research and development costs of the
manufacturer for the drug and the extent to which the
manufacturer has recouped research and development
costs.
``(B) Market data for the drug, including the
distribution of sales across different programs and
purchasers and projected future revenues for the drug.
``(C) Unit costs of production and distribution of
the drug.
``(D) Prior Federal financial support for novel
therapeutic discovery and development with respect to
the drug.
``(E) Data on patents and on existing and pending
exclusivity for the drug.
``(F) National sales data for the drug.
``(G) Information on clinical trials for the drug
in the United States or in applicable countries
described in section 1191(c)(3)(B).
``(2) Information on alternative products.--The following
information:
``(A) The extent to which the drug represents a
therapeutic advance as compared to existing therapeutic
alternatives and, to the extent such information is
available, the costs of such existing therapeutic
alternatives.
``(B) Information on approval by the Food and Drug
Administration of alternative drug products.
``(C) Information on comparative effectiveness
analysis for such products, taking into consideration
the effects of such products on specific populations,
such as individuals with disabilities, the elderly,
terminally ill, children, and other patient
populations.
In considering information described in subparagraph (C), the
Secretary shall not use evidence or findings from comparative
clinical effectiveness research in a manner that treats
extending the life of an elderly, disabled, or terminally ill
individual as of lower value than extending the life of an
individual who is younger, nondisabled, or not terminally ill.
Nothing in the previous sentence shall affect the application
or consideration of an AIM price for a selected drug.
``(3) Foreign sales information.--To the extent available
on a timely basis, including as provided by a manufacturer of
the selected drug or otherwise, information on sales of the
selected drug in each of the countries described in section
1191(c)(3)(B).
``(4) VA drug pricing information.--Information disclosed
to the Secretary pursuant to subsection (f).
``(5) Additional information.--Information submitted to the
Secretary, in accordance with a process specified by the
Secretary, by other parties that are affected by the
establishment of a maximum fair price for the selected drug.
``(e) Request for Information.--For purposes of negotiating and, as
applicable, renegotiating (including for purposes of determining
whether to renegotiate) the maximum fair price of a selected drug under
this part with the manufacturer of the drug, with respect to a price
applicability period, and other relevant data for purposes of this
section--
``(1) the Secretary shall, not later than the selected drug
publication date with respect to the initial price
applicability year of such period, request drug pricing
information from the manufacturer of such selected drug,
including information described in subsection (d)(1); and
``(2) by not later than October 1 following the selected
drug publication date, the manufacturer of such selected drug
shall submit to the Secretary such requested information in
such form and manner as the Secretary may require.
The Secretary shall request, from the manufacturer or others, such
additional information as may be needed to carry out the negotiation
and renegotiation process under this section.
``(f) Disclosure of Information.--For purposes of this part, the
Secretary of Veterans Affairs may disclose to the Secretary of Health
and Human Services the price of any negotiation-eligible drug that is
purchased pursuant to section 8126 of title 38, United States Code.
``SEC. 1195. PUBLICATION OF MAXIMUM FAIR PRICES.
``(a) In General.--With respect to an initial price applicability
year and selected drug with respect to such year, not later than April
1 of the plan year prior to such initial price applicability year, the
Secretary shall publish in the Federal Register the maximum fair price
for such drug negotiated under this part with the manufacturer of such
drug.
``(b) Updates.--
``(1) Subsequent year maximum fair prices.--For a selected
drug, for each plan year subsequent to the initial price
applicability year for such drug with respect to which an
agreement for such drug is in effect under section 1193, the
Secretary shall publish in the Federal Register--
``(A) subject to subparagraph (B), the amount equal
to the maximum fair price published for such drug for
the previous year, increased by the annual percentage
increase in the consumer price index for all urban
consumers (all items; U.S. city average) as of
September of such previous year; or
``(B) in the case the maximum fair price for such
drug was renegotiated, for the first year for which
such price as so renegotiated applies, such
renegotiated maximum fair price.
``(2) Prices negotiated after deadline.--In the case of a
selected drug with respect to an initial price applicability
year for which the maximum fair price is determined under this
part after the date of publication under this section, the
Secretary shall publish such maximum fair price in the Federal
Register by not later than 30 days after the date such maximum
price is so determined.
``SEC. 1196. ADMINISTRATIVE DUTIES; COORDINATION PROVISIONS.
``(a) Administrative Duties.--
``(1) In general.--For purposes of section 1191, the
administrative duties described in this section are the
following:
``(A) The establishment of procedures (including
through agreements with manufacturers under this part,
contracts with prescription drug plans under part D of
title XVIII and MA-PD plans under part C of such title,
and agreements under section 1197 with group health
plans and health insurance issuers of health insurance
coverage offered in the individual or group market)
under which the maximum fair price for a selected drug
is provided to fair price eligible individuals, who
with respect to such drug are described in subparagraph
(A) of section 1191(c)(1), at pharmacies or by mail
order service at the point-of-sale of the drug for the
applicable price period for such drug and providing
that such maximum fair price is used for determining
cost-sharing under such plans or coverage for the
selected drug.
``(B) The establishment of procedures (including
through agreements with manufacturers under this part
and contracts with hospitals, physicians, and other
providers of services and suppliers and agreements
under section 1197 with group health plans and health
insurance issuers of health insurance coverage offered
in the individual or group market) under which, in the
case of a selected drug furnished or administered by
such a hospital, physician, or other provider of
services or supplier to fair price eligible individuals
(who with respect to such drug are described in
subparagraph (B) of section 1191(c)(1)), the maximum
fair price for the selected drug is provided to such
hospitals, physicians, and other providers of services
and suppliers (as applicable) with respect to such
individuals and providing that such maximum fair price
is used for determining cost-sharing under the
respective part, plan, or coverage for the selected
drug.
``(C) The establishment of procedures (including
through agreements and contracts described in
subparagraphs (A) and (B)) to ensure that, not later
than 90 days after the dispensing of a selected drug to
a fair price eligible individual by a pharmacy or mail
order service, the pharmacy or mail order service is
reimbursed for an amount equal to the difference
between--
``(i) the lesser of--
``(I) the wholesale acquisition
cost of the drug;
``(II) the national average drug
acquisition cost of the drug; and
``(III) any other similar
determination of pharmacy acquisition
costs of the drug, as determined by the
Secretary; and
``(ii) the maximum fair price for the drug.
``(D) The establishment of procedures to ensure
that the maximum fair price for a selected drug is
applied before--
``(i) any coverage or financial assistance
under other health benefit plans or programs
that provide coverage or financial assistance
for the purchase or provision of prescription
drug coverage on behalf of fair price eligible
individuals as the Secretary may specify; and
``(ii) any other discounts.
``(E) The establishment of procedures to enter into
appropriate agreements and protocols for the ongoing
computation of AIM prices for selected drugs,
including, to the extent possible, to compute the AIM
price for selected drugs and including by providing
that the manufacturer of such a selected drug should
provide information for such computation not later than
3 months after the first date of the voluntary
negotiation period for such selected drug.
``(F) The establishment of procedures to compute
and apply the maximum fair price across different
strengths and dosage forms of a selected drug and not
based on the specific formulation or package size or
package type of the drug.
``(G) The establishment of procedures to negotiate
and apply the maximum fair price in a manner that does
not include any dispensing or similar fee.
``(H) The establishment of procedures to carry out
the provisions of this part, as applicable, with
respect to--
``(i) fair price eligible individuals who
are enrolled under a prescription drug plan
under part D of title XVIII or an MA-PD plan
under part C of such title;
``(ii) fair price eligible individuals who
are enrolled under a group health plan or
health insurance coverage offered by a health
insurance issuer in the individual or group
market with respect to which there is an
agreement in effect under section 1197; and
``(iii) fair price eligible individuals who
are entitled to benefits under part A of title
XVIII or enrolled under part B of such title.
``(I) The establishment of a negotiation process
and renegotiation process in accordance with section
1194, including a process for acquiring information
described in subsection (d) of such section and
determining amounts described in subsection (b) of such
section.
``(J) The provision of a reasonable dispute
resolution mechanism to resolve disagreements between
manufacturers, fair price eligible individuals, and the
third party with a contract under subsection (c)(1).
``(2) Monitoring compliance.--
``(A) In general.--The Secretary shall monitor
compliance by a manufacturer with the terms of an
agreement under section 1193, including by establishing
a mechanism through which violations of such terms may
be reported.
``(B) Notification.--If a third party with a
contract under subsection (c)(1) determines that the
manufacturer is not in compliance with such agreement,
the third party shall notify the Secretary of such
noncompliance for appropriate enforcement under section
4192 of the Internal Revenue Code of 1986 or section
1198, as applicable.
``(b) Collection of Data.--
``(1) From prescription drug plans and ma-pd plans.--The
Secretary may collect appropriate data from prescription drug
plans under part D of title XVIII and MA-PD plans under part C
of such title in a timeframe that allows for maximum fair
prices to be provided under this part for selected drugs.
``(2) From health plans.--The Secretary may collect
appropriate data from group health plans or health insurance
issuers offering group or individual health insurance coverage
in a timeframe that allows for maximum fair prices to be
provided under this part for selected drugs.
``(3) Coordination of data collection.--To the extent
feasible, as determined by the Secretary, the Secretary shall
ensure that data collected pursuant to this subsection is
coordinated with, and not duplicative of, other Federal data
collection efforts.
``(c) Contract With Third Parties.--
``(1) In general.--The Secretary may enter into a contract
with 1 or more third parties to administer the requirements
established by the Secretary in order to carry out this part.
At a minimum, the contract with a third party under the
preceding sentence shall require that the third party--
``(A) receive and transmit information between the
Secretary, manufacturers, and other individuals or
entities the Secretary determines appropriate;
``(B) receive, distribute, or facilitate the
distribution of funds of manufacturers to appropriate
individuals or entities in order to meet the
obligations of manufacturers under agreements under
this part;
``(C) provide adequate and timely information to
manufacturers, consistent with the agreement with the
manufacturer under this part, as necessary for the
manufacturer to fulfill its obligations under this
part; and
``(D) permit manufacturers to conduct periodic
audits, directly or through contracts, of the data and
information used by the third party to determine
discounts for applicable drugs of the manufacturer
under the program.
``(2) Performance requirements.--The Secretary shall
establish performance requirements for a third party with a
contract under paragraph (1) and safeguards to protect the
independence and integrity of the activities carried out by the
third party under the program under this part.
``SEC. 1197. VOLUNTARY PARTICIPATION BY OTHER HEALTH PLANS.
``(a) Agreement To Participate Under Program.--
``(1) In general.--Subject to paragraph (2), under the
program under this part the Secretary shall be treated as
having in effect an agreement with a group health plan or
health insurance issuer offering group or individual health
insurance coverage (as such terms are defined in section 2791
of the Public Health Service Act), with respect to a price
applicability period and a selected drug with respect to such
period--
``(A) with respect to such selected drug furnished
or dispensed at a pharmacy or by mail order service if
coverage is provided under such plan or coverage during
such period for such selected drug as so furnished or
dispensed; and
``(B) with respect to such selected drug furnished
or administered by a hospital, physician, or other
provider of services or supplier if coverage is
provided under such plan or coverage during such period
for such selected drug as so furnished or administered.
``(2) Opting out of agreement.--The Secretary shall not be
treated as having in effect an agreement under the program
under this part with a group health plan or health insurance
issuer offering group or individual health insurance coverage
with respect to a price applicability period and a selected
drug with respect to such period if such a plan or issuer
affirmatively elects, through a process specified by the
Secretary, not to participate under the program with respect to
such period and drug.
``(b) Publication of Election.--With respect to each price
applicability period and each selected drug with respect to such
period, the Secretary and the Secretary of Labor and the Secretary of
the Treasury, as applicable, shall make public a list of each group
health plan and each health insurance issuer offering group or
individual health insurance coverage, with respect to which coverage is
provided under such plan or coverage for such drug, that has elected
under subsection (a) not to participate under the program with respect
to such period and drug.
``SEC. 1198. CIVIL MONETARY PENALTY.
``(a) Violations Relating to Offering of Maximum Fair Price.--Any
manufacturer of a selected drug that has entered into an agreement
under section 1193, with respect to a plan year during the price
applicability period for such drug, that does not provide access to a
price that is not more than the maximum fair price (or a lesser price)
for such drug for such year--
``(1) to a fair price eligible individual who with respect
to such drug is described in subparagraph (A) of section
1191(c)(1) and who is furnished or dispensed such drug during
such year; or
``(2) to a hospital, physician, or other provider of
services or supplier with respect to fair price eligible
individuals who with respect to such drug is described in
subparagraph (B) of such section and is furnished or
administered such drug by such hospital, physician, or provider
or supplier during such year;
shall be subject to a civil monetary penalty equal to ten times the
amount equal to the difference between the price for such drug made
available for such year by such manufacturer with respect to such
individual or hospital, physician, provider, or supplier and the
maximum fair price for such drug for such year.
``(b) Violations of Certain Terms of Agreement.--Any manufacturer
of a selected drug that has entered into an agreement under section
1193, with respect to a plan year during the price applicability period
for such drug, that is in violation of a requirement imposed pursuant
to section 1193(a)(6) shall be subject to a civil monetary penalty of
not more than $1,000,000 for each such violation.
``(c) Application.--The provisions of section 1128A (other than
subsections (a) and (b)) shall apply to a civil monetary penalty under
this section in the same manner as such provisions apply to a penalty
or proceeding under section 1128A(a).
``SEC. 1199. MISCELLANEOUS PROVISIONS.
``(a) Paperwork Reduction Act.--Chapter 35 of title 44, United
States Code, shall not apply to data collected under this part.
``(b) Limitation on Judicial Review.--The following shall not be
subject to judicial review:
``(1) The selection of drugs for publication under section
1192(a).
``(2) The determination of whether a drug is a negotiation-
eligible drug under section 1192(d).
``(3) The determination of the maximum fair price of a
selected drug under section 1194.
``(4) The determination of units of a drug for purposes of
section 1191(c)(3).
``(c) Coordination.--In carrying out this part with respect to
group health plans or health insurance coverage offered in the group
market that are subject to oversight by the Secretary of Labor or the
Secretary of the Treasury, the Secretary of Health and Human Services
shall coordinate with such respective Secretary.
``(d) Data Sharing.--The Secretary shall share with the Secretary
of the Treasury such information as is necessary to determine the tax
imposed by section 4192 of the Internal Revenue Code of 1986.''.
(b) Application of Maximum Fair Prices and Conforming Amendments.--
(1) Under medicare.--
(A) Application to payments under part b.--Section
1847A(b)(1)(B) of the Social Security Act (42 U.S.C.
1395w-3a(b)(1)(B)) is amended by inserting ``or in the
case of such a drug or biological that is a selected
drug (as defined in section 1192(c)), with respect to a
price applicability period (as defined in section
1191(b)(2)), 106 percent of the maximum fair price (as
defined in section 1191(c)(2)) applicable for such drug
and a plan year during such period'' after ``paragraph
(4)''.
(B) Exception to part d non-interference.--Section
1860D-11(i) of the Social Security Act (42 U.S.C.
1395w-111(i)) is amended by inserting ``, except as
provided under part E of title XI'' after ``the
Secretary''.
(C) Application as negotiated price under part d.--
Section 1860D-2(d)(1) of the Social Security Act (42
U.S.C. 1395w-102(d)(1)) is amended--
(i) in subparagraph (B), by inserting ``,
subject to subparagraph (D),'' after
``negotiated prices''; and
(ii) by adding at the end the following new
subparagraph:
``(D) Application of maximum fair price for
selected drugs.--In applying this section, in the case
of a covered part D drug that is a selected drug (as
defined in section 1192(c)), with respect to a price
applicability period (as defined in section
1191(b)(2)), the negotiated prices used for payment (as
described in this subsection) shall be the maximum fair
price (as defined in section 1191(c)(2)) for such drug
and for each plan year during such period.''.
(D) Information from prescription drug plans and
ma-pd plans required.--
(i) Prescription drug plans.--Section
1860D-12(b) of the Social Security Act (42
U.S.C. 1395w-112(b)) is amended by adding at
the end the following new paragraph:
``(8) Provision of information related to maximum fair
prices.--Each contract entered into with a PDP sponsor under
this part with respect to a prescription drug plan offered by
such sponsor shall require the sponsor to provide information
to the Secretary as requested by the Secretary in accordance
with section 1196(b).''.
(ii) MA-PD plans.--Section 1857(f)(3) of
the Social Security Act (42 U.S.C. 1395w-
27(f)(3)) is amended by adding at the end the
following new subparagraph:
``(E) Provision of information related to maximum
fair prices.--Section 1860D-12(b)(8).''.
(2) Under group health plans and health insurance
coverage.--
(A) PHSA.--Part D of title XXVII of the Public
Health Service Act (42 U.S.C. 300gg-111 et seq.) is
amended by adding at the end the following new section:
``SEC. 2799A-11. FAIR PRICE NEGOTIATION PROGRAM AND APPLICATION OF
MAXIMUM FAIR PRICES.
``(a) In General.--In the case of a group health plan or health
insurance issuer offering group or individual health insurance coverage
that is treated under section 1197 of the Social Security Act as having
in effect an agreement with the Secretary under the Fair Price
Negotiation Program under part E of title XI of such Act, with respect
to a price applicability period (as defined in section 1191(b) of such
Act) and a selected drug (as defined in section 1192(c) of such Act)
with respect to such period with respect to which coverage is provided
under such plan or coverage--
``(1) the provisions of such part shall apply--
``(A) if coverage of such selected drug is provided
under such plan or coverage if the drug is furnished or
dispensed at a pharmacy or by a mail order service, to
the plans or coverage offered by such plan or issuer,
and to the individuals enrolled under such plans or
coverage, during such period, with respect to such
selected drug, in the same manner as such provisions
apply to prescription drug plans and MA-PD plans, and
to individuals enrolled under such prescription drug
plans and MA-PD plans during such period; and
``(B) if coverage of such selected drug is provided
under such plan or coverage if the drug is furnished or
administered by a hospital, physician, or other
provider of services or supplier, to the plans or
coverage offered by such plan or issuers, to the
individuals enrolled under such plans or coverage, and
to hospitals, physicians, and other providers of
services and suppliers during such period, with respect
to such drug in the same manner as such provisions
apply to the Secretary, to individuals entitled to
benefits under part A of title XVIII or enrolled under
part B of such title, and to hospitals, physicians, and
other providers and suppliers participating under title
XVIII during such period;
``(2) the plan or issuer shall apply any cost-sharing
responsibilities under such plan or coverage, with respect to
such selected drug, by substituting an amount not more than the
maximum fair price negotiated under such part E of title XI for
such drug in lieu of the drug price upon which the cost-sharing
would have otherwise applied, and such cost-sharing
responsibilities with respect to such selected drug may not
exceed such maximum fair price; and
``(3) the Secretary shall apply the provisions of such part
E to such plan, issuer, and coverage, such individuals so
enrolled in such plans and coverage, and such hospitals,
physicians, and other providers and suppliers participating in
such plans and coverage.
``(b) Notification Regarding Nonparticipation in Fair Price
Negotiation Program.--A group health plan or a health insurance issuer
offering group or individual health insurance coverage shall publicly
disclose in a manner and in accordance with a process specified by the
Secretary any election made under section 1197 of the Social Security
Act by the plan or issuer to not participate in the Fair Price
Negotiation Program under part E of title XI of such Act with respect
to a selected drug (as defined in section 1192(c) of such Act) for
which coverage is provided under such plan or coverage before the
beginning of the plan year for which such election was made.''.
(B) ERISA.--
(i) In general.--Subpart B of part 7 of
subtitle B of title I of the Employee
Retirement Income Security Act of 1974 (29
U.S.C. 1181 et seq.) is amended by adding at
the end the following new section:
``SEC. 726. FAIR PRICE NEGOTIATION PROGRAM AND APPLICATION OF MAXIMUM
FAIR PRICES.
``(a) In General.--In the case of a group health plan or health
insurance issuer offering group health insurance coverage that is
treated under section 1197 of the Social Security Act as having in
effect an agreement with the Secretary under the Fair Price Negotiation
Program under part E of title XI of such Act, with respect to a price
applicability period (as defined in section 1191(b) of such Act) and a
selected drug (as defined in section 1192(c) of such Act) with respect
to such period with respect to which coverage is provided under such
plan or coverage--
``(1) the provisions of such part shall apply, as
applicable--
``(A) if coverage of such selected drug is provided
under such plan or coverage if the drug is furnished or
dispensed at a pharmacy or by a mail order service, to
the plans or coverage offered by such plan or issuer,
and to the individuals enrolled under such plans or
coverage, during such period, with respect to such
selected drug, in the same manner as such provisions
apply to prescription drug plans and MA-PD plans, and
to individuals enrolled under such prescription drug
plans and MA-PD plans during such period; and
``(B) if coverage of such selected drug is provided
under such plan or coverage if the drug is furnished or
administered by a hospital, physician, or other
provider of services or supplier, to the plans or
coverage offered by such plan or issuers, to the
individuals enrolled under such plans or coverage, and
to hospitals, physicians, and other providers of
services and suppliers during such period, with respect
to such drug in the same manner as such provisions
apply to the Secretary, to individuals entitled to
benefits under part A of title XVIII or enrolled under
part B of such title, and to hospitals, physicians, and
other providers and suppliers participating under title
XVIII during such period;
``(2) the plan or issuer shall apply any cost-sharing
responsibilities under such plan or coverage, with respect to
such selected drug, by substituting an amount not more than the
maximum fair price negotiated under such part E of title XI for
such drug in lieu of the drug price upon which the cost-sharing
would have otherwise applied, and such cost-sharing
responsibilities with respect to such selected drug may not
exceed such maximum fair price; and
``(3) the Secretary shall apply the provisions of such part
E to such plan, issuer, and coverage, and such individuals so
enrolled in such plans.
``(b) Notification Regarding Nonparticipation in Fair Price
Negotiation Program.--A group health plan or a health insurance issuer
offering group health insurance coverage shall publicly disclose in a
manner and in accordance with a process specified by the Secretary any
election made under section 1197 of the Social Security Act by the plan
or issuer to not participate in the Fair Price Negotiation Program
under part E of title XI of such Act with respect to a selected drug
(as defined in section 1192(c) of such Act) for which coverage is
provided under such plan or coverage before the beginning of the plan
year for which such election was made.''.
(ii) Application to retiree and certain
small group health plans.--Section 732(a) of
the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1191a(a)) is amended by
striking ``section 711'' and inserting
``sections 711 and 726''.
(iii) Clerical amendment.--The table of
sections for subpart B of part 7 of subtitle B
of title I of the Employee Retirement Income
Security Act of 1974 is amended by adding at
the end the following:
``Sec. 726. Fair Price Negotiation Program and application of maximum
fair prices.''.
(C) IRC.--
(i) In general.--Subchapter B of chapter
100 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new
section:
``SEC. 9826. FAIR PRICE NEGOTIATION PROGRAM AND APPLICATION OF MAXIMUM
FAIR PRICES.
``(a) In General.--In the case of a group health plan that is
treated under section 1197 of the Social Security Act as having in
effect an agreement with the Secretary under the Fair Price Negotiation
Program under part E of title XI of such Act, with respect to a price
applicability period (as defined in section 1191(b) of such Act) and a
selected drug (as defined in section 1192(c) of such Act) with respect
to such period with respect to which coverage is provided under such
plan--
``(1) the provisions of such part shall apply, as
applicable--
``(A) if coverage of such selected drug is provided
under such plan if the drug is furnished or dispensed
at a pharmacy or by a mail order service, to the plan,
and to the individuals enrolled under such plan during
such period, with respect to such selected drug, in the
same manner as such provisions apply to prescription
drug plans and MA-PD plans, and to individuals enrolled
under such prescription drug plans and MA-PD plans
during such period; and
``(B) if coverage of such selected drug is provided
under such plan if the drug is furnished or
administered by a hospital, physician, or other
provider of services or supplier, to the plan, to the
individuals enrolled under such plan, and to hospitals,
physicians, and other providers of services and
suppliers during such period, with respect to such drug
in the same manner as such provisions apply to the
Secretary, to individuals entitled to benefits under
part A of title XVIII or enrolled under part B of such
title, and to hospitals, physicians, and other
providers and suppliers participating under title XVIII
during such period;
``(2) the plan shall apply any cost-sharing
responsibilities under such plan, with respect to such selected
drug, by substituting an amount not more than the maximum fair
price negotiated under such part E of title XI for such drug in
lieu of the drug price upon which the cost-sharing would have
otherwise applied, and such cost-sharing responsibilities with
respect to such selected drug may not exceed such maximum fair
price; and
``(3) the Secretary shall apply the provisions of such part
E to such plan and such individuals so enrolled in such plan.
``(b) Notification Regarding Nonparticipation in Fair Price
Negotiation Program.--A group health plan shall publicly disclose in a
manner and in accordance with a process specified by the Secretary any
election made under section 1197 of the Social Security Act by the plan
to not participate in the Fair Price Negotiation Program under part E
of title XI of such Act with respect to a selected drug (as defined in
section 1192(c) of such Act) for which coverage is provided under such
plan before the beginning of the plan year for which such election was
made.''.
(ii) Application to retiree and certain
small group health plans.--Section 9831(a)(2)
of the Internal Revenue Code of 1986 is amended
by inserting ``other than with respect to
section 9826,'' before ``any group health
plan''.
(iii) Clerical amendment.--The table of
sections for subchapter B of chapter 100 of
such Code is amended by adding at the end the
following new item:
``Sec. 9826. Fair Price Negotiation Program and application of maximum
fair prices.''.
(3) Fair price negotiation program prices included in best
price and amp.--Section 1927 of the Social Security Act (42
U.S.C. 1396r-8) is amended--
(A) in subsection (c)(1)(C)(ii)--
(i) in subclause (III), by striking at the
end ``; and'';
(ii) in subclause (IV), by striking at the
end the period and inserting ``; and''; and
(iii) by adding at the end the following
new subclause:
``(V) in the case of a rebate
period and a covered outpatient drug
that is a selected drug (as defined in
section 1192(c)) during such rebate
period, shall be inclusive of the price
for such drug made available from the
manufacturer during the rebate period
by reason of application of part E of
title XI to any wholesaler, retailer,
provider, health maintenance
organization, nonprofit entity, or
governmental entity within the United
States.''; and
(B) in subsection (k)(1)(B), by adding at the end
the following new clause:
``(iii) Clarification.--Notwithstanding
clause (i), in the case of a rebate period and
a covered outpatient drug that is a selected
drug (as defined in section 1192(c)) during
such rebate period, any reduction in price paid
during the rebate period to the manufacturer
for the drug by a wholesaler or retail
community pharmacy described in subparagraph
(A) by reason of application of part E of title
XI shall be included in the average
manufacturer price for the covered outpatient
drug.''.
(4) FEHBP.--Section 8902 of title 5, United States Code, is
amended by adding at the end the following:
``(p) A contract may not be made or a plan approved under this
chapter with any carrier that has affirmatively elected, pursuant to
section 1197 of the Social Security Act, not to participate in the Fair
Price Negotiation Program established under section 1191 of such Act
for any selected drug (as that term is defined in section 1192(c) of
such Act).''.
(5) Option of secretary of veterans affairs to purchase
covered drugs at maximum fair prices.--Section 8126 of title
38, United States Code, is amended--
(A) in subsection (a)(2), by inserting ``, subject
to subsection (j),'' after ``may not exceed'';
(B) in subsection (d), in the matter preceding
paragraph (1), by inserting ``, subject to subsection
(j)'' after ``for the procurement of the drug''; and
(C) by adding at the end the following new
subsection:
``(j)(1) In the case of a covered drug that is a selected drug, for
any year during the price applicability period for such drug, if the
Secretary determines that the maximum fair price of such drug for such
year is less than the price for such drug otherwise in effect pursuant
to this section (including after application of any reduction under
subsection (a)(2) and any discount under subsection (c)), at the option
of the Secretary, in lieu of the maximum price (determined after
application of the reduction under subsection (a)(2) and any discount
under subsection (c), as applicable) that would be permitted to be
charged during such year for such drug pursuant to this section without
application of this subsection, the maximum price permitted to be
charged during such year for such drug pursuant to this section shall
be such maximum fair price for such drug and year.
``(2) For purposes of this subsection:
``(A) The term `maximum fair price' means, with respect to
a selected drug and year during the price applicability period
for such drug, the maximum fair price (as defined in section
1191(c)(2) of the Social Security Act) for such drug and year.
``(B) The term `negotiation eligible drug' has the meaning
given such term in section 1192(d)(1) of the Social Security
Act.
``(C) The term `price applicability period' has, with
respect to a selected drug, the meaning given such term in
section 1191(b)(2) of such Act.
``(D) The term `selected drug' means, with respect to a
year, a drug that is a selected drug under section 1192(c) of
such Act for such year.''.
SEC. 139002. SELECTED DRUG MANUFACTURER EXCISE TAX IMPOSED DURING
NONCOMPLIANCE PERIODS.
(a) In General.--Subchapter E of chapter 32 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 4192. SELECTED DRUGS DURING NONCOMPLIANCE PERIODS.
``(a) In General.--There is hereby imposed on the sale by the
manufacturer, producer, or importer of any selected drug during a day
described in subsection (b) a tax in an amount such that the applicable
percentage is equal to the ratio of--
``(1) such tax, divided by
``(2) the sum of such tax and the price for which so sold.
``(b) Noncompliance Periods.--A day is described in this subsection
with respect to a selected drug if it is a day during one of the
following periods:
``(1) The period beginning on the June 16th immediately
following the selected drug publication date and ending on the
first date during which the manufacturer of the drug has in
place an agreement described in subsection (a) of section 1193
of the Social Security Act with respect to such drug.
``(2) The period beginning on the April 1st immediately
following the June 16th described in paragraph (1) and ending
on the first date during which the manufacturer of the drug has
agreed to a maximum fair price under such agreement.
``(3) In the case of a selected drug with respect to which
the Secretary of Health and Human Services has specified a
renegotiation period under such agreement, the period beginning
on the first date after the last date of such renegotiation
period and ending on the first date during which the
manufacturer of the drug has agreed to a renegotiated maximum
fair price under such agreement.
``(4) With respect to information that is required to be
submitted to the Secretary of Health and Human Services under
such agreement, the period beginning on the date on which such
Secretary certifies that such information is overdue and ending
on the date that such information is so submitted.
``(5) In the case of a selected drug with respect to which
a payment is due under subsection (c) of such section 1193, the
period beginning on the date on which the Secretary of Health
and Human Services certifies that such payment is overdue and
ending on the date that such payment is made in full.
``(c) Applicable Percentage.--For purposes of this section, the
term `applicable percentage' means--
``(1) in the case of sales of a selected drug during the
first 90 days described in subsection (b) with respect to such
drug, 65 percent,
``(2) in the case of sales of such drug during the 91st day
through the 180th day described in subsection (b) with respect
to such drug, 75 percent,
``(3) in the case of sales of such drug during the 181st
day through the 270th day described in subsection (b) with
respect to such drug, 85 percent, and
``(4) in the case of sales of such drug during any
subsequent day, 95 percent.
``(d) Selected Drug.--For purposes of this section--
``(1) In general.--The term `selected drug' means any
selected drug (within the meaning of section 1192 of the Social
Security Act) which is manufactured or produced in the United
States or entered into the United States for consumption, use,
or warehousing.
``(2) United states.--The term `United States' has the
meaning given such term by section 4612(a)(4).
``(3) Coordination with rules for possessions of the united
states.--Rules similar to the rules of paragraphs (2) and (4)
of section 4132(c) shall apply for purposes of this section.
``(e) Other Definitions.--For purposes of this section, the terms
`selected drug publication date' and `maximum fair price' have the
meaning given such terms in section 1191 of the Social Security Act.
``(f) Anti-Abuse Rule.--In the case of a sale which was timed for
the purpose of avoiding the tax imposed by this section, the Secretary
may treat such sale as occurring during a day described in subsection
(b).''.
(b) No Deduction for Excise Tax Payments.--Section 275 of the
Internal Revenue Code of 1986 is amended by adding ``or by section
4192'' before the period at the end of subsection (a)(6).
(c) Conforming Amendments.--
(1) Section 4221(a) of the Internal Revenue Code of 1986 is
amended by inserting ``or 4192'' after ``section 4191''.
(2) Section 6416(b)(2) of such Code is amended by inserting
``or 4192'' after ``section 4191''.
(d) Clerical Amendments.--
(1) The heading of subchapter E of chapter 32 of the
Internal Revenue Code of 1986 is amended by striking ``Medical
Devices'' and inserting ``Other Medical Products''.
(2) The table of subchapters for chapter 32 of such Code is
amended by striking the item relating to subchapter E and
inserting the following new item:
``subchapter e. other medical products''.
(3) The table of sections for subchapter E of chapter 32 of
such Code is amended by adding at the end the following new
item:
``Sec. 4192. Selected drugs during noncompliance periods.''.
(e) Effective Date.--The amendments made by this section shall
apply to sales after the date of the enactment of this Act.
SEC. 139003. FAIR PRICE NEGOTIATION IMPLEMENTATION FUND.
(a) In General.--There is hereby established a Fair Price
Negotiation Implementation Fund (referred to in this section as the
``Fund''). The Secretary of Health and Human Services may obligate and
expend amounts in the Fund to carry out this part and parts 2 and 3
(and the amendments made by such parts).
(b) Funding.--There is authorized to be appropriated, and there is
hereby appropriated, out of any monies in the Treasury not otherwise
appropriated, to the Fund $3,000,000,000, to remain available until
expended, of which--
(1) $600,000,000 shall become available on the date of the
enactment of this Act;
(2) $600,000,000 shall become available on October 1, 2023;
(3) $600,000,000 shall become available on October 1, 2024;
(4) $600,000,000 shall become available on October 1, 2025;
and
(5) $600,000,000 shall become available on October 1, 2026.
(c) Supplement Not Supplant.--Any amounts appropriated pursuant to
this section shall be in addition to any other amounts otherwise
appropriated pursuant to any other provision of law.
PART 2--PRESCRIPTION DRUG INFLATION REBATES
SEC. 139101. MEDICARE PART B REBATE BY MANUFACTURERS.
(a) In General.--Section 1834 of the Social Security Act (42 U.S.C.
1395m) is amended by adding at the end the following new subsection:
``(z) Rebate by Manufacturers for Single Source Drugs With Prices
Increasing Faster Than Inflation.--
``(1) Requirements.--
``(A) Secretarial provision of information.--Not
later than 6 months after the end of each calendar
quarter beginning on or after July 1, 2023, the
Secretary shall, for each part B rebatable drug, report
to each manufacturer of such part B rebatable drug the
following for such calendar quarter:
``(i) Information on the total number of
units of the billing and payment code described
in subparagraph (A)(i) of paragraph (3) with
respect to such drug and calendar quarter.
``(ii) Information on the amount (if any)
of the excess average sales price increase
described in subparagraph (A)(ii) of such
paragraph for such drug and calendar quarter.
``(iii) The rebate amount specified under
such paragraph for such part B rebatable drug
and calendar quarter.
``(B) Manufacturer requirement.--For each calendar
quarter beginning on or after July 1, 2023, the
manufacturer of a part B rebatable drug shall, for such
drug, not later than 30 days after the date of receipt
from the Secretary of the information described in
subparagraph (A) for such calendar quarter, provide to
the Secretary a rebate that is equal to the amount
specified in paragraph (3) for such drug for such
calendar quarter.
``(2) Part b rebatable drug defined.--
``(A) In general.--In this subsection, the term
`part B rebatable drug' means a single source drug or
biological (as defined in subparagraph (D) of section
1847A(c)(6)), including a biosimilar biological product
(as defined in subparagraph (H) of such section),
payable (if such drug were furnished to an individual
enrolled under this part) under this part, except such
term shall not include such a drug or biological--
``(i) if the average total allowed charges
under this part as determined by the Secretary
for a year per individual that uses such a drug
or biological, as determined by the Secretary,
are less than, subject to subparagraph (B),
$100; or
``(ii) that is a vaccine described in
subparagraph (A) or (B) of section 1861(s)(10).
``(B) Increase.--The dollar amount applied under
subparagraph (A)(i)--
``(i) for 2024, shall be the dollar amount
specified under such subparagraph for 2023,
increased by the percentage increase in the
consumer price index for all urban consumers
(United States city average) for the 12-month
period ending with June of the previous year;
and
``(ii) for a subsequent year, shall be the
dollar amount specified in this clause (or
clause (i)) for the previous year, increased by
the percentage increase in the consumer price
index for all urban consumers (United States
city average) for the 12-month period ending
with June of the previous year.
Any dollar amount specified under this subparagraph
that is not a multiple of $10 shall be rounded to the
nearest multiple of $10.
``(3) Rebate amount.--
``(A) In general.--For purposes of paragraph (1),
the amount specified in this paragraph for a part B
rebatable drug assigned to a billing and payment code
for a calendar quarter is, subject to subparagraph (B)
and paragraph (4), the amount equal to the product of--
``(i) the total number of units, as
described in section 1847A(c)(1)(B), with
respect to such drug during the calendar
quarter; and
``(ii) the amount (if any) by which--
``(I) the payment amount under
subparagraph (B) or (C) of section
1847A(b)(1), as applicable, for such
part B rebatable drug during the
calendar quarter; exceeds
``(II) the inflation-adjusted
payment amount determined under
subparagraph (C) for such part B
rebatable drug during the calendar
quarter.
``(B) Excluded units.--For purposes of subparagraph
(A)(i), the Secretary shall exclude from the total
number of units with respect to a part B rebatable drug
and calendar quarter units of such part B rebatable
drug for which payment was made under a State plan
under title XIX (or waiver of such plan), as reported
by States under section 1927(b)(2)(A) for the most
recent rebate period.
``(C) Determination of inflation-adjusted payment
amount.--The inflation-adjusted payment amount
determined under this subparagraph for a part B
rebatable drug for a calendar quarter is--
``(i) the payment amount for the billing
and payment code for such drug in the payment
amount benchmark quarter (as defined in
subparagraph (D)); increased by
``(ii) the percentage by which the rebate
period CPI-U (as defined in subparagraph (F))
for the calendar quarter exceeds the benchmark
period CPI-U (as defined in subparagraph (E)).
``(D) Payment amount benchmark quarter.--The term
`payment amount benchmark quarter' means the calendar
quarter beginning January 1, 2016.
``(E) Benchmark period cpi-u.--The term `benchmark
period CPI-U' means the consumer price index for all
urban consumers (United States city average) for July
2015.
``(F) Rebate period cpi-u.--The term `rebate period
CPI-U' means, with respect to a calendar quarter
described in subparagraph (C), the greater of the
benchmark period CPI-U and the consumer price index for
all urban consumers (United States city average) for
the first month of the calendar quarter that is two
calendar quarters prior to such described calendar
quarter.
``(4) Special treatment of certain drugs and exemption.--
``(A) Subsequently approved drugs.--Subject to
subparagraph (B), in the case of a part B rebatable
drug first approved or licensed by the Food and Drug
Administration after July 1, 2015, clause (i) of
paragraph (3)(C) shall be applied as if the term
`payment amount benchmark quarter' were defined under
paragraph (3)(D) as the third full calendar quarter
after the day on which the drug was first marketed and
clause (ii) of paragraph (3)(C) shall be applied as if
the term `benchmark period CPI-U' were defined under
paragraph (3)(E) as if the reference to `July 2015'
under such paragraph were a reference to `the first
month of the first full calendar quarter after the day
on which the drug was first marketed'.
``(B) Timeline for provision of rebates for
subsequently approved drugs.--In the case of a part B
rebatable drug first approved or licensed by the Food
and Drug Administration after July 1, 2015, paragraph
(1)(B) shall be applied as if the reference to `July 1,
2023' under such paragraph were a reference to the
later of the 6th full calendar quarter after the day on
which the drug was first marketed or July 1, 2023.
``(C) Exemption for shortages.--The Secretary may
reduce or waive the rebate amount under paragraph
(1)(B) with respect to a part B rebatable drug that is
described as currently in shortage on the shortage list
in effect under section 506E of the Federal Food, Drug,
and Cosmetic Act or in the case of other exigent
circumstances, as determined by the Secretary.
``(D) Selected drugs.--In the case of a part B
rebatable drug that is a selected drug (as defined in
section 1192(c)) for a price applicability period (as
defined in section 1191(b)(2))--
``(i) for calendar quarters during such
period for which a maximum fair price (as
defined in section 1191(c)(2)) for such drug
has been determined and is applied under part E
of title XI, the rebate amount under paragraph
(1)(B) shall be waived; and
``(ii) in the case such drug is determined
(pursuant to such section 1192(c)) to no longer
be a selected drug, for each applicable year
beginning after the price applicability period
with respect to such drug, clause (i) of
paragraph (3)(C) shall be applied as if the
term `payment amount benchmark quarter' were
defined under paragraph (3)(D) as the calendar
quarter beginning January 1 of the last year
beginning during such price applicability
period with respect to such selected drug and
clause (ii) of paragraph (3)(C) shall be
applied as if the term `benchmark period CPI-U'
were defined under paragraph (3)(E) as if the
reference to `July 2015' under such paragraph
were a reference to the July of the year
preceding such last year.
``(5) Application to beneficiary coinsurance.--In the case
of a part B rebatable drug, if the payment amount under this
part for a quarter exceeds the inflation adjusted payment for
such quarter--
``(A) in computing the amount of any coinsurance
applicable under this part to an individual to whom
such drug is furnished, the computation of such
coinsurance shall be based on the inflation-adjusted
payment amount determined under paragraph (3)(C) for
such part B rebatable drug; and
``(B) the amount of such coinsurance is equal to 20
percent of such inflation-adjusted payment amount so
determined.
``(6) Rebate deposits.--Amounts paid as rebates under
paragraph (1)(B) shall be deposited into the Federal
Supplementary Medical Insurance Trust Fund established under
section 1841.
``(7) Civil money penalty.--If a manufacturer of a part B
rebatable drug has failed to comply with the requirements under
paragraph (1)(B) for such drug for a calendar quarter, the
manufacturer shall be subject to, in accordance with a process
established by the Secretary pursuant to regulations, a civil
money penalty in an amount equal to at least 125 percent of the
amount specified in paragraph (3) for such drug for such
calendar quarter. The provisions of section 1128A (other than
subsections (a) (with respect to amounts of penalties or
additional assessments) and (b)) shall apply to a civil money
penalty under this paragraph in the same manner as such
provisions apply to a penalty or proceeding under section
1128A(a).
``(8) Application to multiple source drugs.--The Secretary
may, pursuant to rulemaking, apply the provisions of this
subsection to multiple source drugs (as defined in section
1847A(c)(6)(C)), including, for purposes of determining the
rebate amount under paragraph (3), by calculating manufacturer-
specific average sales prices for the benchmark period and the
rebate period.''.
(b) Amounts Payable; Cost-Sharing.--Section 1833 of the Social
Security Act (42 U.S.C. 1395l) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) in subparagraph (G), by inserting ``,
subject to subsection (i)(9),'' after ``the
amounts paid'';
(ii) in subparagraph (S), by striking
``with respect to'' and inserting ``subject to
subparagraph (DD), with respect to'';
(iii) by striking ``and (DD)'' and
inserting ``(EE)''; and
(iv) by inserting before the semicolon at
the end the following: ``, and (EE) with
respect to a part B rebatable drug (as defined
in paragraph (2) of section 1834(z)) for which
the payment amount for a calendar quarter under
paragraph (3)(A)(ii)(I) of such section for
such quarter exceeds the inflation-adjusted
payment under paragraph (3)(A)(ii)(II) of such
section for such quarter, the amounts paid
shall be the difference between (i) the payment
amount under paragraph (3)(A)(ii)(I) of such
section for such drug, and (ii) 20 percent of
the inflation-adjusted payment amount under
paragraph (3)(A)(ii)(II) of such section for
such drug''; and
(B) by adding at the end of the flush left matter
following paragraph (9), the following:
``For purposes of applying paragraph (1)(EE), subsections (i)(9) and
(t)(8)(F), and section 1834(z)(5), the Secretary shall make such
estimates and use such data as the Secretary determines appropriate,
and may do so by program instruction or otherwise.'';
(2) in subsection (i), by adding at the end the following
new paragraph:
``(9) In the case of a part B rebatable drug (as defined in
paragraph (2) of section 1834(z)) for which payment under this
subsection is not packaged into a payment for a covered OPD service (as
defined in subsection (t)(1)(B)) (or group of services) furnished on or
after July 1, 2023, under the system under this subsection, in lieu of
calculation of coinsurance and the amount of payment otherwise
applicable under this subsection, the provisions of section 1834(z)(5),
paragraph (1)(EE) of subsection (a), and the flush left matter
following paragraph (9) of subsection (a), shall, as determined
appropriate by the Secretary, apply under this subsection in the same
manner as such provisions of section 1834(z)(5) and subsection (a)
apply under such section and subsection.''; and
(3) in subsection (t)(8), by adding at the end the
following new subparagraph:
``(F) Part b rebatable drugs.--In the case of a
part B rebatable drug (as defined in paragraph (2) of
section 1834(z)) for which payment under this part is
not packaged into a payment for a service furnished on
or after July 1, 2023, under the system under this
subsection, in lieu of calculation of coinsurance and
the amount of payment otherwise applicable under this
subsection, the provisions of section 1834(z)(5),
paragraph (1)(EE) of subsection (a), and the flush left
matter following paragraph (9) of subsection (a),
shall, as determined appropriate by the Secretary,
apply under this subsection in the same manner as such
provisions of section 1834(z)(5) and subsection (a)
apply under such section and subsection.''.
(c) Conforming Amendments.--
(1) To part b asp calculation.--Section 1847A(c)(3) of the
Social Security Act (42 U.S.C. 1395w-3a(c)(3)) is amended by
inserting ``or section 1834(z)'' after ``section 1927''.
(2) Excluding parts b drug inflation rebate from best
price.--Section 1927(c)(1)(C)(ii)(I) of the Social Security Act
(42 U.S.C. 1396r-8(c)(1)(C)(ii)(I)) is amended by inserting
``or section 1834(z)'' after ``this section''.
(3) Coordination with medicaid rebate information
disclosure.--Section 1927(b)(3)(D)(i) of the Social Security
Act (42 U.S.C. 1396r-8(b)(3)(D)(i)) is amended by striking ``or
to carry out section 1847B'' and inserting ``to carry out
section 1847B or section 1834(z)''.
SEC. 139102. MEDICARE PART D REBATE BY MANUFACTURERS.
(a) In General.--Part D of title XVIII of the Social Security Act
is amended by inserting after section 1860D-14A (42 U.S.C. 1395w-114a)
the following new section:
``SEC. 1860D-14B. MANUFACTURER REBATE FOR CERTAIN DRUGS WITH PRICES
INCREASING FASTER THAN INFLATION.
``(a) Requirements.--
``(1) Secretarial provision of information.--Not later than
9 months after the end of each applicable year (as defined in
subsection (g)(7)), the Secretary shall, for each part D
rebatable drug, report to each manufacturer of such part D
rebatable drug the following for such year:
``(A) Information on the amount (if any) of the
excess average manufacturer price increase described in
subsection (b)(1)(B) for each dosage form and strength
with respect to such drug and year.
``(B) The rebate amount specified under subsection
(b) for each dosage form and strength with respect to
such drug and year.
``(2) Manufacturer requirements.--For each applicable year,
the manufacturer of a part D rebatable drug, for each dosage
form and strength with respect to such drug, not later than 30
days after the date of receipt from the Secretary of the
information described in paragraph (1) for such year, shall
provide to the Secretary a rebate that is equal to the amount
specified in subsection (b) for such dosage form and strength
with respect to such drug for such year.
``(b) Rebate Amount.--
``(1) In general.--
``(A) Calculation.--For purposes of this section,
the amount specified in this subsection for a dosage
form and strength with respect to a part D rebatable
drug and applicable year is, subject to subparagraph
(B) of this paragraph and subparagraphs (B) and (C) of
paragraph (5), the amount equal to the product of--
``(i) the total number of units that are
used to calculate the average manufacturer
price of such dosage form and strength with
respect to such part D rebatable drug, as
reported by the manufacturer of such drug under
section 1927 for each recent rebate period
under such section, with respect to such year,
under such section for which such information
is available; and
``(ii) the amount (if any) by which--
``(I) the annual manufacturer price
(as determined in paragraph (2)) paid
for such dosage form and strength with
respect to such part D rebatable drug
for the year; exceeds
``(II) the inflation-adjusted
payment amount determined under
paragraph (3) for such dosage form and
strength with respect to such part D
rebatable drug for the year.
``(B) Excluded units.--For purposes of subparagraph
(A)(i), the Secretary shall exclude from the total
number of units for a dosage form and strength with
respect to a part D rebatable drug and the most recent
rebate period under section 1927, with respect to an
applicable year, for which such information is
available, units of each dosage form and strength of
such part D rebatable drug, for which payment was made
under a State plan under title XIX (or waiver of such
plan), as reported by States under section
1927(b)(2)(A) for such rebate period.
``(2) Determination of annual manufacturer price.--The
annual manufacturer price determined under this paragraph for a
dosage form and strength, with respect to a part D rebatable
drug and an applicable year, is the sum of the products of--
``(A) the average manufacturer price (as defined in
subsection (g)(6)) of such dosage form and strength, as
calculated for a unit of such drug, with respect to
each of the calendar quarters of such year; and
``(B) the ratio of--
``(i) the total number of units of such
dosage form and strength reported for the
purpose of calculating average manufacturer
price under section 1927 during each such
calendar quarter of such year; to
``(ii) the total number of units of such
dosage form and strength reported for the
purpose of calculating average manufacturer
price under section 1927 during such year, as
determined by the Secretary.
``(3) Determination of inflation-adjusted payment amount.--
The inflation-adjusted payment amount determined under this
paragraph for a dosage form and strength with respect to a part
D rebatable drug for an applicable year, subject to
subparagraphs (A) and (D) of paragraph (5), is--
``(A) the benchmark year manufacturer price
determined under paragraph (4) for such dosage form and
strength with respect to such drug and year; increased
by
``(B) the percentage by which the applicable year
CPI-U (as defined in subsection (g)(5)) for the year
exceeds the benchmark period CPI-U (as defined in
subsection (g)(4)).
``(4) Determination of benchmark year manufacturer price.--
The benchmark year manufacturer price determined under this
paragraph for a dosage form and strength, with respect to a
part D rebatable drug and an applicable year, is the sum of the
products of--
``(A) the average manufacturer price (as defined in
subsection (g)(6)) of such dosage form and strength, as
calculated for a unit of such drug, with respect to
each of the calendar quarters of the payment amount
benchmark year (as defined in subsection (g)(3)); and
``(B) the ratio of--
``(i) the total number of units of such
dosage form and strength dispensed during each
such calendar quarter of such payment amount
benchmark year; to
``(ii) the total number of units of such
dosage form and strength dispensed during such
payment amount benchmark year.
``(5) Special treatment of certain drugs and exemption.--
``(A) Subsequently approved drugs.--In the case of
a part D rebatable drug first approved or licensed by
the Food and Drug Administration after January 1, 2016,
subparagraphs (A) and (B) of paragraph (4) shall be
applied as if the term `payment amount benchmark year'
were defined under subsection (g)(3) as the first
calendar year beginning after the day on which the drug
was first marketed by any manufacturer and subparagraph
(B) of paragraph (3) shall be applied as if the term
`benchmark period CPI-U' were defined under subsection
(g)(4) as if the reference to `January 2016' under such
subsection were a reference to `January of the first
year beginning after the date on which the drug was
first marketed by any manufacturer'.
``(B) Exemption for shortages.--The Secretary may
reduce or waive the rebate under paragraph (1) with
respect to a part D rebatable drug that is described as
currently in shortage on the shortage list in effect
under section 506E of the Federal Food, Drug, and
Cosmetic Act or in the case of other exigent
circumstances, as determined by the Secretary.
``(C) Treatment of new formulations.--
``(i) In general.--In the case of a part D
rebatable drug that is a line extension of a
part D rebatable drug that is an oral solid
dosage form, the Secretary shall establish a
formula for determining the amount specified in
this subsection with respect to such part D
rebatable drug and an applicable year with
consideration of the original part D rebatable
drug.
``(ii) Line extension defined.--In this
subparagraph, the term `line extension' means,
with respect to a part D rebatable drug, a new
formulation of the drug, such as an extended
release formulation, but does not include an
abuse-deterrent formulation of the drug (as
determined by the Secretary), regardless of
whether such abuse-deterrent formulation is an
extended release formulation.
``(D) Selected drugs.--In the case of a part D
rebatable drug that is a selected drug (as defined in
section 1192(c)) for a price applicability period (as
defined in section 1191(b)(2))--
``(i) for plan years during such period for
which a maximum fair price (as defined in
section 1191(c)(2)) for such drug has been
determined and is applied under part E of title
XI, the rebate under subsection (a)(1)(B) shall
be waived; and
``(ii) in the case such drug is determined
(pursuant to such section 1192(c)) to no longer
be a selected drug, for each applicable year
beginning after the price applicability period
with respect to such drug, subparagraphs (A)
and (B) of paragraph (4) shall be applied as if
the term `payment amount benchmark year' were
defined under subsection (g)(3) as the last
year beginning during such price applicability
period with respect to such selected drug and
subparagraph (B) of paragraph (3) shall be
applied as if the term `benchmark period CPI-U'
were defined under subsection (g)(4) as if the
reference to `January 2016' under such
subsection were a reference to January of the
last year beginning during such price
applicability period with respect to such drug.
``(c) Rebate Deposits.--Amounts paid as rebates under subsection
(b) shall be deposited into the Medicare Prescription Drug Account in
the Federal Supplementary Medical Insurance Trust Fund established
under section 1841.
``(d) Information.--For purposes of carrying out this section, the
Secretary shall use information submitted by manufacturers under
section 1927(b)(3) and information submitted by States under section
1927(b)(2)(A).
``(e) Civil Money Penalty.--If a manufacturer of a part D rebatable
drug has failed to comply with the requirement under subsection
(a)(1)(B) with respect to such drug for an applicable year, the
manufacturer shall be subject to, in accordance with a process
established by the Secretary pursuant to regulations, a civil money
penalty in an amount equal to 125 percent of the amount specified in
subsection (b) for such drug for such year. The provisions of section
1128A (other than subsections (a) (with respect to amounts of penalties
or additional assessments) and (b)) shall apply to a civil money
penalty under this subsection in the same manner as such provisions
apply to a penalty or proceeding under section 1128A(a).
``(f) Judicial Review.--There shall be no judicial review of the
following:
``(1) The determination of units under this section.
``(2) The determination of whether a drug is a part D
rebatable drug under this section.
``(3) The calculation of the rebate amount under this
section.
``(g) Definitions.--In this section:
``(1) Part d rebatable drug defined.--
``(A) In general.--The term `part D rebatable drug'
means a drug or biological that would (without
application of this section) be a covered part D drug,
except such term shall, with respect to an applicable
year, not include such a drug or biological if the
average annual total cost under this part for such year
per individual who uses such a drug or biological, as
determined by the Secretary, is less than, subject to
subparagraph (B), $100, as determined by the Secretary
using the most recent data available or, if data is not
available, as estimated by the Secretary.
``(B) Increase.--The dollar amount applied under
subparagraph (A)--
``(i) for 2024, shall be the dollar amount
specified under such subparagraph for 2023,
increased by the percentage increase in the
consumer price index for all urban consumers
(United States city average) for the 12-month
period beginning with January of 2023; and
``(ii) for a subsequent year, shall be the
dollar amount specified in this subparagraph
for the previous year, increased by the
percentage increase in the consumer price index
for all urban consumers (United States city
average) for the 12-month period beginning with
January of the previous year.
Any dollar amount specified under this subparagraph
that is not a multiple of $10 shall be rounded to the
nearest multiple of $10.
``(2) Unit defined.--The term `unit' means, with respect to
a part D rebatable drug, the lowest identifiable quantity (such
as a capsule or tablet, milligram of molecules, or grams) of
the part D rebatable drug, including data reported under
section 1927.
``(3) Payment amount benchmark year.--The term `payment
amount benchmark year' means the year beginning January 1,
2016.
``(4) Benchmark period cpi-u.--The term `benchmark period
CPI-U' means the consumer price index for all urban consumers
(United States city average) for January 2016.
``(5) Applicable year cpi-u.--The term `applicable year
CPI-U' means, with respect to an applicable year, the consumer
price index for all urban consumers (United States city
average) for January of such year.
``(6) Average manufacturer price.--The term `average
manufacturer price' has the meaning, with respect to a part D
rebatable drug of a manufacturer, given such term in section
1927(k)(1), with respect to a covered outpatient drug of a
manufacturer for a rebate period under section 1927.
``(7) Applicable year.--The term `applicable year' means a
year beginning with 2023.''.
(b) Conforming Amendments.--
(1) To part b asp calculation.--Section 1847A(c)(3) of the
Social Security Act (42 U.S.C. 1395w-3a(c)(3)), as amended by
section 139101(c)(1), is further amended by striking ``section
1927 or section 1834(z)'' and inserting ``section 1927, section
1834(z), or section 1860D-14B''.
(2) Excluding part d drug inflation rebate from best
price.--Section 1927(c)(1)(C)(ii)(I) of the Social Security Act
(42 U.S.C. 1396r-8(c)(1)(C)(ii)(I)), as amended by section
139101(c)(2), is further amended by striking ``or section
1834(z)'' and inserting ``, section 1834(z), or section 1860D-
14B''.
(3) Coordination with medicaid rebate information
disclosure.--Section 1927(b)(3)(D)(i) of the Social Security
Act (42 U.S.C. 1396r-8(b)(3)(D)(i)), as amended by section
139101(c)(3), is further amended by striking ``or section
1834(z)'' and inserting ``, section 1834(z), or section 1860D-
14B''.
PART 3--PART D IMPROVEMENTS AND MAXIMUM OUT-OF-POCKET CAP FOR MEDICARE
BENEFICIARIES
SEC. 139201. MEDICARE PART D BENEFIT REDESIGN.
(a) Benefit Structure Redesign.--Section 1860D-2(b) of the Social
Security Act (42 U.S.C. 1395w-102(b)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), in the matter preceding
clause (i), by inserting ``for a year preceding 2024
and for costs above the annual deductible specified in
paragraph (1) and up to the annual out-of-pocket
threshold specified in paragraph (4)(B) for 2024 and
each subsequent year'' after ``paragraph (3)'';
(B) in subparagraph (C)--
(i) in clause (i), in the matter preceding
subclause (I), by inserting ``for a year
preceding 2024,'' after ``paragraph (4),''; and
(ii) in clause (ii)(III), by striking ``and
each subsequent year'' and inserting ``through
2023''; and
(C) in subparagraph (D)--
(i) in clause (i)--
(I) in the matter preceding
subclause (I), by inserting ``for a
year preceding 2024,'' after
``paragraph (4),''; and
(II) in subclause (I)(bb), by
striking ``a year after 2018'' and
inserting ``each of years 2018 through
2023''; and
(ii) in clause (ii)(V), by striking ``2019
and each subsequent year'' and inserting ``each
of years 2019 through 2023'';
(2) in paragraph (3)(A)--
(A) in the matter preceding clause (i), by
inserting ``for a year preceding 2024,'' after ``and
(4),''; and
(B) in clause (ii), by striking ``for a subsequent
year'' and inserting ``for each of years 2007 through
2023''; and
(3) in paragraph (4)--
(A) in subparagraph (A)--
(i) in clause (i)--
(I) by redesignating subclauses (I)
and (II) as items (aa) and (bb),
respectively, and moving the margin of
each such redesignated item 2 ems to
the right;
(II) in the matter preceding item
(aa), as redesignated by subclause (I),
by striking ``is equal to the greater
of--'' and inserting ``is equal to--
``(I) for a year preceding 2024,
the greater of--'';
(III) by striking the period at the
end of item (bb), as redesignated by
subclause (I), and inserting ``; and'';
and
(IV) by adding at the end the
following:
``(II) for 2024 and each succeeding
year, $0.''; and
(ii) in clause (ii), by striking ``clause
(i)(I)'' and inserting ``clause (i)(I)(aa)'';
(B) in subparagraph (B)--
(i) in clause (i)--
(I) in subclause (V), by striking
``or'' at the end;
(II) in subclause (VI)--
(aa) by striking ``for a
subsequent year'' and inserting
``for each of years 2021
through 2023''; and
(bb) by striking the period
at the end and inserting a
semicolon; and
(III) by adding at the end the
following new subclauses:
``(VII) for 2024, is equal to
$2,000; or
``(VIII) for a subsequent year, is
equal to the amount specified in this
subparagraph for the previous year,
increased by the annual percentage
increase described in paragraph (6) for
the year involved.''; and
(ii) in clause (ii), by striking ``clause
(i)(II)'' and inserting ``clause (i)'';
(C) in subparagraph (C)(i), by striking ``and for
amounts'' and inserting ``and, for a year preceding
2024, for amounts''; and
(D) in subparagraph (E), by striking ``In
applying'' and inserting ``For each of years 2011
through 2023, in applying''.
(b) Decreasing Reinsurance Payment Amount.--Section 1860D-15(b)(1)
of the Social Security Act (42 U.S.C. 1395w-115(b)(1)) is amended by
inserting after ``80 percent'' the following: ``(or, with respect to a
coverage year after 2023, 20 percent)''.
(c) Manufacturer Discount Program.--
(1) In general.--Part D of title XVIII of the Social
Security Act (42 U.S.C. 1395w-101 et seq.), as amended by
section 139102, is further amended by inserting after section
1860D-14B the following new section:
``SEC. 1860D-14C. MANUFACTURER DISCOUNT PROGRAM.
``(a) Establishment.--The Secretary shall establish a manufacturer
discount program (in this section referred to as the `program'). Under
the program, the Secretary shall enter into agreements described in
subsection (b) with manufacturers and provide for the performance of
the duties described in subsection (c). The Secretary shall establish a
model agreement for use under the program by not later than January 1,
2023, in consultation with manufacturers, and allow for comment on such
model agreement.
``(b) Terms of Agreement.--
``(1) In general.--
``(A) Agreement.--An agreement under this section
shall require the manufacturer to provide applicable
beneficiaries access to discounted prices for
applicable drugs of the manufacturer that are dispensed
on or after January 1, 2024.
``(B) Provision of discounted prices at the point-
of-sale.--The discounted prices described in
subparagraph (A) shall be provided to the applicable
beneficiary at the pharmacy or by the mail order
service at the point-of-sale of an applicable drug.
``(C) Timing of agreement.--
``(i) Special rule for 2024.--In order for
an agreement with a manufacturer to be in
effect under this section with respect to the
period beginning on January 1, 2024, and ending
on December 31, 2024, the manufacturer shall
enter into such agreement not later than 30
days after the date of the establishment of a
model agreement under subsection (a).
``(ii) 2025 and subsequent years.--In order
for an agreement with a manufacturer to be in
effect under this section with respect to plan
year 2025 or a subsequent plan year, the
manufacturer shall enter into such agreement
(or such agreement shall be renewed under
paragraph (4)(A)) not later than January 30 of
the preceding year.
``(2) Provision of appropriate data.--Each manufacturer
with an agreement in effect under this section shall collect
and have available appropriate data, as determined by the
Secretary, to ensure that it can demonstrate to the Secretary
compliance with the requirements under the program.
``(3) Compliance with requirements for administration of
program.--Each manufacturer with an agreement in effect under
this section shall comply with requirements imposed by the
Secretary or a third party with a contract under subsection
(d)(3), as applicable, for purposes of administering the
program, including any determination under subparagraph (A) of
subsection (c)(1) or procedures established under such
subsection (c)(1).
``(4) Length of agreement.--
``(A) In general.--An agreement under this section
shall be effective for an initial period of not less
than 12 months and shall be automatically renewed for a
period of not less than 1 year unless terminated under
subparagraph (B).
``(B) Termination.--
``(i) By the secretary.--The Secretary may
provide for termination of an agreement under
this section for a knowing and willful
violation of the requirements of the agreement
or other good cause shown. Such termination
shall not be effective earlier than 30 days
after the date of notice to the manufacturer of
such termination. The Secretary shall provide,
upon request, a manufacturer with a hearing
concerning such a termination, and such hearing
shall take place prior to the effective date of
the termination with sufficient time for such
effective date to be repealed if the Secretary
determines appropriate.
``(ii) By a manufacturer.--A manufacturer
may terminate an agreement under this section
for any reason. Any such termination shall be
effective, with respect to a plan year--
``(I) if the termination occurs
before January 30 of a plan year, as of
the day after the end of the plan year;
and
``(II) if the termination occurs on
or after January 30 of a plan year, as
of the day after the end of the
succeeding plan year.
``(iii) Effectiveness of termination.--Any
termination under this subparagraph shall not
affect discounts for applicable drugs of the
manufacturer that are due under the agreement
before the effective date of its termination.
``(iv) Notice to third party.--The
Secretary shall provide notice of such
termination to a third party with a contract
under subsection (d)(3) within not less than 30
days before the effective date of such
termination.
``(c) Duties Described.--The duties described in this subsection
are the following:
``(1) Administration of program.--Administering the
program, including--
``(A) the determination of the amount of the
discounted price of an applicable drug of a
manufacturer;
``(B) the establishment of procedures under which
discounted prices are provided to applicable
beneficiaries at pharmacies or by mail order service at
the point-of-sale of an applicable drug;
``(C) the establishment of procedures to ensure
that, not later than the applicable number of calendar
days after the dispensing of an applicable drug by a
pharmacy or mail order service, the pharmacy or mail
order service is reimbursed for an amount equal to the
difference between--
``(i) the negotiated price of the
applicable drug; and
``(ii) the discounted price of the
applicable drug;
``(D) the establishment of procedures to ensure
that the discounted price for an applicable drug under
this section is applied before any coverage or
financial assistance under other health benefit plans
or programs that provide coverage or financial
assistance for the purchase or provision of
prescription drug coverage on behalf of applicable
beneficiaries as the Secretary may specify; and
``(E) providing a reasonable dispute resolution
mechanism to resolve disagreements between
manufacturers, applicable beneficiaries, and the third
party with a contract under subsection (d)(3).
``(2) Monitoring compliance.--
``(A) In general.--The Secretary shall monitor
compliance by a manufacturer with the terms of an
agreement under this section.
``(B) Notification.--If a third party with a
contract under subsection (d)(3) determines that the
manufacturer is not in compliance with such agreement,
the third party shall notify the Secretary of such
noncompliance for appropriate enforcement under
subsection (e).
``(3) Collection of data from prescription drug plans and
ma-pd plans.--The Secretary may collect appropriate data from
prescription drug plans and MA-PD plans in a timeframe that
allows for discounted prices to be provided for applicable
drugs under this section.
``(d) Administration.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall provide for the implementation of this section, including
the performance of the duties described in subsection (c).
``(2) Limitation.--In providing for the implementation of
this section, the Secretary shall not receive or distribute any
funds of a manufacturer under the program.
``(3) Contract with third parties.--The Secretary shall
enter into a contract with 1 or more third parties to
administer the requirements established by the Secretary in
order to carry out this section. At a minimum, the contract
with a third party under the preceding sentence shall require
that the third party--
``(A) receive and transmit information between the
Secretary, manufacturers, and other individuals or
entities the Secretary determines appropriate;
``(B) receive, distribute, or facilitate the
distribution of funds of manufacturers to appropriate
individuals or entities in order to meet the
obligations of manufacturers under agreements under
this section;
``(C) provide adequate and timely information to
manufacturers, consistent with the agreement with the
manufacturer under this section, as necessary for the
manufacturer to fulfill its obligations under this
section; and
``(D) permit manufacturers to conduct periodic
audits, directly or through contracts, of the data and
information used by the third party to determine
discounts for applicable drugs of the manufacturer
under the program.
``(4) Performance requirements.--The Secretary shall
establish performance requirements for a third party with a
contract under paragraph (3) and safeguards to protect the
independence and integrity of the activities carried out by the
third party under the program under this section.
``(5) Implementation.--The Secretary may implement the
program under this section by program instruction or otherwise.
``(6) Administration.--Chapter 35 of title 44, United
States Code, shall not apply to the program under this section.
``(e) Enforcement.--
``(1) Audits.--Each manufacturer with an agreement in
effect under this section shall be subject to periodic audit by
the Secretary.
``(2) Civil money penalty.--
``(A) In general.--The Secretary may impose a civil
money penalty on a manufacturer that fails to provide
applicable beneficiaries discounts for applicable drugs
of the manufacturer in accordance with such agreement
for each such failure in an amount the Secretary
determines is equal to the sum of--
``(i) the amount that the manufacturer
would have paid with respect to such discounts
under the agreement, which will then be used to
pay the discounts which the manufacturer had
failed to provide; and
``(ii) 25 percent of such amount.
``(B) Application.--The provisions of section 1128A
(other than subsections (a) and (b)) shall apply to a
civil money penalty under this paragraph in the same
manner as such provisions apply to a penalty or
proceeding under section 1128A(a).
``(f) Clarification Regarding Availability of Other Covered Part D
Drugs.--Nothing in this section shall prevent an applicable beneficiary
from purchasing a covered part D drug that is not an applicable drug
(including a generic drug or a drug that is not on the formulary of the
prescription drug plan or MA-PD plan that the applicable beneficiary is
enrolled in).
``(g) Definitions.--In this section:
``(1) Applicable beneficiary.--The term `applicable
beneficiary' means an individual who, on the date of dispensing
a covered part D drug--
``(A) is enrolled in a prescription drug plan or an
MA-PD plan;
``(B) is not enrolled in a qualified retiree
prescription drug plan; and
``(C) has incurred costs, as determined in
accordance with section 1860D-2(b)(4)(C), for covered
part D drugs in the year that exceed the annual
deductible with respect to such individual for such
year, as specified in section 1860D-2(b)(1), section
1860D-14(a)(1)(B), or section 1860D-14(a)(2)(B), as
applicable.
``(2) Applicable drug.--The term `applicable drug', with
respect to an applicable beneficiary--
``(A) means a covered part D drug--
``(i) approved under a new drug application
under section 505(c) of the Federal Food, Drug,
and Cosmetic Act or, in the case of a biologic
product, licensed under section 351 of the
Public Health Service Act; and
``(ii)(I) if the PDP sponsor of the
prescription drug plan or the MA organization
offering the MA-PD plan uses a formulary, which
is on the formulary of the prescription drug
plan or MA-PD plan that the applicable
beneficiary is enrolled in;
``(II) if the PDP sponsor of the
prescription drug plan or the MA organization
offering the MA-PD plan does not use a
formulary, for which benefits are available
under the prescription drug plan or MA-PD plan
that the applicable beneficiary is enrolled in;
or
``(III) is provided through an exception or
appeal; and
``(B) does not include a selected drug (as defined
in section 1192(c)) during a price applicability period
(as defined in section 1191(b)(2)) with respect to such
drug.
``(3) Applicable number of calendar days.--The term
`applicable number of calendar days' means--
``(A) with respect to claims for reimbursement
submitted electronically, 14 days; and
``(B) with respect to claims for reimbursement
submitted otherwise, 30 days.
``(4) Discounted price.--
``(A) In general.--The term `discounted price'
means, with respect to an applicable drug of a
manufacturer dispensed during a year to an applicable
beneficiary--
``(i) who has not incurred costs, as
determined in accordance with section 1860D-
2(b)(4)(C), for covered part D drugs in the
year that are equal to or exceed the annual
out-of-pocket threshold specified in section
1860D-2(b)(4)(B)(i) for the year, 90 percent of
the negotiated price of such drug; and
``(ii) who has incurred such costs, as so
determined, in the year that are equal to or
exceed such threshold for the year, 70 percent
of the negotiated price of such drug.
``(B) Clarification.--Nothing in this section shall
be construed as affecting the responsibility of an
applicable beneficiary for payment of a dispensing fee
for an applicable drug.
``(C) Special case for certain claims.--
``(i) Claims spanning deductible.--In the
case where the entire amount of the negotiated
price of an individual claim for an applicable
drug with respect to an applicable beneficiary
does not fall above the annual deductible
specified in section 1860D-2(b)(1) for the
year, the manufacturer of the applicable drug
shall provide the discounted price under this
section on only the portion of the negotiated
price of the applicable drug that falls above
such annual deductible.
``(ii) Claims spanning out-of-pocket
threshold.--In the case where the entire amount
of the negotiated price of an individual claim
for an applicable drug with respect to an
applicable beneficiary does not fall entirely
below or entirely above the annual out-of-
pocket threshold specified in section 1860D-
2(b)(4)(B)(i) for the year, the manufacturer of
the applicable drug shall provide the
discounted price--
``(I) in accordance with
subparagraph (A)(i) on the portion of
the negotiated price of the applicable
drug that falls below such threshold;
and
``(II) in accordance with
subparagraph (A)(ii) on the portion of
such price of such drug that falls at
or above such threshold.
``(5) Manufacturer.--The term `manufacturer' means any
entity which is engaged in the production, preparation,
propagation, compounding, conversion, or processing of
prescription drug products, either directly or indirectly by
extraction from substances of natural origin, or independently
by means of chemical synthesis, or by a combination of
extraction and chemical synthesis. Such term does not include a
wholesale distributor of drugs or a retail pharmacy licensed
under State law.
``(6) Negotiated price.--The term `negotiated price' has
the meaning given such term in section 423.100 of title 42,
Code of Federal Regulations (or any successor regulation),
except that, with respect to an applicable drug, such
negotiated price shall not include any dispensing fee for the
applicable drug.
``(7) Qualified retiree prescription drug plan.--The term
`qualified retiree prescription drug plan' has the meaning
given such term in section 1860D-22(a)(2).''.
(2) Sunset of medicare coverage gap discount program.--
Section 1860D-14A of the Social Security Act (42 U.S.C. 1395-
114a) is amended--
(A) in subsection (a), in the first sentence, by
striking ``The Secretary'' and inserting ``Subject to
subsection (h), the Secretary''; and
(B) by adding at the end the following new
subsection:
``(h) Sunset of Program.--
``(1) In general.--The program shall not apply with respect
to applicable drugs dispensed on or after January 1, 2024, and,
subject to paragraph (2), agreements under this section shall
be terminated as of such date.
``(2) Continued application for applicable drugs dispensed
prior to sunset.--The provisions of this section (including all
responsibilities and duties) shall continue to apply after
January 1, 2024, with respect to applicable drugs dispensed
prior to such date.''.
(3) Inclusion of actuarial value of manufacturer discounts
in bids.--Section 1860D-11 of the Social Security Act (42
U.S.C. 1395w-111) is amended--
(A) in subsection (b)(2)(C)(iii)--
(i) by striking ``assumptions regarding the
reinsurance'' and inserting ``assumptions
regarding--
``(I) the reinsurance''; and
(ii) by adding at the end the following:
``(II) for 2024 and each subsequent
year, the manufacturer discounts
provided under section 1860D-14C
subtracted from the actuarial value to
produce such bid; and''; and
(B) in subsection (c)(1)(C)--
(i) by striking ``an actuarial valuation of
the reinsurance'' and inserting ``an actuarial
valuation of--
``(i) the reinsurance'';
(ii) in clause (i), as inserted by clause
(i) of this subparagraph, by adding ``and'' at
the end; and
(iii) by adding at the end the following:
``(ii) for 2024 and each subsequent year,
the manufacturer discounts provided under
section 1860D-14C;''.
(d) Conforming Amendments.--
(1) Section 1860D-2 of the Social Security Act (42 U.S.C.
1395w-102) is amended--
(A) in subsection (a)(2)(A)(i)(I), by striking ``,
or an increase in the initial'' and inserting ``or, for
a year preceding 2024, an increase in the initial'';
(B) in subsection (c)(1)(C)--
(i) in the subparagraph heading, by
striking ``at initial coverage limit''; and
(ii) by inserting ``for a year preceding
2024 or the annual out-of-pocket threshold
specified in subsection (b)(4)(B) for the year
for 2024 and each subsequent year'' after
``subsection (b)(3) for the year'' each place
it appears; and
(C) in subsection (d)(1)(A), by striking ``or an
initial'' and inserting ``or, for a year preceding
2024, an initial''.
(2) Section 1860D-4(a)(4)(B)(i) of the Social Security Act
(42 U.S.C. 1395w-104(a)(4)(B)(i)) is amended by striking ``the
initial'' and inserting ``for a year preceding 2024, the
initial''.
(3) Section 1860D-14(a) of the Social Security Act (42
U.S.C. 1395w-114(a)) is amended--
(A) in paragraph (1)--
(i) in subparagraph (C), by striking ``The
continuation'' and inserting ``For a year
preceding 2024, the continuation'';
(ii) in subparagraph (D)(iii), by striking
``1860D-2(b)(4)(A)(i)(I)'' and inserting
``1860D-2(b)(4)(A)(i)(I)(aa)''; and
(iii) in subparagraph (E), by striking
``The elimination'' and inserting ``For a year
preceding 2024, the elimination''; and
(B) in paragraph (2)--
(i) in subparagraph (C), by striking ``The
continuation'' and inserting ``For a year
preceding 2024, the continuation''; and
(ii) in subparagraph (E), by striking
``1860D-2(b)(4)(A)(i)(I)'' and inserting
``1860D-2(b)(4)(A)(i)(I)(aa)''.
(4) Section 1860D-21(d)(7) of the Social Security Act (42
U.S.C. 1395w-131(d)(7)) is amended by striking ``section 1860D-
2(b)(4)(B)(i)'' and inserting ``section 1860D-2(b)(4)(C)(i)''.
(5) Section 1860D-22(a)(2)(A) of the Social Security Act
(42 U.S.C. 1395w-132(a)(2)(A)) is amended--
(A) by striking ``the value of any discount'' and
inserting the following: ``the value of--
``(i) for years prior to 2024, any
discount'';
(B) in clause (i), as inserted by subparagraph (A)
of this paragraph, by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following new clause:
``(ii) for 2024 and each subsequent year,
any discount provided pursuant to section
1860D-14C.''.
(6) Section 1860D-41(a)(6) of the Social Security Act (42
U.S.C. 1395w-151(a)(6)) is amended--
(A) by inserting ``for a year before 2024'' after
``1860D-2(b)(3)''; and
(B) by inserting ``for such year'' before the
period.
(7) Section 1860D-43 of the Social Security Act (42 U.S.C.
1395w-153) is amended--
(A) in subsection (a)--
(i) by striking paragraph (1) and inserting
the following:
``(1) participate in--
``(A) for 2011 through 2023, the Medicare coverage
gap discount program under section 1860D-14A; and
``(B) for 2024 and each subsequent year, the
manufacturer discount program under section 1860D-
14C;'';
(ii) by striking paragraph (2) and
inserting the following:
``(2) have entered into and have in effect--
``(A) for 2011 through 2023, an agreement described
in subsection (b) of section 1860D-14A with the
Secretary; and
``(B) for 2024 and each subsequent year, an
agreement described in subsection (b) of section 1860D-
14C with the Secretary; and''; and
(iii) by striking paragraph (3) and
inserting the following:
``(3) have entered into and have in effect, under terms and
conditions specified by the Secretary--
``(A) for 2011 through 2023, a contract with a
third party that the Secretary has entered into a
contract with under subsection (d)(3) of section 1860D-
14A; and
``(B) for 2024 and each subsequent year, a contract
with a third party that the Secretary has entered into
a contract with under subsection (d)(3) of section
1860D-14C.''; and
(B) by striking subsection (b) and inserting the
following:
``(b) Effective Date.--Paragraphs (1)(A), (2)(A), and (3)(A) of
subsection (a) shall apply to covered part D drugs dispensed under this
part on or after January 1, 2011, and before January 1, 2024, and
paragraphs (1)(B), (2)(B), and (3)(B) of such subsection shall apply to
covered part D drugs dispensed under this part on or after January 1,
2024.''.
(8) Section 1927 of the Social Security Act (42 U.S.C.
1396r-8) is amended--
(A) in subsection (c)(1)(C)(i)(VI), by inserting
before the period at the end the following: ``or under
the manufacturer discount program under section 1860D-
14C''; and
(B) in subsection (k)(1)(B)(i)(V), by inserting
before the period at the end the following: ``or under
section 1860D-14C''.
(e) Effective Date.--The amendments made by this section shall
apply with respect to plan year 2024 and subsequent plan years.
SEC. 139202. ALLOWING CERTAIN ENROLLEES OF PRESCRIPTION DRUG PLANS AND
MA-PD PLANS UNDER MEDICARE PROGRAM TO SPREAD OUT COST-
SHARING UNDER CERTAIN CIRCUMSTANCES.
Section 1860D-2(b)(2) of the Social Security Act (42 U.S.C. 1395w-
102(b)(2)), as amended by section 139201, is further amended--
(1) in subparagraph (A), by striking ``Subject to
subparagraphs (C) and (D)'' and inserting ``Subject to
subparagraphs (C), (D), and (E)''; and
(2) by adding at the end the following new subparagraph:
``(E) Enrollee option regarding spreading cost-
sharing.--The Secretary shall establish by regulation a
process under which, with respect to plan year 2024 and
subsequent plan years, a prescription drug plan or an
MA-PD plan shall, in the case of a part D eligible
individual enrolled with such plan for such plan year
who is not a subsidy eligible individual (as defined in
section 1860D-14(a)(3)) and with respect to whom the
plan projects that the dispensing of the first fill of
a covered part D drug to such individual will result in
the individual incurring costs that are equal to or
above the annual out-of-pocket threshold specified in
paragraph (4)(B) for such plan year, provide such
individual with the option to make the coinsurance
payment required under subparagraph (A) (for the
portion of such costs that are not above such annual
out-of-pocket threshold) in the form of periodic
installments over the remainder of such plan year.''.
PART 4--REPEAL OF CERTAIN PRESCRIPTION DRUG REBATE RULE
SEC. 139301. PROHIBITING IMPLEMENTATION OF RULE RELATING TO ELIMINATING
THE ANTI-KICKBACK STATUTE SAFE HARBOR PROTECTION FOR
PRESCRIPTION DRUG REBATES.
Beginning January 1, 2026, the Secretary of Health and Human
Services shall not implement, administer, or enforce the provisions of
the final rule published by the Office of the Inspector General of the
Department of Health and Human Services on November 30, 2020, and
titled ``Fraud and Abuse; Removal of Safe Harbor Protection for Rebates
Involving Prescription Pharmaceuticals and Creation of New Safe Harbor
Protection for Certain Point-of-Sale Reductions in Price on
Prescription Pharmaceuticals and Certain Pharmacy Benefit Manager
Service Fees'' (85 Fed. Reg. 76666).
Union Calendar No. 94
117th CONGRESS
1st Session
H. R. 5376
[Report No. 117-130]
_______________________________________________________________________
A BILL
To provide for reconciliation pursuant to title II of S. Con. Res. 14.
_______________________________________________________________________
September 27, 2021
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed