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Calendar No. 520
114th Congress } { Report
SENATE
2d Session } { 114-280
======================================================================
FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2017
_______
June 16, 2016.--Ordered to be printed
_______
Mr. Boozman of Arkansas, from the Committee on Appropriations,
submitted the following
REPORT
[To accompany S. 3067]
The Committee on Appropriations reports an original bill
(S. 3067) making appropriations for financial services and
general government for the fiscal year ending September 30,
2017, and for other purposes, reports favorably thereon without
amendment and recommends that the bill do pass.
Amounts of new budget (obligational) authority for fiscal year 2017
Total of bill as reported to the Senate................. $44,361,260,000
Amount of 2016 appropriations........................... 44,830,934,000
Amount of 2017 budget estimate.......................... 46,542,785,000
Bill as recommended to Senate compared to--
2016 appropriations................................. -469,674,000
2017 budget estimate................................ -2,181,525,000
CONTENTS
----------
Page
Overview and Summary of the Bill................................. 5
Program, Project, and Activity................................... 5
Reprogramming Guidelines......................................... 5
Relationship With Budget Offices................................. 6
Congressional Budget Justifications.............................. 7
Agency Reports................................................... 7
Antideficiency Act Violations.................................... 8
Other Matters and Directives..................................... 8
Title I: Department of the Treasury:
Departmental Offices......................................... 10
Cybersecurity Enhancement Account............................ 14
Department-wide Systems and Capital Investments Programs......... 15
Office of Inspector General...................................... 15
Treasury Inspector General for Tax Administration................ 17
Special Inspector General for the Troubled Asset Relief Program.. 19
Financial Crimes Enforcement Network......................... 19
Treasury Forfeiture Fund..................................... 21
Bureau of the Fiscal Service................................. 21
Alcohol and Tobacco Tax and Trade Bureau..................... 22
Treasury Franchise Fund...................................... 23
United States Mint........................................... 23
Community Development Financial Institutions Fund............ 24
Bureau of Engraving and Printing............................. 26
Internal Revenue Service..................................... 27
Taxpayer Services........................................ 30
Enforcement.............................................. 35
Operations Support....................................... 39
Business Systems Modernization........................... 40
Administrative Provisions--Internal Revenue Service...... 41
Administrative Provisions--Department of the Treasury........ 42
Title II: Executive Office of the President and Funds
Appropriated to the President:
The White House.............................................. 44
Executive Residence at the White House....................... 45
White House Repair and Restoration........................... 45
Council of Economic Advisers................................. 45
National Security Council and Homeland Security Council...... 46
Office of Administration..................................... 46
Office of Management and Budget.............................. 47
Office of National Drug Control Policy....................... 49
Federal Drug Control Programs:
High Intensity Drug Trafficking Areas Program............ 50
Other Federal Drug Control Programs...................... 51
Unanticipated Needs.......................................... 52
Presidential Transition Administrative Support............... 52
Information Technology Oversight and Reform.................. 52
Special Assistance to the President.......................... 54
Official Residence of the Vice President..................... 54
Administrative Provisions--Executive Office of the President
and Funds Appropriated to the President.................... 55
Title III: The Judiciary:
Supreme Court of the United States........................... 56
Care of the Building and Grounds......................... 57
United States Court of Appeals for the Federal Circuit....... 57
United States Court of International Trade................... 58
Courts of Appeals, District Courts, and Other Judicial
Services................................................... 58
Vaccine Injury Compensation Trust Fund................... 59
Defender Services........................................ 59
Fees of Jurors and Commissioners......................... 60
Court Security........................................... 60
Administrative Office of the United States Courts............ 61
Federal Judicial Center...................................... 62
United States Sentencing Commission.......................... 62
Administrative Provisions--The Judiciary..................... 63
Title IV--District of Columbia:
Federal Payments:
Federal Funds............................................ 64
Federal Payment for Resident Tuition Support............. 64
Federal Payment for Emergency Planning and Security Costs
in the District of Columbia............................ 65
Federal Payment to the District of Columbia Courts....... 66
Federal Payment for Defender Services in District of
Columbia Courts........................................ 67
Federal Payment to the Court Services and Offender
Supervision Agency for the District of Columbia........ 67
Federal Payment to the Public Defender Service for the
District of Columbia................................... 68
Federal Payment to the District of Columbia Water and
Sewer Authority........................................ 69
Federal Payment to the Criminal Justice Coordinating
Council................................................ 69
Federal Payment for Judicial Commissions................. 70
Federal Payment for School Improvement................... 70
Federal Payment for the D.C. National Guard.............. 71
Federal Payment for HIV/AIDS Prevention.................. 71
Federal Payment for Federal City Shelter................. 71
District of Columbia Funds................................... 72
Title V--Independent Agencies:
Administrative Conference of the United States............... 74
Commodity Futures Trading Commission......................... 74
Consumer Product Safety Commission........................... 76
Election Assistance Commission............................... 77
Federal Communications Commission............................ 78
Federal Deposit Insurance Corporation: Office of the
Inspector General.......................................... 82
Federal Election Commission.................................. 82
Federal Labor Relations Authority............................ 82
Federal Trade Commission..................................... 83
General Services Administration.............................. 84
Harry S Truman Scholarship Foundation........................ 91
Merit Systems Protection Board............................... 91
Morris K. Udall and Stewart L. Udall Foundation.............. 92
National Archives and Records Administration................. 93
National Credit Union Administration......................... 97
Office of Government Ethics.................................. 98
Office of Personnel Management............................... 98
Office of Special Counsel.................................... 102
Postal Regulatory Commission................................. 103
Privacy and Civil Liberties Oversight Board.................. 103
Securities and Exchange Commission........................... 104
Selective Service System..................................... 105
Small Business Administration................................ 106
United States Postal Service................................. 114
United States Tax Court...................................... 115
Statement Concerning General Provisions.......................... 116
Title VI--General Provisions--This Act........................... 117
Title VII--General Provisions--Governmentwide.................... 120
Title VIII--General Provisions--District of Columbia............. 124
Compliance With Paragraph 7, Rule XVI of the Standing Rules of
the
Senate......................................................... 126
Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules
of the Senate.................................................. 127
Compliance With Paragraph 12, Rule XXVI of the Standing Rules of
the Senate..................................................... 128
Budgetary Impact of Bill......................................... 136
Comparative Statement of New Budget Authority.................... 137
OVERVIEW AND SUMMARY OF THE BILL
The Financial Services and General Government
appropriations bill provides funding for the Department of the
Treasury, including the Internal Revenue Service; the Executive
Office of the President; the Judiciary; the District of
Columbia; and more than two dozen independent Federal agencies.
The Committee recommends $44,361,260,000 in discretionary
and mandatory appropriations. This represents a decrease of
$469,674,000 below the fiscal year 2016 enacted level, and a
decrease of $2,181,525,000 below the budget request. Of the
total, $22,551,810,000 is provided in discretionary
appropriations, including $158,829,000 for the Small Business
Administration Disaster Loans Program Account designated by
Congress as disaster relief pursuant to Public Law 112-25. This
discretionary amount is $2,205,525,000 below the budget request
of $24,757,335,000. Mandatory appropriations less scorekeeping
adjustments total $21,809,450,000.
PROGRAM, PROJECT, AND ACTIVITY
During fiscal year 2017, for the purposes of the Balanced
Budget and Emergency Deficit Control Act of 1985 (Public Law
99-177), as amended, with respect to appropriations contained
in the accompanying bill, the terms ``program, project, and
activity'' [PPA] shall mean any item for which a dollar amount
is contained in appropriations acts (including joint
resolutions providing continuing appropriations) or
accompanying reports of the House and Senate Committees on
Appropriations, or accompanying conference reports and joint
explanatory statements of the committee of conference.
REPROGRAMMING GUIDELINES
The Committee includes a provision (section 608)
establishing the authority of agencies to reprogram funds and
the limitation on that authority. The provision specifically
requires the advance approval of the House and Senate
Committees on Appropriations of any proposal to reprogram funds
that: (1) creates a new program; (2) eliminates a program,
project, or activity [PPA]; (3) increases funds or personnel
for any PPA for which funds have been denied or restricted by
the Congress; (4) proposes to redirect funds that were directed
in such reports for a specific activity to a different purpose;
(5) augments an existing PPA in excess of $5,000,000 or 10
percent, whichever is less; (6) reduces an existing PPA by
$5,000,000 or 10 percent, whichever is less; or (7) creates,
reorganizes, or restructures offices differently than the
congressional budget justifications or the table at the end of
the Committee report, whichever is more detailed.
The Committee retains the requirement that each agency
submit an operating plan to the House and Senate Committees on
Appropriations not later than 60 days after enactment of this
act to establish the baseline for application of reprogramming
and transfer authorities provided in this act. Specifically,
each agency should provide a table for each appropriation with
columns displaying the budget request; adjustments made by
Congress; adjustments for rescissions, if appropriate; and the
fiscal year enacted level. The table shall delineate the
appropriation both by object class and by PPA. The report must
also identify items of special congressional interest.
The Committee expects the agencies and bureaus to submit
reprogramming requests in a timely manner and to provide a
thorough explanation of the proposed reallocations, including a
detailed justification of increases and reductions and the
specific impact the proposed changes will have on the budget
request for the following fiscal year. Except in emergency
situations, reprogramming requests should be submitted no later
than June 30.
The Committee expects each agency to manage its programs
and activities within the amounts appropriated by Congress. The
Committee reminds agencies that reprogramming requests should
be submitted only in the case of an unforeseeable emergency or
a situation that could not have been anticipated when
formulating the budget request for the current fiscal year.
Further, the Committee notes that when a Department or agency
submits a reprogramming or transfer request to the Committees
on Appropriations and does not receive identical responses from
the House and the Senate, it is the responsibility of the
Department or agency to reconcile the House and the Senate
differences before proceeding, and if reconciliation is not
possible, to consider the request to reprogram funds
unapproved.
RELATIONSHIP WITH BUDGET OFFICES
Through the years, the Committee has channeled most of its
inquiries and requests for information and assistance through
the budget offices of the various departments, agencies,
offices, and commissions. The Committee has often pointed to
the natural affinity and relationship between the budget
offices and the Committee which makes such a relationship
workable. The Committee reiterates its longstanding position
that while the Committee reserves the right to call upon any
office or officer in the departments, agencies, and
commissions, the primary conjunction between the Committee and
these entities must be through the budget offices. To help
ensure the Committee's ability to perform its responsibilities,
the Committee insists on having direct, unobstructed, and
timely access to the budget offices and expects to be able to
receive forthright and complete responses from those offices
and their employees.
The Committee expects timely agency compliance with
mandated reporting requirements. The Committee directs all
agencies from which reports are required to allow sufficient
time to secure any necessary internal and external clearances
of reports in order to satisfy congressional deadlines. The
Committee strongly urges agencies to alert the Committee as far
as possible in advance of any expected slippage in meeting a
report delivery due date.
CONGRESSIONAL BUDGET JUSTIFICATIONS
Budget justifications are prepared not for the use of the
agency, but instead are the primary tool used by the House and
Senate Committees on Appropriations to evaluate the resource
requirements and fiscal needs of agencies. The Committee is
aware that the format and presentation of budget materials is
largely left to the agency within presentation objectives set
forth by OMB. However, the Committee expects agencies to
consult with the Committees on Appropriations in advance
regarding any plans to modify the format of agency budget
documents to ensure that the data needed to make appropriate
and meaningful funding decisions is provided.
The Committee directs that justifications submitted with
the fiscal year 2018 budget requests by agencies funded under
this act must contain the customary level of detailed data and
explanatory statements to support the appropriations requests
at the level of detail contained in the funding table included
at the end of the report. Among other items, agencies shall
provide a detailed discussion of proposed new initiatives,
proposed changes in the agency's financial plan from prior year
enactment, and detailed data on all programs and comprehensive
information on any office or agency restructurings. At a
minimum, each agency must also provide adequate justification
for funding and staffing changes for each individual office.
Explanatory materials should compare programs, projects, and
activities that are proposed for fiscal year 2018 to the fiscal
year 2017 enacted level.
The Committee includes a general provision requiring that
agencies provide, as a component incorporated within their
fiscal year 2018 budget justification materials submitted to
the Committee, a separate table briefly describing the top
management challenges for fiscal year 2017 as identified by the
agency inspector general, along with an explanation of how the
fiscal year 2018 budget request addresses each such management
challenge.
The Committee is aware that the analytical materials
required for review by the Committee are unique to each agency
in this act. Therefore, the Committee expects that each agency
will coordinate with the House and Senate Committees on
Appropriations in advance on its planned presentation for its
budget justification materials in support of the fiscal year
2018 budget request.
AGENCY REPORTS
As a measure to reduce costs and conserve paper, the
Committee reminds agencies funded by this act that currently
provide separate copies of periodic reports (such as
Performance and Accountability Reports) and correspondence to
the chairs of the House and Senate Appropriations Committees
and Subcommittees on Financial Services and General Government,
and also to the ranking members of the committees and
subcommittees, to use a single cover letter jointly addressed
to the chairs and ranking members of the Committee and
subcommittee of both the House and the Senate. To the greatest
extent feasible, agencies should include in the cover letter a
reference or hyperlink to facilitate electronic access to the
report and provide the documents by electronic mail delivery.
Consolidating addressees and remitting a copy of the letter and
attachments to each recipient should expedite agency
processing. This should also help ensure that consistent
information is conveyed concurrently to the majority and
minority committee offices of both chambers of Congress.
ANTIDEFICIENCY ACT VIOLATIONS
The Antideficiency Act is a cornerstone of Federal fiscal
law. It forbids agencies from exceeding an appropriation,
apportionment, or allotment; from obligating funds before
Congress has appropriated them; and from accepting voluntary
services or employing personal services exceeding that
authorized by law. These prohibitions ensure that agencies
operate within amounts that Congress has appropriated and,
therefore, that agency activities are carried out in accordance
with the will of the people as expressed through Congress.
The Antideficiency Act requires agencies to immediately
report violations of the act to Congress and to the President
and to transmit a copy of each report to the Comptroller
General. These reports must include all relevant facts
pertaining to the violation and a statement of action taken.
These reports provide information essential to the Committee as
it performs oversight and as it considers agency funding
levels. Therefore, the Committee directs any agency funded by
this Act to concurrently transmit to the Subcommittee on
Financial Services and General Government a copy of any
Antideficiency Act violation report submitted pursuant to 31
U.S.C. 1351 or 31 U.S.C. 1517(b).
OTHER MATTERS AND DIRECTIVES
Cybersecurity.--Cybersecurity remains one of the most
significant challenges facing the Nation. Recent events have
demonstrated that the Federal Government faces an array of
cyber-based threats to its systems and data and the results
have proven disastrous to millions of Americans. The Committee
remains concerned that billions of Federal dollars are spent
each fiscal year yet there is no guarantee of security for
Americans. The Committee stresses the importance of the role of
the Federal CIO in protecting Federal assets and information
and strengthening the Federal Government's overall
cybersecurity infrastructure. The Committee is committed to
conducting oversight of agencies within its jurisdiction to
ensure that funding is being spent wisely and effectively while
ensuring that stronger cyber controls are in place. The
Committee encourages the Administration and agencies to enhance
their cyber strategies and allocate resources accordingly to
combat cybercrime and data breaches.
Contracts and Awards.--Agencies funded by this act should
require that all contracts within their purview that provide
award fees link such fees to successful acquisition outcomes,
specifying the terms of cost, schedule, and performance.
Agencies funded by this act should not pay awards or incentive
fees for contractor performance that has been judged to be
below satisfactory performance or performance that does not
meet the basic requirements of a contract.
Advertising Transparency.--The Committee is aware that
agencies funded through this bill do a variety of different
types of advertising. The Committee directs the agencies to
clearly state within the text, audio, or video used for
advertising or education purposes, including emails or
advertising/posting on the Internet, that the communications
are printed, published or produced and disseminated at U.S.
taxpayer expense.
TITLE I
DEPARTMENT OF THE TREASURY
Departmental Offices
salaries and expenses
Appropriations, 2016.................................... $222,500,000
Budget estimate, 2017................................... 334,376,000
Committee recommendation................................ 347,376,000
PROGRAM DESCRIPTION
The Secretary of the Treasury has the primary role in
formulating and managing the domestic and international tax and
financial policies of the Federal Government. The Secretary's
responsibilities funded by the Departmental Offices Salaries
and Expenses appropriation include: recommending and
implementing U.S. domestic and international economic and tax
policy; formulating fiscal policy; governing the fiscal
operations of the Government; executing the Nation's financial
sanction policies; disrupting and dismantling terrorist
financial infrastructure; protecting the United States and the
international financial system from terrorist financing, money
laundering, and other financial crimes; managing the public
debt; managing international development policy; representing
the United States on international monetary, trade, and
investment issues; overseeing Department of the Treasury
overseas operations; and directing the administrative
operations of the Department of the Treasury. The majority of
the Salaries and Expenses appropriation provides resources for
policy formulation and implementation in the areas of domestic
and international finance, terrorist financing and financial
crimes, tax, economic, trade, financial operations and general
fiscal policy. This appropriation also provides resources to
support the Secretary, policy components, and departmental
administrative policies in financial and personnel management,
procurement operations, and information systems and
telecommunications.
COMMITTEE RECOMMENDATION
The Committee recommends $347,376,000 for the Departmental
Offices account of the Department of the Treasury for fiscal
year 2017. The funding recommendations are made based on
information included in the budget justification.
The Committee recommends $123,000,000 within the
Departmental Offices account for the Office of Terrorism and
Financial Intelligence in order to support safeguarding
financial systems against illicit use and combating rogue
nations, terrorist facilitators, money launderers,
proliferators of weapons of mass destruction, and other
national security threats.
Student Debt.--The Committee notes that there is nearly
$1,200,000,000,000 in outstanding student loan debt, of which
$150,000,000,000 is in private student loans. More than 850,000
students have defaulted on private student loans worth more
than $8,100,000,000. The Committee commends the Federal bank
regulators for efforts to encourage financial institutions to
work constructively with private student loan borrowers
experiencing financial difficulties and encourages Treasury to
work with the Federal Deposit Insurance Corporation, the Office
of the Comptroller of the Currency, the National Credit Union
Administration, and the Federal Reserve to offer clear guidance
that protects taxpayers and is consistent with safety and
soundness principles recognizing the unique characteristics of
private student loans compared to other debt and providing
flexibility to lenders working with borrowers to avoid default.
Office of Financial Education.--The Committee is concerned
about the low level of financial literacy and numeracy skills
among the adult population of the United States, as one in
seven adults do not have the basic financial literacy skills to
succeed in all but the most rudimentary financial literacy
tasks. The Committee encourages the Department to explore the
degree to which current Federal financial literacy programs
benefit those individuals with less than basic literacy skills
and to develop measurable goals and objectives for the
Financial Literacy and Education Commission that address the
needs of this population. Finally, the Committee urges the
Department to explore opportunities to work with rural
community-based adult and family literacy organizations to
promote and implement future financial literacy initiatives.
Wildlife Trafficking.--The Committee notes the recent
increase of illegal trade in rhinoceros horns, elephant ivory,
and illegally harvested timber, along with the large sums of
money that these products command on the black market. There
are indisputable linkages between these activities and the
financing of armed insurgencies and groups that threaten the
stability and development of African countries and pose a
threat to U.S. security interests. The Committee directs the
Department to use available resources to pursue and enforce
money laundering and other related laws as related to wildlife
trafficking and the illegal ivory trade. The Department shall
report to the Committee semiannually during fiscal year 2017 on
such enforcement actions and other steps taken to carry out the
Implementation Plan of the National Strategy on Wildlife
Trafficking during this fiscal year.
Ivory Poaching.--Militias, armed groups, insurgents, and
even terrorist groups are using profits from illegal ivory
poaching and trafficking to further violence in Africa and
elsewhere. Often the sales are to China and involve organized
crime, shell companies, and arms traffickers. Accordingly, the
Committee directs the Department of the Treasury to use
available resources to pursue and enforce money laundering and
other related laws as related to the illegal ivory trade,
particularly in Africa. The Department shall report to the
Committee every 6 months during the fiscal year on such
enforcement actions taken during the fiscal year.
Agricultural Exports.--The Committee notes that expanding
export opportunities for U.S. agricultural producers remain a
critical opportunity for economic growth. U.S. agricultural
sales restrictions to Cuba have prevented U.S. producers from
unlocking their full market potential in Cuba. The Committee
directs the Department of the Treasury to coordinate with the
Department of Commerce and the Department of Agriculture to
conduct an assessment of the impact that recent policy and
regulatory changes to ease trade restrictions with Cuba have
had on the U.S. agricultural industry and the extent to which
remaining prohibitions on U.S. private financing or credit for
sales of U.S. agricultural commodities negatively affects small
U.S. exporters and farmers. The Department should report its
findings to the Committee no later than 120 days after
enactment.
Economic Sanctions and Divestments.--The Committee
recommendation includes resources for Terrorism and Financial
Intelligence programs. With these funds, the Department will
continue to implement and enforce economic and trade sanctions
consistent with national security and foreign policy goals.
These sanctions are a key tool for asserting U.S. policy toward
countries and entities under sanction. The Committee directs
the Department to fully implement all sanctions and divestment
measures, particularly those applicable to those supporting WMD
proliferation, terrorism, transnational organized crime, the
Islamic State of Iraq and the Levant, Russia, Belarus, North
Korea, Iran, Sudan, Syria, Venezuela, Zimbabwe and designated
rebel groups operating in and around the Democratic Republic of
Congo. The Committee directs the Department to promptly notify
the Committee of any resource constraints that adversely impact
the implementation of any sanctions program.
Iran Sanctions.--The Committee directs the Treasury
Department to conduct a full review of all sanction designation
removals related to Iran during the past 2 years and report to
the Committee in writing for each such removal whether the
entity has engaged in any prohibited activities since the
removal of sanctions. If Treasury determines an entity has
engaged in any activities for which it should be sanctioned,
Treasury shall either sanction the entity or provide a written
justification for why sanctions have not been imposed.
The Committee is deeply concerned that the number of new
sanctions designations related to Iran's non-nuclear activities
has dramatically decreased over the past 2 years. The Committee
directs the Treasury Department to provide a report to the
Committee, within 180 days from enactment, on the number of
non-nuclear related sanctions designations related to Iran
issued for the each of the past 3 fiscal years. The report
shall provide an overall number of designations, and the number
for each sanctions program.
The Committee is further concerned that investigations of
entities for possible sanctions violations take considerable
time and during the investigation period entities may continue
to carry out sanctionable activities. The Committee directs the
Department to begin tracking the time between the start of each
investigation into possible sanctions violations and the
issuance of sanctions or closure of the investigation. The
Department shall provide a report to the Committee at the end
of the fiscal year on the average investigation time, the
number of investigations carried out, the number of
investigations concluded, and the number of open
investigations.
Management of Capital Investments.--The Committee notes
that section 123 of the bill requires the Secretary of the
Treasury to develop an annual Capital Investment Plan, to be
submitted to the Committees on Appropriations of the Senate and
the House of Representatives within 30 days following
submission of the President's annual budget request. The
Committee directs the Department to include estimated funding
needs for the lifetime capital needs for each project, not just
for the budget year. The Committee also directs the Department
to include in the Capital Investment Plan meaningful and
understandable summaries of capital investments by project type
(e.g., information technology). The Committee directs the
Office of the Chief Information Officer to ensure that adequate
resources are devoted both to projects in the capital phase and
to proper maintenance and modernization of existing systems and
to ensure that all projects are tracked properly and described
completely in the annual Capital Investment Plan.
Cybersecurity.--The Committee supports investments in
financial cybersecurity research, and strongly urges the
Department of the Treasury, including the Office of Critical
Infrastructure Policy, to work with the National Science
Foundation, the Department of Homeland Security's Science and
Technology Directorate and its Homeland Security Advanced
Research Projects Agency, the Intelligence Advanced Research
Projects Activity, and others to leverage cybersecurity
research and efforts to protect our Nation where it is most
vulnerable.
Mortgage Servicing Assets.--The Committee remains concerned
that the risk-weighting requirements of and caps imposed under
Basel III will have the practical impact of forcing small and
mid-size banks out of the mortgage servicing business with a
serious impact on those banks as well as their customers. The
Committee expects to receive the study on the appropriate
capital requirements for mortgage servicing assets that was
required in the Consolidated Appropriations Act of 2016 (Public
Law 114-113) within the statutorily mandated deadline.
Custody Banks.--The Financial Stability Oversight Council
should examine regulatory approaches that may prevent custody
banks from providing key services. For example, custody banks
have a unique business model focused on providing services
critical to the operation of mutual funds, pension funds,
endowments and other institutional investors, including
providing demand deposit accounts to hold these clients' cash.
By necessity, the custody banks place such cash on deposit with
the Federal Reserve and other central banks, rather than
investing in loans or other higher yielding assets. Current and
future regulatory focus on this essentially risk-less activity,
possibly impeding custody banks' ability to provide traditional
custody services, could have an adverse impact on financial
stability by preventing custody banks from being able to accept
cash deposits from their clients during a crisis, denying those
clients a safe haven to preserve their capital and potentially
worsening a run on the banking system.
Guidelines for Pari-Mutuel Wagering.--The Committee
appreciates the Department of the Treasury's Proposed Rule
(REG-132253-11) being published on March 4, 2015, along with an
associated public hearing being held on June 17, 2015. The
Committee encourages the Treasury to expedite final
consideration of the guidance which would modernize the rules
governing pari-mutuel wagering.
CYBERSECURTY ENHANCEMENT ACCOUNT
Appropriations, 2016....................................................
Budget estimate, 2017................................... $109,827,000
Committee recommendation................................ 47,743,000
PROGRAM DESCRIPTION
The Cybersecurity Enhancement Account [CEA] is a new
dedicated account designed to bolster the Department's
cybersecurity posture and mitigate cybersecurity threats to the
U.S. financial infrastructure.
COMMITTEE RECOMMENDATION
The Committee recommends $47,743,000 in Department-wide
funding for focus on critical improvements to systems in the
Treasury-wide budget activity identified in the congressional
justification for this new account, including the Treasury
Secure Data Network, the Fiscal Service Trusted Internet
Connections, and the other systems that have been identified as
High Values Assets. The funding will also support
identification and protection of information systems; detection
of threat actors; and response and recovery from cyber
incidents. A portion of the resources will also support a
dedicated innovation fund for evolving high impact cyber
investments throughout the Department.
Treasury Chief Information Officer Oversight.--
Cybersecurity remains one of the most significant challenges
facing the Nation. Recent events have demonstrated that the
Federal Government faces as array of cyber-based threats to its
systems and data and the results have proven disastrous to
millions of Americans. The Committee directs the Treasury CIO
to review and approve each investment under the Cyber Security
Enhancement Account and report to the Committees on
Appropriations of the House and the Senate each quarter on the
progress of each investment. In order to help ensure that the
Treasury CIO retains control over the execution of these funds,
the Committee recommendation does not permit transfers of funds
from the Cybersecurity Enhancement Account and does not adopt
the language in the request allowing these funds to be
obligated and expended through allocation accounts available to
individual offices and bureaus.
Spend Plans.--To improve oversight of these funds across
the Department, the Committee directs the CIOs of each office
and bureau of the Treasury to submit a spend plan for each
prospective investment under this heading to the Treasury
Department CIO for review. The Committee directs the Treasury
CIO to review each investment submitted under the Cyber
Security Enhancement Account heading to improve oversight of
these funds across the Department; none of the funds under this
heading will be available to fund such an investment without
the approval of the Treasury CIO.
The Spend Plans should include how the investment will:
enhance Department-wide coordination of cybersecurity efforts
and improve the Department's responsiveness to cybersecurity
threats; provide bureau and agency leadership with greater
visibility into cybersecurity efforts and further encourage
information sharing across bureaus; improve identification of
cyber threats and better protect information systems from
attack; provide a platform to enhance efficient communication,
collaboration, and transparency around the common goal of
improving not only the cybersecurity of the Treasury
Department, but also the Nation's financial sector. The spend
plans should also detail the type of cybersecurity enhancement
the investment represents, and the cost, scope, schedule of the
investment, and explain how it complements existing cyber
efforts.
DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAMS
(INCLUDING TRANSFER OF FUNDS)
Appropriations, 2016.................................... $5,000,000
Budget estimate, 2017................................... 5,000,000
Committee recommendation................................ 5,000,000
PROGRAM DESCRIPTION
The 1997 Treasury and General Government Appropriations Act
established this account, which is authorized to be used by or
on behalf of Treasury bureaus at the Secretary's discretion to
modernize business processes and increase efficiency through
technology investments, as well as other activities that
involve more than one Treasury bureau or Treasury's interface
with other Government agencies.
COMMITTEE RECOMMENDATION
The Committee recommends $5,000,000 for Department-wide
Systems and Capital Investments Programs [DSCIP] for fiscal
year 2017.
The Committee notes that the DSCIP account has been
utilized to fund a wide variety of multiyear initiatives. Given
the complexity of these initiatives, the bill includes language
in section 123 directing the Department of the Treasury to
submit an annual Capital Investment Plan to the Committees on
Appropriations within 30 days after the President's budget
submission.
OFFICE OF INSPECTOR GENERAL
SALARIES AND EXPENSES
Appropriations, 2016.................................... $35,416,000
Budget estimate, 2017................................... 37,044,000
Committee recommendation................................ 37,044,000
PROGRAM DESCRIPTION
As a result of the 1988 amendments to the Inspector General
Act, the Secretary of the Treasury established the Office of
Inspector General [OIG] in 1989.
The OIG conducts and supervises audits, evaluations, and
investigations designed to: (1) promote economy, efficiency,
and effectiveness and prevent fraud, waste, and abuse in
departmental programs and operations; and (2) keep the
Secretary and Congress fully and currently informed of problems
and deficiencies in the administration of departmental programs
and operations. The audit function provides program audit,
contract audit, and financial statement audit services.
Contract audits provide professional advice to agency
contracting officials on accounting and financial matters
relative to negotiation, award, administration, repricing, and
settlement of contracts. Program audits review and audit all
facets of agency operations. Financial statement audits assess
whether financial statements fairly present the agency's
financial condition and results of operations, the adequacy of
accounting controls, and compliance with laws and regulations.
These audits contribute significantly to improved financial
management by helping Treasury managers identify improvements
needed in their accounting and internal control systems. The
evaluations function reviews program performance and issues
critical to the mission of the Department. The investigative
function provides for the detection and investigation of
improper and illegal activities involving programs, personnel,
and operations.
COMMITTEE RECOMMENDATION
The Committee recommends $37,044,000 for salaries and
expenses of the Office of Inspector General. This amount is
equal to the budget request and $1,628,000 above the fiscal
year 2016 enacted level.
The Committee directs the Inspector General to utilize
funds provided to meet mandated audit requirements such as
information security in addition to other prioritized work
including Treasury's responsibilities as they relate to the
implementation of anti-money laundering programs and the
Community Development Financial Institutions Fund.
The Committee remains concerned about cyber-based threats
and recent data breaches at Federal agencies. The Committee
encourages the Inspector General to conduct oversight work on
the potential vulnerability of Treasury's networks and systems
including its physical security, continuous monitoring, and
strong authentication.
As outlined in the Inspector General's recent audit plan,
the Committee looks forward to reviewing work on the CDFI
Fund's overall administration of grants awarded under the core
program. Specifically, the Committee hopes to learn more about
whether funds are awarded to eligible recipients in accordance
with applicable laws and regulations; whether the CDFI Fund has
established and maintained internal control procedures and
oversight over grants; and whether there is a process for
measuring outcomes to ensure program objectives are achieved.
Treatment of Employees of the Former Financial Management
Service.--The Committee instructs the Office of Inspector
General [OIG] to continue monitoring the treatment of the
employees of the Bureau of the Fiscal Service who were
employees of the former Financial Management Service before the
bureau was consolidated. The Committee remains concerned
regarding employees being threatened or harassed, demoted, or
pushed out of service through poor treatment by the Treasury
Department.
TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION
SALARIES AND EXPENSES
Appropriations, 2016.................................... $167,275,000
Budget estimate, 2017................................... 169,634,000
Committee recommendation................................ 169,634,000
PROGRAM DESCRIPTION
The Treasury Inspector General for Tax Administration
[TIGTA] was established by the IRS Restructuring and Reform Act
of 1998 (Public Law 105-206). TIGTA was created to provide
independent audit and investigative services necessary to
improve the quality and credibility of oversight of the
Internal Revenue Service [IRS] and ensure that the IRS is held
to a high level of accountability.
TIGTA conducts audits, investigations, and inspections and
evaluations to assess the operations and programs of the IRS
and related entities, the IRS Oversight Board and the Office of
Chief Counsel to (1) promote the economic, efficient, and
effective administration of the Nation's tax laws and to detect
and deter fraud and abuse in IRS programs and operations; and
(2) recommend actions to resolve fraud and other serious
problems, abuses, and deficiencies in these programs and
operations, and keep the Secretary and Congress fully and
currently informed of these issues and the progress made in
resolving them.
The audit function provides program audit, limited contract
audit, and financial audit services. Program audits review and
audit all facets of the IRS and related entities in an effort
to improve IRS systems and operations, while ensuring fair and
equitable treatment of taxpayers. Contract audits focus on
invoices/vouchers submitted to the IRS to determine whether
charges are valid and to identify erroneous and improper
payments. The investigative function provides for the detection
and investigation of improper and illegal activities involving
IRS programs and operations and protects the IRS and related
entities against external attempts to corrupt or threaten the
administration of the tax laws.
During fiscal year 2015, TIGTA recovered, protected, and
identified monetary benefits totaling $26,500,000,000,
including $17,400,000,000 in potential increased and protected
revenue and $9,100,000,000 in potential cost savings. In fiscal
year 2015, TIGTA received 12,080 complaints, opened 2,726
investigations, and closed 2,797 investigations.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $169,634,000
for TIGTA. This amount is $2,359,000 above the fiscal year 2016
enacted level and the same as the budget request. The Committee
recognizes the expansive workload that TIGTA has assumed as
well as considerable demands on its resources in order to be
responsive to Congress. The Committee acknowledges the
challenges TIGTA faces in adapting its oversight activities to
address increasingly complex and high-risk issues associated
with IRS operations, including protecting sensitive taxpayer
data, detection and investigation of fraud and electronic
crime, impersonation scams, and review of procurement
activities. The Committee recognizes that growth in the size
and workload of the IRS generates concomitant increased work
for TIGTA.
Since fiscal year 2011, TIGTA has designated the security
of taxpayer data as the top concern facing the IRS based on the
increased number and sophistication of threats to taxpayer
information and the need for the IRS to better protect taxpayer
data and improve its enterprise security program. The Committee
appreciates the work TIGTA has performed on IRS's efforts to
detect refund fraud by identity thieves and authenticate
individual taxpayers' identities at the time tax returns are
filed. In a report issued in November 2015, TIGTA found that
when the IRS assessed the risk of the Get Transcript
application, it rated the authentication risk associated with
Get Transcript as low to both the IRS and taxpayers. As a
result, the IRS implemented single-factor authentication to
access the Get Transcript application. TIGTA also reported that
the IRS did not complete the required authentication risk
assessment of the Identity Protection Personal Identification
Number. TIGTA's findings revealed additional attempts to clear
the Get Transcript verification process and ultimately led to
the IRS disabling these applications. The Committee remains
concerned about IRS's implementation of its Future State vision
and IRS's ability to implement the necessary security controls
in its rush to make available electronic applications. The
Committee appreciates TIGTA's work in this area and looks
forward to reviewing TIGTA's work on evaluating the changes
being considered for authenticating taxpayer access to their
account information, particularly as the IRS re-launches Get
Transcript and other electronic applications; the effectiveness
of controls to mitigate threats to IRS systems; the security of
data file transfers to third parties; and the effectiveness of
controls to address cybersecurity incidents.
The Committee relies on TIGTA's annual assessment of the
serious management challenges facing the IRS as it evaluates
resource needs. The Consolidated Appropriations Act of 2016
provided the IRS with additional funding for customer service.
The Committee looks forward to reviewing TIGTA's work on
assessing IRS's process for allocating its customer service
budget. The Committee appreciates the work TIGTA has completed
on emerging issues in particular the IRS impersonation scams.
The Committee understands that TIGTA has declared the scam the
most pervasive in the history of the agency. The scam has
affected thousands of victims in every state represented on the
Committee with reported losses totaling close to $36,500,000.
The Committee is pleased to hear that TIGTA has made
significant progress in its investigation of the IRS
impersonation scam. The Committee urges TIGTA to continue to
assist the IRS in improving its arsenal of tools to better
serve innocent taxpayer victims of identity theft and other
schemes.
The IRS's use of inappropriate criteria for selecting and
reviewing applications for tax-exempt status is of continuing
concern to both Congress and organizations seeking tax-exempt
status. TIGTA recently reported that the IRS has taken actions
to eliminate the selection of potential political cases based
on names and policy positions, expedite processing of I.R.C.
section 501(c)(4) social welfare organization applications, and
eliminate unnecessary information requests. As part of its
review, TIGTA recommended that the IRS take action to improve
the timing and execution of political campaign intervention
training for relevant employees. The Committee appreciates
TIGTA's diligent work on this important matter to ensure that
applications for tax-exempt status are processed in a fair,
impartial, and timely manner.
The Committee appreciates TIGTA's monitoring of the IRS's
implementation of the Patient Protection and Affordable Care
Act [ACA]. The ACA impacts individual and business taxpayers at
all income levels, IRS compliance and enforcement programs,
information reporting requirements, the administration of tax
penalties, and information technology. The IRS's ability to
ensure accurate tax returns are filed and information reported
is correct is dependent on the timely receipt of information
from exchanges, insurance providers, and employers. TIGTA has
issued numerous reports related to the IRS's efforts to
implement the Affordable Care Act tax provisions. The Committee
looks forward to reviewing TIGTA's work on the effectiveness of
the IRS's verification of employers' and individuals'
compliance with minimum essential coverage requirements and
IRS's efforts to improve the verification of Premium Tax Credit
claims.
SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF PROGRAM
SALARIES AND EXPENSES
Appropriations, 2016.................................... $40,671,000
Budget estimate, 2017................................... 41,160,000
Committee recommendation................................ 41,160,000
PROGRAM DESCRIPTION
The Emergency Economic Stabilization Act (Public Law 110-
343) established the Office of the Special Inspector General
for the Troubled Asset Relief Program [SIGTARP] to perform
audits and investigations of the Troubled Asset Relief Program
[TARP].
COMMITTEE RECOMMENDATION
The Committee recommends $41,160,000 for the SIGTARP for
fiscal year 2017. The recommendation is $489,000 above the
fiscal year 2016 enacted level and equal to the budget request.
Financial Crimes Enforcement Network
SALARIES AND EXPENSES
Appropriations, 2016.................................... $112,979,000
Budget estimate, 2017................................... 115,003,000
Committee recommendation................................ 114,479,000
PROGRAM DESCRIPTION
The Financial Crimes Enforcement Network [FinCEN], a bureau
within the Treasury Department's Office of Terrorism and
Financial Intelligence, is the largest overt collector of
financial intelligence in the United States. FinCEN's mission
is to safeguard the financial system from the abuses of
financial crime, including terrorist financing, money
laundering, and other illicit activity. FinCEN accomplishes its
mission by administering the Bank Secrecy Act, a collection of
statutes that form the Nation's antimoney laundering/
counterterrorist financing regulatory regime. As the delegated
administrator of the Bank Secrecy Act, FinCEN is responsible
for the development and implementation of regulations, rules,
and guidance issued under the Bank Secrecy Act. FinCEN also
oversees the work of eight Federal agencies with delegated
responsibility to examine various sectors of the financial
industry for compliance with the Bank Secrecy Act's
requirements. FinCEN is responsible for collecting,
maintaining, and disseminating the information reported by
financial institutions under the Bank Secrecy Act through a
Governmentwide access service. FinCEN is the United States'
Financial Intelligence Unit [FIU] and a founding member of the
Egmont Group of Financial Intelligence Units. As the United
States' FIU, FinCEN routinely shares information and cooperates
with other FIUs around the world to address the global problems
of terrorist financing, money laundering, and other illicit
activity.
COMMITTEE RECOMMENDATION
The Committee recommends $114,479,000 for the Financial
Crimes Enforcement Network [FinCEN]. The amount is $1,500,000
above the fiscal year 2016 enacted level. The Committee's
recommended funding is intended to sustain increased national
security response capacity for FinCEN's intelligence analysis
and reporting efforts to combat terrorist groups.
The recommended funding will also support several key
FinCEN budget priorities, including targeting examination and
enforcement efforts to high priority areas; expanding
understanding and analysis of illicit networks, institutions,
jurisdictions, and schemes, with emphasis on national security
threats and terrorist groups; ensuring the Bank Secrecy Act
regulatory structure effectively and efficiently targets
illicit financing risks; managing the efficient collection,
processing, and retrieval of Bank Secrecy Act data; and
fostering strong public-private partnerships with the financial
industry.
Money Laundering of Cybercrime Proceeds.--The Committee
recognizes that major data security breaches are becoming more
common and are often orchestrated by sophisticated
cybercriminal enterprises that then monetize the data and
launder it through U.S. financial institutions. The Committee
notes FinCEN's history of supporting law enforcement cases that
combat cybercrime, and emphasizes the importance of continuing
this effort as part of the bureau's broader mission to detect
and disrupt all forms of financial crime. In addition to
analyzing financial flows for this important effort in the
course of ongoing strategic operations, FinCEN shall use this
data to ensure reporting institutions remain vigilant in
detecting the laundering of cybercriminal proceeds by issuing
an advisory to financial institutions on filing suspicious
activity reports [SARs] regarding specific cybercriminal
activities. The advisory should provide SAR filers a list of
trends, typologies, and red flag indicators that may
potentially signal cybercrime to be included in the narratives
of relevant SAR filings.
Treasury Forfeiture Fund
(RESCISSION)
The Committee recommends a rescission of $657,000,000 of
unobligated balances in the Treasury Forfeiture Fund, of which
$328,000,000 are permanently rescinded.
Bureau of the Fiscal Service
SALARIES AND EXPENSES
Appropriations, 2016.................................... $363,850,000
Budget estimate, 2017................................... 353,057,000
Committee recommendation................................ 353,057,000
PROGRAM DESCRIPTION
The mission of the Fiscal Service is to promote the
financial integrity and operational efficiency of the U.S.
Government through accounting, borrowing, collections,
payments, and shared services. The Fiscal Service provides
central payment services to Federal agencies and operates the
Federal Government's collections and deposit systems in
addition to providing Governmentwide accounting and reporting
services, managing the collection of delinquent debt owed to
the Federal Government, borrowing on behalf of the Federal
Government, and providing support services for other Federal
agencies on a reimbursable basis.
COMMITTEE RECOMMENDATION
The Committee recommends $353,057,000 for the Bureau of the
Fiscal Service. This amount is equal to the budget request and
$10,793,000 below the enacted level due to one-time costs in
fiscal year 2016 to support costs associated with the Digital
Accountability and Transparency Act of 2014 [DATA Act]. The
fiscal year 2016 DATA Act funds will remain available until
fiscal year 2018 to support its implementation.
The Committee supports the Fiscal Service's goal of
improving governmentwide financial management through
transparency and accountability. The Committee provides funding
for activities associated with maintaining consistent,
reliable, and searchable governmentwide spending data on
USASpending.gov.
DATA Act.--The Committee is aware of the Department of the
Treasury's leadership role in implementing the DATA Act to
date. The Department is directed to implement the law in a
manner consistent with both statutory deadlines and the
timelines indicated in the DATA Act Playbook, including by
providing timely technical assistance to agencies.
Consolidation Plan.--The Committee acknowledges that the
consolidation of the Bureau of the Public Debt and Financial
Management Service into the new Bureau of the Fiscal Service
has left some employees with uncertainty over their future,
creating anxiety and low employee morale. The Committee directs
the Bureau of the Fiscal Service to release a comprehensive
consolidation plan, including the job functions that will be
maintained at each location, within 180 days of enactment.
Alcohol and Tobacco Tax and Trade Bureau
SALARIES AND EXPENSES
Appropriations, 2016.................................... $106,439,000
Budget estimate, 2017................................... 106,439,000
Committee recommendation................................ 111,439,000
PROGRAM DESCRIPTION
The Alcohol and Tobacco Tax and Trade Bureau [TTB] is
charged with collecting revenue and protecting the public and
is responsible for enforcement of certain Federal laws and
regulations relating to alcohol and tobacco. TTB works directly
and in cooperation with others to maintain a sound revenue
management and collection system that continues to reduce the
regulatory burden, improve service, collect the revenue due,
and prevent tax evasion and other criminal conduct. TTB is also
responsible for preventing consumer deception, ensuring that
regulated products comply with Federal commodity, safety, and
distribution requirements, and providing customer service.
COMMITTEE RECOMMENDATION
The Committee recommends $111,439,000 for TTB for fiscal
year 2017. The Committee recognizes that TTB is tasked to
enforce alcohol, tobacco, and firearms provisions in the
Internal Revenue Code [IRC]. Within funds appropriated to the
Department of the Treasury, the Committee urges the Secretary
to prioritize alcohol and tobacco criminal enforcement by
providing sufficient resources to TTB to combat tax evasion and
enforce existing anti-illicit tobacco laws.
Labeling Program.--The surge of small brewers and wine
makers emerging in the domestic market has also meant a rapid
annual growth in the number of alcohol beverage label
applications submitted to the TTB. In recent years,
understaffing and outdated filing and processing procedures in
the Bureau's labeling program caused significant delays in
application approvals. These delays ultimately affected the
ability of the applicants to get their product to the market in
a timely manner. The Committee encourages the Bureau to make
strategic investments that will further streamline the approval
process to keep up with the volume of label applications and
reduce delays.
Trade Practice Enforcement.--The Committee has included an
additional $5,000,000 for TTB to increase education and
enforcement efforts for industry trade practices. The Committee
is concerned by the loss of efforts to enforce the basic trade
practice functions required under the Federal Alcohol
Administration Act [FAA Act] and has directed additional
funding to the agency for enforcement of the regulations under
the FAA Act. These regulations protect the production,
distribution, and sale of beverage alcohol which maintains an
orderly and safe marketplace for the American consumer. The
Committee directs the TTB to report to the Committees on
Appropriations of the House and Senate, within 60 days of
enactment of this act, on how the additional funding will be
used to create greater awareness and enforcement in responding
to the growing demand from stakeholders.
Wine Label Accuracy.--The Committee is aware that the
Alcohol and Tobacco Tax and Trade Bureau is working to ensure
that wine labels accurately reflect the use of American
Viticulture Area terms. The Committee directs the Department to
publish rulemaking addressing this issue without delay.
Treasury Franchise Fund
Appropriations, 2016....................................................
Budget estimate, 2017................................... $3,000,000
Committee Recommendation................................................
PROGRAM DESCRIPTION
The Treasury Franchise Fund is revolving in nature and
provides accounting, procurement, travel, human resources, and
information technology services through its three business
lines: the Administrative Resource Center [ARC], Fiscal IT, and
the Shared Services Program [SSP]. Services are provided to
Federal customers on a reimbursable, fee-for-service basis.
COMMITTEE RECOMMENDATION
The Committee bill does not include funding for DATA Act
implementation expenses that can be supported by the fund.
United States Mint
UNITED STATES MINT PUBLIC ENTERPRISE FUND
PROGRAM DESCRIPTION
The United States Mint manufactures coins, sells numismatic
and investment products, and provides for security and asset
protection. Public Law 104-52 established the U.S. Mint Public
Enterprise Fund [the Fund]. The Fund encompasses the previous
Salaries and Expenses, Coinage Profit Fund, Coinage Metal Fund,
and the Numismatic Public Enterprise Fund. The Mint submits
annual audited business-type financial statements to the
Secretary of the Treasury and to Congress in support of the
operations of the revolving fund.
The operations of the Mint are divided into two major
activities: manufacturing and sales (including circulating
coinage and numismatic and investment products); and
protection. The Mint is credited with receipts from its
circulating coinage operations, equal to the full cost of
producing and distributing coins that are put into circulation,
including depreciation of the Mint's plant and equipment on the
basis of current replacement value. Those receipts pay for the
costs of the Mint's operations, which include the costs of
production and distribution.
COMMITTEE RECOMMENDATION
The Committee recommends a spending level of $20,000,000
for circulating coinage and protective service capital
investments for the Mint.
Community Development Financial Institutions Fund
COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM ACCOUNT
Appropriations, 2016.................................... $233,523,000
Budget estimate, 2017................................... 245,923,000
Committee recommendation................................ 233,523,000
PROGRAM DESCRIPTION
The Community Development Financial Institutions Fund makes
investments in the form of grants, loans, equity investments,
deposits, and technical assistance grants to new and existing
community development financial institutions [CDFIs] through
the CDFI program. CDFIs include community development banks,
credit unions, venture capital funds, revolving loan funds, and
microloan funds, among others. Recipient institutions engage in
lending and investment for affordable housing, small business,
and community development within underserved communities. The
CDFI Fund administers the Bank Enterprise Award [BEA] Program,
which provides a financial incentive to insured depository
institutions to undertake community development financing
activities.
COMMITTEE RECOMMENDATION
The Committee recommends $233,523,000 for the CDFI Fund. Of
the amounts provided, $171,423,000 is for financial and
technical assistance grants, $15,500,000 is for Native
Initiatives, $23,000,000 is for the Bank Enterprise Award
Program, and $23,600,000 is for the administrative expenses for
all programs.
The Committee notes the CDFI Fund's ability to leverage
private sector investment in community development projects
such as affordable housing, retail development, and community
centers, as well as lending to small businesses. However, the
Committee remains concerned about an overall lack of
transparency into many of the CDFI Fund's programs and nominal
ability to verify investment impacts. The Committee is also
concerned by reports that award recipients are infrequently
held accountable for award usage that differs from its original
location and purpose, as set forth by the recipient's approved
application. The Committee strongly believes it is important to
ensure that CDFIs are delivering investments to the borrowers
and communities that need it most. It remains difficult to
determine whether program goals are being achieved. The
Committee provides $1,000,000 for the development of tools to
better measure and assess CDFI investment performance, improve
data quality, and enable more efficient allocation of CDFI Fund
resources.
The Committee expects to know how program funding generates
meaningful community impacts. The Committee recognizes the CDFI
Fund's recent efforts to establish common definitions around
key impact measurements and encourages the Fund to continue its
work in this area as well as on improving the quality and
consistency of feedback from awardees. The Committee directs
the Secretary to report to the Appropriations Committees within
90 days of enactment detailing the Fund's efforts to better
collect and evaluate performance-related data, to better gauge
the effectiveness of its efforts in underserved populations,
including rural and non-metropolitan communities, and to better
inform future decision-making.
Core Program.--The Committee recommends $171,423,000 for
the CDFI Fund to carry out its financial assistance and
technical assistance programs, including the Healthy Food
Financing Initiative. The Committee believes that applicants
for CDFI awards should receive fair and equal consideration,
consistent with section 102 of the Riegle Community Development
and Regulatory Improvement Act of 1994 (Public Law 103-325),
including financial and technical assistance for lending and
investment in small businesses, affordable housing, community
development, and efforts to increase the availability of
affordable, healthy foods in underserved communities. The core
CDFI Program should be the source of awards allocations for
these purposes. The Committee looks forward to reviewing work
from the Inspector General on the CDFI Fund's overall
administration of grants awarded under the core program.
Specifically, the Committee hopes to learn more about whether
funds are awarded to eligible recipients in accordance with
applicable laws and regulations; whether the CDFI Fund has
established and maintained internal control procedures and
oversight over grants; and whether there is a process for
measuring outcomes to ensure program objectives are achieved.
Bank Enterprise Award Program.--The Committee recommends
$23,000,000 for the Bank Enterprise Award [BEA] Program to
increase lending, investment, and service activities within
economically distressed communities. This program plays an
important role in providing financial services to underserved
communities across the country.
Native Programs.--The Committee recommends $15,500,000 for
grants, loans, and technical assistance and training programs
to benefit Native American, Alaskan Natives, and Native
Hawaiian communities in the coordination of development
strategies, increased access to equity investments, and loans
for development activities.
Non-Metropolitan and Rural Areas.--The Committee directs
Treasury to take into consideration the unique conditions,
challenges, and scale of non-metropolitan areas when designing
programs to address economic revitalization and community
development and when making CDFI award decisions. The Committee
notes that the CDFI Fund is required by 12 U.S.C. 4706(b) to
seek to fund a geographically diverse group of award
recipients, including those from non-metropolitan and rural
areas. In addition, the Committee directs funding to be used in
each program for projects that serve populations living in
persistent poverty counties in accordance with this act.
Bond Guarantee Program.--The Committee includes a provision
enabling the Secretary of the Treasury to guarantee up to
$500,000,000 in bonds in fiscal year 2017, as authorized by
section 1134 of the Small Business Jobs Act of 2010 (Public Law
111-240). The bond guarantees will not result in a cost to the
taxpayer. The bonds are intended to support CDFI lending and
investment activities in underserved communities by providing a
source of long-term capital, and the funds raised through the
bonds will be used to capitalize new loans or refinance
existing loans.
Bureau of Engraving and Printing
PROGRAM DESCRIPTION
The Bureau of Engraving and Printing [BEP] has been the
sole manufacturer of U.S. paper currency for almost 150 years.
The origin of the BEP is traced to an act of Congress passed on
February 25, 1862, 12 Stat. 345, authorizing the Secretary of
the Treasury to issue a new currency--United States notes.
While this law was the cornerstone authority for the operations
of the engraving and printing division of the Treasury for many
years, it was not until an Act of June 20, 1874, 18 Stat. 100,
that the Congress first referred to this division as the
``Bureau of Engraving and Printing.'' The Bureau's status as a
distinct bureau within the Department of the Treasury was
solidified by section 1 of the Act of June 4, 1897, 30 Stat.
18, which placed all of the business of the BEP under the
immediate control of a director, subject to the direction of
the Secretary of the Treasury. The 1897 law is now codified in
31 U.S.C. 303.
The BEP designs, manufactures, and supplies Federal Reserve
notes and other security documents issued by the Federal
Government. The operations of the BEP are currently financed by
means of a revolving fund established in accordance with the
provisions of Public Law 656, August 4, 1950 (31 U.S.C. 181),
which requires the BEP to be reimbursed by customer agencies
for all costs of manufacturing products and services performed.
The BEP is also authorized to assess amounts to acquire capital
equipment and provide for working capital needs. No direct
appropriation is required to cover the activities of the BEP.
The Bureau of Engraving and Printing [BEP] prints billions
of Federal Reserve notes each year at its production facilities
in Washington, DC and Fort Worth, Texas. The Committee
recognizes that the age and structural design of the
Washington, DC facility causes production inefficiencies and
limits the options available to the BEP in acquiring and
installing new manufacturing equipment needed to print the next
generation of currency. The Committee directs the BEP, in
consultation with the General Services Administration, to
submit to the Committee, within 180 days of the date of
enactment of this act, a report on the feasibility of
constructing a smaller, more efficient and flexible production
facility in the National Capital Region to replace its current
DC facility. The report should include an explanation of the
operational and security benefits of a new production facility
and the anticipated costs and construction schedule.
Internal Revenue Service
PROGRAM DESCRIPTION
The Internal Revenue Service [IRS] administers the Nation's
tax laws and collects the revenue that funds more than 92
percent of the Federal Government's operations and public
services. The IRS's mission is to provide taxpayers with
quality service by helping them understand and meet their tax
responsibilities and by applying the tax law with integrity and
fairness to all. The IRS focuses its enforcement programs
toward increasing voluntary tax compliance by deterring
taxpayers inclined to evade their tax obligations while
vigorously pursuing those who violate the law. Each year, IRS
employees deal directly with more American taxpayers than any
other institution, public or private.
Unfortunately, the IRS does not seem to have its priorities
in order. The Committee remains concerned about IRS's Future
State vision where taxpayers will rely on online services for
their IRS interactions. According to the National Taxpayer
Advocate, the vision essentially eliminates IRS-taxpayer
personal interaction with online and third-party interactions
except in the context of enforcement actions. What is lost in
this vision of the future is the interest and relationship with
actual taxpayers. While some evolution in service delivery can
be expected, it is the IRS's ability to manage that change
without adversely impacting taxpayers that is most worrisome.
This is of particular concern given the recent revelation that
in the rush to expand online services, the IRS made fundamental
mistakes in assessing risks to its online systems which
resulted in over 700,000 taxpayers being exposed to the
potential of identity theft and refund fraud, many more than
were first reported by the IRS.
The IRS continues to ignore the impact of its own behavior
on the attitudes of taxpayers. When the IRS takes actions that
represent a serious breach of the trust of the American people,
it undermines taxpayers' faith in the impartiality of the
agency. The self-inflicted damage harms the very credibility
that is essential for our voluntary compliance system to
function. Americans have lost faith in the institution and it
is incumbent upon the agency to regain the trust of the
taxpayers.
Unfortunately there continues to be evidence of a culture
that is simply out of touch with taxpayers and their concerns.
When the IRS singles out certain groups for disparate treatment
it should not be surprised by the lasting impact such actions
have on taxpayer attitudes. When the IRS hires employees with
past performance or conduct issues, it does nothing to maintain
the public trust in tax administration or build confidence in
the IRS's ability to safeguard taxpayer's rights and privacy.
Making employee bonuses a priority does not help the IRS
regain the trust of taxpayers or raise confidence that the
agency will enforce tax laws impartially, without regard to an
individual's exercise of their constitutional rights. As was
the case in the previous fiscal year, in 2016 one of the IRS's
first actions after the enactment of their appropriations bill
was to announce they would pay out $51,000,000 in awards to
employees.
Once again, the IRS management seems to have forgotten that
their most important customers aren't their own employees. They
are the American people. This is particularly evident with
respect to taxpayer services. The Committee is concerned about
the IRS's willingness to cut services to taxpayers in an effort
to garner support for increased resources. The Committee notes
that given specific direction and a requirement from Congress
to the IRS in fiscal year 2016, the IRS has taken steps to
improve taxpayer services. Unfortunately, without this specific
direction, the IRS would not have made taxpayer services a
priority. The Committee provides the IRS with funds through
four appropriations. While some funds are designated for some
specific taxpayer assistance programs within those amounts, the
IRS has significant discretion as to how to apportion its funds
to meet agency requirements. In addition, in fiscal year 2016
the IRS had over $1,000,000,000 available in additional
resources, including over $500,000,000 in user fees to
supplement its appropriation. The IRS expects to collect
$400,000,000 in user fees in fiscal year 2017, over half of
which it plans to use to supplement its operations support
account.
Unfortunately, the IRS continues to take actions that
demonstrate its inability to be transparent about its available
resources and flexibility. Just recently the IRS announced its
intent to hire 600 to 700 enforcement officers. In a memo to
employees the IRS Commissioner stated that the IRS's budget is
allocated to four specific areas and when funding is available
in one area the IRS is required to spend it in that area. The
Commissioner is well aware of the transfer and reprogramming
authority provided by Congress, yet failed to omit this fact in
his statement to employees.
The Committee continues to be concerned with the IRS's role
in the implementation of ACA. IRS has stated that the tax
provisions of ACA are a core activity, like all other tax
administration. However, concerns have been raised about
potential fraudulent claims related to premium tax credits and
the security of Federal tax data as the IRS provides data to
health exchanges. According to the Government Accountability
Office [GAO], from 2010 to 2015, the IRS has already spent
$1,600,000,000 on implementation of ACA. More troubling is the
fact that the IRS is requesting $402,400,000 for ACA, almost
double the amount ($204,600,000) spent in fiscal year 2016. The
IRS continues to make ACA a priority by dedicating a large
share of user fees to support ACA implementation.
COMMITTEE RECOMMENDATION
The Committee recommends a total of $11,235,000,000 for the
Internal Revenue Service for fiscal year 2017, equivalent to
the fiscal year 2016 enacted level. The Committee continues
prior language requiring $290,000,000 be used for measurable
improvements to taxpayer services, cybersecurity, and the
resolution of identity theft cases.
Future State Vision.--IRS's future state vision of the tax
administration system is to promote and improve voluntary
compliance by delivering better service to more people at a
lower cost through less IRS-taxpayer personal interaction and
greater online and third-party interactions. According to the
Commissioner, ``when it costs between $40 and $60 to interact
with a taxpayer in person, and less than $1 to interact online,
we must reexamine how to best provide the best possible
taxpayer experience, in response to taxpayer expectations and
demands.'' Security concerns aside the IRS has not demonstrated
that is has analyzed the consequences of its vision and the
impact it will have on taxpayers. Additionally, it is unclear
what research IRS conducted to understand taxpayer needs.
According to the National Taxpayer Advocate, gradual automation
actually has resulted in increased demand for person-to-person
service.
User Fees.--Numerous user fees are collected by the IRS for
services provided by the IRS to taxpayers. Specifically, IRS
charges user fees for various activities that include assisting
taxpayers in complying with their tax liabilities, clarifying
the application of the tax code to particular circumstances,
and ensuring the quality of paid preparers of tax returns,
among others. Those fees are available for use by the IRS at
the discretion of the Commissioner. According to the IRS, it
determines the use of user fees based on agency-wide
requirements given the total IRS funding availability. In
fiscal year 2015, transfers of user fees ($454,000,000)
accounted for 3.8 percent of total available resources
($11,976,000,000). IRS carried over an unobligated balance of
$194,000,000 in user fees from fiscal year 2015 available for
obligation in fiscal year 2016. Despite the flexibility IRS has
in allocating fees, from fiscal years 2014 to 2015, IRS
increased transfers to Operations Support by $171,000,000, and
decreased transfers to Taxpayer Services by $139,000,000. In
its fiscal year 2017 budget request, IRS estimates user fees of
$400,000,000 will supplement its fiscal 2017 funding. As
evidence of its priorities, in fiscal year 2016 the IRS
anticipates spending more than half of its user fees on ACA
information technology needs. The Committee directs IRS to
submit a user fee spending plan within 60 days of enactment
detailing planned spending on its four appropriations
accounts--Taxpayer Services, Enforcement, Operations Support,
and Business Modernization Systems. Specifically, the Committee
would like to see how programs, investments, and initiatives
funded through each appropriations account are supported by
user fees.
Cybersecurity.--The IRS is responsible for safeguarding a
vast amount of sensitive financial and personal data,
processing returns that contain confidential information for
over 100 million taxpayers. Persistent information security
weaknesses put the IRS at risk of disruption, fraud, or
inappropriate disclosure of sensitive information. GAO recently
reported that IRS had not always effectively implemented access
and other controls, including elements of its information
security program, to protect the confidentiality, integrity,
and availability of its financial systems and information.
These weaknesses, some of which were recently identified
increase the risk that taxpayer and other sensitive information
could be disclosure or modified without authorization. Given
the recent breaches to taxpayer data, it is clear IRS cannot
afford to have taxpayer information misused, improperly
disclosed, or destroyed. Securing IRS's systems and protecting
taxpayers' information should be a top priority for IRS.
Employee Performance and Conduct.--The Committee continues
past language acknowledging that the IRS must ensure that its
employees comply with the tax law in order to maintain the
public's confidence. The Committee is deeply concerned about
employees who fail to file taxes in a timely manner and claim
tax credits for which they are ineligible. The Committee agrees
with TIGTA that rehiring employees with known conduct and
performance issues presents increased risks to the IRS and
taxpayers. The Committee notes H.R. 3724 was introduced to
prohibit the IRS from rehiring employees who were previously
fired for misconduct or job performance-related issues.
Budget Presentation for Staffing of New Initiatives.--The
Committee strongly believes that transparency in the budget
request documents is critical for congressional oversight and
informed decisionmaking. The Committee directs that the
justification materials submitted by the IRS to the Committee
for fiscal year 2018 should accurately reflect the anticipated
hiring dates for staff identified for proposed new initiatives.
The Committee expects that resources designated for hiring of
staff for new initiatives be predicated on the expected hiring
dates, and not assume that such planned hiring will occur on
one particular date during the fiscal year. The Office of
Management and Budget Circular A-11 suggests agencies consider
delays in recruiting and hiring when budgeting for staff.
TAXPAYER SERVICES
Appropriations, 2016.................................... $2,156,554,000
Budget estimate, 2017................................... 2,406,318,000
Committee recommendation................................ 2,156,554,000
PROGRAM DESCRIPTION
The Taxpayer Services appropriation provides for taxpayer
services, including forms and publications; processing tax
returns and related documents; filing and account services;
taxpayer advocacy services; and assisting taxpayers to
understand their tax obligations, correctly file their returns,
and pay taxes due in a timely manner.
COMMITTEE RECOMMENDATION
The Committee recommends $2,156,554,000 for Taxpayer
Services. Bill language is included providing not less than
$8,000,000 for the tax counseling for the elderly program, not
less than $12,000,000 for low-income taxpayer clinic [LITC]
grants, not less than $15,000,000, to be available for 2 years,
for a community volunteer income tax assistance [VITA] matching
grant program for tax return preparation assistance and
$206,000,000 for the Taxpayer Advocate Service of which
$5,000,000 shall be devoted to assisting taxpayers impacted by
tax-related identity theft and refund fraud.
Providing quality taxpayer service is a critical component
of the IRS's efforts to help the taxpaying public understand
their tax obligation while making it easier to participate in
the tax system. The Committee notes that the IRS has
flexibility in how it allocates user fees as well as transfer
authority among appropriations accounts. In fiscal year 2015,
the IRS allocated fewer user fees to Taxpayer Services,
representing about a 75 percent decline from fiscal year 2014,
while increasing user fees to its Enforcement and Operations
Support accounts. The Consolidated Appropriations Act of 2016
provided an additional $290,000,000 to the IRS appropriations
accounts, of which the IRS spent $178,422,000 to improve the
customer service representative level of service rate from the
Taxpayer Services and Operations Support accounts. The
Committee encourages the IRS to use resources available through
user fee revenues to augment the direct discretionary
appropriation for Taxpayer Services to enhance filing and
account services to taxpayers and resolution of identity theft
cases.
Future State Vision.--As part of the IRS's Future State
vision, taxpayers will have a variety of service options with
an emphasis on online tools and support, and will be able to
obtain service when and where they want it. According to the
Taxpayer Assistance Blueprint, taxpayers generally prefer self-
assisted services, such as those found on the IRS Web site, for
tasks like getting a form or a publication or getting
information on their refund. Taxpayers prefer assisted
services, such as those available by telephone or at IRS's
Taxpayer Assistance Centers [TACs], for more complex
interactive tasks like responding to a notice. Overall, several
factors influence which service channel taxpayers prefer to
use, including the specific type of service sought, demographic
characteristics, channel awareness, channel access, taxpayer
attitudes, and previous behavior. The National Taxpayer
Advocate recommended that the IRS make its Future State plan
public and seek comments from taxpayers, practitioners, and
others. To date, the IRS has not done so. The Committee is
concerned about IRS's rush to be a digital agency in light of
the breach to ``Get Transcript'' which resulted in having to
take the service offline.
The Committee is troubled by recent TIGTA reporting
findings that the IRS failed to identify and assist all
individuals potentially affected by the Get Transcript breach.
Specifically, TIGTA found that the IRS failed to send over
620,000 notification letters and place identity theft markers
on those taxpayer accounts. The IRS also failed to issue IP
PINs and provide free credit monitoring to over 79,000
individuals potentially affected by the breach. Although the
IRS responded that it has since taken action to send
notification letters and flag taxpayer accounts, the IRS did
not do so until the conclusion of the 2016 filing season thus
leaving those accounts at an increased risk of fraud. Further,
the IRS did not take action to issue IP PINs to the subset of
potentially affected individuals. The Committee strongly
encourages the IRS to take the necessary steps in responding to
all of TIGTA's recommendations, including adapting a consistent
policy for flagging taxpayer accounts and providing the
necessary protections particularly in light of the IRS's re-
launch of Get Transcript and other online applications.
The Committee is pleased that the IRS is engaged with
Treasury's Digital Service Team in working towards establishing
a secure re-launch of ``Get Transcript'' and future online
self-service functionality for taxpayers. However, the
Committee is troubled that the successful completion rate for
accessing ``Get Transcript'' and other online service functions
is expected to be low. Not all taxpayers have mobile phones or
can pass a financial verification [IRS internal employee
testing found a 3 in 4 pass rate). The Committee directs the
IRS to submit a written report, prepared in consultation with
the National Taxpayer Advocate, to the Senate and House
Committees on Appropriations, the Senate Committee on Finance,
and the House Committee on Ways and Means that among other
things describes the usage of and future plans for online
taxpayer accounts, including the number and percentage of
taxpayers who attempted to create an account and were unable to
do so, describes at which stage the taxpayers failed to meet
authentication requirements or stopped trying, and includes a
demographic analysis of the taxpayers who succeeded in and
failed at creating online accounts, including income, family
size, and geographic location. For taxpayers who were
successful in creating an online account, the report should
also describe the frequency and purpose of use, and the type of
transaction. This report is due 1 year from the date on which
the online account is made available for public use. The
Committee further expects the IRS to keep the Committee
informed of its reevaluation of the secure access process and
its access rates over time.
Telephone Level of Service.--The Committee acknowledges
that telephonic access to the IRS is important to promoting
voluntary compliance. IRS has stated that sustained reductions
in funding have led to a long-term decline in the telephone
level of service. The Consolidated Appropriations Act of 2016
provided an additional $290,000,000 to the IRS. IRS utilized
$176,622,000 of this investment in Taxpayer Services to achieve
a 65 percent LOS during the filing season and 47 percent for
the full year. The Committee is pleased with the level of
service reported during the filing season and expects the IRS
to allocate its fiscal year 2017 appropriated resources in a
manner that reflects taxpayer services as a top priority.
Taxpayer Assistance Centers.--IRS Taxpayer Assistance
Centers have traditionally served as a local resource to
taxpayers, where they can ask pre-filing questions, obtain
forms or publications, and resolve post-filing or other account
issues. Forms have also been available through the Tax Forms
Outlet Programs [TFOP] at local libraries, post offices, and
other community sites. TACs play an important role in meeting
the needs of underserved taxpayers, including rural, elderly,
minority, disabled and low-income populations However, of the
over 380 TACs locations operating nationally, 67 TACs are
currently staffed by only one person, resulting in extremely
inconsistent service and effective closures of many offices due
to staff attrition and other issues. In addition, the IRS
estimates that the number of taxpayers it will assist at its
TACs will continue to decrease. The IRS assisted 5.6 million
taxpayers in fiscal year 2015 and plans to assist 4.7 million
taxpayers in fiscal year 2016, which represents a 16 percent
decline from fiscal year 2015.
The Committee is concerned with a growing number TAC
closures and long wait times. In response, the IRS has said
that taxpayers can get answers to many of their tax questions,
tax forms and publications and much more by visiting IRS.gov.
The shift to Internet-based services is a key element of the
IRS's ``Future State'' plans, yet a Pew Research Center study
published in 2015 found the percentage of American adults who
do not use the Internet is about 16 percent, and the Taxpayer
Advocate has cited other research showing large percentages of
Americans who are not comfortable conducting financial
transactions online. The IRS ``Future State'' vision does not
offer any clear plan to provide efficient, cost-effective in-
person or telephone service to taxpayers with pre-filing and
post-filing questions.
Additionally, the IRS also made abrupt and significant
changes to the TFOP, and the forms and instructions available
in participating libraries, post offices and some congressional
offices. Citing the need for further cost savings, the IRS
reduced by more than half the number of forms and instructions
sent through the TFOP program and with little notice prior to
tax season. For underserved taxpayers including rural, elderly,
minority, disabled and low-income populations these programs
and services are often their only options to receive assistance
or guidance from the IRS. The IRS, like all Federal agencies,
face difficult decisions while operating in an austere fiscal
environment. However, the IRS's decision to reduce taxpayer
services has disproportionally impacted underserved taxpayers
making it difficult to for them to efficiently and accurately
pay their annual taxes. The Committee agrees with the National
Taxpayer Advocate and encourages the IRS to serve walk-in
taxpayers in addition to taxpayers with advance appointments
and utilize compliance personnel within commuting distance
(including revenue agents and revenue officers) to handle
overflow taxpayer demand, particularly during the filing
season; accept tax payments from taxpayers without appointments
and date-stamp returns for walk-in taxpayers who so request
(e.g., a date-stamp may be needed to get a lien release or
otherwise to show proof of filing by a particular date); and
maintain a stock of Form 1040-series forms and instructions
particularly during the filing season that taxpayers may pick
up without charge. The Committee notes that in Filing Season
2015 the IRS discontinued distribution of printed Publication
17. The Committee notes that there is a cost associated with
printing and mailing publications for every paper filer but
does not agree with the IRS's decision to discontinue access to
taxpayers that rely on Publication 17. Therefore, the Committee
directs the IRS to maintain a stock of Publication 17 in TACs,
including participating libraries and post offices and provide
the publication free of charge to taxpayers who request it by
phone.
Rural Service Delivery Issues.--Given the significant wait
times and deteriorating rate of response for assistance
provided through the national toll-free line, it is imperative
that the IRS offer personal and local taxpayer assistance. The
Committee notes with concern that both the overall number of
TACs declined and the number of TACs currently staffed with
only one employee continues to increase, often resulting in
effective closures of the sites. While the IRS has created
virtual customer service sites in some locations, the technical
and financial requirements of these sites have not been made
widely available.
The Committee is concerned that the actions taken by the
IRS and the proposed ``Future State'' of service leave rural
taxpayers reliant on paid preparers or unable to obtain timely
and accurate assistance with pre- and post-filing questions.
The Committee notes that the IRS has not sought congressional
or public comment on its plans or offered any alternatives to
meet the needs of taxpayers. To rectify this situation, the
Committee directs the IRS to hold a public forum in the
affected community before closing any TAC and notify the Senate
and House Committees on Appropriations. In addition, the IRS is
directed to report to the Committee the strategic plan to
improve all taxpayer services for rural, elderly, minority,
disabled and low-income populations, including specific plans
on its decisionmaking process for closing TACs and how it plans
to provide alternative services. As part of this strategic
planning process, the IRS is further directed to outline its
plans for soliciting and incorporating public input into its
``Future State'' planning.
IRS Impersonation Scams.--According to TIGTA, more than
950,000 Americans have been targeted by an IRS impersonation
scam, with 12,000 to 13,000 people submitting complaints every
week as of December 2015. Additionally, more than 6,400
Americans have lost a total of at least $36,500,000 as of May
2016 to this scam. Given the ubiquitous nature of this scam,
the Committee commends the work that TIGTA has done thus far to
combat these scams and encourages IRS to work with TIGTA on
ways to increase awareness of this scam.
The IRS has once again lost credibility with taxpayers by
going against its own policy on initiating contact with
taxpayers. The IRS has stated publicly on numerous occasions
that the real IRS will not initiate contact with taxpayers by
phone, email, text or social media to ask for personal or
financial information. Just after issuing these notices, in
response to a Taxpayer Advocate public forum, the IRS admitted
that during some audits the IRS may contact the taxpayer or
their representative by phone to schedule an appointment to
begin the audit. The Committee expects the IRS to take a stance
on its policy to initiate contact with taxpayers and not
deviate from this policy. The Committee also expects the IRS to
educate taxpayers on exactly how and when they should expect to
hear from the IRS so that taxpayers know what to expect. The
IRS should also ensure that protocols for its outsourced tax
collection services are equally protective of taxpayers and
their rights.
Taxpayer Services in Alaska and Hawaii.--Given the remote
distance of Alaska and Hawaii from the U.S. mainland and the
difficulty experienced by Alaska and Hawaii taxpayers in
receiving needed tax assistance by the national toll-free line,
it is imperative that the Taxpayer Advocate Service Centers in
these States are appropriately staffed and capable of resolving
taxpayer problems of the most complex nature. The Committee
directs the IRS to continue to staff each Taxpayer Advocate
Service Center in each of these States with a Collection
Technical Advisor and an Examination Technical Advisor in
addition to the current complement of office staff.
Community Volunteer Income Tax Assistance.--The Volunteer
Income Tax Assistance [VITA] and Tax Counseling for the Elderly
[TCE] programs are an important aspect of IRS efforts to
provide income tax preparation assistance programs for
underserved taxpayers, including rural, elderly, disabled,
English as a second language, American Indian, and low-income
taxpayers. According to the National Taxpayer Advocate, in
fiscal year 2015, VITA and TCE programs prepared approximately
3.58 million returns, an increase of about 10 percent over
fiscal year 2013 levels, before the IRS eliminated return
preparation at the TACs. With the elimination of tax return
preparation services at TACs, it is critical that the IRS
provide adequate support for VITA and TCE sites so that
taxpayers can obtain free tax return preparation assistance to
meet their reporting obligations and comply with the tax laws.
The Committee highlights a 2013 TIGTA recommendation for VITA
and TCE volunteer instructors, return preparers, audit
reviewers, and site coordinators to complete intake/interview
and quality review training annually. The Committee urges the
IRS to ensure that the sites are equipped with sufficient and
properly trained volunteers.
Taxpayer Survey.--The Committee believes that effective tax
administration requires that taxpayers understand from the
outset what they need to do to comply with the tax laws, and
that effective taxpayer service is key to taxpayer compliance
and building public trust in the IRS. Accordingly, the
Committee supports the National Taxpayer Advocate's development
and delivery of a survey to determine the willingness and
ability of individual taxpayers to obtain and utilize IRS
taxpayer service, and to identify the extent to which IRS
services and practices promote or serve as barriers to tax
compliance. The Committee supports the work undertaken by the
National Taxpayer Advocate and the IRS in developing the
Services Priority Project, a method of ranking core taxpayer
service offerings by value to the taxpayer and value to the
IRS. The Committee believes this ranking tool and the survey
results will assist the IRS and Congress in allocating IRS
resources in the most effective and cost-efficient manner. The
Committee directs the IRS to submit a written report, prepared
in consultation with the National Taxpayer Advocate, to the
Senate and House Committees on Appropriations, the Senate
Committee on Finance, and the House Committee on Ways and Means
that provides recommendations for optimizing taxpayer service
offerings based on the Service Priorities Project, ranking
methodology for major taxpayer service activities developed
collaboratively by the Wage & Investment Operating Division and
the Taxpayer Advocate Service.
ENFORCEMENT
Appropriations, 2016.................................... $4,860,000,000
Budget estimate, 2017................................... 4,984,919,000
Committee recommendation................................ 4,860,000,000
PROGRAM DESCRIPTION
The Enforcement appropriation provides for the examination
of tax returns, both domestic and international; the
administrative and judicial settlement of taxpayer appeals of
examination findings; technical rulings; monitoring employee
pension plans; determining qualifications of organizations
seeking tax-exempt status; examining tax returns of exempt
organizations; enforcing statutes relating to detection and
investigation of criminal violations of the 31 internal revenue
laws; identifying underreporting of tax obligations; securing
unfiled tax returns; and collecting unpaid accounts.
COMMITTEE RECOMMENDATION
The Committee recommends $4,860,000,000 for enforcement
activities for fiscal year 2017.
Combating Refund Fraud and Identity Theft.--Tax-related
identity theft continues to plague the IRS. The Committee is
deeply alarmed at the scale of tax fraud connected to identity
theft and at the continued absence of a solution to protect tax
filers from fraud. The data breach to IRS's Get Transcript and
identity protection personal identification number [IP PIN]
service highlights the importance of the need to mitigate
identity theft and combat refund fraud. TIGTA has consistently
ranked protection of taxpayer data as one of the highest
priority challenges facing the IRS while GAO has reported on
persistent deficiencies in IRS's internal controls. To provide
relief to victims of identity theft, the IRS began issuing IP
PINs to eligible taxpayers in fiscal year 2011. IRS's policy
was to mail IP PINs to eligible taxpayers but for those that
lost their IP PIN, IRS provided a Web-service to retrieve this
pin. IRS abruptly suspended this service due to security
weakness that allowed criminals to retrieve an already assigned
IP PIN and a file fraudulent tax return using that IP PIN. In a
report issued in November 2015, TIGTA found IRS's online Get
Transcript and IP PIN applications provided only single-factor
authentication despite NIST standards requiring multifactor
authentication for high-risk applications. The IRS now knows
that the authentication risk was in fact high to both the IRS
and taxpayers and should have required multifactor
authentication. The Committee directs the IRS to establish, as
a top priority, stronger security measures to protect all tax
filers before identity theft occurs, as well as reliable
measures to protect tax filers who experience identity theft.
The IRS should specifically consider the recommendations of the
Treasury Inspector General for Tax Administration, GAO, and the
national taxpayer advocate, including recommendations for
multi-factor authentication and other measures to ensure a more
secure online process for Americans to file taxes free from
threat of theft, and to report back to the Committee on
Appropriations within 90 days, documenting its plans to address
this problem.
In the 2015 report to Congress, The National Taxpayer
Advocate has reported that the IRS has grappled to find the
best approach for working identity theft cases. As of the end
of September 2015, the IRS had over 600,000 identity theft
[IDT] cases with taxpayer impact in its inventory, up nearly
150 percent from September 2014. In fiscal year 2015, the IRS
changed course and reorganized its identity theft victim
assistance functions, centralizing them under one umbrella
within the Wage and Investment [W&I] division. The National
Taxpayer Advocate recommended that identity theft victims with
multiple issues should be assigned a sole IRS contact person
who would interact with them throughout and oversee the
resolution of the case, no matter how many different IRS
functions need to be involved behind the scenes. Identity theft
victims must substantiate their identity with the IRS, file
various forms, and wait months or even years to receive their
tax refunds and unwind the account issues. Recognizing the
pervasive and growing problem of tax-related identity theft and
understanding the need to assist taxpayers with this issue in a
simple and timely manner, the Committee directs the IRS to
assign cases of identity theft victims with a sole point of
contact at the IRS regardless of the many IRS functions that
may need to be involved in order to resolve the issue for the
taxpayer and report on the full cycle time for resolving IDT
cases.
The Committee is deeply concerned about recent testimony
from the IRS Commissioner during a Senate Finance Committee
hearing that the IRS doesn't inform victims when illegal
immigrants use their Social Security numbers to obtain
employment and then file false information on their W-2 forms.
The IRS Commissioner responded that the agency does not take
enforcement actions against illegal immigrants who use other
people's Social Security numbers to get jobs and then file
their tax returns using their own IRS-issued individual
taxpayer identification numbers. Soon thereafter, the IRS
stated it would reverse its standard operating procedure by
January 2017, when the IRS will begin informing victims of
employment-related identity fraud. The Committee believes these
victims deserve greater transparency. The Committee notes that
an amendment to the Taxpayer Protection Act of 2016 was
recently introduced that requires the IRS to notify victims of
employment-related identity theft.
Processing of Applications for Tax-Exempt Status.--The
Committee strongly believes that meaningful, transparent, and
sustained corrective action is warranted to restore any erosion
of public trust in the IRS, strengthen the agency, and prevent
any recurrence of the circumstances that led to the use of
inappropriate case screening criteria in the handling of
applications for certain tax-exempt groups based on their
political beliefs. In March 2015, TIGTA assessed IRS's actions
in response to its 2013 recommendations to improve the
identification and processing of applications for tax-exempt
status involving political campaign intervention TIGTA's report
found that IRS implemented significant changes to the process
for reviewing applications for tax-exempt status. The Committee
notes language was included in the Consolidated Appropriations
Act of 2016 restricting the use of Federal funds to develop new
IRS regulations covering section 501(c)(4) and that the same
language is continued in this bill.
Preventing Payroll Tax Fraud.--The Committee recognizes
that many employers outsource payroll and related tax duties to
third-party payroll service providers to help assure filing
deadlines and deposit requirements are met and streamline
business operations. While most payroll service providers are
trustworthy, failures can pose devastating financial setbacks
for multiple clients, particularly small businesses. The
Committee is aware that the National Taxpayer Advocate has
recommended an array of practical solutions to address this
persistent problem, including more effective early detection of
potential fraud; registration, certification, and bonding
requirements for third-party payroll tax services; restrictions
on changing addresses of record; and greater consideration of
offers in compromise to assist defrauded businesses with relief
from tax liability. The Committee retains an administrative
provision enacted for fiscal year 2016 which requires that the
IRS issue a notice of confirmation of any address change
relating to an employer making employment tax payments; that
such notice shall be sent to both the employer's former and new
address, and requires that an officer or employee of the IRS
shall give special consideration to an offer-in-compromise from
a taxpayer who has been the victim of fraud by a third party
payroll tax preparer.
Prisoner Tax Refund Fraud.--The Committee is concerned
about growth in tax refund fraud. In 2014, TIGTA reported that
refund fraud associated with prisoner Social Security numbers
remained a significant problem for tax administration.
According to a September 2014 TIGTA report, the number of
fraudulent tax returns filed using a prisoner's Social Security
number that were identified by IRS increased from approximately
37,000 tax returns in calendar year 2007 to more than 137,000
tax returns in calendar year 2012. The refunds claimed on these
tax returns increased from $166,000,000 to $1,000,000,000. The
Committee looks forward to reviewing the results of TIGTA's
report underway on IRS's efforts to address prisoner fraud.
Earned Income Tax Credit Fraud.--GAO has highlighted the
persistent problems with improper earned income tax credit
[EITC] payments for years, and it is a factor underlying their
designation of IRS Enforcement of Tax Laws as a high-risk area.
The Office of Management and Budget has declared the Earned
Income Tax Credit Program to be the only IRS revenue program
fund at high risk for improper payments. The IRS estimates that
23.8 percent ($15,600,000,000) of EITC payments made in fiscal
year 2015 were paid in error. According to the Department of
the Treasury, the complexity of the tax law around the EITC and
the significant annual turnover within the participating
population makes it difficult to set meaningful improper
payment reduction targets. The Committee is concerned that
billions of dollars are wasted every year because the IRS has
little ability to monitor overpayments or prevent EITC payments
to ineligible recipients. The Committee is encouraged by the
IRS's efforts to convene an EITC Summit as it seeks input on
ways to reduce EITC noncompliance from stakeholders. The
Committee believes a coordinated and comprehensive approach is
needed to reduce erroneous EITC payments and looks forward to
hearing the suggestions provided during the Summit.
Addressing Fraud and Filing Errors in Refundable Credit
Programs.--In addition to the EITC, the Department of Treasury
required the IRS to evaluate the fiscal year 2015 improper
payment risk for two other large refundable credits, the
Additional Child Tax Credit [ACTC] and the American Opportunity
Tax Credit [AOTC]. TIGTA recently reported that the potential
ACTC improper payment rate for fiscal year 2015 was 24.2
percent, with potential improper payments totaling
$5,700,000,000, and estimated that the potential AOTC improper
payment rate for fiscal year 2015 was 30.7 percent, with
potential improper payments totaling $1,800,000,000.
Affordable Care Act Fraud.--ACA created a refundable tax
credit, referred to as the Premium Tax Credit [PTC], to assist
individuals with the cost of their health insurance premiums.
When enrolling in a Qualified Health Plan through the Exchange,
eligible individuals can choose to have some or all of the PTC
paid in advance to their insurance company as payment of their
monthly premium or can wait to claim all of the PTC on their
tax return. TIGTA recently performed a review to evaluate the
effectiveness of IRS's verification of PTC claims during the
2015 filing season. The Committee agrees with TIGTA that
reviews should be completed for those tax returns TIGTA
identified for which the IRS incorrectly verified the PTC claim
to ensure that individuals receive the correct PTC amount and
IRS does not pay more than taxpayers are entitled to receive.
The Committee supports TIGTA's recommendation that PTC
claimants should be verified before tax refunds are issued.
Misclassification of Contractors.--The Committee remains
concerned that staffing within the IRS's SS-8 Program,
responsible for making determinations as to a worker's Federal
employment tax status, has not kept pace with the record and
sustained SS-8 filings during the past six filing seasons. The
Committee believes that the IRS SS-8 Program is critical to
ensuring that workers are classified correctly, identifying
leads for employment tax exams and criminal investigations, and
combating the underreporting of employment taxes that
contributes significantly to the tax gap. The Committee
believes it is important, given the growing workload, that the
IRS maintain sufficient staffing at all SS-8 processing
locations. The Committee directs the IRS to notify the House
Appropriations Committee, the Senate Appropriations Committee,
the House Ways and Means Committee, and the Senate Finance
Committee prior to making any staffing reductions or
reallocations within the SS-8 processing program.
OPERATIONS SUPPORT
Appropriations, 2016.................................... $3,638,446,000
Budget estimate, 2017................................... 4,030,695,000
Committee recommendation................................ 3,638,446,000
PROGRAM DESCRIPTION
The Operations Support appropriation provides for overall
planning and direction of the IRS including Infrastructure,
including administrative services related to space and housing,
rent and space alterations, buildings service maintenance,
guard services, and non-IT equipment; Shared Services and
Support, including policy management, IRS-wide support for
research, strategic planning, communications and liaison,
finance, human resources, equity, diversity, and inclusion
programs, printing, postage, business systems planning,
corporate training, legal services, procurement, and employee
benefit programs; and Information Services, including the
staffing, equipment, and related costs to manage, maintain, and
operate the information systems critical to the support of tax
administration programs.
COMMITTEE RECOMMENDATION
The Committee recommends $3,638,446,000 for Operations
Support for fiscal year 2017.
The Committee notes that half of IRS's total requested
increase for fiscal year 2017 funding is for Operations
Support. The Committee remains concerned that the IRS continues
to supplement this appropriations account with the vast
majority of its user fees. The Consolidated Appropriations Act
of 2016 provided an additional $290,000,000 to the IRS
appropriations accounts, of which the IRS spent $95,442,000 to
invest in cybersecurity. As previously discussed, the Committee
remains concerned about the IRS's ability to safeguard taxpayer
data and is concerned about the amount of funding to support
the re-launch of the Get Transcript application. The Committee
expects the IRS to keep the Committee informed of the costs
going forward to support the re-launch of Get Transcript as
well as other online service applications.
Information Technology Reports.--Given the size and
significance of IRS's IT investments and the challenges
inherent in successfully delivering these complex IT
investments, it is important that the Committees on
Appropriations be provided reliable information to assist with
their oversight responsibilities. While IRS has been submitting
quarterly reports on the performance of its IT investments to
the Committees, we are concerned that these reports have yet to
address GAO's recommendations for cumulative reporting and
providing a quantitative measure of scope. In addition, we
believe the reports could provide information that would allow
the Committees to better gauge the performance of IRS's IT
investments. The Committee directs the IRS to submit quarterly
reports on particular major project activities to the
Committees on Appropriations and the GAO, no later than 30 days
following the end of each calendar quarter in fiscal year 2017.
The Committee expects the reports to include detailed, plain
English explanations of the cumulative expenditures and
schedule performance to date, specified by fiscal year; the
costs and schedules for the previous 3 months; the anticipated
costs and schedules for the upcoming 3 months; and the total
expected costs to complete the following major information
technology project activities: IRS.gov; Returns Remittance
Processing; EDAS/IPM; Information Returns and Document
Matching; E-services; Taxpayer Advocate Service Integrated
System; Affordable Care Act administration; and other projects
associated with significant changes in law. In addition, the
quarterly report should clearly explain when the project was
started; the expected date of completion; the percentage of
work completed as compared to planned work; the current and
expected state of functionality; any changes in schedule; and
current risks unrelated to funding amounts and mitigation
strategies. The Committee directs the Department of the
Treasury to conduct a semi-annual review of IRS's IT
investments to ensure the cost, schedule, and scope goals of
the projects are transparent. The Committee further directs GAO
to review and provide an annual report to the Committees
evaluating the cost and schedule of activities of all major IRS
information technology projects for the year, with particular
focus on the projects about which the IRS is submitting
quarterly reports to the Committee.
BUSINESS SYSTEMS MODERNIZATION
Appropriations, 2016.................................... $290,000,000
Budget estimate, 2017................................... 343,415,000
Committee recommendation................................ 290,000,000
PROGRAM DESCRIPTION
The Business Systems Modernization appropriation provides
resources for the planning and capital asset acquisition of
information technology to modernize the IRS business systems.
COMMITTEE RECOMMENDATION
The Committee recommends $290,000,000 for Business Systems
Modernization [BSM] for fiscal year 2017.
The Committee is concerned about IRS's plan to invest in
new IT capabilities for the future given the recent data breach
to IRS's Get Transcript and IP PIN application. In addition,
the Committee remains concerned about exceeding planned
investment costs, projects that fall behind schedule, and
providing secure digital communications to taxpayers.
The Committee expects the IRS to continue to submit
quarterly reports to the Committees and GAO during fiscal year
2017, no later than 30 days following the end of each calendar
quarter. The Committee expects the reports to include detailed,
plain English explanations of the cumulative expenditures and
schedule performance to date, specified by fiscal year; the
costs and schedules for the previous 3 months; the anticipated
costs and schedules for the upcoming 3 months; and the total
expected costs to complete CADE2 and MeF. In addition, the
quarterly report should clearly explain when the project was
started; the expected date of completion; the percentage of
work completed as compared to planned work; the current and
expected state of functionality; any changes in schedule; and
current risks unrelated to funding amounts and mitigation
strategies. The Committee directs the Department of the
Treasury to conduct a semi-annual review of CADE2 and MeF to
ensure the cost, schedule, and scope goals of the projects are
transparent. The Committee further directs GAO to review and
provide an annual report to the Committee evaluating the cost
and schedule of CADE2 and MeF activities for the year, as well
as an assessment of the functionality achieved.
The Committee remains concerned that IRS systems
modernization, by its nature, is a high-risk endeavor, and
appreciates that the IRS has, in recent years, satisfied the
majority of developmental milestones planned for completion
early, under budget, or within 10 percent of cost and schedule
estimates. Because of the tendency for certain projects or
components to exceed schedule and cost estimates, the Committee
urges IRS management to maintain close routine scrutiny of cost
and schedule factors.
ADMINISTRATIVE PROVISIONS--INTERNAL REVENUE SERVICE
(INCLUDING TRANSFER OF FUNDS)
The Committee includes 13 administrative provisions as
follows:
Section 101 continues a provision allowing the IRS to
transfer up to 5 percent of any appropriation made available to
the agency in fiscal year 2017 to any other IRS appropriation,
upon the advance approval of the Committees on Appropriations.
Section 102 continues a provision maintaining a training
program in taxpayers' rights and cross-cultural relations.
Section 103 continues a provision requiring the IRS to
institute and enforce policies and procedures, which will
safeguard the confidentiality of taxpayer information and
protect taxpayers against identity theft.
Section 104 continues a provision directing that funds
shall be available for improved facilities and increased
staffing to support sufficient and effective 1-800 help line
services for taxpayers including enhanced response time to
taxpayer communications, particularly for victims of tax-
related crimes.
Section 105 continues a provision requiring videos produced
by the IRS to be approved in advance by the Service-Wide Video
Editorial Board.
Section 106 continues a provision requiring the IRS to
issue notices to employers of any address change request and to
give special consideration to offers in compromise for
taxpayers who have been victims of payroll tax preparer fraud.
Section 107 continues a provision that prohibits the use of
funds by the IRS to target United States citizens for
exercising any right guaranteed under the First Amendment to
the Constitution.
Section 108 continues a provision that prohibits the use of
funds by the IRS to target groups for regulatory scrutiny based
on their ideological beliefs.
Section 109 continues a provision that requires the IRS to
comply with procedures on conference spending as recommended by
the Treasury Inspector General for Tax Administration.
Section 110 continues provision that prohibits the use of
funds to give bonuses or hire former employees without
consideration of conduct and compliance with Federal tax laws.
Section 111 continues a provision that prohibits the use of
funds to violate the confidentiality of tax returns.
Section 112 continues a provision which prohibits funds for
pre-populated returns.
Section 113 continues a provision which provides
$290,000,000 to be used solely for measurable improvements in
the customer service representative level of service rate, to
improve the identification and prevention of refund fraud and
identity theft, and to enhance cybersecurity to safeguard
taxpayer data.
Administrative Provisions--Department of the Treasury
(INCLUDING TRANSFERS OF FUNDS)
The Committee includes 13 administrative provisions, as
follows:
Section 114 authorizes certain basic services within the
Treasury Department in fiscal year 2017, including purchase of
uniforms; maintenance, repairs, and cleaning; purchase of
insurance for official motor vehicles operated in foreign
countries; and contracts with the Department of State for
health and medical services to employees and their dependents
serving in foreign countries.
Section 115 authorizes transfers, up to 2 percent, between
Departmental Offices, Office of Inspector General, Special
Inspector General for the Troubled Asset Relief Program,
Financial Crimes Enforcement Network, Bureau of the Fiscal
Service, and Alcohol and Tobacco Tax and Trade Bureau,
appropriations under certain circumstances.
Section 116 authorizes transfers, up to 2 percent, between
the Internal Revenue Service and the Treasury Inspector General
for Tax Administration under certain circumstances.
Section 117 prohibits the Department of the Treasury and
the Bureau of Engraving and Printing from redesigning the $1
Federal Reserve Note.
Section 118 authorizes the Secretary of the Treasury to
transfer funds from Salaries and Expenses, Bureau of the Fiscal
Service, to the Debt Collection Fund as necessary to cover the
costs of debt collection. Such amounts shall be reimbursed to
the Salaries and Expenses account from debt collections
received in the Debt Collection Fund.
Section 119 requires prior approval for the construction
and operation of a museum by the United States Mint.
Section 120 prohibits the merger of the United States Mint
and the Bureau of Engraving and Printing without prior approval
of the committees of jurisdiction.
Section 121 authorizes the Department's intelligence
activities.
Section 122 permits the Bureau of Engraving and Printing to
use not to exceed $5,000 from the Industrial Revolving Fund for
reception and representation expenses.
Section 123 requires the Secretary of the Treasury to
develop an annual Capital Investment Plan.
Section 124 continues a provision that requires a report on
the Department's Franchise Fund.
Section 125 continues a provision that requires the
Department to submit a report on economic warfare and financial
terrorism.
Section 126 continues a provision which prohibits the
Department from finalizing any regulation related to the
standards used to determine the tax-exempt status of a
501(c)(4) organization.
TITLE II
EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO THE
PRESIDENT
The White House
SALARIES AND EXPENSES
Appropriations, 2016.................................... $55,000,000
Budget estimate, 2017................................... 55,214,000
Committee recommendation................................ 55,214,000
PROGRAM DESCRIPTION
The ``Salaries and Expenses'' account of The White House
provides staff assistance and administrative services for the
direct support of the President. The White House also serves as
the President's representative before the media. In accordance
with 3 U.S.C. 105, The White House office also supports and
assists the activities of the spouse of the President.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $55,214,000
for The White House, Salaries and Expenses. The recommendation
is equal to the budget request.
Exports to Africa.--The Committee acknowledges efforts by
the Executive Office of the President [EOP] to designate a
senior United States Government official to lead efforts to
significantly increase United States exports to Africa as
directed under section 1206(d) of Public Law 113-66 and urges
the EOP to continue to leverage resources provided in this and
other acts to carry out the intent of the directive.
Office of National AIDS Policy.--The Committee directs the
Executive Office of the President [EOP] to allocate sufficient
resources to continue the robust operation of the Office of
National AIDS Policy [ONAP]. ONAP is responsible for leading
implementation of the National HIV/AIDS Strategy and holding
Federal agencies and local jurisdictions accountable for
implementing effective, scalable, and cost-effective
interventions for HIV prevention and care through commissioning
policy research, consulting with the community, and helping
jurisdictions modernize data systems and other activities to
align with the strategy. The Committee directs the
administration to continue to coordinate a governmentwide
effort to achieve the goals of the National HIV/AIDS strategy.
Executive Residence at the White House
OPERATING EXPENSES
Appropriations, 2016.................................... $12,723,000
Budget estimate, 2017................................... 12,723,000
Committee recommendation................................ 12,723,000
PROGRAM DESCRIPTION
These funds provide for the care, maintenance, repair,
alteration, refurnishing, improvement, air-conditioning,
heating, and lighting of the White House and the official and
ceremonial functions of the President.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $12,723,000
for the Executive Residence at the White House. The Committee
recommendation is equal to the fiscal year 2016 enacted level.
The bill also continues certain restrictions on reimbursable
expenses for use of the Executive Residence.
White House Repair and Restoration
Appropriations, 2016.................................... $750,000
Budget estimate, 2017................................... 750,000
Committee recommendation................................ 750,000
PROGRAM DESCRIPTION
This account funds the repair, alteration, and improvement
of the Executive Residence at the White House. A separate
account was established in fiscal year 1996 to program and
track expenditures for the capital improvement projects at the
Executive Residence at the White House.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $750,000 for
White House Repair and Restoration, equal to the fiscal year
2016 enacted level and the budget request.
Council of Economic Advisers
SALARIES AND EXPENSES
Appropriations, 2016.................................... $4,195,000
Budget estimate, 2017................................... 4,201,000
Committee recommendation................................ 4,201,000
PROGRAM DESCRIPTION
The Council of Economic Advisers analyzes the national
economy and its various segments, advises the President on
economic developments, recommends policies for economic growth
and stability, appraises economic programs and policies of the
Federal Government, and assists in the preparation of the
annual Economic Report of the President to Congress.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $4,201,000 for
salaries and expenses of the Council of Economic Advisers. This
amount is equal to the budget request.
National Security Council and Homeland Security Council
SALARIES AND EXPENSES
Appropriations, 2016.................................... $12,800,000
Budget estimate, 2017................................... 13,069,000
Committee recommendation................................ 12,800,000
PROGRAM DESCRIPTION
The National Security Council advises the President in
integrating domestic, foreign, and military policies related to
national security, and the Homeland Security Council advises
the President in coordinating homeland security-related
policies across the Government.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $12,800,000
for the salaries and expenses of the National Security Council
and the Homeland Security Council. This amount is equal to the
fiscal year 2016 enacted level.
Office of Administration
SALARIES AND EXPENSES
Appropriations, 2016.................................... $96,116,000
Budget estimate, 2017................................... 96,116,000
Committee recommendation................................ 96,116,000
PROGRAM DESCRIPTION
The Office of Administration provides administrative
services to the EOP. These services, defined by Executive Order
12028 of 1977, include financial, personnel, library and
records services, information management systems support, and
general office services.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $96,116,000
for the Office of Administration for fiscal year 2017. This
amount is equal to the fiscal year 2016 enacted level and the
budget request.
The Committee's recommendation includes not to exceed
$12,760,000 to remain available until expended for
modernization of the information technology infrastructure
within the Executive Office of the President.
The Committee directs the Office of Administration to place
a top priority on the implementation of comprehensive policies
and procedures for the preservation of all records, including
electronic records such as emails, videos, and social
networking communication, consistent with the requirements of
the Presidential Records Act, the Federal Records Act, and
other pertinent laws. The Office of Administration shall
continue to work closely with the National Archives and Records
Administration [NARA] to ensure the full and complete
maintenance and formatting of electronic records that will
eventually be turned over to NARA. The Committee expects the
Office of Administration to keep the Committee fully apprised
of funding needs related to records preservation and retention.
Office of Management and Budget
salaries and expenses
Appropriations, 2016.................................... $95,000,000
Budget estimate, 2017................................... 100,725,000
Committee recommendation................................ 95,000,000
PROGRAM DESCRIPTION
The Office of Management and Budget [OMB] assists the
President in the discharge of his budgetary, management, and
other executive responsibilities.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $95,000,000
for the Office of Management and Budget, which is equal to the
fiscal year 2016 enacted level.
The Committee directs OMB to utilize sufficient resources
to respond in a timely and complete manner to requests from
Congress, in particular requests related to program funding and
operations.
Cybersecurity.--The Committee recognizes actions that were
taken by some Federal agencies to improve their cybersecurity
posture under the Federal CIO's 30-day Cybersprint. The
Committee looks forward to learning more about actions taken
since this initiative.
Intellectual Property Enforcement Coordinator.--The
Committee continues to strongly support the Office of the
Intellectual Property Enforcement Coordinator [IPEC], including
its important work promoting private sector efforts to reduce
online copyright infringement. The Committee encourages the
Office to work with U.S.-based Internet registrars and
registries to ensure that parties are taking voluntary,
cooperative action against illegal activities online. Given the
growing threat of cybercrime and the link between intellectual
property theft and other forms of cybercrime, including malware
and hacking, OMB should provide the Office with an additional
full-time equivalent position focused on the area of
cybercrime. Further, the Committee requests that the Annual
Report required under the Pro IP Act of 2008 (15 U.S.C. 8114)
on Intellectual Property Enforcement activities of the Federal
Government specifically outlines online copyright piracy
enforcement activities in the next report.
Social Cost of Carbon.--OMB should not approve any
regulations in fiscal year 2017 using the May 2013, revised
July 2016, estimates for the social cost of carbon until a new
working group is convened. The working group should include the
relevant agencies and affected stakeholders, reexamine the
social cost of carbon using the best available science, and
revise the estimate using an accurate discount rate and
domestic estimate in accordance with Executive Order 12866 and
OMB Circular A-4. To increase transparency, the working group
should solicit public comments prior to finalizing any updates.
Governmentwide General Provisions.--The Committee is
concerned that all agencies may not be aware of, and therefore,
not implementing, the governmentwide general provisions in
title VII of the bill. The Committee directs OMB to issue
guidance within 60 days of enactment, notifying all agencies of
their responsibilities to adhere to these requirements. The
Committee expects OMB to reinforce awareness among all Federal
agencies of the existence of, and content of, the
governmentwide general provisions.
Conferences.--The Committee continues a provision in title
VII of the bill requiring agencies to report annually to their
inspector general or senior ethics officer on conferences
costing more than $100,000 and to notify the same official of
conferences costing more than $20,000 within 15 days of a
conference. The provision also prohibits funding for any travel
and conference activities that are not in compliance with OMB
Memorandum M-12-12 or any subsequent revisions to that
memorandum. Agencies shall report conference expenditures in
excess of $100,000 on agency Web sites and OMB shall notify the
Committee annually in writing of any agencies failing to report
this information.
Travel.--The Committee supports OMB's efforts to reduce
costs across Federal agencies by eliminating unnecessary travel
expenses. As part of OMB Memorandum M-12-12, Federal agencies
were directed to reduce their travel expenses by 30 percent
below the fiscal year 2010 level. The Committee recognizes the
need for continued oversight of Federal travel expenses and
notes OMB's efforts to work with agencies to increase
transparency and make smarter travel decisions. In a report to
the Committee, OMB noted that the OMB Memorandum M-12-12
transparency model is strong, that the spending thresholds
established in OMB Memorandum M-12-12 are appropriate and that
results have demonstrated that these new policies and
procedures are having an impact on how agencies plan and
execute conferences. The Committee also noted that OMB
recognizes that travel and conferences have a role to play in
agencies carrying out their missions and that there are
situations in which physical co-location is necessary and that
OMB has worked diligently to ensure that the policies and
controls implemented through OMB Memorandum M-12-12 or any
subsequent revision do not curtail travel or conferences that
are mission critical and are executed in a cost-effective
manner.
Contractor Bonuses.--The Committee is concerned about the
occurrence of contract incentives being given to contractors
that fail to meet specified cost, schedule, or performance
criteria. Although OMB has issued guidance to reduce wasteful
spending on contractor bonuses, this issue has not been fully
addressed. The bill includes new contractor payment
restrictions to require all departments and agencies funded by
this act to link all contracts that provide awards to
successful acquisition outcomes and to prohibit funds to pay
for award or incentive fees for contractors with below
satisfactory performance.
Enforcement of Cybersecurity Standards.--The Committee
directs OMB to report not later than February 1 of each year to
the Committees on Appropriations of the House and Senate and
the Committee on Homeland Security and Governmental Affairs in
the Senate and the Homeland Security Committee in the House
regarding the use of budget authority to enforce cybersecurity
standards. The report shall detail specific actions the
Director has taken pursuant to section 3553(a)(5) of title 44,
United States Code, including any actions taken pursuant to
section 11303(b)(5) of title 40, United States Code.
Scientific Instruments.--The Committee is aware that the
Office of Management and Budget is in the process of
implementing a ``category management'' initiative that will
help improve the procurement process and utilize the Federal
Government's buying power to maximize value for taxpayers and
reduce duplication. In some cases, individual agencies engage
in smaller scale procurements of scientific instruments when
opportunities may exist to procure the appropriate instruments
governmentwide on a larger scale, leading to cost savings to
the Federal Government. The Committee notes that research at
Federal agencies may also require specific instrumentation for
research that cannot take advantage of government purchasing
economies of scale. The Committee encourages OMB, as it
implements category management, to review agencies' practices
for procuring scientific instruments, particularly smaller
scale procurements, and ensure that the new category management
system provides a mechanism for regular evaluation of
scientific instrument purchases.
Good Guidance.--The Committee directs the Office of
Management and Budget [OMB] to remind Federal agencies that it
must follow OMB's Final Bulletin for Agency Good Guidance
Practices when issuing guidance. It directs OMB to update its
Good Guidance Practices to require all agencies to conduct a
retrospective review of guidance documents regularly with
public input that the agency solicits, to determine if any of
its guidance is duplicative, outdated, ineffective,
insufficient, or excessively burdensome and needs to be
modified, streamlined, or repealed. It also directs OMB to send
a letter to all agencies to require them to review the
Government Accountability Report, Regulatory Guidance
Processes: Selected Departments Could Strengthen Internal
Control and Dissemination Practices, and determine whether the
agency is meeting the recommendations made in the report, and
if needed, adjust their practices accordingly to meet the
recommendations.
Office of National Drug Control Policy
SALARIES AND EXPENSES
Appropriations, 2016.................................... $20,047,000
Budget estimate, 2017................................... 19,274,000
Committee recommendation................................ 19,274,000
PROGRAM DESCRIPTION
The Office of National Drug Control Policy [ONDCP],
established by the Anti-Drug Abuse Act of 1988, and
reauthorized by Public Law 109-469, is charged with developing
policies, objectives, and priorities for the National Drug
Control Program. In addition, ONDCP administers the High
Intensity Drug Trafficking Areas program, the Drug-Free
Communities Support Program, and several other related
initiatives.
This account provides funding for personnel compensation,
travel, and other basic operations of the Office, and for
general policy research to support the formulation of the
National Drug Control Strategy.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $19,274,000
for ONDCP's salaries and expenses.
Interdiction.--The Committee supports efforts to reduce
illegal drug use in the United States. In order to stem the
tide of illegal drugs coming into this country, interdiction
must be a priority. A core component of our national drug
control strategy must be effective coordination with other
Federal agencies to intercept and disrupt foreign drug
shipments before they get to the United States. Additionally,
the United States should work with international partners,
particularly those in Mexico, to eradicate poppy fields and
disrupt illicit drug production.
FEDERAL DRUG CONTROL PROGRAMS
HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM
(INCLUDING TRANSFERS OF FUNDS)
Appropriations, 2016.................................... $250,000,000
Budget estimate, 2017................................... 196,410,000
Committee recommendation................................ 255,000,000
PROGRAM DESCRIPTION
The High Intensity Drug Trafficking Areas [HIDTA] program
was established by the Anti-Drug Abuse Act of 1988 (Public Law
100-690) and the Office of National Drug Control Policy's
reauthorization (Public Law 109-469) to provide assistance to
Federal, State, and local law enforcement entities operating in
those areas most adversely affected by drug trafficking.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $255,000,000
for the HIDTA program. The Committee directs that funding shall
be provided for the existing HIDTAs at no less than the fiscal
year 2016 level.
ONDCP is directed to consult with the HIDTAs in advance of
deciding programmatic spending allocations for discretionary
(supplemental) funding.
The Committee recommendation specifies that up to
$2,700,000 may be used for auditing services and associated
activities.
The Committee directs that HIDTA funds be transferred to
the appropriate drug control agencies expeditiously and
includes provisions in the bill to help prevent delay.
Transferred funds that are no longer necessary for their
original purpose may be transferred back to the HIDTA program.
HIDTA funds should not be used to supplant existing support
for ongoing Federal, State, or local drug control operations
normally funded out of the operating budgets of each agency.
ONDCP is directed to withhold all HIDTA funds from a State
until such time as a State or locality has met its financial
obligation.
Heroin and Opioid Abuse Initiatives.--The Committee is
gravely concerned about the public health crisis unfolding
across the United States as the rate of overdose deaths
involving heroin and prescription opioid use has reached record
levels. According to the Centers for Disease Control and
Prevention [CDC], the rate of deaths from drug overdoses
involving opioid pain relievers and heroin has increased by 200
percent since 2000. The Committee urges the Office of National
Drug Control Policy [ONDCP] to consult with the High Intensity
Drug Trafficking Areas [HIDTAs] to disrupt the distribution,
use, and prevalence of heroin and opioid abuse. Within 90 days
of enactment of this act, the Committee directs ONDCP to report
to the Committee on how the administration intends to address
the distribution, use, and prevalence of heroin and opioid
abuse and ONDCP's coordination with other Federal agencies,
Drug-Free Community coalitions, and HIDTA partners to combat
this public health crisis.
OTHER FEDERAL DRUG CONTROL PROGRAMS
(INCLUDING TRANSFERS OF FUNDS)
Appropriations, 2016.................................... $109,810,000
Budget estimate, 2017................................... 98,480,000
Committee recommendation................................ 109,871,000
PROGRAM DESCRIPTION
The Anti-Drug Abuse Act of 1988 (Public Law 100-690), and
the Office of National Drug Control Policy Reauthorization Act
(Public Law 109-469) established this account to be
administered by the Director of the Office of National Drug
Control Policy. The funds appropriated to the program support
high-priority drug control programs and may be transferred to
drug control agencies.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $109,871,000
for Other Federal Drug Control Programs. Within this amount,
the Committee provides the following funding levels:
------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Drug-Free Communities Support Program................... $95,000,000
National Community Anti-Drug Coalition training..... 2,000,000
Drug court training, including standards training, and 2,000,000
technical assistance...................................
Anti-doping activities.................................. 9,500,000
World Anti-Doping Agency [WADA]......................... 2,121,000
Activities as authorized by Public Law 109-469, section 1,250,000
1105...................................................
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Drug-Free Communities Support Program.--ONDCP directs the
Drug-Free Communities Support Program [DFCSP] in partnership
with the Substance Abuse and Mental Health Services
Administration. DFCSP provides dollar-for-dollar matching
grants of up to $125,000 to local coalitions that mobilize
their communities to prevent youth alcohol, tobacco, illicit
drug, and inhalant abuse. Such grants support coalitions of
youth; parents; media; law enforcement; school officials;
faith-based organizations; fraternal organizations; State,
local, and tribal government agencies; healthcare
professionals; and other community representatives. The DFCSP
enables these coalitions to strengthen their coordination and
prevention efforts, encourage citizen participation in
substance abuse reduction efforts, and disseminate information
about effective programs. The Committee provides $95,000,000
for the continuation of the DFCSP.
The Committee includes a provision in the bill directing
ONDCP to provide $2,000,000 of DFCSP funds for training and
related purposes as authorized by section 4 of Public Law 107-
82, as amended by Public Law 109-469.
Unanticipated Needs
Appropriations, 2016.................................... $800,000
Budget estimate, 2017................................... 1,000,000
Committee recommendation................................ 800,000
PROGRAM DESCRIPTION
These funds enable the President to meet unanticipated
exigencies in support of the national interest, security, or
defense.
COMMITTEE RECOMMENDATION
The Committee recommends $800,000, which is the same as the
fiscal year 2016 enacted level.
Presidential Transition Administrative Support
Appropriations, 2016....................................................
Budget estimate, 2017................................... $7,582,000
Committee recommendation................................ 7,582,000
PROGRAM DESCRIPTION
This account supports the Office of Administration for
expenses associated with the transition to the next
Presidential administration.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $7,582,000 for
Presidential Transition Administrative Support, which is equal
to the budget estimate. The account was not funded in fiscal
year 2016 because there was no Presidential transition in that
year.
Information Technology Oversight and Reform
(INCLUDING TRANSFERS OF FUNDS)
Appropriations, 2016.................................... $30,000,000
Budget estimate, 2017................................... 35,200,000
Committee recommendation................................ 30,000,000
PROGRAM DESCRIPTION
The goal of the Information Technology Oversight and Reform
[ITOR] program is to drive value in Federal IT investments by
making smarter investment decisions and reducing waste,
duplication, and inefficient uses of IT through data-driven
investment management, deliver digital services to 25 Federal
agencies, and protect IT assets and information by improving
oversight of Federal cybersecurity practices.
COMMITTEE RECOMMENDATION
The Committee recommends $30,000,000 for the ITOR program.
The Committee appreciates the administration's comprehensive
and innovative approach to improving IT development processes
and maximizing efficiencies across the Federal IT portfolio.
The Federal Government plans to invest approximately
$89,000,000,000 during fiscal year 2017 in IT development for a
wide variety of capabilities, spanning, for example, from basic
desktop computing to a searchable database for investigating
terrorist financing activity. However, it is clear to the
Committee that this spending on IT does not produce
$89,000,000,000 in value for the public as a result of IT
projects that arrive late or over budget. The Committee notes
that Federal IT projects have failed because of a lack of
oversight and governance. ITOR funding in fiscal year 2017 will
help drive value in Federal IT investments by making smarter
investment decisions and reducing waste, duplication, and
inefficient uses of IT, delivering digital services, improving
oversight of Federal cybersecurity practices, and providing IT
training.
IT Dashboard.--The Committee supports the management and
enhancement of the IT Dashboard, a Web site that includes cost,
schedule, and performance data for major IT investments. The
Committee directs the EOP to make PortfolioStat, which is the
process where OMB and agencies examine IT portfolios to
identify duplicative spending and reduce costs, and other
technology reform savings and performance metrics available to
the public on the IT dashboard. OMB shall ensure that current
and accurate data on these investments are available throughout
the entire year. The Committee directs OMB to use ITOR funding
to work with agencies to implement the Federal Information
Technology Acquisition Reform Act [FITARA], which is designed
to improve Federal IT acquisitions. Specifically, the Committee
directs OMB to report quarterly to the Committee on
Appropriations on the cost savings, avoidance, and reductions
in duplicative IT investments.
Digital Service.--The Committee supports the formation of
U.S. Digital Service [USDS] and their role in collaborating
with Federal agencies to implement digital and technology
practices on the 10 highest priority IT investment projects
that are under development across Federal agencies. The
Committee encourages USDS to use the increase in ITOR funding
to become more fully engaged on each one of the projects. In
addition, the Committee encourages OMB to provide detail on how
the 10 highest priority IT investment projects are selected and
report quarterly to the Committee on Appropriations on the
status of these projects.
Cybersecurity.--Recent cybersecurity breaches have
demonstrated the need for the Federal Government to safeguard
data and improve its cybersecurity posture. The Committee
expects OMB's E-Gov Cyber will provide oversight of agency
cybersecurity programs and focus on agencies' performance
relative to the Cybersecurity Cross-Agency Priority [CAP] Goal,
which was designed to assess agency implementation of basic
cybersecurity principles to ensure a common Federal baseline
for combating cyber threats. It is clear to the Committee that
the Federal Government lags in IT security best practices. For
example, Strong Authentication remains a key challenge, with
civilian agencies reporting 42 percent of their goal. According
to GAO [GAO-15-725T], ``While recent government-wide
initiatives hold promise for bolstering the Federal
cybersecurity posture, it is important to note that no single
technology or set of practices is sufficient to protect against
all these threats. A `defense in depth' strategy is required
that includes well-trained personnel, effective and
consistently applied processes, and appropriately implemented
technologies. While agencies have elements of such a strategy
in place, more needs to be done to fully implement it and to
address existing weaknesses. In particular, implementing GAO
and Inspector General recommendations will strengthen agencies'
ability to protect their systems and information, reducing the
risk of a potentially devastating cyber attack.'' The Committee
expects OMB to consult with GAO on the Cybersecurity CAP goal
key performance indicators and metric targets. In addition, the
Committee expects OMB as part of its 30-day Cybersecurity
Sprint, to submit its Federal Civilian Cybersecurity Strategy
to GAO for review. The Committee encourages OMB to report on
its efforts to ensuring agencies having robust protections in
place to address cyber security threats, including the recent
breach at OPM.
Special Assistance to the President
SALARIES AND EXPENSES
Appropriations, 2016.................................... $4,228,000
Budget estimate, 2017................................... 4,228,000
Committee recommendation................................ 4,228,000
PROGRAM DESCRIPTION
This appropriation provides for staff and expenses to
enable the Vice President to provide assistance to the
President in connection with the performance of executive
duties and responsibilities. These funds also support the
official activities of the spouse of the Vice President. The
Vice President also has a staff funded by the Senate to assist
him in the performance of his legislative duties.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $4,228,000 for
special assistance to the President. This amount is equal to
the fiscal year 2016 enacted level and the budget request.
Official Residence of the Vice President
OPERATING EXPENSES
(INCLUDING TRANSFER OF FUNDS)
Appropriations, 2016.................................... $299,000
Budget estimate, 2017................................... 299,000
Committee recommendation................................ 299,000
PROGRAM DESCRIPTION
This account supports the care and operation of the Vice
President's residence on the grounds of the Naval Observatory.
These funds specifically support equipment, furnishings, dining
facilities, and services required to perform and discharge the
Vice President's official duties, functions, and obligations.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $299,000 for
the official residence of the Vice President. This amount is
equal to the budget request and the fiscal year 2016 enacted
level.
Administrative Provisions--Executive Office of the President and Funds
Appropriated to the President
(INCLUDING TRANSFER OF FUNDS)
Section 201 continues a provision that provides flexibility
in the use of funds in accounts under the EOP.
Section 202 requires the Office of Management and Budget
[OMB] to report on the costs of implementation the Dodd-Frank
Wall Street Reform and Consumer Protection Act (Public Law 111-
203).
Section 203 requires the Director of the OMB to include a
statement of budgetary impact with any Executive order issued
during fiscal year 2017.
TITLE III
THE JUDICIARY
PROGRAM DESCRIPTION
Established under Article III of the Constitution, the
judicial branch of Government is a separate but equal branch.
The Federal judiciary consists of the Supreme Court, United
States Courts of Appeals, District Courts, Bankruptcy Courts,
Court of International Trade, Court of Federal Claims, and
several other entities and programs. The organization of the
judiciary, the district and circuit boundaries, the places of
holding court, and the number of Federal judges are legislated
by the Congress and signed into law by the President.
The Committee's recommended funding levels support the
Federal judiciary's role of providing equal justice under the
law and include sufficient funds to support this critical
mission. The recommended funding level includes the salaries of
judges and support staff and the operation and security of our
Nation's courts.
The judicial branch is subject to the same funding
constraints facing the executive and legislative branches. It
is imperative that the Federal judiciary devote its resources
primarily to the retention of staff. Further, it is also
important that the judiciary contain controllable costs such as
travel, construction, and other expenses.
Supreme Court of the United States
SALARIES AND EXPENSES
Appropriations, 2016.................................... $75,838,000
Budget estimate, 2017................................... 76,668,000
Committee recommendation................................ 76,668,000
PROGRAM DESCRIPTION
The United States Supreme Court consists of nine justices
appointed under Article III of the Constitution of the United
States, one of whom is appointed as Chief Justice of the United
States. The Supreme Court acts as the final arbiter in the
Federal court system.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $76,668,000
for the salaries and expenses of personnel, and the costs of
operating the Supreme Court, excluding the care of the building
and grounds. The recommendation is $830,000 above the fiscal
year 2016 funding level and equal to the budget request.
CARE OF THE BUILDING AND GROUNDS
Appropriations, 2016.................................... $9,964,000
Budget estimate, 2017................................... 14,868,000
Committee recommendation................................ 14,868,000
PROGRAM DESCRIPTION
Care of the Building and Grounds, for expenditure by the
Architect of the Capitol, provides for the structural and
mechanical care of the United States Supreme Court Building and
Grounds, including maintenance and operation of mechanical,
electrical, and electronic equipment.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $14,868,000
for personnel and other services related to the Supreme Court
building and grounds, which is supervised by the Architect of
the Capitol. The recommendation is $4,904,000 above the fiscal
year 2016 funding level and equal to the budget request. The
increase is for costs associated with the continuation of the
exterior stone restoration project that includes the completion
of the west facade and the ongoing restoration of the north,
south, and east facades.
United States Court of Appeals for the Federal Circuit
salaries and expenses
Appropriations, 2016.................................... $30,872,000
Budget estimate, 2017................................... 30,108,000
Committee recommendation................................ 30,108,000
PROGRAM DESCRIPTION
The United States Court of Appeals for the Federal Circuit
was established on October 1, 1982 under Article III of the
Constitution. The court was formed by the merger of the United
States Court of Customs and Patent Appeals and the appellate
division of the United States Court of Claims. The court
consists of 12 judges who are appointed by the President, with
the advice and consent of the Senate. Judges are appointed to
the court under Article III of the Constitution of the United
States.
The Federal Circuit has nationwide jurisdiction in a
variety of subjects, including international trade, Government
contracts, patents, certain claims for money from the United
States Government, Federal personnel, and veterans' benefits.
Appeals to the court come from all Federal district courts, the
United States Court of Federal Claims, the United States Court
of International Trade, and the United States Court of Veterans
Appeals. The court also takes appeals of certain administrative
agencies' decisions, including the Merit Systems Protection
Board, the Board of Contract Appeals, the Board of Patent
Appeals and Interferences, and the Trademark Trial and Appeals
Board. Decisions of the United States International Trade
Commission, the Office of Compliance of the United States
Congress, and the Government Accountability Office Personnel
Appeals Board are also reviewable by the court.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $30,108,000.
The recommendation is $764,000 below the fiscal year 2016
funding level and the same as the budget request.
United States Court of International Trade
salaries and expenses
Appropriations, 2016.................................... $18,160,000
Budget estimate, 2017................................... 18,462,000
Committee recommendation................................ 18,462,000
PROGRAM DESCRIPTION
The United States Court of International Trade, located in
New York City, consists of nine Article III judges. The court
has exclusive nationwide jurisdiction over civil actions
brought against the United States, its agencies and officers,
and certain civil actions brought by the United States, arising
out of import transactions and the administration and
enforcement of the Federal customs and international trade
laws.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $18,462,000.
The recommendation is $302,000 above the fiscal year 2016
funding level and the same as the budget request.
Courts of Appeals, District Courts, and Other Judicial Services
SALARIES AND EXPENSES
Appropriations, 2016.................................... $4,918,969,000
Budget estimate, 2017................................... 5,045,785,000
Committee recommendation................................ 5,045,785,000
PROGRAM DESCRIPTION
Salaries and Expenses is one of four accounts that provide
total funding for the Courts of Appeals, District Courts, and
Other Judicial Services. In addition to funding the salaries of
judges and support staff, this account also funds the operating
costs of appellate, district, and bankruptcy courts, the Court
of Federal Claims, and probation and pretrial services offices.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $5,045,785,000
for salaries and expenses. The recommendation is $126,816,000
above the fiscal year 2016 funding level and the same as the
request.
The Committee appreciates the judiciary's ongoing efforts
to contain costs. For more than 10 years the judiciary has been
focused on cost containment and changes made to date have
reduced current and future costs for: rent, information
technology, magistrate judges, compensation of court staff and
law clerks, law books, probation and pretrial services
supervision work, and other areas. The Committee understands
that further cost containment initiatives will expand the use
of shared administrative services among the courts of appeals,
district courts, bankruptcy courts, probation and pretrial
services offices, and Federal defender organizations to reduce
duplicative human resources, procurement, financial management,
and information technology activities. The judiciary is also
exploring voluntary consolidation of offices and other longer-
term changes that would further reduce growth in personnel and
operational costs. Given the constrained Federal budget
environment, the Committee encourages the judiciary to continue
these cost-cutting efforts.
VACCINE INJURY COMPENSATION TRUST FUND
Appropriations, 2016.................................... $6,050,000
Budget estimate, 2017................................... 6,260,000
Committee recommendation................................ 6,260,000
PROGRAM DESCRIPTION
Enacted by the National Childhood Vaccine Injury Act of
1986 (Public Law 99-660), the Vaccine Injury Compensation
Program is a Federal no-fault program designed to resolve a
perceived crisis in vaccine tort liability claims that
threatened the continued availability of childhood vaccines
nationwide. The statute's primary intention is the creation of
a more efficient adjudicatory mechanism that ensures a no-fault
compensation result for those allegedly injured or killed by
certain covered vaccines. This program protects the
availability of vaccines in the United States by diverting a
substantial number of claims from the tort arena.
Not only did this act create a special fund to pay
judgments awarded under the act, but it also created the Office
of Special Masters within the United States Court of Federal
Claims to hear vaccine injury cases. The act stipulates that up
to eight special masters may be appointed for this purpose. The
special masters expenditures are reimbursed to the judiciary
for vaccine injury cases from a special fund set up under the
Vaccine Act.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $6,260,000.
The recommendation is $210,000 above fiscal year 2016 funding
level and the same as the budget request.
DEFENDER SERVICES
Appropriations, 2016.................................... $1,004,949,000
Budget estimate, 2017................................... 1,056,326,000
Committee recommendation................................ 1,054,468,000
PROGRAM DESCRIPTION
The Defender Services program ensures the right to counsel
guaranteed by the Sixth Amendment, the Criminal Justice Act (18
U.S.C. 3006A(e)) and other congressional mandates for those who
cannot afford to retain counsel and other necessary defense
services. The Criminal Justice Act provides that courts appoint
counsel from Federal public and community defender
organizations or from a panel of private attorneys established
by the court. The Defender Services program helps to maintain
public confidence in the Nation's commitment to equal justice
under the law and ensures the successful operation of the
constitutionally based adversary system of justice by which
Federal criminal laws and federally guaranteed rights are
enforced.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of
$1,054,468,000. The recommendation is $49,519,000 above the
fiscal year 2016 funding level and $1,858,000 below the budget
request. In the fiscal year 2016 enacted bill, the Committee
provided funding as requested by the judiciary, to begin
implementation of new staffing formulas that will provide
additional staffing resources to Federal defender offices to
further improve the quality of representation to indigent
defendants accused of a Federal crime. The Committee's
recommendation supports a current services operating level for
the Defender Services program for fiscal year 2017 as well as
the continued implementation of the staffing formulas for
Federal defender offices. The Committee is aware of concerns
expressed by some that there is an imbalance in training and
support resources available to Federal prosecutors versus
court-appointed counsel in Federal criminal cases. The
Committee expects the judiciary to address training and support
needs for the Defender Services program through the annual
budget process.
FEES OF JURORS AND COMMISSIONERS
Appropriations, 2016.................................... $44,199,000
Budget estimate, 2017................................... 43,723,000
Committee recommendation................................ 39,929,000
PROGRAM DESCRIPTION
This account provides for the statutory fees and allowances
of grand and petit jurors and for the compensation of jury and
land commissioners. Budgetary requirements depend primarily
upon the volume and the length of jury trials demanded by
parties to both civil and criminal actions and the number of
grand juries being convened by the courts at the request of the
United States Attorneys.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $39,929,000.
The recommendation is $4,261,000 below the fiscal year 2016
funding level and $3,794,000 below the request.
COURT SECURITY
(INCLUDING TRANSFERS OF FUNDS)
Appropriations, 2016.................................... $538,196,000
Budget estimate, 2017................................... 565,388,000
Committee recommendation................................ 565,388,000
PROGRAM DESCRIPTION
The Court Security appropriation was established in 1983
and funds the necessary expenses incident to the provision of
protective guard services, and the procurement, installation,
and maintenance of security systems and equipment for United
States courthouses and other facilities housing Federal court
operations, including building access control, inspection of
mail and packages, directed security patrols, perimeter
security provided by the Federal Protective Service, and other
similar activities as authorized by section 1010 of the
Judicial Improvement and Access to Justice Act (Public Law 100-
702).
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $565,388,000.
The recommendation is $27,192,000 above the fiscal year 2016
funding level and the same as the budget request.
The Committee recommendation includes funding for the
continued phased implementation of additional court security
officers at Federal courthouses as recommended by the U.S.
Marshals Service [USMS]. The USMS has recommended a new
staffing standard to increase the number of court security
officers by 346 between fiscal years 2016 and 2020 (an average
of approximately 69 per year) to further strengthen courthouse
security. The new officers will be posted in security control
rooms and at garage/loading docks at large courthouses as well
as at ``forward watch'' positions outside courthouse entrances
to identify and address threats earlier, before they gain entry
to the courthouse.
The Committee expects to continue to be kept apprised of
the judiciary's plans to address aging and failing physical
access control systems [PACS] at Federal courthouses
nationwide. These systems control access to facilities and
secure space for judges, authorized Federal employees, and
contractors. The Committee strongly supports secure Federal
courthouse facilities and the safety of judges, staff,
litigants and the public in those facilities. The Committee is
supportive of the judiciary's efforts to develop a
comprehensive plan to replace PACS systems and encourages the
judiciary to transmit to Congress budget requests for PACS
systems that address the judiciary's highest priority PACS
needs.
Administrative Office of the United States Courts
SALARIES AND EXPENSES
Appropriations, 2016.................................... $85,665,000
Budget estimate, 2017................................... 87,748,000
Committee recommendation................................ 87,748,000
PROGRAM DESCRIPTION
The Administrative Office [AO] of the United States Courts
was created in 1939 by an act of Congress. It serves the
Federal judiciary in carrying out its constitutional mission to
provide equal justice under the law. Beyond providing numerous
services to the Federal courts, the AO provides support and
staff counsel to the Judicial Conference of the United States
and its committees, and implements Judicial Conference policies
as well as applicable Federal statutes and regulations. The AO
is the focal point for communication and coordination within
the Federal judiciary and with Congress, the executive branch,
and the public on behalf of the judiciary.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $87,748,000.
This recommendation is $2,083,000 above the fiscal year 2016
funding level and the same as the budget request.
Federal Judicial Center
SALARIES AND EXPENSES
Appropriations, 2016.................................... $27,719,000
Budget estimate, 2017................................... 28,335,000
Committee recommendation................................ 28,335,000
PROGRAM DESCRIPTION
The Federal Judicial Center, located in Washington, DC,
improves the management of Federal judicial dockets and court
administration through education for judges and staff, and
research, evaluation, and planning assistance for the courts
and the Judicial Conference. The Center's responsibilities
include educating judges and other judicial branch personnel
about legal developments and efficient litigation management
and court administration. Additionally, the Center also
analyzes the efficacy of case and court management procedures
and ensures the Federal judiciary is aware of the methods of
best practice.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $28,335,000.
The recommendation is $616,000 above the fiscal year 2016
funding level and the same as the budget request.
United States Sentencing Commission
SALARIES AND EXPENSES
Appropriations, 2016.................................... $17,570,000
Budget estimate, 2017................................... 18,150,000
Committee recommendation................................ 18,150,000
PROGRAM DESCRIPTION
The United States Sentencing Commission establishes,
reviews, and revises sentencing guidelines, policies, and
practices for the Federal criminal justice system. The
Commission is also required to monitor the operation of the
guidelines and to identify and report necessary changes to the
Congress.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $18,150,000.
The recommendation is $580,000 above the fiscal year 2016
funding level and the same as the budget request.
Administrative Provisions--The Judiciary
(INCLUDING TRANSFERS OF FUNDS)
The Committee recommends the following administrative
provisions for the judiciary:
Section 301 allows the judiciary to expend funds for the
employment of experts and consultative services.
Section 302 allows the judiciary, subject to the
Committee's reprogramming procedures, to transfer up to 5
percent between appropriations, but limits to 10 percent the
amount that may be transferred into any one appropriation.
Section 303 limits official reception and representation
expenses incurred by the Judicial Conference of the United
States to no more than $11,000.
Section 304 grants the judicial branch the same tenant
alteration authorities as the executive branch.
Section 305 provides continued authority for a court
security pilot program.
Section 306 extends for 1 year the authorization of a
temporary judgeship in Kansas, Missouri, Alabama, Arizona,
Florida, New Mexico, Texas, California, and North Carolina.
Section 307 extends for 1 year the authorization of
temporary bankruptcy judgeships in Delaware, Florida, Michigan,
Puerto Rico and Virginia.
Section 308 is a new provision relating to a commission to
study the United States Court of Appeals for the Ninth Circuit.
TITLE IV
DISTRICT OF COLUMBIA
Federal Payments
FEDERAL FUNDS
The Appropriations Committees have a special relationship
with the District of Columbia that is unlike any other city in
the country. Under the National Capital Revitalization and
Self-Government Improvement Act of 1997, the Federal Government
is required to fund the court operations of the District of
Columbia, offender and defendant supervision, and defendant
representation. Title IV of this Act provides Federal payments
totaling $614,408,000 to meet these statutory obligations.
Title IV also includes $131,930,000 in other Federal payments
to fund initiatives in areas including education and security.
In addition, the United States Department of Justice provides
hundreds of United States Attorneys and Deputy United States
Marshals to prosecute local crimes and provide security at the
D.C. Superior Court. The Federal Bureau of Prisons houses
thousands of District of Columbia prisoners. Federal taxpayers
do not fund similar activities in any other city.
A total of $746,338,000 in Federal funds are estimated to
be available to the District of Columbia government, the
District of Columbia Courts, the District of Columbia Court
Services and Offender Supervision Agency, and other DC
entities. This is $16,495,000 above the fiscal year 2016
enacted level and $17,200,000 below the budget request.
FEDERAL PAYMENT FOR RESIDENT TUITION SUPPORT
Appropriations, 2016.................................... $40,000,000
Budget estimate, 2017................................... 40,000,000
Committee recommendation................................ 30,000,000
PROGRAM DESCRIPTION
The Resident Tuition Support program was created by the
District of Columbia College Access Act of 1999 (Public Law
106-98), expanded through the District of Columbia College
Access Improvement Act of 2002 (Public Law 107-157), and
amended and reauthorized through Public Law 110-97. The program
provides grants of up to $10,000 annually for undergraduate
District students to attend eligible public 4-year universities
and colleges nationwide. The grants are applied toward the cost
of the difference between in-State and out-of-State tuition.
Grants of up to $2,500 are provided for students to attend
private institutions in the DC metropolitan area, private
historically Black colleges and universities nationwide, and
public 2-year community colleges nationwide.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $30,000,000
for the resident tuition support program. The District of
Columbia can contribute local funds to this program if there is
demand for the program above the level of Federal funds
available.
Since inception, the Resident Tuition Support program has
awarded over $350,000,000 and assisted over 24,000 students
enroll in college. The program has also been expanded twice
while enrollment rates and the percentage of undergraduate
District students receiving the maximum $10,000 award have
fluctuated. According to the National Center for Education
Statistics reports on nationwide undergraduate enrollment,
``while total undergraduate enrollment increased by 37 percent
between 2000 and 2010, enrollment decreased by 4 percent
between 2010 and 2014. Undergraduate enrollment is projected to
increase 14 percent from 17.3 million to 19.8 million students
between 2014 and 2025.'' The 10-year accomplishment report of
the Resident Tuition Support program noted that many grantees
drop out on their path to a degree and 41 percent graduate from
college in 6 years. According to the most recent data
available, about 60 percent of students nationwide who began
seeking a bachelor's degree in 2008 completed that degree
within 6 years, compared to approximately 51 percent in the
Resident Tuition Support program. It is important for the
program to realize a return on its investment, wherein every
grantee earns a college degree. Given the changing landscape in
nationwide college enrollment and graduation rates, the
Committee directs GAO to conduct a review of the D.C. TAG
program. This review should assess, to the extent possible,
trends in eligibility, enrollment, performance and outcomes,
and describe the steps taken to provide support to current
participants. The review should also consider other available
resources for the program and provide an analysis of
scholarship programs offered by other municipalities in the
United States, including a comparison of participant
requirements, administrative expenses, outcomes and funding
sources.
In addition, the Committee directs that the State
Superintendent shall include, as a component of the fiscal year
2018 budget justification submission, an annual update of the
District's efforts, including research findings, to enhance the
retention, persistence, and graduation rates of program
participants, including early awareness and readiness
initiatives to promote academic college preparation, guidance,
and other support mechanisms and partnerships. The budget
justification should also describe the status and effectiveness
of cost containment measures instituted.
FEDERAL PAYMENT FOR EMERGENCY PLANNING AND SECURITY COSTS IN THE
DISTRICT OF COLUMBIA
Appropriations, 2016.................................... $13,000,000
Budget estimate, 2017................................... 34,895,000
Committee recommendation................................ 34,895,000
PROGRAM DESCRIPTION
This Federal payment provides funds for emergency planning
and security costs related to the presence of the Federal
Government in the District of Columbia and surrounding
jurisdictions.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $34,895,000,
for emergency planning and security costs, which is equal to
the request. The Committee recommendation includes $14,900,000
to meet the District's regular, expected annual planning and
security costs and $19,995,000 for one-time costs associated
with the 2017 Presidential Inauguration. The 2017 request
includes a greater amount for the District's inaugural expenses
than for prior inauguration years. In addition, as of June 2016
the District has over $24 million in unobligated balances in
this account that remain available until expended. As has been
the case with past inaugurations, any shortfall between the
request and actual inaugural expenses incurred by the District
can be covered through the use of existing unobligated balances
in the District's emergency planning and security account, the
account used to fund DC's inaugural expenses; a subsequent
appropriation; or funding from other Federal sources.
The Committee directs the District of Columbia to submit a
detailed budget justification for emergency planning and
security with its funding request for fiscal year 2018. The
Committee further directs the District of Columbia to submit,
within 60 days of the end of fiscal year 2017, a report to the
House and the Senate Committees on Appropriations detailing the
purposes and amounts expended using the funds, particularly
noting any deviation from the original proposed spending.
FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA COURTS
Appropriations, 2016.................................... $274,401,000
Budget estimate, 2017................................... 274,681,000
Committee recommendation................................ 274,681,000
PROGRAM DESCRIPTION
Under the National Capital Revitalization and Self-
Government Improvement Act of 1997 (Public Law 105-33, title
XI), the Federal Government is required to finance the District
of Columbia Courts, the judicial branch of the District of
Columbia government. This Federal payment to the District of
Columbia Courts funds the operations of the District of
Columbia Court of Appeals, Superior Court, the Court System,
and the Capital Improvement Program. By law, the annual budget
includes estimates of the expenditures for the operations of
the Courts prepared by the Joint Committee on Judicial
Administration, the Court's policy-making body, as well as the
President's recommendation for funding the Courts' operations.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment to the District
of Columbia Courts of $274,681,000, which is $280,000 above the
fiscal year 2016 enacted level. This amount includes
$14,414,000 for the Court of Appeals, $125,961,000 for the
Superior Court, $75,585,000 for the Court System, and
$58,721,000 for capital improvements to courthouse facilities.
FEDERAL PAYMENT FOR DEFENDER SERVICES IN DISTRICT OF COLUMBIA COURTS
Appropriations, 2016.................................... $49,890,000
Budget estimate, 2017................................... 49,890,000
Committee recommendation................................ 49,890,000
PROGRAM DESCRIPTION
The District of Columbia Courts appoint and compensate
attorneys to represent persons who are financially unable to
obtain such representation. The Defender Services programs
provide counsel for indigent persons who are charged with
criminal offenses, for family proceedings involving child
abuse, neglect, and termination of parental rights, and for
guardianship proceedings for protection of mentally
incapacitated individuals and minors whose parents are
deceased.
In addition to legal representation, these programs provide
indigent persons with services such as transcripts of court
proceedings, expert witness testimony, foreign and sign
language interpretation, and investigations and genetic
testing.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $49,890,000
for Defender Services in the District of Columbia Courts. This
is the same as the fiscal year 2016 enacted level and the same
as the budget request.
FEDERAL PAYMENT TO THE COURT SERVICES AND OFFENDER SUPERVISION AGENCY
FOR THE DISTRICT OF COLUMBIA
Appropriations, 2016.................................... $244,763,000
Budget estimate, 2017................................... 248,008,000
Committee recommendation................................ 248,008,000
PROGRAM DESCRIPTION
The Court Services and Offender Supervision Agency [CSOSA]
for the District of Columbia is an independent Federal agency
created by the National Capital Revitalization and Self-
Government Improvement Act of 1997 (Public Law 105-33, title
XI). CSOSA acquired the operational responsibilities for the
former District agencies in charge of probation and parole, and
houses the Pretrial Services Agency within its framework. The
mission of CSOSA is to increase public safety, prevent crime,
reduce recidivism, and support the fair administration of
justice in close collaboration with the community.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $248,008,000,
which is the same as the request. Of this amount, $65,287,000
is designated for the Pretrial Services Agency and $182,721,000
is designated for the Community Supervision Program.
The Community Supervision Program's [CSP] challenge in
effectively supervising and reducing recidivism among the
offender population is substantial. Many offenders have
significant needs, are a high risk to public safety and are
prone to recidivate. Offenders who fail to successfully
complete supervision and/or recidivate place an enormous burden
on the offender's family, the community and the entire criminal
justice system.
The Committee notes that CSP research of offender outcomes
has shown that, compared to the total supervised population,
offenders who recidivate are more likely to be younger, test
positive for drugs, have unstable housing, lack employment, be
supervised as part of a mental health caseload, and be assessed
by CSP at the highest risk levels. The Committee supports the
CSP's efforts to continue to adjust its programs and reallocate
resources toward effective supervision of the highest risk and
highest need offenders.
The Committee also notes the efforts of the Pretrial
Services Agency to ensure public safety through high quality
risk-assessment, supervision, testing and treatment procedures.
Funds provided will help support efforts to improve
identification of defendants who pose a higher risk of pretrial
failure, enhance supervision and oversight of these defendants,
and work with local partners to expand services and support for
persons with substance dependence and mental health needs. In
addition, the bill also includes a one-time increase for the
Pretrial Services Agency for the costs associated with
information technology requirements necessary for the
establishment of a comprehensive in-house synthetics testing
program. This funding will remain available until September 30,
2019. These resources will support redesign of the existing
drug management system to accommodate additional substances for
testing, including additional synthetics, and allow PSA to
provide critical trend information to enhance public safety.
FEDERAL PAYMENT TO THE PUBLIC DEFENDER SERVICE FOR THE DISTRICT OF
COLUMBIA
Appropriations, 2016.................................... $40,889,000
Budget estimate, 2017................................... 41,829,000
Committee recommendation................................ 41,829,000
PROGRAM DESCRIPTION
The Public Defender Service [PDS] for the District of
Columbia, an independent organization established by a District
of Columbia statute (16 D.C. Code 2-1601-1608), has a distinct
mission to provide and promote quality legal representation
services within the District of Columbia justice system. PDS
provides legal representation to indigent adults and children
facing loss of liberty and provides support in the form of
training, consultation, and legal reference services to members
of the local bar appointed as counsel in criminal, juvenile,
and mental health cases involving indigent individuals.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment to the Public
Defender Service for the District of Columbia of $41,829,000,
which is equal to the budget request.
FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA WATER AND SEWER AUTHORITY
Appropriations, 2016.................................... $14,000,000
Budget estimate, 2017................................... 14,000,000
Committee recommendation................................ 14,000,000
PROGRAM DESCRIPTION
Approximately one-third of the District of Columbia is
served by a combined sewer system, constructed by the Federal
Government in 1890, in which both sanitary waste and storm
water flow through the same pipes. When the collection system
or the Blue Plains treatment plant reach capacity, typically
during periods of heavy rainfall, the system is designed to
overflow the excess water. This mixture of sewage and storm
water runoff is discharged to the Anacostia and Potomac Rivers,
Rock Creek, and tributary waters between 60 and 75 times each
year. Under a judicial consent decree entered on March 23,
2005, the Water and Sewer Authority is undertaking a 20-year,
$2,600,000,000 sewer construction program to reduce combined
sewer overflows [CSO]. The Clean Rivers Project includes deep
underground storage tunnels, side tunnels to reduce flooding,
pump station rehabilitation, and the elimination of over a
dozen CSO outfalls along the Potomac and Anacostia Rivers and
Rock Creek. When completed in 2025, this project is expected to
vastly improve water quality and significantly reduce
contaminated discharges into and debris in our Nation's capital
waterways as well as improve the health of the Chesapeake Bay.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $14,000,000
to be matched by at least $14,000,000 provided by the Water and
Sewer Authority (DC Water), to continue implementation of the
Long-Term Combined Sewer Overflow Control Plan. This is the
same as the fiscal year 2016 enacted level.
FEDERAL PAYMENT TO THE CRIMINAL JUSTICE COORDINATING COUNCIL
Appropriations, 2016.................................... $1,900,000
Budget estimate, 2017................................... 2,000,000
Committee recommendation................................ 2,000,000
PROGRAM DESCRIPTION
The Criminal Justice Coordinating Council [CJCC] provides a
forum for District of Columbia and Federal law enforcement to
identify criminal justice issues and solutions, and improve the
coordination of their efforts. In addition, the CJCC developed
and maintains the Justice Integrated Information System which
provides for the sharing of information with Federal and local
law enforcement.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $2,000,000 to
CJCC. This is $100,000 above the fiscal year 2016 enacted level
and the same as the budget request.
The Committee directs the CJCC to submit annual performance
measures in an annual report to accompany the fiscal year 2018
budget justification, which should also describe progress made
on specific CJCC initiatives.
FEDERAL PAYMENT FOR JUDICIAL COMMISSIONS
Appropriations, 2016.................................... $565,000
Budget estimate, 2017................................... 585,000
Committee recommendation................................ 585,000
PROGRAM DESCRIPTION
The Judicial Nomination Commission [JNC] recommends a panel
of three candidates to the President for each judicial vacancy
in the District of Columbia Court of Appeals and Superior
Court. From the panel selected by the JNC, the President
nominates a person for each vacancy and submits his or her name
for confirmation to the Senate. The Commission on Judicial
Disabilities and Tenure [CJDT] has jurisdiction over all judges
of the Court of Appeals and Superior Court and makes
determinations as to whether a judge's conduct warrants
disciplinary action and whether involuntary retirement of a
judge for health reasons is warranted. In addition, the CJDT
conducts evaluations of judges seeking reappointment and judges
who retire and wish to continue service as a senior judge.
COMMITTEE RECOMMENDATION
The Committee recommends $585,000 as a Federal payment for
the judicial commissions, of which $275,000 is designated for
the Judicial Nomination Commission and $310,000 is designated
for the Commission on Judicial Disabilities and Tenure. This
amount is the same as the fiscal year 2016 enacted level and
the budget request. Funds shall remain available until
September 30, 2018.
FEDERAL PAYMENT FOR SCHOOL IMPROVEMENT
Appropriations, 2016.................................... $45,000,000
Budget estimate, 2017................................... 43,200,000
Committee recommendation................................ 45,000,000
PROGRAM DESCRIPTION
As authorized by Scholarships for Opportunity and Results
Act (SOAR Act) and as part of a three-part comprehensive
funding strategy, the District of Columbia receives funds for
District of Columbia Public Schools, Public Charter Schools and
Opportunity Scholarships. The intent of this comprehensive
funding approach was to ensure progress and improvement of DCPS
and public charter schools, while ensuring continued funding to
support the Opportunity Scholarship Program for students to
attend private schools.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $45,000,000
for school improvement which is the same as the fiscal year
2016 enacted level and $1,800,000 above the budget request.
These funds are allocated as follows: $15,000,000 for District
of Columbia Public Schools, $15,000,000 for Public Charter
Schools and $15,000,000 for Opportunity Scholarships.
The Administration proposed and the recommendation provides
$3,200,000, within the total provided, for the administrative,
parental assistance, student academic assistance, and
evaluation costs of the opportunity scholarship program. The
level of funding for these activities is above the levels
authorized by SOAR. However, the Committee supports the
Administration's request and believes that it is critical that
additional funding be provided to effectively administer the
program, to increase parental assistance and outreach, and to
provide academic assistance to students.
FEDERAL PAYMENT FOR THE D.C. NATIONAL GUARD
Appropriations, 2016.................................... $435,000
Budget estimate, 2017................................... 450,000
Committee recommendation................................ 450,000
PROGRAM DESCRIPTION
The Major General David F. Wherley, Jr. District of
Columbia National Guard Retention and College Access Program
provides tuition assistance for nonresident District of
Columbia National Guard members.
COMMITTEE RECOMMENDATION
The Committee recommends a Federal payment of $450,000 for
the D.C. National Guard designated for the Major General David
F. Wherley, Jr. District of Columbia National Guard Retention
and College Access Program. This amount is $15,000 above the
fiscal year 2016 enacted level and the same as the budget
request.
FEDERAL PAYMENT FOR HIV/AIDS PREVENTION
Appropriations, 2016.................................... $5,000,000
Budget estimate, 2017................................... 5,000,000
Committee recommendation................................ 5,000,000
PROGRAM DESCRIPTION
Based on the national HIV/AIDS case based reporting system,
the District has among the highest AIDS diagnosis rates in the
country. Currently, 2.5 percent of the population was diagnosed
and is living with HIV. The District has established an
evidence-based strategy of expanding routine HIV screening and
early diagnosis, linkage and retention into care and treatment
and population-level interventions that achieve large
prevention impact.
COMMITTEE RECOMMENDATION
The Committee recommendation includes a Federal payment of
$5,000,000 to support testing and treatment of HIV/AIDS.
FEDERAL PAYMENT FOR THE FEDERAL CITY SHELTER
Appropriations, 2016....................................................
Budget estimate, 2017................................... $9,000,000
Committee recommendation................................................
The budget requests a new special Federal payment to
redevelop a homeless shelter in the District of Columbia.
COMMITTEE RECOMMENDATION
The Committee is unable to support the request for a new
special Federal payment to the District of Columbia. The
Federal City Shelter, operated by the Community for Creative
Non-Violence, is owned by the District and maintained by the DC
Department of General Services. The Committee notes that both
the Office of the Mayor and the Council of the District of
Columbia are working on comprehensive plans to overhaul the
shelters in the District of Columbia and that both local funds
and other Federal funding sources may be available to address
housing needs.
District of Columbia Funds
The Committee recommends, for the operating expenses of the
District of Columbia, the amount as set forth in the enrolled
version of the Fiscal Year 2017 Budget Request Act of 2016,
District of Columbia Bill 21-668, as may be amended.
Budget Autonomy.--The Founding Fathers recognized the
importance of establishing a seat for the Federal Government.
Accordingly, article I, section 8 of the Constitution provides
that Congress exercises ``exclusive Legislation in all Cases
whatsoever'' in the District of Columbia. The Supreme Court has
held in the case of Palmore v. United States that this clause
vests Congress with ``plenary'' authority to exercise powers to
legislate for all matters in the District. Pursuant to this
Constitutional power, Congress enacted the District of Columbia
Home Rule Act in 1973. The District government holds only the
powers that Congress granted it through the Home Rule Act.
Though that act granted the District substantial powers of
local self-government, it expressly preserved Congressional
authority to review and affirmatively approve all District
obligations and expenditures. The Home Rule Act did not grant
the Government of the District of Columbia authority to change
the longstanding process through which the District Government
transmits its budget request to the President for submission to
Congress, with all amounts--local or otherwise--becoming
available for obligation or expenditure only in accordance with
an act of Congress. Indeed, section 603 of the Home Rule Act
explicitly provided that the act made ``no change in existing
law, regulation, or basic procedure and practice relating to
the respective roles of the Congress, the President, the
Federal Office of Management and Budget, and the Comptroller
General of the United States in the preparation, review,
submission, examination, authorization, and appropriation of
the total budget of the District of Columbia Government.''
Because section 603 is not part of the District Charter, it
cannot be amended by the District Council or voters. The
President acknowledges that only an act of Congress may change
the District's budget process, as his budget submissions over
the past several years have included language requesting that
Congress enact legislation in this area. The President even
included such language in his fiscal year 2015, 2016, and 2017
budgets, all of which he submitted after the District purported
to pass its Budget Autonomy Act, suggesting that the President
believes the District lacked authority to pass the act and that
it was, therefore, ineffective. Furthermore, the Budget
Autonomy Act had no effect on the applicability of the
Antideficiency Act (31 U.S.C. 1341), which bars ``an officer or
employee of the United States Government or of the District of
Columbia government'' from incurring obligations or making
expenditures that exceed the amount appropriated by law.
TITLE V
INDEPENDENT AGENCIES
Administrative Conference of the United States
SALARIES AND EXPENSES
Appropriations, 2016.................................... $3,100,000
Budget estimate, 2017................................... 3,200,000
Committee recommendation................................ 3,100,000
PROGRAM DESCRIPTION
The Administrative Conference of the United States [ACUS]
is an independent agency and advisory committee created to
study administrative processes in order to recommend
improvements to Congress and agencies.
COMMITTEE RECOMMENDATION
The Committee recommends $3,100,000 for ACUS for fiscal
year 2017.
Commodity Futures Trading Commission
SALARIES AND EXPENSES
(INCLUDING TRANSFERS OF FUNDS)
Appropriations, 2016.................................... $250,000,000
Budget estimate, 2017................................... 330,000,000
Committee recommendation................................ 250,000,000
PROGRAM DESCRIPTION
The Commodity Futures Trading Commission [CFTC] was
established as an independent agency by the Commodity Futures
Trading Commission Act of 1974 (88 Stat. 1389; 7 U.S.C. 4a).
The Commission administers the Commodity Exchange Act, 7 U.S.C.
section 1, et seq.
The CFTC oversees our Nation's futures, options and swaps
markets. The Commission's mission is to foster transparent,
open, competitive and financially sound derivatives markets.
Effective oversight by the CFTC protects market participants
from fraud, manipulation and abusive practices, and protects
the public and our economy from systemic risk related to
derivatives.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $250,000,000
for the Commodity Futures Trading Commission.
The Committee recommendation includes $50,000,000 for the
purchase of information technology. The Committee highlights
the crucial need for the CFTC to make mission-critical
investments in technology to sort through the vast volume of
data and information generated daily by markets. The CFTC's
responsibilities to conduct effective oversight and analysis of
the swaps and futures markets requires greater attention to and
investments in its information technology systems.
The Committee recommendation for fiscal year 2017 includes
$3,000,000 for the OIG. Of this amount, not more than $479,900
should be for overhead expenses.
Spending Plan.--The Committee directs the CFTC to submit,
within 30 days of enactment, a detailed spending plan for the
allocation of the funds made available, displayed by discrete
program, project, and activity, including staffing projections,
specifying both FTEs and contractors, and planned investments
in information technology.
The Committee remains concerned that the CFTC has made
long-term budgetary and leasing decisions based on the agency's
requested budget level rather than on its enacted
appropriation. Given the agency's budget request has far
exceeded the appropriated amount it received in recent years,
the CFTC Inspector General has criticized the agency for
allowing ``hope to trump experience'' in long-term budgeting
decisions.
Leasing Practices.--The Committee is deeply concerned with
the leasing practices of the CFTC. The Government
Accountability Office [GAO] ruled in February that the CFTC
failed to properly record its lease obligations in violation of
the recording statute, 31 U.S.C. 1501(a)(1), which is expected
to result in the CFTC reporting an Antideficiency Act
violation. This is particularly troubling given similar
violations at the Securities and Exchange Commission were
brought to light in 2011, yet CFTC leadership failed to correct
these problems. Moreover, GAO released a study in April that
documented the Commission's failure to make lease procurement
decisions that were cost-effective and consistent with internal
control standards. The CFTC Inspector General estimates that
the Commission will spend between $44,700,000 and $56,600,000
on empty office space over the terms of its current leases.
Given the agency's recurring appeals for additional funding,
the Committee remains concerned that a significant amount of
taxpayer money that could otherwise be used to protect
investors and ensure our markets are free from fraud,
manipulation and other abuses is instead spent on unneeded
office space. The Committee expects the CFTC to work through
GSA on future lease agreements and renewals.
Collective Bargaining Agreements.--The Committee is aware
of negotiations at the Commission concerning a collective
bargaining agreement for agency employees. The Anti-Deficiency
Act requires that agencies ensure that the cost of agreements
made in collective bargaining be constrained by the dollar
limitations of their appropriations. As such, the Committee
directs the CFTC to not increase agency personnel or benefit
costs through excessive hiring or collective bargaining
agreement negotiations that would result in furloughs,
reductions-in-force, or a hiring freeze that could compromise
the agency's ability to carry out its mission of fostering open
and transparent markets and protecting market users from fraud,
manipulation, and abusive practices.
Consumer Product Safety Commission
salaries and expenses
Appropriations, 2016.................................... $125,000,000
Budget estimate, 2017................................... 130,500,000
Committee recommendation................................ 124,000,000
PROGRAM DESCRIPTION
The Consumer Product Safety Commission [CPSC] is an
independent regulatory agency that was established on May 14,
1973, and is responsible for protecting the public against
unreasonable risks of injury from consumer products; assisting
consumers to evaluate the comparative safety of consumer
products; developing uniform safety standards for consumer
products and minimizing conflicting State and local
regulations; and promoting research and investigation into the
causes and prevention of product-related deaths, illnesses, and
injuries.
In carrying out its mandate, the CPSC establishes mandatory
product safety standards, where appropriate, to reduce the
unreasonable risk of injury to consumers from consumer
products; helps industry develop voluntary safety standards;
bans unsafe products if it finds that a safety standard is not
feasible; monitors recalls of defective products; informs and
educates consumers about product hazards; conducts research and
develops test methods; collects and publishes injury and hazard
data; and promotes uniform product regulations by governmental
units.
COMMITTEE RECOMMENDATION
The Committee recommends $124,000,000 for the Consumer
Product Safety Commission. This amount is $1,000,000 below the
enacted level due to one-time costs provided in fiscal year
2016 for third-party test burden reduction.
Flame Retardant Chemicals.--As the Commission considers new
upholstered furniture flammability standards, the Committee
encourages the Commission to take steps to reduce or limit the
use of flame retardant chemicals pursuant to its consumer
products safety rule authority (15 U.S.C. 2058). In 2012, the
Commission released a study that indicates that flame retardant
chemicals, as currently used in upholstered furniture foam,
have no practical impact on flammability.
Furniture Tip-Overs.--Furniture tip-overs, particularly
televisions, remain a serious risk to children and consumers.
The Committee encourages the Commission to continue to engage
with industry, consumer groups, and the public to increase
efforts to limit or mitigate the risk associated with furniture
tip-overs.
Recreational Off-highway Vehicles.--The Committee is
encouraged by reports of significant positive engagement
between CPSC and stakeholders regarding efforts to use the
voluntary standard process to develop improved safety standards
for recreational off-highway vehicles [ROVs] in lieu of
mandatory standards through rulemaking. The Committee, however,
remains concerned that mandatory rulemaking regarding ROVs has
not been terminated or removed from the Commission's agenda.
The Committee directs CPSC to submit a report within 60 days of
enactment to the Committees on Appropriations detailing the
status of the voluntary standards and the Commission's
intentions with respect to the mandatory rulemaking.
Youth Sports Concussion.--Within 180 days of enactment,
CPSC shall report to the Committee on voluntary industry
standards and product labeling requirements for youth sports
protective headgear and helmets, including Commission
participation and Commission employee involvement in voluntary
standards activities.
Liquid Detergent Packets.--The Committee is aware of recent
studies on children's risk for poisoning due to liquid
detergent packets and recognizes that recent voluntary
recommendations adopted by industry are a positive step. The
Committee encourages CPSC to continue its work with the
standards-setting community to ensure adequate product
standards, update them as necessary, and educate the public on
appropriate product usage.
Election Assistance Commission
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)
Appropriations, 2016.................................... $9,600,000
Budget estimate, 2017................................... 9,800,000
Committee recommendation................................ 9,600,000
PROGRAM DESCRIPTION
The Election Assistance Commission [EAC] was created by the
Help America Vote Act of 2002 [HAVA] (Public Law 107-252) and
is charged with implementing provisions of that act relating to
the reform of Federal election administration.
COMMITTEE RECOMMENDATION
The Committee provides $9,600,000 for EAC's administrative
expenses, which is equal to the fiscal year 2016 enacted level.
The Committee bill requires that $1,500,000 of these funds be
transferred to the National Institute for Standards and
Technology [NIST] for technical assistance related to the
development of voluntary State voting systems guidelines.
Within 30 days of the transfer, the Director of NIST (or
designee) shall provide to the Executive Director (or Acting)
of the EAC and the Committee an expenditure plan for the funds
that includes: (1) the number and position title and office of
each staff person doing work and amount of time each staff
person spends on that work; (2) the specific tasks accomplished
including length of time needed to accomplish the task; (3) an
explanation of expenditures, including contracts and grants,
and use of the EAC funding transferred to NIST (including
enumeration of funds); and (4) an explanation of how the work
accomplished relates to mandated activities under HAVA.
Finally, the Executive Director (or Acting) of the EAC and
Director of NIST (or designee) shall work together to set
priorities for the work outlined in order to meet timelines.
Federal Communications Commission
SALARIES AND EXPENSES
Appropriations, 2016.................................... $384,012,000
Budget estimate, 2017................................... 358,286,000
Committee recommendation................................ 341,315,000
PROGRAM DESCRIPTION
The Federal Communications Commission [FCC] is charged with
regulating interstate and international communications by
radio, television, wire, satellite, and cable. The FCC is also
charged with promoting the safety of life and property through
wire and radio communications. The mandate of the FCC under the
Communications Act is to make available to all people of the
United States a rapid, efficient, nationwide, and worldwide
wire and radio communication service. The FCC performs five
major functions to fulfill this charge: (1) spectrum
allocation; (2) creating rules to promote fair competition and
protect consumers where required by market conditions; (3)
authorization of service; (4) enhancing public safety and
homeland security; and (5) enforcement.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $341,315,000
for the Salaries and Expenses of the FCC for fiscal year 2017.
Of this amount, the Committee dedicates $16,866,992 to moving
expenses for the FCC's expiring lease for its headquarters
building that will be utilized to either relocate operations to
a new facility with substantially reduced square footage and
lower rental expenses or to significantly reduce the agency's
leased space at its current location and restack employees
within the smaller footprint. Within 30 days of the end of each
quarter, the FCC is directed to provide moving expenditure
reports to the Committee with itemized amounts and descriptions
of all moving expenditures. In recent years, the Commission has
prioritized politically polarizing rulemaking at the expense of
the agency's mission-critical work. It is the Committee's hope
that the Commission will better allocate the resources it
receives in fiscal year 2017 to more effectively fulfill the
agency's core responsibilities under the Communications Act.
The total appropriation of $341,315,000 will be derived from
offsetting collections.
The Committee also recommends that up to $117,000,000 be
retained from spectrum auction activities to fund the
administrative expenses of conducting such auctions.
The Committee has included language (section 501) to extend
FCC's exemption from the Anti-deficiency Act [ADA] until
December 31, 2018.
The Committee has included language (section 502) that
prohibits the FCC from enacting certain recommendations
regarding universal service that were made by the Joint Board
of FCC members and State utility commissioners.
Joint Sales Agreements.--On May 25, 2016, the U.S. Court of
Appeals for the Third Circuit vacated the FCC's March 31, 2014,
order attributing, and thereby effectively prohibiting, most TV
joint sales agreements [JSAs]. Last year, the Consolidated
Appropriations Act of 2016 (Public Law 114-113), grandfathered
existing TV JSAs through September 30, 2025. The Committee is
now including a provision in title VI to reiterate Congress'
strong support for the continuing operation of existing TV
JSAs, regardless of the assignment or transfer of the stations
involved in those agreements, and strongly opposes any new
Commission action to attribute JSAs.
Incentive Auction.--The Committee is gravely concerned with
the impact the incentive auction will have on television
broadcasters required to relocate during the repacking process.
The Middle Class Tax Relief and Job Creation Act of 2012
(Public Law 112-96) established the TV Broadcaster Relocation
Fund into which $1,750,000,000 will be deposited to cover
repacking costs associated with relocating broadcasters to new
channel assignments. Despite assurances from the FCC that the
Relocation Fund will cover broadcasters' relocation expenses,
the Committee remains concerned that $1,750,000,000 will be
insufficient. The Committee is also concerned that the 39-month
deadline for stations to be repacked following the auction will
be insufficient.
The Commission is directed to immediately notify the House
and Senate Committees on Appropriations, the Senate Committee
on Commerce, and the House Committee on Energy and Commerce
should additional relocation funding be necessary or should
problems arise in meeting the Commission's transition deadline.
Not later than 90 days after the completion of the forward
auction or 30 days after enactment of this act, the Commission
is directed to submit a preliminary auctions report to the
Committee. The report should include but not be limited to
information relating to how many broadcast television stations
have submitted reimbursement forms; the aggregate amount of
reimbursements requested from the TV Broadcaster Relocation
Fund; an estimate of what resources are available to reimburse
costs; how many television stations will be required to
relocate to a new channel assignment; and the status of
spectrum coordination with Canada and Mexico.
Not later than 240 days after the completion of the forward
auction, the Commission is directed to submit to the Committee
another report that includes but is not limited to information
relating to the construction schedule for relocating television
stations; whether broadcast television viewers will face any
service disruptions from new channel assignments; and an
estimate of the impact the repacking process on rural areas and
television broadcast translator services.
ATSC 3.0.--As a result of the spectrum incentive auction,
numerous television broadcast stations will be required to move
to newly designated channel assignments that could require the
purchase of new antennas, transmitters, transmission lines, and
other facilities. Separately, the Advanced Television Systems
Committee is moving forward with an innovative, next-generation
Internet protocol-based broadcast standard [ATSC 3.0], and will
be filing a petition with the Commission to approve this new
standard. ATSC 3.0 equipment is expected to be commercially
available in time for the repacking required by the spectrum
incentive auction. The Committee urges the Commission to move
forward with the ATSC 3.0 standard as expeditiously as possible
so that TV broadcasters may purchase the facilities they need
without wasting limited funds on outdated, unnecessary
equipment.
Wireless Support.--The Committee includes a provision that
would provide certainty to rural wireless broadband users and
carriers across the Nation as the Federal Communications
Commission continues to develop a new framework for parts of
the Universal Service Fund. The provision reaffirms the intent
of current regulations adopted by the Commission (47 CFR
54.307(e)(5) and (e)(6)) that provide that competitive eligible
telecommunications carriers will continue to receive reliable
support until Mobility Fund Phase II is implemented. The
Committee preserves the Commission's flexibility to develop
nationwide replacement mechanisms for high-cost support, which
could include Mobility Fund Phase II, another support
mechanism, or set of support mechanisms and a separate but
complementary Alaska-specific support mechanism. The Committee
does not intend that this section will limit the Commission's
consideration, development, or adoption of a replacement
mechanism other than Mobility Fund Phase II or a separate
Alaska-specific support mechanism.
Enhanced Underwriting Announcements.--The Committee
understands that in the current economic environment, Non-
Commercial Educational [NCE] Public Interest Obligation [PIO]
license holders are facing financial challenges and looking for
new and efficient ways of operating. It is important to ensure
that NCE PIO standards for enhanced underwriting announcements
are applied uniformly for all such stations. Therefore, the
Committee encourages the FCC to work with all broadcasters to
consider their intent when reviewing and interpreting the NCE
PIO guidelines and to provide parity in treatment to all
stations.
Call Completion in Rural Areas.--The FCC shall report to
the Committee within 90 days of enactment of this act detailing
the Commission's efforts to resolve call completion issues and
to prevent discriminatory delivery of calls to any area of the
country. The report shall include information on the number of
call completion complaints filed with the Commission in the
previous 12 months and on the Commission's resulting
enforcement actions.
Universal Service Reform.--The Committee remains concerned
regarding waste, fraud, and abuse within the Universal Service
Fund. The Committee encourages the FCC to continue prioritizing
the expansion of broadband availability in unserved rural areas
through the Connect America Fund.
Drive Testing.--The Committee directs the FCC to conduct a
feasibility study of conducting mobile broadband coverage drive
testing in rural areas. The Commission is directed to report
the results of the study to the Committee within 180 days of
enactment.
Broadband Connectivity on Tribal Lands.--The Committee
remains concerned about the lack of access to broadband
services on tribal lands. American Indian, Alaska Native, and
Native Hawaiian communities face significant obstacles to the
deployment of broadband infrastructure, including high buildout
costs, limited financial resources that deter investment by
commercial providers, and a lack of technical training and
expertise within many such communities to undertake deployment
and adoption planning. Sixty-eight percent of residents on
rural, tribal lands lack access to fixed broadband service,
which is seven times worse than the national average. The
Committee directs the Commission to set interim goals and
performance measures for increasing access to broadband on
tribal lands, and directs $500,000 to support consultation with
federally recognized Indian tribes, Alaska Native villages, and
entities related to Hawaiian home lands.
National Broadband Map.--The Committee is concerned that
the data the FCC makes available in the National Broadband Map
may not be fully accurate, complete, and reliable. Accordingly,
the Committee directs the FCC to report to Congress on the
actions the FCC plans to take to address the current
limitations of the data in the National Broadband Map or any
successor maps.
Consumer Complaints Database.--The Committee encourages the
FCC to analyze information from the consumer complaints
database to identify potential enforcement actions and/or
changes to current FCC policies.
Electronic Comment Filing System.--The FCC's Electronic
Comment Filing System [EFCS] serves as the repository for
official records in the FCC's docketed proceedings and
rulemakings from 1992 to the present. Although it is intended
to allow consumers to research, retrieve, view, and print any
document in the system, EFCS is cumbersome and difficult to
use. The Committee encourages the FCC to modernize EFCS as part
of its overall information technology reform efforts.
Commission Transparency.--The Committee directs the FCC to
identify any changes made to an item after its adoption by the
Commission, at the time such item is published.
Coordination on Rural Communications Services.--The
Committee recognizes the FCC's vital role in preserving and
advancing universal communications services. The Committee
encourages the FCC to coordinate efforts with the Rural Utility
Service to optimize the use of limited resources and promote
broadband deployment in rural America.
Information Technology Reform.--The Committee directs the
Commission to report to the Committee within 6 months on how it
will prioritize future IT reform efforts and identify the most
important IT systems to be modernized.
Connect America Fund II Accountability.--As the Connect
America Fund [CAF-II] is implemented, it is important to the
Committee that taxpayer dollars are used effectively and
efficiently to make broadband service available in communities
that currently lack it. The Committee requests that the
Commission regularly update Congress on the new broadband
service made through CAF-II and on the Commission's oversight
efforts to make sure that providers receiving CAF-II funds are
compliant with relevant program regulations and policies. The
Commission's updates should include information about the
effectiveness of the FCC Form 477, which requires broadband
providers to self-report data about where they offer broadband
service, and whether improvements to the Form 477 or to the
Commission's oversight of the CAF-II program are necessary to
ensure that taxpayer dollars are used effectively and
efficiently.
Federal Deposit Insurance Corporation
OFFICE OF THE INSPECTOR GENERAL
Appropriations, 2016.................................... $34,568,000
Budget estimate, 2017................................... 35,958,000
Committee recommendation................................ 35,958,000
PROGRAM DESCRIPTION
The Federal Deposit Insurance Corporation [FDIC] Office of
Inspector General [OIG] conducts audits, investigations, and
other reviews to assist and augment the FDIC's contribution to
the stability of, and public confidence in, the Nation's
financial system. A separate appropriation more effectively
ensures the OIG's independence consistent with the Inspector
General Act of 1978 and other legislation.
COMMITTEE RECOMMENDATION
The Committee recommends $35,958,000 for the FDIC inspector
general, the same as the budget request and $1,390,000 more
than the fiscal year 2016 enacted level. Funds are to be
derived from the Deposit Insurance Fund and the Federal Savings
and Loan Insurance Corporation resolution fund.
Federal Election Commission
SALARIES AND EXPENSES
Appropriations, 2016.................................... $76,119,000
Budget estimate, 2017................................... 80,540,000
Committee recommendation................................ 79,119,000
PROGRAM DESCRIPTION
The Federal Election Commission [FEC] was created through
the 1974 Amendments to the Federal Election Campaign Act of
1971 (Public Law 93-443). Consistent with its duty of executing
our Nation's Federal campaign finance laws, and in pursuit of
its mission of maintaining public faith in the integrity of the
Federal campaign finance system, the FEC conducts three major
regulatory programs: (1) providing public disclosure of funds
raised and spent to influence Federal elections; (2) enforcing
compliance with restrictions on contributions and expenditures
made to influence Federal elections; and (3) administering
public financing of Presidential campaigns.
COMMITTEE RECOMMENDATION
The Committee recommends $79,119,000 for the Federal
Election Commission. The recommendation includes $8,000,000 to
cover expenses associated with the expiration of the FEC's
lease.
Federal Labor Relations Authority
SALARIES AND EXPENSES
Appropriations, 2016.................................... $26,200,000
Budget estimate, 2017................................... 27,062,000
Committee recommendation................................ 26,200,000
PROGRAM DESCRIPTION
The Federal Labor Relations Authority [FLRA] is an
independent administrative Federal agency created by title VII
of the Civil Service Reform Act of 1978 (Public Law 95-454)
with a mission to carry out five statutory responsibilities in
relation to the Federal workforce: (1) determining the
appropriateness of units for labor organization representation;
(2) resolving complaints of unfair labor practices; (3)
adjudicating exceptions to arbitrator's awards; (4)
adjudicating legal issues relating to the duty to bargain; and
(5) resolving impasses during negotiations.
The FLRA's authority is divided by law and by delegation
among a three-member authority and an Office of General
Counsel, appointed by the President and subject to Senate
confirmation; and the Federal Service Impasses Panel, which
consists of seven part-time members appointed by the President.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $26,200,000
for the Federal Labor Relations Authority.
Federal Trade Commission
SALARIES AND EXPENSES
Appropriations, 2016.................................... $306,900,000
Budget estimate, 2017................................... 342,000,000
Committee recommendation................................ 306,900,000
PROGRAM DESCRIPTION
The Federal Trade Commission [FTC] administers a variety of
Federal antitrust and consumer protection laws. Activities in
the antitrust area include detection and elimination of illegal
collusion, anticompetitive mergers, unlawful single-firm
conduct, and injurious vertical agreements. The FTC enforces
consumer protection laws involving advertising, marketing, and
financial practices; fights consumer fraud; and addresses
privacy and identity protection concerns.
COMMITTEE RECOMMENDATION
The Committee recommendation provides $306,900,000 for the
salaries and expenses of the FTC for fiscal year 2017.
The Congressional Budget Office estimates $125,000,000 of
collections from Hart-Scott-Rodino premerger filing fees and
$15,000,000 of collections from Do-Not-Call fees will partially
offset the appropriation requirement for this account. The
total amount of direct appropriations for this account is
therefore $166,900,000.
The Committee recognizes the FTC's mission to preserve
competition in the marketplace and protect consumers, including
efforts to improve the security of consumer financial
transactions. The recommended funding will support these
necessary endeavors. The recommendation includes funding for
the FTC Do-Not-Call initiative, of which the entire amount is
to be derived from the collection of fees.
Sports Concussion.--According to the Centers for Disease
Control and Prevention, a concussion is a type of traumatic
brain injury that can occur in any sport or recreation
activity.
Given the potential for real injury to children, the
Committee encourages the FTC to remain vigilant in its
enforcement efforts against potential unfair and deceptive
practices related to sports concussion. The FTC should review
any National Academies' report on sports-related concussions in
youth for any matter that may inform efforts to protect
consumers from unfair or deceptive practices in or affecting
commerce.
Contact Lenses.--The Committee is aware of the FTC's
ongoing review of its contact lens rule and encourages the
agency to consider modifications that prioritize patient safety
and strengthen enforcement mechanisms aimed at combating
illegal sales of contact lenses based on expired or non-
existent prescriptions, while coordinating with the Centers for
Disease Control and Prevention to disseminate contact lens
safety information to consumers.
Agency Overlap.--The Committee is aware that on March 12,
2015, the FTC and Consumer Financial Protection Bureau [CFPB]
reauthorized their ongoing Memorandum of Understanding designed
to facilitate interagency coordination on efforts to protect
consumers. The Committee directs the FTC to continue to
maximize efficiencies and avoid duplication of Federal law
enforcement and regulatory efforts.
General Services Administration
PROGRAM DESCRIPTION
The General Services Administration [GSA] was established
by the Federal Property and Administrative Services Act of 1949
(Public Law 81-152) when Congress mandated the consolidation of
the Federal Government's real property and administrative
services. GSA is organized into the Public Buildings Service,
the Federal Acquisition Service, the Office of Governmentwide
Policy, and the Office of Citizen Services.
COMMITTEE RECOMMENDATION
FBI Headquarters Consolidation.--The Committee supports
full consolidation of the Federal Bureau of Investigations
[FBI] headquarters to better support its mission and is
concerned about further delays in the execution of the FBI
headquarters project. The Committee expects GSA to adhere to
the timeline finalized on January 22, 2016. GSA is directed to
move forward in a transparent manner. GSA is directed to notify
the Committee immediately should problems arise in meeting the
established schedule.
Land Border Partnerships.--The Committee remains concerned
that GSA is not taking effective steps to improve review
practices and responsiveness with respect to enter into
donation or gift agreements with interested parties in the
border region. The Committee is concerned that if GSA does not
improve review practices and responsiveness, a significant
opportunity to demonstrate that this authority can deliver
results will have been missed and future interest from non-
Federal entities in improving land border infrastructure will
be effectively discouraged. Not more than 60 days after the
date of enactment, GSA is directed to report, after
consultation with relevant Federal agencies, on proposed steps
to strengthen and improve the review process, including
imposition of specific deadlines for inter-agency reviews and
response to pending proposals, and incorporation of an
evaluation process for assessing impacts to non-Federal
stakeholders and international trading partners, for donation
proposals under the provisions of the relevant provisions of
section 559 of division F of Public Law 113-76, as amended, as
well as the traditional gift acceptance process provided for
under 40 U.S.C. 3175. GSA is also directed to submit a detailed
list of donation and gift proposals for land border ports
currently under review, and provide a status report on each
proposal.
Data Center Consolidation.--The Federal Data Center
Consolidation Initiative was launched in 2010 to reduce the
cost and footprint of government data centers and increase IT
security. The new Data Center Optimization Initiative continues
to encourage agencies to reduce data centers and utilize cloud-
based services where possible. Given budget constraints and
limited IT funding, data center consolidation and optimization
continues to present significant savings opportunities to curb
spending on underutilized infrastructure. The National Center
for Critical Information Processing and Storage [NCCIPS] is a
shared service, multi-tenant Federal data facility that was
established to consolidate efforts across Federal agencies to
store and secure data. During the Federal Data Center
Consolidation Initiative, GSA utilized available infrastructure
at NCCIPS to consolidate multiple systems and reduce legacy
costs. The Committee directs GSA to continue taking advantage
of consolidation efforts to more rapidly achieve IT
modernization that results in significant cost savings and a
reduced carbon footprint for GSA's computing environment.
Sustainable Roofing Systems.--The Committee recognizes the
importance of providing energy efficient, sustainable, and cost
effective measures that address more effectively the
infrastructure needs of Federal agencies. GSA should continue
to develop sustainable roofing systems that minimize the burden
on the environment, reduce costs, conserve energy, and extend
the useful life of roof assets.
Transportation Technology.--The Committee directs the
General Services Administration to complete an assessment of
transportation technologies for those Federal vehicle fleets
operated by or leased from the General Services Administration
and submit a report to the Committee that describes, for each
vehicle fleet: (1) which types of transportation technology the
agency uses that could be converted to electric transportation
technology without increasing costs to taxpayers; (2) an
estimate of how many such plug-in electric drive vehicles could
be deployed by the General Services Administration and each
leasing Federal agency by 2020; and (3) the estimated net cost
to the General Services Administration and each leasing Federal
agency.
Consolidation Activities.--The Committee is concerned that
some consolidation activities by GSA could negatively impact
Federal agencies with field-based agencies and outreach
programs when two or more agencies are co-located at the same
county service center. In those cases, GSA shall take client
agencies' missions and the importance of ease of access by
customers into consideration when making decisions about office
relocations.
Landscaping Requirements.--The GSA should report to the
Committee not later than 120 days after enactment on compliance
with the Federal Acquisition Regulation [FAR] on Sustainable
Acquisition Policy (Part 23 et seq.) for landscaping contracts
and its plans to continue compliance in fiscal year 2017.
Regional Headquarters.--GSA is directed to review and
report to the Committee on the potential savings that could be
achieved by the relocation of regional headquarters within the
New England region from high-cost urban centers to lower-cost
urban centers. The review should include locations in each
State in the region and should solicit input from relevant
state agencies in choosing locations for evaluation.
FEDERAL BUILDINGS FUND--LIMITATIONS ON AVAILABILITY OF REVENUE
(INCLUDING TRANSFER OF FUNDS)
Limitation on availability of revenue:
Limitation on availability, 2016.................... $10,196,124,000
Limitation on availability, budget estimate, 2017... 10,178,338,000
Committee recommendation................................ 9,377,869,000
The Federal Buildings Fund [FBF] finances the activities of
the Public Buildings Service, which provides space and services
for Federal agencies in a relationship similar to that of
landlord and tenant. The FBF, established in 1975, replaces
direct appropriations by using income derived from rent
assessments, which approximate commercial rates for comparable
space and services. The Committee makes funds available through
a process of placing limitations on obligations from the FBF as
a way of allocating funds for various FBF activities.
CONSTRUCTION AND ACQUISITION
Limitation on availability, 2016........................ $1,607,738,000
Limitation on availability, budget estimate, 2017....... 1,330,522,000
Committee recommendation................................ 764,749,000
PROGRAM DESCRIPTION
The construction and acquisition fund finances the site,
design, construction, management, and inspection costs of new
Federal facilities.
COMMITTEE RECOMMENDATION
The Committee recommends a limitation of $764,749,000 for
construction and acquisition in fiscal year 2017.
The Committee recommendation includes full funding for the
FBI Headquarters Consolidation Project and the Animal and Plant
Health Inspection Service facility at the Pembina, North
Dakota, U.S. Land Port of Entry, both of which were requested
in the President's fiscal year 2017 budget.
REPAIRS AND ALTERATIONS
Limitation on availability, 2016........................ $735,331,000
Limitation on availability, budget estimate, 2017....... 841,617,000
Committee recommendation................................ 632,539,000
PROGRAM DESCRIPTION
Under this activity, the General Services Administration
[GSA] executes its responsibility for repairs and alterations
[R&A] of both Government-owned and -leased facilities under the
control of GSA.
COMMITTEE RECOMMENDATION
The Committee recommends a limitation of $632,539,000 for
repairs and alterations in fiscal year 2017.
The Committee recommends $289,245,000 for major repairs and
alterations projects, $301,594,000 for Basic Repairs and
Alterations, $20,000,000 for the Fire and Life Safety Program,
and $26,700,000 for the Judiciary Capital Security Program.
RENTAL OF SPACE
Limitation on availability, 2016........................ $5,579,055,000
Limitation on availability, budget estimate, 2017....... 5,655,581,000
Committee recommendation................................ 5,645,581,000
PROGRAM DESCRIPTION
The rental of space program funds lease payments made to
privately owned buildings, temporary space for Federal
employees during major repair and alteration projects, and
relocations from Federal buildings due to forced moves and
relocations as a result of health and safety conditions. GSA is
responsible for leasing general purpose space and land incident
thereto for Federal agencies, except in cases where GSA has
delegated its leasing authority.
COMMITTEE RECOMMENDATION
The Committee recommends a limitation of $5,645,581,000 for
rental of space.
BUILDING OPERATIONS
Limitation on availability, 2016........................ $2,274,000,000
Limitation on availability, budget estimate, 2017....... 2,350,618,000
Committee recommendation................................ 2,335,000,000
PROGRAM DESCRIPTION
This activity provides for the operation of all Government-
owned facilities under the jurisdiction of GSA and building
services in GSA-leased space where the terms of the lease do
not require the lessor to furnish such services. Services
included in building operations are cleaning, protection,
maintenance, payments for utilities and fuel, grounds
maintenance, and elevator operations.
COMMITTEE RECOMMENDATION
The Committee recommends a limitation of $2,335,000,000 for
building operations.
GOVERNMENTWIDE POLICY
Appropriations, 2016.................................... $58,000,000
Budget estimate, 2017................................... 64,497,000
Committee recommendation................................ 60,000,000
PROGRAM DESCRIPTION
The Office of Governmentwide Policy [OGP], working
cooperatively with other agencies, provides the leadership
needed to develop and evaluate policies associated with high-
performance green buildings and real property, acquisition
policy, personal property, travel and transportation
management, vehicles and aircraft, committee and regulations
management, and management of Federal spending data. OGP
collaborates with partner agencies and other stakeholders to
improve public access to policy information and support data,
and improve transparency in Government.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $60,000,000
for Governmentwide Policy. Of the amount provided, GSA is
directed to dedicate not less than $2,000,000 to establishing
the Unified Shared Services Management Office.
OPERATING EXPENSES
Appropriations, 2016.................................... $58,560,000
Budget estimate, 2017................................... 59,449,000
Committee recommendation................................ 58,560,000
PROGRAM DESCRIPTION
Operating Expenses supports a variety of operational
activities which are not feasible or appropriate for a user fee
arrangement. Major programs include the personal property
utilization and donation activities of the Federal Acquisition
Service; the real property utilization and disposal activities
of the Public Buildings Service; the activities of the Civilian
Board of Contract Appeals; and the Management and
Administration activities, including support of Governmentwide
emergency response and recovery activities, and top-level
agency-wide management, administration, and communications
activities.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $58,560,000
for Operating Expenses.
OFFICE OF INSPECTOR GENERAL
Appropriations, 2016.................................... $65,000,000
Budget estimate, 2017................................... 66,000,000
Committee recommendation................................ 65,000,000
PROGRAM DESCRIPTION
This appropriation provides agency-wide audit and
investigative functions to identify and correct management and
administrative deficiencies within the General Services
Administration [GSA], which create conditions for existing or
potential instances of fraud, waste, and mismanagement. The
audit function provides internal audit and contract audit
services. Contract audits provide professional advice to GSA
contracting officials on accounting and financial matters
relative to the negotiation, award, administration, repricing,
and settlement of contracts. Internal audits review and
evaluate all facets of GSA operations and programs, test
internal control systems, and develop information to improve
operating efficiencies and enhance customer services. The
investigative function provides for the detection and
investigation of improper and illegal activities involving GSA
programs, personnel, and operations.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $65,000,000
for the Office of Inspector General. In addition, the Office of
Inspector General has access to unobligated no-year funds that
were appropriated in fiscal years 2014, 2015, and 2016.
ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS
Appropriations, 2016.................................... $3,277,000
Budget estimate, 2017................................... 3,865,000
Committee recommendation................................ 3,865,000
PROGRAM DESCRIPTION
This appropriation currently provides pensions, office
staffs, and related expenses for former Presidents Jimmy
Carter, George H.W. Bush, William Clinton, and George W. Bush.
COMMITTEE RECOMMENDATION
The Committee recommends $3,865,000 for allowances and
office staff for former Presidents.
EXPENSES, PRESIDENTIAL TRANSITION
(INCLUDING TRANSFER OF FUNDS)
Appropriations, 2016....................................................
Budget estimate, 2017................................... $9,500,000
Committee recommendation................................ 9,500,000
PROGRAM DESCRIPTION
In accordance with the Presidential Transition Act of 1963,
this appropriation will enable GSA to provide transition
services, including office space, communications services,
printing, and postage costs.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $9,500,000 for
presidential transition expenses, which is equal to the fiscal
year 2017 budget request.
FEDERAL CITIZEN SERVICES FUND
Appropriations, 2016.................................... $55,894,000
Budget estimate, 2017\1\................................ 58,428,000
Committee recommendation................................ 55,894,000
\1\The budget includes funding for the E-Gov Fund under this account.
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PROGRAM DESCRIPTION
The Federal Citizen Services Fund provides for the salaries
and expenses of the Office of Citizen Services and Innovative
Technologies [OCSIT]. OCSIT provides the means for citizens,
businesses, other governments, and the media to obtain
information and services easily from the Government via the
Web, email, printed media, and telephone. OCSIT leads several
interagency groups to share best practices and develop
strategies for improving the way Government provides services
to the American public.
The Federal Citizen Services [FCS] Fund is financed from
annual appropriations to pay for the salaries and expenses of
OCSIT staff and Citizens Services programs. Reimbursements from
Federal agencies pay for the direct costs of information
services OCSIT provides on their behalf. The FCS Fund also
receives funding from user fees for publications ordered by the
public, payments from private entities for services rendered,
and gifts from the public. All income is available without
regard to fiscal year limitations, but is subject to an annual
aggregate expenditure limit as set forth in appropriation acts.
committee recommendation
The Committee recommends $55,894,000 for the Federal
Citizen Services Fund.
IT MODERNIZATION FUND
Appropriations, 2016....................................................
Budget Request, 2017.................................... $100,000,000
Committee recommendation................................................
The budget requests the establishment of a new account,
contingent upon enactment of authorizing legislation, to
modernize information technology across the government.
COMMITTEE RECOMMENDATION
Given little progress in enacting authorizing legislation
necessary to establish this fund and persistent oversight and
accountability concerns relating to shifting IT spending away
from the appropriations process, the Committee does not provide
funding for this account and encourages OMB to work with
Federal agencies, as appropriate, to include proposals to
retire legacy IT systems in agencies' respective fiscal year
2018 budget requests.
ADMINISTRATIVE PROVISIONS--GENERAL SERVICES ADMINISTRATION
(INCLUDING TRANSFERS OF FUNDS)
Section 510 authorizes GSA to use funds for the hire of
passenger motor vehicles.
Section 511 authorizes GSA to transfer funds within the
Federal buildings fund to meet program requirements.
Section 512 requires that the fiscal year 2018 budget
request meet certain standards.
Section 513 provides that no funds may be used to increase
the amount of occupiable square feet, provide cleaning
services, security enhancements, or any other service usually
provided, to any agency which does not pay the requested rate.
Section 514 continues the provision that permits GSA to pay
small claims less than $250,000 made against the Government.
Section 515 provides that certain lease agreements must
conform to an approved prospectus.
Section 516 requires a GSA spending plan for certain
accounts and programs.
Harry S Truman Scholarship Foundation
SALARIES AND EXPENSES
Appropriations, 2016.................................... $1,000,000
Budget estimate, 2017...................................................
Committee recommendation................................ 1,000,000
PROGRAM DESCRIPTION
The Harry S Truman Scholarship Foundation is an independent
agency established by Congress in 1975 (Public Law 93-642) to
encourage exceptional college students to pursue careers in
public service through the Truman Scholarship program. The
Truman Scholarship is a merit-based award available to college
juniors who plan to pursue careers in Government or elsewhere
in public service.
The Foundation Trust Fund was established with a one-time
$30,000,000 appropriation in 1976. The authorizing legislation
directed that this endowment be invested solely in U.S.
Treasury Securities, the interest from which has funded the
Foundation's operating budget. With the decline in interest
rates, the annual yield from the trust fund has declined by 63
percent over the past decade.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $1,000,000 for
the Harry S Truman Scholarship Foundation.
Merit Systems Protection Board
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)
Appropriations, 2016.................................... $46,835,000
Budget estimate, 2017................................... 47,428,000
Committee recommendation................................ 46,835,000
PROGRAM DESCRIPTION
The Merit Systems Protection Board [MSPB] was established
by the Civil Service Reform Act of 1978. MSPB is an independent
quasi-judicial agency manifested to protect Federal merit
systems against partisan political and other prohibited
personnel practices and to ensure adequate protection for
employees against abuses by agency management.
MSPB assists Federal agencies in running a merit-based
civil service system. This is accomplished on a case-by-case
basis through hearing and deciding employee appeals and on a
systemic basis by reviewing significant actions and regulations
of the Office of Personnel Management [OPM] and conducting
studies of the civil service and other merit systems. The
intended results of MSPB's efforts are to assure that personnel
actions taken against employees are processed within the law
and that actions taken by OPM and other agencies support and
enhance Federal merit principles.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $46,835,000
for the MSPB. The recommendation includes not more than
$2,345,000 for adjudicating retirement appeals through an
appropriation from the trust fund consistent with past
practice.
Morris K. Udall and Stewart L. Udall Foundation
MORRIS K. UDALL AND STEWART L. UDALL TRUST FUND
(INCLUDING TRANSFER OF FUNDS)
Appropriations, 2016.................................... $1,995,000
Budget estimate, 2017................................... 1,895,000
Committee recommendation................................ 1,895,000
PROGRAM DESCRIPTION
The General Fund payment to the Morris K. Udall and Stewart
L. Udall Trust Fund is invested in Treasury securities with
maturities suitable to the needs of the Fund. Interest earnings
from the investments are used to carry out the activities of
the Morris K. Udall and Stewart L. Udall Foundation. The
Foundation awards scholarships, fellowships, and grants, and
funds activities of the Udall Center.
The Morris K. Udall and Stewart L. Udall Foundation also
supports training programs for professionals in health care
policy and public policy, such as the Native Nations Institute
[NNI]. NNI, based at the University of Arizona, provides Native
Americans with leadership and management training, and analyzes
policies relevant to tribes.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $1,895,000 for
the Morris K. Udall and Stewart L. Udall Trust Fund.
The Committee appreciates the progress made by the Udall
Foundation to strengthen its internal controls related to
contract oversight and personnel management. The Committee
directs the Foundation to report semiannually to the Committee
regarding its continued work in instituting reformed internal
controls, including milestones achieved. Finally, the Committee
provides that $200,000 shall be transferred to the Inspector
General of the Department of the Interior to conduct annual
audits and investigations of the Foundation and submit reports
of its findings to the Committee in order to ensure that the
Foundation's spending, management, and other activities are
subject to regular oversight and review.
ENVIRONMENTAL DISPUTE RESOLUTION FUND
Appropriations, 2016.................................... $3,400,000
Budget estimate, 2017................................... 3,249,000
Committee recommendation................................ 3,249,000
PROGRAM DESCRIPTION
The U.S. Institute for Environmental Conflict Resolution is
a Federal program established by Public Law 105-156 to assist
parties in resolving environmental, natural resource, and
public lands conflicts. The Institute is part of the Morris K.
Udall and Stewart L. Udall Foundation and serves as an
impartial, nonpartisan institution providing professional
expertise, services, and resources to all parties involved in
such disputes. The Institute helps parties determine whether
collaborative problem solving is appropriate for specific
environmental conflicts, how and when to bring all the parties
together for discussion, and whether a third-party facilitator
or mediator might be helpful in assisting the parties in their
efforts to reach consensus or to resolve the conflict. In
addition, the Institute maintains a roster of qualified
facilitators and mediators with substantial experience in
environmental conflict resolution and can help parties in
selecting an appropriate neutral professional.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $3,249,000 for
the Environmental Dispute Resolution Fund.
National Archives and Records Administration
The National Archives and Records Administration [NARA] is
the national recordkeeper, managing the Government's archives
and records, and operating the Presidential libraries. NARA is
an independent agency created by statute in 1934 and tasked
with the unique mission to identify, access, protect, preserve,
and make available for use the important documents and records
of all three branches of the Federal Government. NARA
administers the Information Security Oversight Office, is the
publisher of the Federal Register, and makes grants for
historical documentation through the National Historical
Publications and Records Commission. In addition, NARA is
charged with additional responsibilities including mediating
Freedom of Information Act disputes and coordinating controlled
unclassified information.
OPERATING EXPENSES
Appropriations, 2016.................................... $379,393,000
Budget estimate, 2017................................... 380,634,000
Committee recommendation................................ 380,634,000
PROGRAM DESCRIPTION
This account provides for basic operations dealing with
management of the Federal Government's archives and records,
operation of Presidential libraries, review for
declassification of classified security information, and other
duties.
COMMITTEE RECOMMENDATION
The Committee recommends $380,634,000 for operating
expenses of the National Archives and Records Administration
for fiscal year 2017. This amount is $1,241,000 above the
fiscal year 2016 enacted level and the same as the budget
request.
The Committee's recommendation supports initiatives to
strengthen NARA's record management leadership role; address
archival storage needs; continue to develop, build, and expand
the IT infrastructure to conduct the business of the National
Declassification Center established in Executive Order 13526;
operate and maintain the Electronic Records Archive [ERA]; and
improve research room holdings protection.
The Committee notes that security of NARA's collections and
holdings has been identified as a material weakness by the
Archivist and cited as a management challenge by the Inspector
General. The Committee directs and expects NARA to institute,
maintain, and enforce effective inventory controls and adequate
levels of security within its facilities to reduce the risk of
loss, damage, or destruction of irreplaceable historic
documents and artifacts.
The Committee believes that providing reliable access to
electronic records far into the future, regardless of
advancements in technology, is of utmost importance. The
Committee strongly urges NARA, as it operates and maintains the
ERA, to ensure effective and efficient preservation, appraisal,
scheduling, and routine transfer of electronic records by
Federal agencies. The Committee expects NARA to prioritize its
efforts to accelerate user adoption of the ERA system,
including providing instructional guidance and training
materials.
The Committee continues to encourage NARA to digitize and
post online archival records that are relocated as a result of
a facility closure. The Committee directs NARA to report,
within 90 days of enactment, on its progress to digitize and
preserve physical access to archival records that have been or
will be relocated to another State by any facility closure
occurring in fiscal years 2014, 2015, or 2016. The report
shall: (1) describe the progress that has been made to digitize
and post online such records that have been moved; (2) describe
NARA's digitization priorities for 2017 pertaining to any
relocated archival records; and (3) include a timeline for
completing the digitization and posting online process. The
Committee further directs NARA to give due consideration and
appropriate adjudication, within the limits of the Federal
Records Act and all applicable laws, of any request to review
archival records that are relocated as a result of a facility
closure, to determine whether those records continue to require
permanent preservation in the National Archives.
Recordkeeping.--The Committee remains concerned about the
ability of Federal agencies to effectively manage email and
other electronic Federal records so that essential records are
available when required by Congress in order to fulfill its
oversight responsibilities. The executive branch must assure
the American public that records documenting Government
decisions and actions are retained for the appropriate time
period and can be retrieved and provided to Congress in a
timely manner and as required by law. The Presidential and
Federal Records Act Amendments of 2014 (Public Law 113-187)
modernized the Federal records management statutes to include
emails and electronic records and to reinforce that the
executive branch must manage these records with greater care
and stewardship than what has been observed in recent months
and years.
The Committee notes that NARA has made significant progress
in issuing guidance directing executive branch agencies to
manage electronic Federal records, including email records, as
required by law. The Committee expects NARA to incorporate
email recordkeeping standards into its inspections of other
agencies' records management programs, with special emphasis on
personal and alias email accounts used for conducting official
business. The Committee also notes that NARA has received
additional resources to increase oversight over executive
branch compliance with Federal recordkeeping laws. The
Committee directs NARA to continue to place a high priority on
its recordkeeping oversight mission and to report to the
Committees on Appropriations of the House of Representatives
and the Senate, the House Committee on Oversight and Government
Reform, and the Senate Committee on Homeland Security and
Governmental Affairs any instances of substantial non-
compliance by executive agencies or significant risk to Federal
records that are identified in the course of NARA oversight
activities.
Office of Government Information Services.--The Committee
remains interested in the ability the Office of Government
Information Services [OGIS] to reduce Federal expenditures on
processing document requests and resolving Freedom of
Information Act [FOIA] disputes. The Committee directs the
National Archives and Records Administration to report not less
than 60 days from the enactment of this act on the specific
allocation of appropriated funds to OGIS in fiscal year 2017,
and the level of services this allocated amount will support.
OFFICE OF INSPECTOR GENERAL
Appropriations, 2016.................................... $4,180,000
Budget estimate, 2017................................... 4,801,000
Committee recommendation................................ 4,801,000
PROGRAM DESCRIPTION
The mission of the Office of Inspector General [OIG] is to
ensure that NARA safeguards and preserves the records of our
Government while providing the American people with access to
the essential documentation of their rights and the actions of
their Government. The OIG accomplishes this by combating fraud,
waste, and abuse through high-quality objective audits and
investigations covering all aspects of agency operations at
facilities nationwide. The OIG also serves as an independent,
internal advocate for the economy, efficiency, and
effectiveness of NARA and its operations.
COMMITTEE RECOMMENDATION
The Committee recommends $4,801,000 for the Office of
Inspector General [OIG]. This amount is $621,000 above the
fiscal year 2016 enacted level and equal to the budget request.
The Committee supports a distinct account for the OIG in order
to clearly identify the resources necessary to staff and
operate the expanding mission-critical oversight and
accountability functions performed by the OIG to ensure
responsible NARA stewardship over public records.
REPAIRS AND RESTORATION
Appropriations, 2016.................................... $7,500,000
Budget estimate, 2017................................... 7,500,000
Committee recommendation................................ 7,500,000
PROGRAM DESCRIPTION
This account provides for the repair, alteration, and
improvement of Archives facilities and Presidential libraries
nationwide, and provides adequate storage for holdings. Funding
made available will better enable NARA to maintain its
facilities in proper condition for public visitors,
researchers, and NARA employees, and also maintain the
structural integrity of the buildings.
COMMITTEE RECOMMENDATION
The Committee recommends $7,500,000 for the repairs and
restoration account. This amount is the same as the fiscal year
2016 enacted level and equal to the budget request.
The Committee appreciates NARA's submission of an update of
its comprehensive capital needs assessment for its entire
infrastructure of Presidential libraries and records
facilities, as part of the fiscal year 2017 budget submission
and urges NARA to include an appropriate level of funding for
repair of valuable historic Presidential libraries in the
fiscal year 2018 budget request.
NATIONAL HISTORICAL PUBLICATIONS AND RECORDS COMMISSION
GRANTS PROGRAM
Appropriations, 2016.................................... $5,000,000
Budget estimate, 2017................................... 5,000,000
Committee recommendation................................ 5,000,000
PROGRAM DESCRIPTION
The National Historical Publications and Records Commission
[NHPRC] provides grants nationwide to preserve and publish
records that document American history. Administered within the
National Archives, which preserves Federal records, NHPRC helps
State, local, and private institutions preserve non-Federal
records, helps publish the papers of major figures in American
history, and helps archivists and records managers improve
their techniques, training, and ability to serve a range of
information users. Since 1964, the NHPRC has funded nearly
5,000 projects at local government archives, colleges and
universities, and other nonprofit institutions to facilitate
use of public records and other collections by scholars, family
and local historians, journalists, documentary filmmakers, and
many others.
COMMITTEE RECOMMENDATION
The Committee recommends $5,000,000 for the National
Historical Publications and Records Commission [NHPRC]. This
amount is equal to the fiscal year 2016 enacted level and equal
to the budget request.
The Committee supports the central role the NHPRC program
plays in the preservation and dissemination of the Nation's
documentary heritage and its success in leveraging private
sector contributions.
The Committee commends the National Archives and Records
Administration and the National Historical Publications and
Records Commission for their work to ensure the publication and
recording of our Nation's history. The Committee urges the
National Historical Publications and Records Commission to
continue to support the completion of documentary editions
through the National Historical Publications and Records
Commission Grants Program and to support the scholarly
presentation of our country's most treasured historical
documents.
The Committee notes that the funding provided will enable
NARA, through the NHPRC, to undertake a variety of initiatives,
including advancing archives preservation, access, and
digitization projects within the interlocking repositories of
historic records and hidden collections; ensuring public access
to some of the most important historical resources that are
maintained outside of Federal repositories; and digitizing
nationally significant historic records collections to
facilitate round-the-clock Internet availability.
National Credit Union Administration
COMMUNITY DEVELOPMENT REVOLVING LOAN FUND
Appropriations, 2016.................................... $2,000,000
Budget estimate, 2017................................... 2,000,000
Committee recommendation................................ 2,000,000
PROGRAM DESCRIPTION
The Community Development Revolving Loan Fund [CDRLF]
program was established in 1979 to assist officially designated
``low-income'' credit unions in providing basic financial
services to low-income communities. Low-interest loans and
deposits are made available to assist these credit unions.
Loans or deposits are normally repaid in 5 years, although
shorter repayment periods may be considered. Technical
assistance grants [TAGs] are also available to low-income
credit unions for improving operations as well as addressing
safety and soundness issues. Credit unions use TAG funds for
specific initiatives, including taxpayer assistance, financial
education, home ownership initiatives, and training assistance.
COMMITTEE RECOMMENDATION
The Committee recommends $2,000,000 for technical
assistance grants to community development credit unions. This
funding level is equal to the budget request and equal to the
fiscal year 2016 enacted level. The Committee expects the CDRLF
to continue making loans from available funds derived from
repaid loans and interest earned on previous loans to
designated credit unions.
Office of Government Ethics
SALARIES AND EXPENSES
Appropriations, 2016.................................... $15,742,000
Budget estimate, 2017................................... 16,090,000
Committee recommendation................................ 16,090,000
PROGRAM DESCRIPTION
The Office of Government Ethics [OGE], a separate agency
within the executive branch, was established by the Ethics in
Government Act of 1978 (Public Law 95-521). The OGE is charged
by law to provide overall direction of executive branch
policies designed to prevent conflicts of interest and ensure
high ethical standards for executive branch employers. The OGE
carries out these responsibilities by promulgating and
maintaining enforceable standards of ethical conduct for nearly
2.7 million civilian employees in more than 130 executive
branch agencies and the White House; overseeing a financial
disclosure system that reaches 26,000 public and over 380,000
confidential financial disclosure report filers; ensuring that
executive branch ethics programs are in compliance with
applicable ethics laws and regulations; providing direct
education and training products to more than 4,500 ethics
officials executive branch-wide; conducting outreach to the
general public, the private sector, and civil society; and
providing technical assistance to, State, local, and foreign
governments, and international organizations.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $16,090,000
for salaries and expenses of the OGE in fiscal year 2017 in
order to fully support agency efforts related to the
Presidential transition.
Office of Personnel Management
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF TRUST FUNDS)
Appropriations, 2016.................................... $120,688,000
Budget estimate, 2017................................... 144,867,000
Committee recommendation................................ 120,688,000
PROGRAM DESCRIPTION
The Office of Personnel Management [OPM] was established by
Public Law 95-454, the Civil Service Reform Act of 1978,
enacted on October 13, 1978. OPM is responsible for management
of Federal human resources policy and oversight of the merit
civil service system. Although individual agencies are largely
responsible for personnel operations, OPM provides a
Governmentwide framework for human resources policy, advises
and assists agencies (often on a reimbursable basis) with
workforce planning and personnel matters, and ensures that
agency operations are consistent with requirements of law on
issues such as veterans preference and merit system compliance.
OPM oversees examination of applicants for employment in the
competitive service; issues regulations and policies on
recruitment, hiring, classification and pay, training, and
other aspects of personnel management; and manages the process
for personnel security and background checks for suitability
and national security clearances. OPM is also responsible for
administering the retirement, health benefits, and life
insurance programs affecting most Federal employees, retired
Federal employees, and their families and survivors.
COMMITTEE RECOMMENDATION
The Committee recommends a general fund appropriation of
$120,688,000 for the salaries and expenses of the Office of
Personnel Management.
National Background Investigations Bureau.--In fiscal year
2016, the Administration announced the transition of OPM's
background investigation work from Federal Investigative
Services [FIS] to the National Background Investigations Bureau
[NBIB]. NBIB was created to restructure the way OPM handles
background investigations in the wake of the massive breach
announced last year that exposed sensitive information on
millions of current, former and prospective Federal employees,
their family members, and other contacts. Under the planned
structure, NBIB will be housed within OPM while security of
background investigation data will be transferred to the
Department of Defense. The Committee remains concerned about
the overall plan for NBIB, particularly OPM's role, and notes
that the few details provided about NBIB have raised more
questions than answers. Ultimately, the Committee is concerned
that the creation of NBIB amounts to little more than a new
name for FIS despite the need for more comprehensive reforms to
the background investigations process, including determining
whether OPM should continue to play a role in the process. The
Committee directs GAO to monitor the development of NBIB and
report to the Committees on Appropriations of the House and
Senate not later than 6 months after enactment of this Act on
the transition, operation, and oversight of NBIB.
OPM's IT Infrastructure.--The Administration's decision to
create a new IT environment within DOD to secure background
investigation data exhibits a lack of confidence both in OPM's
current IT systems and the agency's ability to implement
sufficient reforms. OPM continues to operate dual environments
as it migrates from its existing legacy infrastructure to the
Shell. In fiscal year 2016, the Committee provided OPM an
additional $21,000,000 for IT modernization. However,
significant concerns remain relating to OPM's capital planning
practices, the agency's procurement and management of
contracts, and continued uncertainty surrounding the total cost
of the modernization project. OPM's IG recently reported that
``another impact of OPM's inadequate project planning is the
potentially wasteful spending that has occurred in creating a
`Shell' environment before it was clear that it was the best
solution, and before the technical analysis of the scope of the
effort was completed.'' The Committee expects OPM to keep it
informed on the status of future contracts executed to carry
out the project and encourages OPM to perform the necessary
project planning practices required by the Office of Management
and Budget that were recommended by OPM's IG.
Retirement Processing.--The Committee acknowledges OPM's
actions to address the backlog of retirement claims and
supports continued efforts to eliminate the backlog. OPM is
directed to continue to inform the Committee of its progress.
Retirement Modernization.--The Committee directs OPM to
continue providing reports and status update briefings on
modernization efforts and the strategic technology plan, as
developments and milestones occur, and future plans are
determined.
Federal Security Clearances.--The Committee notes that in
light of misconduct involving Federal contractor personnel
under OPM's Federal Investigative Services, there has been
increased scrutiny into the process of conducting quality
reviews for security clearance background investigations. The
Committee recognizes the inherent conflict of interest when
Federal security clearance contractors are contractually
permitted to conduct quality reviews of their own work and
urges the OPM Director to prevent future occurrences through
stricter contractual control mechanisms. The Committee notes
that preventing such inherent conflicts of interest with
Federal contractors conducting security clearances
significantly mitigates risk, a critical element to good
governance and U.S. national security. Therefore, the Committee
includes a provision in title VI preventing such contractors
from conducting quality reviews of their own work. To ensure
that contractor work is conducted properly, OPM should ensure
that internal controls are implemented to prevent
investigations from being closed prematurely.
limitation
(TRANSFER OF TRUST FUNDS)
Limitation, 2016........................................ $124,550,000
Budget estimate, 2017................................... 144,653,000
Committee recommendation................................ 124,550,000
PROGRAM DESCRIPTION
These funds will be transferred from the appropriate trust
funds of the Office of Personnel Management to cover
administrative expenses for the retirement and insurance
programs.
COMMITTEE RECOMMENDATION
The Committee recommends a limitation of $124,550,000 for
administrative expenses.
OFFICE OF INSPECTOR GENERAL
salaries and expenses
(INCLUDING TRANSFER OF TRUST FUNDS)
Appropriations, 2016.................................... $4,365,000
Budget estimate, 2017................................... 5,072,000
Committee recommendation................................ 5,072,000
PROGRAM DESCRIPTION
The Office of Inspector General is charged with
establishing policies for conducting and coordinating efforts
which promote economy, efficiency, and integrity in the Office
of Personnel Management's activities which prevent and detect
fraud, waste, and mismanagement in the agency's programs.
Contract audits provide professional advice to agency
contracting officials on accounting and financial matters
regarding the negotiation, award, administration, repricing,
and settlement of contracts. Internal agency audits review and
evaluate all facets of agency operations, including financial
statements. Evaluation and inspection services provide detailed
technical evaluations of agency operations. Insurance audits
review the operations of health and life insurance carriers,
healthcare providers, and insurance subscribers. The
investigative function provides for the detection and
investigation of improper and illegal activities involving
programs, personnel, and operations. Administrative sanctions
debar from participation in the health insurance program those
healthcare providers whose conduct may pose a threat to the
financial integrity of the program itself or to the well-being
of insurance program enrollees.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $5,072,000 for
salaries and expenses of the Office of Inspector General in
fiscal year 2017.
The Committee appreciates the audit work the Inspector
General has conducted on OPM's IT security programs and
practices and supports the Inspector General's recommendations
to improve OPM's technical security controls. The Committee
remains concerned about OPM's security posture as it overhauls
its technology infrastructure. The Committee encourages the
Inspector General to continue monitoring OPM's infrastructure
improvement process. The Committee is also concerned about the
ability of contractors to effectively provide assistance to
millions of Americans that were affected by the data breach in
addition to security controls with its existing vendors. The
Committee encourages the Inspector General to continue to
conduct oversight on OPM's contracting and procurement
practices.
Semiannual Report to Congress.--The Committee encourages
the Inspector General to regularly report in its Semiannual
Report to Congress OPM's efforts to improve and address
cybersecurity challenges including steps taken to prevent,
mitigate, and respond to data breaches involving sensitive
personnel records and information; OPM's cybersecurity policies
and procedures in place, including policies and procedures
relating to IT best practices such as data encryption,
multifactor authentication, and continuous monitoring; OPM's
oversight of contractors providing IT services; and OPM's
compliance with government-wide initiatives to improve
cybersecurity.
(LIMITATION ON TRANSFER FROM TRUST FUNDS)
Limitation, 2016........................................ $22,479,000
Budget estimate, 2017................................... 26,662,000
Committee recommendation................................ 25,112,000
COMMITTEE RECOMMENDATION
The Committee recommends a limitation on transfers from the
trust funds in support of the Office of Inspector General [OIG]
activities totaling $25,112,000 for fiscal year 2017.
Office of Special Counsel
salaries and expenses
Appropriations, 2016\1\................................. $24,119,000
Budget estimate, 2017................................... 26,535,000
Committee recommendation................................ 24,119,000
\1\Does not reflect use of prior year balances as permitted under Public
Law 113-76, div. E.
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PROGRAM DESCRIPTION
The U.S. Office of Special Counsel [OSC] provides a safe
channel for Federal employees to report waste, fraud, abuse,
and threats to public health and safety.
The OSC was first established on January 1, 1979. From 1979
until 1989, it operated as an autonomous investigative and
prosecutorial arm of the Merit Systems Protection Board [MSPB].
In 1989, Congress enacted the Whistleblower Protection Act
(Public Law 101-12), which made OSC an independent agency
within the executive branch. In 1994, the Uniformed Services
Employment and Reemployment Rights Act [USERRA] (Public Law
103-353) became law. It defined employment-related rights of
persons in connection with military service, prohibited
discrimination against them because of that service, and gave
OSC new authority to pursue remedies for violations by Federal
agencies.
Enactment of the Whistleblower Protection Enhancement Act
(Public Law 112-199) in November 2012 significantly expanded
the jurisdiction of the OSC and the types of cases the OSC is
required by law to investigate.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $24,119,000
for OSC.
IT Security.--The Committee remains concerned about
information technology security at OSC. This is of particular
concern given the confidential nature of the agency's work and
their ongoing investigations. The Committee notes that OSC has
received a 34 percent budget increase over the past 3 years,
yet the agency has not adequately invested in IT equipment,
services, and staffing. Additionally, OSC has failed to develop
policies and procedures consistent with FISMA requirements, OMB
policy, and NIST guidelines. The Committee expects OSC to
prioritize information security and directs the agency to
report to the Committee within 90 days of enactment on its plan
to increase the security and resiliency of the agency's systems
and ensure compliance with Federal guidelines.
Veterans Affairs.--Approximately 37 percent of all OSC
cases in 2015 were from Department of Veterans Affairs [VA]
employees, up from approximately 20 percent of cases in 2009,
2010, and 2011. Although OSC continues to obtain relief for VA
whistleblowers, the Committee is concerned with the significant
increase of VA whistleblower cases in the last few years.
Therefore, the Committee believes that OSC should apply its
budget proportionally with the percentage of cases that it
receives from the VA.
Postal Regulatory Commission
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)
Appropriations, 2016.................................... $15,200,000
Budget estimate, 2017................................... 17,726,000
Committee recommendation................................ 15,200,000
PROGRAM DESCRIPTION
The Postal Regulatory Commission [PRC] is an independent
agency that has exercised regulatory oversight over the United
States Postal Service since its creation by the Postal
Reorganization Act of 1970. For over 3 decades, that oversight
consisted primarily of conducting public, on-the-record
hearings concerning proposed rates, mail classification, and
major service changes, and recommended decisions for action to
the Postal Service Board of Governors. The mission of the PRC
is to ensure transparency and accountability of the United
States Postal Service and foster a vital and efficient
universal mail system.
The Postal Accountability and Enhancement Act (Public Law
109-435) assigned significant responsibilities to the PRC.
These enhanced authorities include providing regulatory
oversight of the pricing of Postal Service products and
services, ensuring Postal Service transparency and
accountability, consulting on delivery service standards and
performance measures, consulting on international postal
policies, preventing cross-subsidization or other
anticompetitive postal practices, and serving as a forum to act
on complaints with postal products and services.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation, out of the
Postal Fund, of $15,200,000 for the Postal Regulatory
Commission.
The Committee urges the PRC, which is funded from the
Postal Service Fund and derived directly from postal rates and
fees paid by postal customers, to optimize efficient use of its
resources, including exercising prudent decision-making.
Privacy and Civil Liberties Oversight Board
SALARIES AND EXPENSES
Appropriations, 2016.................................... $21,297,000
Budget estimate, 2017................................... 10,081,000
Committee recommendation................................ 10,081,000
PROGRAM DESCRIPTION
The Privacy and Civil Liberties Oversight Board [PCLOB] is
an independent agency within the executive branch established
by the Implementing Recommendations of the 9/11 Commission Act
of 2007 (Public Law 110-53). The Board is the successor to the
Board created within the Executive Office of the President
under the Intelligence Reform and Terrorism Prevention Act of
2004 (Public Law 108-458) as recommended in the July 22, 2004
report of the National Commission on Terrorist Acts Upon the
United States (the 9/11 Commission).
The Board's purpose is to review and analyze actions the
executive branch takes to protect the Nation from terrorism,
ensuring the need for such actions is balanced with the need to
protect privacy and civil liberties; and to ensure that liberty
concerns are appropriately considered in the development and
implementation of laws, regulations, and policies related to
efforts to protect the Nation against terrorism.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $10,081,000
for the PCLOB. This amount is equal to the budget request and
$11,216,000 below the enacted level due to one-time costs in
fiscal year 2016 required to support the Board's physical move.
The Committee believes it is important to ensure that funds
are used efficiently during the required move. The Committee
directs the Board to continue to work with the General Services
Administration to minimize relocation costs and to report
regularly to the Committee regarding relocation efforts.
Securities and Exchange Commission
SALARIES AND EXPENSES
Appropriations, 2016.................................... $1,605,000,000
Budget estimate, 2017................................... 1,781,457,000
Committee recommendation................................ 1,605,000,000
PROGRAM DESCRIPTION
The Securities and Exchange Commission [SEC] is an
independent agency responsible for administering many of the
Nation's laws regulating the areas of securities and finance.
The mission of the SEC is to administer and enforce Federal
securities laws in order to protect investors, maintain fair,
honest, and efficient markets, and promote capital formation.
This includes ensuring full disclosure of appropriate financial
information, regulating the Nation's securities markets, and
preventing and policing fraud and malpractice in the securities
and financial markets.
COMMITTEE RECOMMENDATION
The Committee recommends a total budget (obligational)
authority of $1,605,000,000 for the salaries and expenses of
the SEC, to be fully derived from fee collections.
Fee Offset Nature of Account.--Pursuant to the Dodd-Frank
Act, transaction fees receipts are treated as offsetting
collections equal to the amount of the appropriation.
Reserve Fund Notifications.--The Committee appreciates the
SEC's adherence to its obligation to notify Congress of the
date, amount, and purpose of any obligation from the Fund
within 10 days of such obligation. The Committee directs the
SEC, in its written notifications to Congress required by 15
U.S.C. 78d(i)(3) regarding amounts obligated from the SEC
Reserve Fund, to specify: (1) the balance in the fund remaining
available after the obligation is deducted; (2) the estimated
total cost of the project for which amounts are being deducted;
(3) the total amount for all projects that have withdrawn
funding from the Reserve Fund since fiscal year 2012; and (4)
the estimated amount, per project, that will be required to
complete all ongoing projects which use funding derived from
the Reserve Fund.
Spending Plan.--The Committee directs the SEC to submit,
within 30 days of enactment, a detailed spending plan for the
allocation of appropriated funds displayed by discrete program,
project, and activity, including staffing projections,
specifying both FTEs and contractors, and planned investments
in information technology. The Committee also directs the SEC
to submit, within 30 days of enactment, a detailed spending
plan for the allocation of expenditures from the Reserve Fund.
Covered Clearing Agencies.--The Committee strongly urges
the Securities and Exchange Commission to expeditiously
finalize its Covered Clearing Agency rulemaking proposal to
avoid punitive capital charges from being imposed for accessing
the U.S. listed options market through European Union bank
affiliates. The proposal would subject systemically important
clearinghouses for which the SEC is the supervisory agency to
heightened standards that have been agreed upon by U.S. and
international banking and securities regulators. The Committee
is aware that these standards, the Principles for Financial
Markets Infrastructures, were issued in April 2012 to ensure
that clearinghouses are resilient in light of the critical role
they play in the financial markets and have already been
adopted by the Commodity Futures Trading Commission and the
Board of Governors of the Federal Reserve System for
systemically important clearinghouses for which they are the
supervisory agencies. The Committee notes adoption of the
proposal may help facilitate the process by which the European
Commission would find the SEC's regulatory regime for
clearinghouses to be equivalent to the regulatory regime for
clearinghouses in Europe, a recognition critical to the
continued competitiveness of U.S. options exchanges
internationally and the continued ability of persons outside of
the U.S. to effectively access the vibrant and very liquid U.S.
listed options market.
Selective Service System
SALARIES AND EXPENSES
Appropriations, 2016.................................... $22,703,000
Budget estimate, 2017................................... 22,900,000
Committee recommendation................................ 22,900,000
PROGRAM DESCRIPTION
The Selective Service System is an independent Federal
agency, operating with permanent authorization under the
Military Selective Service Act (50 U.S.C. App. 451 et seq.).
The agency is not part of the Department of Defense, but its
basic mission is to be prepared to supply manpower to the Armed
Forces adequate to ensure the security of the United States
during a time of national emergency. Since 1973, the Armed
Forces have relied on volunteers to fill military manpower
requirements. However, the Selective Service System remains the
primary vehicle by which personnel will be brought into the
military if Congress and the President should authorize a
return to the draft.
In December 1987, Selective Service was tasked by law
(Public Law 100-180) to develop plans for a postmobilization
healthcare personnel delivery system capable of providing the
necessary critically skilled healthcare personnel to the Armed
Forces in time of emergency. An automated system capable of
handling mass registration and inductions is now complete,
together with necessary draft legislation, a draft Presidential
proclamation, prototype forms and letters, and other products.
These products will be available should the need arise. The
development of supplemental standby products, such as a
compliance system for healthcare personnel, continues using
very limited existing resources.
committee recommendation
The Committee recommends an appropriation of $22,900,000
for the Selective Service System.
Small Business Administration
Appropriations, 2016.................................... $871,042,000
Budget estimate, 2017................................... 877,894,000
Committee recommendation................................ 871,161,000
PROGRAM DESCRIPTION
The Small Business Administration [SBA] provides American
entrepreneurs access to capital, Federal contracting
opportunities, and entrepreneurial education in order to grow
businesses and create jobs. SBA also provides disaster
assistance for businesses of all sizes, non-profit
organizations, homeowners, and renters.
COMMITTEE RECOMMENDATION
The Committee recommendation provides $871,161,000 for the
Small Business Administration [SBA]. The recommendation is
$119,000 above the fiscal year 2016 enacted level, and the
amount provided will support the same level or higher of
lending. The recommendation includes $158,829,000 for the
Disaster Loans Program Account designated by Congress as
disaster relief pursuant to the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended. Funding is distributed
among the SBA appropriation accounts as described below.
SALARIES AND EXPENSES
Appropriations, 2016.................................... $268,000,000
Budget estimate, 2017................................... 275,033,000
Committee recommendation................................ 268,000,000
PROGRAM DESCRIPTION
The Salaries and Expenses appropriation provides for the
overall operating expenses of the SBA, including compensation
and benefits for staff located at headquarters, regional, and
district offices, rent and other agency-wide costs, and
operating costs for program offices, including the Office of
Capital Access, Office of Credit Risk Management, Office of
Entrepreneurial Development, Office of Investments and
Innovation, Office of Government Contracting and Business
Development, Office of International Trade, Office of
Management and Administration, and for other program and
supporting offices.
COMMITTEE RECOMMENDATION
The Committee recommendation provides $268,000,000 for
salaries and expenses of the SBA.
The Committee recommends at least $12,000,000 for SBA's
Office of Credit Risk Management [OCRM] for lender oversight
and risk-based reviews. Funding for the Office of General
Counsel has been provided separately from this total. In
support of its mission to analyze and manage the risk of SBA's
loan portfolio, OCRM performs performance analytics to identify
and understand lender performance trends and assess the quality
of the overall loan portfolio. The Committee finds that OCRM
must play a key role in eliminating waste, fraud, and abuse in
SBA lending programs and protecting taxpayer losses on loans by
ensuring lenders comply with procedures that mitigate the risk
of loss under SBA's loan programs.
The Committee is concerned about the quality of lender
oversight activities at SBA, particularly considering the
magnitude of SBA's loan portfolio, and notes that SBA's Office
of Inspector General continues to identify weaknesses in SBA's
lender oversight process. The 7(a) loan program alone has grown
over 50 percent in the past three fiscal years, and the
Committee strongly believes SBA must conduct robust oversight
and enforcement efforts to ensure the integrity of all lending
programs. SBA loan programs rely on numerous outside parties
(e.g., private lenders, local economic development
organizations, nonprofit community lenders, and venture capital
investors) to complete loan transactions, and many of SBA's
loans are made by lenders to whom SBA has delegated loan-making
authority. SBA's Office of Inspector General has reported that
although SBA has made some improvements, its controls were not
adequate to monitor loan agent involvement and mitigate the
risk of loss and fraud in the 7(a) loan program. The Committee
agrees with SBA's Inspector General recommendations and
supports efforts to strengthen OCRM's ability to conduct strong
oversight of SBA loan portfolios and the lenders that
participate in order to reinforce general program soundness and
manage overall risk.
Finally, the Committee finds that the Loan and Lender
Monitoring System [L/LMS] is a vital component of the SBA's
technical capability to provide oversight of its largest
lending programs, the 7(a) and 504 loan programs. OCRM uses L/
LMS as a tool for managing the risk in the loan and lender
portfolios of more than 4,500 lenders, who have approximately
320,000 active loans valued at more than $100,000,000,000 in
current dollars. The Committee is disappointed that SBA allowed
this important oversight tool to lapse briefly in February and
March 2016. SBA is directed to continue its use of the Loan and
Lender Monitoring System [L/LMS] to ensure that lenders are
employing sound financial risk management techniques to manage
and monitor risk within their SBA loan portfolios. SBA is
directed to continue to maintain the current capability and
capacity of the L/LMS system, and to strongly consider ways to
upgrade the system to improve lender oversight.
The Committee recognizes that the three current exceptions
for the North American Industry Classification System [NAICS]
Code 541712 are vastly similar. Therefore, the SBA should look
at the impact of consolidating the current exceptions into one
with an employee cap of 1,500 and consider revising the
methodology for determining employee size for NAICS Codes to
use a 36-month rolling average computation.
SBIC Program Licensing.--The Committee continues to be
concerned with the slow pace of licensing at the Small Business
Investment Company [SBIC] program. SBA has a 6-month goal to
approve licenses that are in the application process, yet the
time for license approval is often more than 1 year. Delays are
occurring in contradiction to the fact that the number of
applications has decreased. The Committee continues to
recommend that the SBA create a meaningfully expedited and
streamlined licensing process for repeat licensees with the
same management teams and proven track record in the SBIC
Program. This fast track process for repeat licensees should be
completed within 45 days after an application is submitted to
the SBA, which will allow SBA to properly focus their resources
on first time funds.
SBIC Program and State Data.--For decades an important set
of consolidated SBIC Program data has routinely been shared
with the industry, Congress, and the public on a monthly basis.
This important information was made available on a monthly
basis as a meaningful economic indicator on the small business
sector and an indicator of SBA's activities and performance. In
addition to the SBIC Program data, the SBA routinely released
annual data on the impact of SBIC investments as well as
specific companies in all 50 States. The SBA has only released
the SBIC program data once since the end of the 2015 fiscal
year, and the SBA has not released the State data since the
2013 fiscal year. The Committee recommends that SBA release
this data to industry and Congress to allow for a thorough
review of the impact of the SBIC Program on the economy and an
analysis of the performance of the SBA.
Federal and State Technology Partnership Program.--The
Committee recommends $3,000,000 for the Federal and State
Technology [FAST] Partnership Program in fiscal year 2017. The
Committee supports the FAST program's efforts to reach
innovative, technology-driven small businesses and to leverage
the Small Business Innovation Research [SBIR] and Small
Business Technology Transfer [STTR] program to stimulate
economic development. The FAST program is particularly
important in States that are seeking to build high technology
industries but are underrepresented in the SBIR/STTR programs.
The Committee recognizes that Small Business and Technology
Development Centers [SBTDCs] serve small businesses in these
fields and are accredited to provide intellectual property and
technology commercialization assistance to businesses in high
technology industries. Of the amount provided, $1,000,000 shall
be for FAST awards to SBTDCs fully accredited for technology
designation as of December 31, 2016.
8(a) Business Development Program.--The Committee supports
the work of the 8(a) Business Development Program. However, the
Committee is concerned that not enough is done to ensure
participants are eligible and that the program is not being
abused. The Small Business Administration is directed to report
to Congress within 90 days of enactment on efforts made to
protect the integrity of the program. Further, the Committee
directs the Small Business Administration to limit a former
participant or principal of a former participant to an equity
ownership interest of no more than 20 percent of a current
participant in the development stage of the program and no more
than 30 percent of a participant in the transitional stage of
the program if the participant is in the same or similar line
of business as the former participant or principal of the
former participant.
ENTREPRENEURIAL DEVELOPMENT PROGRAMS
Appropriations, 2016.................................... $231,100,000
Budget estimate, 2017................................... 230,600,000
Committee recommendation................................ 231,100,000
PROGRAM DESCRIPTION
SBA's Entrepreneurial Development Programs support non-
credit business assistance to entrepreneurs. The appropriation
includes funding for a vast network of resource partners
located throughout the Nation, including Small Business
Development Centers, Women's Business Centers, SCORE
(previously Service Corps of Retired Executives) chapters, and
Veterans Business Outreach centers. This resource network and
several other SBA programs provide training, counseling, and
technical assistance to entrepreneurs.
COMMITTEE RECOMMENDATION
The Committee recommendation provides $231,100,000 for the
SBA Entrepreneurial Development Programs.
The Committee recommendations, by program, are displayed in
the following table:
ENTREPRENEURIAL DEVELOPMENT PROGRAMS
[In thousands of dollars]
------------------------------------------------------------------------
Committee
recommendation
------------------------------------------------------------------------
7(j) Technical Assistance............................... 2,800
Entrepreneurship Education.............................. 10,000
Growth Accelerators..................................... 1,000
HUBZone Program......................................... 3,000
Microloan Technical Assistance.......................... 25,000
National Women's Business Council....................... 1,500
Native American Outreach................................ 2,000
Regional Innovation Clusters............................ 6,000
SCORE................................................... 10,500
Small Business Development Centers (SBDCs).............. 120,000
State Trade Expansion Promotion (STEP).................. 20,000
Veterans Outreach....................................... 12,300
Women's Business Centers (WBC).......................... 17,000
---------------
Total, Entrepreneurial Development Programs....... 231,100
------------------------------------------------------------------------
The Committee directs that the amounts provided for SBA's
Entrepreneurial Development Programs, as specified in the table
above, shall be administered in the same manner as previous
years and shall not be reduced, reallocated, or reprogrammed to
provide additional funds for other programs, initiatives, or
activities.
Small Business Development Centers.--The Committee
continues to support the Small Business Development Center
[SBDC] Program and recommends $120,000,000 for fiscal year
2017. SBDCs play an integral role in the SBA resource partner
network that supports 1,200,000 small business owners and
aspiring entrepreneurs each year. Through more than 900 service
centers, SBDCs provide management and technical assistance in
key areas to small business clients throughout the Nation. As
the economy struggles, SBDCs have reported a significant
increase in demand for their expertise as businesses seek
guidance on how to weather the economic conditions and as newly
unemployed Americans look for advice on starting a small
business as a new career path. Providing support for SBDCs is
more critical than ever as our economy works to recover and
grow. The Committee directs SBA to prioritize the continuation
of a robust SBDC network and to partner with the network and
SBA's other resource partners in the implementation of all of
SBA's lending, entrepreneurial development, and procurement
programs.
The Committee directs that, subject to the availability of
funds, the Administrator of the SBA shall, to the extent
practicable, ensure that a small business development center is
appropriately reimbursed within the same fiscal year in which
the expenses are submitted for reimbursement for any and all
legitimate expenses incurred in carrying out activities under
section 21(a)(1) et seq. of the Small Business Act (15 U.S.C.
648(a)(1) et seq.).
Veterans Programs.--The Committee supports funding for
veterans programs and provides $12,300,000 for veterans
outreach, which includes funding for Veterans Business Outreach
Centers [VBOC], Boots to Business, Veteran-Women Igniting the
Spirit of Entrepreneurship [V-WISE], Entrepreneurship Bootcamp
for Veterans with Disabilities [EBV], and Boots to Business
Reboot. The recommendation is equal to the fiscal year 2016
enacted level and equal to the budget request.
Native American Outreach.--SBA's Office of Native American
Affairs works to ensure that American Indians, Alaska Natives,
and Native Hawaiians seeking to create, develop, and expand
small businesses have full access to SBA's entrepreneurial
development, lending, and procurement programs. The Committee
recommends $2,000,000 for SBA's Native American outreach
programs. The recommendation is equal to the fiscal year 2016
enacted level and equal to the budget request.
HUBZone.--The Historically Underutilized Business Zones
[HUBZone] program helps small businesses in urban and rural
communities gain preferential access to Federal procurement
opportunities. The Committee recommends $3,000,000 for the
HUBZone program. This program is a critical resource for
distressed communities, especially those surrounding military
bases closed under the Base Realignment and Closure [BRAC]
process. The Committee is aware that businesses located in a
BRAC HUBZone face unique challenges in qualifying for the
program and competing for Federal procurement opportunities,
and directs the SBA to examine ways to address these issues in
any future revisions of the Small Business Act or other
legislation.
Regional Innovation Clusters.--The Committee recommends
$6,000,000 for SBA's regional innovation clusters. The
Committee encourages SBA to support nonprofit organizations
that provide business development services designed to
accelerate industry sectors built on regional assets under the
initiative. The Committee encourages SBA to support initiatives
that promote a culture of innovative entrepreneurship and
provide services and support directly to early-stage and high-
tech innovation opportunities.
State Trade and Expansion Promotion [STEP].--The Committee
recommends $20,000,000 for STEP for fiscal year 2017. STEP
provides grants to states to supplement their export promotion
programs with the goal of increasing the number of small
businesses that are exporting and raising the value of exports
for small businesses that are already exporting. States provide
matching funds for STEP grants and have used funds to support
trade missions, international marketing efforts, export
counseling, and export trade show exhibits.
The Committee recognizes the impact of the SBA State Trade
and Expansion Promotion [STEP] program in supporting the
development of State Export Partnerships. To extend this
impact, promote collaboration, and eliminate duplication of
services, the Committee encourages STEP State providers to
coordinate activities and deliverables with Small Business
Development Centers [SBDCs].
Entrepreneurial Education.--The Committee recommends
$10,000,000 for the entrepreneurial education program. This
amount is equal to the fiscal year 2016 enacted level and equal
to the budget request. The recommendation will allow SBA to
support its entrepreneurial education initiative to provide
intensive training to small business owners with existing small
businesses that have completed the ``start up'' phase and are
facing common, solvable challenges to sustain and grow their
businesses.
OFFICE OF INSPECTOR GENERAL
Appropriations, 2016.................................... $19,900,000
Budget estimate, 2017................................... 19,900,000
Committee recommendation................................ 19,900,000
PROGRAM DESCRIPTION
The SBA Office of Inspector General conducts audits to
identify wasteful expenditures and program mismanagement,
investigates fraud and other wrongdoing, and takes other
actions to deter and detect waste, fraud, abuse, and
inefficiencies in SBA programs and operations.
COMMITTEE RECOMMENDATION
The Committee recommendation provides $19,900,000 for the
Office of Inspector General.
The Committee directs the Inspector General to continue
routine analysis and reporting on SBA's modernization of its
loan management and accounting systems, including acquisition,
contractor oversight, implementation, and progress regarding
budget and schedule.
OFFICE OF ADVOCACY
Appropriations, 2016.................................... $9,120,000
Budget estimate, 2017................................... 9,320,000
Committee recommendation................................ 9,120,000
PROGRAM DESCRIPTION
The Office of Advocacy, an independent office within SBA,
solicits and represents the views, concerns, and interests of
small businesses before Congress, the White House, Federal
agencies, Federal courts, and State policymakers.
COMMITTEE RECOMMENDATION
The Committee recommendation provides $9,120,000 for the
Office of Advocacy. The recommendation is equal to the fiscal
year 2016 enacted level.
BUSINESS LOANS PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
Appropriations, 2016.................................... $156,064,000
Budget estimate, 2017................................... 157,064,000
Committee recommendation................................ 157,064,000
PROGRAM DESCRIPTION
SBA administers a variety of loan programs to expand
entrepreneurs' access to capital to start and grow small
businesses. The 7(a) loan program is the Federal Government's
primary business loan program to assist small businesses in
obtaining financing when they do not qualify for traditional
credit. Under 7(a), SBA guarantees a portion (typically 75 to
90 percent) of loans made by private lenders. Under the 504
program, SBA supports loans to small businesses for financing
major fixed assets such as real estate and major equipment. The
504 program combines SBA guaranteed loans made by nonprofit
Certified Development Companies [CDCs] with loans from private
lenders to provide financing for small businesses.
Under the Small Business Investment Company [SBIC] program,
SBA partners with professionally managed investment funds,
called SBICs. The SBICs combine their own capital with funds
borrowed with an SBA guarantee to make investments in small
businesses.
Finally, under the Microloan program, SBA provides funds to
specialized nonprofit, community-based intermediary lenders
which provide small loans for working capital, inventory, and
other operating expenses. The maximum microloan is $50,000 and
the average loan made under the program is $12,246.
COMMITTEE RECOMMENDATION
The Committee recommendation provides $157,064,000 for the
Business Loans Program Account for fiscal year 2017. The
recommendation is equal to the budget request and will support
the same level or higher of lending.
The recommendation provides $152,726,000 for administrative
expenses, which may be transferred to and merged with SBA
salaries and expenses to cover the common overhead expenses
associated with the business loans programs.
The recommendation provides $4,338,000 for the Microloan
direct loan program to support lending volume estimated at
$44,000,000. An additional amount of $25,000,000 is recommended
under the heading ``Entrepreneurial Development Programs'' for
technical assistance grants to Microlending intermediaries.
Business loan programs provide crucial access to capital
for new and expanding small businesses, but the approval
process can be challenging and overly burdensome. The SBA
should solicit input from loan recipients seeking ways to
streamline the loan review and approval process for small
businesses. The Committee directs the SBA to report to the
Committees on Appropriations and Small Business and
Entrepreneurship within 180 days on the results of this
solicitation, including legislative changes, requests for
additional resources, or other areas that SBA may pursue in
order to make the loan application and approval process more
efficient for applicants.
DISASTER LOANS PROGRAM ACCOUNT
(INCLUDING TRANSFERS OF FUNDS)
Appropriations, 2016.................................... $186,858,000
Budget estimate, 2017................................... 185,977,000
Committee recommendation................................ 185,977,000
PROGRAM DESCRIPTION
SBA provides low-interest, long-term loans to businesses of
all sizes, homeowners, renters, and nonprofit organizations
affected by disasters. SBA disaster loans are the primary form
of Federal assistance for the repair and rebuilding of non-
farm, private sector disaster losses. SBA makes two types of
disaster loans. Physical disaster loans are for permanent
rebuilding and replacement of uninsured or underinsured
disaster-damaged privately owned real and/or personal property
and are available to businesses of all sizes, nonprofit
organizations, homeowners, and renters. Economic Injury
Disaster Loans provide necessary working capital for small
businesses and nonprofit organizations until normal operations
resume after a disaster.
COMMITTEE RECOMMENDATION
The Committee recommends $185,977,000 for the
administrative costs of the Disaster Loans program. This amount
is equal to the budget request. Of the total recommendation,
$158,829,000 is designated by Congress as disaster relief
pursuant to the Balanced Budget and Emergency Deficit Control
Act of 1985, as amended.
ADMINISTRATIVE PROVISIONS--SMALL BUSINESS ADMINISTRATION
(INCLUDING RESCISSION AND TRANSFER OF FUNDS)
Section 520 continues a provision concerning transfer
authority and availability of funds.
Section 521 permanently rescinds unobligated balances in
the amount of $55,000,000 made available for the Certified
Development Company Program under section 503 of the Small
Business Investment Act of 1958.
United States Postal Service
PAYMENT TO THE POSTAL SERVICE FUND
Appropriations, 2016.................................... $55,075,000
Budget estimate, 2017................................... 63,658,000
Committee recommendation................................ 48,422,000
PROGRAM DESCRIPTION
The United States Postal Service does not depend upon
taxpayer subsidies through discretionary appropriations for its
operations but generates nearly all of its more than
$65,000,000,000 in annual gross operating revenue by charging
users of the mail for the costs of postage, products, and
services. Funds provided to the Postal Service in the Payment
to the Postal Service Fund include appropriations for revenue
forgone including providing free mail for the blind, and for
overseas absentee voting.
COMMITTEE RECOMMENDATION
The Committee recommends appropriations totaling
$48,422,000 for payment to the Postal Service Fund to
compensate for revenue forgone on free mail for the blind and
for overseas voters.
The Committee includes provisions in the bill to ensure
that mail for overseas voting and mail for the blind shall
continue to be free; that 6-day delivery and rural delivery of
mail shall continue without reduction; and that none of the
funds provided be used to consolidate or close small rural and
other small post offices in fiscal year 2017.
On May 27, 2015, the Postal Service announced its decision
to defer most of the mail processing plant consolidations
scheduled to take place as the final stage of its Network
Rationalization Initiative. The Postal Service is encouraged to
update the Area Mail Processing feasibility studies for these
plants using the most recent available data in advance of
implementing the proposed consolidations.
The Committee is concerned that the Postal Service and
Postal Regulatory Commission have not completed the methodology
on rural and urban mail delivery despite directives pursuant to
enactment of the Consolidated Appropriations Act, 2016 (Public
Law 114-113). The rural mail delivery report is expected to
show service scores for mail from rural to rural areas, rural
to urban areas and urban to rural areas, with timeliness scores
broken down by State. This report is necessary to demonstrate
whether major changes in the Postal Service mail processing
network have had a deleterious effect upon rural mail service.
The Committee directs that progress on completion and
subsequent implementation of this methodology be prioritized at
both the Postal Service and Postal Regulatory Commission in
order to address mail delays identified by this effort.
OFFICE OF INSPECTOR GENERAL
SALARIES AND EXPENSES
(INCLUDING TRANSFER OF FUNDS)
Appropriations, 2016.................................... $248,600,000
Budget estimate, 2017................................... 258,800,000
Committee recommendation................................ 252,600,000
PROGRAM DESCRIPTION
The United States Postal Service Office of Inspector
General [OIG] is an independent organization established in
1996 and charged with reporting to Congress on the overall
efficiency, effectiveness, and economy of Postal Service
programs and operations. The OIG plays a key role in
maintaining the integrity and accountability of America's
postal service, its revenue and assets, and its employees. The
OIG meets this responsibility by conducting and supervising
objective and independent audits, investigations, and other
reviews.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation, out of the
Postal Fund, of $252,600,000 for the United States Postal
Service Office of Inspector General.
United States Tax Court
salaries and expenses
Appropriations, 2016.................................... $51,300,000
Budget estimate, 2017................................... 53,861,000
Committee recommendation................................ 53,861,000
PROGRAM DESCRIPTION
The U.S. Tax Court is an independent judicial body in the
legislative branch established in 1969 under Article I of the
Constitution of the United States. The Court was created to
provide a national forum for the resolution of disputes between
taxpayers and the Internal Revenue Service, to resolve cases
expeditiously while giving careful consideration to the merits
of each matter, and to ensure the uniform interpretation of the
Internal Revenue Code.
The Tax Court is one of three courts in which taxpayers can
bring suit to contest IRS liability determinations, and the
only one in which taxpayers can do so without prepaying any
portion of the disputed taxes. The matters over which the Court
has jurisdiction are set forth in various sections of title 26
of the United States Code.
The Court is composed of 19 judges, one of whom the judges
elect as chief judge. Tax Court judges are appointed to 15-year
terms by the President with the advice and consent of the
Senate. In their judicial duties the judges are assisted by
senior judges, who participate in the adjudication of regular
cases, and by special trial judges, who hear small tax cases
and certain regular cases assigned to them by the chief judge.
The Court is headquartered in Washington, DC, and conducts
trial sessions in 74 cities throughout the United States,
including Hawaii and Alaska. Decisions by the Court are
reviewable by the U.S. Courts of Appeals and, if certiorari is
granted, by the Supreme Court.
COMMITTEE RECOMMENDATION
The Committee recommends an appropriation of $53,861,000
for the U.S. Tax Court.
STATEMENT CONCERNING GENERAL PROVISIONS
The Financial Services and General Government
appropriations bill includes general provisions which govern
both the activities of the agencies covered by the bill, and,
in some cases, activities of agencies, programs, and general
government activities that are not specifically covered by the
bill.
The bill contains a number of general provisions that have
been carried in this bill for many years and which are routine
in nature and scope. General provisions in the bill are
explained under this section of the report. Those general
provisions that deal with a single agency only are shown as
administrative provisions immediately following that particular
agency's or department's appropriation accounts in the bill.
Those provisions that address activities or directives
affecting all of the agencies covered in this bill are
contained in title VI. General provisions that are
Governmentwide in scope are specified in title VII of this
bill. General provisions applicable to the District of Columbia
are set forth in title VIII of this bill.
TITLE VI
GENERAL PROVISIONS--THIS ACT
Section 601 continues the provision prohibiting pay and
other expenses of non-Federal parties intervening in regulatory
or adjudicatory proceedings funded in this act.
Section 602 continues the provision prohibiting obligations
beyond the current fiscal year and prohibits transfers of funds
unless expressly provided.
Section 603 continues the provision limiting expenditures
for any consulting service through procurement contracts where
such expenditures are a matter of public record and available
for public inspection.
Section 604 continues the provision prohibiting funds in
this act from being transferred without express authority.
Section 605 continues the provision prohibiting the use of
funds to engage in activities that would prohibit the
enforcement of section 307 of the 1930 Tariff Act (46 Stat.
590).
Section 606 continues the provision prohibiting the use of
funds unless the recipient agrees to comply with the Buy
American Act.
Section 607 continues the provision prohibiting funding for
any person or entity convicted of violating the Buy American
Act.
Section 608 continues the provision authorizing the
reprogramming of funds and specifies the reprogramming
procedures for agencies funded by this act.
Section 609 continues the provision ensuring that 50
percent of unobligated balances may remain available for
certain purposes.
Section 610 continues the provision restricting the use of
funds for the Executive Office of the President to request
official background reports from the Federal Bureau of
Investigation without the written consent of the individual who
is the subject of the report.
Section 611 continues the provision ensuring that the cost
accounting standards shall not apply with respect to a contract
under the Federal Employees Health Benefits Program.
Section 612 continues the provision allowing use of certain
funds relating to nonforeign area cost of living allowances.
Section 613 continues the provision prohibiting the
expenditure of funds for abortions under the Federal Employees
Health Benefits Program.
Section 614 continues the provision providing an exemption
from section 613 if the life of the mother is in danger or the
pregnancy is a result of an act of rape or incest.
Section 615 continues the provision waiving restrictions on
the purchase of nondomestic articles, materials, and supplies
in the case of acquisition by the Federal Government of
information technology.
Section 616 continues a provision on the acceptance by
agencies or commissions funded by this act, or by their
officers or employees, of payment or reimbursement for travel,
subsistence, or related expenses from any person or entity (or
their representative) that engages in activities regulated by
such agencies or commissions.
Section 617 continues a provision permitting the Securities
and Exchange Commission and the Commodity Futures Trading
Commission to fund a joint advisory committee to advise on
emerging regulatory issues, notwithstanding section 708 of this
act.
Section 618 continues the provision requiring agencies
covered by this act with independent leasing authority to
consult with the General Services Administration before seeking
new office space or making alterations to existing office
space.
Section 619 provides for several appropriated mandatory
accounts, where authorizing language requires the payment of
funds for Compensation of the President, the Judicial
Retirement Funds (Judicial Officers' Retirement Fund, Judicial
Survivors' Annuities Fund, and the United States Court of
Federal Claims Judges' Retirement Fund), the Government Payment
for Annuitants for Employee Health Benefits and Employee Life
Insurance, and the Payment to the Civil Service Retirement and
Disability Fund. In addition, language is included for certain
retirement, healthcare and survivor benefits required by 3
U.S.C. 102 note.
Section 620 continues a provision allowing the Public
Company Accounting Oversight Board to obligate amounts
collected from monetary penalties for the purpose of funding
scholarships for accounting students, as authorized by the
Sarbanes-Oxley Act of 2002 (Public Law 107-204).
Section 621 continues the provision prohibiting funds for
the Federal Trade Commission to complete the draft report on
food marketed to children unless certain requirements are met.
Section 622 continues the provision prohibiting funds for
certain positions.
Section 623 continues a provision addressing conflicts of
interest by preventing contractor security clearance-related
background investigators from undertaking final Federal reviews
of their own work.
Section 624 continues the provision providing authority for
Chief Information Officers over information technology
spending.
Section 625 continues the provision prohibiting funds from
being used in contravention of the Federal Records Act.
Section 626 continues the provision related to electronic
communications.
Section 627 continues the provision relating to Universal
Service Fund payments for wireless providers.
Section 628 continues the provision relating to the
Securities and Exchange Commission.
Section 629 continues, with modification, the provision
relating to individuals affected by the data breach of systems
of OPM.
Section 630 is a new provision related to inspectors
general.
Section 631 is a new provision related to joint sales
agreements.
Section 632 is a new provision relating to the Securities
and Exchange Commission.
Section 633 is a new provision relating to the Federal
Communications Commission.
Section 634 is a new provision relating to financing of
sales of agriculture commodities and vessels entering a port or
place in Cuba.
Section 635 is a new provision relating to travel to Cuba.
Section 636 is a new provision relating to the access to
telecommunications devices and services in Cuba.
Section 637 is a new provision relating airline transit
stops to and from Cuba.
Section 638 is a new provision relating to financial
institutions that provide financial services to certain
entities engaged in commercial activities related to marijuana.
TITLE VII
GENERAL PROVISIONS--GOVERNMENTWIDE
Departments, Agencies, and Corporations
(INCLUDING TRANSFER OF FUNDS)
Section 701 continues the provision requiring agencies to
administer a policy designed to ensure that all of its
workplaces are free from the illegal use of controlled
substances.
Section 702 continues the provision setting specific limits
on the cost of passenger vehicles purchased by the Federal
Government with exceptions for police, heavy duty, electric
hybrid, and clean fuels vehicles with an exception for
commercial vehicles that operate on emerging motor vehicle
technology.
Section 703 continues the provision allowing funds made
available to agencies for travel to also be used for quarters
allowances and cost-of-living allowances.
Section 704 continues the provision prohibiting the
Government, with certain specified exceptions, from employing
non-U.S. citizens whose posts of duty would be in the
continental United States.
Section 705 continues the provision ensuring that agencies
will have authority to pay the General Services Administration
for space renovation and other services.
Section 706 continues the provision allowing agencies to
use receipts from the sale of materials for acquisition, waste
reduction and prevention, environmental management programs,
and other Federal employee programs.
Section 707 continues the provision providing that funds
for administrative expenses may be used to pay rent and other
service costs in the District of Columbia.
Section 708 continues the provision precluding interagency
financing of groups absent prior statutory approval.
Section 709 continues the provision prohibiting the use of
appropriated funds for enforcing regulations disapproved in
accordance with the applicable law of the United States.
Section 710 continues the provision limiting the amount
that can be used for redecoration of offices under certain
circumstances.
Section 711 continues the provision that permits
interagency funding of national security and emergency
preparedness telecommunications initiatives, which benefit
multiple Federal departments, agencies, and entities.
Section 712 continues the provision requiring agencies to
certify that a schedule C appointment was not created solely or
primarily to detail the employee to the White House.
Section 713 continues the provision prohibiting the use of
funds to prevent Federal employees from communicating with
Congress or to take disciplinary or personnel actions against
employees for such communication.
Section 714 continues the provision prohibiting Federal
training not directly related to the performance of official
duties.
Section 715 continues the provision prohibiting the use of
appropriated funds for publicity or propaganda designed to
support or defeat legislation pending before Congress.
Section 716 continues the provision prohibiting the use of
appropriated funds by an agency to provide home addresses of
Federal employees to labor organizations, absent employee
authorization, or court order.
Section 717 continues the provision prohibiting the use of
appropriated funds to provide nonpublic information such as
mailing or telephone lists to any person or organization
outside of the Government without approval of the Committees on
Appropriations.
Section 718 continues the provision prohibiting the use of
appropriated funds for publicity or propaganda purposes within
the United States not authorized by Congress.
Section 719 continues the provision directing agencies'
employees to use official time in an honest effort to perform
official duties.
Section 720 continues the provision authorizing the use of
current fiscal year funds to finance an appropriate share of
the Federal Accounting Standards Advisory Board administrative
costs.
Section 721 continues a provision authorizing the transfer
of funds to the General Services Administration to finance an
appropriate share of various Governmentwide boards and councils
under certain conditions.
Section 722 continues the provision authorizing
breastfeeding at any location in a Federal building or on
Federal property.
Section 723 continues the provision permitting interagency
funding of the National Science and Technology Council, and
requiring an OMB report on the budget and resources of the
Council.
Section 724 continues the provision requiring
identification of the Federal agencies providing Federal funds
and the amount provided for all proposals, solicitations, grant
applications, forms, notifications, press releases, or other
publications related to the distribution of funding to a State.
Section 725 continues the provision prohibiting the use of
funds to monitor personal information relating to the use of
Federal Internet sites.
Section 726 continues the provision regarding contraceptive
coverage under the Federal Employees Health Benefits Plan.
Section 727 continues the provision recognizing that the
United States is committed to ensuring the health of the
Olympic, Pan American and Paralympic athletes, and supports the
strict adherence to antidoping in sport activities.
Section 728 continues the provision allowing departments
and agencies to use official travel funds to participate in the
fractional aircraft ownership pilot programs.
Section 729 continues the provision prohibiting funds for
implementation of OPM regulations limiting detailees to the
legislative branch and placing certain limitations on the Coast
Guard Congressional Fellowship program.
Section 730 continues the provision prohibiting the
expenditure of funds for the acquisition of certain additional
Federal law enforcement training facilities.
Section 731 continues a provision that prohibits executive
branch agencies from creating or funding prepackaged news
stories that are broadcast or distributed in the United States
unless specific notification conditions are met.
Section 732 continues a provision prohibiting funds used in
contravention of the Privacy Act, section 552a of title 5,
United States Code or section 522.224 of title 48 of the Code
of Federal Regulations.
Section 733 continues a provision prohibiting funds in this
or any other act from being used for Federal contracts with
inverted domestic corporations or other corporations using
similar inverted structures, unless the contract preceded this
act or the Secretary grants a waiver in the interest of
national security.
Section 734 continues a provision requiring agencies to
remit to the Civil Service Retirement and Disability Fund an
amount equal to the Office of Personnel Management's average
unit cost of processing a retirement claim for the preceding
fiscal year to be available to the Office of Personnel
Management for the cost of processing retirements of employees
who separate under Voluntary Early Retirement Authority or who
receive Voluntary Separation Incentive Payments.
Section 735 continues a provision prohibiting funds to
require any entity submitting an offer for a Federal contract
to disclose political contributions.
Section 736 continues a provision prohibiting funds for the
painting of a portrait of an employee of the Federal Government
including the President, the Vice President, a Member of
Congress, the head of an executive branch agency, of the head
of an office of the legislative branch.
Section 737 continues a provision limiting the pay
increases of certain prevailing rate employees.
Section 738 continues a provision eliminating automatic
statutory pay increases for the Vice President, political
appointees paid under the executive schedule, ambassadors who
are not career members of the Foreign Service, politically
appointed (noncareer) Senior Executive Service employees, and
any other senior political appointee paid at or above level IV
of the executive schedule.
Section 739 continues a provision requiring reports to
Inspectors General concerning expenditures for agency
conferences.
Section 740 continues a provision prohibiting the use of
funds to increase, eliminate, or reduce a program or project
unless such change is made pursuant to reprogramming or
transfer provisions.
Section 741 continues a provision prohibiting the Office of
Personnel Management or any other agency from using funds to
implement regulations changing the competitive areas under
reductions-in-force for Federal employees.
Section 742 continues a provision that prohibits the use of
funds to begin or announce a study or a public-private
competition regarding the conversion to contractor performance
of any function performed by civilian Federal employees
pursuant to Office of Management and Budget Circular A-76 or
any other administrative regulation, directive, or policy.
Section 743 continues a provision that ensures that
contractors are not prevented from reporting waste, fraud, or
abuse by signing confidentiality agreements that would prohibit
such disclosure.
Section 744 continues a provision prohibiting funds to any
corporation with certain unpaid Federal tax liabilities unless
an agency has considered suspension or debarment of the
corporation and made a determination that this further action
is not necessary to protect the interests of the Government.
Section 745 continues a provision prohibiting funds to any
corporation that was convicted of a felony criminal violation
within the preceding 24 months unless an agency has considered
suspension or debarment of the corporation and has made a
determination that this further action is not necessary to
protect the interests of the Government.
Section 746 continues a provision prohibiting the
expenditure of funds for the implementation of agreements in
certain nondisclosure policies unless certain provisions are
included in the policies.
Section 747 continues a provision relating to the Consumer
Financial Protection Bureau.
Given the need for transparency and accountability in the
Federal budgeting process, the Committee directs the Bureau to
provide an informal, nonpublic full briefing at least annually
before the relevant Appropriations subcommittee on the Bureau's
finances and expenditures.
Section 748 continues a provision that addresses possible
technical scorekeeping differences for fiscal year 2017 between
the Office of Management and Budget and the Congressional
Budget Office.
Section 749 is a new provision to strengthen credit
protections for deployed troops.
Section 750 continues a provision declaring the
inapplicability of these general provisions to title IV and
title VIII.
TITLE VIII
GENERAL PROVISIONS--DISTRICT OF COLUMBIA
(INCLUDING TRANSFER OF FUNDS)
Section 801 continues the provision that allows the use of
local funds for refunding overpayments of taxes collected and
for paying settlements and judgments against the District of
Columbia government.
Section 802 continues the provision that prohibits the use
of Federal funds for publicity or propaganda designed to
support or defeat legislation before Congress or any State
legislature.
Section 803 continues the provision that establishes
notification requirements for certain reprogramming and
transfer requirements with respect to funds and specifies a
timeframe for approval and execution of requests to reprogram
and transfer local funds.
Section 804 continues the provision that prohibits the use
of Federal funds for salaries, expenses, or other costs
associated with the offices of U.S. Senator or Representative
under section 4(d) of the D.C. Statehood Constitutional
Convention Initiatives of 1979.
Section 805 continues, with a modification, the provision
that restricts the use of official District of Columbia
government vehicles to official duties and not between a
residence and workplace, except under certain circumstances.
Section 806 continues the provision that prohibits the use
of Federal funds by the District of Columbia Attorney General
or any other officer or entity of the District government to
provide assistance for any petition drive or civil action which
seeks to require Congress to provide for voting representation
in Congress for the District of Columbia.
Section 807 continues the provision that prohibits the use
of Federal funds in this act to distribute, for the purpose of
preventing the spread of blood borne pathogens, sterile needles
or syringes in any location that has been determined by local
public health officials or local law enforcement authorities to
be inappropriate for such distribution.
Section 808 continues the provision that includes a
``conscience clause'' on legislation that pertains to
contraceptive coverage by health insurance plans.
Section 809 restricts the use of Federal funds for
abortion, with certain exceptions.
Section 810 continues the provision requiring the CFO to
submit a revised operating budget for agencies the CFO
certifies as requiring a reallocation to address unanticipated
program needs.
Section 811 continues the provision requiring the CFO to
submit a revised appropriated funds budget for the District of
Columbia Schools that aligns the schools' budgets to actual
enrollment.
Section 812 continues the provision authorizing the
transfer of local funds between operating funds and capital and
enterprise funds.
Section 813 continues the provision prohibiting obligations
beyond the current fiscal year and prohibits transfers of funds
unless expressly provided.
Section 814 continues the provision that ensures that 50
percent of unobligated balances may remain available for
certain purposes.
Section 815 continues a provision that appropriates local
funds during fiscal year 2018 if there is an absence of a
continuing resolution or regular appropriation for the District
of Columbia. Funds are provided under the same authorities and
conditions and in the same manner and extent as provided for
fiscal year 2017.
Section 816 continues the provision which limits references
to ``this act'' in this title or title IV as referring to only
this title and title IV.
COMPLIANCE WITH PARAGRAPH 7, RULE XVI OF THE STANDING RULES OF THE
SENATE
Paragraph 7 of rule XVI requires that Committee reports on
general appropriations bills identify each Committee amendment
to the House bill ``which proposes an item of appropriation
which is not made to carry out the provisions of an existing
law, a treaty stipulation, or an act or resolution previously
passed by the Senate during that session.''
The Committee is filing an original bill, which is not
covered under this rule, but reports this information in the
spirit of full disclosure.
Items providing funding for fiscal year 2017 which lack
authorization are as follows:
Department of the Treasury
Departmental Offices
Department-wide Systems and Capital Investments
Office of the Inspector General
Inspector General for Tax Administration
Financial Crimes Enforcement Network
Fiscal Service
Alcohol and Tobacco Tax and Trade Bureau
Community Development Financial Institutions Fund
Internal Revenue Service:
Taxpayer Services
Enforcement
Operations Support
Business Systems Modernization
Executive Office of the President
Office of Management and Budget
Office of National Drug Control Policy
District of Columbia
Federal Payment for Resident Tuition Support
Federal Payment for the District of Columbia Water and
Sewer Authority
Federal Payment for Judicial Commissions
Federal Payment for the D.C. National Guard
Independent Agencies
Administrative Conference of the United States
Commodity Futures Trading Commission
Election Assistance Commission
Federal Communications Commission
Federal Election Commission
Federal Trade Commission
General Services Administration:
Federal Buildings Fund\1\
---------------------------------------------------------------------------
\1\Deposits into the Federal Buildings Fund are available for real
property management and related activities in the amounts specified in
annual appropriations laws, as provided by 40 U.S.C. 592.
---------------------------------------------------------------------------
Merit Systems Protection Board
National Archives and Records Administration, National
Historical Publications and Records Commission
National Credit Union Administration: Community Development
Revolving Loan Fund
Office of Government Ethics
Office of Special Counsel
COMPLIANCE WITH PARAGRAPH 7(c), RULE XXVI OF THE STANDING RULES OF THE
SENATE
Pursuant to paragraph 7(c) of rule XXVI, on June 16, 2016,
the Committee ordered favorably reported an original bill (S.
3067) making appropriations for financial services and general
government for the fiscal year ending September 30, 2017, and
for other purposes, provided that the bill be subject to
amendment and that the bill be consistent with its budget
allocation, and provided that the Chairman of the Committee or
his designee be authorized to offer the substance of the
original bill as a Committee amendment in the nature of a
substitute to the House companion measure, by a recorded vote
of 30-0, a quorum being present. The vote was as follows:
Yeas Nays
Chairman Cochran
Mr. McConnell
Mr. Shelby
Mr. Alexander
Ms. Collins
Ms. Murkowski
Mr. Graham
Mr. Kirk
Mr. Blunt
Mr. Moran
Mr. Hoeven
Mr. Boozman
Mrs. Capito
Mr. Cassidy
Mr. Lankford
Mr. Daines
Ms. Mikulski
Mr. Leahy
Mrs. Murray
Mrs. Feinstein
Mr. Durbin
Mr. Reed
Mr. Tester
Mr. Udall
Mrs. Shaheen
Mr. Merkley
Mr. Coons
Mr. Schatz
Ms. Baldwin
Mr. Murphy
COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE
SENATE
Paragraph 12 of rule XXVI requires that Committee reports
on a bill or joint resolution repealing or amending any statute
or part of any statute include ``(a) the text of the statute or
part thereof which is proposed to be repealed; and (b) a
comparative print of that part of the bill or joint resolution
making the amendment and of the statute or part thereof
proposed to be amended, showing by stricken-through type and
italics, parallel columns, or other appropriate typographical
devices the omissions and insertions which would be made by the
bill or joint resolution if enacted in the form recommended by
the Committee.''
In compliance with this rule, changes in existing law
proposed to be made by the bill are shown as follows: existing
law to be omitted is enclosed in black brackets; new matter is
printed in italic; and existing law in which no change is
proposed is shown in roman.
In compliance with this rule, changes in existing law
proposed to be made by the bill are shown as follows: existing
law to be omitted is enclosed in black brackets; new matter is
printed in italic; and existing law in which no change is
proposed is shown in roman.
TITLE 15--COMMERCE AND TRADE
Chapter 41--Consumer Credit Protection
Subchapter III--Credit Reporting Agencies
Sec. 1681a. Definitions; rules of construction
(q) Definitions Relating to Fraud Alerts.--
(1) Active duty military consumer.--* * *
(2) Fraud alert; [active duty alert] active duty alert;
active duty freeze alert.--The terms ``fraud alert'' and
``active duty alert'' and ``active duty freeze alert'' mean a
statement in the file of a consumer that--
* * * * * * *
Sec. 1681c-1. Identity theft prevention; fraud alerts [and active duty
alerts] active duty alerts; and active duty freeze
alerts
(a) One-call fraud alerts
* * * * * * *
(c) Active duty alerts
* * * * * * *
(1) * * *
* * * * * * *
(3) refer the information regarding the active duty
alert to each of the other consumer reporting agencies
described in section 1681a(p) of this title, in
accordance with procedures developed under section
1681s(f) of this title.
(d) Active Duty Freeze Alerts.--Upon the direct request of
an active duty military consumer, or an individual acting on
behalf of or as a personal representative of an active duty
military consumer, a consumer reporting agency described in
section 603(p) that maintains a file on the active duty
military consumer and has received appropriate proof of the
identity of the requester, at no cost to the active duty
military consumer while the consumer is deployed, shall--
(1) include an active duty freeze alert in the file
of that active duty military consumer, during a period
of not less than 12 months, or such longer period as
the Bureau shall determine, by regulation, beginning on
the date of the request, unless the active duty
military consumer or such representative requests that
such freeze alert be removed before the end of such
period, and the agency has received appropriate proof
of the identity of the requester for such purpose; and
(2) during the 2-year period beginning on the date
of such request, exclude the active duty military
consumer from any list of consumers prepared by the
consumer reporting agency and provided to any third
party to offer credit or insurance to the consumer as
part of a transaction that was not initiated by the
consumer, unless the consumer requests that such
exclusion be rescinded before the end of such period.
[(d)] (e) Procedures
* * * * * * *
[(e)] (f) Referrals of alerts
* * * * * * *
[(f)] (g) Duty of reseller to reconvey alert
A reseller shall include in its report any fraud alert [or
active duty alert] active duty alert, or active duty freeze
alert placed in the file of a consumer pursuant to this section
by another consumer reporting agency.
[(g)] (h) Duty of other consumer reporting agencies to provide
contact information
* * * * * * *
[(h)] (i) Limitations on use of information for credit
extensions
(1) Requirements for initial and active duty alerts
* * * * * * *
(2) Requirements for extended alerts
(A) Notification
* * * * * * *
(B) Limitation on users
No prospective user of a consumer report or of a
credit score generated using the information in the
file of a consumer that includes an extended fraud
alert in accordance with this section may establish a
new credit plan or extension of credit, other than
under an open-end credit plan (as defined in section
1602(i) of this title), in the name of the consumer, or
issue an additional card on an existing credit account
requested by a consumer, or any increase in credit
limit on an existing credit account requested by a
consumer, unless the user contacts the consumer in
person or using the contact method described in
subparagraph (A)(ii) to confirm that the application
for a new credit plan or increase in credit limit, or
request for an additional card is not the result of
identity theft.
(3) Requirements for active duty freeze alerts.--
(A) Notification.--Each active duty freeze alert
under this section shall include information that
notifies all prospective users of a consumer report on
the consumer to which the freeze alert relates that the
consumer does not authorize the establishment of any
new credit plan or extension of credit, other than
under an open-end credit plan (as defined in section
103(i)), in the name of the consumer, or issuance of an
additional card on an existing credit account requested
by a consumer, or any increase in credit limit on an
existing credit account requested by a consumer.
(B) Prohibition on users.--No prospective user of a
consumer report that includes an active duty freeze
alert in accordance with this section may establish a
new credit plan or extension of credit, other than
under an open-end credit plan (as defined in section
103(i)), in the name of the consumer, or issue an
additional card on an existing credit account requested
by a consumer, or grant any increase in credit limit on
an existing credit account requested by a consumer
unless the user uses reasonable policies and procedures
to form a reasonable belief that the user knows the
identity of the person making the request.
------
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
Chapter 69--Cuban Democracy
Sec. 6005. Sanctions
(b) Prohibitions on vessels
[(1) Vessels engaging in trade
[Beginning on the 61st day after October 23, 1992, a vessel
which enters a port or place in Cuba to engage in the trade of
goods or services may not, within 180 days after departure from
such port or place in Cuba, load or unload any freight at any
place in the United States, except pursuant to a license issued
by the Secretary of the Treasury.]
[(2)] (1) Vessels carrying goods or passengers to or from
Cuba
* * * * * * *
[(3)] (2) Inapplicability of ship stores general license
* * * * * * *
[(4)] (3) Definitions
* * * * * * *
Chapter 79--Trade Sanctions Reform and Export Enhancement
Sec. 7207. Prohibition on United States assistance [and financing]
[(a) Prohibition on United States assistance]
[(1) In general]
[Notwithstanding]
(a) In General.--Notwithstanding any other provision of
law, no United States Government assistance, including United
States foreign assistance, United States export assistance, and
any United States credit or guarantees shall be available for
exports to Cuba or for commercial exports to Iran, Libya, North
Korea, or Sudan.
[(2)] (b) Rule of construction
Nothing in [paragraph (1)] subsection (a) shall be
construed to alter, modify, or otherwise affect the provisions
of section 6039 of this title or any other provision of law
relating to Cuba in effect on the day before October 28, 2000.
[(3)] (c) Waiver
The President may waive the application of [paragraph (1)]
subsection (a) with respect to Iran, Libya, North Korea, and
Sudan to the degree the President determines that it is in the
national security interest of the United States to do so, or
for humanitarian reasons.
[(b) Prohibition on financing of agricultural sales to Cuba
[(1) In general
[No United States person may provide payment or
financing terms for sales of agricultural commodities
or products to Cuba or any person in Cuba, except in
accordance with the following terms (notwithstanding
part 515 of title 31, Code of Federal Regulations, or
any other provision of law):
[(A) Payment of cash in advance.
[(B) Financing by third country financial
institutions (excluding United States persons
or Government of Cuba entities), except that
such financing may be confirmed or advised by a
United States financial institution.
[Nothing in this paragraph authorizes payment terms or
trade financing involving a debit or credit to an
account of a person located in Cuba or of the
Government of Cuba maintained on the books of a United
States depository institution.
[(2) Penalties
[Any private person or entity that violates
paragraph (1) shall be subject to the penalties
provided in the Trading With the Enemy Act for
violations under that Act.
[(3) Administration and enforcement
[The President shall issue such regulations as are
necessary to carry out this section, except that the
President, in lieu of issuing new regulations, may
apply any regulations in effect on October 28, 2000,
pursuant to the Trading With the Enemy Act, with
respect to the conduct prohibited in paragraph (1).
[(4) Definitions
[In this subsection--
[(A) the term ``financing'' includes any
loan or extension of credit;
[(B) the term ``United States depository
institution'' means any entity (including its
foreign branches or subsidiaries) organized
under the laws of any jurisdiction within the
United States, or any agency, office or branch
located in the United States of a foreign
entity, that is engaged primarily in the
business of banking (including a bank, savings
bank, savings association, credit union, trust
company, or United States bank holding
company); and
[(C) the term ``United States person''
means the Federal Government, any State or
local government, or any private person or
entity of the United States.]
------
TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS
SUBTITLE II--PUBLIC BUILDINGS AND WORKS
Part A--General
Chapter 33--Acquisition, Construction, and Alteration
Sec. 3314. Delegation
(a) When Allowed.--The carrying out of the duties and
powers of the Administrator of General Services under this
chapter, in accordance with standards the Administrator
prescribes--
(1) shall, except for the authority contained in
section 3305(b) of this title, be delegated on request
to the appropriate [executive] Federal agency when the
estimated cost of the project does not exceed $100,000;
and
(2) may be delegated to the appropriate [executive]
Federal agency when the Administrator determines that
delegation will promote efficiency and economy.
------
JUDICIAL IMPROVEMENTS ACT OF 1990,
PUBLIC LAW 101-650
SEC. 203. APPOINTMENT AND NUMBER OF DISTRICT JUDGES.
(a) In General.--* * *
* * * * * * *
(c) Temporary Judgeships.--The President shall appoint, by
and with the advice and consent of the Senate--
(1) 1 additional district judge for the eastern
district of California;
* * * * * * *
(12) 1 additional district judge for the eastern
district of Virginia.
Except with respect to the district of Kansas, the western
district of Michigan, the eastern district of Pennsylvania, the
district of Hawaii, and the northern district of Ohio, the
first vacancy in the office of district judge in each of the
judicial districts named in this subsection, occurring 10 years
or more after the confirmation date of the judge named to fill
the temporary judgeship created by this subsection, shall not
be filled. The first vacancy in the office of district judge in
the district of Kansas occurring [25 years and 6 months] 26
years and 6 months or more after the confirmation date of the
judge named to fill the temporary judgeship created for such
district under this subsection, shall not be filled. The first
vacancy in the office of district judge in the western district
of Michigan, occurring after December 1, 1995, shall not be
filled. The first vacancy in the office of district judge in
the eastern district of Pennsylvania, occurring 5 years or more
after the confirmation date of the judge named to fill the
temporary judgeship created for such district under this
subsection, shall not be filled. The first vacancy in the
office of district judge in the northern district of Ohio
occurring 19 years or more after the confirmation date of the
judge named to fill the temporary judgeship created under this
subsection shall not be filled. The first vacancy in the office
of the district judge in the district of Hawaii occurring 21
years and 6 months or more after the confirmation date of the
judge named to fill the temporary judgeship created under this
subsection shall not be filled. For districts named in this
subsection for which multiple judgeships are created by this
Act, the last of those judgeships filled shall be the
judgeships created under this section.
------
21ST CENTURY DEPARTMENT OF JUSTICE APPROPRIATIONS AUTHORIZATON ACT,
PUBLIC LAW 107-273
SEC. 312. ADDITIONAL FEDERAL JUDGESHIPS.
(a) Permanent District Judges for the District Courts.--
* * * * * * *
(c) Temporary Judgeships.--
(1) In general.* * *
* * * * * * *
(2) Vacancies not filled.--The first vacancy in the
office of district judge in each of the offices of
district judge authorized by this subsection, except in
the case of the central district of California and the
western district of North Carolina, occurring [14
years] 15 years or more after the confirmation date of
the judge named to fill the temporary district
judgeship created in the applicable district by this
subsection, shall not be filled. The first vacancy in
the office of district judge in the central district of
California occurring [13 years and 6 months] 14 years
and 6 months or more after the confirmation date of the
judge named to fill the temporary district judgeship
created in that district by this subsection, shall not
be filled. The first vacancy in the office of district
judge in the western district of North Carolina
occurring [12 years] 13 years or more after the
confirmation date of the judge named to fill the
temporary district judgeship created in that district
by this subsection, shall not be filled.
------
UNIVERSAL SERVICE ANTIDEFICIENCY TEMPORARY SUSPENSION ACT, PUBLIC LAW
108-494
TITLE III--UNIVERSAL SERVICE
SEC. 302. APPLICATION OF CERTAIN TITLE 31 PROVISIONS TO UNIVERSAL
SERVICE FUND.
(a) In General.--During the period beginning on the date of
enactment of this Act and ending on [December 31, 2017]
December 31, 2018, section 1341 and subchapter II of chapter 15
of title 31, United States Code, do not apply--
* * * * * * *
(b) Post-2005 Fulfillment of Protected Obligations.--
Section 1341 and subchapter II of chapter 15 of title 31,
United States Code, do not apply after [December 31, 2017]
December 31, 2018, to an expenditure or obligation described in
subsection (a)(2) made or authorized during the period
described in subsection (a).
------
TRANSPORTATION, TREASURY, HOUSING AND URBAN DEVELOPMENT, THE JUDICIARY,
THE DISTRICT OF COLUMBIA, AND INDEPENDENT AGENCIES APPROPRIATIONS ACT,
2006, PUBLIC LAW 109-115
TITLE IV
THE JUDICIARY
Administrative Provisions--The Judiciary
Sec. 406. The existing judgeship for the eastern district
of Missouri authorized by section 203(c) of the Judicial
Improvements Act of 1990 (Public Law 101-650, 104 Stat. 5089)
as amended by Public Law 105-53, as of the effective date of
this Act, shall be extended. The first vacancy in the office of
district judge in this district occurring [23 years and 6
months] 24 years and 6 months or more after the confirmation
date of the judge named to fill the temporary judgeship created
by section 203(c) shall not be filled.
------
TEMPORARY BANKRUPTCY JUDGESHIPS EXTENSION ACT OF 2012, PUBLIC LAW 112-
121
SEC. 2. EXTENSION OF TEMPORARY OFFICE OF BANKRUPTCY JUDGES IN CERTAIN
JUDICIAL DISTRICTS.
(a) Temporary Office of Bankruptcy Judges Authorized by
Public Law 109-8.--
(1) Extensions.--* * *
* * * * * * *
(2) Vacancies.--
(A) Single Vacancies.--Except as provided
in [subparagraphs (B), (C), (D), and (E)]
subparagraphs (B), (C), (D), (E), (F), (G), and
(H), the 1st vacancy in the office of a
bankruptcy judge for each district specified in
paragraph (1)--
* * * * * * *
(C) District of delaware.--The 1st, 2d, 3d,
and 4th vacancies in the office of bankruptcy
judge in the district of Delaware--
(i) in the case of the 1st and 2d
vacancies, occurring more than 6 years
after the date of the enactment of this
Act,
[(i)] (ii) in the case of the 3d
and 4th vacancies, occurring 5 years or
more after the respective 1st, 2d, 3d,
and 4th appointment dates of the
bankruptcy judges appointed under
paragraph (1)(F); and
[(ii)] (iii) resulting from the
death, retirement, resignation, or
removal of a bankruptcy judge;
shall not be filled.
(D) Southern district of florida.--The 1st
and 2d vacancies in the office of bankruptcy
judge in the southern district of Florida--
(i) occurring [5 years] 6 years or
more after the respective 1st and 2d
appointment dates of the bankruptcy
judges appointed under paragraph
(1)(D); and
* * * * * * *
(E) District of maryland.--* * *
(i) * * *
(ii) resulting from the death,
retirement, resignation, or removal of
a bankruptcy judge,
shall not be filled.
(F) Eastern district of michigan.--The 1st
vacancy in the office of a bankruptcy judge for
the eastern district of Michigan--
(i) occurring 6 years or more after
the date of the enactment of this Act,
and
(ii) resulting from the death,
retirement, resignation, or removal of
a bankruptcy judge, shall not be
filled.
(G) District of puerto rico.--The 1st
vacancy in the office of a bankruptcy judge for
the district of Puerto Rico--
(i) occurring 6 years or more after
the date of the enactment of this Act,
and
(ii) resulting from the death,
retirement, resignation, or removal of
a bankruptcy judge, shall not be
filled.
(H) Eastern district of virginia.--The 1st
vacancy in the office of a bankruptcy judge for
the eastern district of Virginia--
(i) occurring 6 years or more after
the date of the enactment of this Act,
and
(ii) resulting from the death,
retirement, resignation, or removal of
a bankruptcy judge, shall not be
filled.
------
BUDGETARY IMPACT OF BILL
PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS
AMENDED
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Budget authority Outlays
---------------------------------------------------
Committee Amount in Committee Amount in
allocation bill allocation bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with the subcommittee
allocation for 2017: Subcommittee on Financial Services and
General Government:
Mandatory............................................... 21,937 21,937 21,930 \1\21,930
Discretionary........................................... 22,393 22,552 23,325 \1\23,446
Security............................................ 33 33 NA NA
Nonsecurity......................................... 22,360 22,519 NA NA
Projection of outlays associated with the recommendation:
2017.................................................... ........... ........... ........... \2\39,620
2018.................................................... ........... ........... ........... 3,847
2019.................................................... ........... ........... ........... 739
2020.................................................... ........... ........... ........... 193
2021 and future years................................... ........... ........... ........... 192
Financial assistance to State and local governments for 2017 NA 622 NA \2\471
----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.
\2\Excludes outlays from prior-year budget authority.
NA: Not applicable.
NOTE.--Consistent with the funding recommended in the bill for disaster relief funding and in accordance with
section 251(b)(2)(D) of the BBEDCA of 1985, the Committee anticipates that the Budget Committee will provide a
revised 302(a) allocation for the Committee on Appropriations reflecting an upward adjustment of $159,000,000
in budget authority plus associated outlays.
COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2016 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
YEAR 2017
[In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Senate Committee recommendation
compared with (+ or -)
Item 2016 Budget estimate Committee -----------------------------------
appropriation recommendation 2017
appropriation Budget estimate
--------------------------------------------------------------------------------------------------------------------------------------------------------
TITLE I--DEPARTMENT OF THE TREASURY
Departmental Offices
Salaries and expenses......................................... 222,500 334,376 347,376 +124,876 +13,000
Office of Terrorism and Financial Intelligence............ ................ (117,000) (123,000) (+123,000) (+6,000)
Office of Terrorism and Financial Intelligence................ 117,000 ................ ................ -117,000 ................
Cybersecurity Enhancement Account............................. ................ 109,827 47,743 +47,743 -62,084
Department-wide Systems and Capital Investments Programs...... 5,000 5,000 5,000 ................ ................
Office of Inspector General................................... 35,416 37,044 37,044 +1,628 ................
Treasury Inspector General for Tax Administration............. 167,275 169,634 169,634 +2,359 ................
Special Inspector General for TARP............................ 40,671 41,160 41,160 +489 ................
Financial Crimes Enforcement Network.......................... 112,979 115,003 114,479 +1,500 -524
-----------------------------------------------------------------------------------------
Subtotal, Departmental Offices.......................... 700,841 812,044 762,436 +61,595 -49,608
Treasury Forfeiture Fund (rescission)......................... -700,000 -657,000 -657,000 +43,000 ................
-----------------------------------------------------------------------------------------
Total, Departmental Offices............................. 841 155,044 105,436 +104,595 -49,608
=========================================================================================
Bureau of the Fiscal Service.................................. 363,850 353,057 353,057 -10,793 ................
Alcohol and Tobacco Tax and Trade Bureau...................... 106,439 106,439 111,439 +5,000 +5,000
Franchise Fund................................................ ................ 3,000 ................ ................ -3,000
Community Development Financial Institutions Fund Program 233,523 245,923 233,523 ................ -12,400
Account......................................................
Payment of Government Losses in Shipment...................... 2,000 2,000 2,000 ................ ................
-----------------------------------------------------------------------------------------
Total, Department of the Treasury, non-IRS.............. 706,653 865,463 805,455 +98,802 -60,008
=========================================================================================
Internal Revenue Service
Taxpayer Services............................................. 2,333,376 2,406,318 2,156,554 -176,822 -249,764
Enforcement................................................... 4,864,936 4,984,919 4,860,000 -4,936 -124,919
Program integrity initiatives............................. ................ 231,344 ................ ................ -231,344
-----------------------------------------------------------------------------------------
Subtotal................................................ 4,864,936 5,216,263 4,860,000 -4,936 -356,263
Operations Support............................................ 3,746,688 4,030,695 3,638,446 -108,242 -392,249
Program integrity initiatives............................. ................ 283,404 ................ ................ -283,404
-----------------------------------------------------------------------------------------
Subtotal................................................ 3,746,688 4,314,099 3,638,446 -108,242 -675,653
Business systems modernization................................ 290,000 343,415 290,000 ................ -53,415
General provision............................................. ................ ................ 290,000 +290,000 +290,000
-----------------------------------------------------------------------------------------
Total, Internal Revenue Service......................... 11,235,000 12,280,095 11,235,000 ................ -1,045,095
=========================================================================================
Total, title I, Department of the Treasury.............. 11,941,653 13,145,558 12,040,455 +98,802 -1,105,103
Appropriations...................................... (12,641,653) (13,802,558) (12,697,455) (+55,802) (-1,105,103)
Rescissions......................................... (-700,000) (-657,000) (-657,000) (+43,000) ................
=========================================================================================
TITLE II--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS
APPROPRIATED TO THE PRESIDENT
The White House
Salaries and expenses......................................... 55,000 55,214 55,214 +214 ................
Executive Residence at the White House:
Operating expenses........................................ 12,723 12,723 12,723 ................ ................
White House repair and restoration........................ 750 750 750 ................ ................
-----------------------------------------------------------------------------------------
Subtotal................................................ 13,473 13,473 13,473 ................ ................
Council of Economic Advisers.................................. 4,195 4,201 4,201 +6 ................
National Security Council and Homeland Security Council....... 12,800 13,069 12,800 ................ -269
Office of Administration...................................... 96,116 96,116 96,116 ................ ................
Presidential transition administrative support................ ................ 7,582 7,582 +7,582 ................
-----------------------------------------------------------------------------------------
Total, The White House.................................. 181,584 189,655 189,386 +7,802 -269
=========================================================================================
Office of Management and Budget............................... 95,000 100,725 95,000 ................ -5,725
Office of National Drug Control Policy
Salaries and expenses......................................... 20,047 19,274 19,274 -773 ................
High Intensity Drug Trafficking Areas Program................. 250,000 196,410 255,000 +5,000 +58,590
Other Federal Drug Control Programs........................... 109,810 98,480 109,871 +61 +11,391
-----------------------------------------------------------------------------------------
Total, Office of National Drug Control Policy........... 379,857 314,164 384,145 +4,288 +69,981
=========================================================================================
Unanticipated needs........................................... 800 1,000 800 ................ -200
Information Technology Oversight and Reform................... 30,000 35,200 30,000 ................ -5,200
Special Assistance to the President and Official Residence of
the Vice President:
Salaries and expenses..................................... 4,228 4,228 4,228 ................ ................
Operating expenses........................................ 299 299 299 ................ ................
-----------------------------------------------------------------------------------------
Subtotal................................................ 4,527 4,527 4,527 ................ ................
=========================================================================================
Total, title II, Executive Office of the President and 691,768 645,271 703,858 +12,090 +58,587
Funds Appropriated to the President....................
=========================================================================================
TITLE III--THE JUDICIARY
Supreme Court of the United States
Salaries and expenses:
Salaries of Justices...................................... 2,557 3,000 3,000 +443 ................
Other salaries and expenses............................... 75,838 76,668 76,668 +830 ................
-----------------------------------------------------------------------------------------
Subtotal................................................ 78,395 79,668 79,668 +1,273 ................
Care of the building and grounds.............................. 9,964 14,868 14,868 +4,904 ................
-----------------------------------------------------------------------------------------
Total, Supreme Court of the United States............... 88,359 94,536 94,536 +6,177 ................
=========================================================================================
United States Court of Appeals for the Federal Circuit
Salaries and expenses:
Salaries of judges........................................ 2,922 3,000 3,000 +78 ................
Other salaries and expenses............................... 30,872 30,108 30,108 -764 ................
-----------------------------------------------------------------------------------------
Total, United States Court of Appeals for the Federal 33,794 33,108 33,108 -686 ................
Circuit................................................
=========================================================================================
United States Court of International Trade
Salaries and expenses:
Salaries of judges........................................ 2,005 2,000 2,000 -5 ................
Other salaries and expenses............................... 18,160 18,462 18,462 +302 ................
-----------------------------------------------------------------------------------------
Total, U.S. Court of International Trade................ 20,165 20,462 20,462 +297 ................
=========================================================================================
Courts of Appeals, District Courts, and Other Judicial
Services
Salaries and expenses:
Salaries of judges and bankruptcy judges.................. 417,000 424,000 424,000 +7,000 ................
Other salaries and expenses............................... 4,918,969 5,045,785 5,045,785 +126,816 ................
-----------------------------------------------------------------------------------------
Subtotal................................................ 5,335,969 5,469,785 5,469,785 +133,816 ................
Vaccine Injury Compensation Trust Fund........................ 6,050 6,260 6,260 +210 ................
Defender services............................................. 1,004,949 1,056,326 1,054,468 +49,519 -1,858
Fees of jurors and commissioners.............................. 44,199 43,723 39,929 -4,270 -3,794
Court security................................................ 538,196 565,388 565,388 +27,192 ................
-----------------------------------------------------------------------------------------
Total, Courts of Appeals, District Courts, and Other 6,929,363 7,141,482 7,135,830 +206,467 -5,652
Judicial Services......................................
=========================================================================================
Administrative Office of the United States Courts
Salaries and expenses......................................... 85,665 87,748 87,748 +2,083 ................
Federal Judicial Center
Salaries and expenses......................................... 27,719 28,335 28,335 +616 ................
United States Sentencing Commission
Salaries and expenses......................................... 17,570 18,150 18,150 +580 ................
=========================================================================================
Total, title III, the Judiciary......................... 7,202,635 7,423,821 7,418,169 +215,534 -5,652
=========================================================================================
TITLE IV--DISTRICT OF COLUMBIA
Federal Payment for Resident Tuition Support.................. 40,000 40,000 30,000 -10,000 -10,000
Federal Payment for Emergency Planning and Security Costs in 13,000 34,895 34,895 +21,895 ................
the District of Columbia.....................................
Federal Payment to the District of Columbia Courts............ 274,401 274,681 274,681 +280 ................
Federal Payment for Defender Services in District of Columbia 49,890 49,890 49,890 ................ ................
Courts.......................................................
Federal Payment to the Court Services and Offender Supervision 244,763 248,008 248,008 +3,245 ................
Agency for the District of Columbia..........................
Federal Payment to the District of Columbia Public Defender 40,889 41,829 41,829 +940 ................
Service......................................................
Federal Payment to the District of Columbia Water and Sewer 14,000 14,000 14,000 ................ ................
Authority....................................................
Federal Payment to the Criminal Justice Coordinating Council.. 1,900 2,000 2,000 +100 ................
Federal Payment for Judicial Commissions...................... 565 585 585 +20 ................
Federal Payment for School Improvement........................ 45,000 43,200 45,000 ................ +1,800
Federal Payment for the D.C. National Guard................... 435 450 450 +15 ................
Federal Payment for Testing and Treatment of HIV/AIDS......... 5,000 5,000 5,000 ................ ................
Federal Payment for the Federal City Shelter.................. ................ 9,000 ................ ................ -9,000
=========================================================================================
Total, Title IV, District of Columbia................... 729,843 763,538 746,338 +16,495 -17,200
=========================================================================================
TITLE V--OTHER INDEPENDENT AGENCIES
Administrative Conference of the United States................ 3,100 3,200 3,100 ................ -100
Commodity Futures Trading Commission.......................... 250,000 330,000 250,000 ................ -80,000
Consumer Product Safety Commission............................ 125,000 130,500 124,000 -1,000 -6,500
Election Assistance Commission................................ 9,600 9,800 9,600 ................ -200
Federal Communications Commission
Salaries and expenses......................................... 384,012 358,286 341,315 -42,697 -16,971
Offsetting fee collections.................................... -384,012 -358,286 -341,315 +42,697 +16,971
-----------------------------------------------------------------------------------------
Direct appropriation.................................... ................ ................ ................ ................ ................
Federal Deposit Insurance Corporation
Office of Inspector General (by transfer)..................... (34,568) (35,958) (35,958) (+1,390) ................
Deposit Insurance Fund (transfer)............................. (-34,568) (-35,958) (-35,958) (-1,390) ................
Federal Election Commission................................... 76,119 80,540 79,119 +3,000 -1,421
Federal Labor Relations Authority............................. 26,200 27,062 26,200 ................ -862
Federal Trade Commission
Salaries and expenses......................................... 306,900 342,000 306,900 ................ -35,100
Offsetting fee collections (mergers).......................... -124,000 -125,000 -125,000 -1,000 ................
Offsetting fee collections (telephone)........................ -14,000 -15,000 -15,000 -1,000 ................
-----------------------------------------------------------------------------------------
Direct appropriation.................................... 168,900 202,000 166,900 -2,000 -35,100
General Services Administration
Federal Buildings Fund
Limitations on availability of revenue:
Construction and acquisition of facilities................ 1,607,738 1,330,522 764,749 -842,989 -565,773
Repairs and alterations................................... 735,331 841,617 632,539 -102,792 -209,078
Rental of space........................................... 5,579,055 5,655,581 5,645,581 +66,526 -10,000
Building operations....................................... 2,274,000 2,350,618 2,335,000 +61,000 -15,618
-----------------------------------------------------------------------------------------
Subtotal, Limitations on availability of revenue........ 10,196,124 10,178,338 9,377,869 -818,255 -800,469
Rental income to fund......................................... -9,807,722 -10,178,338 -10,178,338 -370,616 ................
-----------------------------------------------------------------------------------------
Total, Federal Buildings Fund........................... 388,402 ................ -800,469 -1,188,871 -800,469
=========================================================================================
Government-wide policy........................................ 58,000 64,497 60,000 +2,000 -4,497
Operating expenses............................................ 58,560 50,174 58,560 ................ +8,386
Civilian Board of Contract Appeals............................ ................ 9,275 ................ ................ -9,275
Office of Inspector General................................... 65,000 66,000 65,000 ................ -1,000
Allowances and office staff for former Presidents............. 3,277 3,865 3,865 +588 ................
Federal Citizen Services Fund................................. 55,894 58,428 55,894 ................ -2,534
Expenses, Presidential transition............................. ................ 9,500 9,500 +9,500 ................
Pre-Election Presidential transition.......................... 13,278 ................ ................ -13,278 ................
Information Technology Modernization Fund..................... ................ 100,000 ................ ................ -100,000
-----------------------------------------------------------------------------------------
Total, General Services Administration.................. 642,411 361,739 -547,650 -1,190,061 -909,389
=========================================================================================
Harry S Truman Scholarship Foundation......................... 1,000 ................ 1,000 ................ +1,000
Merit Systems Protection Board
Salaries and expenses......................................... 44,490 45,083 44,490 ................ -593
Limitation on administrative expenses......................... 2,345 2,345 2,345 ................ ................
-----------------------------------------------------------------------------------------
Total, Merit Systems Protection Board................... 46,835 47,428 46,835 ................ -593
=========================================================================================
Morris K. Udall and Stewart L. Udall Foundation
Morris K. Udall and Stewart L. Udall Trust Fund............... 1,995 1,895 1,895 -100 ................
Environmental Dispute Resolution Fund......................... 3,400 3,249 3,249 -151 ................
-----------------------------------------------------------------------------------------
Total, Morris K. Udall and Stewart L Udall Foundation... 5,395 5,144 5,144 -251 ................
=========================================================================================
National Archives and Records Administration
Operating expenses............................................ 379,393 380,634 380,634 +1,241 ................
Reduction of debt......................................... -21,208 -23,000 -23,049 -1,841 -49
-----------------------------------------------------------------------------------------
Subtotal................................................ 358,185 357,634 357,585 -600 -49
Office of the Inspector General............................... 4,180 4,801 4,801 +621 ................
Repairs and restoration....................................... 7,500 7,500 7,500 ................ ................
National Historical Publications and Records Commission Grants 5,000 5,000 5,000 ................ ................
Program......................................................
-----------------------------------------------------------------------------------------
Total, National Archives and Records Administration..... 374,865 374,935 374,886 +21 -49
=========================================================================================
NCUA Community Development Revolving Loan Fund................ 2,000 2,000 2,000 ................ ................
Office of Government Ethics................................... 15,742 16,090 16,090 +348 ................
Office of Personnel Management
Salaries and expenses......................................... 120,688 144,867 120,688 ................ -24,179
Limitation on administrative expenses..................... 124,550 144,653 124,550 ................ -20,103
-----------------------------------------------------------------------------------------
Subtotal, Salaries and Expenses......................... 245,238 289,520 245,238 ................ -44,282
Office of Inspector General................................... 4,365 5,072 5,072 +707 ................
Limitation on administrative expenses..................... 22,479 26,662 25,112 +2,633 -1,550
-----------------------------------------------------------------------------------------
Subtotal, Office of Inspector General................... 26,844 31,734 30,184 +3,340 -1,550
-----------------------------------------------------------------------------------------
Total, Office of Personnel Management................... 272,082 321,254 275,422 +3,340 -45,832
=========================================================================================
Office of Special Counsel..................................... 24,119 26,535 24,119 ................ -2,416
Postal Regulatory Commission.................................. 15,200 17,726 15,200 ................ -2,526
Privacy and Civil Liberties Oversight Board................... 21,297 10,081 10,081 -11,216 ................
Recovery and Accountability Transparency Board................ ................ ................ ................ ................ ................
Securities and Exchange Commission............................ 1,605,000 1,781,457 1,605,000 ................ -176,457
SEC fees.................................................. -1,605,000 -1,781,457 -1,605,000 ................ +176,457
SEC Reserve Fund (rescission)............................. -25,000 ................ ................ +25,000 ................
SEC Reserve Fund (limitation)............................. ................ ................ ................ ................ ................
Selective Service System...................................... 22,703 22,900 22,900 +197 ................
Small Business Administration
Salaries and expenses......................................... 268,000 275,033 268,000 ................ -7,033
Entrepreneurial Development Programs.......................... 231,100 230,600 231,100 ................ +500
Office of Inspector General................................... 19,900 19,900 19,900 ................ ................
Office of Advocacy............................................ 9,120 9,320 9,120 ................ -200
Business Loans Program Account:
Direct loans subsidy...................................... 3,338 4,338 4,338 +1,000 ................
Guaranteed loans subsidy.................................. ................ ................ ................ ................ ................
Administrative expenses................................... 152,726 152,726 152,726 ................ ................
-----------------------------------------------------------------------------------------
Total, Business loans program account................... 156,064 157,064 157,064 +1,000 ................
=========================================================================================
Disaster Loans Program Account:
Administrative expenses................................... 186,858 27,148 27,148 -159,710 ................
Disaster relief category.............................. ................ 158,829 158,829 +158,829 ................
-----------------------------------------------------------------------------------------
Total, Small Business Administration................ 871,042 877,894 871,161 +119 -6,733
Disaster Relief Category.............................. ................ 158,829 158,829 +158,829 ................
=========================================================================================
General provision (rescission) (Sec. 521)..................... ................ -55,000 -55,000 -55,000 ................
United States Postal Service
Payment to the Postal Service Fund............................ 55,075 63,658 48,422 -6,653 -15,236
Advance appropriations.................................... ................ ................ ................ ................ ................
-----------------------------------------------------------------------------------------
Total, Payment to the Postal Service Fund............... 55,075 63,658 48,422 -6,653 -15,236
=========================================================================================
Office of Inspector General................................... 248,600 258,800 252,600 +4,000 -6,200
-----------------------------------------------------------------------------------------
Total, United States Postal Service..................... 303,675 322,458 301,022 -2,653 -21,436
=========================================================================================
United States Tax Court....................................... 51,300 53,861 53,861 +2,561 ................
=========================================================================================
Total, title V, Independent Agencies.................... 3,303,585 3,188,147 2,075,990 -1,227,595 -1,112,157
Appropriations...................................... (3,328,585) (3,084,318) (1,972,161) (-1,356,424) (-1,112,157)
Rescissions......................................... (-25,000) (-55,000) (-55,000) (-30,000) ................
Disaster relief category............................ ................ (158,829) (158,829) (+158,829) ................
Advances............................................ ................ ................ ................ ................ ................
(By transfer)........................................... (34,568) (35,958) (35,958) (+1,390) ................
=========================================================================================
TITLE VI--GENERAL PROVISIONS
Mandatory appropriations (Sec. 619)........................... 20,961,450 21,376,450 21,376,450 +415,000 ................
GSA Cybersecurity (rescission)................................ ................ ................ ................ ................ ................
=========================================================================================
Total, title VI, General Provisions..................... 20,961,450 21,376,450 21,376,450 +415,000 ................
Grand total............................................. 44,830,934 46,542,785 44,361,260 -469,674 -2,181,525
Appropriations...................................... (45,555,934) (47,095,956) (44,914,431) (-641,503) (-2,181,525)
Rescissions......................................... (-725,000) (-712,000) (-712,000) (+13,000) ................
Disaster relief category............................ ................ (158,829) (158,829) (+158,829) ................
Advances............................................ ................ ................ ................ ................ ................
(By transfer)........................................... (34,568) (35,958) (35,958) (+1,390) ................
--------------------------------------------------------------------------------------------------------------------------------------------------------
[all]
