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                                                       Calendar No. 185
115th Congress        }                      {                Report
                                 SENATE
 1st Session          }                      {                115-138
======================================================================



 
 TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES 
                       APPROPRIATIONS BILL, 2018
                                _______
                                

                 July 27, 2017.--Ordered to be printed

                                _______
                                

   Ms. Collins, from the Committee on Appropriations, submitted the 
                               following

                                 REPORT

                         [To accompany S. 1655]

    The Committee on Appropriations reports the bill (S. 1655) 
making appropriations for the Departments of Transportation, 
and Housing and Urban Development, and related agencies for the 
fiscal year ending September 30, 2018, and for other purposes, 
reports favorably thereon and recommends that the bill do pass.



Amounts of new budget (obligational) authority for fiscal year 2018

Total of bill as reported to the Senate................. $60,058,000,000
Amount of 2017 appropriations...........................  61,437,017,000
Amount of 2018 budget estimate..........................  47,928,180,000
Bill as recommended to Senate compared to--
     2017 appropriations................................  -1,379,017,000
    2018 budget estimate................................ +12,129,820,000








                            C O N T E N T S

                              ----------                              
                                                                   Page
Overview and Summary of the Bill.................................     3
Program, Project, and Activity...................................     3
Reprogramming Guidelines.........................................     4
Congressional Budget Justifications..............................     5
Guidance Documents...............................................     6
Transparency Requirement.........................................     6
Federally Funded Research........................................     7
Title I: Department of Transportation:
    Office of the Secretary......................................     9
    Federal Aviation Administration..............................    26
    Federal Highway Administration...............................    50
    Federal Motor Carrier Safety Administration..................    56
    National Highway Traffic Safety Administration...............    62
    Federal Railroad Administration..............................    67
    Federal Transit Administration...............................    75
    Saint Lawrence Seaway Development Corporation................    81
    Maritime Administration......................................    82
    Pipeline and Hazardous Materials Safety Administration.......    88
    Office of Inspector General..................................    90
    General Provisions--Department of Transportation.............    91
Title II: Department of Housing and Urban Development:
    Management and Administration................................    93
    Administrative Support Offices...............................    97
    Program Offices Salaries and Expenses........................    98
    Public and Indian Housing....................................   103
    Community Planning and Development...........................   114
    Housing Programs.............................................   123
    Federal Housing Administration...............................   130
    Government National Mortgage Association.....................   131
    Policy Development and Research..............................   132
    Fair Housing and Equal Opportunity...........................   134
    Office of Lead Hazard Control and Healthy Homes..............   135
    Information Technology Fund..................................   137
    Office of Inspector General..................................   138
    General Provisions--Department of Housing and Urban 
      Development................................................   138
Title III: Independent Agencies:
    Access Board.................................................   141
    Federal Maritime Commission..................................   142
    National Railroad Passenger Corporation: Office of Inspector 
      General....................................................   142
    National Transportation Safety Board.........................   143
    Neighborhood Reinvestment Corporation........................   144
    Surface Transportation Board.................................   145
    United States Interagency Council on Homelessness............   146
Title IV: General Provisions--This Act...........................   148
Compliance With Paragraph 7, Rule XVI, of the Standing Rules of 
  the Senate.....................................................   149
Compliance With Paragraph 7(c), Rule XXVI, of the Standing Rules 
  of the Senate..................................................   150
Compliance With Paragraph 12, Rule XXVI of the Standing Rules of 
  the Senate.....................................................   151
Budgetary Impact of Bill.........................................   163
Comparative Statement of Budget Authority........................   164

                   
                   
                   
                   
                   
                   OVERVIEW AND SUMMARY OF THE BILL

    The Transportation, Housing and Urban Development, and 
Related Agencies appropriations bill provides funding for a 
wide array of Federal programs, mostly in the Departments of 
Transportation [DOT] and Housing and Urban Development [HUD]. 
These programs include investments in road, transit, rail, 
maritime, pipeline, aviation and airport infrastructure; the 
operation of the Nation's air traffic control system; resources 
to support community and economic development activities; and 
housing assistance for those in need, including the homeless, 
elderly, and disabled. The bill also provides funding for the 
Federal Housing Administration and Government National Mortgage 
Association to continue their traditional roles of providing 
access to affordable homeownership in the United States.
    The programs and activities supported by this bill include 
significant responsibilities entrusted to the Federal 
Government and its partners to protect human health and safety, 
support a vibrant economy, and achieve policy objectives 
strongly supported by the American people. The funding provided 
in this bill supports the investments necessary for a vibrant 
and economically competitive Nation.
    This bill makes possible the operation of the interstate 
highway system, as well as the world's safest, most complex air 
transportation system. This bill also includes funding for 
competitive grants to communities to support transformative 
transportation infrastructure projects of national or regional 
importance. It ensures safe and sanitary housing for nearly 5 
million low and extremely low-income families and individuals, 
over half of whom are elderly and/or disabled. It provides 
funding that is leading to the gradual elimination of 
homelessness among veterans, youth, victims of domestic 
violence, individuals and families.
    The bill, as reported, provides the proper balance of 
transportation, housing, and community development programs and 
activities. It is consistent with the subcommittee's allocation 
for fiscal year 2018. All accounts in the bill have been 
closely examined to ensure that a sufficient level of funding 
is provided to carry out the programs of DOT, HUD, and related 
agencies. Details on each of the accounts, and the Committee's 
justifications for the funding levels are included in the 
report.

                     PROGRAM, PROJECT, AND ACTIVITY

    During fiscal year 2018, 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), accompanying 
reports of the House and Senate Committees on Appropriations, 
or accompanying conference reports and joint explanatory 
statements of the committee of conference. This definition 
shall apply to all programs for which new budget (obligational) 
authority is provided, as well as to discretionary grants and 
discretionary grant allocations made through either bill or 
report language.

                        REPROGRAMMING GUIDELINES

    The Committee includes a provision (section 405) 
establishing the authority by which funding available to the 
agencies funded by this act may be reprogrammed for other 
purposes. The provision specifically requires the advanced 
approval of the House and Senate Committees on Appropriations 
of any proposal to reprogram funds that:
  --creates a new program;
  --eliminates a program, project, or activity [PPA];
  --increases funds or personnel for any PPA for which funds 
        have been denied or restricted by the Congress;
  --proposes to redirect funds that were directed in such 
        reports for a specific activity to a different purpose;
  --augments an existing PPA in excess of $5,000,000 or 10 per- 
        cent, whichever is less;
  --reduces an existing PPA by $5,000,000 or 10 percent, which- 
        ever is less; or
  --creates, reorganizes, or restructures offices different 
        from 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 prior year enacted level; budget 
request; adjustments made by Congress; adjustments for 
rescissions, if appropriate; and the fiscal year enacted level. 
The table shall delineate the appropriation and prior year 
enacted level both by object class and by PPA, as well as 
identify balances available for use under section 406 of the 
bill. 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 Senate, it is the responsibility of the 
Department to reconcile the House and Senate differences before 
proceeding, and if reconciliation is not possible, to consider 
the request to reprogram funds unapproved.
    The Committee would also like to clarify that this section 
applies to the Department of Transportation's Working Capital 
Fund, and that no funds may be obligated from such funds to 
augment programs, projects or activities for which 
appropriations have been specifically rejected by the Congress, 
or to increase funds or personnel for any PPA above the amounts 
appropriated by this act.

                  CONGRESSIONAL BUDGET JUSTIFICATIONS

    Budget justifications 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 the Office of Management and Budget 
[OMB]. In fact, OMB Circular A-11, part 6 specifically states 
that the ``agency should consult with your congressional 
committees beforehand to ensure their awareness of your plans 
to modify the format of agency budget documents.'' The 
Committee expects that all agencies funded under this act will 
heed this directive. The Committee expects all of the budget 
justifications to provide the data needed to make appropriate 
and meaningful funding decisions.
    While the Committee values the inclusion of performance 
data and presentations, it is important to ensure vital budget 
information that the Committee needs is not lost. Therefore, 
the Committee directs that justifications submitted with the 
fiscal year 2019 budget request by agencies funded under this 
act 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 and 
materials that compare programs, projects, and activities that 
are proposed for fiscal year 2019 to the fiscal year 2018 
enacted level.
    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 
2019 budget request.
    The Committee directs each agency to include within its 
budget justification a report on all efforts made to address 
the duplication identified by the annual GAO reports along with 
legal barriers preventing the agency's ability to further 
reduce duplication and legislative recommendations, if 
applicable.

                           GUIDANCE DOCUMENTS

    The Committee remains concerned about the use of guidance 
documents, or interpretive rules, to impose new requirements on 
regulated entities even though such documents are not legally 
binding. The Supreme Court has recognized there can be a fine 
line between what should be issued as a regulation for purposes 
of notice and comment rulemaking under the Administrative 
Procedure Act and what can be issued as guidance. The Supreme 
Court has also recognized that Federal agencies may sometimes 
issue guidance to circumvent the notice and comment rulemaking 
process. Legal scholars and multiple members of Congress have 
also expressed concern about the use of guidance to avoid 
rulemaking. Finally, the GAO found that if an agency 
periodically reviews its guidance it can significantly reduce 
unnecessary guidance. For example, after a sub-agency in the 
Department of Labor reviewed its guidance to determine if it 
was relevant and current, the sub-agency was able to reduce its 
guidance by 85 percent. GAO also found that the dissemination 
of guidance to the public can be improved.
    The Committee recommends the Departments of Transportation 
and Housing and Urban Development clearly label in a plain, 
prominent, and permanent manner that the agency's guidance 
documents are not legally binding and may not be relied upon by 
the agency as grounds for agency action. The Committee also 
recommends this include a thorough explanation on an agency's 
guidance document about why the agency believes it is 
appropriate to issue guidance about a matter instead of 
proposing a regulation and what specific statutory provisions 
or regulation(s) the guidance is interpreting. The Committee 
further recommends this guidance be updated every 2 years, with 
input solicited from the public, to determine if any of its 
guidance is duplicative, outdated, ineffective, insufficient, 
or excessively burdensome and needs to be modified, 
streamlined, or repealed and place all guidance documents in 
one place on its Web site as well as on the relevant sub-agency 
Web page. This information should be easily accessible for the 
public to comment on guidance and should be sent to the Office 
of Management and Budget to determine if the guidance is 
significant.

                        TRANSPARENCY REQUIREMENT

    The Committee is aware that agencies funded in this act use 
resources for advertising purposes. The Committee directs the 
agen- cies in this act to state within the text, audio, or 
video used for new advertising purposes, including advertising/
posting on the Internet, that the advertisements are printed, 
published, or produced and disseminated at U.S. taxpayer 
expense. The agencies may exempt any such advertisements from 
this requirement if it creates an ad- verse impact on safety or 
impedes the ability of these agencies to carry out their 
statutory authority.
    The Committee is also concerned about the number of 
advisory and rulemaking Committees and the resources that are 
being redirected to accomplish tasks. In an effort to ensure 
proper oversight, within 30 days of enactment of this act, the 
Departments are directed to provide to the House and Senate 
Committees on Appropriations: (1) a complete list of rulemaking 
and advisory committees and their underlying authorization; (2) 
costs to the Departments associated with each advisory 
committee, including travel reimbursements; and (3) a complete 
list and copy of all reports and recommendations produced since 
January 1, 2016.

                       FEDERALLY FUNDED RESEARCH

    The Committee urges the Department of Transportation and 
the Department of Housing and Urban Development to 
affirmatively determine, justified in writing made available on 
a publically accessible website, that research grants or 
agreements promote the progress of science in the United States 
or will advance a national security or economic interest.

                                TITLE I

                      DEPARTMENT OF TRANSPORTATION

    The Committee routinely conducts oversight of annual 
spending, the implementation of appropriation's directives, and 
the execution of authorization acts to ensure the Department is 
meeting the mandates of Congress and the effective and 
efficient use of limited taxpayer resources. The Committee also 
regularly receives technical assistance from the Department in 
order to ensure that Appropriations bills are implemented as 
intended by Congress. Any attempt to limit the Committee's 
oversight role of the Chairman or Ranking Member is 
unacceptable. The Secretary, any appointee or staff shall 
respond to any Committee inquiry in a timely manner. While the 
vast majority of technical assistance from the Department is 
accurate and timely, the Committee is disappointed in certain 
instances of poor technical assistance in recent years. 
Specifically, the Department has withheld information from the 
Committee regarding idle funding that could have been more 
appropriately spent and has made inaccurate statements 
regarding the availability of resources the Committee intended 
to provide. Therefore, the Committee directs the Department to 
report to the House and Senate Committees on Appropriations 
within 30 days of any Transportation, Housing and Urban 
Development, and Related Agencies appropriations bill passing 
the House or Senate Committees on Appropriations regarding any 
concerns or challenges with implementation of funding levels or 
policy directives contained in each bill or report.
    Infrastructure Initiative.--The President's request 
includes $200,000,000,000 to leverage $1,000,000,000,000 in new 
investment in the Nation's physical infrastructure. This 
proposal is expected to include policy, regulatory, and 
legislative proposals, ranging from changes to existing 
programs, to the creation of new programs and initiatives to 
reshape how the Federal government invests, permits, and 
collaborates on infrastructure. To date, no such proposal has 
been submitted to the Committee. While the Committee fully 
supports additional spending for our Nation's infrastructure, 
it strongly disagrees with the Administration's assertion that 
providing Federal dollars for infrastructure has created, ``an 
unhealthy dynamic in which State and local governments delay 
projects in the hope of receiving Federal funds.'' Without 
Federal investment in infrastructure, particularly in our 
Nation's highway network and transit systems, the ability to 
move freight across the country and the free movement of people 
between States with vastly differing abilities to fund 
infrastructure would be compromised. The Committee is also 
concerned that the Administration does not realize that State 
and local governments, through the statewide transportation 
improvement program planning process, already determine the 
``right level--and type--of infrastructure investment needed 
for their communities.'' More troubling is the fact that the 
budget request assumes that after fiscal year 2020, highway 
trust fund outlays will be at levels that are supported with 
existing tax receipts, resulting in an outlay reduction of 
$95,000,000,000 over fiscal years 2021-2027. The 
Administration's approach is dangerously close to support for 
devolution of Federal funding provided by the Highway Trust 
Fund, an idea the Committee strongly opposes.

                        Office Of the Secretary

    Section 3 of the Department of Transportation Act of 
October 15, 1966 (Public Law 89-670) provides for the 
establishment of the Office of the Secretary of Transportation 
[OST]. OST is comprised of the Secretary and the Deputy 
Secretary immediate and support offices; the Office of the 
General Counsel; the Office of the Under Secretary of 
Transportation for Policy, including the offices of the 
Assistant Secretary for Aviation and International Affairs and 
the Assistant Secretary for Transportation Policy; four 
Assistant Secretarial offices for Budget and Programs, 
Governmental Affairs, Research and Technology, and 
Administration; and the Offices of Public Affairs, the 
Executive Secretariat, Intelligence, Security and Emergency 
Response, and the Chief Information Officer. OST also includes 
the Department's Office of Civil Rights and the Department's 
Working Capital Fund.

                         SALARIES AND EXPENSES

Appropriations, 2017....................................    $114,000,000
Budget estimate, 2018...................................     111,898,000
Committee recommendation................................     112,813,000

                          PROGRAM DESCRIPTION

    This appropriation finances the costs of policy development 
and central supervisory and coordinating functions necessary 
for the overall planning and direction of the Department. It 
covers the immediate secretarial offices as well as those of 
the assistant secretaries, and the general counsel.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $112,813,000 for 
salaries and expenses of OST, including $60,000 for reception 
and representation expenses. The recommendation is $915,000 
more than the budget request and $1,187,000 less than the 
fiscal year 2017 enacted level. The accompanying bill 
stipulates that none of the funding provided may be used for 
the position of Assistant Secretary for Public Affairs.
    The accompanying bill authorizes the Secretary to transfer 
up to 5 percent of the funds from any office within the Office 
of the Secretary to another. The Committee recommendation also 
continues language that permits up to $2,500,000 of fees to be 
credited to the Office of the Secretary for salaries and 
expenses.
    The following table summarizes the Committee's 
recommendation in comparison to the fiscal year 2017 enacted 
level and the budget request:

----------------------------------------------------------------------------------------------------------------
                                                                       Fiscal year--
                                                           ------------------------------------     Committee
                                                              2017 enacted      2018 estimate    recommendation
----------------------------------------------------------------------------------------------------------------
Office of the Secretary...................................        $2,758,000  ................        $3,001,000
Office of the Deputy Secretary............................         1,040,000  ................         1,040,000
Office of the General Counsel.............................        20,772,000  ................       20,555,0000
Office of the Under Secretary for Policy..................        10,033,000  ................        10,331,000
Office of the Assistant Secretary for Budget and Programs.        14,019,000  ................        14,019,000
Office of the Assistant Secretary for Governmental Affairs         2,546,000  ................         2,546,000
Office of the Assistant Secretary for Administration......        29,356,000  ................        29,356,000
Office of Public Affairs..................................         2,142,000  ................         2,142,000
Office of the Executive Secretariat.......................         1,760,000  ................         1,760,000
Office of Intelligence, Security, and Emergency Response..        11,089,000  ................        11,318,000
Office of the Chief Information Officer...................        18,485,000  ................        16,745,000
                                                           -----------------------------------------------------
      Total...............................................       114,000,000    \1\111,898,000       112,813,000
----------------------------------------------------------------------------------------------------------------
\1\The fiscal year 2018 budget request did not include amounts for each office within the Office of the
  Secretary.

                   IMMEDIATE OFFICE OF THE SECRETARY

                          PROGRAM DESCRIPTION

    The Secretary of Transportation provides leadership and has 
the primary responsibility to provide overall planning, 
direction, and control of the Department.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $3,001,000 for fiscal year 2018 
for the Immediate Office of the Secretary. The recommendation 
is $243,000 more than the fiscal year 2017 enacted level.
    Preclearance.--Improving the flow of passengers and traffic 
between the United States and Canada is essential to the 
economy of both our nations. The Committee expects the FAA, FRA 
and Amtrak to comply with the U.S.-Canada Agreement on Land, 
Rail, Marine, and Air Transport Preclearance to facilitate air 
travel and passenger rail service between United States and 
Canadian cities. The Committee directs DOT agencies that have a 
role in implementing preclearance operations on the four 
specific sites announced by the United States and Canada on 
March 10, 2016, to facilitate their preclearance facilities 
development as expeditiously as possible. DOT will coordinate 
efforts between the FAA, FRA, Amtrak, the Department of 
Homeland Security and U.S. Customs and Border Protection to 
report to the House and Senate Committees on Appropriations 
within 90 days of enactment of this act on their progress 
implementing the U.S.-Canada Preclearance Agreement.

                IMMEDIATE OFFICE OF THE DEPUTY SECRETARY

                          PROGRAM DESCRIPTION

    The Deputy Secretary has the primary responsibility of 
assisting the Secretary in the overall planning and direction 
of the Department.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,040,000 for the Immediate 
Office of the Deputy Secretary, which is equal to the fiscal 
year 2017 enacted level.

                     OFFICE OF THE GENERAL COUNSEL

                          PROGRAM DESCRIPTION

    The Office of the General Counsel provides legal services 
to the Office of the Secretary, including the conduct of 
aviation regulatory proceedings and aviation consumer 
activities, and coordinates and reviews the legal work in the 
chief counsels' offices of the operating administrations. The 
General Counsel is the chief legal officer of the Department 
and the final authority on all legal questions.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $20,555,000 for expenses of the 
Office of the General Counsel for fiscal year 2018. The 
recommended funding level is $217,000 less than the fiscal year 
2017 enacted level.
    Sexual Assault Rules and Guidelines.--The Committee remains 
concerned about the adequacy of response to incidents of sexual 
assault and sexual harassment that take place onboard 
commercial aircraft. All passengers should be able to travel 
without the worry of being sexually assaulted. However, there 
is limited data on the prevalence of sexual assault and sexual 
harassment committed on commercial aircraft and a lack of 
guidance and training for airline personnel to respond to such 
incidents.
    The Committee directs the Office of Aviation Enforcement 
and Proceedings, in conjunction with the FAA, to establish 
Federal rules and guidelines, based on best practices, for air 
carriers to respond to and address sexual assault and sexual 
harassment onboard commercial aircraft within 1 year of 
enactment of this act. The Federal rules and guidelines shall 
include: (1) initial and annual recurrent training for flight 
attendants, pilots, and other individuals who are employees or 
contractors of the air carrier that respond to or address 
sexual assault and sexual harassment of passengers, employees, 
and contractors of the air carrier onboard commercial aircraft; 
(2) timely reporting by air carriers of sexual assault and 
sexual harassment onboard commercial aircraft, which 
incorporates privacy protections for victims; and (3) a program 
to collect, maintain, and make publically available data from 
air carriers on the incidence of sexual assault and sexual 
harassment onboard commercial aircraft in a manner that 
maintains privacy protections for individuals and allows for 
confidential reporting.
    To develop these Federal rules and guidelines, the Office 
of Aviation Enforcement and Proceedings shall establish the 
National In-Flight Sexual Assault Task Force [Task Force] to 
provide recommendations to the Secretary on best practices and 
protocols for air carriers relating to training, reporting, and 
data collection. The task force shall include the Department of 
Justice, including the Office on Violence Against Women; the 
Department of Health and Human Services; national organizations 
which specialize in providing services to sexual assault 
victims and responding to and addressing sexual assault and 
sexual harassment; national consumer protection organizations; 
national travel organizations; labor organizations which 
represent flight attendants and pilots; State and local law 
enforcement agencies; airports; and air carriers. Within 180 
days of enactment of this act, the Office of Aviation 
Enforcement and Proceedings shall submit an initial report to 
the House and Senate Committees on Appropriations on the Task 
Force's recommendations.
    Consumer Protections.--The Department has the authority and 
duty to protect consumers from unfair or deceptive practices 
and to ensure safe and adequate service related to air 
transportation. To that end, the FAA Extension, Safety and 
Security Act Authorization bill of 2016 directed the Department 
to promulgate regulations to require air carriers to refund 
fees for delayed baggage, as well as to address adjoining seats 
for children and their parents within 1 year of the date of 
enactment. There has been no action taken to address these 
consumer fairness issues, which were due to be finalized by 
July 16, 2017. The failure to address these Congressional 
mandates in a timely manner is unacceptable and allows airlines 
to continue to take advantage of the traveling public with 
unreasonable fees on baggage, and on parent's ability to sit 
with and care for their children in flight. Therefore, the 
Committee directs the Secretary to take immediate action to 
implement these two regulatory actions.
    Further, there have been recent high-profile incidents in 
which commercial airline employees have allowed conflicts to 
escalate into violent acts against customers. These incidents 
have led to increased demand for additional consumer protection 
measures, particularly with regard to overbooked flights. DOT's 
regulations require airlines to inform and compensate 
passengers who are bumped from their flights involuntarily. Air 
carriers are also required to provide boarding priority rules 
and criteria for determining which passengers will be denied 
boarding on oversold flights, and airlines must provide 
compensation to customers who are involuntarily bumped from 
their flights. The Secretary testified that she is evaluating 
commercial airline policies on this issue and whether 
additional limitations should be placed on overbooking by 
commercial airlines. The Committee is interested to know these 
findings and conclusions and directs the Secretary to report to 
the House and Senate Committees on Appropriations once such 
assessment is completed.

                OFFICE OF THE UNDER SECRETARY FOR POLICY

                          PROGRAM DESCRIPTION

    The Under Secretary for Policy is the chief policy officer 
of the Department and is responsible for the analysis, 
development, and review of policies and plans for domestic and 
international transportation matters. The Office administers 
the economic regulatory functions regarding the airline 
industry and is responsible for international aviation 
programs, the essential air service program, airline fitness 
licensing, acquisitions, international route awards, 
computerized reservation systems, and special investigations, 
such as airline delays.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $10,331,000 for the Office of the 
Under Secretary for Policy. The recommended funding level is 
$298,000 more than the fiscal year 2017 enacted level.
    Rural Infrastructure.--Congress cannot ignore the country's 
infrastructure needs by supporting the Administration's 
proposed 13 percent cut to the Department's programs. 
Deteriorating infrastructure already costs the economy close to 
$200,000,000,000 a year. To simply catch up, our infrastructure 
needs require direct Federal investments in our transportation 
networks and communities because we cannot fix a problem of 
this magnitude with private-public partnerships alone. In 
particular, investments in infrastructure in rural America are 
vital for growing the economy, increasing exports, and 
expanding markets.
    The Committee believes that our Federal infrastructure 
programs must benefit communities across the country and 
recognizes the importance of providing set-asides when possible 
for small towns, rural communities, Tribal lands, and 
underserved populations is necessary to balance the needs of 
all communities across the country. For this reason, the 
Committee continues to require the Secretary to award grants 
and credit assistance in a manner that ensures an equitable 
geographic distribution of funds and an appropriate balance in 
addressing the needs of urban and rural communities.
    Agreements.--In fiscal year 2016, the Committee provided 
the Department $130,000 in requested funds to conduct studies 
and regulatory analysis to ensure U.S. airlines and consumers 
realize the full benefits of Open Skies agreements. For 25 
years, these agreements have significantly benefited consumers, 
communities and the U.S. economy and allowed America's 
passenger airlines to achieve profitability and on which 
America's all-cargo airlines have established a world-leading 
position in the global market for express delivery services. 
Additionally, the Department began an interagency process to 
solicit public comments and evaluate whether alleged foreign 
government subsidies received by some international carriers 
violate the agreements. While the previous Administration 
initiated informal discussions with some foreign governments to 
address these alleged subsidies, no conclusion was reached 
prior to the end of the Administration. The Committee requests 
that the Department consider whether it is necessary and 
appropriate to continue those informal discussions. If it 
decides to do so, the Committee strongly urges the Department 
to carefully consider the interests of all the stakeholders, 
including consumers, communities, both passenger and all-cargo 
carriers, the travel and tourism industry, U.S. aerospace 
manufacturers and the national economy. The Committee directs 
the Department to provide regular updates to the Committee.

       OFFICE OF THE ASSISTANT SECRETARY FOR BUDGET AND PROGRAMS

                          PROGRAM DESCRIPTION

    The Assistant Secretary for Budget and Programs serves as 
the Chief Financial Officer for the Department and provides 
leadership on all financial management matters. The primary 
responsibilities of this office include ensuring the 
development and justification of the Department's annual budget 
submissions for consideration by the Office of Management and 
Budget and the Congress. The Office is also responsible for the 
proper execution and accountability of these resources. In 
addition, the Office of the Chief Financial Officer for the 
Office of the Secretary is located within the Office of the 
Assistant Secretary for Budget and Programs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $14,019,000 for the Office of the 
Assistant Secretary for Budget and Programs. The recommended 
level is equal to the fiscal year 2017 enacted level.

       OFFICE OF THE ASSISTANT SECRETARY FOR GOVERNMENTAL AFFAIRS

                          PROGRAM DESCRIPTION

    The Assistant Secretary for Governmental Affairs advises 
the Secretary on all congressional and intergovernmental 
activities and on all departmental legislative initiatives and 
other relationships with Members of Congress. The Assistant 
Secretary promotes effective communication with other Federal 
agencies and regional Department officials, and with State and 
local governments and national organizations for development of 
departmental programs; and ensures that consumer preferences, 
awareness, and needs are brought into the decisionmaking 
process.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $2,546,000 for the 
Office of the Assistant Secretary for Governmental Affairs. The 
recommended level is equal to the fiscal year 2017 enacted 
level.

          OFFICE OF THE ASSISTANT SECRETARY FOR ADMINISTRATION

                          PROGRAM DESCRIPTION

    The Assistant Secretary for Administration is responsible 
for establishing policies and procedures, setting guidelines, 
working with the operating administrations to improve the 
effectiveness and efficiency of the Department in human 
resource management, security and administrative management, 
real and personal property management, and acquisition and 
grants management.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $29,356,000 for the Office of the 
Assistant Secretary for Administration. The recommended funding 
level is equal to the fiscal year 2017 enacted level.

                        OFFICE OF PUBLIC AFFAIRS

                          PROGRAM DESCRIPTION

    The Director of Public Affairs is the principal advisor to 
the Secretary and other senior departmental officials on public 
affairs questions. The Office is responsible for managing the 
Secretary's presence in the media, writing speeches and press 
releases, and preparing the Secretary for public appearances. 
The Office arranges media events and news conferences, and 
responds to media inquiries on the Department's programs and 
other transportation-related issues. It also provides 
information to the Secretary on the opinions and reactions of 
the public and news media on these programs and issues.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $2,142,000 for the Office of 
Public Affairs, which is equal to the fiscal year 2017 enacted 
level.

                         EXECUTIVE SECRETARIAT

                          PROGRAM DESCRIPTION

    The Executive Secretariat assists the Secretary and the 
Deputy Secretary in carrying out their management functions and 
responsibilities by controlling and coordinating internal and 
external written materials.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,760,000 for the Executive 
Secretariat. The recommendation is equal to the fiscal year 
2017 enacted level.

        OFFICE OF INTELLIGENCE, SECURITY, AND EMERGENCY RESPONSE

                          PROGRAM DESCRIPTION

    The Office of Intelligence, Security, and Emergency 
Response ensures the development, coordination, and execution 
of plans and procedures for the Department to balance 
transportation security requirements with the safety, mobility, 
and economic needs of the Nation. The Office keeps the 
Secretary and her advisors apprised of current developments and 
long-range trends in international issues, including terrorism, 
aviation, trade, transportation markets, and trade agreements. 
The Office also advises the Department's leaders on policy 
issues related to intelligence, threat information sharing, 
national security strategies and national preparedness and 
response planning.
    To ensure the Department is able to respond to disasters, 
the Office prepares for and coordinates the Department's 
participation in national and regional exercises and training 
for emergency personnel. The Office also administers the 
Department's Continuity of Government and Continuity of 
Operations programs and initiatives. Additionally, the Office 
provides direct emergency response and recovery support through 
the National Response Framework and operates the Department's 
Crisis Management Center. The center monitors the Nation's 
transportation system 24 hours a day, 7 days a week, and is the 
Department's focal point during emergencies.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $11,318,000 for the Office of 
Intelligence, Security, and Emergency Response. The 
recommendation is $229,000 more than the fiscal year 2017 
enacted level.

                OFFICE OF THE CHIEF INFORMATION OFFICER

                          PROGRAM DESCRIPTION

    The Office of the Chief Information Officer serves as the 
principal advisor to the Secretary on matters involving 
information technology, cybersecurity, privacy, and records 
management.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $16,745,000 for the Office of the 
Chief Information Officer, which is $1,740,000 less than the 
fiscal year 2017 enacted level.

                        RESEARCH AND TECHNOLOGY

Appropriations, 2017....................................     $13,000,000
Budget estimate, 2018...................................       8,465,000
Committee recommendation................................       8,465,000

                          PROGRAM DESCRIPTION

    The Office of the Assistant Secretary for Research and 
Technology has taken over the responsibilities previously held 
by the Research and Innovative Technology Administration. The 
responsibilities include coordinating, facilitating, and 
reviewing the Department's research and development programs 
and activities; and overseeing and providing direction to the 
Bureau of Transportation Statistics, the Intelligent 
Transportation Systems Joint Program Office, the University 
Transportation Centers program, the Volpe National 
Transportation Systems Center and the Transportation Safety 
Institute.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $8,465,000 for 
the Office of the Assistant Secretary for Research and 
Technology, of which $2,618,000 shall be available through 
September 30, 2020. This amount is equal to the budget request 
and $4,535,000 less than the fiscal year 2017 enacted level. 
The following table summarizes the Committee's recommendation 
in comparison to the budget request and the fiscal year 2017 
enacted level:

----------------------------------------------------------------------------------------------------------------
                                                                       Fiscal year--
                                                           ------------------------------------     Committee
                                                              2017 enacted      2018 estimate    recommendation
----------------------------------------------------------------------------------------------------------------
Salaries and Administrative Expenses......................        $4,826,000        $5,847,000        $5,847,000
Research & Technology Programs............................  ................         2,618,000         2,618,000
Research, Development and Technology Coordination.........           509,000  ................  ................
Alternative Energy Research and Development...............           499,000  ................  ................
Positioning, Navigation and Timing........................         1,610,000  ................  ................
Civil Signal Monitoring--Air Force--GPS...................  ................  ................  ................
Nationwide Differential Global Positioning System.........         5,600,000  ................  ................
                                                           -----------------------------------------------------
      Total...............................................        13,000,000         8,465,000         8,465,000
----------------------------------------------------------------------------------------------------------------

    University Transportation Centers.--The Committee continues 
to support University Transportation Centers, which are funded 
through the Federal Highway Administration. Under the Committee 
recommendation, University Transportation Centers will continue 
to receive the levels authorized under the Fixing America's 
Surface Transportation Act [FAST Act].
    Autonomous Vehicle Research in Rural Areas.--The Committee 
believes that autonomous vehicles have the potential to enhance 
roadway safety and increase mobility options for all Americans, 
but have additional challenges to overcome in order to bring 
these benefits to rural Americans. Of the funds provided for 
the University Transportation Centers, no less than $3,000,000 
is for rural autonomous vehicle and connected vehicle research 
to be conducted by existing University Transportation Center 
universities. Further, research should take into account 
variations in rural infrastructure: such as unmapped, gravel, 
and snow-covered roads; wildlife encounters; and other 
situations unique to rural roads.
    Small Business Innovation Research.--The Committee 
recognizes the importance of the Small Business Innovation 
Research program and its previous success in commercialization 
from federally funded research and development projects. The 
SBIR program encourages domestic small business to engage in 
Federal research and development and creates jobs in the 
smallest firms. The Committee therefore directs the Department 
to place an increased focus on awarding SBIR awards to firms 
with fewer than 50 people.
    Technology Solutions.--The Committee encourages the 
Department to review and test nanotechnology solutions that may 
provide a benefit to Federal, State and local governments by 
extending the life and utility of materials such as cement, 
asphalt and steel.
    Increasing Public Access to Federally-funded Research.--The 
Committee commends the Department on issuing its Plan to 
Increase Public Access to the Results of Federally-funded 
Scientific Research Results on December 16, 2015. The Committee 
urges the Department to continue its efforts towards full 
implementation of the plan, and expects an update on progress 
to be included in its fiscal year 2019 budget request.
    Transportation Data Hub.--The Committee encourages the 
Department to assess establishing a surface transportation and 
maritime analytics partnership hub that focuses on making 
available large-scale data and visualization tools related to 
transportation on infrastructure, systems, and networks 
accessible to humans and machines through the Internet of 
things [IoT], in order to enable improved resilience, planning, 
investment and operational decisions.

                  NATIONAL INFRASTRUCTURE INVESTMENTS

Appropriations, 2017....................................    $500,000,000
Budget estimate, 2018...................................................
Committee recommendation................................     550,000,000

                          PROGRAM DESCRIPTION

    This program provides grants and credit assistance to State 
and local governments, transit agencies, or a collaboration of 
such entities for capital investments in surface transportation 
infrastructure that will have a significant impact on the 
Nation, a metropolitan area or a region. Eligible projects 
include highways and bridges, public transportation, freight 
and passenger rail, and port infrastructure. The Department 
awards grants on a competitive basis; however, the Department 
must ensure an equitable geographic distribution of funds and 
an appropriate balance in addressing the needs of urban and 
rural communities and within the timeframes outlined in the 
bill.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation includes $550,000,000 for 
grants and credit assistance for investment in significant 
transportation projects, which is $50,000,000 more than the 
fiscal year 2017 enacted level. The Committee continues to 
believe that the National Infrastructure Investments program is 
integral to the economic success of communities throughout the 
country. The criteria to be used for these grants shall be the 
criteria from the fiscal year 2016 Notice of Funding 
Opportunity.
    Protections for Rural Areas.--The Committee continues to 
believe that our Federal infrastructure programs must benefit 
communities across the country. For this reason, the Committee 
continues to require the Secretary to award grants and credit 
assistance in a manner that ensures an equitable geographic 
distribution of funds and an appropriate balance in addressing 
the needs of urban and rural communities.
    Investing in infrastructure in rural America is extremely 
important for growing the economy, increasing exports, and 
expanding markets. For this reason, the Committee has set aside 
no less than 30 percent of the program's funding for projects 
located in rural areas, and included specific provisions to 
match grant requirements with the needs of rural areas. 
Specifically, the Committee has lowered the minimum size of a 
grant awarded to a rural area and increased the Federal share 
of the total project cost.
    Port Infrastructure.--The Committee recognizes the 
important role that ports play in our Nation's transportation 
network. With the prediction that the volume of trade through 
our Nation's ports will substantially increase in the next 
decade, our Nation's infrastructure will be challenged to 
accommodate the increase in the movement of freight. Growth at 
our Nation's ports simultaneously increases demand on our 
transportation systems. Therefore, the Committee continues to 
identify inland and land based ports as eligible recipients of 
this program and directs the Secretary to take into 
consideration, when selecting recipients, the annual tonnage, 
existing terminal capacity, and potential economic benefits of 
improvements to, or expansion of, ports.

     NATIONAL SURFACE TRANSPORTATION AND INNOVATIVE FINANCE BUREAU

Appropriations, 2017....................................      $3,000,000
Budget estimate, 2018...................................       3,000,000
Committee Recommendation................................       3,000,000

                          PROGRAM DESCRIPTION

    The National Surface Transportation and Innovative Finance 
Bureau [Bureau] will administer and coordinate or consolidate 
aspects of the Department's existing surface transportation 
innovative finance programs as authorized in section 9001 of 
the FAST Act, contingent upon advance approval by the 
Committee.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $3,000,000 to establish and 
fulfill the duties of the Bureau, as authorized in section 9001 
of the FAST Act, which is equal to the budget request and the 
fiscal year 2017 enacted level. The Committee directs the 
Bureau to report to the House and Senate Committees on 
Appropriations on streamlining the application approval 
processes as required under 49 U.S.C. 116(d)(5).

                      FINANCIAL MANAGEMENT CAPITAL

Appropriations, 2017....................................      $4,000,000
Budget estimate, 2018...................................       3,000,000
Committee recommendation................................       3,000,000

                          PROGRAM DESCRIPTION

    The Financial Management Capital program is a multi-year 
business transformation initiative to streamline and 
standardize the financial systems and business processes across 
the Department. The initiative includes upgrading and enhancing 
the commercial software used for DOT's financial systems, 
improving the cost and performance data provided to managers, 
and instituting new accounting standards and mandates.

                        COMMITTEE RECOMMENDATION

    The Committee is recommending $3,000,000 to complete the 
Secretary's Financial Management Capital initiative, which is 
equal to the budget request and $1,000,000 less than fiscal 
year 2017 enacted level.

                       CYBER SECURITY INITIATIVE

Appropriations, 2017....................................     $15,000,000
Budget estimate, 2018...................................      10,000,000
Committee recommendation................................      15,000,000

                          PROGRAM DESCRIPTION

    The Cyber Security Initiative is an effort to close 
performance gaps in the Department's cybersecurity. The 
initiative includes support for essential program enhancements, 
infrastructure improvements and contractual resources to 
enhance the security of the Department's computer network and 
reduce the risk of security breaches.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation includes $15,000,000 to 
support the Secretary's Cyber Security Initiative, which is 
$5,000,000 more than the budget request and equal to the fiscal 
year 2017 enacted level. The increase is for full execution of 
phase 2 of the DOT Network Assessment Risk Mitigation 
initiative.

                         OFFICE OF CIVIL RIGHTS

Appropriations, 2017....................................      $9,751,000
Budget estimate, 2018...................................       9,500,000
Committee recommendation................................       9,500,000

                          PROGRAM DESCRIPTION

    The Office of Civil Rights is responsible for advising the 
Secretary on civil rights and equal employment opportunity 
matters, formulating civil rights policies and procedures for 
the operating administrations, investigating claims that small 
businesses were denied certification or improperly certified as 
disadvantaged business enterprises, overseeing the Department's 
conduct of its civil rights responsibilities, and making final 
determinations on civil rights complaints. In addition, the 
Civil Rights Office is responsible for enforcing laws and 
regulations which prohibit discrimination in federally operated 
and federally assisted transportation programs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a funding level of $9,500,000 for 
the Office of Civil Rights. The recommendation is equal to the 
budget request and $251,000 less than the fiscal year 2017 
enacted level.

           TRANSPORTATION PLANNING, RESEARCH, AND DEVELOPMENT

Appropriations, 2017....................................     $12,000,000
Budget estimate, 2018...................................       8,500,000
Committee recommendation................................       8,500,000

                          PROGRAM DESCRIPTION

    The Office of the Secretary performs those research 
activities and studies which can more effectively or 
appropriately be conducted at the departmental level. This 
research effort supports the planning, research, and 
development activities needed to assist the Secretary in the 
formulation of national transportation policies. The program is 
carried out primarily through contracts with other Federal 
agencies, educational institutions, nonprofit research 
organizations, and private firms.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $8,500,000 for Transportation 
Planning, Research, and Development, which is equal to the 
budget request and $3,500,000 less than the fiscal year 2017 
enacted level. The Committee directs the Secretary to dedicate 
$1,500,000 to support the Interagency Infrastructure Permitting 
Improvement Center.
    Nonmotorized User Safety.--The Committee is aware that 
adults 65 and over make up a disproportionate share of 
pedestrian fatalities and that pedestrian fatalities continue 
to rise. Consistent with section 1442 of the FAST Act, the 
Secretary should conduct rigorous outreach to States and 
Metropolitan Planning Organizations for the purpose of creating 
safe communities and reducing traffic fatalities among 
nonmotorized users. Specifically through the Safer People, 
Safer Streets initiative, the Secretary should expand the 
availability of technical assistance and training workshops to 
help States and Metropolitan Planning Organizations revise 
their practices, standards and performance measurements in all 
phases of project planning, development, and operation with the 
goal of reducing fatalities among non-motorized users. In 
fulfilling the report required in section 1442, the Secretary 
should include guidance to States on how to identify the design 
and accommodation needs for each class of roadway user, 
separated by categories of age and ability, as well as actions 
that could be taken by State and local partners to improve safe 
and adequate accommodations for all users of the transportation 
network, including recommendations on changing policies and 
procedures; practical steps to modify planned and existing 
infrastructure; a list of common barriers to implementation and 
recommendations to overcome such barriers; guidance on 
evaluating the costs and benefits of safe and adequate 
accommodations; and recommendations for maximizing State and 
local cooperation.

                          WORKING CAPITAL FUND

Limitation, 2017........................................    $190,389,000
Budget estimate, 2018...................................     202,245,000
Committee recommendation................................     202,245,000

                          PROGRAM DESCRIPTION

    The Working Capital Fund provides technical and 
administrative services to the Department's operating 
administrations and other Federal entities. The services are 
centrally performed in the interest of economy and efficiency, 
are funded through negotiated agreements with Department 
operating administrations and other Federal customers, and are 
billed on a fee-for-service basis to the maximum extent 
possible.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $202,245,000 on 
activities financed through the Working Capital Fund. The 
recommended limit is $11,856,000 more than the limit enacted 
for fiscal year 2017, and equal to the budget request.
    As in past years, the bill specifies that the limitation on 
the Working Capital Fund shall apply only to the Department and 
not to services provided for other entities. The Committee 
directs services to be provided on a competitive basis to the 
maximum extent possible.
    The Committee notes that the ``transparency paper'' 
included in the justifications for fiscal year 2018 provides 
essential information on total budgetary resources for the 
Office of the Assistant Secretary for Administration and the 
Office of the Chief Information Officer, including the balance 
of resources provided through the Working Capital Fund and 
direct appropriations. Therefore, the Committee directs the 
Department to update this ``transparency paper'' and include it 
in the budget justifications for fiscal year 2019.

               MINORITY BUSINESS RESOURCE CENTER PROGRAM

------------------------------------------------------------------------
                                                           Limitation on
                                          Appropriations    guaranteed
                                                               loans
------------------------------------------------------------------------
Appropriations, 2017....................        $941,000     $18,367,000
Budget estimate, 2018...................         500,000  ..............
Committee recommendation................         941,000      18,367,000
------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The Minority Business Resource Center of the Office of 
Small and Disadvantaged Business Utilization and Outreach 
provides assistance in obtaining short-term working capital for 
disadvantaged, minority, and women-owned businesses. The 
program enables qualified businesses to obtain loans at prime 
interest rates for transportation-related projects. As required 
by the Federal Credit Reform Act of 1990, this account records 
the subsidy costs associated with guaranteed loans for this 
program as well as administrative expenses of this program.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $339,000 to 
cover the subsidy costs for guaranteed loans and $602,000 for 
administrative expenses to carry out the guaranteed loan 
program. These recommended levels provide a total funding level 
of $941,000 for the Minority Business Resource Center. This 
total funding level is $441,000 more than the budget request 
and equal to the fiscal year 2017 enacted level. The Committee 
also recommends a limitation on guaranteed loans of 
$18,367,000, equal to the fiscal year 2017 enacted level.

  OFFICE OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION AND OUTREACH

Appropriations, 2017....................................      $4,646,000
Budget estimate, 2018...................................       3,999,000
Committee recommendation................................       4,646,000

                          PROGRAM DESCRIPTION

    This appropriation provides contractual support to assist 
small, women-owned, Native American, and other disadvantaged 
business firms in securing contracts and subcontracts for 
transportation-related projects that involve Federal spending. 
Separate funding is provided for these activities since this 
program provides grants and contract assistance that serve 
Department-wide goals and not just OST purposes.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $4,646,000 for grants and 
contractual support, which is equal to the fiscal year 2017 
enacted level and $647,000 more than the budget request.

                        PAYMENTS TO AIR CARRIERS

                    (AIRPORT AND AIRWAY TRUST FUND)

                          PROGRAM DESCRIPTION

    This appropriation provides funding for the Essential Air 
Service [EAS] program, which was created to continue air 
service to communities that had received federally mandated air 
service prior to deregulation of commercial aviation in 1978. 
The program currently provides subsidies to air carriers 
serving small communities that meet certain criteria.
    The Federal Aviation Administration [FAA] collects user 
fees that cover the air traffic control services the agency 
provides to aircraft that neither take off from, nor land in, 
the United States. These fees are commonly referred to as 
``overflight fees'' and the receipts from the fees are used to 
help finance the EAS program.

                        COMMITTEE RECOMMENDATION

----------------------------------------------------------------------------------------------------------------
                                                                  Appropriations     Mandatory         Total
----------------------------------------------------------------------------------------------------------------
Appropriation, 2017.............................................    $150,000,000    $100,000,000    $250,000,000
Budget estimate, 2018...........................................  ..............     119,129,000     119,129,000
Committee recommendation........................................     155,000,000     119,129,000     274,129,000
----------------------------------------------------------------------------------------------------------------

    The Committee recommends an appropriation of $155,000,000 
for the EAS program. This appropriation would be in addition to 
an estimated $119,129,000 from overflight fees collected by the 
FAA, allowing the Department to support a total program level 
for EAS of $274,129,000. The Committee's recommendation for the 
appropriation is $155,000,000 more than the budget request and 
equal to the request for the overflight fees. The total program 
level under the Committee's recommendation is $8,000,000 less 
than the total program level enacted for fiscal year 2017.
    Proximity to the Nearest Hub Airport.--The Committee 
continues to include a provision that prohibits the Department 
from entering into a new contract with an EAS community located 
less than 40 miles from the nearest hub airport before the 
Secretary has negotiated with the community over a local cost 
share.
    Aircraft Size Requirement.--The Committee continues to 
include a provision that removes the requirement for 15-
passenger seat aircraft. This requirement adds to the cost of 
the EAS program because the fleet of 15-passenger seat aircraft 
continues to age and grow more difficult for airlines to 
maintain. The Committee, however, expects that the Department 
will use this flexibility judiciously. The Department should 
use it for communities where historical passenger levels 
indicate that smaller aircraft would still accommodate the 
great majority of passengers, or for communities where viable 
proposals for service are not available. The Committee does not 
expect the Department to use this flexibility simply to lower 
costs if a community can show regular enplanement levels that 
would justify larger aircraft.
    EAS Airports.--The Committee recognizes that seasonal 
airports may need to operate beyond current dates and therefore 
recommends that the FAA utilize existing budget authorities to 
ensure seasonal EAS airports are able to operate when airport 
resources and weather permit.
    Passenger Levels and Subsidy Rates.--The following table 
reflects the points in the continental United States currently 
receiving EAS service, their annual subsidy rates, and their 
level of subsidy per passenger.

                                   ESSENTIAL AIR SERVICE SUBSIDY PER PASSENGER
----------------------------------------------------------------------------------------------------------------
                                            Est. miles
                                            to nearest   Passenger    Annual subsidy   Subsidy per     Average
State            EAS communities            hub (S, M,  totals at 9/ rates at 9/30/16   passenger   enplanements
                                              or L)        30/16                        at 9/30/16     per day
----------------------------------------------------------------------------------------------------------------
  ALMuscle Shoals*                                60        7,164         1,739,712         $243          17.2
  AREl Dorado/Camden                             272        6,643         1,398,475          211          10.9
  ARHarrison                                     263        4,192         1,827,409          436           6.9
  ARHot Springs                                  300        4,296         1,377,628          321           7.1
  ARJonesboro                                    239        8,761         1,937,497          221          14.0
  AZPage                                         282        6,926         2,135,446          308          11.1
  AZPrescott                                     102        6,244         2,568,486          411          10.0
  AZShow Low                                     173        7,138         1,244,628          174          11.4
  CACrescent City                                314       17,616         3,480,340          198          28.1
  CAEl Centro*                                   114        5,687         1,311,518          231          14.0
  CAMerced                                       107       16,113         2,940,435          182          26.0
  COAlamosa                                      205        6,764         2,005,395          296          10.8
  COCortez                                       255        6,640         1,708,769          257          10.6
  COPueblo*                                      121        1,786           925,980          518           3.3
  GAMacon*                                        82          n/a               n/a          n/a           n/a
  IABurlington                                   188       12,801         2,218,424          173          20.4
  IAFort Dodge                                   156       13,240         3,724,020          281          21.2
  IAMason City                                   133       15,186         3,658,230          241          24.3
  IAWaterloo                                     189       50,456         1,317,334           26          80.6
  ILDecatur                                      126       15,518         2,852,426          184          24.8
  ILMarion/Herrin                                123       18,112         2,562,819          141          28.9
  ILQuincy/Hannibal, MO                          111       15,722         2,431,286          155          25.1
  KSDodge City                                   345        3,592         1,686,570          470           5.7
  KSGarden City                                  300       52,302         1,357,800           26          83.5
  KSHays                                         284       15,601         2,431,497          156          24.9
  KSLiberal/Guymon, OK                           356        4,119         1,629,380          396           6.6
  KSSalina*                                      186        3,227           762,982          236           8.8
  KYOwensboro                                    138        7,815         1,867,985          239          12.5
  KYPaducah                                      146       40,728         2,084,285           51          65.1
  MDHagerstown                                    78        7,469         1,797,260          241          11.9
  MEAugusta/Waterville                           168        9,936         1,880,045          189          15.9
  MEBar Harbor                                   256       16,070         1,987,057          124          25.7
  MEPresque Isle/Houlton                         358       24,325         4,738,805          195          38.9
  MERockland                                     177       14,097         1,967,434          140          22.5
  MIAlpena                                       236       17,615         2,157,184          122          28.1
  MIEscanaba                                     227       30,849         3,524,772          114          49.3
  MIHancock/Houghton                             334       49,101         1,279,498           26          78.4
  MIIron Mountain/Kingsford                      223       22,621         2,966,166          131          36.1
  MIIronwood/Ashland, WI                         213        9,697         3,551,742          366          15.5
  MIManistee/Ludington                           233        5,777         1,844,547          319           9.2
  MIMuskegon                                     165       33,491         2,054,099           61          53.5
  MIPellston                                     267       52,731         1,225,363           23          84.2
  MISault Ste. Marie                             347       41,631         1,905,822           46          66.5
  MNBemidji                                      213       47,919         1,217,620           25          76.5
  MNBrainerd                                     123       33,519         1,697,814           51          53.5
  MNChisholm/Hibbing                             199       25,127         2,671,234          106          40.1
  MNInternational Falls                          298       23,598         2,189,324           93          37.7
  MNThief River Falls                            305        4,321         2,176,866          504           7.3
  MOCape Girardeau/Sikeston                      127       10,524         1,975,944          188          16.8
  MOFort Leonard Wood                            136       15,353         2,752,753          179          24.5
  MOJoplin                                       167       57,079           516,880            9          91.2
  MOKirksville                                   154        9,583         1,623,392          169          15.3
  MSGreenville                                   279        7,943         1,896,237          239          14.2
  MSLaurel/Hattiesburg                           135       23,390         3,981,510          170          37.4
  MSMeridian                                     185       52,186         4,000,698           77          83.4
  MSTupelo*                                      204        5,576         2,158,222          387          16.3
  MTButte                                        415       50,609           867,213           17          80.8
  MTGlasgow                                      709        6,471         2,030,855          314          10.3
  MTGlendive                                     607        5,212         1,871,294          359           8.3
  MTHavre                                        668        4,609         1,965,803          427           7.4
  MTSidney                                       658       16,326         3,445,646          211          26.1
  MTWest Yellowstone                             332       17,019           500,764           29          69.8
  MTWolf Point                                   686        7,090         2,171,235          306          11.3
  NDDevils Lake                                  402       14,207         3,320,989          234          22.7
  NDDickinson**                                  528          n/a               n/a          n/a           n/a
  NDJamestown                                    333       20,208         3,028,225          150          32.3
  NEAlliance                                     233        4,010         2,117,500          528           6.4
  NEChadron                                      290        8,213         2,169,234          264          13.1
  NEGrand Island                                 138       52,633         1,277,388           24          84.1
  NEKearney                                      181        7,735         1,643,804          213          12.4
  NEMcCook                                       256        2,076         1,616,134          778           3.3
  NENorth Platte                                 255        6,893         1,632,000          237          11.0
  NEScottsbluff                                  192        5,856         1,564,931          267           9.4
  NHLebanon/White River Junction, VT             124       19,380         3,104,143          160          31.0
  NMCarlsbad                                     280        5,752         2,469,663          429           9.2
  NMClovis                                       233        9,098         3,240,470          356          14.5
  NMSilver City/Hurley/Deming                    229       10,099         3,412,480          338          16.1
  NYJamestown (NY)                                76        3,537         2,027,122          573           5.7
  NYMassena                                      256       10,554         2,698,608          256          16.9
  NYOgdensburg                                   223        8,233         2,266,928          275          13.2
  NYPlattsburgh                                  243       13,432         2,857,971          213          21.5
  NYSaranac Lake/Lake Placid                     233        9,547         1,835,962          192          15.3
  NYWatertown (NY)                               172       33,294         2,314,505           70          53.2
  ORPendleton*                                   205        6,969         1,659,090          238          11.5
  PAAltoona                                      112        3,693         2,371,850          642           5.9
  PABradford                                      77        6,068         2,082,430          343           9.7
  PADuBois                                       112        5,463         2,252,184          412           8.7
  PAFranklin/Oil City                             85        3,657         1,547,632          423           5.8
  PAJohnstown                                     84        8,516         2,396,358          281          13.6
  PALancaster                                     86        6,633         2,512,692          379          10.6
  PRMayaguez                                     105       10,411         1,288,357          124          16.6
  SDAberdeen                                     270       52,742         1,054,369           20          84.3
  SDPierre                                       394        5,627           606,636          108          70.3
  SDWatertown (SD)                               207        1,575           304,220          193          19.7
  TNJackson                                      137        6,457         2,054,950          318          10.3
  TXVictoria                                     119        3,761         2,053,469          546           6.0
  UTCedar City                                   179       26,891         2,610,261           97          43.0
  UTMoab                                         256        5,124         2,211,169          432          16.2
  UTVernal*                                      150        4,750         1,583,235          333          15.0
  VAStaunton                                     134       10,512         1,891,380          180          16.8
  VTRutland                                      134       10,244         1,355,583          132          16.4
  WIEau Claire                                    92       36,400         1,988,732           55          58.1
  WIRhinelander                                  216       43,046         2,083,650           48          68.8
  WVBeckley                                      211        4,127         2,471,805          599           6.6
  WVClarksburg/Fairmont                           96        9,041         2,305,224          255          14.4
  WVGreenbrier/White Sulphur Springs             230        9,023         3,507,888          389          14.4
  WVMorgantown                                    75       15,009         2,342,555          156          24.0
  WVParkersburg/Marietta, OH                     110        8,434         3,420,872          406          13.5
  WYCody                                         449       49,060         1,085,268           22          78.4
  WYLaramie                                      145       29,263         2,046,800           70          46.7
----------------------------------------------------------------------------------------------------------------
    *Indicates the community experienced a sevice hiatus. Days of service reduced accordingly to calculate
      enplanements per day.
    **Dickinson received subsidized service for three days of fiscal year 2016, starting September 28, 2016.
    ***Diomede is not an EAS community, but it is covered under ATNEP 49 U.S.C. 41736.
    Alaska and Hawaii are not subject to any per passenger subsidy caps or required to enplane a minimum level
      of passengers.

  ADMINISTRATIVE PROVISIONS--OFFICE OF THE SECRETARY OF TRANSPORTATION

    Section 101 prohibits the Office of the Secretary of 
Transportation from obligating funds originally provided to a 
modal administration in order to approve assessments or 
reimbursable agreements, unless the Department follows the 
regular process for the reprogramming of funds, including 
congressional notification.
    Section 102 allows the Department of Transportation to make 
use of the Working Capital Fund in providing transit benefits 
to Federal employees.
    Section 103 places simple administrative requirements on 
the Department of Transportation's Council on Credit and 
Finance. These requirements include posting a schedule of 
meetings on the DOT Web site, posting the meeting agendas on 
the Web site, and recording the minutes of each meeting.
    Section 104 extends transfer authority originally provided 
in the FAST Act for the Bureau, which expires in December 2017. 
The language also allows the Bureau to transfer funds back to 
any applicable entity who had funds transferred to the Bureau.
    Section 105 allows fees collected through the RRIF program 
to be deposited directly into an Office of the Secretary 
account so it can be used by the Bureau once fully 
consolidated. Currently, the fees can only be deposited into a 
Federal Railroad Administration account.
    Section 106 lifts the suspension of a consumer rulemaking 
and requires the Department to set a new deadline for 
additional public comment within 30 days of enactment of this 
act.

                    Federal Aviation Administration


                          PROGRAM DESCRIPTION

    The Federal Aviation Administration is responsible for the 
safe movement of civil aviation and the evolution of a national 
system of airports. The Federal Government's regulatory role in 
civil aviation began with the creation of an Aeronautics Branch 
within the Department of Commerce pursuant to the Air Commerce 
Act of 1926. This act instructed the agency to foster air 
commerce; designate and establish airways; establish, operate, 
and maintain aids to navigation; arrange for research and 
development to improve such aids; issue airworthiness 
certificates for aircraft and major aircraft components; and 
investigate civil aviation accidents. In the Civil Aeronautics 
Act of 1938, these activities were transferred to a new, 
independent agency named the Civil Aeronautics Authority. 
Congress streamlined regulatory oversight in 1957 with the 
creation of two separate agencies, the Federal Aviation Agency 
and the Civil Aeronautics Board. When DOT began its operations 
in 1967, the Federal Aviation Agency was renamed the Federal 
Aviation Administration [FAA] and became one of several modal 
administrations within DOT. The Civil Aeronautics Board was 
later phased out with enactment of the Airline Deregulation Act 
of 1978, and ceased to exist in 1984. Responsibility for the 
investigation of civil aviation accidents was given to the 
National Transportation Safety Board in 1967. FAA's mission 
expanded in 1995 with the transfer of the Office of Commercial 
Space Transportation from the Office of the Secretary, and 
decreased in December 2001 with the transfer of civil aviation 
security activities to the Transportation Security 
Administration.

                        COMMITTEE RECOMMENDATION

    The total recommended funding level for the FAA for fiscal 
year 2018 amounts to $16,970,000,000 including new budget 
authority and a limitation on the obligation of contract 
authority. This funding level is $844,114,000 more than the 
budget request and $562,648,000 more than the fiscal year 2017 
enacted level.
    The following table summarizes the Committee's 
recommendations for fiscal year 2018 in comparison to the 
budget request and the fiscal year 2017 enacted level:

----------------------------------------------------------------------------------------------------------------
                                                                     Fiscal year--
                                                        --------------------------------------     Committee
                                                            2017 enacted      2018 estimate      recommendation
----------------------------------------------------------------------------------------------------------------
Operations.............................................    $10,025,852,000     $9,890,886,000    $10,186,000,000
Facilities and equipment...............................      2,855,000,000      2,735,000,000      3,005,000,000
Research, engineering, and development.................        176,500,000        150,000,000        179,000,000
Grants-in-aid to airports (obligation limitation)......      3,350,000,000      3,350,000,000      3,600,000,000
Rescissions............................................  .................  .................  .................
                                                        --------------------------------------------------------
      Total............................................     16,407,352,000     16,125,886,000     16,970,000,000
----------------------------------------------------------------------------------------------------------------

                               OPERATIONS

Appropriations, 2017.................................... $10,025,852,000
Budget estimate, 2018...................................   9,890,886,000
Committee recommendation................................  10,186,000,000

                          PROGRAM DESCRIPTION

    This appropriation provides funds for the operation, 
maintenance, communications, and logistical support of the air 
traffic control and air navigation systems. It also covers 
administrative and managerial costs for the FAA's regulatory, 
international, commercial space, medical, research, engineering 
and development programs, as well as policy oversight and 
agency management functions. The Operations appropriation 
includes the following major activities:
  --the Air Traffic Organization which operates, on a 24-hour 
        daily basis, the national air traffic system, including 
        the establishment and maintenance of a national system 
        of aids to navigation, the development and distribution 
        of aeronautical charts and the administration of 
        acquisition, and research and development programs;
  --the regulation and certification activities, including 
        establishment and surveillance of civil air regulations 
        to ensure safety and development of standards, rules 
        and regulations governing the physical fitness of 
        airmen, as well as the administration of an Aviation 
        Medical Research Program;
  --the Office of Commercial Space Transportation; and
  --headquarters and support offices.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $10,186,000,000 for FAA 
Operations. This funding level is $295,114,000 more than the 
budget request, and $160,148,000 more than the fiscal year 2017 
enacted level. The Committee recommendation derives 
$8,947,000,000 of the appropriation from the Airport and Airway 
Trust Fund. The balance of the appropriation will be drawn from 
the General Fund of the Treasury.
    As in past years, the FAA is directed to report immediately 
to the House and Senate Committees on Appropriations in the 
event resources are insufficient to operate a safe and 
effective air traffic control system.
    The following table summarizes the Committee's 
recommendation in comparison to the budget estimate and fiscal 
year 2017 enacted level:

                                                 FAA OPERATIONS
----------------------------------------------------------------------------------------------------------------
                                                                     Fiscal year--
                                                        --------------------------------------     Committee
                                                            2017 enacted      2018 estimate      recommendation
----------------------------------------------------------------------------------------------------------------
Air traffic organization...............................     $7,559,785,000     $7,491,938,000     $7,692,032,000
Aviation safety........................................      1,298,482,000      1,257,981,000      1,310,000,000
Commercial space transportation........................         19,826,000         17,905,000         21,587,000
Finance and Management.................................        771,342,000        758,192,000        777,506,000
NextGen Operations and Planning........................         60,155,000         59,041,000         60,000,000
Security and hazardous materials safety................        107,161,000        100,961,000        112,622,000
Staff offices..........................................        209,101,000        204,868,000        212,253,000
                                                        --------------------------------------------------------
      Total............................................     10,025,852,000      9,890,886,000     10,186,000,000
----------------------------------------------------------------------------------------------------------------

    Air Traffic Control Privatization.--The United States has 
the largest, safest, most efficient and most complex air 
traffic control system in the world, and the FAA should remain 
a global leader with a singular and unified mission of safety. 
The Committee does not support the Administration's request to 
transfer the FAA's air traffic functions to a not-for-profit, 
independent, private corporation. The Committee makes this 
determination on several grounds.
    First, the rigorous and yearly oversight of the budget and 
programs of the FAA is necessary to ensure the transparency and 
integrity of the public's investment in the air traffic control 
system. The proposed shift does not serve the public interest 
and would only create a new bureaucracy that is unaccountable 
to the public and the communities surrounding our network of 
airports.
    Second, the FAA continues to upgrade the air traffic 
control system through NextGen's development of advanced 
procedures, technologies and tools that allow commercial 
airlines to safely and efficiently carry more passengers and 
cargo, while burning less fuel and producing fewer emissions. 
The NextGen Advisory Committee has provided increased input 
from aviation stakeholders and has been an effective tool in 
advancing NextGen priorities through public-private 
collaboration. Through 2016, airspace improvements have 
provided $2,720,000,000 in savings and are projected to provide 
more than $160,000,000,000 through 2030, at a cost of 
$35,000,000,000 to the FAA and stakeholders. Further, programs 
such as data communications are well ahead of schedule. 
However, the budget request, with its privatization proposal, 
will only serve to delay the progress that has already been 
made. The Committee does not agree that a major shift in 
governance is necessary for continued progress and would only 
undermine and delay the modernization effort that is currently 
underway.
    Third, the removal of the air traffic organization [ATO] 
would disrupt the important and seamless collaboration that 
occurs among ATO, the FAA's office of aviation safety and other 
government agencies that rely on the national airspace system. 
For example, the GAO noted in an October, 2016, report that 
the, ``FAA provides and receives critical information and 
analysis throughout the intelligence, defense and law 
enforcement communities,'' which are used to identify 
terrorism, counterintelligence and cyber security threats. 
Maintaining active coordination is key to the security of the 
U.S. airspace.
    Fourth, the Committee is greatly concerned about the 
potential impact a privatized air traffic control system would 
have on small communities. The FAA's longstanding role has been 
to ensure that the national airspace system provides equal 
access to all users--from commercial airlines traveling between 
large hubs to the small businesses that utilize the network of 
remote general aviation airports. The Committee is not 
convinced that the proposed governing board or the so-called 
``protections on access'' will protect the universal access 
that has been the hallmark of our large and diverse aviation 
system.
    The Committee acknowledges that there is room for 
improvement in our air traffic control system and welcomes 
constructive solutions to identified problems. The Committee 
has provided the FAA with multi-year funding and increased 
transfer authority to better manage the transition between 
budget years. The Committee will continue to work with the 
authorizing committees to advance our mutual interest in 
ensuring that the United States has the best aviation system in 
the world 5, 10, and 20 years from now.
    Funding Availability and Transfer Authority.--The bill 
provides 2-year funding availability for the entire operations 
account. This funding flexibility is provided to enhance 
assurance of continuity of air traffic operations during the 
annual transition from one fiscal year to the next. In 
addition, the bill includes funding transfer authority of 5 
percent among the activities in this account. This transfer 
authority is provided to meet emerging requirements as FAA 
works to accelerate the modernization of the Nation's air 
traffic control system.
    Contract Towers.--The Committee recommendation provides not 
less than $162,000,000 for the contract tower program, 
including the cost-share contract towers, which is $3,000,000 
above the fiscal year 2017 enacted level. Contract towers serve 
as vital public safety and economic development assets to 
hundreds of communities. Municipalities depend on the contract 
tower program to provide commercial and general aviation 
services, jobs, and public safety, such as air ambulance 
services. The Committee continues to express strong support for 
the FAA contract tower program as a cost-effective and 
efficient way to provide air traffic control services to 
smaller airports across the country, as validated by numerous 
audits of the Department of Transportation Office of Inspector 
General. In an effort to increase air traffic safety benefits 
throughout the national air transportation system, the 
Committee has provided dedicated funding over the past few 
years to add qualified airports annually to the program. For 
fiscal year 2018, the Committee expects FAA to continue to 
operate the 253 contract towers currently in the program, 
including the contract tower cost share program, as well as add 
in an expeditious manner qualified airports eligible to enter 
the program and any other airport that may qualify during the 
fiscal year. FAA is directed to provide the House and Senate 
Committees on Appropriations with a plan for beginning 
operations at qualified towers during the fiscal year and a 
detailed report on the administrative and program management 
expenses for the program since fiscal year 2013 not later than 
90 days from enactment of this act.
    Current law limits contributions by airports in the 
contract tower cost share program to 20 percent of total costs. 
The contract tower program continues to serve as a highly 
successful model for cost-effective government and industry 
partnerships in the aviation industry. The agency-imposed 2014 
moratorium on calculating contract tower benefit/cost [b/c] 
analysis on applicable non-towered airports, non-Federal 
towers, and cost-share contract tower airports was lifted by 
statutory language in the fiscal year 2017 omnibus 
appropriations law. As such, the Committee expects the agency 
to work collaboratively and in partnership with airports and 
industry stakeholders on a fair and balanced approach to the b/
c analysis that focuses on enhancing air traffic safety and 
efficiency at appropriate airports.
    Radar Approach Control.--The Committee finds that radar 
approach control enhances aviation safety and efficiency for 
regularly scheduled commercial airline service. The Committee, 
therefore, recommends that the FAA utilize existing budget 
authorities to promptly provide radar to all FAA ``Type 4'' air 
traffic control towers.
    Aircraft Certification.--The Committee continues to support 
modernizing and streamlining FAA certification processes. The 
Committee has consistently urged FAA to move forward with 
certification reforms to better leverage certification 
resources and strengthen safety oversight. Full utilization of 
organization designation authorizations [ODAs] is key to 
improving the effectiveness and efficiency of product 
certification. The Committee directs FAA to continue to work 
with industry on realizing this goal. In particular, with funds 
under the act, the FAA shall ensure that an ODA can conduct all 
specified activities authorized and approved by FAA in their 
procedures manual. Additionally, the Committee directs that the 
FAA, at the request of an ODA, conduct a review of ODA 
limitations and remove limitations that FAA determines, through 
risk analysis, are associated with low and medium risk 
activities. These efforts shall include all FAA field office 
activities for the type certification and delivery of new 
aircraft including Aircraft Certification Office, Aircraft 
Evaluation Group and Manufacturing Inspection District Offices. 
We also note the FAA's plan to expand the ODA performance 
scorecard to all ODAs nationally and believe this must be 
aligned with objectives to facilitate full utilization of ODAs 
by all FAA offices.
    International Aviation Safety Cooperation.--The Committee 
commends the FAA for continuing to strengthen international 
aviation safety cooperation and improve the flow of aviation 
products globally through strategic engagement with the 
European Aviation Safety Agency, Transport Canada Civil 
Aviation, and National Civil Aviation Agency of Brazil. These 
activities will result in streamlined validation and acceptance 
of type certificates and approvals among these authorities. 
With the funds provided, the Committee directs the FAA to 
ensure that the efficiency of foreign validations are 
consistent with the terms of the Bilateral Agreement and to 
assist U.S. companies that experience significant delays.
    Safety, Security and Infrastructure.--After the fire at the 
Chicago Air Route Traffic Control Center [ZAU] on September 26, 
2014, FAA con- ducted a comprehensive security review, which 
resulted in identifying 42 recommendations, of which 24 of them 
were deemed significant to improve safety. The funding provided 
will support activities recommended for implementation of 
facility security, personnel security, and the insider threat 
program necessary to improve the security and support 
resiliency of FAA critical operations.
    The Committee expects FAA's continued commitment toward re- 
storing operations immediately following an emergency 
situation, while improving the physical and personnel security 
to ensure air traffic is not brought to a halt, similar to what 
occurred at ZAU.
    Aeronautical Navigation Products.--The Committee remains 
concerned about Aeronautical Navigation Products' [AeroNav] 
plans to impose a per person charge and erect a digital 
copyright on digital products produced by the FAA for the 
public benefit. The FAA has previously made these products 
available for download from its Web site without charge. The 
Committee is concerned that the proposed scheme will be used to 
support the declining paper chart services by charging those 
that are moving to a digital format. In contrast to AeroNav's 
efforts, Executive Order 13642 was issued on May 14, 2013, to 
make government data available to foster entrepreneurship and 
innovation. This order builds on another order issued in 2012 
to open up government systems with public interfaces for 
commercial application providers. With these concerns in mind, 
the Committee continues to include bill language that prohibits 
AeroNav from implementing new charges on AeroNav products until 
the FAA provides the House and Senate Committees on 
Appropriations a report that describes: (1) the estimated cost 
of producing only its digital products, on a product-by-product 
basis (for example, delineating costs for electronic navigation 
charts and vector charts separately), for use on computers, 
tablets, and other displays; (2) the cost of producing both 
digital products and paper products, on a product-by-product 
basis; (3) safety and operational benefits of using digital 
products; and (4) how AeroNav's actions conflict with the 
direction in Executive Order 13642 to support open data for 
entrepreneurship, innovation, and scientific discovery.
    Human Intervention Motivation Study.--The Committee 
recognizes the effectiveness of the Human Intervention 
Motivation Study and the Flight Attendant Drug and Alcohol 
Program in mitigating drug and alcohol abuse through a peer 
identification and intervention program. The Committee 
recommends the FAA continue to prioritize this program and use 
existing resources made available within Operations to support 
this program.
    FAA Public Hearing.--The Committee remains concerned with 
the proposed modifications to the Condor 1 and Condor 2 
military operating areas and encourages the FAA to continue 
working with its partner agencies by holding a public hearing 
with representatives from the relevant Federal agencies in 
western Maine upon completion of the Air National Guard's 
environmental impact statement [EIS] and the record of 
decision. The Committee recognizes that the Air National Guard, 
as the lead agency under the NEPA process, has sought to meet 
the minimum legal requirements for public participation and 
comment. However, the Committee remains troubled with how the 
authorization of low-altitude military training in the proposed 
airspace would affect areas that significantly contribute to 
the local economy and areas that are culturally and 
environmentally sensitive. Furthermore, the Committee notes the 
FAA is the only Federal agency that can modify special airspace 
and that the FAA may adopt the Air National Guard's EIS in 
whole, or in part, once the Final EIS has been issued. In 
addition, the Committee directs the FAA to report to the House 
and Senate Committees on Appropriations prior to the issuance 
of a record of decision regarding the modification of the 
Condor 1 and Condor 2 military operations areas that includes a 
summary of any public meeting and hearing and a list of the 
comments, questions, and responses presented at these meetings 
and hearings.
    Air Traffic Controller Hiring Data.--In fiscal year 2014, 
the FAA embarked on an open hiring process for air traffic 
controllers. This hiring process, with this Committee's 
support, brought in a diverse class of prospective controllers 
from previously underrepresented groups at the FAA. The ATC 
training program is rigorous and there is a significant amount 
of attrition as trainees advance through the process. The 
Committee directs the FAA to report to the House and Senate 
Committees on Appropriations data detailing the level of 
attrition through the training process by both gender and race 
and national origin within 45 days of enactment of this act.
    Unmanned Aircraft Systems [UAS]--Broadcast Media.--The 
Committee urges the FAA to consider the important public 
interest role of credentialed newsgatherers in disseminating 
critical information to the public following major news events 
and natural disasters. The Committee further urges the FAA to 
immediately establish procedures to enable credentialed news 
and broadcast media, in coordination with public safety 
officials and Air Traffic Control, if necessary, to use UAS to 
gather images and information and to inform the public and 
disseminate information during and following emergencies and 
natural disasters, including at night, over people and beyond 
the line of sight of the UAS operator.
    Unmanned Aircraft Systems--Electronic Registration.--The 
Committee supports the FAA's electronic registration system to 
register UAS, as opposed to the current paper-based FAA 
Aircraft Registry system for manned aircraft. The Committee 
believes that online, interactive education program links on 
the electronic registration process would provide the education 
necessary to reduce the risk of unknowing or negligent mistakes 
by recreational operators of small unmanned aircraft thus 
promoting aviation safety. Therefore, the Committee directs the 
FAA to include in its electronic registration system for 
recreational operators a link for registrants to undergo a 
suitable and interactive online education and training program. 
The Committee also directs the FAA to report to the House and 
Senate Committees on Appropriations on the implementation of 
such online interactive training for registrants, including the 
number of registrants who have attempted and completed the 
training course, and recommendations for any improvements or 
changes to this system within 120 days of enactment of this 
act. Further, the Committee recommends the FAA to develop an 
online aeronautical knowledge test in order to obtain remote 
pilot certificates and report to the House and Senate 
Committees on Appropriations within 120 days of enactment of 
this act.
    Unmanned Aircraft Systems Field Testing.--The Committee 
directs the FAA to clarify the regulations governing UAS and 
consider utilizing airspace in rural and geographically 
challenging areas to conduct field testing.
    Landing Strips.--The Committee finds that backcountry 
landing strips on Federal lands are important assets to the 
national aviation infrastructure. The Committee recommends the 
FAA assist Federal Land Managers, including but not limited to 
the Bureau of Land Management, United States Forest Service, 
and National Park Service in charting airstrips located on 
Federal Lands that are and may be useful for administrative, 
recreational, and emergency purposes.
    Contract Weather Observers.--The FAA's Contract Weather Ob- 
server [CWO] program provides operationally significant weather 
information and support to the entire aviation community. CWO 
safety professionals observe and report operationally 
significant weather conditions at airports across the country. 
These trained specialists augment the Automated Surface 
Observing System [ASOS], which detects and reports basic 
weather information for aviation and forecasting. The Committee 
continues to have serious concerns about the FAA's proposal to 
eliminate the CWO program. Air traffic controllers perform a 
critical role, managing separation of aircraft, and are 
required to remain inside of their towers. By law, weather 
observing would be their lowest priority duty. Adding this 
responsibility to the other important duties of air traffic 
controllers would seriously degrade the speed and accuracy of 
operationally-significant weather observations and reduce air 
traffic control coverage, particularly at a time when air 
traffic controller staffing shortages are a continuing issue 
for the FAA. The Committee therefore rejects the budget request 
to eliminate the CWO program.
    Medical Kits.--The Committee directs the FAA to undertake a 
rulemaking to evaluate and revise the regulations under part 
121 of title 14, Code of Federal Regulations, regarding the 
emergency medical requirements, including the contents of the 
first-aid kit, applicable to all certificate holders operating 
passenger-carrying airplanes under that party. In conducting 
this rulemaking, the Administrator should consider whether the 
minimum contents of approved emergency medical kits, including 
approved first-aid kits, include appropriate medications and 
equipment to meet the emergency medical needs of children.
    Aviation Events.--The Committee directs FAA to use existing 
resources to provide air traffic control and safety support 
services at major aviation events hosted annually for the 
general aviation community. The Committee recognizes that these 
services are paid for using the aviation fuel tax excise 
collected from general aviation users. Recognizing continual 
funding constraints, the Committee instructs the FAA to utilize 
appropriate resources to maintain the safe and efficient 
movement of aircraft based on projected airspace congestion at 
major aviation events.
    Space Launch System.--The Committee commends the FAA Office 
of Commercial Space Transportation's efforts to promote private 
sector lunar exploration and development. The Committee 
encourages the FAA to explicitly define non-interference and to 
enhance its payload review process to provide companies 
planning private sector lunar development with the security and 
predictability necessary to support substantial investments. 
The Committee also encourages the office, in collaboration with 
the Commercial Space Transportation Advisory Committee, to 
engage in conversation with National Aeronautics and Space 
Administration [NASA] to explore the lift power and capacity of 
the Space Launch System [SLS] as a means of facilitating 
commercial-space efforts, in accordance with the Commercial 
Space Launch Act, in which the SLS sometimes serves in an 
infrastructure-building role to speed the transport of large-
volume payloads and non-profit or cost-sharing payloads, and 
payloads benefit from being launched into lunar orbit together.
    Commercial Space.--The FAA is directed to provide a report 
on the findings regarding a June 2015 catastrophic launch 
failure by a commercial launch provider, which destroyed 
$118,000,000 worth of cargo while under contract with NASA to 
transport such cargo to the International Space Station. The 
report must consolidate all relevant investigations by, or at 
the request of, the Federal Government that were conducted, 
including those completed by NASA as part of the FAA report, 
and must also include a summary suitable for public disclosure. 
The Committee directs the FAA to submit its report to the House 
and Senate Committees on Appropriations within 30 days of 
enactment of this act.
    Incident Reporting Data.--The Committee notes neither the 
FAA nor the NTSB segments collection of safety data, making it 
difficult to accurately measure data and trends of the wide 
range aircraft types and operations within the on-demand air 
charter community. The Committee directs the FAA to work with 
the NTSB and industry stakeholders to determine what additional 
data points are appropriate to collect and report to the House 
and Senate Committees on Appropriations within 180 days of 
enactment of this act.
    Noise and Community Outreach.--The Committee appreciates 
additional measures the FAA is taking to enhance outreach to 
communities affected by new flightpaths. The Committee 
encourages the FAA to improve the development of flight 
procedures in ways that will give fair consideration to public 
comment and reduce noise through procedure modification and 
dispersion to reduce the impact on local communities. The FAA 
should focus on methods that can produce measurable results. 
The FAA should give high priority to evaluating where increased 
noise levels disrupts homes and businesses, and threatens 
public health, and should provide all necessary resources to 
regional offices to work with local communities to meet this 
objective.
    Electronic Guidance Library.--The top recommendation of the 
FAA's Consistency of Regulatory Interpretation Aviation 
Rulemaking Committee was to create a single master source for 
guidance to provide a ``one-stop'' shop for obtaining the 
agency's current policies. As the agency moves forward, the 
Committee expects this to include an electronic library, a 
process to review and eliminate outdated or conflicting 
material on both a current and on-going basis, and directs the 
FAA to complete its work within 180 days of enactment of this 
act.

                        FACILITIES AND EQUIPMENT

                    (AIRPORT AND AIRWAY TRUST FUND)

Appropriations, 2017....................................  $2,855,000,000
Budget estimate, 2018...................................   2,766,200,000
Committee recommendation................................   3,005,000,000

                          PROGRAM DESCRIPTION

    The Facilities and Equipment appropriation provides funding 
for modernizing and improving air traffic control and airway 
facilities, equipment, and systems. The appropriation also 
finances major capital investments required by other agency 
programs, experimental research and development facilities, and 
other improvements to enhance the safety and capacity of the 
National Airspace System [NAS]. The program aims to keep pace 
with the increasing demands of aeronautical activity and remain 
in accordance with the FAA comprehensive 5-year capital 
investment plan [CIP].

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $3,005,000,000 
for the Facilities and Equipment account of the FAA. The 
recommended level is $238,800,000 more than the budget request 
and $150,000,000 above the fiscal year 2017 enacted level. The 
Committee rejects the request to rescind $31,200,000 for new 
construction.
    Budget Activities Format.--The Committee directs that the 
fiscal year 2019 budget request for the Facilities and 
Equipment account conform to the same organizational structure 
of budget activities as displayed below.
    The following table shows the Committee's recommended 
distribution of funds for each of the budget activities funded 
by this appropriation and by resources provided under Grants-
in-Aid to Airports:

                                            FACILITIES AND EQUIPMENT
----------------------------------------------------------------------------------------------------------------
                                                                     Fiscal year--
                                                        --------------------------------------     Committee
                                                            2017 enacted      2018 estimate      recommendation
----------------------------------------------------------------------------------------------------------------
Activity 1--Engineering, Development, Test and
 Evaluation
    Advanced Technology Development and Prototyping....        $24,800,000        $26,800,000        $26,800,000
    William J. Hughes Technical Center Laboratory                1,000,000          1,000,000          1,000,000
     Improvement.......................................
    William J. Hughes Technical Center Laboratory               19,000,000         18,000,000         18,000,000
     Sustainment.......................................
    William J. Hughes Technical Center Infrastructure           12,200,000         10,000,000         15,000,000
     Sustainment.......................................
    Separation Management Portfolio....................         32,800,000         13,500,000         13,500,000
    Traffic Flow Management Portfolio..................  .................         10,800,000         10,800,000
    Improved Surface Portfolio.........................          2,000,000  .................  .................
    On Demand NAS Portfolio............................         11,500,000         12,000,000         12,000,000
    Environment Portfolio..............................  .................  .................  .................
    Improved Multiple Runway Operations Portfolio......          6,500,000  .................  .................
    NAS Infrastructure Portfolio.......................         17,660,000         17,500,000         17,500,000
    NextGen Support Portfolio..........................         12,000,000         12,000,000         12,000,000
    Performance Based Navigation & Metroplex Portfolio.         17,500,000  .................  .................
    Unmanned Aircraft Systems [UAS]....................  .................         15,000,000         25,000,000
    Enterprise, Concept Development, Human Factors, &    .................          9,000,000          9,000,000
     Demonstrations Portfolio..........................
                                                        --------------------------------------------------------
      Total Activity 1.................................        156,960,000        145,600,000        160,600,000
 
Activity 2--Air Traffic Control Facilities and
 Equipment:
 
a. En Route Programs:
    En Route Automation Modernization [ERAM]--System            78,000,000         76,650,000         91,650,000
     Enhancements and Tech Refresh.....................
    En Route Communications Gateway [ECG]..............          2,650,000          2,650,000          2,650,000
    Next Generation Weather Radar [NEXRAD]--Provide....          6,300,000          5,500,000          5,500,000
    Air Route Traffic Control Center [ARTCC] & Combined         74,870,000        100,400,000        120,400,000
     Control Facility [CCF] Building Improvements......
    Air Traffic Management [ATM].......................         20,000,000          4,900,000          4,900,000
    Air/Ground Communications Infrastructure...........          8,750,000          9,750,000          9,750,000
    Air Traffic Control En Route Radar Facilities                5,800,000          5,400,000          5,400,000
     Improvements......................................
    Voice Switching and Control System [VSCS]..........         11,300,000         12,800,000         12,800,000
    Oceanic Automation System..........................         24,000,000         23,100,000         34,950,000
    Next Generation Very High Frequency Air/Ground              50,500,000         53,000,000         60,000,000
     Communications [NEXCOM]...........................
    System-Wide Information Management.................         43,800,000         50,050,000         50,050,000
    ADS -B NAS Wide Implementation.....................        154,800,000        139,150,000        150,300,000
    Windshear Detection Service........................          4,500,000          1,000,000          1,000,000
    Collaborative Air Traffic Management Technologies..         13,820,000          9,000,000          9,000,000
    Time Based Flow Management Portfolio...............         50,600,000         40,450,000         40,450,000
    ATC Beacon Interrogator [ATCBI]--Sustainment.......          1,000,000  .................  .................
    NextGen Weather Processors.........................         27,800,000         35,450,000         35,450,000
    Airborne Collision Avoidance System X [ACASX]......          8,900,000          7,700,000          7,700,000
    Data Communications in Support of NG Air                   232,000,000        154,100,000        178,100,000
     Transportation System.............................
    Non-Continental United States [Non-CONUS]                    3,000,000         11,000,000         11,000,000
     Automation........................................
    Reduced Oceanic Separation.........................  .................          4,350,000         24,350,000
    En Route Service Improvements......................  .................          3,000,000          3,000,000
    Commercial Space Integration.......................  .................          4,500,000          4,500,000
                                                        --------------------------------------------------------
      Subtotal En Route Programs.......................        822,390,000        753,900,000        862,900,000
 
b. Terminal Programs:
    Airport Surface Detection Equipment--Model X [ASDE-          8,400,000  .................  .................
     X]................................................
    Terminal Doppler Weather Radar [TDWR]--Provide.....          5,000,000          3,800,000          3,800,000
    Standard Terminal Automation Replacement System             64,200,000         86,700,000         86,700,000
     [STARS] (TAMR Phase 1)............................
    Terminal Automation Modernization/Replacement              108,900,000         66,100,000         66,100,000
     Program (TAMR Phase 3)............................
    Terminal Automation Program........................          7,700,000          8,493,000          8,493,000
    Terminal Air Traffic Control Facilities--Replace...         58,800,000         31,118.485         58,118.485
    ATCT/Terminal Radar Approach Control [TRACON]               47,720,000         56,800,000         61,800,000
     Facilities--Improve...............................
    Terminal Voice Switch Replacement [TVSR]...........          6,000,000          6,000,000          6,000,000
    NAS Facilities OSHA and Environmental Standards             42,700,000         46,700,000         46,700,000
     Compliance........................................
    Airport Surveillance Radar [ASR-9].................          4,500,000         11,400,000         11,400,000
    Terminal Digital Radar [ASR-11] Technology Refresh           6,100,000          3,200,000          3,200,000
     and Mobile Airport Surveillance Radar [MASR]......
    Runway Status Lights...............................          4,800,000          2,800,000          2,800,000
    National Airspace System Voice System [NVS]........         48,400,000         68,750,000         68,750,000
    Integrated Display System [IDS]....................          7,700,000          5,000,000          5,000,000
    Remote Monitoring and Logging System [RMLS]........          9,900,000          7,400,000          7,400,000
    Mode S Service Life Extension Program [SLEP].......         37,900,000         20,900,000         20,900,000
    Surveillance Interface Modernization...............         21,800,000  .................  .................
    Terminal Flight Data Manager [TFDM]................         42,200,000         90,350,000         90,350,000
    National Air Space [NAS] Voice Recorder Program              2,000,000          5,000,000          5,000,000
     [NVRP]............................................
    Integrated Terminal Weather System [ITWS]..........          1,000,000          1,000,000          1,000,000
    Next Generation: Surveillance and Weather Radar              6,000,000  .................  .................
     Capability & Back-up Surveillance Capability......
    Flight and Interfacility Data Interface [FIDI]              13,000,000  .................  .................
     Modernization.....................................
    Performance Based Navigation & Metroplex Portfolio.  .................         20,000,000         20,000,000
                                                        --------------------------------------------------------
      Subtotal Terminal Programs.......................        554,720,000        541,511.485        573,511.485
 
c. Flight Service Programs
    Aviation Surface Observation System [ASOS].........         10,000,000         10,000,000         10,000,000
    Future Flight Services Program.....................          3,000,000         14,038.515         14,038.515
    Alaska Flight Service Facility Modernization                 2,650,000          2,650,000          2,650,000
     [AFSFM]...........................................
    Weather Camera Program.............................          2,200,000          1,300,000          1,300,000
    Juneau Airport Wind System [JAWS]--Technology
     Refresh...........................................
                                                        --------------------------------------------------------
      Subtotal Flight Service Programs.................         17,850,000         27,988.515         27,988.515
 
d. Landing and Navigational Aids Program
    VHF Omnidirectional Radio Range [VOR] with Distance          9,000,000         11,000,000         17,000,000
     Measuring Equipment [DME].........................
    Instrument Landing System [ILS]--Establish.........          7,000,000          7,000,000         11,000,000
    Wide Area Augmentation System [WAAS] for GPS.......        111,600,000        102,300,000        110,300,000
    Runway Visual Range [RVR] and Enhanced Low                   6,500,000          4,000,000          4,000,000
     Visibility Operations [ELVO]......................
    Approach Lighting System Improvement Program                 3,000,000          3,000,000          3,000,000
     [ALSIP]...........................................
    Distance Measuring Equipment [DME].................          3,000,000          3,000,000          3,000,000
    Visual NAVAIDS--Establish/Expand...................          2,000,000          2,000,000          2,000,000
    Instrument Flight Procedures Automation [IFPA].....          9,400,000          8,500,000          8,500,000
    Navigation and Landing Aids--Service Life Extension          3,000,000          3,000,000          3,000,000
     Program [SLEP]....................................
    VASI Replacement--Replace with Precision Approach            5,000,000          5,000,000          5,000,000
     Path Indicator....................................
    GPS Civil Requirements.............................  .................  .................  .................
    Runway Safety Areas--Navigational Mitigation.......         14,000,000          1,600,000          1,600,000
    NAVAIDS Monitoring Equipment.......................          2,000,000          2,000,000          2,000,000
                                                        --------------------------------------------------------
      Subtotal Landing and Navigational Aids Programs..        175,500,000        152,400,000        170,400,000
 
e. Other ATC Facilities Programs
    Fuel Storage Tank Replacement and Management.......         22,700,000         28,100,000         35,000,000
    Unstaffed Infrastructure Sustainment...............         40,490,000         35,700,000         41,000,000
    Aircraft Related Equipment Program.................         13,000,000         12,500,000         12,500,000
    Airport Cable Loop Systems--Sustained Support......          8,000,000          8,000,000          8,000,000
    Alaskan Satellite Telecommunications Infrastructure          6,000,000         20,900,000         20,900,000
     [ASTI]............................................
    Facilities Decommissioning.........................          6,200,000         13,900,000         27,000,000
    Electrical Power Systems--Sustain/Support..........        105,000,000        110,000,000        125,000,000
    Energy Management and Compliance [EMC].............          2,000,000          2,400,000          2,400,000
    Child Care Center Sustainment......................          1,000,000          1,000,000          1,000,000
    FAA Telecommunications Infrastructure..............         10,360,000          2,000,000          2,000,000
    Data Visualization, Analysis and Reporting System            6,500,000          5,500,000          5,500,000
     [DVARS]...........................................
    TDM-to-IP Migration................................  .................          3,000,000          3,000,000
                                                        --------------------------------------------------------
      Subtotal Other ATC Facilities Programs...........        221,250,000        243,000,000        283,300,000
      Total Activity 2.................................      1,791,710,000      1,718,800,000      1,918,100,000
Activity 3--Non-Air Traffic Control Facilities and
 Equipment
 
a. Support Equipment
 
    Hazardous Materials Management.....................         31,000,000         35,300,000         35,300,000
    Aviation Safety Analysis System [ASAS].............         11,300,000         12,000,000         12,000,000
    Logistics Support Systems and Facilities [LSSF]....  .................  .................  .................
    National Air Space [NAS] Recovery Communications            12,000,000         12,000,000         12,000,000
     [RCOM]............................................
    Facility Security Risk Management..................         21,000,000         20,400,000         20,400,000
    Information Security...............................         24,970,000         20,700,000         20,700,000
    System Approach for Safety Oversight [SASO]........         17,200,000         25,800,000         25,800,000
    Aviation Safety Knowledge Management Environment             4,200,000          4,000,000          4,000,000
     [ASKME]...........................................
    Aerospace Medical Equipment Needs [AMEN]...........          3,000,000          7,000,000          7,000,000
    System Safety Management Portfolio.................         17,000,000         16,200,000         16,200,000
    National Test Equipment Program....................          5,000,000          4,000,000          4,000,000
    Mobile Assets Management Program...................          5,760,000          3,600,000          3,600,000
    Aerospace Medicine Safety Information Systems               12,000,000         14,000,000         14,000,000
     [AMSIS]...........................................
    Tower Simulation System [TSS] Technology Refresh...          3,000,000          3,000,000          3,000,000
                                                        --------------------------------------------------------
      Subtotal Support Equipment.......................        167,430,000        178,000,000        178,000,000
 
b. Training, Equipment and Facilities:
    Aeronautical Center Infrastructure Modernization...         14,000,000         14,000,000         14,000,000
    Distance Learning..................................          1,500,000          1,000,000          1,000,000
                                                        --------------------------------------------------------
      Subtotal Training, Equipment and Facilities......         15,500,000         15,000,000         15,000,000
      Total Activity 3.................................        182,930,000        193,000,000        193,000,000
 
Activity 4--Facilities and Equipment Mission Support:
 
a. System Support and Services:
    System Engineering and Development Support.........         35,000,000         35,700,000         35,700,000
    Program Support Leases.............................         46,600,000         47,000,000         47,000,000
    Logistics and Acquisition Support Services.........         11,000,000         11,000,000         11,000,000
    Mike Monroney Aeronautical Center Leases...........         19,300,000         19,700,000         19,700,000
    Transition Engineering Support.....................         24,100,000         19,900,000         19,900,000
    Technical Support Services Contract [TSSC].........         23,000,000         23,000,000         23,000,000
    Resource Tracking Program [RTP]....................          6,000,000          6,000,000          6,000,000
    Center for Advanced Aviation System Development             60,000,000         57,000,000         57,000,000
     [CAASD]...........................................
    Aeronautical Information Management Program........         10,400,000          4,700,000         15,000,000
    Cross Agency NextGen Management....................          2,000,000          1,000,000          1,000,000
                                                        --------------------------------------------------------
      Total Activity 4.................................        237,400,000        225,000,000        235,300,000
 
Activity 5--Personnel and Related Expenses:
    Personnel and Related Expenses.....................        486,000,000        483,800,000        498,000,000
                                                        --------------------------------------------------------
      Sub-Total All Activities.........................      2,855,000,000      2,766,200,000      3,005,000,000
----------------------------------------------------------------------------------------------------------------

    En Route Automation Modernization [ERAM].--The Committee is 
encouraged by NextGen successes, such as the FAA's ERAM. Since 
ERAM's deployment in early 2015, en route controllers are able 
to track 1,900 aircrafts at a time instead of the 1,100 of the 
previous system, Host. ERAM also enables additional coverage 
beyond facility boundaries so controllers can handle traffic 
more efficiently. Since 2014, ERAM has averaged only one 
unscheduled versus five unscheduled Host outages annually. ERAM 
has had no scheduled outages versus 209 Host scheduled outages 
annually. In calendar year 2016, ERAM exceeded the national 
airspace system defined 99.999 percent operational availability 
requirement and would have been 100 percent except for 28 
minutes at one center early in the morning which resulted in no 
delays.
    ADS-B NAS Wide Implementation.--ADS-B uses GPS signals to 
transmit an aircraft's location to receivers installed on the 
ground throughout the United States. The ground receivers 
transmit that information to air traffic controller screens and 
flight deck displays on any aircraft equipped with the 
appropriate avionics. Using ADS-B will improve the safety and 
efficiency of the national air- space, and it is a foundational 
program of the FAA's NextGen effort to modernize our air 
traffic control system. Therefore, the Committee recommendation 
includes $150,300,000 for the implementation of ADS-B across 
the national airspace. The Committee's recommendation is 
$150,000 more than the budget request, which includes 
$11,000,000 in Activity 2. The recommendation is also 
$4,500,000 less than the fiscal year 2017 enacted level.
    SBS Advanced Surveillance Enhanced Procedural Separation.--
The Committee provides $24,350,000 for SBS Advanced 
Surveillance Enhanced Procedural Separation, which is 
$16,350,000 more than the fiscal year 2017 enacted level and 
$20,000,000 more than the budget estimate. The additional 
funding will accelerate testing and evaluation of the 
technology, operational trials, modification of automation 
systems, and other activities necessary to use space-based ADS-
B for enhanced surveillance to enable reduced oceanic 
separation services. The Committee commends the FAA for 
requesting that the NextGen Advisory Committee [NAC] evaluate 
the benefit of enhanced surveillance capabilities. The NAC task 
force recently issued an interim report that identified 
significant quantified benefits from using space-based ADS-B, 
mainly by enabling aircraft to obtain their preferred optimal 
flight tracks and altitudes to minimize fuel burn or to recover 
from delays. In addition to operational enhancements and 
efficiencies, the technology enables critical safety benefits, 
including filling existing surveillance gaps, precise search 
and rescue, global flight tracking, and reversing the rising 
number of denied weather deviations on oceanic tracks due to 
lack of surveillance. While the Committee appreciates recent 
progress, the Committee directs the FAA to make a final 
investment decision not later than September 30, 2018 for using 
space-based ADS-B for enhanced surveillance to control air 
traffic no later than March 31, 2019, and also to provide this 
capability in the same manner that terrestrial ADS-B 
surveillance is provided, as recommended by the NAC.
    Wide Area Augmentation System [WAAS] Dual Frequency 
Operations [DFO].--The Committee continues to be concerned that 
the FAA's WAAS ground-based infrastructure will not be ready to 
work with the new GPS III constellation's dual frequency 
capability. The Committee understands that this effort was to 
be accomplished in WAAS DFO, Segment 2, which will develop and 
implement the new algorithms and integrity validation for this 
new safety-of-life application. The Committee also understands 
that WAAS DFO Segment 2 is not to begin acquisition until 2019. 
Last year, the Committee directed the FAA to begin algorithm 
development and test in support of dual frequency operations. 
In addition, the Committee recommended the FAA to dedicate 
sufficient funding to begin design, development, modeling and 
prototyping of the new algorithms using the current WAAS 
supplier, who retains this expertise. Commencement of this work 
will significantly mitigate risk factors associated with new 
development and ensure that the WAAS system is fully ready to 
utilize the new capabilities. The Committee directs the FAA to 
report on their plan for accomplishing this directed action to 
the House and Senate Committees on Appropriations within 90 
days of enactment of this act.
    Wide Area Augmentation System [WAAS] GEO Service Lease.--
The Committee recommends the FAA to commence development of the 
WAAS GEO 7 satellite system early in fiscal year 2018 to avoid 
a gap in sustainment of the full three-satellite WAAS 
navigation constellation. The Committee is concerned that WAAS 
Service continuity will be placed at risk by targeting a fiscal 
year 2019 procurement. Current GEO host satellites begin 
retirement within the next year and the remaining satellites 
will be extended well beyond their mission life by the time 
they are replaced. Further, unless the FAA moves expeditiously 
with the development of WAAS GEO 7, the window for capturing 
development of the next available host satellite may pass, 
potentially compromising sustainment of this navigational 
capability and WAAS's ability to provide continuous 
uninterrupted service for aviation and other users. Therefore, 
the Committee is providing an additional $8,000,000 to mitigate 
this risk and allow the FAA to accelerate the competition 
between the incumbent suppliers.
    VHF Omnidirectional Radio Range [VOR] with Distance 
Measuring Equipment [DME].--The Committee has included an 
increase of $8,000,000 above the fiscal year 2017 enacted level 
and $6,000,000 more than the budget request for the 
continuation of FAA's efforts to address the rationalization 
and recapitalization of aging infrastructure of en route 
navigational aids through a service base contract. Consistent 
with the FAA's program requirements roadmap, the Committee 
directs the FAA to achieve the following prior to September 30, 
2018: conduct a supportability analysis; formulate funding 
documentation/requirements; develop technical requirements; 
develop a business case; seek Joint Resources Council approval; 
and conduct a competitive acquisition for award of a contract 
for sustainment of the VORs and DMEs.
    Terminal Automation Modernization and Replacement [TAMR].--
The fiscal year 2017 appropriations clearly stated the 
Committee's concerns that the FAA has not effectively proceeded 
with the required software tools and decision aids for air 
traffic controllers to enable pilots to fully utilize NextGen 
capabilities, especially Performance Based Navigation [PBN], at 
all locations at all times in the NAS. Therefore, the Committee 
directed the FAA to develop and maintain a Standard Terminal 
Automation Replacement Systems [STARS] automation roadmap to 
prepare for an investment decision to identify and prioritize 
STARS enhancements that assist controllers during PBN and other 
NextGen technology operations. The Committee also directed the 
FAA to describe how they intend to maximize the taxpayer 
investments in STARS to ensure that NextGen technologies, 
including PBN, ADS-B, weather products, Data Comm, and Terminal 
Flight Data Manager, are fully integrated in a timely manner to 
maximize user and FAA investment. The Committee is concerned 
that the FAA is not effectively proceeding with the development 
and implementation of the directed roadmap for the planned 
NextGen value added toolsets that will aid in increasing 
safety, capacity and efficiency to STARS. The Committee is 
pleased with the continued on time/on budget deployment of the 
STARS/TAMR infrastructure throughout the NAS; however, the 
Committee is concerned that the FAA is not expeditiously 
developing and implementing new software based toolsets that 
have the ability to provide significant enhancement taking 
advantage of this new infrastructure. Therefore, the Committee 
directs the FAA to provide a STARS/TAMR roadmap within 90 days 
of enactment of this act that details the future path, 
including investment decision milestones to assist terminal 
area controllers with PBN, and other NextGen initiatives such 
as improved terminal area weather.
    Data Communications in Support of NextGen.--The Committee 
recommends $178,100,000 for Data Communications in Support of 
NextGen [DataComm], which is $53,900,000 less than the fiscal 
year 2017 enacted level and $24,000,000 more than the budget 
estimate. The additional funds will ensure that the FAA has the 
resources to continue engineering and development of En Route 
Full Services, which is critical for keeping on track for its 
scheduled implementation in 2022. The additional DataComm Full 
Services capabilities allow both controllers and pilots to 
further utilize the DataComm system to gain operational 
benefits and efficiencies. First, these services will allow 
controllers to uplink any speed or altitude restrictions as the 
plane crosses a fix in the air. Second, it will provide 
controllers and pilots the ability to send additional route 
messages to change the route of flight--for example, to avoid 
weather systems or take advantage of favorable wind conditions. 
Third, it will allow controllers to uplink repetitive advisory 
information thus reducing pilot voice requests for the 
information and allowing the controller to uplink long holding 
instructions. The capabilities in Full Services will reduce the 
need for the controller or pilot to voice complicated 
instructions that can often cause controllers and pilots to 
repeat information until correct and confirmed. The airlines 
anticipate this capability will enable them to fly more 
efficient routes, saving time and fuel. The airspace users have 
expressed through the RTCA NAC and other forums that their 
business case for investing in DataComm relies on the 
capabilities delivered by En Route Full Services.
    Instrument Landing Systems.--The Committee provides an 
increase of $4,000,000 for the procurement of additional 
instrument landing systems [ILS]. The FAA currently operates a 
network of more than 1200 Category I ILS and 150 Category II/
III ILS. According to the FAA, in the next decade, more than 
700 currently deployed ILS will exceed their service life. 
Replacement of aging ILS equipment improves reliability and 
availability and reduces the outage rate and maintenance man-
hours. The Committee is concerned that the pace at which these 
systems are being replaced is not adequate to address future 
requirements. Therefore, the FAA is directed within 30 days 
after enactment of this act to report to the House and Senate 
Committees on Appropriations regarding the agency's strategy to 
address replacement of these aging systems, including a multi-
year budget plan that meets the requirements for replacement 
and an estimate of savings associated with installation of the 
new systems.
    Terminal Airport Traffic Control Facilities-Replace.--The 
Committee recommends $58,118,485, which is $27,000,000 more 
than the budget estimate and $681,515 less than the fiscal year 
2017 enacted level. Of this amount, $5,000,000 is for 
continuing the ongoing remote tower project, including 
operating costs, and for deploying remote tower systems to at 
least 2 other airports. The Committee believes that the remote 
tower is promising technology that will improve aviation 
safety, reduce capital costs, and increase operational 
efficiencies. In selecting airports to install a remote tower, 
the Committee directs the FAA to take into account the interest 
of the airport sponsor and to give priority to airports that 
are currently in the contract tower program that have aging 
towers in need of replacement or are non-towered airports that 
are viable candidates for the program. The Committee 
recommendation also includes an additional $22,000,000 for the 
replacement of terminal air traffic control facilities and air 
traffic control towers. The Committee directs the FAA to use 
this additional funding, as well as funding provided for this 
activity in the fiscal year 2016 and fiscal year 2017 
appropriations acts, for all air traffic control towers that 
are ready for land acquisition or construction. The Committee 
denies the FAA's request to postpone construction on air 
traffic control facilities.
    Terminal radar approach control [TRACON] facilities-
Improve.--The Committee recommendation includes an additional 
$5,000,000 for the improvement of terminal air traffic control 
facilities and air traffic control towers, for a total funding 
level of $61,800,000. The FAA's budget request includes 
$11,200,000 for improvements to the agency's large terminal 
radar approach control [TRACON] facilities. The Committee 
directs the FAA to use the requested funding and the additional 
$5,000,000 for these improvements, and to use these funds for 
modernization and expansion efforts that will ensure the long-
term viability of large TRACONs.
    Aging Facilities.--The Committee instructs FAA to work to 
ad- dress aging and antiquated air traffic control facilities 
that it leases from airport authorities to ensure they are 
fully compliant with current building codes consistent with 
being occupied by air traffic controllers. The Committee 
recognizes that this, in many cases, may require the 
construction of new air traffic facilities to replace existing 
ones. Recognizing continual funding constraints, the Committee 
instructs FAA to utilize creative financing options and to 
include consideration of long-term cost recovery leases, when 
conditions warrant the construction of new air traffic control 
towers.
    Military Operations Areas.--The Committee finds that radar 
and future NextGen systems capable of controlling airspace down 
to 500 feet above ground level enhances aviation safety in 
Military Operations Areas that overlay public use airports with 
more than 5,000 operations per year. The Committee recommends 
that the FAA utilize existing resources to promptly provide 
radar or NextGen capability in such areas.

                 RESEARCH, ENGINEERING, AND DEVELOPMENT

                    (AIRPORT AND AIRWAY TRUST FUND)

Appropriations, 2017....................................    $176,500,000
Budget estimate, 2018...................................     150,000,000
Committee recommendation................................     179,000,000

                          PROGRAM DESCRIPTION

    The Research, Engineering, and Development appropriation 
provides funding for long-term research, engineering, and 
development programs to improve the air traffic control system 
by increasing its safety and capacity, as well as reducing the 
environmental impacts of air traffic, as authorized by the 
Airport and Airway Improvement Act and the Federal Aviation 
Act, as amended. The programs are designed to meet the expected 
air traffic demands of the future and to promote flight safety 
through improvements in facilities, equipment, techniques, and 
procedures to ensure that the system will safely and 
efficiently handle future volumes of aircraft traffic.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $179,000,000 for the FAA's Re- 
search, Engineering, and Development activities. The 
recommended level of funding is $29,000,000 more than the 
budget request and $2,500,000 more than the fiscal year 2017 
enacted level.
    A table showing the fiscal year 2017 enacted level, the 
fiscal year 2018 budget estimate and the Committee 
recommendation is as follows:

                                     RESEARCH, ENGINEERING, AND DEVELOPMENT
----------------------------------------------------------------------------------------------------------------
                                                                           Fiscal year--
                                                                 --------------------------------    Committee
                                                                   2017 enacted    2018 estimate  recommendation
----------------------------------------------------------------------------------------------------------------
Safety:
    Fire Research & Safety......................................      $7,425,000      $7,044,000      $7,067,000
    Propulsion & Fuel Systems...................................       2,074,000       2,269,000       2,074,000
    Advanced Materials/Structural Safety........................       6,500,000       4,338,000      10,500,000
    Aircraft Icing/Digital System Safety/Cyber Security.........       5,102,000       9,253,000       9,253,000
    Continued Air Worthiness....................................       9,269,000      10,437,000      11,269,000
    Aircraft Catastrophic Failure Prevention Research...........       1,528,000       1,570,000       1,570,000
    Flightdeck/Maintenance/System Integration Human Factors.....       7,305,000       6,825,000       7,305,000
    Safety System Management/Terminal Area Safety...............       6,500,000       4,149,000       4,726,000
    Air Traffic Control/Technical Operations Human Factors......       6,165,000       5,196,000       5,196,000
    Aeromedical Research........................................       8,538,000       9,765,000       8,538,000
    Weather Research............................................      15,476,000      13,399,000      15,476,000
    Unmanned Aircraft Systems Research..........................      20,035,000       6,787,000      20,035,000
    NextGen--Alternative Fuels for General Aviation.............       7,000,000       5,924,000       7,000,000
    Commercial Space Transportation Safety......................       2,453,000       1,796,000       1,872,000
                                                                 -----------------------------------------------
        Total Safety............................................     105,370,000      88,752,000     111,881,000
                                                                 ===============================================
Economic Competitiveness:
    NextGen--Wake Turbulence....................................       8,609,000       6,831,000       6,831,000
    NextGen--Air Ground Integration.............................       8,575,000       6,757,000       6,757,000
    NextGen--Weather Technology in the Cockpit..................       4,059,000       3,644,000       3,644,000
    NextGen--Information Security...............................       1,000,000       1,000,000       1,000,000
                                                                 -----------------------------------------------
        Total Economic Competiveness............................      22,243,000      18,232,000      18,232,000
                                                                 ===============================================
Environmental Sustainability:
    Environment & Energy........................................      16,013,000      14,497,000      16,013,000
    NextGen Environmental Research--Aircraft Technologies, Fuels      27,174,000      23,151,000      27,174,000
     and Metrics................................................
                                                                 -----------------------------------------------
        Total Environmental Sustainability......................      43,187,000      37,648,000      43,187,000
                                                                 ===============================================
Mission Support:
    System Planning and Resource Management.....................       2,288,000       2,135,000       2,288,000
    WJHTC Lab Facilities........................................       3,412,000       3,233,000       3,412,000
                                                                 -----------------------------------------------
        Total Mission Support...................................       5,700,000       5,368,000       5,700,000
                                                                 ===============================================
            Total...............................................     176,500,000     150,000,000     179,000,000
----------------------------------------------------------------------------------------------------------------

    Advanced Materials/Structural Safety.--The Committee 
continues to support the impact that stitched resin composites 
can provide to the aviation industry. Therefore, the Committee 
recommendation includes $10,500,000 for Advanced Materials and 
Structural Safety, which is $4,000,000 above the fiscal year 
2017 enacted level and $4,162,000 above the budget request. Of 
the total amount provided, $2,000,000 is directed for the FAA 
to work with public/private partners to evaluate the material 
for airworthiness certification; and $4,000,000 is to advance 
the use of new structural material applications and bring new 
materials into future production while ensuring the safety and 
integrity for use of these materials into the commercial 
aviation industry through the FAA Joint Advanced Materials and 
Structures Center of Excellence.
    Additive Manufactured Continued Airworthiness.--The 
Committee recommends $11,269,000 for Continued Airworthiness, 
which is $2,000,000 above the fiscal year 2017 enacted level, 
and $832,000 above the budget request. With the emergence of 
additive manufactured, the advances in the fabrication of 
complex structures has the potential to transform aircraft and 
spacecraft propulsion. The Committee understands a primary 
challenge in additive manufactured for aerospace applications 
is the certification of flight worthiness of complex additive 
manufactured-constructed components. The Committee, therefore, 
directs the increase provided under this section, for the FAA 
to collaborate with academic and industry partners, to develop 
and define the critical standards and assessment methods for 
certifying advanced material components for aerospace 
applications.
    Unmanned Aircraft Systems [UAS] Research--Center of 
Excellence.--The Committee recognizes the valuable role of the 
Center of Excellence in assisting the FAA in a host of research 
challenges associated with the integration of UAS into the 
National Airspace System. The Committee recommendation includes 
$20,035,000 for UAS research, equal to the fiscal year 2017 
enacted level and $13,248,000 above the budget request. Of the 
funds provided for UAS research, $12,000,000 is directed to 
support the expanded role of the Center of Excellence in areas 
of UAS research, including cybersecurity, agricultural 
applications, beyond visual line of sight technology, and 
continuation of air and ground collision studies. Furthermore, 
the Center of Excellence shall establish a UAS safety research 
facility at the Center to study appropriate safety standards 
for UAS and to develop and validate certification standards for 
such systems; $5,000,000 is available for research necessary to 
establish the consensus safety standards requirements, to the 
maximum extent practicable, leverage the research and testing 
capacity and capabilities of the Center of Excellence for UAS 
and the test sites; and $2,000,000 is to expand the Center's 
role in transportation disaster preparedness and response, 
partnering with institutions that have a demonstrated 
experience in damage assessment, collaboration with State 
agencies of transportation, and experience in applied UAS field 
testing.
    Alternative Fuels for General Aviation.--The Committee 
recommendation includes $7,000,000 for research that supports 
alter- native fuels for general aviation. This funding level is 
$1,076,000 above the budget request and equal to the fiscal 
year 2017 enacted level.
    Environmental Sustainability.--The Committee recommendation 
includes a total of $43,187,000 for research related to 
environmental sustainability, which is $5,539,000 above the 
budget request and equal to the fiscal year 2017 enacted level. 
This total includes $16,013,000 under the ``Environment and 
Energy'' and another $27,174,000 under ``NextGen--Environmental 
Research Aircraft Technologies, Fuels, and Metrics.''
    Unmanned Aircraft Systems--[UAS] Traffic Management.--The 
Committee believes that creation of an unmanned traffic 
management [UTM] system is critical to the safe integration of 
drones into the national airspace. The Committee is concerned 
that FAA is not meeting its statutory obligations under Section 
2208 of the FAA Extension, Safety, and Security Act of 2016 
(Public Law 114-190) to develop a research plan and establish a 
pilot program to demonstrate a UTM system. FAA must leverage 
technology solutions to enable States and regions to establish 
UTM systems that are part of a national UTM system. Failure to 
accelerate the implementation of a UTM system for drones will 
hinder the safe integration of drones into the national 
airspace. Therefore, the FAA is directed to submit a report 
within 60 days of enactment of this act to the House and Senate 
Committees on Appropriations on its progress toward 
implementation of Section 2208, including a detailed summary of 
how the FAA has agreed to work concurrently with NASA to 
establish a UTM system and any memoranda of understanding or 
work plans entered into between the two agencies to meet the 
statutory deadlines.
    Noise Health Effects Research.--The Committee supports 
research that is being conducted through the FAA's Center of 
Excellence for Alternative Jet Fuel and Environment, the 
Aviation Sustainability Center on the impact of aviation noise 
on both sleep and cardiovascular health. The Committee directs 
FAA to continue to prioritize this research, as many 
communities across the country contend with increased frequency 
of passing aircraft on a daily basis. In addition, the 
Committee directs the FAA to continue to evaluate alternative 
metrics to the current Day Night Level [DNL] 65 standard and 
other methods to address community airplane noise concerns, 
including cumulative noise impacts from increased frequency of 
flights.

                       GRANTS-IN-AID FOR AIRPORTS

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                      (LIMITATION ON OBLIGATIONS)

                    (AIRPORT AND AIRWAY TRUST FUND)

                     (INCLUDING TRANSFER OF FUNDS)

                         (INCLUDING RESCISSION)

----------------------------------------------------------------------------------------------------------------
                                                                         Fiscal year--
                                                              ----------------------------------    Committee
                                                                 2017 enacted    2018 estimate    recommendation
----------------------------------------------------------------------------------------------------------------
Resources from the Airport and Airway Trust Fund:
    Limitation on obligations................................   $3,350,000,000   $3,350,000,000   $3,600,000,000
    Liquidation of contract authorization....................    3,750,000,000    3,000,000,000    3,250,000,000
----------------------------------------------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    Funding for Grants-in-Aid for airports pays for capital 
improvements at the Nation's airports, including those 
investments that emphasize capacity development, safety 
improvements, and security needs. Other priority areas for 
funding under this program include improvements to runway 
safety areas that do not conform to FAA standards, investments 
that are designed to reduce runway incursions, and aircraft 
noise compatibility planning and programs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation on obligations of 
$3,600,000,000 for Grants-in-Aid for airports for fiscal year 
2018. The recommended limitation on obligations is $250,000,000 
above the enacted level for fiscal year 2017 and the budget 
request.
    The Committee recommends a liquidating cash appropriation 
of $3,250,000,000 for Grants-in-Aid for Airports. The 
recommended level is $500,000,000 less than the fiscal year 
2017 enacted level and $250,000,000 more than the budget 
request. This appropriation is sufficient to cover the 
liquidation of all obligations incurred pursuant to the 
limitation on obligations set forward in the bill.
    Administrative Expenses.--The Committee recommends 
$111,863,000 to cover administrative expenses. This funding 
level is equal to the budget request and $4,172,000 more than 
the fiscal year 2017 enacted level.
    Airport Cooperative Research.--The Committee recommends 
$15,000,000 for the Airport Cooperative Research program. This 
funding level is equal to the budget estimate and the fiscal 
year 2017 enacted level.
    Airport Technology.--The Committee recommends $33,210,000 
for Airport Technology Research. This funding level is equal to 
the budget request and $1,835,000 more than the fiscal year 
2017 level.
    Small Community Air Service Development Program [SCASDP].--
The Committee recommends $10,000,000. This funding level is 
equal to the fiscal year 2017 enacted level. The budget request 
included no funds for this program for fiscal year 2018.
    Cost Share.--The agreement includes a provision that allows 
small airports to continue contributing 5 percent of the total 
cost for unfinished phased projects that were underway prior to 
the passage of the FAA Modernization and Reform Act of 2012.
    Allocation of Resources.--The Committee recognizes many 
States have short construction seasons due to inclement weather 
and require certainty about airport grant allocations when 
making planning decisions. FAA is encouraged to work 
expeditiously to make entitlement and discretionary grant 
allocations, in order to provide certainty to northern State 
airports. The Committee also understands that certain physical 
topography, environments, and circumstances prohibit certain 
existing airports that are in critical need of expansion due to 
their essential economic impact on their surrounding 
communities from expanding, and as such are required to 
physically relocate their premises. Therefore, the Committee 
directs the FAA to ensure sufficient funding is available to 
relocate these airports in a timely and expedited manner.
    Aircraft Rescue and Firefighting Training.--The Committee 
is concerned about the number and location of training 
facilities offering Aircraft Rescue and Firefighting [ARFF] 
training, particularly in the Great Lakes and Central FAA 
regions, which lack a single dedicated ARFF training site. 
Historically, FAA has recommended firefighting training 
facilities be located no more than one day's driving time or 
300 miles from participating airports to mitigate cost. The 
Committee is interested in ensuring ARFF training is available 
and accessible in a cost-effective and sustainable setting. The 
Committee directs the Administration to provide a report on the 
number and suitability of training facilities in each FAA 
region, as well as a plan to address identified coverage gaps, 
within 90 days of enactment of this act. The Committee 
encourages FAA to consider cost-effective proposals, including 
partnerships between airport sponsors and established 
firefighting training facilities.
    Policy and Procedure Concerning the Use of Airport 
Revenue.-- The Committee is aware of several self-help counties 
that have enacted sales tax measures to fund local 
transportation improvements. These sales tax measures are 
difficult to enact and provide critical funding to address 
local highway, transit, and other transportations requirements. 
Several of these counties contain airports and have been 
receiving funds raised on the sales tax associated with the 
sale of aviation fuel.
    In 2014, the FAA finalized a rule construing the term 
``local taxes on aviation fuel'' to apply to all sales taxes 
rather than specific excise taxes on aviation fuel. This change 
in definition diverts funding away from projects outlined in 
local sales tax measures, violating promises made to the voters 
who approved these measures. According to the FAA rules, local 
transportation sales taxes collected on the sale of aviation 
fuel would have to be spent in accordance with FAA rules 
governing such expenditures. The Policy and Procedure 
Concerning the Use of Airport Revenue [Docket No. FAA-2013-
0988] is scheduled to be enforced by the end of December 2017. 
Given the utility of sales tax measures to address local 
transportation needs and reduce the burden on Federal spending, 
the Committee encourages the Secretary to postpone the 
enforcement of Docket No. FAA-2013-0988 and work with local 
governments and the FAA to develop a path forward to allow the 
use of local sales tax revenues generated on the sale of 
aviation fuel to be used in a manner consistent with their 
enactment.
    Deed Restrictions.--The Committee finds that commercial 
activities, in addition to regularly scheduled commercial air 
service, are vital to the fiscal sustainability of commercial 
use airports. The Committee directs the FAA work with the 
Department of Agriculture and States or municipalities that own 
and operate commercial or public use airports on land acquired 
from the Federal government to ease deed restrictions and 
permit commercial development of land owned by the State or 
municipality.

       ADMINISTRATIVE PROVISIONS--FEDERAL AVIATION ADMINISTRATION

    Section 110 limits the number of technical staff years at 
the Center for Advanced Aviation Systems Development to no more 
than 600 in fiscal year 2018.
    Section 111 prohibits funds in this act from being used to 
adopt guidelines or regulations requiring airport sponsors to 
provide the FAA ``without cost'' buildings, maintenance, or 
space for FAA services. The prohibition does not apply to 
negotiations between the FAA and airport sponsors concerning 
``below market'' rates for such services or to grant assurances 
that require airport sponsors to pro- vide land without cost to 
the FAA for air traffic control facilities.
    Section 112 permits the Administrator to reimburse FAA 
appropriations for amounts made available for 49 U.S.C. 
41742(a)(1) as fees are collected and credited under 49 U.S.C. 
45303.
    Section 113 allows funds received to reimburse the FAA for 
pro- viding technical assistance to foreign aviation 
authorities to be credited to the Operations account.
    Section 114 prohibits the FAA from paying Sunday premium 
pay except in those cases where the individual actually worked 
on a Sunday.
    Section 115 prohibits the FAA from using funds provided in 
the bill to purchase store gift cards or gift certificates 
through a Government-issued credit card.
    Section 116 requires approval from the Assistant Secretary 
for Administration of the Department of Transportation for 
retention bonuses for any FAA employee.
    Section 117 requires that, upon request by a private owner 
or operator of an aircraft, the Secretary block the display of 
that owner or operator's aircraft registration number in the 
Aircraft Situational Display to Industry program.
    Section 118 prohibits funds in this act for salaries and 
expenses of more than eight political and Presidential 
appointees in the Federal Aviation Administration.
    Section 119 requires the FAA to conduct public outreach and 
provide justification to the Committee before increasing fees 
under section 44721 of title 49, United States Code.
    Section 119A requires the FAA to notify the House and 
Senate Committees on Appropriations at least 90 days before 
closing a regional operations center or reducing the services 
it provides.
    Section 119B prohibits funds from being used to change 
weight restrictions or prior permission rules at Teterboro 
Airport in New Jersey.
    Section 119C prohibits funds from being used to withhold 
from consideration and approval any application for 
participation in the Contract Tower Program, pending as of 
January 1, 2016, including applications from Cost-share Program 
participants if the Administrator determines such tower is 
eligible under the criteria set forth in the Federal Aviation 
report, Establishment and Discontinuance Criteria for Airport 
Traffic Control Towers [FAA-APO-90-7].
    Section 119D allows airports that met the 10,000 
enplanement qualification for AIP funds in calendar year 2012 
to continue to receive AIP funds in fiscal year 2018.
    Section 119E allows foreign air carriers traveling to or 
from Cuba to make transit stops in the United States for 
refueling and other technical services.
    Section 119F provides transfer authority to prevent a 
reduction of operations or delays to NextGen programs, 
projects, and activities.
    Section 119G modifies requirements to the Cost-share 
program to ensure continuity of operations at existing 
facilities.
    Section 119H prohibits funds from limiting certification 
activities unless the FAA documents noncompliance.
    Section 119I allows for the implementation of mandatory 
compliance airworthiness instructions when safety requirements 
are met.
    Section 119J eliminates redundancies within bilateral 
safety agreements.
    Section 119K requires the Secretary to issue regulations to 
prohibit the use of cell phones on aircraft while airborne.
    Section 119L provides airports with greater flexibilities 
to generate additional revenue to improve infrastructure.
    Section 119M prohibits the FAA from transferring the 
exclusive sovereignty of the operational and regulatory 
authority over the National Airspace System.
    Section 119N requires the FAA to permit intermittent large 
cargo air carriers to land in remote areas using a mix of 
available meteorological weather reports, in place of National 
Weather Service forecast reports where they do not provide 
weather coverage.

                     Federal Highway Administration


                          PROGRAM DESCRIPTION

    The principal mission of the Federal Highway Administration 
[FHWA] is, in partnership with State and local governments, to 
foster the development of a safe, efficient, and effective 
highway and intermodal system nationwide including access to 
and within national forests, national parks, Indian lands, and 
other public lands.

                        COMMITTEE RECOMMENDATION

    Under the Committee recommendations, a total program level 
of $44,973,212,000 is provided for the activities of the 
Federal Highway Administration in fiscal year 2018. The 
recommendation is equal to the budget request and 
$1,825,112,000 more than the fiscal year 2017 enacted level. 
The following table summarizes the Committee's recommendations:

----------------------------------------------------------------------------------------------------------------
                                                                       Fiscal year--
                                                           ------------------------------------     Committee
                                                              2017 enacted      2018 estimate    recommendation
----------------------------------------------------------------------------------------------------------------
Federal-aid highways program obligation limitation........   $43,266,100,000   $44,234,212,000   $44,234,212,000
Contract authority exempt from the obligation limitation..       739,000,000       739,000,000       739,000,000
Rescission of unused contract authority...................      -857,000,000  ................  ................
                                                           -----------------------------------------------------
      Total...............................................    43,148,100,000    44,973,212,000    44,973,212,000
----------------------------------------------------------------------------------------------------------------

                 LIMITATION ON ADMINISTRATIVE EXPENSES

                          (HIGHWAY TRUST FUND)

                     (INCLUDING TRANSFER OF FUNDS)

Limitation, 2017........................................    $435,795,000
Budget estimate, 2018...................................     442,691,925
Committee recommendation................................     442,691,925

                          PROGRAM DESCRIPTION

    This limitation on obligations provides for the salaries 
and expenses of the Federal Highway Administration [FHWA] for 
program management, direction, and coordination; engineering 
guidance to Federal and State agencies; and advisory and 
support services in field offices.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation on obligations of 
$439,443,925 for administrative expenses of the agency, and an 
additional $3,248,000 for administrative expenses of the 
Appalachian Regional Commission in accordance with section 104 
of title 23, United States Code. The total limitation is equal 
to the budget request and $6,897,925 more than the fiscal year 
2017 enacted level.

                          FEDERAL-AID HIGHWAYS

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)

Limitation, 2017........................................ $43,266,100,000
Budget estimate, 2018...................................  44,234,212,000
Committee recommendation................................  44,234,212,000

                          PROGRAM DESCRIPTION

    The Federal-aid highway program provides financial support 
to States and localities for the development, construction, and 
repair of highways and bridges through grants. The program is 
financed from the Highway Trust Fund and most of the funds are 
distributed through apportionments and allocations to States. 
Title 23 of the United States Code and other supporting 
legislation provide authority for the various activities of the 
FHWA. Funding is provided by contract authority, with program 
levels established by annual limitations on obligations set in 
appropriations acts.

                        COMMITTEE RECOMMENDATION

    The Committee recommends limiting fiscal year 2018 
obligations to $44,234,212,000, which is equal to the budget 
request and $968,112,000 more than the fiscal year 2017 enacted 
level for the Federal-aid highway program. In addition, the 
bill includes a provision that allows the FHWA to collect and 
spend fees in order to pay for the services of expert firms in 
the field of municipal and project finance to assist the agency 
in the provision of credit instruments.
    FAST Act Funding Levels.--The Committee supports projects 
that help growing communities improve safety and mitigate 
congestion, making it easier for economic investment to provide 
new opportunities for residents. As such, the Committee 
recommendation includes funding levels consistent with the FAST 
Act, which will enable projects that have been identified by 
Metropolitan Planning Organizations [MPOs], including those 
using public-private partnerships, to achieve transportation 
and economic development in local communities. This funding is 
required to keep pace with maintenance of existing 
infrastructure, especially roads and highways in rural and 
mountainous areas.
    Regulations.--The Committee directs FHWA to identify 
opportunities to eliminate unnecessary regulations and 
streamline burdensome regulations to ensure FHWA is a good 
steward of taxpayer resources that support the construction of 
physical infrastructure. FHWA should identify areas where more 
autonomy can be given to State, local, and tribal 
jurisdictions, which have an understanding of the needs and 
challenges in building and maintaining infrastructure.
    Timber Bridge Initiative.--The Committee recognizes that 
the use of cross laminated timber and other forms of mass 
timber can provide value in bridge structures. The benefits of 
timber in bridge construction include reduced weight and cost-
effectiveness. When used to reinforce existing structures, 
timber can upgrade live load capacity. The Committee notes with 
appreciation that FHWA has worked successfully in partnership 
with the U.S. Department of Agriculture's Forest Products 
Laboratory to research the benefits of timber in bridge 
construction. The Committee urges the Department to renew this 
work, as well as to use mass timber in demonstration projects, 
and recommends continued collaboration with other Federal 
agencies for deploying timber into the U.S. highway and bridge 
system.
    Border Infrastructure.--The FAST Act provided border State 
departments of transportations the flexibility to use funding 
under their control to advance infrastructure projects that 
facilitate cross border travel. However, the Committee 
recognizes that funding these projects is a challenge for many 
rural States. Recognizing that the benefits of modern 
infrastructure at border crossings is of national interest, the 
Committee directs FHWA to explore incentives for border States 
to prioritize and fund border infrastructure improvement 
projects and report its findings to the House and Senate 
Committees on Appropriations within 90 days of enactment of 
this act.
    Job Order Contracting.--The Committee directs FHWA to 
approve job order contracting, as currently allowed through the 
Special Experimental Projects No. 14 Program, as an operational 
contracting technique for all Federal-aid Highway Program 
funded projects within 30 days of enactment of this act.
    Regional Transportation Workforce Centers.--The Committee 
notes that the workforce needs of the transportation sector 
continue to evolve as new technology and construction practices 
are developed. In many instances, education curriculum has not 
kept pace with civil engineering practices. The Committee 
directs FHWA to provide resources to the Center for 
Transportation Workforce Development to align education 
workforce development efforts to support the advancement of 
environmental career paths within transportation, the 
deployment and delivery of innovative transportation solutions 
in rural areas, the planning for smart city and community 
design in rural areas, and improved technology transfer.
    Natural Gas Trucks.--Section 1410 of the FAST Act allows 
natural gas trucks to operate with up to 2,000 additional 
pounds when traveling on the Dwight D. Eisenhower System of 
Interstate and Defense Highways. The Committee directs the FHWA 
to issue additional guidance on section 1410 to States to 
ensure that the Congressional intent of allowing this to occur 
on all applicable roads occurs expeditiously.
    Resilient Infrastructure.--The Committee directs the FHWA 
to submit a report to the House and Senate Committees on 
Appropriations that includes recommendations for States, MPOs, 
and cities to plan for and develop resilient Federal-aid 
highways that are contextually sensitive, and provide cost-
effective solutions to improving shoreline protections for 
existing highways not later than 12 months after the date of 
enactment of this act. The Committee further directs FHWA to 
expand its technical assistance and training workshops to help 
coastal States, MPOs, and cities to revise their practices in 
all phases of transportation planning and asset management, 
project planning and development, and operations with the goal 
of improving the resiliency of our coastal highways and 
reducing the life-cycle costs for these natural disaster prone 
roadways.
    Research.--FHWA's April 2016 ``Truck Size and Weight Limits 
Study'' revealed data limitations that hampered efforts to 
conclusively study the effect of changing the size and weight 
of various truck configurations. While there are inadequate 
performance data from the operational use of these vehicles in 
a number of States, the Committee is aware of ongoing efforts 
between the Department, the NAS, and the Transportation 
Research Board to develop a Comprehensive Truck Size and Weight 
Research Plan. The Committee is also aware of an ongoing study 
to synthesize and compare past work, empirical models, and 
current legal operation of twin 33-foot trailers, LCVs, and 
other configurations. Should the Department find that there is 
a lack of available data, the Committee directs the Department 
to work with the State departments of transportation to 
establish best practices for data collection relating to truck 
configurations. The Department is directed to incorporate those 
practices and begin accumulating such data to supplement the 
ongoing Research Plan. The Committee directs the Secretary to 
finalize the Research Plan within one calendar year of the 
enactment of this act, and to submit a report on the results of 
this effort to the House and Senate Committees on 
Appropriations within 30 days of completion. The Committee 
further directs the Secretary to submit a report on the status 
of this effort to the House and Senate Committees on 
Appropriations no later than 180 days after the enactment of 
this act.
    Surface Transportation System Funding Alternatives 
Program.--The Committee directs the Secretary to issue an 
annual Notice of Funding Opportunity [NOFO] each fiscal year 
for which funding is provided, consistent with section 6020 of 
the FAST Act, and encourages the Secretary to provide no less 
than $3,000,000 to eligible applicants that partner with 
municipal governments to pilot revenue collection mechanisms 
that utilize shared ride electric and automated vehicles. The 
Committee is aware of concerns that the timing of the NOFO and 
application deadlines have not been aligned with State 
legislative calendars, and that the obligation deadline 
unnecessarily limits the period for which planning activities 
are eligible. Therefore, the Committee directs the Secretary to 
modify the NOFO deadline to align with State legislative 
calendars and to extend the amount of time for pilot planning 
and predevelopment activities from the current 18 months to no 
less than 24 months.
    Permeable Pavements.--The Committee encourages the 
Secretary to accelerate research, demonstration, and deployment 
for permeable pavements to achieve flood mitigation, pollutant 
reduction, stormwater runoff reduction and conservation. 
Projects may include roadway shoulder load testing and 
documenting life-cycle cost efficiency.
    Geosynthetic Reinforced Soil-Integrated Bridge System.--The 
Committee supports research and deployment to capitalize on 
investment in Geosynthetic Reinforced Soil Integrated Bridge 
Systems and encourages the Secretary to complete cost studies 
and to distribute these findings to State DOTs. Further, the 
Department should consider AID Demonstration grants to deploy 
innovations in geosynthetic-reinforced abutments, segmental 
sound barriers, and flooding scour countermeasures, and address 
technical specifications for segmental face durability and 
geosynthetics connections.
    Composites.--The Committee recognizes that composites can 
improve the performance of bridge structures and prove valuable 
for other uses, including road signs. Proven benefits of 
composites include strength, low weight, corrosion resistance, 
and long-term durability, and these characteristics can lead to 
improved performance for bridges and other structures. The 
Committee urges the Department to use composites in 
demonstration projects and recommends the continued research, 
development, and regulatory reform needed, if any, to clear 
hurdles for deploying composites into our highway and bridge 
system. Through use in the Technology and Innovation Deployment 
Program, FHWA should identify ways other agencies and programs 
could collaborate with FHWA and contribute to the expanded use 
of composites.
    Highway Guide Signs Font.--In early 2016, the FHWA notified 
State transportation agencies of its intention to rescind 
Interim Approval IA-5 for the use of Clearview font on highway 
guide signs. The Committee continues the directive to suspend 
enforcement of action, terminating this interim approval. The 
Committee also directed FHWA to provide opportunity for public 
comment on this matter. As a result FHWA issued a request for 
information on December 13, 2016 (FHWA Docket No. FHWA-2016-
0036). The comment period closed January 27, 2017. The 
Committee directs FHWA to reinstate Interim Approval IA-5 
unless there is sufficient information to demonstrate no 
improvement in the overall effectiveness of signs from the use 
of Clearview.
    Safe Streets Design Implementation.--The Committee is 
encouraged by FHWA's efforts to improve roadway design 
standards to improve safety for all users. To leverage these 
efforts to save lives and limit severe injuries from roadway 
crashes, the Committee directs the FHWA to conduct training 
with its State offices on the design flexibilities available 
for recipients of Federal highway funds. The trainings should 
include topics such as: lessons learned from the Safer People, 
Safer Streets initiative; context sensitive solutions in 
transportation planning; revisions of controlling criteria for 
design and documentation of design exceptions; road diets; and 
the evolving use of level of service metrics in transportation 
analysis.
    Historic Railroad Corridors.--The Committee acknowledges 
the importance of the agency in assisting with transportation 
and mobility efforts in communities across the country. The 
Committee encourages FHWA to look at regionally focused mixed-
use projects that integrate the preservation of historic 
railroad corridors while developing shared-use paths, including 
pedestrian, bicycle, and transit-oriented development that will 
assist with regional mobility.
    Balanced Consideration of Use-Exemption Requests for 
Trails.--As the FHWA considers requests for exceptions under 23 
U.S.C. 217(h), the Committee encourages the agency to give due 
consideration to the local economy and community input. In 
particular, the agency should weigh the role of motorized 
vehicles plays in the local economy and should seek feedback 
from trail users.

                 LIQUIDATION OF CONTRACT AUTHORIZATION

                          (HIGHWAY TRUST FUND)

Appropriations, 2017.................................... $44,005,100,000
Budget estimate, 2018...................................  44,973,212,000
Committee recommendation................................  44,973,212,000

                          PROGRAM DESCRIPTION

    The Federal-aid highway program is funded through contract 
authority paid out of the Highway Trust Fund. Most forms of 
budget authority provide the authority to enter into 
obligations and then to liquidate those obligations. Put 
another way, it allows a Federal agency to commit to spending 
money on specified activities and then to actually spend that 
money. In contrast, contract authority provides only the 
authority to enter into obligations, but not the authority to 
liquidate those obligations. The authority to liquidate 
obligations--to actually spend the money committed with the 
contract authority--must be provided separately. The authority 
to liquidate obligations under the Federal-aid highway program 
is provided under this heading. This liquidating authority 
allows FHWA to follow through on commitments already allowed 
under current law; it does not provide the authority to enter 
into new commitments for Federal spending.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a liquidating cash appropriation 
of $44,973,212,000. The recommended level is equal to the 
budget request and $968,112,000 more than the fiscal year 2017 
enacted level. This level of liquidating authority is necessary 
to pay outstanding obligations from various highway accounts 
pursuant to this and prior appropriations acts.

       ADMINISTRATIVE PROVISIONS--FEDERAL HIGHWAY ADMINISTRATION

    Section 120 distributes obligation authority among Federal-
aid Highway programs.
    Section 121 continues a provision that credits funds 
received by the Bureau of Transportation Statistics to the 
Federal-aid highways account.
    Section 122 provides requirements for any waiver of Buy 
America requirements.
    Section 123 requires congressional notification before the 
Department provides credit assistance under the TIFIA program.
    Section 124 requires 60-day notification for any grants for 
a project under 23 U.S.C. 117 and requires these notifications 
to be made within 180 months of enactment of this act.
    Section 125 allows State DOTs to repurpose certain highway 
project funding to be used within 100 miles of its original 
designation.
    Section 126 amends an existing high priority corridor on 
the national highway system.
    Section 127 requires the Secretary to remove a certain road 
in Colorado from the National Highway System.
    Section 128 allows States to use CMAQ for operating 
assistance on certain State-supported Amtrak routes with no 
time limitation.
    Section 129 allows the Secretary to remove outdated 
restrictions on the use of excess toll revenues for certain 
highways in order to make them consistent with 23 U.S.C. 129.
    Section 129A increases the truck weight limits to 129,000 
lbs. on highways in North Dakota.
    Section 129B makes a technical correction to an existing 
truck weight exemption for New Hampshire.

              Federal Motor Carrier Safety Administration


                          PROGRAM DESCRIPTION

    The Federal Motor Carrier Safety Administration [FMCSA] was 
established within the Department of Transportation by the 
Motor Carrier Safety Improvement Act [MCSIA] (Public Law 106-
159) in December 1999. Prior to this legislation, motor carrier 
safety responsibilities were under the jurisdiction of the 
Federal Highway Administration.
    MCSIA, the Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users [SAFETEA-LU], the 
Moving Ahead for Progress in the 21st Century Act [MAP-21], and 
the Fixing America's Surface Transportation [FAST] Act provide 
funding authorization for FMCSA's Motor Carrier Safety 
Operations and Programs and Motor Carrier Safety Grants.
    FMCSA's mission is to promote safe commercial motor vehicle 
and motor coach operations, as well as reduce the number and 
severity of accidents. Agency resources and activities prevent 
and mitigate commercial motor vehicle and motor coach accidents 
through education, regulation, enforcement, stakeholder 
training, technological innovation, and improved information 
systems. FMCSA is also responsible for ensuring that all 
commercial vehicles entering the United States along its 
southern and northern borders comply with all Federal motor 
carrier safety and hazardous materials regulations. To 
accomplish these activities, FMCSA works with Federal, State, 
and local enforcement agencies, the motor carrier industry, 
highway safety organizations, and the public.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total level of $744,800,000 for 
obligations and liquidations from the Highway Trust Fund. This 
level is equal to the request and $13,600,000 more than the 
fiscal year 2017 enacted level. In addition, the Committee 
recommends a rescission of $117,715,789 of unobligated balances 
of contract authority.

----------------------------------------------------------------------------------------------------------------
                                                                       Fiscal year--
                                                           ------------------------------------     Committee
                                                              2017 enacted      2018 estimate    recommendation
----------------------------------------------------------------------------------------------------------------
Motor Carrier Safety Operations & Programs (obligation          $277,200,000      $283,000,000      $283,000,000
 limitation)..............................................
Motor Carrier Safety Operations & Programs (rescission of   ................  ................       -13,914,757
 contract authority)......................................
Motor Carrier Safety (rescission of contract authority)...  ................  ................        -2,929,772
National Motor Carrier Safety (rescission of contract       ................  ................        -9,419,390
 authority)...............................................
Motor Carrier Safety Grants (obligation limitation).......       367,000,000       374,800,000       461,800,000
Motor Carrier Safety Grants (rescission of contract         ................  ................       -91,451,870
 authority)...............................................
                                                           -----------------------------------------------------
      Total...............................................       644,200,000       657,800,000       627,084,211
----------------------------------------------------------------------------------------------------------------

              MOTOR CARRIER SAFETY OPERATIONS AND PROGRAMS

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)

Limitation, 2017........................................    $277,200,000
Budget estimate, 2018...................................     283,000,000
Committee recommendation................................     283,000,000

                          PROGRAM DESCRIPTION

    This account provides the necessary resources to support 
motor carrier safety program activities and maintain the 
agency's administrative infrastructure. Funding supports 
nationwide motor carrier safety and consumer enforcement 
efforts, including Federal safety enforcement activities at the 
United States-Mexico border to ensure that Mexican carriers 
entering the United States are in compliance with FMCSA 
regulations. Resources are also provided to fund motor carrier 
regulatory development and implementation, information 
management, research and technology, safety education and 
outreach, and the 24-hour safety and consumer telephone 
hotline.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation on obligations and 
authority to liquidate an equal amount of contract 
authorization of $283,000,000 for FMCSA's Operations and 
Programs. The recommendation is $5,800,000 more than the fiscal 
year 2017 enacted level and equal to the budget request. Of the 
total limitation on obligations, $9,073,000 is for research and 
technology and $34,824,000 is for information management.
    Information Management.--The Committee provides roughly 
$40,000,000 annually for the Office of the Chief Information 
Officer [OCIO] to develop, implement, and maintain information 
technology systems and services that support FMCSA's safety 
mission. It is essential that this office sustain an IT 
environment that dynamically responds to evolving business 
requirements, while protecting privacy and security. At a 
minimum, the office should be able to clearly identify its 
strategic goals and performance objectives on an annual basis 
and long-term, 5-year framework in a capital investment plan. 
The office also needs to address key milestones, investment 
decisions, operational and lifecycle costs, as well as 
anticipated costs, cost overruns and cost savings, for IT 
investments to meet the agency's needs and the replacement of 
aging infrastructure. Based on the sparse budget justification 
and subsequent agency briefings, the Committee is concerned 
there is a lack of direction, accountability and transparency 
in how these resources are used or that they are being used 
effectively. Therefore, 50 percent of the allotment of funding 
for the OCIO shall be held by the Secretary until the 
Administrator submits a capital investment plan that meets 
these requirements to the House and Senate Committees on 
Appropriations.
    Bus Lease and Interchange Rule.--On June 16, 2017, FMCSA 
announced it was once again extending the compliance date for 
the final rule concerning the lease and interchange of 
passenger carrying motor vehicles based on issues raised in 
numerous petitions for reconsideration. The Committee is 
pleased by this action, but remains concerned that the agency 
has failed to complete its review of the rule in order to 
resolve the issues raised by petitioners, while ensuring the 
rule appropriately targets unsafe passenger carriers. The 
Committee directs FMCSA to resolve outstanding issues by 
modifying or removing the proposed rule prior to October 1, 
2017.
    Heavy Vehicle Speed Limiters.--In response to a 2006 
petition from a coalition of trucking industry and safety 
advocates, NHTSA and FMCSA issued a joint proposed rule on 
August 26, 2016 requiring speed limiter devices. The Committee 
directs the agencies to fully and expeditiously address all 
public comments. The final rule should address the impact of 
creating speed differentials on highways and consider the costs 
and benefits of applying the rule to existing heavy vehicles 
that are equipped with speed limiting devices.
    High-Risk Carriers.--In January 2016, FMCSA revised its 
scoring and standards for the inspection of high-risk carriers 
in response to a July 2014 Independent Review Team assessment 
and section 5305 of the FAST Act. Under revised FMCSA 
regulations, carriers identified as high risk must have a 
compliance review conducted within 90 days. The Committee is 
encouraged that the agency accelerated the timeline for high-
risk carrier inspections from 1 year to 90 days, particularly 
when the statute allows for a longer timeframe of 4 months. In 
fiscal year 2016, FMCSA met this requirement for over 97 
percent of the high-risk carriers in need of an investigation. 
The Committee expects the number of high-risk carrier 
inspections to continue to improve, particularly given that the 
pool of carriers that now fall into this status has 
substantially declined under the new criteria from 4,432 to 
967. The Committee directs the agency to provide the House and 
Senate Committees on Appropriations with an updated report on 
its ability to meet its requirements to evaluate high-risk 
carriers by April 15, 2018 for the preceding fiscal year.
    In fiscal year 2015, the Committee provided FMCSA with 
additional resources to improve the agency's ability to conduct 
oversight of carriers operating under consent agreements. On 
average, FMCSA manages between 100 and 150 active consent 
agreements at any time, allowing motor carriers to continue to 
operate under certain restrictions while corrections to 
deficiencies or violations are addressed. This investment was 
used to develop a consent agreement tracking system allowing 
FMCSA to dynamically manage risk, address the highest risk 
carriers more quickly, and decrease the cost to manage this 
compliance tool by 50 percent. Now that this system has been 
operationalized since 2016, the Committee directs the agency 
report to the House and Senate Committees on Appropriations on 
its performance, if the system succeeded in providing the 
expected efficiencies, and if additional enhancements and 
resources are necessary to assist with the monitoring and 
enforcement of high-risk carriers.
    Natural Gas Vehicle Regulations.--The Committee recognizes 
the significant growth and value in the market for natural gas 
as a transportation fuel and is aware that certain DOT 
regulations that address the safety of natural gas vehicles 
have not been updated to keep pace with new developments and 
the advancement of natural gas vehicles. Accordingly, the 
Department is encouraged to develop new safety regulations and 
inspection procedures for liquefied natural gas [LNG] fuel 
tanks and fuel systems on commercial motor vehicles, and revise 
and harmonize requirements for compressed natural gas [CNG] 
cylinders that address the inspection of such cylinders. The 
Department is also encouraged to work with industry and 
manufacturers to clarify and address the ability of bus 
manufacturers to continue to deploy buses that have roof-top 
mounted CNG cylinders. In addition, as there are no Federal 
regulations that prohibit the interstate movement of natural 
gas vehicles as it relates to the fuel stored onboard for 
motive power, the Secretary is encouraged to clarify through 
guidance that rules restricting access to bridges and tunnels 
in the case of an alternative fuel vehicle should not be any 
more restrictive than those addressing gasoline and diesel 
fueled vehicles, unless there is a determination of a 
significant risk to safety.

                               RESCISSION

                          (HIGHWAY TRUST FUND)

Appropriations, 2017....................................................
Budget estimate, 2018...................................................
Committee recommendation................................    -$13,914,757

                          PROGRAM DESCRIPTION

    As of May 31, 2017, there are $13,914,757 in unobligated 
carryover and recoveries of contract authority in this account.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a rescission of $13,914,757 from 
unobligated balances of funds, which is $13,914,757 greater 
than the budget request and the fiscal year 2017 enacted level.

                          MOTOR CARRIER SAFETY

                               RESCISSION

                          (HIGHWAY TRUST FUND)

Appropriations, 2017....................................................
Budget estimate, 2018...................................................
Committee recommendation................................     -$2,929,772

                          PROGRAM DESCRIPTION

    As of May 31, 2017, there are $2,929,772 in unobligated 
carryover and recoveries of contract authority in this account.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a rescission of $2,929,772 from 
unobligated balances of funds, which is $2,929,772 greater than 
the budget request and the fiscal year 2017 enacted level.

                     NATIONAL MOTOR CARRIER SAFETY

                               RESCISSION

                          (HIGHWAY TRUST FUND)

Appropriations, 2017....................................................
Budget estimate, 2018...................................................
Committee recommendation................................     -$9,419,390

                          PROGRAM DESCRIPTION

    The Committee recommends a rescission of $9,419,390 from 
unobligated balances of funds, which is $9,419,390 greater than 
the budget request and the fiscal year 2017 enacted level.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a rescission of $9,419,390 from 
unobligated balances of funds, which is $9,419,390 greater than 
the budget request and the fiscal year 2017 enacted level.

                      MOTOR CARRIER SAFETY GRANTS

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)

Limitation, 2017........................................    $367,000,000
Budget estimate, 2018...................................     374,800,000
Committee recommendation................................     461,800,000

                          PROGRAM DESCRIPTION

    This account provides the necessary resources for Federal 
grants to support State compliance, enforcement, and other 
programs. Grants are also provided to States for enforcement 
efforts at both the southern and northern borders to ensure 
that all points of entry into the United States are fortified 
with comprehensive safety measures; improvement of State 
commercial driver's license [CDL] oversight activities to 
prevent unqualified drivers from being issued CDLs; and the 
Performance Registration Information Systems and Management 
[PRISM] program, which links State motor vehicle registration 
systems with carrier safety data in order to identify unsafe 
commercial motor carriers.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation on obligations and 
authority to liquidate an equal amount of contract 
authorization of $374,800,000 for motor carrier safety grants. 
An additional $87,000,000 in obligation limitation is provided 
for modernization and maintenance of border facilities. The 
recommended limitation is $94,800,000 more than the fiscal year 
2017 enacted level and $87,000,000 more than the budget 
request. The Committee recommends a separate limitation on 
obligations for each grant program funded under this account 
with the funding allocation identified below.

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Motor carrier safety assistance program [MCSAP].........    $298,900,000
High priority activities program........................      43,100,000
Commercial motor vehicle operator grants program........       1,000,000
Commercial driver's license program implementation            31,800,000
 program................................................
Border facilities.......................................      87,000,000
------------------------------------------------------------------------

    Border Infrastructure.--In fiscal years 2013 and 2014, the 
Committee provided $41,000,000 for the first and second phase 
of the border facility capital improvement program for the 11 
port-of-entries [POEs] along the border. Prior to these 
improvements, FMCSA staff worked in facilities that had pest 
infestations, improper drainage, lack of security, lack of 
canopies or covering from the sun, and/or insufficient lighting 
for night inspections. To date, FMCSA has completed 
construction at four crossings and anticipates completing the 
remaining crossings by January 2018. In order to continue 
making progress along the border, the Committee recommendation 
includes $87,000,000 in additional obligation limitation to 
complete construction of the remaining 16 POEs. The Committee 
directs FMCSA to provide an annual update to its capital 
improvement program for border facilities as part of its 
congressional budget justification, including any changes to 
cost, scope, schedule, or other challenges it faces. The report 
should also include relevant safety inspection data.

                               RESCISSION

                          (HIGHWAY TRUST FUND)

Appropriations, 2017....................................................
Budget estimate, 2018...................................................
Committee recommendation................................    -$91,451,870

                          PROGRAM DESCRIPTION

    As of May 31, 2017, there are $178,451,870 in unobligated 
carryover and recoveries of contract authority in this account.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a rescission of $91,451,870 from 
unobligated balances of funds, which is $91,451,870 greater 
than the budget request and the fiscal year 2017 enacted level.

 ADMINISTRATIVE PROVISION--FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION

    Section 130 subjects the funds in this act to section 350 
of Public Law 107-87 in order to ensure the safety of all 
cross-border long haul operations conducted by Mexican-
domiciled commercial carriers.
    Section 131 requires FMCSA to send notice of 49 CFR 385.308 
violations by certified mail, registered mail, or some other 
manner of delivery that records receipt of the notice by the 
persons responsible for violations.

             National Highway Traffic Safety Administration


                          PROGRAM DESCRIPTION

    The National Highway Traffic Safety Administration [NHTSA] 
was established as a separate organizational entity in the 
Department of Transportation in March of 1970 to administer 
motor vehicle and highway safety programs. It was the successor 
agency to the National Highway Safety Bureau, which was housed 
in the Federal Highway Administration. NHTSA is responsible for 
motor vehicle safety, highway safety behavioral programs, motor 
vehicle information, and automobile fuel economy programs.
    NHTSA's mission is to reduce deaths, injuries, and economic 
losses resulting from motor vehicle crashes. To accomplish 
these goals, NHTSA establishes and enforces safety performance 
standards for motor vehicles and motor vehicle equipment, 
investigates safety defects in motor vehicles, and conducts 
research on driver behavior and traffic safety. NHTSA provides 
grants and technical assistance to State and local governments 
to enable them to con- duct effective local highway safety 
programs. Together with State and local partners, NHTSA works 
to reduce the threat of drunk, impaired, and distracted 
driving, and to promote policies and de- vices with 
demonstrated safety benefits including helmets, child safety 
seats, airbags, and graduated license. NHTSA establishes and 
ensures compliance with fuel economy standards, investigates 
odometer fraud, establishes and enforces vehicle anti-theft 
regulations, and provides consumer information on a variety of 
motor vehicle safety topics.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $908,629,000, including both 
budget authority and limitations on the obligation of contract 
authority. This funding is $9,490,000 more than the President's 
request and $2,718,000 less than the fiscal year 2017 enacted 
level. The following table summarizes Committee 
recommendations:

----------------------------------------------------------------------------------------------------------------
                                                                                   Highway trust
                                                                   General fund        fund            Total
----------------------------------------------------------------------------------------------------------------
Appropriation 2017..............................................    $180,075,000    $731,272,000    $911,347,000
Budget estimate, 2018...........................................     152,510,000     746,629,000     899,139,000
Committee recommendation........................................     162,000,000     746,629,000     908,629,000
----------------------------------------------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    These programs support traffic safety programs and related 
research, demonstrations, technical assistance, and national 
leadership for highway safety programs conducted by State and 
local governments, the private sector, universities, research 
units, and various safety associations and organizations. These 
highway safety programs emphasize alcohol and drug 
countermeasures, vehicle occupant protection, traffic law 
enforcement, emergency medical and trauma care systems, traffic 
records and licensing, State and community traffic safety 
evaluations, protection of motorcycle riders, pedestrian and 
bicyclist safety, pupil transportation, distracted driving 
prevention, young and older driver safety, and improved 
accident investigation procedures.

                        OPERATIONS AND RESEARCH

----------------------------------------------------------------------------------------------------------------
                                                                                   Highway trust
                                                                   General fund        fund            Total
----------------------------------------------------------------------------------------------------------------
Appropriation, fiscal year 2017.................................    $180,075,000    $145,900,000    $325,975,000
Budget estimate, 2018...........................................     152,510,000     149,000,000     301,510,000
Committee recommendation........................................     162,000,000     149,000,000     311,000,000
----------------------------------------------------------------------------------------------------------------

                        COMMITTEE RECOMMENDATION

    The Committee provides $311,000,000 for Operations and 
Research, which is $9,490,000 more than the President's budget 
request and $14,975,000 less than the fiscal year 2017 enacted 
level. Of the total amount recommended for Operations and 
Research, $162,000,000 is derived from the general fund and 
$149,000,000 is derived from the Highway Trust Fund. For 
vehicle safety research, the Committee recommendation includes 
$22,520,000 for rulemakings, $21,042,000 for enforcement, and 
$40,253,000 for research and analysis. For highway safety 
research and development, the Committee recommendation includes 
$55,035,000 for highway safety programs, and $39,941,000 for 
the National Center for Statistics and Analysis. The 
recommendation includes no additional FTE above those provided 
in previous fiscal years, but directs the Secretary to lift any 
hiring freeze that prevents the agency from reaching FTE levels 
appropriated by Congress. The Committee reminds the agency that 
staffing levels are determined by the Congress, not OMB.
    Autonomous Vehicles.--The Committee recommendation includes 
$10,100,000 for vehicle electronics and emerging technologies 
to support the development of autonomous vehicles and automated 
technologies. These technologies may prevent 94 percent of the 
roadway fatalities that are caused by human error while 
improving mobility options for rural America. The Committee 
remains concerned with cybersecurity in autonomous vehicles and 
urges the Department to continue to address this risk in the 
next update of the Federal Automated Vehicles Policy.
    The Committee is also concerned that low-level automated 
vehicles could lead to complacent and unresponsive drivers. The 
Committee encourages NHTSA to include guidance on driver 
education and advance driver notification specifications for 
low-level automated vehicles in the next update of the Federal 
Automated Vehicles Policy.
    The Committee is also concerned about the impact of 
advanced driver automation systems on driver cognition, 
specifically driver fatigue and situational awareness. The 
Committee directs NHTSA to work collaboratively with industry 
and academia to conduct research on the relationship between 
driver automation technologies and cognitive response. Since 
several automation systems with near-term deployment 
opportunity involve commercial vehicles, the Committee 
recommends this research initially focus on the trucking 
industry and include real-world simulation on closed test 
tracks where possible.
    The Committee is also concerned about the impacts of highly 
automated vehicles on the economy and labor market for 
professional drivers. GAO has initiated a study on the labor 
displacement impact, but while that study is being conducted, 
coordination between DOT and the Department of Labor could help 
adjust Federal labor programs and proactively ease transitions 
for displaced workers. The Committee directs DOT to coordinate 
with relevant Federal agencies and keep the Committee informed 
on such coordination.
    Plastics and Polymer Composite Materials.--The Committee 
recognizes the importance that plastics and polymer-based 
composite materials play in reducing vehicle weight. They 
provide vehicle manufacturers with innovative tools to reduce 
fuel consumption and, by association, vehicle emissions. As 
manufacturers plan for future fleets, composite materials offer 
benefits for meeting new targets established under NHTSA's 
vehicle fuel efficiency rules. At the same time, the Committee 
recognizes that composite manufacturing is a new and growing 
industry, providing highly skilled jobs in the automotive 
industry. The Committee directs NHTSA to use funding provided 
for the Fuel Economy program to accelerate the advancement of 
plastic and polymer composites, including testing and 
evaluation techniques, while validating the safety performance 
of polymer-based composites in structural applications for the 
automotive industry. This research will help facilitate a 
foundation of cooperation between DOT, the Department of 
Energy, and industry stakeholders for the development of 
safety-centered approaches for future light-weight automotive 
design.
    Impaired Driving.--The Committee remains concerned about 
the increasing rates of impaired driving, particularly in 
States that adopt measures to decriminalize marijuana. The use 
of marijuana before or while driving is a critical public 
safety issue and the Committee directed NHTSA in Senate Report 
114-253 to conduct a study of marijuana-impaired driving. The 
Committee recognizes the importance of impaired driving 
countermeasures at the community level in protecting public 
safety, and encourages NHTSA to expand its efforts with law 
enforcement to increase awareness and use of Drug Recognition 
Expert [DRE] and Advanced Roadside Impaired Driving Enforcement 
[ARIDE] training, particularly in States that have adopted 
recreational or medicinal marijuana laws. In order to further 
efforts to provide law enforcement with advanced training and 
skills to detect impaired driving, the Committee directs NHTSA 
to encourage and work with States to use impaired driving 
countermeasures grants and funds transferred to section 402 
grants through the transfer authority in 23 U.S.C. 405(a)(8) 
for DRE and ARIDE training.
    The Committee further directs the Department to conduct a 
national survey, in partnership with one or more qualified 
universities, to examine and understand the behavioral factors 
that influence a driver's willingness to drive while impaired. 
The survey shall be based on a standard definition of traffic 
safety culture that can be operationalized to predict the 
intention to drive impaired. Analyses guided by this model 
would inform local and regional safety programs to achieve a 
sustainable reduction in impaired driving, and will support our 
Nation's goal to achieve zero traffic fatalities.
    Tire Efficiency.--The FAST Act includes three tire-related 
provisions under section 24331, the ``Tire Efficiency, Safety, 
and Registration Act of 2015'' or the ``TESR Act''. The 
provisions will contribute significantly to consumer safety, 
vehicle fuel economy and the competitiveness of the U.S. tire 
manufacturing industry and deserve the Department's timely 
attention and resources. The Committee encourages the Secretary 
to implement these regulations promptly and directs the 
Department to submit a report to the House and Senate 
Committees on Appropriations within 60 days after enactment of 
this act on the Department's schedule and plan for promulgating 
these regulations. Further, the Committee urges DOT to move 
forward with promulgating its pending updates to passenger Tire 
Pressure Monitoring System [TPMS] standards as required by 
section 24115 of the FAST Act. The risk of unintentional reset 
or recalibration in some models of TPMS is a concern and DOT 
should not delay in taking action on this issue.
    Drunk Driving Prevention.--NHTSA has partnered with leading 
automobile manufacturers in the Automotive Coalition for 
Traffic Safety on an ambitious research program to develop in-
vehicle technology to prevent alcohol-impaired driving that is 
publicly acceptable, unobtrusive for drivers below the legal 
limit of .08 BAC, reliable, and relatively inexpensive. The 
FAST Act provides $21,248,000 between fiscal year 2017 and 2020 
for in-vehicle alcohol detection device research. The Committee 
continues to strongly support this promising research 
partnership, which has the potential to prevent thousands of 
drunk-driving deaths annually. The Committee recommendation 
includes $5,312,000 for continuation of this research in fiscal 
year 2018.
    Drunk Driving Fatalities.--The Committee is concerned about 
increasing rates of impaired driving and the increase in 
alcohol-impaired driving fatalities on our highways. Crashes on 
U.S. roadways claimed 35,092 lives in 2015, an increase of 
2,348 fatalities (7.2%) over 2014. Alcohol-impaired driving 
fatalities increased by 3.2 percent, from 9,943 in 2014 to 
10,265 in 2015. Drunk Driving fatalities account for 
approximately one-third of all the deaths on our nation's 
highways. While drunk driving fatalities on our roadways have 
decreased by 51 percent since 1982, unfortunately the downward 
trend line for drunk driving fatalities changed course in 2015 
and has reportedly continued that deadly upward trend in 2016. 
The Committee encourages NHTSA to review its efforts and 
initiatives in this arena and to work with the Committee and 
interested stakeholders to reverse the growing incidence of 
drunk driving and the increase in alcohol-related fatalities on 
our highways.
    Child Hyperthermia Prevention.--The Committee continues to 
recognize the severe child safety crisis involving children 
left alone in motor vehicles who succumb to hyperthermia, and 
has favorably cited the awareness programs conducted by NHTSA. 
In the 19 years since records have been maintained, more than 
700 children, mostly 3 years old or younger, have died in this 
tragic way. While progress was seen in 2014 and 2015, there 
were 39 deaths in 2016, and several children have already died 
early in 2017. The Committee directs NHTSA to continue and 
expand its public education and outreach efforts on child hot 
car death prevention through a public call to action 
encouraging public messaging and involvement from a broad group 
of organizations, government agencies, medical professionals 
and others who regularly interact with parents and the public. 
The campaign should focus on parents and caregivers who 
transport children, and also to encourage bystanders to take 
action when they see children alone in cars. The Committee 
urges the campaign commence earlier in the year compared to 
prior campaigns. In addition to public awareness, the Committee 
urges NHTSA to continue to pursue technological solutions that 
can serve as a reminder to parents to remove children from the 
rear seat prior to leaving their vehicle in coordination with 
industry. The Committee is aware that NHTSA published a study 
of unattended child reminder warning technology in July 2015. 
Because of ongoing technological advances, the Committee 
directs NHTSA to update the study in coordination with industry 
regarding currently available and future technology that can 
serve as a reminder to parents to remove children from the rear 
seat prior to leaving their vehicle. To prevent fatalities, 
education and technology work hand in hand to develop multiple 
barriers of prevention.

                     HIGHWAY TRAFFIC SAFETY GRANTS

                (LIQUIDATION OF CONTRACT AUTHORIZATION)

                      (LIMITATION ON OBLIGATIONS)

                          (HIGHWAY TRUST FUND)

Limitation, 2017........................................    $585,372,000
Budget estimate, 2018...................................     597,629,000
Committee recommendation................................     597,629,000

                          PROGRAM DESCRIPTION

    The most recent surface transportation authorization, the 
FAST Act, reauthorizes the section 402 State and community 
formula grants, the high visibility enforcement grants, and the 
consolidated National Priority Safety Program which consists of 
occupant protection grants, State traffic safety information 
grants, impaired driving countermeasures grants, distracted 
driving grants, motorcycle safety grants, State graduated 
driver license grants, and nonmotorized safety grants.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation on obligations and 
authority to liquidate an equal amount of contract 
authorization of $597,629,000 for the highway traffic safety 
grant programs funded under this heading. The recommended 
limitation is equal to the budget estimate and $12,257,000 
above the fiscal year 2017 enacted level.
    The Committee continues to recommend prohibiting the use of 
section 402 funds for construction, rehabilitation or 
remodeling costs, or for office furnishings and fixtures for 
State, local, or private buildings or structures.
    The authorized funding for administrative expenses and for 
each grant program is as follows:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
Highway Safety Programs (section 402)...................    $261,200,000
National Priority Safety Programs (section 405).........     280,200,000
High Visibility Enforcement Program.....................      29,900,000
Administrative Expenses.................................      26,329,000
------------------------------------------------------------------------

      ADMINISTRATIVE PROVISIONS--NATIONAL HIGHWAY TRAFFIC SAFETY 
                             ADMINISTRATION

    Section 140 makes available $130,000 of obligation 
authority for section 402 of title 23 U.S.C. to pay for travel 
and expenses for State management reviews and highway safety 
staff core competency development training.
    Section 141 exempts obligation authority, made available in 
previous public laws, from limitations on obligations for the 
current year.

                    Federal Railroad Administration

    The Federal Railroad Administration [FRA] became an 
operating Administration within the Department of 
Transportation on April 1, 1967. It incorporated the Bureau of 
Railroad Safety from the Interstate Commerce Commission, the 
Office of High Speed Ground Transportation from the Department 
of Commerce, and the Alaska Railroad from the Department of the 
Interior. FRA is responsible for planning, developing, and 
administering programs to achieve safe operating and mechanical 
practices in the railroad industry. Grants to the National 
Railroad Passenger Corporation [Amtrak] and other financial 
assistance programs to rehabilitate and improve the railroad 
industry's physical infrastructure are also ad- ministered by 
the Federal Railroad Administration.

                         SAFETY AND OPERATIONS

Appropriations, 2017....................................    $218,298,000
Budget estimate, 2018...................................     199,000,000
Committee recommendation................................     210,000,000

                          PROGRAM DESCRIPTION

    The Safety and Operations account provides support for FRA 
rail safety activities and all other administrative and 
operating activities related to staff and programs.

                        COMMITTEE RECOMMENDATION

    The Committee recognizes the importance of taking a 
holistic approach to improving railroad safety and supports a 
comprehensive strategy of data-driven regulatory and inspection 
efforts, proactive approaches to identify and mitigate risks, 
and strategic capital investments in order to improve safety.
    The Committee recommends $210,000,000 for Safety and 
Operations for fiscal year 2018, which is $11,000,000 more than 
the budget request and $8,298,000 less than the fiscal year 
2017 enacted level. The bill specifies that $15,900,000 shall 
remain available until expended to cover the cost of the 
Automated Track Inspection Program, the Railroad Safety 
Information System, research and development activities, and 
contract support. The Committee recommendation includes 2 FTE 
and $283,000 for salaries and benefits for the Office of 
Governmental Affairs and includes no additional FTE above those 
provided in previous fiscal years for all other offices. The 
Committee is concerned about the needless delays in hiring 
staff, particularly inspectors, up to the levels provided by 
the Committee, and reminds the agency that staffing levels are 
determined by Congress, not OMB.
    Positive Train Control.--The Committee is encouraged by the 
efforts of commuter railroads to develop and implement positive 
train control [PTC] and encourages the Department to make 
certification a priority and to provide the necessary technical 
assistance to commuter railroads as they move toward full 
implementation. The Committee remains concerned that 
implementation of PTC may be slowed or impaired by conflicting 
government requirements at the Federal, State, and local levels 
with regards to permits and historical and environmental 
preservation requirements. In order to implement PTC in as 
timely a manner as possible to meet the deadline for 
implementation on December 31, 2018, the Committee encourages 
the Secretary to exercise discretion and provide flexibility to 
recipients in administering grants authorized by section 3028 
of the FAST Act. Specifically, the Committee encourages the 
Secretary to allow recipients to use grant funds for non-
construction purposes, such as the installation of on-board 
locomotive apparatuses, back office server technology, and 
other core functionalities of PTC. The Department may provide 
this flexibility to grant recipients, to the extent allowed by 
current law, even if construction-related PTC work is delayed 
due to permitting requirements, uncompleted National 
Environmental Policy Act [NEPA] clearances, or uncompleted 
historic preservation clearances. Additionally, grant 
recipients should not be disqualified from receiving grant 
funds for any pre-award expenditures as the timing of grant 
awards is frequently incompatible with project schedules 
necessary to meet mandated completion milestones.
    Bench Test Equipment.--The Committee recognizes the crucial 
role test equipment plays in rail safety and encourages FRA to 
adopt standardized Bench Test Equipment [BTE] to replace 
numerous legacy and aging test and diagnostic equipment. 
Standardization on proven performance verification methods 
could provide increased safety for the traveling public, 
shorter schedules for new technology deployments, such as PTC 
or communications-based train control, reduce down time related 
to faulty systems, and reduce or eliminate serious accidents. 
Therefore, the Committee encourages DOT to work with the 
private sector to perform an extended business case analysis 
supporting standardized performance verification and 
diagnostics for safety critical electronics systems. The study 
should involve DOT and local transit authorities implementing 
an interoperable open architecture BTE. Similar efforts have 
proven successful in reducing overall cost while increasing 
safety when sponsored by the FAA and the Department of Defense.

                   RAILROAD RESEARCH AND DEVELOPMENT

Appropriations, 2017....................................     $40,100,000
Budget estimate, 2018...................................      39,100,000
Committee recommendation................................      40,100,000

                          PROGRAM DESCRIPTION

    The Railroad Research and Development program provides 
science and technology support for FRA's rail safety rulemaking 
and enforcement efforts. It also supports technological 
advances in conventional and high-speed railroads, as well as 
evaluations of the role of railroads in the Nation's 
transportation system.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $40,100,000 
for railroad Research and Development, which is $1,000,000 more 
than the budget request and equal to the fiscal year 2017 
enacted level.
    Short Line Safety Institute.--Short Line railroads operate 
approximately 50,000 miles of track, which is one-third of the 
national railroad network. They are an important feeder system 
for the larger Class I railroads, helping connect local 
communities to the national railroad network. There are 550 
short line railroads operating in the United States, 73 of 
which currently handle some volume of energy products. The 
safety management system of short lines is extremely varied. 
Many small railroads with limited personnel and limited 
financial capital need additional resources to conduct 
hazardous materials safety training and other operational 
safety assessments. The Committee supports FRA's efforts, in 
partnership with short line and regional railroads, to continue 
to build a stronger, more sustainable safety culture in this 
segment of the rail industry. To date, several Class III 
railroads, including those that transport crude oil, have 
received safety culture assessments in order to improve 
railroad safety culture. The Committee's recommendation 
includes $2,000,000 to fund the Short Line Safety Institute and 
its mission, including continued efforts to improve the safe 
transportation of crude oil, other hazardous materials, 
freight, and passenger rail.
    Tank Car Research.--The Committee's recommendation includes 
$2,000,000 to conduct tank car research activities related to 
the safe transportation of energy products in partnership with 
other Federal agencies.

       RAILROAD REHABILITATION AND IMPROVEMENT FINANCING PROGRAM

                          PROGRAM DESCRIPTION

    The Railroad Rehabilitation and Improvement Financing 
[RRIF] program was established by Public Law 109-178 to provide 
direct loans and loan guarantees to State and local 
governments, Government-sponsored entities, and railroads. 
Credit assistance under the program may be used for 
rehabilitating or developing rail equipment and facilities.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation removes the restriction on 
using Federal funds to pay for the credit risk premium for RRIF 
loans and directs the Secretary to identify potential sources 
of Federal funding for the CRP to potential applicants. The 
Committee directs FRA to continue to provide a summary of loan 
activity for the preceding fiscal years in its fiscal year 2019 
budget justification. At a minimum, FRA should detail the 
number of loans pending and issued, and the processing time for 
these loans.
    Credit Risk Premium.--The original authorization of the 
RRIF program required the Department to return the credit risk 
premium [CRP], and interest accrued thereon, to borrowers once 
the corresponding loan was repaid and all obligations attached 
to a cohort of loans have been satisfied. Returning the CRP 
could allow borrowers to reinvest their own funds for critical 
improvements to railroad infrastructure across the Nation. To 
date, DOT has not returned any CRP to borrowers that have 
repaid their loans because the Department has not clarified its 
definition of cohorts. The Committee directs the Secretary to 
define cohorts on a fiscal year basis, consistent with 
virtually every loan or loan guarantee program in the Federal 
government. The Committee further directs the Secretary to 
define each cohort as the RRIF loans provided for that fiscal 
year, creating individual fiscal year cohorts for each fiscal 
year in which a loan was provided from the date of enactment of 
Public Law 105-178 to the date of enactment of Public Law 114-
94. The Committee also directs the Secretary not to treat the 
repayment of a loan after the date of enactment of Public Law 
114-94 as precluding, limiting, or negatively affecting the 
satisfaction of the obligation of its cohort for a fiscal year 
prior to Public Law 114-94. The Committee directs the Secretary 
to repay the CRP to applicants in a timely manner, if 
applicable, or to provide a written explanation within 90 days 
of enactment of this act to the House and Senate Committees on 
Appropriations explaining why the CRP for loans that have been 
repaid should not be returned to the borrower.

    CONSOLIDATED RAIL INFRASTRUCTURE AND SAFETY IMPROVEMENTS GRANTS

Appropriations, 2017....................................     $68,000,000
Budget estimate, 2018...................................      25,000,000
Committee recommendation................................      92,547,000

                          PROGRAM DESCRIPTION

    The Consolidated Rail Infrastructure and Safety 
Improvements [CRISI] Grants provide support for projects 
authorized in section 11301 of Public Law 114-94.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $92,547,000 for the CRISI Grants, 
which is $67,547,000 more than the budget request and 
$24,547,000 more than the fiscal year 2017 enacted level. The 
funding is eligible for activities authorized under 49 U.S.C. 
24407, of which at least 25 percent shall be available for 
projects in rural areas. Of the total amount provided, 
$35,547,000 shall be for eligible projects under 49 U.S.C. 
24407(c)(2) that contribute to the initiation or restoration of 
intercity passenger rail service.

       FEDERAL-STATE PARTNERSHIP FOR STATE OF GOOD REPAIR GRANTS

Appropriations, 2017....................................     $25,000,000
Budget estimate, 2018...................................      25,945,000
Committee recommendation................................      26,000,000

                          PROGRAM DESCRIPTION

    The Federal-State Partnership for State of Good Repair 
Grant program provides support for capital projects that reduce 
the state of good repair backlog with respect to qualified 
railroad assets.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $26,000,000 for the Federal-State 
Partnership for State of Good Repair Grants, which is $55,000 
more than the budget request and $1,000,000 more than the 
fiscal year 2017 enacted level. The Committee is aware of the 
growing backlog of state of good repair and improvement needs 
on many of the country's important passenger routes. The 
Committee notes that regardless of the title of this program, 
eligible projects under 49 U.S.C. 24911 include capital 
projects to replace existing assets with assets that increase 
capacity or provide a higher level of service, as well as 
capital projects to ensure that service can be maintained while 
existing assets are brought to a state of good repair. 
Therefore, certain projects may be eligible for funding 
provided for this program as well as funding provided under the 
Capital Investment Grant program as authorized under 49 U.S.C. 
5309.

                   RESTORATION AND ENHANCEMENT GRANTS

Appropriations, 2017....................................      $5,000,000
Budget estimate, 2018...................................................
Committee recommendation................................       5,000,000

                          PROGRAM DESCRIPTION

    The Restoration and Enhancement Grant program provides 
support for operating assistance and capital investments to 
initiate, restore, or enhance intercity passenger rail service.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $5,000,000 for Restoration and 
Enhancement Grants, which is $5,000,000 more than the budget 
request and equal to the fiscal year 2017 enacted level. The 
Committee expects non-Federal stakeholders to make financial or 
in-kind contributions to projects receiving awards under this 
program.

          THE NATIONAL RAILROAD PASSENGER CORPORATION [AMTRAK]

Appropriations, 2017....................................  $1,495,000,000
Budget estimate, 2018...................................     760,000,000
Committee recommendation................................   1,600,000,000

                          PROGRAM DESCRIPTION

    The National Railroad Passenger Corporation (Amtrak) 
operates intercity passenger rail services in 46 States and the 
District of Columbia, in addition to serving as a contractor in 
various capacities for several commuter rail agencies. Congress 
created Amtrak in the Rail Passenger Service Act of 1970 
(Public Law 91-518) in response to private carriers' inability 
to profitably operate intercity passenger rail service. 
Thereafter, Amtrak assumed the common carrier obligations of 
the private railroads in exchange for the right to priority 
access to their tracks for incremental cost.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total appropriation of 
$1,600,000,000 for Amtrak, which is $840,000,000 more than the 
budget request and $105,000,000 more than the fiscal year 2017 
enacted level. The Committee directs FRA to make a timely 
disbursement of funds in accordance with the FAST Act to 
maximize the Corporation's ability to efficiently manage its 
cash flow. Each year, Amtrak is responsible for significant 
one-time cash overflows at the beginning of the calendar year. 
In order to help facilitate these payments, the Committee 
encourages the FRA to release adequate funding in the first 
quarter of the fiscal year in order to efficiently manage 
Amtrak's financial obligations in a timely manner.
    Budget, and Business Plan.--The Committee continues to 
direct Amtrak to submit a business plan in accordance with 
section 11203(b) of Public Law 114-94 for fiscal year 2018. The 
Corporation shall continue to submit a budget request for 
fiscal year 2019 to the House and Senate Committees on 
Appropriations in similar format and substance to those 
submitted by executive agencies of the Federal Government.
    FRA Grant Administration and Report Streamlining.--The 
Committee recognizes that Amtrak fields a myriad of grant 
requirements from the FRA. The Committee is supportive of 
robust oversight by the FRA; however, to the extent 
practicable, the FRA is encouraged to work with Amtrak to 
reduce duplication and streamline their reporting requirements.
    New York Penn Station.--New York Penn Station is the 
busiest railroad station in the Nation, with more than 1,300 
weekday train movements resulting in 650,000 passenger trips on 
Amtrak, Long Island Rail Road [LIRR], NJ TRANSIT [NJT], and 
local transit subways. Amtrak's trains comprised 20.5 percent 
of train movements, making it a minority user of the asset, but 
has contributed 70 percent of the investments made in shared-
use infrastructure of Penn Station and the adjacent tunnels. 
Amtrak is currently implementing the New York Penn Station 
Infrastructural Renewal program, a series of major track and 
switch renewal projects aimed at strengthening and improving 
operations and preparedness at Penn Station. Years of state-of-
good-repair work is being accelerated and compressed into a few 
weeks, which is expected to result in less disruptive 
maintenance for years to come. All users of Penn Station, 
including Amtrak, LIRR, and NJT, will benefit from the enhanced 
reliability that stems for these critical improvements. The 
Committee is concerned that New Jersey and New York have 
threatened to withhold critical safety funding for the NEC and 
Penn Station as a result of the necessary disruptions caused by 
the renewal program, which would reduce investment in Penn 
Station and adversely impact Amtrak, LIRR, and NJT passengers. 
Such action may also be in violation of the agreements between 
Amtrak, the commuter authorities, and the Federal mandate for 
users of NEC assets to fully compensate owners of such assets 
for their use.
    Food and Beverage.--Since 2015, the Committee has required 
Amtrak to report on its savings initiatives, and the FAST Act 
formalized this planning and implementation process providing 
specific requirements to eliminate operating losses associated 
with providing food and beverage services on board Amtrak 
trains by 2020. The Committee urges Amtrak to continue to take 
actions, such as increasing cashless transactions, continuing 
to reduce labor costs, and expeditiously beginning the third 
party contracting pilot, that would allow it to produce a net 
loss of zero on its food and beverage services ahead of the 
FAST Act deadline. The Committee directs Amtrak to provide a 
report to the House and Senate Committees on Appropriations no 
later than 120 days after enactment of this act comparing the 
actual fiscal year 2017 savings with Amtrak projections.

     NORTHEAST CORRIDOR GRANTS TO THE NATIONAL RAILROAD PASSENGER 
                              CORPORATION

    The Committee recommends $358,400,000 for Northeast 
Corridor Grants to Amtrak. The funding level provided includes 
no more than $5,000,000 for the use of the Northeast Corridor 
Commission established under section 24905 of title 49, United 
States Code.
    Northeast Corridor.--The Committee commends Amtrak's 
commitment to making important capital improvements, 
particularly along the Northeast Corridor. Superstorm Sandy 
caused serious damage to the current Amtrak Hudson River 
Tunnels, necessitating their replacement in less than 20 years. 
Without the completion of the Northeast Corridor Gateway 
Project, Amtrak predicts severe service cuts for both intercity 
and commuter service. Accordingly, the Committee encourages 
Amtrak to use funding provided to continue the Northeast 
Corridor Gateway Project.

 NATIONAL NETWORK GRANTS TO THE NATIONAL RAILROAD PASSENGER CORPORATION

    The Committee recommends $1,241,600,000 for National 
Network Grants to Amtrak. The funding level provided includes 
no more than $2,000,000 for use of the State-Supported Route 
Committee established in the FAST Act.
    Gulf Coast Rail Service.--Section 11304 of the FAST Act 
required the Gulf Coast Working Group [GCWG], consisting of 
FRA, Amtrak, the Southern Rail Commission [SRC], railroad 
carriers, State and local governments, and others, to evaluate 
all options for restoring passenger rail service in the gulf 
coast region, select a preferred option for service, develop an 
inventory and cost estimate of capital projects to restore 
service, and identify Federal and non-Federal funding to 
restore service. The GCWG report, released on July 17, 2017, 
identified the preferred options as a daily long-distance route 
that extends Amtrak's existing City of New Orleans service from 
New Orleans, Louisiana to Orlando, Florida and a new daily 
State-supported route from New Orleans, Louisiana to Mobile, 
Alabama. The preliminary capital cost estimates for restoring 
service is $117,672,000, with annual operating cost estimates 
at $5,480,000 for the long-distance route and $4,000,000 for 
the State-supported route. These cost estimates are dwarfed by 
the $2,300,000,000 estimate previously determined by industry, 
which also raised concerns with on-time performance [OTP] 
requirements and delays at drawbridges. The Committee believes 
the GCWG report more accurately reflects these concerns and is 
a more realistic cost estimate, but directs Amtrak and DOT to 
continue working with the host railroad and the Coast Guard to 
refine cost estimates.
    The GCWG report also highlights potential sources of 
Federal funding for restoration of Gulf Coast passenger rail 
service including RRIF, TIFIA, TIGER, CRISI, Restoration and 
Enhancement, Nationally Significant Freight and Highway 
Projects, Railway-Highway Crossings, and fiscal year 2006 Gulf 
Coast Funds. The Committee recommendation includes $35,547,000 
in CRISI for capital projects and $5,000,000 in Restoration and 
Enhancement Grants for operating assistance for projects that 
contribute to the initiation or restoration of intercity 
passenger rail service. The Committee recommendation also 
includes a provision allowing States with appropriate 
agreements with Amtrak to use CMAQ funds for operating 
assistance. The Committee expects Amtrak, SRC, and the gulf 
coast region to seek funding through these programs for the 
preferred routes and encourages the Secretary to prioritize 
funding provided by this Committee for these routes. In order 
to expeditiously return passenger rail service to the Gulf 
Coast, the Committee further directs the Secretary to report to 
the House and Senate Committees on Appropriations within 180 
days of enactment on progress made with implementing the 
recommendations identified in section 5 of the GCWG report. In 
addition, the Committee recommendation allows up to $5,000,000 
of the Grant to the National Network to be available for 
administrative and other expenses related to cases Amtrak may 
bring before STB related to the restoration of passenger rail 
service over routes previously served by Amtrak.
    Long-Distance Routes.--Long-distance routes provide much 
needed transportation access for 4.7 million riders in 325 
communities in 40 States. Providing diversified transportation 
options is important to the growth of the Nation's economy, 
especially in rural areas where options are limited. The budget 
request includes a proposal to terminate all long-distance 
service. Rather than saving money, the proposal would actually 
increase costs for Amtrak in fiscal year 2018 by $423,400,000 
as a result of mandatory labor payments and increased operating 
losses to Amtrak. There are significant shared and system 
related costs which would remain and need to be shifted to NEC 
or State-supported routes. Many State-supported routes would be 
unable to pay for these cost increases and could be eliminated 
if the budget request was enacted. The Committee is dismayed at 
the lack of analysis and forethought behind the budget request 
to eliminate long-distance routes and rejects it.
    Passenger Rail in the Bakken Region.--The Committee 
recognizes the importance of improving the financial viability 
of Amtrak's Empire Builder and the growth in demand for 
passenger rail service in the Bakken region. The Committee 
directs Amtrak to continue to work with local officials, taking 
into account the results of the updated Amtrak Empire Builder 
feasibility study, to address the prospect of adding new 
passenger rail stops that generate revenue and reduce operating 
costs of the Empire Builder and other national network routes.

                       ADMINISTRATIVE PROVISIONS

    Section 150 limits overtime payments to employees at Amtrak 
to $35,000 per employee. However, Amtrak's president may waive 
this restriction for specific employees for safety or 
operational efficiency reasons. If the cap is waived, Amtrak 
must notify the House and Senate Committees on Appropriations 
within 30 days and specify the reason for such waiver.

                     Federal Transit Administration


                          PROGRAM DESCRIPTION

    The Federal Transit Administration [FTA] was established as 
a component of the Department of Transportation by 
Reorganization Plan No. 2 of 1968, effective July 1, 1968, 
which transferred most of the functions and programs under the 
Federal Transit Act of 1964, as amended (78 Stat. 302; 49 
U.S.C. 1601 et seq.), from the Department of Housing and Urban 
Development. The missions of the FTA are: to help develop 
improved mass transportation systems and practices; to support 
the inclusion of public transportation in community and 
regional planning to support economic development; to provide 
mobility for Americans who depend on transit for transportation 
in both metropolitan and rural areas; to maximize the 
productivity and efficiency of transportation systems; and to 
provide assistance to State and local governments and agencies 
in financing such services and systems.

                        COMMITTEE RECOMMENDATION

    Under the Committee recommendations, a total program level 
of $12,129,428,407 is provided for FTA programs in fiscal year 
2018. The recommendation is $903,565,000 more than the budget 
request and $285,073,636 less than the fiscal year 2017 enacted 
level.

----------------------------------------------------------------------------------------------------------------
                                                                                Highway trust
                                                              General fund          fund              Total
----------------------------------------------------------------------------------------------------------------
Appropriation 2017........................................    $2,680,796,000    $9,733,706,043   $12,414,502,043
Budget estimate, 2018.....................................     1,492,510,000     9,733,353,407    11,225,863,407
Committee recommendation..................................     2,396,075,000     9,733,353,407    12,129,428,407
----------------------------------------------------------------------------------------------------------------

                        ADMINISTRATIVE EXPENSES

Appropriations, 2017....................................    $113,165,000
Budget estimate, 2018...................................     110,795,000
Committee recommendation................................     113,165,000

                          PROGRAM DESCRIPTION

    Administrative expenses fund personnel, contract resources, 
in- formation technology, space management, travel, training, 
and other administrative expenses necessary to carry out FTA's 
mission to support, improve, and help ensure the safety of 
public transportation systems.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $113,165,000 from the 
general fund for the agency's salaries and administrative 
expenses. The recommended level of funding is $2,370,000 more 
than the budget request and equal to the fiscal year 2017 
enacted level.
    Project Management Oversight [PMO] Activities.--The 
Committee directs FTA to continue to submit to the House and 
Senate Committees on Appropriations the quarterly PMO reports 
for each project with a full funding grant agreement.
    Full Funding Grant Agreements [FFGAs].--Section 5309(k) of 
title 49, U.S.C. requires that FTA notify the House and Senate 
Committees on Appropriations, as well as the House Committee on 
Transportation and Infrastructure and the Senate Committee on 
Banking, Housing, and Urban Affairs, 30 days before executing a 
FFGA. In its notification to the House and Senate Committees on 
Appropriations, the Committee directs FTA to submit the 
following information: (1) a copy of the proposed FFGA; (2) the 
total and annual Federal appropriations required for the 
project; (3) the yearly and total Federal appropriations that 
can be planned or anticipated for existing FFGAs for each 
fiscal year through 2019; (4) a detailed analysis of annual 
commitments for current and anticipated FFGAs against the 
program authorization, by individual project; (5) a financial 
analysis of the project's cost and sponsor's ability to finance 
the project, which shall be conducted by an independent 
examiner and which shall include an assessment of the capital 
cost estimate and finance plan; (6) the source and security of 
all public and private sector financing; (7) the project's 
operating plan, which enumerates the project's future revenue 
and ridership forecasts; and (8) a listing of all planned 
contingencies and possible risks associated with the project.
    The Committee also directs FTA to inform the House and 
Senate Committees on Appropriations in writing 30 days before 
approving schedule, scope, or budget changes to any FFGA. 
Correspondence relating to all changes shall include any budget 
revisions or pro- gram changes that materially alter the 
project as originally stipulated in the FFGA, including any 
proposed change in rail car procurement.
    The Committee directs FTA to continue to provide a monthly 
Capital Investment Grant program update to the House and Sen- 
ate Committees on Appropriations, detailing the status of each 
project. This update should include anticipated milestone 
schedules for advancing projects, especially those within 2 
years of a proposed FFGA. It should also highlight and explain 
any potential cost and schedule changes affecting projects.
    Staffing Levels.--The Committee provided funding for new 
safety-critical positions in fiscal year 2017 for office of 
Transit Safety and Oversight [TSO] in order to provide the 
necessary oversight of WMATA and other transit agencies. While 
FTA is no longer under a hiring freeze, the Committee is 
concerned about the needless delays in hiring critical staff, 
particularly in TSO, up to the levels provided by the 
Committee. The Committee directs FTA to hire staff based on 
funding levels provided by Congress rather than future budget 
requests, and reminds the agency that staffing levels are 
determined by Congress, not OMB.
    Coordinating Council on Access and Mobility.--The Committee 
directs the Coordinating Council on Access and Mobility to 
submit within 180 days of enactment of this act a plan and 
report to the House and Senate Committees on Appropriations on 
options to eliminate duplication, provide efficient services 
for people in need, and increase coordination between the 
various Federal departments' operating programs for 
transportation-disadvantaged persons.

                             FORMULA GRANTS

                  (LIQUIDATION OF CONTRACT AUTHORITY)

                      (LIMITATION ON OBLIGATIONS)

------------------------------------------------------------------------
                                                           Obligation
                                                           limitation
                                                          (trust fund)
------------------------------------------------------------------------
Appropriations, 2017..................................    $9,733,706,043
Budget estimate, 2018.................................     9,733,353,407
Committee recommendation..............................     9,733,353,407
------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    Communities use Formula Grants funds for bus and railcar 
purchases, facility repair and construction, maintenance, and 
where eligible, planning and operating expenses. The Formula 
Grants account includes funding for the following programs: 
transit-oriented development; planning programs; urbanized area 
formula grants; enhanced mobility for seniors and individuals 
with disabilities; a pilot program for enhanced mobility; 
formula grants for rural areas; public transportation 
innovation; technical assistance and workforce development, 
including a national transit institute; a bus testing facility; 
the national transit database; state of good repairs grants; 
bus and bus facilities formulas grants; and growing States and 
high-density States formula grants. Set-asides from formula 
funds are directed to a grant program for each State with rail 
systems not regulated by the Federal Railroad Administration to 
meet the requirements for a State Safety Oversight program. The 
account also provides funding to support passenger ferry 
services and public transportation on Indian reservations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends limiting obligations in the 
transit formula and bus grants account in fiscal year 2018 to 
$9,733,353,407. The recommendation is equal to the budget 
request and $352,636 more than the fiscal year 2017 enacted 
level. The recommendation is also consistent with the currently 
authorized level under the FAST Act. The Committee recommends 
$10,300,000,000 in authority to liquidate contract 
authorizations. This amount is sufficient to cover outstanding 
obligations from this account. The following table displays the 
distribution of obligation limitation among the program 
categories of formula grants:

                 DISTRIBUTION OF OBLIGATION LIMITATION AMONG MAJOR CATEGORIES OF FORMULA GRANTS
----------------------------------------------------------------------------------------------------------------
                                                                                      Fiscal year 2018
    Formula grants (obligation                                             -------------------------------------
           limitation)                Section number      Fiscal year 2017    Administration       Committee
                                                                                 proposal          assumption
----------------------------------------------------------------------------------------------------------------
Transit Oriented Development.....  20005(b)............        $10,000,000        $10,000,000        $10,000,000
Planning Programs................  5305................        133,398,933        136,200,311        136,200,311
Urbanized Area Formula Grants....  5307................      4,629,683,814      4,726,907,174      4,726,907,174
Enhanced Mobility of Seniors and   5310................        268,208,388        273,840,764        273,840,764
 Individuals with Disabilities..
Pilot Program for Enhanced         3006(b).............          3,000,000          3,250,000          3,250,000
 Mobility.
Formula Grants for Rural Areas...  5311................        632,355,120        645,634,578        645,634,578
Public Transportation Innovation.  5312................         28,000,000         28,000,000         28,000,000
Technical Assistance and           5314................          9,000,000          9,000,000          9,000,000
 Workforce Development.
Bus Testing Facilities...........  5318................          3,000,000          3,000,000          3,000,000
National Transit Database........  5335................          4,000,000          4,000,000          4,000,000
State of Good Repair Grants......  5337................      2,549,670,000      2,593,703,558      2,593,703,558
Bus and Bus Facilities Grants....  5339................        719,956,000        747,033,476        747,033,476
Growing States and High Density    5340................        544,433,788        552,783,547        552,783,547
 States.
Positive Train Control...........  ....................        199,000,000  .................  .................
      Total......................  ....................      9,733,706,043      9,733,353,407      9,733,353,407
----------------------------------------------------------------------------------------------------------------

    Population Loss.--The Committee recognizes the financial 
constraints placed on local communities and transit operators 
who have lost their urbanized area [UZA] formula funds as a 
direct result of a hurricane or other major disaster. In the 
interest of protecting local communities and transit operators 
from any additional burdens in the wake of a major disaster, 
the Committee directs FTA to explore ways to ensure that the 
impact to local communities and transit operators affected by 
major disasters are minimalized, including potential guidance 
to prevent a loss of formula funds from a population drop 
directly related to such major disaster.
    Bus and Bus Facilities Grant Program.--The Committee 
supports the FAST Act's inclusion of competitive grants in the 
buses and bus facilities grant program and encourages FTA to 
follow the guidance set forth in the FAST Act when developing 
selection criteria for the program. Consistent with section 
3017 of the FAST Act, the age and condition of buses, bus 
fleets, related equipment, and bus-related facilities should be 
the primary consideration for selection criteria.
    Improving Rural Transit Access.--The Committee recognizes 
the importance of ensuring safe, private transportation is made 
avail- able for seniors and people who do not drive, especially 
in small and rural communities where distance and low 
population density make traditional mass transportation 
difficult. The efficiencies of information management can help 
to provide on-demand transportation services and bring together 
underutilized private transportation capacity through ride 
share, car share, volunteer transport, and private community 
transport. The Committee encourages FTA to consider innovative 
transportation networks that leverage community volunteerism 
and private resources in various forms to access underutilized 
private transportation capacity to promote inclusive community 
mobility and provide transportation for seniors and 
disadvantaged populations in small and rural communities. 
Further, the Committee supports the capacity of consumers to 
plan their travel safely, independently, and reliably through a 
variety of techniques and tools.

                       CAPITAL INVESTMENT GRANTS

Appropriations, 2017....................................  $2,412,631,000
Budget estimate, 2018...................................   1,232,000,000
Committee recommendation................................   2,132,910,000

                          PROGRAM DESCRIPTION

    Under the Capital Investment Grants [CIG] program, FTA 
provides grants to fund the building of new fixed guideway 
systems or extensions and improvements to existing fixed 
guideway systems. Eligible services include light rail, rapid 
rail (heavy rail), commuter rail, and bus rapid transit. The 
program includes funding for four categories of eligible 
projects authorized under 49 U.S.C. 5309, and section 3005(b) 
of the FAST Act: New Starts, Small Starts, Core Capacity, and 
Expedited Project Delivery Pilot Program. New Starts are 
projects with a Federal share under this section of at least 
$100,000,000 or a total net capital cost of at least 
$300,000,000. By comparison, Small Starts are projects with a 
Federal share under this section of less than $100,000,000 and 
total net capital cost less than $300,000,000. Core Capacity 
projects are those that will expand capacity by at least 10 
percent in existing fixed-guideway transit corridors that are 
already at or above capacity, or are expected to be at or above 
capacity within 5 years. The FAST Act authorizes eight projects 
under the Expedited Project Delivery Pilot Program, consisting 
of New Starts, Small Starts, or Core Capacity, that require no 
more than a 25 percent Federal share and are supported, in 
part, by a public private partnership.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $2,132,910,000 for capital 
investment grants, which is $279,721,000 less than the fiscal 
year 2017 enacted level, and $900,910,000 more than the 
request. In addition, $8,900,000 in New Starts recoveries and 
$5,500,000 in Bus and Bus Facilities recoveries from prior year 
obligations are made available, for a total spending level of 
$2,147,310,000. The Committee recommendation includes 
$1,007,910,000 to cover the cost of the 11 existing FFGAs for 
New Starts projects and $200,000,000 to cover the cost of the 
two existing FFGAs for Core Capacity projects in fiscal year 
2018, which shall be distributed consistent with the proposed 
schedule of Federal funds for each FFGA. The Committee 
recommendation includes $149,900,000 to complete funding for 
previously funded Small Starts projects that do not have a 
signed agreement. The Committee's recommendations also includes 
for new projects that received at least a ``medium'' overall 
rating in the fiscal year 2018 annual report: $454,000,000 for 
New Starts FFGAs, $145,700,000 for Core Capacity FFGAs, and 
$168,400,000 for Small Starts grant agreements.
    Project Pipeline.--In addition to providing funding for 
this program for the projects described above, the Committee 
directs the Secretary to continue to advance eligible projects 
into project development and engineering in the capital 
investment grant evaluation, rating, and approval process 
pursuant to 49 U.S.C. 5309 and section 3005(b) of the FAST Act 
in all cases when projects meet the statutory criteria. The 
Committee also directs the Secretary to provide notice to the 
House and Senate Committees on Appropriations of not less than 
90 days prior to altering or rescinding any rule, circular or 
guidance relating to the evaluation, rating and approval 
process pursuant to 49 U.S.C. 5309.
    Annual Report on Funding Recommendations.--The Committee 
directs the Secretary to submit the fiscal year 2019 annual 
report on funding recommendations required by 49 U.S.C. 
5309(o), and directs the Secretary to maintain the Federal 
Government funding commitments for all existing grant 
agreements and identify all projects with a medium or higher 
rating that anticipate requesting a grant agreement in fiscal 
year 2019.
    Increasing Costs of Transit Projects.--Not later than 9 
months after the enactment of this act, the GAO shall report to 
the House and Senate Committees on Appropriations regarding the 
construction costs of transit capital projects in the United 
States in comparison to other developed G-20 nations, such as 
South Korea, Japan, Spain, France, Italy and Germany. The GAO 
shall examine potential cost drivers, including: contracting 
and procurement, project and station design, routing, 
regulatory barriers, interagency cooperation and legal systems, 
but not those which are required by Federal law. The report 
shall compare practices both between various cities in the 
United States, as well as practices in other nations. The 
report should, if appropriate, make recommendations to DOT on 
steps it can take within existing Federal law to address the 
issues identified by the reports to help bring best practices 
in the United States in line with international standards 
within the boundaries of current law. These recommendations may 
take the form of changes to funding guidelines or 
prioritization, regulatory changes, contracting practices, or 
intergovernmental technical assistance.

      GRANTS TO THE WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY

Appropriations, 2017....................................    $150,000,000
Budget estimate, 2018...................................     149,715,000
Committee recommendation................................     150,000,000

                          PROGRAM DESCRIPTION

    This appropriation provides assistance to the Washington 
Metropolitan Area Transit Authority [WMATA]. The Federal Rail 
Safety Improvements Act of 2008 (Public Law 110-432, title VI, 
section 601) authorized DOT to make up to $150,000,000 
available to WMATA annually for capital and preventive 
maintenance for a 10-year period.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation includes $150,000,000 for 
grants to WMATA for capital and preventive maintenance 
expenses, including pressing safety-related investments, which 
is $285,000 more than the budget request and equal to the 
fiscal year 2017 enacted level. These grants are in addition to 
the funding local jurisdictions have committed to providing to 
WMATA.
    SafeTrack.--The Committee is encouraged by the progress 
made by WMATA's SafeTrack program to accelerate 3 years of 
renewal work into 1 year, but is concerned about the decrease 
in ridership and increases in WMATA's capital needs and 
operating costs. While the General Manager has made some 
progress in reducing costs, the agency needs to do more to 
right-size its spending given that fewer people are using the 
system. The Committee is also concerned that the WMATA's 2018 
budget assumes that Congress will continue to provide capital 
and preventative maintenance funding to WMATA into perpetuity 
despite the expiration of authorization for this program at the 
end of fiscal year 2018. The Committee directs FTA to work with 
WMATA and the authorizing committees to determine whether the 
authorization should be extended and if any reforms are 
required to WMATA's charter to ensure the success of the 
agency.
    Financial Management.--The bill directs the Secretary to 
provide grants to WMATA only after receiving and reviewing a 
request for each specific project to be funded under this 
heading. The bill requires the Secretary to determine that 
WMATA has placed the highest priority on funding projects that 
will improve the safety of its public transit system before 
approving these grants, using the recommendations and 
directives of the NTSB and FTA as a guide.
    Wireless Service Extension.--The Committee reluctantly 
provides another 1-year extension for the wireless service 
requirement in the authorization statute. The Committee directs 
WMATA to continue to provide the House and Senate Committees on 
Appropriations a quarterly report detailing its progress 
installing wireless service.

       ADMINISTRATIVE PROVISIONS--FEDERAL TRANSIT ADMINISTRATION

    Section 160 exempts authority previously made available for 
pro- grams of the FTA under section 5338 of title 49, United 
States Code, from the obligation limitations in this act.
    Section 161 allows funds appropriated before October 1, 
2017, that remain available for expenditure to be transferred 
to the most recent appropriation heading.

             Saint Lawrence Seaway Development Corporation


                          PROGRAM DESCRIPTION

    The Saint Lawrence Seaway Development Corporation [SLSDC] 
is a wholly owned Government corporation established by the 
Saint Lawrence Seaway Act of May 13, 1954 (33 U.S.C. 981). The 
Saint Lawrence Seaway [Seaway] is a vital transportation 
corridor for the international movement of bulk commodities, 
such as steel, iron, grain, and coal, serving the North 
American region that makes up one-quarter of the United States 
population and nearly one-half of the Canadian population. 
SLSDC is responsible for the operation, maintenance, and 
development of the United States portion of the Seaway between 
Montreal and Lake Erie.

       OPERATIONS AND MAINTENANCE [HARBOR MAINTENANCE TRUST FUND]

Appropriations, 2017....................................     $36,028,000
Budget estimate, 2018...................................      28,346,012
Committee recommendation................................      36,028,000

                          PROGRAM DESCRIPTION

    The Harbor Maintenance Trust Fund [HMTF] was established by 
the Water Resources Development Act of 1986 (Public Law 99-
662). Since 1987, the HMTF has supported the operations and 
maintenance of commercial harbor projects maintained by the 
Federal Government. Appropriations from the HMTF and revenues 
from non-Federal sources finance the operation and maintenance 
of those portions of the Seaway for which SLSDC is responsible.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $36,028,000 for the operations, 
maintenance, and asset renewal of SLSDC. This amount is 
$7,681,988 greater than the budget request and is equal to the 
fiscal year 2017 enacted level.
    The Committee directs SLSDC to continue to submit an annual 
report to the Senate and House Committees on Appropriations, 
not later than April 30, summarizing the activities of the 
Asset Renewal Program during the immediate preceding fiscal 
year.

                        Maritime Administration


                          PROGRAM DESCRIPTION

    The Maritime Administration [MARAD] is responsible for 
programs authorized by the Merchant Marine Act of 1936, as 
amended (46 App. U.S.C. 1101 et seq.). MARAD is also 
responsible for programs that strengthen the U.S. maritime 
industry in support of the Nation's security and economic 
needs. MARAD prioritizes the Department of Defense's [DOD] use 
of ports and intermodal facilities during DOD mobilizations to 
guarantee the smooth flow of military cargo through commercial 
ports. MARAD manages the Maritime Security Program, the 
Voluntary Intermodal Sealift Agreement Program, and the Ready 
Reserve Force, which assure DOD access to commercial and 
strategic sealift and associated intermodal capacity. MARAD 
also continues to address the disposal of obsolete ships in the 
National Defense Reserve Fleet that are deemed a potential 
environmental risk. Further, MARAD administers education and 
training programs through the U.S. Merchant Marine Academy and 
six State maritime schools that assist in providing skilled 
merchant marine officers who are capable of serving defense and 
commercial transportation needs. The Committee continues to 
fund MARAD in its support of the United States as a maritime 
Nation.

                       MARITIME SECURITY PROGRAM

Appropriations, 2017....................................    $300,000,000
Budget estimate, 2018...................................     210,000,000
Committee recommendation................................     300,000,000

                          PROGRAM DESCRIPTION

    The Maritime Security Program [MSP] provides resources to 
maintain a U.S.-flag merchant fleet crewed by U.S. citizens to 
serve both the commercial and national security needs of the 
United States. The program provides direct payments to U.S.-
flag ship operators engaged in U.S. foreign trade. 
Participating operators are required to keep the vessels in 
active commercial service and provide intermodal sealift 
support to DOD in times of war or national emergency.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $300,000,000 
for the MSP. This amount is $90,000,000 above the budget 
request and equal to the fiscal year 2017 enacted level. Once 
again, the Committee rejects the Administration's short-sighted 
proposal to cut funding for this program which would undermine 
the cost-effective sustainment of troops serving overseas.

                        OPERATIONS AND TRAINING

Appropriations, 2017....................................    $175,560,000
Budget estimate, 2018...................................     171,820,000
Committee recommendation................................     228,642,000

                          PROGRAM DESCRIPTION

    The Operations and Training appropriation primarily funds 
the salaries and expenses for MARAD headquarters and regional 
staff in the administration and direction for all MARAD 
programs. The account includes funding for the U.S. Merchant 
Marine Academy, six State maritime schools, port and intermodal 
development, cargo preference, international trade relations, 
deep-water port licensing and administrative support costs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $228,642,000 
for Operations and Training at MARAD for fiscal year 2018 to be 
distributed between agency operations, the United States 
Merchant Marine Academy, and State maritime academies as 
outlined in the chart below. This amount is $53,082,000 above 
the fiscal year 2017 enacted level and $56,822,000 above the 
budget request. Of this amount, $50,000,000 is provided for the 
National Security Multi-Mission Vessel.

                         MARITIME ADMINISTRATION
------------------------------------------------------------------------
                                                            Fiscal year
                                                            2018 Senate
------------------------------------------------------------------------
U.S. Merchant Marine Academy............................     $87,000,000
    Academy Operations..................................      69,000,000
    Capital Improvements................................      14,180,000
    Facilities Maintenance, Repair and Equipment........       3,820,000
State Maritime Academies................................      32,200,000
    SMA Direct Payments.................................       6,000,000
    Student Incentive Payments..........................       2,400,000
    Schoolship Maintenance and Repair...................      22,000,000
    Fuel Assistance Payments............................       1,800,000
National Security Multi-Mission Vessel..................      50,000,000
MARAD Operations........................................      59,442,000
    Headquarter Operations..............................      49,442,000
    Environment and Technology Grants...................       3,000,000
    Marine Highways Grants..............................       7,000,000
                                                         ---------------
      Total.............................................     228,642,000
------------------------------------------------------------------------

    Short Sea Shipping Program.--The Committee recommendation 
includes $7,000,000 for the Short Sea Shipping program, 
commonly known as the Marine Highway program. Projects funded 
by this grant program will help mitigate landside congestion, 
encourage shipper utilization, improve port and landside 
infrastructure, and develop marine transportation strategies by 
State and local governments.
    National Security Multi-Mission Vessel [NSMV].--The 
Committee supports MARAD's efforts to develop a replacement 
vessel for the six State Maritime Academy training ships, 
including the 56-year-old training ship the Empire State. The 
Committee is concerned that the budget request's exclusion of 
funding for a training ship signals a lack of interest in 
addressing this urgent need that is essential to the education 
of U.S. mariners and the manning of our U.S.-flag fleets and 
the U.S. military. The Committee recommendation includes 
$50,000,000 for special purpose vessels to be used as training 
school ships. The Committee directs the agency to consult with 
the Navy, Coast Guard, and any other relevant agencies that may 
benefit from the NSMV prior to submitting a budget request 
related to the construction, acquisition, or conversion of a 
replacement vessel.
    United States Merchant Marine Academy Spend Plan.--The 
Committee directs the Secretary, in consultation with the 
Superintendent of the United States Merchant Marine Academy and 
the Maritime Administrator, to complete a spend plan 
anticipating Academy expenditures, and to provide this plan to 
the House and Senate Committees on Appropriations within 90 
days of enactment of this act.
    Sexual Assault and Sexual Harassment at the United States 
Merchant Marine Academy.--The Committee remains concerned about 
the high rate of incidents of sexual assault and sexual 
harassment at the Academy. The most recent survey of sexual 
harassment and sexual assault from the 2015-2016 academic year 
shows a continuation of the disturbing results at the Academy 
seen in prior surveys with 19.5 percent of female and 2 percent 
of male midshipmen reporting incidents of sexual assault.
    The Academy has failed to achieve its intended goals in 
successive action plans, despite repeated commitments from 
senior leadership at DOT, MARAD, and the Academy. In November 
2011, Secretary LaHood outlined a corrective action plan in the 
first report to Congress, which was based on survey data from 
the 2009-2010 academic year. The DOT IG found that over one-
third of that action plan was incomplete. Another IG review in 
2016 found that only 66 percent of the 2014-2015 action plan 
was achieved. Based on the recommendations of that audit, 
Secretary Foxx instituted another action plan in January 2017. 
It is an ambitious plan with over 50 action items, including: 
establishing a process for credentialing shipping companies for 
participation in Sea Year, supporting victims by establishing 
policies and procedures against retaliation, and filling key 
positions in the Sexual Assault Prevention Office and the Civil 
Rights office. While meeting the agencies goals in successive 
action plans is important, it is also clear that a change in 
culture must also be made throughout the entire Academy. It is 
imperative that senior leadership throughout the Department 
continue to make improving conditions at the Academy a top 
priority. The Academy's success in meeting these goals will 
hinge on the continued diligence of senior leadership at all 
levels within DOT, as well as the ability to hire and retain 
qualified staff. The Committee recommendation includes 
resources to hire an attorney dedicated to serve as an advisor 
to victims of sexual assault and sexual harassment, consistent 
with the practices of all other Federal service academies. The 
funding level provided also supports the annualization of staff 
approved in fiscal year 2017 for the Office of Sexual Assault 
Prevention and Response. In addition, MARAD is currently 
pursuing a 24/7 hotline contract with the Rape, Abuse and 
Incest National Network to enhance the services already 
provided by the Safe Center LI in Nassau County, New York 
hotline.
    In June 2016, the previous Secretary suspended the Sea Year 
training program in response to reports that midshipmen were 
subject to sexual assault and sexual harassment while aboard 
commercial vessels. On February 15, 2017, DOT resumed the Sea 
Year program with new eligibility criteria for new vessels 
participating in the program. To date, MARAD has stated that 
the program is now back to 81 percent capacity of the sea days 
for midshipmen sailing on commercial ships prior to the 
program's suspension. The Committee expects that the suspension 
will not prevent any midshipmen from obtaining sufficient at-
sea training hours to graduate on time. MARAD is directed to 
provide a report to the House and Senate Committees on 
Appropriations within 90 days of enactment of this act that 
provides the status of all midshipmen effected by the Sea Year 
Stand Down, including aggregate year-over-year comparisons of 
sea hours accrued by the classes of 2015 through 2020.
    The Committee directs the Secretary to provide the annual 
report required by section 3507 of Public Law 110-417 to the 
House and Senate Committees on Appropriations no later than 
January 12, 2018.
    Accreditation.--In June, 2016, the Middle States Commission 
on Higher Education [MSCHE] warned the Academy that it was at 
risk of losing its accreditation if it failed to meet five 
credentialing standards tied to governance and combatting 
sexual assault and sexual harassment. In June, 2017, MSCHE 
found the Academy successfully implemented reforms to address 
all findings with the exception of one deficiency related to 
institutional planning and resources allocation. The Committee 
is encouraged that the Superintendent has successfully resolved 
the vast majority of these deficiencies in a timely manner.
    United States Merchant Marine Academy Capital Improvements 
Plan [CIP].--The Committee directs the Administrator to provide 
an annual report by March 31, 2018, on the current status of 
the CIP. The report should include a list of all projects that 
have received funding and all proposed projects that the 
Academy intends to initiate within the next 5 years: cost 
overruns and cost savings for each active project; specific 
target dates for project completion; delays and the cause of 
delays; schedule changes; up-to-date cost projections for each 
project; and any other deviations from the previous year's CIP.
    Environment and Compliance.--The Committee commends MARAD's 
initiative to support the domestic maritime industry's efforts 
to comply with emerging international and domestic 
environmental regulatory requirements. The Committee directs 
MARAD to notify the House and Senate Committees on 
Appropriations not less than 3 business days before any grant, 
contract, or cooperative agreement is announced by the 
Department or MARAD for the maritime environment and technology 
assistance program as authorized by 46 U.S.C. 50307.
    Small Shipyard Survey.--The Committee expects MARAD to 
continue its work, in consultation with the Army Corps of 
Engineers, to survey the dredging needs of small shipyards as 
required by Senate Report 114-243. The Committee expects the 
survey to capture potential demand for dredging from current 
grantees and applicants as well as small shipyards that have 
not previously applied but could make use of the program if 
dredging were to become an eligible activity.

                     ASSISTANCE TO SMALL SHIPYARDS

Appropriations, 2017....................................     $10,000,000
Budget estimate, 2018...................................................
Committee recommendation................................      10,000,000

                          PROGRAM DESCRIPTION

    As authorized under section 54101 of title 46, the 
Assistance to Small Shipyards program provides assistance in 
the form of grants, loans, and loan guarantees to small 
shipyards for capital improvements and training programs.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation includes $10,000,000 for 
assistance to small shipyards. This level of funding is equal 
to the fiscal year 2017 enacted level and $10,000,000 above the 
President's request. Funding for this program is intended to 
help small shipyards improve the efficiency of their operations 
by providing funding for equipment and other facility upgrades, 
including dredging of waters located within the shipyard's 
geographical location for the purpose of improving the shipyard 
facility operations. The funding recommended by the Committee 
will help improve the competitiveness of our Nation's small 
shipyards, as well as workforce training and apprenticeships in 
communities dependent upon maritime transportation.

                             SHIP DISPOSAL

Appropriations, 2017....................................     $34,000,000
Budget estimate, 2018...................................       9,000,000
Committee recommendation................................       9,000,000

                          PROGRAM DESCRIPTION

    The Ship Disposal account provides resources to dispose of 
obsolete merchant-type vessels of 150,000 gross tons or more in 
the National Defense Reserve Fleet [NDRF]. MARAD contracts with 
domestic shipbreaking companies to dismantle these vessels in 
accordance with guidelines established by the Environmental 
Protection Agency.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $9,000,000 for 
MARAD's Ship Disposal program. This level of funding is 
$25,000,000 below the fiscal year 2017 enacted level and equal 
to the budget request.

              MARITIME GUARANTEED LOAN PROGRAM [TITLE XI]

Appropriations, 2017....................................      $3,000,000
Budget estimate, 2018...................................................
Committee recommendation................................      30,000,000

                          PROGRAM DESCRIPTION

    The Maritime Guaranteed Loan program was established 
pursuant to title XI of the Merchant Marine Act of 1936, as 
amended. The program provides for a full faith and credit 
guarantee by the U.S. Government of debt obligations issued by: 
(1) U.S. or foreign ship-owners for the purposes of financing 
or refinancing either U.S.-flag vessels or eligible export 
vessels constructed, reconstructed, or reconditioned in U.S. 
shipyards; and (2) U.S. shipyards, for the purpose of financing 
advanced shipbuilding technology of privately owned general 
shipyard facilities located in the United States. Under the 
Federal Credit Reform Act of 1990, appropriations to cover the 
estimated costs of a project must be obtained prior to the 
issuance of any approvals for title XI financing.

                        COMMITTEE RECOMMENDATION

    The Committee provides an appropriation of $30,000,000 for 
the maritime guaranteed loan title XI program, of which 
$3,000,000 shall be used for administrative expenses of the 
maritime loan guarantee program. This level of funding is 
$30,000,000 above the President's budget request and 
$27,000,000 above the fiscal year 2017 enacted level. The 
increase in funding is to support pending applications that are 
expected to be executed this fiscal year.

           ADMINISTRATIVE PROVISIONS--MARITIME ADMINISTRATION

    Section 170 authorizes MARAD to furnish utilities and to 
service and make repairs to any lease, contract, or occupancy 
involving Government property under the control of MARAD. 
Rental payments received pursuant to this provision shall be 
credited to the Treasury as miscellaneous receipts.

         Pipeline and Hazardous Materials Safety Administration

    The Pipeline and Hazardous Material Safety Administration 
[PHMSA] was established in the Department of Transportation on 
November 30, 2004, pursuant to the Norman Y. Mineta Research 
and Special Programs Improvement Act (Public Law 108-246). 
PHMSA is responsible for the Department's pipeline safety pro- 
gram as well as oversight of hazardous materials transportation 
safety operations. The agency is dedicated to safety, including 
the elimination of transportation-related deaths and injuries 
associated with hazardous materials and pipeline 
transportation, and to promoting transportation solutions that 
enhance communities and protect the environment.

                          OPERATIONAL EXPENSES

Appropriations, 2017....................................     $22,500,000
Budget estimate, 2018...................................      20,960,000
Committee recommendation................................      23,000,000

                          PROGRAM DESCRIPTION

    This account funds program support costs for PHMSA, 
including policy development, civil rights, management, 
administration, and agency-wide expenses.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $23,000,000 for this account, of 
which $1,500,000 shall be for the Office of Pipeline Safety for 
Information Grants to Communities. The Committee's 
recommendation is $2,040,000 more than the budget request and 
$500,000 more than the fiscal year 2017 enacted level.
    Comprehensive Oil Spill Response Plans.--An oil spill 
response plan is intended to help the carrier identify and 
deploy a response organization to contain and remediate an oil 
release. The plans require carriers to identify a qualified 
individual with full authority to implement removal actions; 
ensure by contract or other means the availability of private 
personnel and equipment to remove a worst case discharge; and 
describe training, equipment testing, drills and exercises. 
PHMSA issued a notice of proposed rulemaking to expand the 
applicability of comprehensive oil spill response plans to rail 
carriers in July 2016. The Committee notes with disappointment 
that to date, despite additional resources provided by the 
Committee and explicit direction in prior fiscal years, PHMSA 
has failed to issue a final rule. The Committee directs PHMSA 
to issue a final rule to expand the applicability of 
comprehensive oil spill response plans to rail carriers no 
later than 5 days after enactment of this act.
    Open Data Standards.--The Committee recognizes that 
identifying and adopting data standards help further PHMSA's 
mission, fulfill congressional directives, and lead to better 
agency performance and recommendations. The Committee 
encourages PHMSA to pursue public-private partnerships 
utilizing existing industry standards for data, which can 
increase the efficiency and effectiveness of the National 
Pipeline Mapping System.
    Modification Reporting.--The Secretary is directed to 
comply with the reporting requirement in Section 7308 of the 
FAST Act (Public Law 114-94), ``Modification Reporting'' no 
later than 60 days after enactment of this act.

                       HAZARDOUS MATERIALS SAFETY

Appropriations, 2017....................................     $57,000,000
Budget estimate, 2018...................................      55,513,000
Committee recommendation................................      59,000,000

                          PROGRAM DESCRIPTION

    PHMSA oversees the safety of more than 6.1 million tons of 
hazardous materials shipments daily in the United States, using 
risk management principles and security threat assessments to 
fully assess and reduce the risks inherent in hazardous 
materials transportation.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $59,000,000 
for hazardous materials safety, of which $7,570,000 shall 
remain available until September 30, 2020. The amount provided 
is $3,487,000 more than the administration's budget request and 
$2,000,000 more than the fiscal year 2017 enacted level. The 
Committee's recommendation does not provide new FTE.

                            PIPELINE SAFETY

                         (PIPELINE SAFETY FUND)

                    (OIL SPILL LIABILITY TRUST FUND)

Appropriations, 2017....................................    $156,288,000
Budget estimate, 2018...................................     154,344,000
Committee recommendation................................     162,000,000

                          PROGRAM DESCRIPTION

    The Office of Pipeline Safety [OPS] is designed to promote 
the safe, reliable, and sound transportation of natural gas and 
hazardous liquids through the Nation's 2.6 million miles of 
privately owned and operated pipelines.

                        COMMITTEE RECOMMENDATION

    The Pipeline Safety Office has the important responsibility 
of ensuring the safety and integrity of the pipelines that run 
through every community in our Nation. Efforts by Congress and 
the OPS to invest in promising safety technologies, increase 
civil penalties, and educate communities about the potential 
risks of pipelines have resulted in a reduction in serious 
pipeline incidents. It is essential that the agency continue to 
make strides in protecting communities from pipeline failures 
and incidents. To that end, the Committee recommends an 
appropriation of $162,000,000 for the OPS, consistent with the 
PIPES Act. The amount is $5,712,000 more than the fiscal year 
2017 enacted level and $7,656,000 more than the budget request. 
Of the funding provided, $23,000,000 shall be derived from the 
Oil Spill Liability Trust Fund, $131,000,000 shall be derived 
from the Pipeline Safety Fund and $8,000,000 is derived from 
the Underground Natural Gas Storage Facility Safety Fund. Of 
the funds recommended for research and development up to 
$2,000,000 shall be used for the Pipeline Safety Research 
Competitive Academic Agreement Program [CAAP] to focus on near-
term solutions to improve the safety and reliability of the 
Nation's pipeline transportation system.

                     EMERGENCY PREPAREDNESS GRANTS

                     (EMERGENCY PREPAREDNESS FUND)

Appropriations, 2017....................................     $28,318,000
Budget estimate, 2018...................................      28,318,000
Committee recommendation................................      28,318,000

                          PROGRAM DESCRIPTION

    The Hazardous Materials Transportation Uniform Safety Act 
of 1990 [HMTUSA] requires PHMSA to (1) develop and implement a 
reimbursable emergency preparedness grant program; (2) monitor 
public sector emergency response training and planning, and 
provide technical assistance to States, political subdivisions, 
and Indian tribes; and (3) develop and periodically update a 
mandatory training curriculum for emergency responders.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $28,318,000 and an equal 
obligation limitation for the emergency preparedness grant 
program. The recommendation continues to provide PHMSA the 
authority to use prior year carryover and recaptures for the 
development of a Web- based hazardous materials response 
training curriculum for emergency responders, including 
response activities for crude oil, ethanol and other flammable 
liquids by rail. The Committee is pleased that in March 2017 
PHMSA released its initial Web-based, off-the-shelf training 
material that can be used by emergency responders across the 
country. The Committee encourages PHMSA to continue to enhance 
its training curriculum for local emergency responders. Prior 
years' carryover may also be used to train public sector 
emergency response personnel in communities on or near rail 
lines that transport a significant volume of high-risk energy 
commodities or toxic inhalation hazards. The Committee 
continues a provision increasing the administrative costs 
available from 2 percent to 4 percent in order to address the 
OIG's recommendations.

                      Office of Inspector General


                         SALARIES AND EXPENSES

Appropriations, 2017....................................     $90,152,000
Budget estimate, 2018...................................      87,306,000
Committee recommendation................................      92,100,000

                          PROGRAM DESCRIPTION

    The Inspector General Act of 1978 established the Office of 
Inspector General [OIG] as an independent and objective 
organization, with a mission to:
  --conduct and supervise audits and investigations relating to 
        the programs and operations of the Department;
  --provide leadership and recommend policies designed to 
        promote economy, efficiency, and effectiveness in the 
        administration of programs and operations;
  --prevent and detect fraud, waste, and abuse; and
  --keep the Secretary and Congress currently informed 
        regarding problems and deficiencies.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation provides $92,100,000 for 
activities of the Office of the Inspector General, which is 
$4,794,000 more than the President's budget request and 
$1,948,000 more than the fiscal year 2017 enacted level.
    Audit Reports.--The Committee requests that the Inspector 
General continue to provide copies of all audit reports to the 
Committee immediately after they are issued, and to continue to 
make the Committee aware immediately of any review that 
recommends cancellation of or modifications to any major 
acquisition project or grant, or which recommends significant 
budgetary savings. The OIG is also directed to withhold from 
public distribution for a period of 15 days any final audit or 
investigative report which was requested by the House or Senate 
Committees on Appropriations.
    Buy American Compliance.--Congressionally mandated audits 
of the Department of Defense's purchases of manufactured goods, 
Naval Personnel Can Improve Compliance With the Berry Amendment 
and the Buy American Act, and Air Force Personnel Can Improve 
Compliance With the Berry Amendment and the Buy American Act, 
revealed a high level of non-compliance with statutory ``Buy 
American'' obligations. In the last 5 years, the FAA has 
reported purchases of over $3,000,000,000 of manufactured 
goods. Given the impact that manufacturing has on our economy, 
the Committee directs the Inspector General of the Department 
of Transportation to conduct an audit of FAA purchases of 
manufactured goods to ensure compliance with chapter 83, title 
41 of the United States Code for the purchase of domestically 
manufactured goods.
    Unfair Business Practices.--The bill maintains language 
which authorizes the OIG to investigate allegations of fraud 
and unfair or deceptive practices and unfair methods of 
competition by air carriers and ticket agents.

            General Provisions--Department of Transportation

    Section 180 allows funds for maintenance and operation of 
air- craft; motor vehicles; liability insurance; uniforms; or 
allowances, as authorized by law.
    Section 181 limits appropriations for services authorized 
by 5 U.S.C. 3109 not to exceed the rate for an executive level 
IV.
    Section 182 prohibits funds in this act for salaries and 
expenses of more than 110 political and Presidential appointees 
in the Department of Transportation.
    Section 183 prohibits recipients of funds made available in 
this act from releasing personal information, including Social 
Security numbers, medical and disability information, and 
photographs, from a driver's license or motor vehicle record 
without the express consent of the person to whom such 
information pertains; and prohibits the Secretary of 
Transportation from withholding funds pro- vided in this act 
from any grantee in noncompliance with this pro- vision.
    Section 184 allows funds received by the Federal Highway 
Administration, Federal Transit Administration, and the Federal 
Rail- road Administration from States, counties, 
municipalities, other public authorities, and private sources 
for expenses incurred for training may be credited to each 
agency's respective accounts.
    Section 185 prohibits the use of funds in this act to make 
a grant or announce the intention to make a grant unless the 
Secretary of Transportation notifies the House and Senate 
Committees on Appropriations at least 3 full business days 
before making the grant or the announcement.
    Section 186 allows rebates, refunds, incentive payments, 
minor fees, and other funds received by the Department of 
Transportation from travel management center, charge card 
programs, subleasing of building space and miscellaneous 
sources to be credited to appropriations of the Department of 
Transportation.
    Section 187 requires amounts from improper payments to a 
third-party contractor that are lawfully recovered by the 
Department of Transportation to be available to cover expenses 
incurred in recovery of such payments.
    Section 188 establishes requirements for reprogramming 
actions by the House and Senate Committees on Appropriations.
    Section 189 prohibits funds appropriated in this act to the 
modal administrations from being obligated for the Office of 
the Secretary for costs related to assessments or reimbursable 
agreements unless the obligations are for services that provide 
a direct benefit to the applicable modal administration.
    Section 190 authorizes the Secretary to carry out a program 
that establishes uniform standards for developing and 
supporting agency transit pass and transit benefits authorized 
under section 7905 of title 5, United States Code.
    Section 191 prohibits the use of funds for any geographic, 
economic, or other hiring preference pilot program, regulation, 
or policy unless certain requirements are met related to 
availability of local labor, displacement of existing 
employees, and delays in transportation plans.

                                TITLE II

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                     Management and Administration

    The Department of Housing and Urban Development [HUD] was 
established by the Housing and Urban Development Act (Public 
Law 89-174), effective November 9, 1965. This Department is the 
principal Federal agency responsible for programs concerned 
with the Nation's housing needs, fair housing opportunities, 
and improving and developing communities.
    In carrying out the mission of serving the needs and 
interests of the Nation's communities and of the people who 
live and work in them, HUD administers: mortgage and loan 
insurance programs that help families become homeowners and 
facilitate the construction of rental housing; rental and 
homeownership subsidy programs for low-income families who 
otherwise could not afford decent housing; programs to combat 
discrimination in housing and affirmatively further fair 
housing opportunities; programs aimed at ensuring an adequate 
supply of mortgage credit; and programs that aid neighborhood 
rehabilitation, community development, and the preservation of 
our urban centers from blight and decay.
    HUD also administers programs that protect homebuyers, and 
fosters programs and research that stimulate and guide the 
housing industry to provide not only housing, but better 
communities and living environments.
    As HUD works to fulfill its mission, the Committee urges 
the Secretary to enhance its efforts to provide decent, 
affordable housing and to promote economic development for 
rural Americans. When designing programs and making funding 
decisions, the Secretary shall take into consideration the 
unique conditions, challenges, and scale of rural areas.
    The Committee notes that poverty is far too prevalent in 
the United States. HUD should continue to work with Congress 
and other partners to implement policies that reduce poverty 
and the suffering associated with it. The Committee also 
encourages HUD to increase interagency collaboration to ensure 
Federal resources are strategically deployed in order to 
achieve the most effective outcomes, while also reducing 
overlap and duplication.
    Relationship Between HUD and the Committee on 
Appropriations.--A relationship between the Committee and HUD 
has existed through the Departmental budget office. This 
relationship has, in prior years, proven beneficial to the 
Committee in completing its work structuring the annual 
Appropriations Act. However, the Committee retains the right to 
call upon all offices and agencies within the Department during 
the course of its oversight and funding of the Department's 
programs. Additionally, the Committee expects that all offices 
within HUD will provide timely and accurate information to the 
Committee upon request.
    Appropriations Attorneys.--During consideration of the 
fiscal year 2003 appropriations legislation, it became apparent 
to the Committee that both the Committee and the Department 
would be better served if the attorneys responsible for 
appropriations matters were housed in the Office of the Chief 
Financial Officer [OCFO]. The fiscal year 2003 act provided 
funds and FTE to the OCFO to accommodate four attorneys 
transferred from the Office of General Counsel [OGC]. Since 
that time, the Committee has routinely received prompt, 
accurate, and reliable information from the OCFO on various 
appropriations law matters. For fiscal year 2018, the Committee 
continues to fund appropriations attorneys in the OCFO and 
directs HUD to refer all appropriations law issues to such 
attorneys within the OCFO.
    Reprogramming and Congressional Notification.--The 
Committee reiterates that the Department must secure the 
approval of the House and Senate Committees on Appropriations 
for the reprogramming of funds between programs, projects, and 
activities within each account. Unless otherwise identified in 
the bill or report, the most detailed allocation of funds 
presented in the budget justifications is approved, with any 
deviation from such approved allocation subject to the normal 
reprogramming requirements. Except as specifically provided 
otherwise, it is the intent of the Committee that all carryover 
funds in the various accounts, including recaptures and de-
obligations, are subject to the normal reprogramming 
requirements outlined under section 405. No change may be made 
to any program, project, or activity if it is construed to be 
new policy or a change in policy, without prior approval of the 
House and Senate Committees on Appropriations. The Committee 
also directs HUD to include a separate delineation of any 
reprogramming of funds requiring approval in the operating plan 
required by section 405 of this act. Finally, the Committee 
shall be notified regarding reorganizations of offices, 
programs or activities prior to the implementation of such 
reorganizations. The Department is directed to submit, in 
consultation with the House and Senate Committees on 
Appropriations, current and accurate organizational charts for 
each Office within the Department as part of the fiscal year 
2019 congressional justifications. The Committee further 
directs the Department to submit any staff realignments or 
restructuring to the House and Senate Committees on 
Appropriations 30 days prior to their implementation.
    Congressionally Mandated Reports.--The Department is 
reminded that directives and reports mandated in the House and 
Senate Appropriations Acts and accompanying reports are not 
optional unless revised or eliminated by the Statement of 
Managers accompanying the act. The Committee believes that such 
reports provide a better understanding of various issues and 
the Committee uses such reports to help inform funding 
decisions. Therefore, the Department is advised that the 
submission of directed reports is mandatory and not at the 
discretion of the Department. The Committee directs the 
Department to submit all overdue reports and to advise the 
Committee if it is unable to meet a reporting requirement well 
in advance of the deadline.
    Addressing the Needs of Survivors of Domestic Violence.--In 
November 2016, HUD published its final rule, ``Violence Against 
Women Reauthorization Act of 2013 [VAWA 2013]: Implementation 
in HUD Housing Programs'' which expanded housing protections to 
all victims of domestic violence, dating violence, sexual 
assault, and stalking. In accordance with the reauthorization 
statute, this rule not only expanded protections beyond public 
housing and Section 8 programs, it also required grantees to 
develop emergency transfer plans in order to meet the pressing 
housing and services needs of this vulnerable population. 
Subsequently, on May 19, 2017, HUD issued guidance for its 
Public and Indian Housing [PIH] programs with Notice PIH-2017-
08 and on June 30, 2017, issued guidance for its Multifamily 
Housing programs with Notice H 2017-05. However, the Department 
has yet to issue guidance for its Community Planning and 
Development [CPD] programs, or update critical notices and 
forms, including the ``Notice of Occupancy Rights under the 
Violence Against Women Act'', the ``Certification of Domestic 
Violence, Dating Violence, Sexual Assault, or Stalking, and 
Alternative Documentation'' form, the ``Emergency Transfer 
Request for Certain Victims of Domestic Violence, Dating 
Violence, Sexual Assault, or Stalking'' form, and ``Model 
Emergency Transfer Plan for Victims of Domestic Violence, 
Dating Violence, Sexual Assault, or Stalking''. Additionally, 
the Department has yet to update its handbooks and lease terms 
for programs covered under VAWA 2013. The Committee is 
extremely concerned that without critical updates to guidance, 
handbooks, and forms, grantees are unable to effectively meet 
their statutory obligations under VAWA 2013, and assist those 
who are fleeing unsafe circumstances and require the protection 
of the law. Therefore, the Committee directs HUD to prioritize 
and expeditiously issue the related guidance and update its 
forms within 120 days of enactment of this act. Additionally, 
on December 16, 2016, an amendment to VAWA 2013's housing 
provisions was signed into law as part of the Justice for All 
Reauthorization Act of 2016. This amendment clarified that 
lease bifurcations and post-lease bifurcation protections apply 
to both survivor tenants and residents. However, HUD has not 
taken action to clarify how this change impacts its programs, 
or sought public comment through further rulemaking. As a 
result, the Committee directs the Department to issue 
clarifying guidance on how this change applies to VAWA 2013 
covered programs within 60 days of enactment of this act, and 
where necessary, initiate public comment and or rulemaking 
within 90 days of enactment of this act.
    Implementation of Lead-Based Paint Hazard Initiatives.--It 
is estimated that at least four million American households 
have children who are being exposed to high levels of lead and 
that approximately 24 million homes in the United States 
contain lead-based paint or lead-contaminated dust. Exposure to 
this paint and dust in the home accounts for 70 percent of lead 
poisoning cases in the United States. Last year, the Committee 
directed HUD to determine the extent of this health hazard in 
HUD-assisted housing; however, HUD lacked sufficient data and 
proper oversight of public housing agencies' [PHAs] and 
property owners' compliance with existing lead-based paint 
regulations to conclude the scale of the problem for the nearly 
5 million families living in HUD-assisted housing. The 
Committee also expressed concern about the 34,000 children 
under the age of six residing in zero-bedroom units, including 
studios and efficiency apartments, which were excluded from the 
protections afforded by lead-based paint regulations and from 
receiving grant funding from HUD to address those hazards. The 
Committee was extremely concerned by HUD's overall lack of data 
and oversight and the potential exposure of children to lead-
based paint hazards in HUD-assisted housing.
    As a result, the Committee included a comprehensive series 
of lead-based paint remediation initiatives: $60,000,000 in 
additional resources to address lead-based paint hazards in 
both public and low-income housing; and directed numerous 
provisions to improve quality controls for physical 
inspections, enhance HUD's oversight of those inspections; and 
expand the housing units covered by lead-based paint 
regulations. Specifically, these initiatives included: 
increasing HUD's oversight and quality assurance of physical 
inspections in public and multifamily housing to ensure that 
PHAs and property owners are complying with lead-based paint 
regulations; doubling the number of inspectors in the Office of 
Lead Hazard Control and Healthy Homes' Enforcement Division; 
requiring HUD to issue clarifying guidance to PHAs on current 
and prospective lead-based paint regulations to help ensure 
that HUD-assisted units meet HUD's lead-safe standards; and 
removing zero-bedroom dwellings from the exceptions set forth 
in several lead-based paint hazard prevention statutes. These 
directives will help HUD provide more effective oversight of 
lead-based paint regulations, as well as assist PHA compliance. 
Furthermore, by removing the exceptions granted to zero-bedroom 
dwellings, the Committee is ensuring that young children living 
in HUD-assisted housing will be protected from the dangers of 
lead-based paint hazards regardless of the type of unit in 
which they reside.
    The Committee is pleased that the Secretary shares the 
commitment and urgency to implement the initiatives and to 
protect young children in HUD-assisted housing from lead-based 
paint hazards. The Committee directs the Department to complete 
implementation of all of these initiatives within 90 days of 
enactment of this act.

                           EXECUTIVE OFFICES

Appropriations, 2017....................................     $14,000,000
Budget estimate, 2018...................................      14,708,000
Committee recommendation................................      15,645,000

                          PROGRAM DESCRIPTION

    The Executive Offices account provides the salaries and 
expenses funding to support the Department's senior leadership 
and other key functions, including the immediate offices of the 
Secretary, Deputy Secretary, Congressional and 
Intergovernmental Relations, Public Affairs, Adjudicatory 
Services, the Center for Faith-Based and Community Initiatives, 
and the Office of Small and Disadvantaged Business Utilization.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $15,645,000 
for this account, which is $1,645,000 more than the fiscal year 
2017 enacted level and $937,000 more than the budget request. 
The Secretary is directed to submit a spend plan to the House 
and Senate Committees on Appropriations that outlines how 
budgetary resources will be distributed among the seven offices 
funded under this heading.

                     ADMINISTRATIVE SUPPORT OFFICES

Appropriations, 2017....................................    $517,647,000
Budget estimate, 2018...................................     517,803,000
Committee recommendation................................     520,190,000

                          PROGRAM DESCRIPTION

    The Administrative Support Offices [ASO] account is the 
backbone of HUD's operations, and consists of several offices 
that aim to work seamlessly to provide the leadership and 
support services to ensure the Department performs its core 
mission and is compliant with all legal, operational, and 
financial guidelines. This account funds the salaries and 
expenses of the Office of the General Counsel, the Office of 
the Chief Financial Officer, the Office of the Chief 
Procurement Officer, the Office of Departmental Equal 
Employment Opportunity, the Office of Field Policy and 
Management, the Office of Strategic Planning and Management, 
the Office of the Chief Human Capital Officer, the Office of 
Administration, and the Office of the Chief Information 
Officer.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $520,190,000 
for this account, which is $2,543,000 more than the fiscal year 
2017 enacted level and $2,387,000 more than the budget request.
    Funds are made available as follows:

------------------------------------------------------------------------
                                                             Amount
------------------------------------------------------------------------
Office of the Chief Human Capital Officer.............       $39,300,000
Office of Administration..............................       206,140,000
Office of the Chief Financial Officer.................        52,200,000
Office of the Chief Procurement Officer...............        19,500,000
Office of Field Policy and Management.................        53,500,000
Office of Departmental Equal Employment Opportunity...         3,800,000
Office of the General Counsel.........................        95,400,000
Office of Strategic Planning and Management...........         4,950,000
Office of the Chief Information Officer...............        45,400,000
------------------------------------------------------------------------


    Hiring and Separation Report.--The Committee directs HUD's 
Office of the Chief Financial Officer and the Office of the 
Human Capital Officer to submit quarterly reports to the House 
and Senate Committees on Appropriations on hiring and 
separations by program office. This report shall include 
position titles, location, associated FTE, and include the 
Office of the Inspector General and Government National 
Mortgage Association.
    Office of Chief Operations Officer [OCOO].--The Committee 
recommendation does not include the authority to establish an 
Office of Chief Operations Officer within the Administrative 
Support Offices account as proposed in the budget request. The 
Committee recommendation continues to fund this function with 
the Executive Offices account.
    Office of the Chief Financial Officer [OCFO].--The 
Department is directed to cap the staffing for the OCFO Office 
of Budget at the level of staff on board on September 30, 2017. 
The Department is further directed to limit the staffing level 
of the OCFO Immediate Office to no more than 3 FTE until a 
Chief Financial Officer is confirmed by the Senate. The 
Department is further directed to add 4 FTEs to the OCFO Office 
of Accounting staffing level above the fiscal year 2017 level. 
The Department shall not alter the organizational structure of 
OCFO as in effect on January 1, 2015, without prior written 
approval of the House and Senate Committees on Appropriations.

                 Program Offices Salaries and Expenses


                       PUBLIC AND INDIAN HOUSING

Appropriations, 2017....................................    $216,000,000
Budget estimate, 2018...................................     216,633,000
Committee recommendation................................     222,000,000

                          PROGRAM DESCRIPTION

    This account provides salary and benefits funding to 
support staff in headquarters and in 46 field offices in the 
Office of Public and Indian Housing [PIH]. PIH is charged with 
ensuring the availability of safe, decent, and affordable 
housing, creating opportunities for residents' self-sufficiency 
and economic independence, and assuring the fiscal integrity of 
all public housing agencies. The Office ensures that safe, 
decent and affordable housing is available to Native American 
families, creates economic opportunities for tribes and Indian 
housing residents, assists tribes in the formulation of plans 
and strategies for community development, and assures fiscal 
integrity in the operation of its programs. The Office also 
administers programs authorized in the Native American Housing 
Assistance and Self Determination Act of 1996 [NAHASDA], which 
provides housing assistance to Native Americans and Native 
Hawaiians. PIH also manages the Housing Choice Voucher program, 
in which tenant-based vouchers increase affordable housing 
choices for low-income families. Tenant-based vouchers enable 
families to lease safe, decent, and affordable privately owned 
rental housing.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $222,000,000 
for this account, which is $5,367,000 more than the budget 
request and $6,000,000 more than the fiscal year 2017 enacted 
level. The Committee recommendation supports existing 
personnel, and reflects the establishment of a Working Capital 
Fund in fiscal year 2017 for shared service costs. Of the 
amounts provided, no less than $200,000 is for travel related 
to the provision of training, technical assistance, oversight 
and management of Indian housing.
    The Committee directs HUD to prioritize the hiring of one 
additional staff person in the field office for the management 
and oversight of Native Hawaiian programs.
    The Committee directs HUD to inform the House and Senate 
Committees on Appropriations within 30 days of enactment of 
this act regarding how it is implementing the Committee's 
hiring direction.

                   COMMUNITY PLANNING AND DEVELOPMENT

Appropriations, 2017....................................    $110,000,000
Budget estimate, 2018...................................     107,554,000
Committee recommendation................................     108,300,000

                          PROGRAM DESCRIPTION

    This account provides salary and benefits funding for 
Community Planning and Development [CPD] staff in headquarters 
and in 43 field offices. CPD's mission is to support successful 
urban, suburban and rural communities by promoting integrated 
approaches to community and economic development. CPD programs 
also assist in the expansion of opportunities for low- and 
moderate-income individuals and families in moving towards home 
ownership. The Assistant Secretary for CPD administers formula 
and competitive grant programs, as well as guaranteed loan 
programs that help communities plan and finance their growth 
and development. These programs also help communities increase 
their capacity to govern and provide shelter and services for 
homeless persons and other persons with special needs, 
including person with HIV/AIDS.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $108,300,000 
for the staffing within this office, which is $746,000 more 
than the budget request and $1,700,000 less than the fiscal 
year 2017 enacted level.
    The Committee directs HUD to prioritize the hiring of staff 
to support grant monitoring, as well as the closeout of open 
audits and backlog of open grants particularly as it relates to 
disaster recovery grants, before hiring in other areas, unless 
such staff are identified as backfilling mission-critical 
positions.
    The Committee directs HUD to inform the House and Senate 
Committees on Appropriations within 30 days of enactment of 
this act regarding how it is implementing the Committee's 
hiring direction.
    New Housing in High Cost Metropolitan Areas.--The Committee 
is concerned that a combination of income concentration and 
housing supply constraints in high-productivity metropolitan 
areas has created entry limits harmful to geographic and 
economic mobility. Upward price pressure on rents resulting 
from such conditions imposes a greater financial burden on 
Federal taxpayers through rental assistance programs that 
respond to market rents. The Committee directs the Department 
to report to the House and Senate Committees on Appropriations 
no later than 90 days after the date of enactment of this act, 
identifying metropolitan areas where such conditions are most 
prevalent and recommending best practices for localities and 
states to help encourage the production of new housing stock in 
high-cost metropolitan areas.
    Promise Zones.--Since 2014, HUD has competitively made 
Promise Zone designations in 21 communities. These designations 
partner the Federal government with local communities to 
address multiple community revitalization challenges in a 
collaborative way and have demonstrated a commitment to 
results. To realize the full potential of these designations, 
the Committee has included language this year directing HUD to 
continue supporting the existing Promise Zone designations for 
the length of their agreements.

                                HOUSING

Appropriations, 2017....................................    $392,000,000
Budget estimate, 2018...................................     365,829,000
Committee recommendation................................     383,000,000

                          PROGRAM DESCRIPTION

    This account provides salary and benefits funding to 
support staff in headquarters and in 52 field locations in the 
Office of Housing. The Office of Housing is responsible for 
implementing programs to assist projects for occupancy by very 
low- and moderate-income households, to provide capital grants 
to nonprofit sponsors for the development of housing for the 
elderly and disabled, and to conduct several regulatory 
functions. The Office also administers Federal Housing 
Administration [FHA] programs. FHA administers HUD's mortgage 
and loan insurance programs, which facilitate the financing of 
new construction, rehabilitation or the purchase of existing 
dwelling units. The Office also provides services to maintain 
and preserve homeownership, especially for underserved 
populations. This assistance allows lenders to make lower cost 
financing available to more borrowers for home and home 
improvement loans, and apartment, hospital, and nursing home 
loans. FHA provides a vital link in addressing America's 
homeownership and affordable housing needs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $383,000,000 
for staffing in the Office of Housing, which is $17,171,000 
more than the budget request and $9,000,000 less than the 
fiscal year 2017 enacted level.

                    POLICY DEVELOPMENT AND RESEARCH

Appropriations, 2017....................................     $24,000,000
Budget estimate, 2018...................................      24,065,000
Committee recommendation................................      25,400,000

                          PROGRAM DESCRIPTION

    This account provides salary and benefits funding to 
support staff in headquarters and in 16 field locations in the 
Office of Policy Development and Research [PD&R;]. PD&R; supports 
the Department's efforts to help create cohesive, economically 
healthy communities. PD&R; is responsible for maintaining 
current information on housing needs, market conditions, and 
existing programs, as well as conducting research on priority 
housing and community development issues. The office provides 
reliable and objective data and analysis to help inform policy 
decisions.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $25,400,000 
for this account, which is $1,335,000 more than the budget 
request and $1,400,000 more than the fiscal year 2017 enacted 
level.
    PD&R; collects and distributes data on HUD programs, the 
people HUD serves, and housing needs across the country, in 
addition to providing technical assistance in these areas. The 
information it makes available and the analysis it provides to 
the Department are essential to moving HUD to outcome-based 
performance measures. The Committee also relies on the data and 
research provided by PD&R; to inform its work. The recommended 
amount will ensure that PD&R; can continue to play this 
important role.

                   FAIR HOUSING AND EQUAL OPPORTUNITY

Appropriations, 2017....................................     $72,000,000
Budget estimate, 2018...................................      69,808,000
Committee recommendation................................      72,400,000

                          PROGRAM DESCRIPTION

    This account provides salary and benefits funding to 
support staff in headquarters and in all regional offices in 
the Office of Fair Housing and Equal Opportunity [FHEO]. FHEO 
is responsible for investigating, resolving, and prosecuting 
complaints of housing discrimination, as well as conducting 
education and outreach activities to increase awareness of the 
requirements of the Fair Housing Act. The Office also develops 
and interprets fair housing policy, processes complaints, 
performs compliance reviews, and provides oversight and 
technical assistance to local housing authorities and community 
development agencies regarding section 3 of the Housing and 
Urban Development Act of 1968.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $72,400,000, 
which is $2,592,000 more than the budget request and $400,000 
more than the fiscal year 2017 enacted level.

            OFFICE OF LEAD HAZARD CONTROL AND HEALTHY HOMES

Appropriations, 2017....................................      $9,353,000
Budget estimate, 2018...................................       7,600,000
Committee recommendation................................       8,200,000

                          PROGRAM DESCRIPTION

    This account provides salary and benefits funding to 
support the Office of Lead Hazard Control and Healthy Homes 
[OLHCHH] headquarters staff. OLHCHH administers and manages the 
lead-based paint and healthy homes activities of the 
Department, and is directly responsible for the administration 
of the Lead-Based Paint Hazard Reduction program. The office 
also develops lead-based paint regulations, guidelines, and 
policies applicable to HUD programs, designs lead-based paint 
and healthy homes training programs, administers lead-hazard 
control and healthy homes grant programs, and implements the 
lead and healthy homes research program.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $8,200,000 for 
this account, which is $600,000 more than the budget request 
and $1,153,000 less than the fiscal year 2017 enacted level.

                          WORKING CAPITAL FUND

                     (INCLUDING TRANSFER OF FUNDS)

                          PROGRAM DESCRIPTION

    The Department of Housing and Urban Development's Working 
Capital Fund [WCF] was established by the Consolidated 
Appropriations Act, 2017. The purpose of the WCF is to promote 
economy, efficiency, and accountability. Amounts transferred to 
the Fund are for Federal shared services used by offices and 
agencies of the Department, and are derived from centralized 
Salaries and Expenses accounts starting in 2017.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation provides the Secretary with 
the authority to transfer amounts provided in this title for 
salaries and expenses, except those for the Office of Inspector 
General, to this account for the purpose of funding centralized 
activities. The Department is required to centralize and fund 
from this account any shared service agreements executed 
between HUD and another Federal agency. For fiscal year 2018, 
the Department is permitted to centralize and fund from this 
account: financial management, procurement, travel, relocation, 
human resources, printing, records management, space 
renovation, furniture, and supply services. The Committee does 
not expand the authority to include the proposed management 
data initiative. The Committee expects that, prior to 
exercising discretion to centrally fund an activity, the 
Secretary shall have established transparent and reliable unit 
cost accounting for the offices and agencies of the Department 
that use the activity and shall have adequately trained staff 
within each affected office and agency on resource planning and 
accounting processes associated with the centralization of 
funds to this account.
    Prior to exercising its authority to transfer funds for 
activities beyond what is required for shared service 
agreements, the Committee expects HUD to establish a clear 
execution plan for centralizing the additional activities and 
to properly vet that plan with the House and Senate Committees 
on Appropriations prior to transferring such funds into the 
WCF. Financial management, procurement, travel, and relocation 
costs for services provided to the Office of the Inspector 
General are covered by the Office of the Chief Financial 
Officer.
    HUD shall include in its annual operating plan a detailed 
outline of its plans for transferring budgetary resources to 
the WCF in fiscal year 2018.
    The Committee directs the Department to submit to the House 
and Senate Committees on Appropriations within 90 days of 
enactment of this act a report on HUD's shared service 
agreement with the Administrative Resource Center [ARC] for 
financial management, procurement, and travel services. This 
report shall, at a minimum, define the scope of the agreement 
(including the defined roles of ARC and HUD), summarize the 
agreed upon solutions for addressing HUD's core accounting, 
financial management and reporting, procurement, and travel 
functions, and provide an update on all outcomes of the shared 
service agreement as of September 30, 2017. The report shall 
identify how the shared service agreement addresses weaknesses 
and deficiencies in program administration, systems and data 
management, and human capital that effect HUD's annual 
financial accounting and reporting. It shall also identify 
functionality HUD previously had related to financial 
management and reporting, procurement, and travel that has been 
lost as a result of the shift to a shared service model.

                       Public and Indian Housing


                     TENANT-BASED RENTAL ASSISTANCE

Appropriations, 2017.................................... $20,292,000,000
Budget estimate, 2018...................................  19,317,900,000
Committee recommendation................................  21,365,120,000

                          PROGRAM DESCRIPTION

    This account provides funding for the Section 8 tenant-
based (voucher) program. Section 8 tenant-based housing 
assistance is one of the principle appropriations for Federal 
housing assistance, serving approximately 2.2 million families. 
The program also funds incremental vouchers for tenants who 
live in properties where the owner has decided to leave the 
Section 8 program. The program also provides for the 
replacement of units lost from the assisted housing inventory 
through its tenant protection vouchers. Under these programs, 
eligible low-income individuals and families pay 30 percent of 
their adjusted income for rent, and the Federal Government is 
responsible for the remainder of the rent, up to the fair 
market rent or some other payment standard. This account also 
provides funding for administrative fees for PHAs, mainstream 
vouchers, Housing and Urban Development Veterans Supportive 
Housing [HUD-VASH] programs, and other incremental vouchers for 
vulnerable populations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of 
$21,365,120,000 for fiscal year 2018, including $4,000,000,000 
as an advance appropriation to be made available on October 1, 
2018. This amount is $2,047,220,000 more than the budget 
request and $1,073,120,000 more than the fiscal year 2017 
enacted level.
    Contract Renewals.--The Committee recommends 
$19,370,000,000 for the renewal costs of Section 8 vouchers, 
which is $1,786,174,000 more than the budget request and 
$1,015,000,000 more than the fiscal year 2017 enacted level.
    The Section 8 rental assistance program is a critical tool 
that enables more than 2 million low-income individuals and 
families to access safe, stable, and affordable housing in the 
private market. In recognition of the Section 8 program's 
central role in ensuring housing for vulnerable Americans, the 
Committee recommendation and existing reserves will provide 
sufficient resources to ensure that no current voucher holders 
are put at risk of losing their housing assistance. It also 
supports the first time renewal of incremental vouchers that 
were funded in prior years, including HUD-VASH vouchers. The 
Committee will continue to monitor leasing data to make sure 
residents are protected.
    Regulatory Relief.--The Committee recognizes the growing 
demand placed on small-and medium-sized public housing agencies 
across the Nation. Given this recognition, the Committee 
believes that small agencies may face disproportionate 
regulatory burdens and the Department should simplify 
monitoring and compliance requirements. The Committee continues 
to urge HUD to eliminate excessive paperwork and administrative 
requirements and develop opportunities that achieve new 
efficiencies in management and operations for small- and 
medium-sized public housing agencies. The Committee directs HUD 
to report to the House and Senate Committees on Appropriations 
on recommendations for statutory and regulatory relief for 
small- to medium-sized PHAs within 120 days of enactment of 
this act. The Committee is also concerned that certain PHAs 
that do not meet the definition of small-and-medium sized also 
face similar regulatory challenges. Therefore, the Committee 
encourages HUD to examine the administrative requirements and 
identify possible efficiency adjustments that can be made for 
PHAs that only administer the Section 8 Housing Choice Voucher 
Program.
    Set-Aside for Special Circumstances.--The Committee has 
provided a set-aside of $75,000,000 to allow the Secretary to 
adjust allocations to PHAs under certain circumstances. 
Qualifying factors include: (1) a significant increase, as 
determined by the Secretary, in renewal costs of tenant-based 
rental assistance resulting from unforeseen circumstances and 
voucher utilization or the impact from portability under 
section 8(r) of the act; (2) vouchers that were not in use 
during the previous 12-month period in order to be available to 
meet a commitment pursuant to section 8(o)(13) of the act; (3) 
adjustments or costs associated with HUD-VASH vouchers; and (4) 
possible termination of families as a result of insufficient 
funding. A PHA should not receive an adjustment to its 
allocation from the funding provided under this section if the 
Secretary determines that such PHA, through negligence or 
intentional actions, would exceed its authorized level of 
vouchers.
    HUD-VASH.--Since 2008, the Committee has provided more than 
$500,000,000 in targeted funding to address veterans' 
homelessness. Communities across the country have been able to 
use these resources to make tremendous strides in addressing 
veterans' homelessness. Progress continues to be made in 2017 
as communities including La Crosse, Wisconsin, and Akron, Ohio 
joined a growing list of cities and states that have ended 
veterans' homelessness. These successes, which are the result 
of hard work and effective collaboration, have been critical in 
reducing veterans' homeless by 47 percent since 2010. For this 
reason, the Committee again rejects the budget proposal to 
prematurely end funding for new VASH vouchers and includes 
$40,000,000 for this purpose.
    The Committee also encourages the Department to use 
existing authority to recapture HUD-VASH voucher assistance 
from PHAs that voluntarily declare that they no longer have a 
need for that assistance, and reallocate it to PHAs with an 
identified need. The Committee directs HUD to expedite this 
process, ensuring that communities that have successfully ended 
veterans' homelessness enable other communities to assist this 
population. The Committee encourages the Department to 
prioritize, as part of this reallocation, PHAs that project-
base a portion of their HUD-VASH vouchers.
    Tribal-VASH.--The Committee recommendation includes 
$5,000,000 for rental assistance and associated administrative 
costs for Tribal HUD-VASH to serve Native American veterans 
that are homeless or at-risk of homelessness living on or near 
a reservation or other Indian areas. The Committee is aware 
that House and Senate authorizing committees are considering 
authorizing this demonstration program. As part of this 
consideration, the Committee encourages the respective 
committees of jurisdiction to consider the effectiveness of 
administering the program through the Office of Native American 
Programs, as currently demonstrated, rather than the Office of 
Housing Choice Vouchers, where traditional HUD-VASH vouchers 
are managed. The Department's administration and use of these 
funds have been in alignment with the administration of 
programs authorized under the Native American Housing and Self 
Determination Act [NAHASDA]. As a result, the Committee 
encourages the authorizing committees to consider authorizing 
this program, as appropriate, as part of NAHASDA rather than 
under the 1937 Housing Act.
    Administrative Fees.--The Committee recommends 
$1,725,000,000 for administrative fees, which is $175,000,000 
more than the budget request and $75,000,000 more than the 
fiscal year 2017 enacted level. The Committee is concerned that 
where there is a significant fluctuation in local rental market 
conditions, HUD's published fair market rents do not reflect 
the increased need in rental subsidy and the associated 
operating costs. As a result, some PHAs are conducting 
independent market surveys to more accurately reflect local 
market conditions, to submit to HUD for review and 
consideration. The Committee understands that such surveys are 
an eligible administrative expense under the Housing Choice 
Voucher program, and therefore directs HUD to issue clarifying 
guidance within 90 days of enactment of this act on how PHAs 
can use administrative fee funding for this purpose.
    Tenant Protection Vouchers.--The Committee recommendation 
includes $75,000,000 for tenant protection vouchers. These 
vouchers are provided to public housing residents whose 
buildings have health or safety issues, or whose projects are 
being demolished. However, the largest share of these vouchers 
is provided to tenants living in properties with expiring HUD 
assistance that may face rent increases if their owners opt out 
of HUD programs. In these instances, the vouchers ensure 
continued affordability of tenants' housing.
    Section 811 Mainstream Vouchers.--The Committee recommends 
$130,120,000 to continue the rental assistance and 
administrative costs of this program.
    Family Unification Program [FUP].--Young adults associated 
with child welfare systems are more likely to experience 
homelessness as adults or as they transition to adulthood. The 
Committee recognizes that stable, affordable housing with 
appropriate services can help prevent children from being 
unnecessarily removed from their families and help youth 
exiting foster care transition to adulthood. Therefore, the 
Committee includes $20,000,000 for new FUP vouchers. The 
Committee directs HUD to prioritize the award of these new 
vouchers to PHAs that will target them to youth and PHAs that 
have partnered with their local public child welfare agency to 
ensure youth referrals for these vouchers. The Committee also 
includes language permitting the Secretary to recapture voucher 
assistance from PHAs that no longer have a need for that 
assistance, and reallocate to it to PHAs with an identified 
need.

                        HOUSING CERTIFICATE FUND

                        (INCLUDING RESCISSIONS)

                          PROGRAM DESCRIPTION

    Until fiscal year 2005, the Housing Certificate Fund 
provided funding for both the project-based and tenant-based 
components of the Section 8 program. Project-based rental 
assistance and tenant-based rental assistance are now 
separately funded accounts. The Housing Certificate Fund 
retains balances from previous years' appropriations.

                        COMMITTEE RECOMMENDATION

    The Committee has included language that will allow 
unobligated balances from specific accounts to be used to renew 
or amend project-based rental assistance contracts.

                      PUBLIC HOUSING CAPITAL FUND

Appropriations, 2017....................................  $1,941,500,000
Budget estimate, 2018...................................     628,000,000
Committee recommendation................................   1,945,000,000

                          PROGRAM DESCRIPTION

    This account provides funding for modernization and capital 
needs of PHAs (except Tribally Designated Housing Entities), 
including management improvements, resident relocation, and 
homeownership activities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $1,945,000,000 
for the Public Housing Capital Fund, which is $1,317,000,000 
more than the budget request and $3,500,000 more than the 
fiscal year 2017 enacted level.
    Of the amount made available under this account, 
$25,000,000 is for supportive services for residents of public 
housing under the Resident Opportunity and Self-Sufficiency 
[ROSS] program, and $15,000,000 is for the Jobs-Plus 
demonstration. The Committee also recommends up to $8,300,000 
to support the ongoing financial and physical assessment 
activities performed by the Real Estate Assessment Center 
[REAC] and $1,000,000 for the cost of administrative and 
judicial receiverships.
    ConnectHome.--The Committee does not include resources for 
the ConnectHome initiative, which provides a platform for 
collaboration among local governments, public housing agencies, 
Internet service providers, philanthropic foundations, 
nonprofit organizations and other relevant stakeholders to work 
together to produce local solutions for narrowing the digital 
divide in communities across the Nation served by HUD. However, 
the Committee encourages the Department to continue to partner 
with these entities to help identify ways residents living in 
public housing can connect to broadband infrastructure through 
technical assistance and digital literacy training. The 
Committee encourages HUD to work with its partners to take 
steps to expand the number of participating communities.
    Safety and Security in Public Housing.--The Committee 
directs at least $5,000,000 of the $21,500,000 recommended for 
emergency capital needs for safety and security measures 
necessary to address crime and drug-related activity in public 
housing. The Committee has included this specific set-aside 
because there are PHAs facing safety and security issues that 
rely on these funds to protect their tenants. The Committee 
notes that the demand for these funds continues to grow while 
the amount that HUD is awarding to PHAs is decreasing. The 
Committee believes that the level of funding recommended will 
support both repairs from disasters and safety and security 
improvements. Therefore, the Committee directs the Department 
to fund eligible safety and security projects with a portion of 
these funds as quickly as possible. The Committee continues 
language clarifying that unused funds from the emergency set-
aside shall be used to address safety and security needs of 
PHAs and the residents who live in these properties.
    Quality Assurance of Physical Inspections.--The Committee 
remains concerned about the physical quality of some HUD-
subsidized properties across the country, including incidences 
of unaddressed or untimely responses to health-related hazards 
in HUD-assisted housing. The scope of this issue has spanned 
geographic regions, but the Committee is encouraged that 
authorizing committees have taken steps to address systemic 
problems with HUD's oversight, and improved the Real Estate 
Assessment Center's [REAC] inspections of HUD-assisted housing. 
The Committee directs the Department to move expeditiously to 
implement the provisions contained in section 101 of title I of 
the Housing Opportunity Through Modernization Act of 2016, 
which unambiguously affirms congressional intent regarding 
inspections and tenant protections. The Committee also directs 
the Department to submit to the House and Senate Committees on 
Appropriations 30 days after enactment of this act, a report 
identifying how funds provided for the Real Estate Assessment 
Center, including any carryover balances, will be utilized 
during fiscal year 2018. The Committee further directs the Real 
Estate Assessment Center to work with the Office of Policy 
Development and Research to identify and implement a 
statistically significant sample photographic review of HUD-
assisted properties that receive a passing inspection score 
during fiscal year 2018. The Department shall report its 
findings from this review to the House and Senate Committees on 
Appropriations no later than September 30, 2018.
    The Committee encourages the Department to work with the 
House and Senate authorizing committees on enforcement actions, 
including civil monetary penalties, that HUD can take to ensure 
PHAs and landlords maintain the physical quality of HUD-
assisted units.
    The Committee continues to support efforts to quickly issue 
tenant-protection vouchers to ensure affected residents are 
expeditiously securing housing that meets HUD's decent, safe 
and sanitary standards. The Committee would like to reiterate 
that failure to maintain the physical condition of HUD-assisted 
properties results in a loss of critical affordable housing and 
tenant protection vouchers are of questionable value to 
families that encounter a lack of affordable housing in their 
communities. The Committee recognizes that residents displaced 
from public housing may find it difficult to find replacement 
housing within their existing community and may have to find 
replacement housing within the jurisdictions of other public 
housing authorities. One of the few options that may be 
available to residents in communities with limited rental 
housing stock is replacement housing that is owned by a family 
member, which is currently prohibited under 24 CFR Part 982. 
The Committee supports the intent of the rule, which is to 
reduce the potential for fraud and abuse under the Section 8 
program, however there are limited circumstances where an 
exception to the regulatory prohibition may be warranted. 
Therefore, the Committee encourages the Department to waive the 
prohibition under 24 CFR Part 982 on a case-by-case basis in 
emergency circumstances where a resident has been displaced due 
to uninhabitable conditions, there are no other safe and 
affordable housing options within the public housing agency's 
jurisdiction, and moving outside of the PHA's jurisdiction 
would place an undue burden on the resident. Housing rented 
under such a waiver must continue to meet all other 
requirements for housing assistance payment contracts.
    Public Housing Receiverships.--The Committee directs the 
Department to report quarterly during fiscal year 2018 to the 
House and Senate Committees on Appropriations on the status of 
public housing agencies under receivership, including factors 
that informed the receivership such as physical and financial 
scores, deficiencies with internal controls, and other 
information demonstrating why HUD believes PHAs are unable to 
effectively oversee their business operations. This report 
shall also include an identification of funding resources and 
technical assistance provided to the PHA for the purpose of 
bringing it out of receivership, and future steps HUD will take 
to address deficiencies in an effort to return the respective 
PHAs to local control.
    Cash Management.--The Committee is aware that the 
Department continues to work on implementing improved cash 
management for public housing agencies. The Department is 
reminded that effective cash management policies will require 
coordinated efforts and transparency across offices.
    Lead-Based Paint.--In fiscal year 2017 the Committee 
included $25,000,000 to help PHAs address lead-based paint 
hazards in public housing units, to ensure the physical 
condition of units meet the criteria set forth in HUD's amended 
blood lead level standards. This funding will be competitively 
awarded to PHAs for lead inspections, risk assessments, interim 
controls and abatements, and will provide greater protections 
for more than 1,000 children under the age of 6 living in 
public housing. As the Department develops the notice of 
funding availability for this competition, the Committee 
encourages the Office of Public Housing Investments [OPHI] to 
consult with the Office of Lead Hazard Control and Healthy 
Homes in the design of the initiative to ensure the competition 
meets the standards set-forth in HUD's lead-based paint 
regulations. Further, the Committee expects the Department to 
work with PHAs to ensure that the initiative reflects the 
unique needs of the industry. The Committee continues to 
strongly encourage HUD to work with PHAs, their maintenance 
staff, and tenants to help ensure potential lead-based paint 
risks are identified and addressed expeditiously.

                     PUBLIC HOUSING OPERATING FUND

Appropriations, 2017....................................  $4,400,000,000
Budget estimate, 2018...................................   3,900,000,000
Committee recommendation................................   4,500,000,000

                          PROGRAM DESCRIPTION

    This account provides funding for the payment of operating 
subsidies to approximately 3,100 PHAs (except tribally 
designated housing entities) with a total of approximately 1.2 
million units under management in order to augment rent 
payments by residents in order to provide sufficient revenues 
to meet reasonable operating costs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,500,000,000 
for the public housing operating fund, which is $600,000,000 
more than the budget request and $100,000,000 more than the 
fiscal year 2017 enacted level.
    Regulatory Relief.--The Committee recognizes the growing 
demand placed on small-and medium-sized public housing agencies 
across the Nation. Given this recognition, the Committee 
believes that small agencies may face disproportionate 
regulatory burdens and the Department should simplify 
monitoring and compliance requirements. The Committee continues 
to urge HUD to eliminate excessive paperwork and administrative 
requirements and develop opportunities that achieve new 
efficiencies in management and operations for small public 
housing agencies. The Committee directs HUD to report to the 
House and Senate Committees on Appropriations on 
recommendations for statutory and regulatory relief for small- 
to medium-sized PHAs within 120 days of enactment of this act.
    Operating Fund Adjustment Factors.--The Committee is 
concerned that the Department's current methodology for 
calculating formula income and utility expenses for PHAs does 
not accurately reflect the reality that many experience 
locally. This is especially true for those PHAs that serve a 
large elderly or disabled populations, or operate on a utility 
that is of higher cost than other parts of the country. The 
Committee appreciates that the Department takes seriously 
concerns raised by PHAs and is reviewing its data and 
evaluating alternative approaches. The Committee directs the 
Department to report to the House and Senate Committees on 
Appropriations 30 days after enactment of this act on 
alternative methodologies for calculating PHA formula income 
for purposes of Operating Fund eligibility.

                    CHOICE NEIGHBORHOODS INITIATIVE

Appropriations, 2017....................................    $137,500,000
Budget estimate, 2018...................................................
Committee recommendation................................      50,000,000

                          PROGRAM DESCRIPTION

    The Choice Neighborhoods initiative provides competitive 
grants to transform impoverished neighborhoods into 
functioning, sustainable, mixed-income neighborhoods with co-
location of appropriate services, schools, public assets, 
transportation options, and access to jobs or job training. 
Choice Neighborhoods grants fund the preservation, 
rehabilitation, and transformation of public and HUD-assisted 
housing, as well as their neighborhoods. Grantees include PHAs, 
tribes, local governments, and nonprofit organizations. For-
profit developers may also apply in partnership with another 
eligible grantee. Grant funds can be used for resident and 
community services, community development and affordable 
housing activities in surrounding communities. Grantees 
undertake comprehensive local planning with input from 
residents and the community.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $50,000,000 
for the Choice Neighborhoods initiative. This amount is 
$87,500,000 less than the fiscal year 2017 enacted level and 
$50,000,000 more than the budget request. Of the total amount 
provided, not less than $25,000,000 shall be awarded to 
projects where PHAs are the lead applicant, and no more than 
$5,000,000 may be used for planning, including planning and 
action, grants.
    Choice Neighborhoods builds on the HOPE VI program by 
expanding the pool of eligible grantees and allowing funding to 
be used for HUD-owned or -assisted housing, as well as the 
surrounding community. Inherent to the Choice Neighborhoods 
initiative is the understanding that community transformation 
requires more than replacing housing. The creation of vibrant, 
sustainable communities also requires greater access to 
transportation, jobs and services that will increase 
opportunities for community residents. However, HUD funding 
cannot support all of these activities without strong public-
private partnerships. The Committee continues to be encouraged 
by the ability of Choice Neighborhood grantees to leverage 
significant resources with their grant awards, to expand 
opportunities for residents living in Choice Neighborhoods 
sites.
    The Committee notes that successful community planning 
brings together multiple partners and funding sources that aid 
in community transformation. The Committee continues to direct 
the Secretary to give priority consideration to grantees that 
have been previously awarded planning grants when making 
implementation grant awards.

                        FAMILY SELF-SUFFICIENCY

Appropriations, 2017....................................     $75,000,000
Budget estimate, 2018...................................      75,000,000
Committee recommendation................................      75,000,000

                          PROGRAM DESCRIPTION

    The Family Self-Sufficiency [FSS] program provides funding 
to help Housing Choice Voucher, project-based Section 8, and 
Public Housing residents achieve self-sufficiency and economic 
independence. The FSS program is designed to provide service 
coordination through community partnerships that link residents 
with employment assistance, job training, child care, 
transportation, financial literacy, and other supportive 
services. The funding will be allocated through one competition 
to eligible PHAs to support service coordinators who will serve 
both public housing and vouchers residents.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $75,000,000 
for the FSS program in fiscal year 2018, an amount equal to the 
fiscal year 2017 enacted level and the budget request.
    The Committee strongly supports the FSS program, which 
helps provide public housing and Section 8 residents with the 
tools to improve their lives and achieve self-sufficiency. In 
fiscal year 2014, the Committee combined Section 8 voucher and 
public housing FSS programs so that public housing agencies 
could manage one unified program. Since fiscal year 2015, the 
Committee has included language expanding the program to serve 
residents living in project-based Section 8 housing. This 
authority allows property owners to create escrow accounts and 
fund service coordinators with residual receipts. As a result 
of this language, HUD is working with project-based Section 8 
property owners on the implementation of FSS at select 
properties. As the program expands to additional project-based 
Section 8 properties, the Committee expects HUD to continue to 
hold webinars, trainings, and share best-practices for property 
owners currently operating and seeking to implement a new FSS 
program. Further, the Committee strongly encourages the 
Department to continue work with PHAs and property owners, 
including those converting existing FSS programs through the 
Rental Assistance Demonstration, to ensure they comply with 
reporting and other program requirements.

                  NATIVE AMERICAN HOUSING BLOCK GRANTS

Appropriations, 2017....................................    $654,000,000
Budget estimate, 2018...................................     600,000,000
Committee recommendation................................     655,000,000

                          PROGRAM DESCRIPTION

    This account funds the Indian Housing Block Grant Program, 
as authorized under title I of the Native American Housing 
Assistance and Self-Determination Act of 1996 [NAHASDA]. This 
program provides a funding allocation on a formula basis to 
Indian tribes and their tribally designated housing entities to 
help address the housing needs within their communities. Under 
this block grant, Indian tribes use performance measures and 
benchmarks that are consistent with the national goals of the 
program, but can base these measures on the needs and 
priorities established in their own Indian housing plan.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $655,000,000 for the 
Indian Housing Block Grant [IHBG] and Title VI Loan Guarantee 
programs, of which $646,000,000 is for IHBG formula grants, 
$7,000,000 is for technical assistance, and $2,000,000 is for 
credit subsidy to support a Title VI guaranteed loan level not 
to exceed $17,391,304. The recommended level of funding is 
$1,000,000 more than the amount provided in fiscal year 2017 
and $55,000,000 more than the budget request.
    Recognizing the tremendous needs in Indian Country and the 
limited resources available to address these challenges, the 
Committee includes a provision limiting the amount of funding a 
Tribe may receive from the IHBG program to not more than 10 
percent. The Committee directs HUD to collect data as part of 
tribes' Indian Housing Plan submissions on new program activity 
that is generated due to this provision.
    IHBG is a vital resource for tribal governments to address 
the dire housing conditions in Indian Country, and access to 
affordable housing remains in a critical state for many tribes 
across the country. Native Americans living in tribal areas are 
nearly twice as likely to live in poverty compared to the rest 
of the Nation. As a result, the housing challenges on tribal 
lands are daunting. According to the American Housing Survey 
data for 2013, 16 percent of homes on American Indian 
reservations and off-reservation trust land are overcrowded, 
compared to 2 percent of households nationwide. In addition to 
being overcrowded, 34 percent of Native American housing units 
suffer from one or more physical problems compared with only 7 
percent for U.S. households, on average.
    The Committee believes the housing goals for American 
Indians, Alaska Natives, and Native Hawaiians remain a 
priority. The housing resources provided by this Committee 
serve communities who are disproportionately low income, more 
likely to experience homelessness or overcrowded living 
conditions and unable to utilize traditional lending sources 
for homeownership. IHBG has aided thousands of individuals and 
families in the pursuit of safe, affordable housing and the 
Committee encourages HUD to continue providing appropriate 
assistance and resources based on continued demonstrable need.
    Coordinated Environmental Reviews for Tribal Housing and 
Related Infrastructure.--In fiscal year 2015, the Committee 
directed HUD to collaborate with the Council on Environmental 
Quality and affected Federal agencies, including the 
Departments of the Interior, Agriculture, Commerce, Energy, 
Health and Human Services, the Federal Highway Administration, 
and the Environmental Protection Agency, to develop a 
coordinated environmental review process to simplify tribal 
housing development and its related infrastructure needs. The 
Committee expects HUD to continue to update the Committee on 
the status and progress of these ongoing efforts.
    Technical Assistance.--Limited capacity hinders the ability 
of many tribes to effectively address their housing needs. The 
Committee recommendation includes $7,000,000 for technical 
assistance needs in Indian country to support the IHBG program, 
as well as other HUD programs, in order to meet the needs of 
Native American families and Indian country. The Committee 
expects HUD to use the technical assistance funding provided to 
aid tribes with capacity challenges, especially tribes 
receiving small grant awards. The funding should be used for 
training, contract expertise, and other services necessary to 
improve data collection, increase leveraging, and address other 
needs identified by tribes. The Committee also expects that 
these technical assistance funds will be provided to both 
national and regional organizations with experience in 
providing technical assistance that reflects the unique needs 
and culture of Native Americans.

           INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM ACCOUNT

------------------------------------------------------------------------
                                                         Limitation on
                                    Program account    guaranteed loans
------------------------------------------------------------------------
Appropriations, 2017............          $7,227,000      $1,762,683,000
Budget estimate, 2018...........  ..................  ..................
                                           .........           .........
Committee recommendation........           1,000,000         270,270,270
------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    This program provides access to private financing for 
Indian families, Indian tribes, and their tribally designated 
housing entities that otherwise could not acquire housing 
financing because of the unique status of Indian trust land. 
HUD continues to be the largest single source of financing for 
housing in tribal communities. This program makes it possible 
to promote sustainable reservation communities by providing 
access to financing for higher income Native Americans to 
achieve homeownership within their Native communities. As 
required by the Federal Credit Reform Act of 1990, this account 
includes the subsidy costs associated with the loan guarantees 
authorized under this program.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $1,000,000 in 
program subsidies to support a loan level of $270,270,270. This 
subsidy amount is $6,227,000 less than the fiscal year 2017 
enacted subsidy level and $1,000,000 more than the budget 
request.

                  NATIVE HAWAIIAN HOUSING BLOCK GRANT

Appropriations, 2017....................................      $2,000,000
Budget estimate, 2018...................................................
Committee recommendation................................       1,000,000

                          PROGRAM DESCRIPTION

    The Hawaiian Homelands Homeownership Act of 2000 created 
the Native Hawaiian Housing Block Grant program to provide 
grants to the State of Hawaii Department of Hawaiian Home Lands 
[DHHL] for housing and housing-related assistance, in order to 
develop, maintain, and operate affordable housing for eligible 
low-income Native Hawaiian families. As one of the United 
States' indigenous people, Native Hawaiian people have a unique 
relationship with the Federal Government.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $1,000,000 for 
the Native Hawaiian Housing Block Grant Program, which is 
$1,000,000 less than the fiscal year 2017 enacted level and 
$1,000,000 more than the budget request.
    The Native Hawaiian Housing Block Grant Program [NHHBG] 
provides funding for affordable housing activities on Hawaiian 
home lands to eligible Native Hawaiian families. This program 
is necessary given the general living conditions and poverty 
rates for Native Hawaiians. According to the 2011-2013 American 
Community Survey, approximately 19 percent of Native Hawaiian 
households were overcrowded compared to 3.3 percent of all 
households in the United States, and about 18.4 percent of 
Native Hawaiians in Hawaii live in poverty. According to HUD's 
2017 Housing Needs of Native Hawaiians report, Native Hawaiians 
are overrepresented in Hawaii's homeless population.
    Hawaiian home lands are dispersed throughout the Hawaiian 
Islands and are often in less desirable areas with steep 
terrain that is difficult to access and develop. The challenges 
involved with development of this raw land add to the already 
high cost of construction in the State. Project development is 
a lengthy process that involves complex environmental reviews 
with strict water resource requirements, procurement of 
construction contracts, and installation of entire public works 
systems. Development in several Hawaiian home land areas has 
been halted after the discovery of unexploded ordinance and 
DHHL is working with the U.S. Army Corps of Engineers to 
identify and remediate trust lands affected. These challenges 
have impeded the DHHL's ability to advance the traditional 
model of single housing family community developments. The 
Committee remains concerned that this traditional housing model 
does not address the severe housing needs of the 34,100 low-
income Native Hawaiian households that are eligible for 
assistance under the NHHBG program. The Committee directs HUD 
to ensure that the funds provided are administered to maximize 
the provision of affordable housing through the construction of 
high density, multi-family affordable housing and rental units, 
as well as housing counseling services and the rehabilitation 
of housing on Native Hawaiian home lands that do not meet safe 
and sanitary housing building standards.

                   COMMUNITY PLANNING AND DEVELOPMENT

              HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS

Appropriations, 2017....................................    $356,000,000
Budget estimate, 2018...................................     330,000,000
Committee recommendation................................     330,000,000

                          PROGRAM DESCRIPTION

    The Housing Opportunities for Persons With AIDS [HOPWA] 
program provides States and localities with resources and 
incentives to devise long-term, comprehensive strategies for 
meeting the housing and supportive service needs of persons 
living with HIV/AIDS and their families.
    By statute, 90 percent of formula-appropriated funds are 
distributed to qualifying States and metropolitan areas on the 
basis of the number of living HIV and living AIDS cases, as 
well as poverty and local housing cost factors. The remaining 
10 percent of funds are awarded through a national competition, 
with priority given to the renewal of funding for expiring 
agreements consistent with appropriations act requirements.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $330,000,000 
for the Housing Opportunities for Persons With AIDS [HOPWA] 
program. This level of funding is equal to the President's 
budget request and $26,000,000 less than the fiscal year 2017 
enacted level. The Committee continues to include language 
requiring HUD to allocate these funds in a manner that 
preserves existing HOPWA programs, to the extent that those 
programs are determined to be meeting the needs of persons with 
HIV/AIDS.

                       COMMUNITY DEVELOPMENT FUND

Appropriations, 2017....................................  $3,060,000,000
Budget estimate, 2018...................................................
Committee recommendation................................   3,060,000,000

                          PROGRAM DESCRIPTION

    Under title I of the Housing and Community Development Act 
of 1974, as amended, the Department is authorized to award 
block grants to units of general local government and States 
for the funding of local community development programs. A wide 
range of physical, economic, and social development activities 
are eligible with spending priorities determined at the local 
level, but the law enumerates general objectives which the 
block grants are designed to fulfill, including adequate 
housing, a suitable living environment, and expanded economic 
opportunities, principally for persons of low and moderate 
income. Grant recipients are required to use at least 70 
percent of their block grant funds for activities that benefit 
low- and moderate-income persons.
    Funds are distributed to eligible recipients for community 
development purposes utilizing the higher of two objective 
formulas, one of which gives somewhat greater weight to the age 
of housing stock. Of the funds appropriated, 70 percent are 
distributed to entitlement communities and 30 percent are 
distributed to nonentitlement communities after deducting 
designated amounts for insular areas.

                        COMMITTEE RECOMMENDATION

    The Committee has provided $3,000,000,000 for Community 
Development Block Grants [CDBG]. The recommended amount is 
$3,000,000,000 above the budget request and equal to the fiscal 
year 2017 enacted level. CDBG funding provides States and 
entitlement communities with resources that allow them to 
undertake a wide range of community development activities, 
including public infrastructure improvements, housing 
rehabilitation and construction, job creation and retention, 
and public services that primarily benefit low and moderate 
income persons. The CDBG program supports homeownership, 
housing rehabilitation, public improvements and economic 
development projects while encouraging additional local 
investment. From fiscal year 2005-2016, CDBG has assisted more 
than 1.3 million households rehabilitate their homes, provided 
down payment and closing cost assistance to qualified home 
buyers, and assisted homeowners with lead-based paint 
abatement. In addition, since 2005, the program has assisted in 
the creation and retention of more than 387,109 economic 
development-related jobs in low-income and moderate-income 
communities and provided public services benefitting over 133 
million people. For every $1.00 of CDBG Federal investment 
leverages another $3.65 in non-CDBG funding. Urban and rural 
communities rely on this funding to serve their most vulnerable 
residents, and where residents experience economic hardship. 
This program is vital to our nation's downtown and neighborhood 
revitalization efforts, and the Committee believes that every 
effort must be made to protect this essential funding 
mechanism.
    The flexibility associated with CDBG enables State and 
local governments to tailor solutions to effectively meet the 
unique needs of their communities. The Committee notes the 
importance of States and local grantees meeting the program's 
three national objectives, as they utilize the program's 
resources to address a wide range of community needs. As HUD 
works with communities to determine eligible activities that 
meet the national objective of benefiting low- and moderate-
income persons, the Committee encourages the Department to 
extend flexibility for rural communities under 1,000 residents 
to use alternate sources of data to establish Low-Moderate 
Income Survey Data [LMISD] when American Community Survey [ACS] 
data is considered by the Community Development Block Grant 
applicant to be unreliable.
    The Committee recommends $60,000,000 for grants to Indian 
Tribes for essential economic and community development 
activities, which is $60,000,000 above the budget request and 
equal to the fiscal year 2017 enacted level.
    To ensure the program remains flexible, but also 
accountable and transparent, the Committee recommendation 
continues provisions in bill language that prohibit any 
community from selling its CDBG award to another community and 
that any funding provided to a for-profit entity for an 
economic development project funded under this act undergo 
appropriate underwriting. The Committee has included these 
provisions to address concerns raised about how program dollars 
have been used and mitigate risks associated with it.
    Procurement Standards for Disaster Grantees.--Community 
Development Block Grant Disaster Recovery provides essential 
funding to States and localities recovering from natural 
disasters. In prior appropriations, Congress has directed HUD 
to provide thorough oversight of the auditing and procurement 
procedures implemented by grantees. In the Disaster Relief 
Appropriations Act of 2013 (Public Law 113-2), and in 
subsequent disaster recovery appropriations in fiscal years 
2015 and 2016, Congress specifically required HUD to certify 
that the procurement processes employed by each grantee meet a 
standard of proficiency. On March 5, 2013, HUD published Notice 
FR-5696-N-01 clarifying that a proficient standard is one that 
is equivalent to and in alignment with Federal procurement 
standards. The Committee believes that as long as HUD provides 
consistent and rigorous oversight of the procurement processes 
employed by State and local recipients, an equivalent, though 
not identical procurement standard that upholds the principles 
of fair and open competition can prevent Federal dollars 
appropriated for disaster recovery from being spent 
irresponsibly. The Committee agrees that this approach provides 
maximum feasible deference to grantees, particularly States, 
which is consistent with the CDBG program design.

         COMMUNITY DEVELOPMENT LOAN GUARANTEES PROGRAM ACCOUNT

------------------------------------------------------------------------
                                                          Limitation on
                                       Program account  guaranteed loans
------------------------------------------------------------------------
Appropriations, 2017................  ................      $300,000,000
Budget estimate, 2018...............  ................  ................
Committee recommendation............  ................       300,000,000
------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    Section 108 of the Housing and Community Development Act of 
1974, as amended, authorizes the Secretary to issue Federal 
loan guarantees of private market loans used by entitlement and 
nonentitlement communities to cover the costs of acquiring real 
property, rehabilitation of publicly owned real property, 
housing rehabilitation, and other economic development 
activities.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation provides a loan level 
guarantee of $300,000,000 which is equal to the fiscal year 
2017 enacted level and $300,000,000 above the budget request. 
The Committee requires HUD to collect fees to offset credit 
subsidy costs such that the program operates at a zero credit 
subsidy cost.
    This program enables CDBG recipients to use their CDBG 
dollars to leverage financing for economic development 
projects, community facilities, and housing rehabilitation 
programs. Communities are allowed to borrow up to five times 
their most recent CDBG allocation.

                  HOME INVESTMENT PARTNERSHIPS PROGRAM

Appropriations, 2017....................................    $950,000,000
Budget estimate, 2018...................................................
Committee recommendation................................     950,000,000

                          PROGRAM DESCRIPTION

    Title II of the National Affordable Housing Act, as 
amended, authorizes the HOME Investment Partnerships Program. 
This program provides assistance to States and local 
governments for the purpose of expanding the supply and 
affordability of housing to low-income and very low-income 
people. Eligible activities include tenant-based rental 
assistance, acquisition and rehabilitation of affordable rental 
and ownership housing, and housing construction. To participate 
in the HOME program, State and local governments must develop a 
comprehensive housing affordability strategy. There is a 25 
percent matching requirement for participating jurisdictions, 
which can be reduced or eliminated if they are experiencing 
fiscal distress.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $950,000,000 
for the HOME Investment Partnerships Program. This amount is 
equal to the fiscal year 2017 enacted level and $950,000,000 
more than the budget request.
    Affordable Housing Needs.--The Committee notes the 
substantial gains made by HOME in increasing the supply and 
affordability of housing for low-income families. Since 1992, 
States and localities have used $26,000,000,000 in HOME funds 
to leverage an additional $117,000,000,000 in public and 
private resources to build or preserve 1.2 million homes and 
provide rental assistance to 313,558 families. HOME has been 
particularly successful in helping extremely low-income 
families (at or below 30 percent of area median income) who 
have received 40 percent of assistance for affordable rental 
housing during the past 5 years. HOME is also a critical part 
of meeting the supportive housing needs of the low-to-moderate 
income individuals and families, including veterans, persons 
with disabilities and seniors. In addition, it is the only 
Federal housing grant program exclusively focused on providing 
States with the flexible financing needed to address our most 
pressing housing needs.

        SELF-HELP AND ASSISTED HOMEOWNERSHIP OPPORTUNITY PROGRAM

Appropriations, 2017....................................     $54,000,000
Budget estimate, 2018...................................................
Committee recommendation................................      54,000,000

                          PROGRAM DESCRIPTION

    The Self-Help and Assisted Homeownership Opportunity 
Program is comprised of the Self-Help Homeownership Opportunity 
Program [SHOP], which assists low-income homebuyers willing to 
contribute ``sweat equity'' toward the construction of their 
houses. These funds increase nonprofit organizations' ability 
to leverage funds from other sources. This account also 
includes funding for the Capacity Building for Community 
Development and Affordable Housing Program, as well as 
assistance to rural communities, as authorized under sections 
6301 through 6305 of Public Law 110-246. These programs assist 
in the development of the capacity of nonprofit community 
development organizations to carry out community development 
and affordable housing projects. This account also provides 
funding for the rehabilitation and modification of the homes of 
veterans, who are low-income or disabled, as authorized by 
section 1079 of Public Law 113-291.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $54,000,000 for the Self-Help and 
Assisted Homeownership Opportunity Program, which is equal to 
the fiscal year 2017 enacted level and $54,000,000 more than 
the budget request. The Committee rejects the Administration's 
proposal to eliminate this account. The Committee 
recommendation includes $10,000,000 for SHOP, as authorized 
under section 11 of the Housing Opportunity Extension Act of 
1996; $35,000,000 for capacity building, as authorized by 
section 4 of the HUD Demonstration Act of 1993; $5,000,000 to 
carry out capacity building activities in rural communities; 
and $4,000,000 for a program to rehabilitate and modify housing 
for veterans, who are low-income or disabled. The Committee 
notes that funding for technical assistance is being provided 
under the Office of Policy Development and Research and directs 
that funds available for the Section 4 program be used solely 
for capacity building activities.
    The Rural Capacity Building Program is intended for truly 
national organizations. For the purposes of the National Rural 
Capacity Building Notification of Funding Availability [NOFA], 
the Committee directs HUD to define an eligible national 
organization as a nonprofit entity that has ongoing experience 
in rural housing, including experience working with rural 
housing organizations, local governments, and Indian tribes, as 
evidenced by past and continuing work in one or more States in 
eight or more of HUD's Federal regions.
    Delays in Assistance for Veterans.--The Committee is 
extremely concerned that HUD has not yet published a NOFA for 
the Home Rehabilitation and Modification Pilot Program for 
Disabled or Low-Income Veterans. In the fiscal year 2015 
National Defense Authorization Act, Congress directed HUD to 
establish a program to award grants to nonprofit organizations 
to rehabilitate and modify the homes of veterans to, among 
other things, make them more accessible, including installing 
wheelchair ramps and accessible bathroom fixtures. Over the 
previous two fiscal years, the Committee has provided a total 
of $9,700,000 for this program, and HUD has not yet taken the 
needed actions to help some of the 3.9 million veterans in the 
United States with a service-connected disability or the nearly 
1.5 million veterans living in poverty. The Committee directs 
HUD to publish a NOFA for this program within 90 days of 
enactment of this act and to award funds provided for this 
program within 180 days of enactment of this act.

                       HOMELESS ASSISTANCE GRANTS

Appropriations, 2017....................................  $2,383,000,000
Budget estimate, 2018...................................   2,250,000,000
Committee recommendation................................   2,456,000,000

                          PROGRAM DESCRIPTION

    The Homeless Assistance Grants Program provides funding to 
break the cycle of homelessness and to move homeless persons 
and families to permanent housing. This is done by providing 
rental assistance, emergency shelter, transitional and 
permanent housing, prevention, rapid re-housing, and supportive 
services to homeless persons and families or those at risk of 
homelessness. The emergency solutions grant program is a 
formula grant program, while the Continuum of Care and Rural 
Housing Stability Programs are competitive grants. Homeless 
assistance grants provide Federal support to the Nation's most 
vulnerable populations. These grants assist localities in 
addressing the housing and service needs of a wide variety of 
homeless populations while developing coordinated Continuum of 
Care [CoC] systems that ensure the support necessary to help 
those who are homeless attain housing and move toward self-
sufficiency.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $2,456,000,000 
for Homeless Assistance Grants in fiscal year 2018. This amount 
is $206,000,000 above the President's request, and $73,000,000 
above the fiscal year 2017 enacted level.
    As part of the Committee recommendation, at least 
$2,099,000,000 will support the Continuum of Care Program, 
including the renewal of existing projects, and the Rural 
Housing Stability Assistance Program. Based on the renewal 
burden, HUD may also support planning and other activities 
authorized by the HEARTH Act. The recommendation also includes 
at least $270,000,000 for the emergency solutions grants 
program [ESG].
    The Committee continues to support HUD's efforts to 
leverage existing housing resources, such as Section 8 
vouchers, to serve people experiencing homelessness and 
supports replacing existing, underperforming projects with new 
projects.
    The Committee is aware that while most States witnessed a 
decrease in the number of people experiencing homelessness 
between 2015 and 2016, some States and the District of Columbia 
experienced a significant increase in homeless populations. It 
is the belief of the Committee that HUD should continue to 
support the implementation of comprehensive and proven 
approaches to serving people experiencing homelessness in order 
to allow CoCs to meet their goals of preventing and ending 
homelessness, which in certain cases may include not only 
permanent supportive housing and rapid rehousing, but 
transitional housing as well. Therefore, if funds remain 
available in this account after meeting renewal demands and 
funding ESG, HUD may use it for new projects, including 
transitional housing, provided that such projects are targeted 
to areas with the greatest need, as measured by data on 
homelessness.
    Addressing the Needs of Survivors of Domestic Violence and 
Sexual Assault.--Victims and survivors of domestic violence and 
assault, particularly women and children, often flee unsafe 
circumstances and seek refuge through emergency shelter or 
transitional housing programs in order to avoid homelessness. 
The Committee recognizes the nexus between experiences of 
domestic violence and homelessness, as well as how access to 
housing and services can serve as an effective bridge between a 
person leaving an abusive and dangerous environment and finding 
stable housing. While permanent housing serves as a stable 
platform for preventing and ending cycles of homelessness among 
survivors, and rapid rehousing has been shown to be an 
effective method for providing shorter term assistance, the 
Committee is also aware that in some communities well-designed 
transitional housing programs have also been effective in 
meeting the needs of this population. Although HUD does not 
penalize effective transitional housing projects that serve 
survivors of domestic violence through its CoC grant 
competition, the Committee is concerned that transitional 
housing and service providers, and CoCs lack the information 
necessary to make informed funding recommendations that reflect 
the needs of survivors at the local level. Therefore, the 
Committee directs the Department to issue clarifying guidance 
on how transitional housing can be an appropriate model, and an 
eligible and effective use of funding through the CoC grant 
competition. The Committee also directs the Department to 
coordinate with the Department of Justice's Office on Violence 
Against Women [OVW] on opportunities in communities where CoC 
program resources can be used with OVW's transitional housing 
grants to ensure that survivors of domestic and dating 
violence, sexual assault, and stalking have access to safe and 
affordable housing and services. The Committee encourages the 
Department to renew transitional housing projects for domestic 
violence survivors that have been shown to effectively address 
survivors' safety and client choice, and to continue funding 
CoC projects serving domestic violence survivors that allow 
program participants to obtain permanent housing through 
tenant-based rental assistance and supportive services. The 
Committee recommendation also includes $25,000,000 in 
competitive CoC grants for rapid re-housing projects and 
supportive service projects providing coordinated entry, and 
other critical activities in order to assist survivors of 
domestic violence, dating violence, and stalking. The Committee 
also includes language requiring that such projects be eligible 
for renewal under the continuum of care program, subject to the 
same terms and conditions as other renewal applicants. It is 
the expectation of the Committee that HUD will work with 
Continuums of Care to ensure that such projects do not supplant 
projects eligible for renewal as part of the 2018 continuum of 
care grant competition.
    To further understand how to best meet the needs of 
survivors of domestic violence, dating violence, sexual 
assault, or stalking, the Committee directs the Department to 
submit a report to the House and Senate Committees on 
Appropriations within 120 days of enactment of this act that 
identifies how homeless assistance grants can effectively meet 
the needs of this population. This report shall address how CoC 
and ESG resources directed to programs for survivors of 
domestic violence have been utilized and changed over the last 
three fiscal years, and include recommendations for how CoCs 
can be inclusive of and effectively collaborate with survivor 
housing and supportive service providers. Where appropriate, it 
should identify measurable criteria that CoCs can use to 
evaluate how well these programs serve survivors. The report 
shall also include recommendations on how coordinated entry 
systems can improve to ensure the safety and confidentiality of 
this population, without inhibiting a client's choice to secure 
housing and services.
    Data on Youth Homelessness.--The Committee believes an 
accurate count is critical to understanding the scale of youth 
homelessness. While the Annual Homelessness Assessment Report 
[AHAR] provides Congress and the public with meaningful 
information on the progress in ending homelessness, other 
Federal agencies have youth-specific data that can help 
communities better understand the scope of youth homelessness 
and housing instability in their area. The Committee continues 
to direct HUD to incorporate additional Federal data on youth 
homelessness into the AHAR.
    Comprehensive Interventions to Prevent and End Youth 
Homelessness.--The Committee recommendation includes 
$55,000,000 to continue implementation of comprehensive 
approaches to serving homeless youth, of which $5,000,000 shall 
be used to provide technical assistance to grantees.
    Guidance Update.--The Committee is concerned with the 
Department's recent decision to withdraw several resources for 
housing providers to help them comply with nondiscrimination 
protections for Lesbian, Gay, Bisexual and Transgender [LGBT] 
service recipients. The Department reversed its decision to 
publish a policy requiring HUD-funded emergency shelters to 
display a poster notifying LGBT residents of HUD's updated 
policies on discrimination, withdrew a survey to evaluate the 
LGBT Youth Homelessness Prevention Initiative from the Federal 
Register, and removed four guidance documents from its website. 
The Department has indicated that it is determining the 
effectiveness of these resources before reinstating them. The 
Committee notes that certain studies find 40 percent of 
homeless youth identify as LGBT, and transgender individuals 
experience homelessness at disproportionately high levels 
compared to the rest of the population. The Committee directs 
HUD to expedite its review of these resources and, as 
appropriate, reissue and make publically available all 
policies, surveys, and guidance within 180 days of enactment of 
this act.
    Clarifying Eligibility and Documentation Requirements for 
Homeless Youth.--The Committee remains concerned that service 
providers are turning homeless youth away due to a lack of 
clarity on HUD's existing eligibility and documentation 
requirements. While HUD has issued some guidance on how youth 
qualify for assistance under the current definition, service 
providers remain challenged with identifying and serving youth 
who are unaccompanied or head of household, faced with domestic 
violence, trafficking, or other unsafe circumstances--the most 
vulnerable and hard-to-reach homeless youth--due to lack of 
clarity in HUD's regulation and guidance. The Committee 
continues to hear from service providers that documentation 
requirements pose a barrier for individuals and families, 
especially youth, to access HUD programs and services. The 
Committee includes language that waives the requirement for 
youth 24 and under to provide third-party documentation to 
receive housing and supportive services within the Continuums 
of Care. The Committee strongly believes documentation 
requirements should not be a basis for denying access to 
necessary services. The Committee believes the Department 
shares the goal of effectively addressing youth homelessness 
and ensuring no youth eligible go unserved where there is the 
local capacity to house and/or provide services. Therefore, the 
Committee encourages the Department to continue to clarify 
program requirements through guidance, notice and webcasts as 
appropriate.
    Performance Partnership Pilot.--The Committee has continued 
language permitting HUD to partner with other Federal agencies 
in the Performance Partnership Pilot program, a cross-Federal 
agency initiative serving disconnected youth through 
innovative, cost-effective, and outcome-focused strategies. The 
Committee believes there is a critical role HUD can play in 
this pilot, especially as communities seek to address the 
housing and self-sufficiency needs of disconnected youth.
    Annual Homeless Assessment Report [AHAR].--AHAR is the 
result of Congressional directives, beginning in 2001, that 
directed the Department to collect data on homelessness using 
the newly implemented Homeless Management Information System 
[HMIS]. HMIS data, information provided by Continuums of Care, 
and a point-in-time count of sheltered and unsheltered persons 
from one night in January of each year informs AHAR. The 
Committee is encouraged that HUD is sharing homeless data 
widely, and that Federal, State and local service providers use 
AHAR to determine needs and develop strategies to address 
homelessness.
    The Committee believes HMIS can be used as a platform for 
information gathering in other Federal programs. Streamlining 
data to reflect the various Federal data sources will allow the 
Federal Government to better understand the scope and needs of 
homeless populations, to then inform a strategic alignment of 
Federal services. The Committee directs HUD to incorporate 
additional Federal data on homelessness into the AHAR. This 
information is important to ensure that communities develop and 
implement policies that respond to local needs. To support 
continued data collection and AHAR, the Committee has included 
$7,000,000 to support AHAR data collection and analysis. The 
Department shall submit the AHAR report to the House and Senate 
Committees on Appropriations by August 29, 2018. The Committee 
further hopes that HUD's efforts to increase participation in 
the HMIS effort will lead to improved information about and 
understanding of the Nation's homeless.
    Renewal Costs.--The Committee directs HUD to continue to 
include 5-year projections of the costs of renewing existing 
projects as part of the fiscal year 2019 budget justification. 
This should include estimated costs of renewing permanent 
supportive housing.

                            Housing Programs


                    RENTAL ASSISTANCE DEMONSTRATION

Appropriations, 2017....................................................
Budget estimate, 2018...................................................
Committee recommendation................................      $4,000,000

                          PROGRAM DESCRIPTION

    The Rental Assistance Demonstration [RAD] was authorized in 
fiscal year 2012 to preserve public and other multifamily 
housing. Under existing authorities, PHAs and other owners of 
rental properties assisted under the Public Housing, Moderate 
Rehabilitation [Mod Rehab], Moderate Rehabilitation Single-Room 
Occupancy [Mod Rehab SRO], Rent Supplement [Rent Supp] and 
Rental Assistance Payment [RAP] programs are offered the option 
to convert their properties to Section 8 contracts.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation includes provisions permitting 
Section 202 PRAC properties to convert to Section 8 contracts. 
The current contracts are limited to 1 year and impede 
successfully addressing capital needs for these properties. 
Conversion to multi-year Section 8 contracts will enable 
properties to leverage private financing for capital 
improvements, enabling these properties to remain a source of 
critical affordable housing for low-income elderly residents. 
The Committee recommendation also includes $4,000,000 for the 
Rental Assistance Demonstration, which is $4,000,000 more than 
the fiscal year 2017 enacted level and $4,000,000 more than the 
budget request. This funding is limited to providing additional 
rental subsidy for Section 202 PRAC properties converting to 
Section 8 contracts that will not be able to successfully 
convert at the current subsidy amounts.
    The Committee recommendation also eliminates the unit cap 
for public housing conversions, as well as the related deadline 
for public housing application submissions. In fiscal year 
2017, Congress increased the cap by 40,000 units. This increase 
went into effect in May of 2017 and by June, the Department had 
a waitlist of over 11,000 units above the new cap. The unit cap 
makes it difficult for agencies to effectively plan and 
prioritize their capital activities, and determine if 
participation is appropriate for their housing portfolios. By 
eliminating the cap, the Committee intends to eliminate the 
planning uncertainty PHAs experience related to an incremental 
cap adjustment.
    The Committee recommendation also includes the following 
changes to facilitate additional conversions of HUD-assisted 
properties: promotes the preservation of multifamily properties 
in high-cost areas; standardizes ownership and control 
requirements for converted Public Housing properties in 
situations where low-income housing tax credits are used or 
where foreclosure, bankruptcy, or default occurs; and protects 
tenants' right to continue occupancy under second component 
conversions.

                    PROJECT-BASED RENTAL ASSISTANCE

Appropriations, 2017.................................... $10,816,000,000
Budget estimate, 2018...................................  10,751,100,000
Committee recommendation................................  11,507,000,000

                          PROGRAM DESCRIPTION

    Section 8 Project-Based Rental Assistance provides a rental 
subsidy to a private landlord that is tied to a specific 
housing unit, as opposed to a voucher, which allows a recipient 
to seek a unit, subject primarily to certain rent caps. Amounts 
in this account include funding for the renewal of and 
amendments to expiring Section 8 project-based contracts, 
including Section 8, moderate rehabilitation, and single room 
occupancy [SRO] housing. This account also provides funds for 
contract administrators.

                        COMMITTEE RECOMMENDATION

    The Section 8 Project-Based Rental Assistance [PBRA] 
program supports an estimated 17,400 contracts with private 
owners of multifamily housing. Through this program, HUD and 
private sector partners support the preservation of safe, 
stable and sanitary housing for more than 1.2 million low-
income households. Without PBRA, many affordable housing 
projects would convert to market rates with large rent 
increases that current tenants would be unable to afford.
    The Committee recommends a total appropriation of 
$11,507,000,000 for the annual renewal of project-based 
contracts, of which up to $285,000,000 is for the cost of 
contract administrators. The recommended level of funding is 
$691,000,000 above the amount provided in fiscal year 2017 and 
is $755,900,000 above the budget request. The Committee's 
recommendation rejects the administration's rental reform 
proposals, including raising maximum rents to 35 percent of 
gross income, the establishment of mandatory minimum rents, and 
the elimination of utility allowance reimbursements. It is 
unfortunate that the Department is seeking to achieve much of 
its cost-savings on the backs its tenant population, a 
significant portion of which is elderly or disabled. The 
Committee believes that these types of rent reforms are best 
addressed by the authorizing committees. The decision not to 
include these controversial rent reforms that have not been 
subject to authorizing committee vetting and approval results 
in a renewal need above the President's request. The funding 
recommendation provides sufficient resources to fully renew all 
existing affordable housing contracts.
    Performance-Based Contract Administrators.--Performance-
based contract administrators [PBCAs] are typically PHAs or 
State housing finance agencies. They are responsible for 
conducting on-site management reviews of assisted properties; 
adjusting contract rents; and reviewing, processing, and paying 
monthly vouchers submitted by owners, among other tasks. The 
Committee notes that PBCAs are integral to the Department's 
efforts to be more effective and efficient in the oversight and 
monitoring of this program, reduce improper payments, protect 
tenants and ensure properties are well maintained. The 
Committee in prior years directed the Department to solicit and 
award PBCA contracts under full and open competition without 
geographic limitation in accordance with the Competition in 
Contracting Act and the Federal Acquisition Regulations. The 
Committee is concerned that proposals to reduce the scope of 
work performed by PBCAs, diminish the applicability of Federal 
law, or consolidate PBCAs into regional awards versus State-by-
State will have a detrimental effect on the oversight of these 
HUD-assisted properties and the individuals and families that 
rely on this critical source of affordable housing. To date HUD 
has failed to execute this directive. It is imperative that HUD 
move forward with this solicitation. The Committee believes 
that fair and open competition is the best way to ensure that 
the taxpayer receives the greatest benefit for the costs 
incurred.
    Oversight of Property Owners.--The Committee places a 
priority on providing access to safe, sanitary, and affordable 
housing to those most in need. If owners fail to uphold these 
standards, HUD should hold them accountable. After learning of 
several properties around the country that suffered from severe 
physical deficiencies, but were none-the-less able to pass HUD 
inspection, the Committee strengthened a general provision 
requiring the Department to take specific steps to ensure that 
serious defects are quickly addressed. This provision requires 
the Secretary to take explicit actions if an owner fails to 
maintain its property, including imposing civil monetary 
penalties, working to secure a different owner for the 
property, or transferring the Section 8 contract to another 
property. In addition to the requirements under this general 
provision, the Department took several steps to improve its 
inspections process, including: closing a loophole that allowed 
condemned units to be excluded from inspection samples; 
permitting REAC to require owners to make repairs for 
individual deficiencies even when an overall property receives 
a passing score; requiring owners to adopt industry standards 
when making repairs; and training REAC inspectors to recognize 
industry standards when evaluating whether deficiencies have 
been corrected. In addition, HUD is considering regulatory and 
policy changes that would reduce the time it takes to conduct 
an inspection after a property owner is notified about a 
failing score and removing the point deductions cap, which 
limits how much a property's score can be lowered for multiple 
instances of the same deficiency type. The Committee commends 
HUD for the steps it has taken to improve responsiveness and 
accountability and encourages the Department to implement the 
measures still under consideration described above. It also 
urges HUD to consider using PBCAs to identify troubled 
properties early on. Unfortunately, despite enacted changes, 
the Department's oversight still permits a property cited for 
multiple code violations by State and local building 
departments to receive a passing REAC score. While local code 
violations are factored into the risk assessments that 
determine which properties are inspected, State and local 
citations for building code violations do not consistently 
trigger an immediate response from the Department, which may 
explain why HUD has been inexcusably caught off guard by media 
reports of atrocious conditions that have been allowed to 
persist within its multifamily portfolio. The Committee directs 
the Department to establish a plan for responding to State and 
local building inspector findings so that properties with 
serious outstanding code violations are targeted by REAC and, 
if conditions leading to those violations are not addressed, 
those properties do not receive a passing score from HUD.
    Unfortunately, the Department has been less than 
transparent with the Committee about the extent of the problems 
within its assisted housing portfolio, failing year after year 
to comply with the Committee's requirement to provide regular 
reports on its most troubled properties. HUD's refusal to 
provide this information makes it extremely difficult to assess 
the Department's performance and to evaluate whether changes 
and reforms such as those described above are effective. Once 
again, the Committee requires the Department to provide 
quarterly reports to the House and Senate Committees on 
Appropriations on projects that receive multiple exigent health 
and safety violations, physical inspection scores below 60, or 
have received an unsatisfactory management and occupancy review 
within the past 36 months. Such reports shall also include 
information on when the next inspection of the property will 
occur, and the Department's plans for resolution of the 
deficiencies. HUD shall also identify the actions taken to 
address safety concerns, including the frequency with which 
civil monetary penalties are imposed, contracts are transferred 
to another property, or ownership is transferred. In addition, 
because the Department has consistently failed to respond to 
this reporting requirement in the past, the Committee has added 
language to the general provision addressing troubled 
properties that reduces the appropriations for the Offices of 
Housing, Executive Offices and CFO each $50,000 for every day 
this report is late. The penalty shall apply to each of the 
quarterly reports due this fiscal year.

                        HOUSING FOR THE ELDERLY

Appropriations, 2017....................................    $502,400,000
Budget estimate, 2018...................................     510,000,000
Committee recommendation................................     573,000,000

                          PROGRAM DESCRIPTION

    This account funds housing for the elderly under section 
202 of the Housing Act of 1959. Under this program, the 
Department provides capital grants to eligible entities for the 
acquisition, rehabilitation, or construction of housing for 
seniors, and provides project-based rental assistance contracts 
[PRACs] to support operational costs for such units. Tenants 
living in section 202 supportive housing units can access a 
variety of community-based services in order to keep living 
independently in their communities and age in place.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $573,000,000 
for the Section 202 program. This amount is $70,600,000 more 
than the level provided in fiscal year 2017 and $63,000,000 
more than the budget request. The Committee recommendation 
includes $483,000,000 in new appropriations, in addition to 
carryover balances and residual receipts, to fully fund all 
annual PRAC renewals and amendments, and $90,000,000 for 
service coordinators and the continuation of existing 
congregate service grants.

                 HOUSING FOR PERSONS WITH DISABILITIES

Appropriations, 2017....................................    $146,200,000
Budget estimate, 2018...................................     121,300,000
Committee recommendation................................     147,000,000

                          PROGRAM DESCRIPTION

    This account provides funding for housing for persons with 
disabilities under section 811 of the Cranston-Gonzales 
National Affordable Housing Act of 1990. Traditionally, the 
Section 811 program provided capital grants to eligible 
entities for the acquisition, rehabilitation, or construction 
of housing for persons with disabilities, as well as project-
based rental assistance contracts [PRACs] to support 
operational costs for such units. Since fiscal year 2012, HUD 
has transitioned to expanding capacity by providing project 
rental assistance to State housing financing agencies or other 
appropriate entities which act in partnership with State health 
and human service agencies to provide supportive services, as 
authorized by the Frank Melville Supportive Housing Investment 
Act of 2010 (Public Law 111-374).

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $147,000,000 
for the Section 811 program. This level is $25,700,000 more 
than the budget request and is $800,000 more than the fiscal 
year 2017 enacted level. This level of funding, in addition to 
residual receipts, recaptures, and other unobligated balances, 
supports all PRAC renewals and amendments. Should the total 
available resources exceed the need for renewals, the Secretary 
shall direct such resources to make new awards or to conduct a 
new competition for project rental assistance to State housing 
finance agencies.

                     HOUSING COUNSELING ASSISTANCE

Appropriations, 2017....................................     $55,000,000
Budget estimate, 2018...................................      47,000,000
Committee recommendation................................      47,000,000

                          PROGRAM DESCRIPTION

    The Housing Counseling Assistance Program provides 
comprehensive housing counseling services to eligible 
homeowners and tenants through grants to non-profit 
intermediaries, State government entities, and other local and 
national agencies. Eligible counseling activities include: pre- 
and post-purchase education, personal financial management, 
reverse mortgage product education, foreclosure prevention, 
mitigation, and rental counseling.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $47,000,000 
for the Housing Counseling Assistance program, which is equal 
to the budget request and $8,000,000 less than the fiscal year 
2017 enacted level. These funds will help to provide 
individuals and families across the country with sound advice 
to make more informed housing decisions, improve their 
financial situation, and meet their homeownership goals over 
time. Specifically, it will support competitive counseling 
grants and training activities. The network of HUD-approved 
housing counseling organizations provides a wide variety of 
counseling services, including assistance with preventing 
foreclosure and homelessness. In addition, the administrative 
contract support funding includes resources for financial 
audits and technical assistance.
    The Committee is pleased with HUD's early insights from its 
First-Time Homebuyer Education and Counseling Demonstration. 
The knowledge and skills that consumers gain from this 
counseling will play an essential role in the continued 
recovery of the Nation from the foreclosure crisis. That 
ongoing recovery has been shown in the increase in demand for 
pre-purchase homeownership counseling and lower need for 
delinquency prevention counseling.
    The Committee continues language requiring HUD to obligate 
counseling grants within 180 days of enactment of this act, as 
well as permitting HUD to publish multi-year NOFAs, contingent 
on annual appropriations. This should result in administrative 
savings for HUD and its grantees.

                       RENTAL HOUSING ASSISTANCE

Appropriations, 2017....................................     $20,000,000
Budget estimate, 2018...................................      14,000,000
Committee recommendation................................      14,000,000

                          PROGRAM DESCRIPTION

    This account provides amendment funding for housing 
assisted under the Rental Housing Assistance Program (Section 
236) and the Rent Supplement Program.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $14,000,000 
for HUD-assisted, State-aided, noninsured rental housing 
projects, consistent with the budget request. This amount is 
$6,000,000 less than the fiscal year 2017 enacted level. The 
Committee recommendation includes a provision to allow the 
conversion of these projects to long-term Section 8 contracts, 
at no additional cost. The Committee hopes that the conversion 
of these projects, through the Rental Assistance Demonstration, 
will lead to the eventual elimination of these outdated 
programs.

            PAYMENT TO MANUFACTURED HOUSING FEES TRUST FUND

Appropriations, 2017....................................     $10,500,000
Budget estimate, 2018...................................      11,000,000
Committee recommendation................................      11,000,000

                          PROGRAM DESCRIPTION

    The National Manufactured Housing Construction and Safety 
Standards Act of 1974, as amended by the Manufactured Housing 
Improvement Act of 2000, authorizes the Secretary to establish 
Federal manufactured home construction and safety standards for 
the construction, design, and performance of manufactured 
homes. All manufactured homes are required to meet these 
Federal standards, and fees are charged to producers to cover 
the costs of administering the act.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $11,000,000 to support the 
manufactured housing standards programs, of which the full 
amount of $11,000,000 is expected to be derived from fees 
collected and deposited in the Manufactured Housing Fees Trust 
Fund account. No direct appropriation is provided. The total 
amount recommended is equal to the budget request and $500,000 
more than the fiscal year 2017 enacted level. This increase in 
funding reflects a significant growth in manufactured housing 
production and is necessary for the continued oversight and 
effective administration of this program.
    The Committee recommendation provides: not less than 
$4,000,000 for payments to State Administrative Agency 
partners, and not less than $4,000,000 for the monitoring of 
manufacturers' compliance with the construction and safety 
standards by third-party inspection agencies.
    The Committee continues language allowing the Department to 
collect fees from program participants in the dispute 
resolution and installment programs, as mandated by the 
Manufactured Housing Improvement Act of 2000. These fees are to 
be deposited into the Trust Fund and may be used to support the 
manufactured housing standards programs, subject to the overall 
cap placed on the account.
    Recreational Vehicle Definition.--The Committee urges HUD 
to expeditiously complete its rulemaking process concerning 
amendments to its regulatory definition of a ``Recreational 
Vehicle,'' in accordance with the existing December 2014 
recommendation of the Manufactured Housing Consensus Committee.
    Resident-Owned Cooperative Models.--Two-thirds of the new 
affordable housing produced in the United States is 
manufactured housing. This industry serves as an important tool 
in combatting rising home prices and the growing housing 
shortage. More than 2.9 million manufactured homes are located 
in mobile home parks, where residents own their homes, but 
often do not own the land. This leaves homeowners vulnerable to 
land cost increases, arbitrary rule enforcement, and land 
conversion for some other use. It can also result in the 
eviction or closure of a community, which is very disruptive 
and can result in thousands of dollars in relocation costs. The 
resident-owned cooperative model provides a viable means for 
preserving this crucial source of affordable housing and 
protecting vulnerable residents from displacement. The 
Committee notes the recent growth of this cooperative model, 
and encourages the further expansion of this model nationally 
as manufactured housing production continues to rise.

                     Federal Housing Administration


               MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT

----------------------------------------------------------------------------------------------------------------
                                                           Limitation on      Limitation on      Administrative
                                                            direct loans     guaranteed loans  contract expenses
----------------------------------------------------------------------------------------------------------------
Appropriations, 2017...................................         $5,000,000   $400,000,000,000       $130,000,000
Budget estimate, 2018..................................          5,000,000    400,000,000,000        160,000,000
Committee recommendation...............................          5,000,000    400,000,000,000        130,000,000
----------------------------------------------------------------------------------------------------------------

                GENERAL AND SPECIAL RISK PROGRAM ACCOUNT

------------------------------------------------------------------------
                                        Limitation on     Limitation on
                                        direct loans    guaranteed loans
------------------------------------------------------------------------
Appropriations, 2017................        $5,000,000   $30,000,000,000
Budget estimate, 2018...............         5,000,000    30,000,000,000
Committee recommendation............         5,000,000    30,000,000,000
------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The Federal Housing Administration [FHA] fund covers the 
mortgage and loan insurance activity of HUD mortgage/loan 
insurance programs. These include the mutual mortgage insurance 
[MMI] fund, cooperative management housing insurance [CMHI] 
fund, general insurance [GI] fund, and the special risk 
insurance [SRI] fund. For presentation and accounting control 
purposes, these are divided into two sets of accounts based on 
shared characteristics. The unsubsidized insurance programs of 
the mutual mortgage insurance fund and the cooperative 
management housing insurance fund constitute one set; and the 
general risk insurance and special risk insurance funds make up 
the other.

                        COMMITTEE RECOMMENDATION

    The Committee has included the following amounts for the 
Mutual Mortgage Insurance Program account: a limitation on 
guaranteed loans of $400,000,000,000, a limitation on direct 
loans of $5,000,000, and $130,000,000 for administrative 
contract expenses. For the GI/SRI account, the Committee 
recommends $30,000,000,000 as a limitation on guaranteed loans 
and a limitation on direct loans of $5,000,000.
    The Committee includes a general provision in the bill 
lifting the cap on the number of HECM loans that can be insured 
during fiscal year 2018, only to the extent that the net credit 
subsidy cost for such insurance does not exceed zero. The 
Committee directs the Department to take steps to accelerate 
the property disposition timelines and reduce the costs 
associated with the disposition of such properties. Such action 
should ensure there is no disruption in the insuring of 
mortgages under this section and ensure the mission of the 
program continues to meet its goals.
    The Office of Inspector General published an audit report 
on October 14, 2016 indicating that FHA overpaid financial 
institutions, by as much as $2,230,000,000, due to improperly 
recording foreclosure and conveyance deadlines. While the 
Department disputed how much FHA might have actually overpaid, 
it agreed in general with the findings. The Committee directs 
the Department to submit within 30 days of enactment of this 
act, a report identifying the Department's timeline for: 
completing the rulemaking changes to 24 CFR Part 203 initiated 
in 2015; development of a strategic technology plan to 
systematically ensure insurance claims are not overpaid for 
reasons of paying costs beyond established deadlines; and 
implementing better controls to identify noncompliance with 24 
CFR 203.
    The Committee does not include authority for HUD to charge 
a fee to provide additional funds for FHA's administrative 
costs as proposed in the budget request. However, the Committee 
supports the goal of improving FHA's system automation, risk 
management and quality control efforts and encourages the 
Department to work with its various stakeholders to determine a 
sustainable path forward that recognizes the needs of all 
parties.

                Government National Mortgage Association


GUARANTEES OF MORTGAGE-BACKED SECURITIES LOAN GUARANTEE PROGRAM ACCOUNT

------------------------------------------------------------------------
                                                         Limitation on
                                                           personnel,
                                      Limitation on     compensation and
                                     guaranteed loans    administrative
                                                            expenses
------------------------------------------------------------------------
Appropriations, 2017..............   $500,000,000,000        $23,000,000
Budget estimate, 2018.............    500,000,000,000         25,400,000
Committee recommendation..........    500,000,000,000         24,000,000
------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The Government National Mortgage Association [Ginnie Mae], 
through the mortgage-backed securities program, guarantees 
privately issued securities backed by pools of Government-
guaranteed mortgages. Ginnie Mae is a wholly owned corporate 
instrumentality of the United States within the Department. Its 
powers are prescribed generally by title III of the National 
Housing Act, as amended. Ginnie Mae is authorized by section 
306(g) of the act to guarantee the timely payment of principal 
and interest on securities that are based on and backed by a 
trust, or pool, composed of mortgages that are guaranteed and 
insured by the FHA, the Rural Housing Service, or the 
Department of Veterans Affairs. Ginnie Mae's guarantee of 
mortgage-backed securities is backed by the full faith and 
credit of the United States. This account also funds all 
salaries and benefits funding to support Ginnie Mae.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation on new commitments on 
mortgage-backed securities of $500,000,000,000. This level is 
the same as the budget request and the fiscal year 2017 enacted 
level. The bill allows Ginnie Mae to use $24,000,000 for 
salaries and expenses. This is $1,000,000 more than the fiscal 
year 2017 enacted level and $1,400,000 less than the budget 
request.

                    Policy Development and Research


                        RESEARCH AND TECHNOLOGY

Appropriations, 2017....................................     $89,000,000
Budget estimate, 2018...................................      85,000,000
Committee recommendation................................      85,000,000

                          PROGRAM DESCRIPTION

    Title V of the Housing and Urban Development Act of 1970, 
as amended, directs the Secretary of the Department of Housing 
and Urban Development to undertake programs of research, 
evaluation, and reports relating to the Department's mission 
and programs. These functions are carried out internally and 
through grants and contracts with industry, nonprofit research 
organizations, educational institutions, and through agreements 
with State and local governments and other Federal agencies. 
The research programs seek ways to improve the efficiency, 
effectiveness, and equity of HUD programs and to identify 
methods to achieve cost reductions. Additionally, this 
appropriation is used to support HUD evaluation and monitoring 
activities and to conduct housing surveys.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $85,000,000 
for research, technology, and community development activities 
in fiscal year 2018. This level is $4,000,000 less than the 
fiscal year 2017 enacted level and equal to the budget request. 
The Committee recommends $50,000,000 for Core Research and 
Technology, including: market surveys; research support and 
dissemination; data acquisition; housing finance studies; 
research partnerships; and housing technology. In addition, the 
Committee includes $35,000,000 for Department-wide technical 
assistance and critical research beyond the core studies. Of 
this amount, at least $25,000,000 is for technical assistance 
[TA] across HUD programs. The Committee recommendation will 
continue to support market surveys, such as the American 
Housing Survey, that are integral to HUD's ability to 
understand its own programs and also help enhance public and 
private entities' knowledge of housing conditions in the United 
States. The Committee encourages the Department to consider 
providing technical assistance to distressed cities and 
communities through a network of non-profit or private sector 
organizations that have a proven track record of providing 
assistance to multiple cities across various disciplines 
including economic development, workforce development, fiscal 
efficiency, and promoting best practices and inter- city 
assistance.
    Of the amount provided for critical research beyond the 
core studies, the recommendation includes funding for: an 
evaluation of how PHAs are implementing and using the RAD 
Choice Mobility option and how implementation varies between 
PBV and PBRA conversions; the final phase of a Choice 
Neighborhood implementation study; an evaluation of HUD's 
demonstration authority linking vouchers for homeless youth 
through the Family Unification Program with the Family Self-
Sufficiency program; an analysis of administrative data to 
compare school readiness and skill development for HUD-assisted 
children relative to similar unassisted children; and an 
evaluation of the effectiveness of resiliency funding as part 
of HUD's response to natural disasters. HUD shall include 
details on its allocation of these resources in its operating 
plan.
    Fair Market Rents [FMRs].--Fair Market Rents are used 
across HUD rental assistance programs. However, in certain 
counties the current methodology does not accurately reflect 
the current housing market, and additional local area surveys 
are necessary. The Committee further notes that proposals such 
as Small Area Fair Market Rents do not fully address the 
undervaluing of Fair Market Rents in many areas where rents 
have risen quickly. The Committee encourages HUD to identify 
and implement alternatives to locally funded rent surveys of 
areas affected by changing economic conditions and natural 
disasters. The Committee strongly encourages HUD to expedite 
its research on improving its FMR estimates, including the 
potential use of alternative data sources, advertised for rent 
data, as a means of to improve estimates of rent inflation that 
occur between the time of the American Community Survey data 
collection and the current period for FMR estimates. If these 
data cannot be applied nationally, this research should also 
determine what alternative data sources HUD would accept from 
Public Housing Agencies [PHAs] to demonstrate changing economic 
conditions as an alternative to locally funded rent surveys. 
The Committee encourages the Department, to the extent 
practicable, to work with communities to use local rent survey 
data made available in the preceding year to inform the 
calculation of Fair Market Rents. The Committee directs the 
Department to submit a report to the House and Senate 
Committees on Appropriations within 90 days of enactment of 
this act describing proposals to update the FMR formula to more 
accurately reflect the current housing market. The Committee 
strongly encourages HUD to expedite the process for 
consideration of FMRs and exception payment standards that are 
requested from PHAs.

                   Fair Housing and Equal Opportunity


                        FAIR HOUSING ACTIVITIES

Appropriations, 2017....................................     $65,300,000
Budget estimate, 2018...................................      65,300,000
Committee recommendation................................      65,300,000

                          PROGRAM DESCRIPTION

    The fair housing activities appropriation includes funding 
for both the Fair Housing Assistance Program [FHAP] and the 
Fair Housing Initiatives Program [FHIP].
    The Fair Housing Assistance Program helps State and local 
agencies to implement title VIII of the Civil Rights Act of 
1968, as amended, which prohibits discrimination in the sale, 
rental, and financing of housing and in the provision of 
brokerage services. The major objective of the program is to 
assure prompt and effective processing of title VIII complaints 
with appropriate remedies for complaints by State and local 
fair housing agencies.
    The Fair Housing Initiatives Program is authorized by 
section 561 of the Housing and Community Development Act of 
1987, as amended, and by section 905 of the Housing and 
Community Development Act of 1992. This initiative is designed 
to alleviate housing discrimination by increasing support to 
public and private organizations for the purpose of eliminating 
or preventing discrimination in housing, and to enhance fair 
housing opportunities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $65,300,000 
for the Office of Fair Housing and Equal Opportunity [OFHEO]. 
This amount is equal to the budget request and the 2017 enacted 
level. Of the amounts provided, $23,500,000 is for FHAP, 
$39,900,000 is for FHIP, and $300,000 is for the creation, 
promotion, and dissemination of translated materials that 
support the assistance of persons with limited English 
proficiency. The Committee also provides $1,600,000 for the 
National Fair Housing Training Academy, and encourages the 
Department to pursue ways to make the Academy self-sustaining.
    Affirmatively Furthering Fair Housing [AFFH].--In 2018, HUD 
anticipates that a substantially higher number of grantees will 
submit fair housing assessments under the new AFFH rule, as 
compared to 2017. The Committee continues to support the 
implementation of AFFH, but remains concerned that HUD grantees 
interpret this new rule as a way for the Department to dictate 
local zoning laws. As a result, the Committee continues to 
include language prohibiting the Department from undertaking 
changes to local zoning laws as part of carrying out AFFH and 
the assessment tool. The Committee strongly encourages HUD to 
continue providing technical assistance to grantees for 
compliance and implementation efforts associated with this rule 
and expects greater collaboration within HUD and across its 
program offices, to prevent excessive administrative burdens on 
grantees. The Committee directs the Department to issue 
clarifying guidance within 60 days of enactment of this act on 
how grantees can also eliminate excessive burdens at the local 
level, in order to meet the requirements of AFFH. The Committee 
further directs HUD to expeditiously issue the tools and 
templates for communities that choose to conduct a regional 
analysis, and continue developing streamlined tools for small 
entitlement CDBG and PHA grantees.
    Regulation of Insurance.--In Senate Report 114-243 the 
Committee propelled HUD to respond expeditiously to a U.S. 
District Court's remand which was a result of HUD failing to 
adequately consider insurance industry concerns in its 
discriminatory effects rule. On October 5, 2017, HUD issued its 
response in the Federal Register stating that categorical 
exemptions or safe harbors for insurance practices are 
unworkable and inconsistent with the Fair Housing Act, and that 
the insurance industry's concerns should be addressed on a 
case-by-case basis. The Committee remains concerned about the 
unintended consequences of HUD's interpretation and urges the 
Department to address the concerns of the insurance industry as 
permissible under current law.

            Office of Lead Hazard Control and Healthy Homes

Appropriations, 2017....................................    $145,000,000
Budget estimate, 2018...................................     130,000,000
Committee recommendation................................     160,000,000

                          PROGRAM DESCRIPTION

    Title X of the Housing and Community Development Act of 
1992 established the Residential Lead-Based Paint Hazard 
Reduction Act, under which HUD is authorized to make grants to 
States, localities, and Native American tribes in order to 
conduct lead-based paint hazard reduction and abatement 
activities in private, low-income housing. Lead poisoning is a 
significant environmental health hazard, particularly for young 
children and pregnant women, and can result in neurological 
damage, learning disabilities, and impaired growth. The Healthy 
Homes Initiative, authorized under sections 501 and 502 of the 
Housing and Urban Development Act of 1970 (12 U.S.C. 1701z-1 
and 1701z-2), provides grants to remediate housing hazards that 
have been scientifically shown to negatively impact occupant 
health and safety.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $160,000,000 
for lead-based paint hazard reduction and abatement activities 
for fiscal year 2018. This amount is $30,000,000 above the 
President's budget request and $15,000,000 above the fiscal 
year 2017 enacted level. Of the amount provided, $30,000,000 is 
for the Healthy Homes Initiative.
    Consolidation of Lead Grant Programs.--Lead poisoning 
disproportionately affects the lives of children from 
economically-disadvantaged backgrounds and has lifelong 
consequences that have been shown to severely inhibit healthy 
development and compromise learning. Children who are exposed 
to lead hazards are seven times more likely to drop out of 
school and six times more likely to end up in the juvenile 
justice system. Exposure to lead-based paint hazards at a young 
age poses not only serious immediate health consequences, but 
may permanently jeopardize potential for upward social mobility 
throughout adulthood. In an effort to ensure that more 
communities can access funding to address lead-based paint 
hazards in their low-income housing, the Committee has 
consolidated HUD's two lead hazard funding programs into a 
single grant program. This change will assist communities 
struggling to meet funding match requirements, remove 
duplicative application requirements for communities seeking to 
access funding from multiple grant programs, and simplify the 
award and administration of HUD's lead hazard control grants. 
This consolidation will establish a single source of funding 
for lead hazard grants with a single set of application 
criteria, which will ease the administrative burden both for 
applicants and the Department.
    The Committee remains committed to protecting those 
children in communities with the highest rates of childhood 
lead poisoning and the oldest housing stock. Lead-based paint 
is far more prevalent in older homes and in low-income housing 
in particular, where maintenance is less robust and paint 
surfaces are more likely to deteriorate, leading to a 
heightened risk of exposure from peeling paint. In order to 
target funding to those communities, the Committee directs HUD 
to award no less than $65,000,000 of grants to remediate lead-
based paint hazards in low-income housing to those 
jurisdictions with the highest lead-based paint abatement 
needs. The Committee notes that this set-aside is a minimum 
floor and encourages HUD to exceed this threshold when 
providing assistance to those communities where there is the 
highest risk. The overall funding level will support lead-based 
paint hazard reductions in up to 9,100 units, providing safer 
homes for nearly 32,300 low and very-low income families or 
individuals, including over 8,400 children under the age of 6.
    Grantee Coordination.--Funds received by States and local 
governments under the Lead-Based Paint Hazard Control Grant 
Program may be utilized to evaluate and address lead-based 
paint hazards in Section 8 voucher units. The Office of Lead 
Hazard Control and Healthy Homes currently gives preference to 
grantees that work with public housing agencies to address 
lead-based paint hazards in Section 8 voucher units. The 
Committee commends HUD for emphasizing the need to address 
lead-based paint hazards in Section 8 voucher units when 
awarding these grants and urges HUD to continue to address 
these needs in HUD-assisted housing stock in the private 
market.

                      Information Technology Fund

Appropriations, 2017....................................    $257,000,000
Budget estimate, 2018...................................     250,000,000
Committee recommendation................................     250,000,000

                          PROGRAM DESCRIPTION

    The Information Technology Fund finances the information 
technology [IT] systems that support departmental programs and 
operations, including FHA Mortgage Insurance, housing 
assistance and grant programs, as well as core financial and 
general operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $250,000,000 
for the Information Technology Fund for fiscal year 2018, which 
is equal to the budget request and $7,000,000 less than the 
fiscal year 2017 enacted level.
    The Committee remains supportive of HUD's efforts to 
modernize its IT systems, which are critical to effectively 
manage its programs. For years, HUD has been hampered by 
outdated IT systems that are not integrated, which limit its 
ability to oversee grantees. In addition, HUD's efforts to work 
around system limitations to collect information for oversight 
purposes often results in increased work for grantees who have 
to input information into multiple systems. While HUD has 
undertaken efforts to better integrate systems, there is still 
more work to be done, and IT system integration should remain a 
top priority for the Department.
    Unsanctioned Information Technology Development.--The 
Committee remains concerned about the development of IT systems 
out- side of the Information Technology Fund. While the 
Committee understands that limited resources may prompt HUD 
offices to develop solutions with their own resources, the 
Committee expects that, at a minimum, OCIO will monitor and 
oversee the development of any such solutions. The Committee 
directs the OCIO to monitor the development of new system 
solutions by every office in HUD to make sure they conform to 
HUD's enterprise architecture, and will be compatible with 
systems under development.
    GAO Oversight.--The Committee emphasizes the importance of 
pursuing a strategic approach as HUD continues to improve its 
IT management. To this end, in order to monitor the 
Department's progress, in 2012 the Committee instructed GAO to 
conduct several reviews. In 2013, GAO completed a review of the 
Department's IT project management practices. The Committee 
reaffirms its direction to GAO to also evaluate HUD's 
institutionalization of governance and cost estimating 
practices. In particular, the Committee remains interested in 
any cost savings or operational efficiencies that have resulted 
(or may result) from the Department's improvement efforts. The 
Committee appreciates the work that GAO has done in this area 
and believes it has benefited the Committee and the Department. 
The Committee encourages HUD to take advantage of GAO expertise 
as it makes further improvements to its IT structure and 
governance. The Committee notes that the Department has yet to 
submit plans articulating how the Department is implementing 
GAO's IT-related recommendations, and identifying savings it 
will achieve by retiring legacy systems and shutting off old 
servers. The Committee directs the Chief Operating Officer and 
the Chief Information Officer to ensure reports are submitted 
in a timely manner and include all required information.

                      Office of Inspector General

Appropriations, 2017....................................    $128,082,000
Budget estimate, 2018...................................     126,000,000
Committee recommendation................................     126,000,000

                          PROGRAM DESCRIPTION

    This appropriation will finance all salaries and related 
expenses associated with the operation of the Office of 
Inspector General [OIG].

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $126,000,000 
for the OIG, consistent with the budget request. This amount of 
funding is $2,082,000 less than the fiscal year 2017 enacted 
level.
    Audit Reports.--The Committee requests that the OIG provide 
copies of all audit reports to the Committee immediately after 
they are issued, and continue to make the Committee aware 
immediately of any review which recommends significant 
budgetary savings.

    GENERAL PROVISIONS--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT


                     (INCLUDING TRANSFER OF FUNDS)

                         (INCLUDING RESCISSION)

    The Committee recommends administrative provisions. A brief 
description follows.
    Sec. 201. This section promotes the refinancing of certain 
housing bonds.
    Sec. 202. This section clarifies a limitation on the use of 
funds under the Fair Housing Act.
    Sec. 203. This section requires HUD to award funds on a 
competitive basis unless otherwise provided.
    Sec. 204. This section allows funds to be used to reimburse 
GSEs and other Federal entities for various administrative 
expenses.
    Sec. 205. This section limits HUD's spending to amounts set 
out in the budget justification.
    Sec. 206. This section clarifies expenditure authority for 
entities subject to the Government Corporation Control Act.
    Sec. 207. This section requires quarterly reports on all 
uncommitted, unobligated and excess funds associated with HUD 
programs.
    Sec. 208. This section requires that the administration's 
budget and the Department's budget justifications for fiscal 
year 2019 be submitted in the identical account and sub-account 
structure provided in this act.
    Sec. 209. This section exempts GNMA from certain 
requirements of the Federal Credit Reform Act of 1990.
    Sec. 210. This section allows HUD to authorize the transfer 
of existing project-based subsidies and liabilities from 
obsolete housing to housing that better meets the needs of the 
assisted tenants.
    Sec. 211. This section reforms certain section 8 rent 
calculations as related to athletic scholarships.
    Sec. 212. This section provides allocation requirements for 
Native Alaskans under the Indian Housing Block Grant program.
    Sec. 213. This section eliminates a cap on Home Equity 
Conversion Mortgages for fiscal year 2018.
    Sec. 214. This section requires HUD to maintain section 8 
assistance on HUD-held or owned multifamily housing.
    Sec. 215. This section clarifies the use of the section 108 
loan guaranteed program for nonentitlement communities.
    Sec. 216. This section allows PHAs with less than 400 units 
to be exempt from management requirements in the operating fund 
rule.
    Sec. 217. This section restricts the Secretary from 
imposing any requirement or guideline relating to asset 
management that restricts or limits the use of capital funds 
for central office costs, up to the limit established in QWHRA.
    Sec. 218. This section requires that no employee of the 
Department shall be designated as an allotment holder unless 
the CFO determines that such employee has received certain 
training.
    Sec. 219. The section requires the Secretary to publish all 
notices of funding availability that are competitively awarded 
on the Internet.
    Sec. 220. This section limits attorney fees and requires 
the Department to submit a spend plan to the House and Senate 
Committees on Appropriations.
    Sec. 221. This section allows the Secretary to transfer up 
to 10 percent of funds or $5,000,000, whichever is less, 
appropriated under the headings ``Administrative Support 
Offices'' or ``Program Office Salaries and Expenses'' to any 
other office funded under such headings.
    Sec. 222. This section requires HUD to take certain actions 
against owners receiving rental subsidies that do not maintain 
safe properties.
    Sec. 223. This section places limits on PHA compensation.
    Sec. 224. This section extends the HOPE VI program until 
September 30, 2018.
    Sec. 225. This section requires the Secretary to provide 
the Committee with advance notification before discretionary 
awards are made.
    Sec. 226. This section prohibits funds to be used to 
require or enforce the Physical Needs Assessment.
    Sec. 227. This section prohibits funds for HUD financing of 
mortgages for properties that have been subject to eminent 
domain.
    Sec. 228. This section prohibits funds from being used to 
terminate the status of a unit of local government as a 
metropolitan city, as defined under section 102 of the Housing 
and Community Development Act of 1974, with respect to grants 
under section 106 of such act.
    Sec. 229. This section allows funding for research, 
evaluation, and statistical purposes that is unexpended at the 
time of completion of the contract, grant, or cooperative 
agreement to be reobligated for additional research.
    Sec. 230. This section prohibits funds to be used for 
financial awards for employees subject to administrative 
discipline.
    Sec. 231. This section authorizes the Secretary on a 
limited basis to use funds available under the ``Homeless 
Assistance Grants'' heading to participate in the multiagency 
Performance Partnership Pilots program.
    Sec. 232. This section allows program income to be used as 
an eligible match for 2015, 2016, 2017 and 2018 Continuum of 
Care funds.
    Sec. 233. This section permits HUD to provide 1 year 
transition grants under the continuum of care program.
    Sec. 234. This section prohibits section 218(g) of the 
Cranston-Gonzalez National Affordable Housing Act from applying 
with respect to the right of a jurisdiction to draw funds from 
its HOME Investment Trust Fund that otherwise expired or would 
expire.
    Sec. 235. This section prohibits the use of funds to direct 
a grantee to undertake specific changes to existing zoning laws 
as part of carrying out the final rule entitled, 
``Affirmatively Furthering Fair Housing'' or the notice 
entitled, ``Affirmatively Further Fair Housing Assessment 
Tool''.
    Sec. 236. This section modifies the Rental Assistance 
Demonstration included in Public Law 112-55.
    Sec. 237. This section prohibits funds from being used to 
interfere with state and local inspections of public housing 
units.
    Sec. 238. This section maintains current Promise Zone 
designations and agreements.

                               TITLE III

                          INDEPENDENT AGENCIES

                              Access Board

                         SALARIES AND EXPENSES

Appropriations, 2017....................................      $8,190,000
Budget estimate, 2018...................................       7,928,000
Committee recommendation................................       8,190,000

                          PROGRAM DESCRIPTION

    The Access Board (formerly known as the Architectural and 
Transportation Barriers Compliance Board) was established by 
section 502 of the Rehabilitation Act of 1973. The Access Board 
is responsible for developing guidelines under the Americans 
with Disabilities Act, the Architectural Barriers Act, and the 
Telecommunications Act. These guidelines ensure that buildings 
and facilities, transportation vehicles, and telecommunications 
equipment covered by these laws are readily accessible to and 
usable by people with disabilities. The Board is also 
responsible for developing standards under section 508 of the 
Rehabilitation Act for accessible electronic and information 
technology used by Federal agencies, and for medical diagnostic 
equipment under section 510 of the Rehabilitation Act. The 
Access Board also enforces the Architectural Barriers Act, 
ensuring accessibility to a wide range of Federal agencies, 
including national parks, post offices, social security 
offices, and prisons. In addition, the Board provides training 
and technical assistance on the guidelines and standards it 
develops to Government agencies, public and private 
organizations, individuals and businesses on the removal of 
accessibility barriers.
    In 2002, the Access Board was given additional 
responsibilities under the Help America Vote Act. The Board 
serves on the Board of Advisors and the Technical Guidelines 
Development Committee, which helps the Election Assistance 
Commission develop voluntary guidelines and guidance for voting 
systems, including accessibility for people with disabilities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $8,190,000 for the operations of 
the Access Board. This level of funding is equal to the 2017 
enacted level and $262,000 more than the President's fiscal 
year 2018 request.

                      Federal Maritime Commission


                         SALARIES AND EXPENSES

Appropriations, 2017....................................     $27,490,000
Budget estimate, 2018...................................      26,149,000
Committee recommendation................................      27,490,000

                          PROGRAM DESCRIPTION

    The Federal Maritime Commission [FMC] is an independent 
regulatory agency, which administers the Shipping Act of 1984 
(Public Law 98-237), as amended by the Ocean Shipping Reform 
Act of 1998 (Public Law 105-258); section 19 of the Merchant 
Marine Act of 1920 (41 Stat. 998); the Foreign Shipping 
Practices Act of 1988 (Public Law 100-418); and Public Law 89-
777.
    FMC's mission is to foster a fair, efficient, and reliable 
international ocean transportation system and to protect the 
public from unfair and deceptive practices. To accomplish this 
mission, FMC regulates the international waterborne commerce of 
the United States. In addition, FMC has responsibility for 
licensing and bonding ocean transportation intermediaries and 
for ensuring that vessel owners or operators establish 
financial responsibility to pay judgments for death or injury 
to passengers, or nonperformance of a cruise, on voyages from 
United States ports.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $27,490,000 for the salaries and 
expenses of FMC for fiscal year 2018. This amount is $1,341,000 
more than the President's fiscal year 2018 budget request and 
equal to the fiscal year 2017 enacted level.
    The Committee commends FMC's efforts to promote access to 
foreign markets for American exports and efficient supply 
chains for the importation of goods for domestic production and 
consumption. These pursuits support economic growth and job 
creation. The Committee also supports FMC's continued efforts 
to protect consumers from potentially unlawful, unfair, or 
deceptive ocean transportation practices related to the 
movement of household goods or personal property in 
international ocean-borne trade.

                National Railroad Passenger Corporation


                      OFFICE OF INSPECTOR GENERAL

                         SALARIES AND EXPENSES

Appropriations, 2017....................................     $23,274,000
Budget estimate, 2018...................................      23,274,000
Committee recommendation................................      23,274,000

                          PROGRAM DESCRIPTION

    The Office of Inspector General for Amtrak was created by 
the Inspector General Act Amendment of 1988. The act recognized 
Amtrak as a ``designated Federal entity'' and required the 
railroad to establish an independent and objective unit to 
conduct and supervise audits and investigations relating to the 
programs and operations of Amtrak; recommend policies designed 
to promote economy, efficiency, and effectiveness in Amtrak, 
and prevent and detect fraud and abuse; and to provide a means 
for keeping the Amtrak leadership and the Congress fully 
informed about problems in Amtrak operations and the 
corporation's progress in making corrective action.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $23,274,000 for the Amtrak Office 
of Inspector General [OIG]. This funding level is equal to the 
budget request and equal to the fiscal year 2017 enacted level. 
The Committee retains language that requires the Amtrak OIG to 
submit a budget request in similar format and substance to 
those submitted by other executive agencies in the Federal 
Government.

                  National Transportation Safety Board


                         SALARIES AND EXPENSES

Appropriations, 2017....................................    $106,000,000
Budget estimate, 2018...................................     105,170,000
Committee recommendation................................     110,000,000

                          PROGRAM DESCRIPTION

    Initially established along with the Department of 
Transportation, the National Transportation Safety Board [NTSB] 
commenced operations on April 1, 1967, as an independent 
Federal agency. The Board is charged by Congress with 
investigating every civil aviation accident in the United 
States as well as significant accidents in the other modes of 
transportation--railroad, highway, marine, and pipeline--and 
issuing safety recommendations aimed at preventing future 
accidents. Although it has always operated independently, NTSB 
relied on DOT for funding and administrative support until the 
Independent Safety Board Act of 1974 (Public Law 93-633) 
severed all ties between the two organizations starting in 
1975.
    In addition to its investigatory duties, NTSB is 
responsible for maintaining the Government's database of civil 
aviation accidents and also conducts special studies of 
transportation safety issues of national significance. 
Furthermore, in accordance with the provisions of international 
treaties, NTSB supplies investigators to serve as U.S. 
accredited representatives for aviation accidents overseas 
involving U.S.-registered aircraft, or involving aircraft or 
major components of U.S. manufacture. NTSB also serves as the 
``court of appeals'' for any airman, mechanic, or mariner 
whenever certificate action is taken by the Federal Aviation 
Administration or the U.S. Coast Guard Commandant, or when 
civil penalties are assessed by FAA.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $110,000,000 for the National 
Transportation Safety Board, which is $4,830,000 more than the 
budget request and $4,000,000 more than the fiscal year 2017 
enacted level. The Committee has also continued to include 
language that allows NTSB to make payments on its lease for the 
NTSB training facility with funding provided in the bill.

                 Neighborhood Reinvestment Corporation


          PAYMENT TO THE NEIGHBORHOOD REINVESTMENT CORPORATION

Appropriations, 2017....................................    $140,000,000
Budget estimate, 2018...................................      27,400,000
Committee recommendation................................     140,000,000

                          PROGRAM DESCRIPTION

    The Neighborhood Reinvestment Corporation was created by 
the Neighborhood Reinvestment Corporation Act (Title VI of the 
Housing and Community Development Amendments of 1978, Public 
Law 95-557). The Neighborhood Reinvestment Corporation, 
operating under the trade name ``NeighborWorks America,'' helps 
local communities establish efficient and effective 
partnerships between residents and representatives of the 
public and private sectors. These partnership-based 
organizations are independent, tax-exempt, nonprofit entities 
and are frequently known as Neighborhood Housing Services or 
mutual housing associations.
    Collectively, these organizations are known as the 
NeighborWorks network. Nationally, over 240 NeighborWorks 
organizations serve nearly 3,000 urban, suburban, and rural 
communities in every State, the District of Columbia, and 
Puerto Rico.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $140,000,000 
for NeighborWorks for fiscal year 2018. This amount is 
$112,600,000 more than the budget request and equal to the 
fiscal year 2017 enacted level. The Committee continues to 
support the set-aside of $5,000,000 for the multifamily rental 
housing initiative, which has been successful in developing 
innovative approaches to producing mixed-income affordable 
housing throughout the Nation. The Committee directs 
NeighborWorks to provide 3 days' notice prior to the 
announcement of any grant to the House and Senate Committees on 
Appropriations.
    Shared Equity Homeownership.--The Committee recognizes the 
need for increased Federal investment to promote, expand, and 
preserve homeownership through financial and housing education 
and counseling, lending programs, default intervention, and 
foreclosure prevention. The Committee recommends increased 
investment to support the growth of the shared equity 
homeownership model as a promising approach for helping lower 
income and minority families to achieve sustainable 
homeownership, while delivering positive economic activity to 
the surrounding community.
    Mortgage Rescue Scams.--In 2009, Congress directed 
NeighborWorks to develop a national public education campaign 
to address the rise in loan modification scams. In response, 
NeighborWorks worked to raise awareness of these scams through 
public service announcements, public media, and the Internet, 
and has helped thousands of vulnerable homeowners access 
legitimate forms of assistance and connect with law 
enforcement. In recent years, however, loan modification scam 
activity has declined in the United States, as we continue to 
emerge from the foreclosure crisis. Additionally, the Consumer 
Financial Protection Bureau, which was not yet in existence at 
the beginning of this campaign, has undertaken a similar 
initiative. Accordingly, the Committee commends NeighborWorks 
for their successful efforts in educating consumers and expects 
NeighborWorks to continue to be responsive to emerging issues 
raised by its network.
    Rural Areas.--The Committee continues to support 
NeighborWorks' efforts to build capacity in rural areas. The 
Committee urges NeighborWorks to continue these efforts.

                      Surface Transportation Board


                         SALARIES AND EXPENSES

------------------------------------------------------------------------
                                                            Crediting
                                        Appropriation      offsetting
                                                           collections
------------------------------------------------------------------------
Appropriations, 2017................       $37,000,000        $1,250,000
Budget estimate, 2018...............        37,100,000         1,250,000
Committee recommendation............        37,100,000         1,250,000
------------------------------------------------------------------------

                          PROGRAM DESCRIPTION

    The Surface Transportation Board [STB] was created on 
January 1, 1996, by the Interstate Commerce Commission 
Termination Act of 1995 [ICCTA] (Public Law 104-88). The Board 
is a five-member, bipartisan, decisionally independent 
adjudicatory body and is responsible for the regulation of the 
rail and pipeline industries and certain non-licensing 
regulations of motor carriers and water carriers.
    STB's rail oversight activities include rate 
reasonableness, car service and interchange, mergers, line 
acquisitions, line constructions, and abandonments. STB's 
jurisdiction also includes certain oversight of the intercity 
bus industry, pipeline carriers, intercity passenger train 
service, rate regulation involving noncontiguous domestic water 
transportation, household goods carriers, and collectively 
determined motor carrier rates.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total appropriation of 
$37,100,000. This funding level is equal to the budget request 
and $100,000 more than the fiscal year 2017 enacted level. 
Included in the recommendation is $1,250,000 in fees, which 
will offset the appropriated funding, resulting in final 
appropriation from the general fund estimated at no more than 
$35,850,000.
    Regulatory Proceedings.--While the STB has made progress in 
implementing the Surface Transportation Board Reauthorization 
Act of 2015, the Committee is concerned about a number of 
pending regulatory proceedings that would reform existing 
regulations at the STB. These proceedings are more difficult to 
resolve without all five board members. The Committee 
encourages the Administration to expeditiously nominate the 
full complement of board members to the STB, and encourages STB 
to provide a timely, efficient, and decisive regulatory 
process.

           United States Interagency Council On Homelessness


                           OPERATING EXPENSES

Appropriations, 2017....................................      $3,600,000
Budget estimate, 2018...................................         570,000
Committee recommendation................................       3,600,000

                          PROGRAM DESCRIPTION

    The United States Interagency Council on Homelessness 
[USICH] is an independent agency created by the McKinney-Vento 
Homeless Assistance Act of 1987 to coordinate and direct the 
multiple efforts of Federal agencies and other designated 
groups. The Council was authorized to review Federal programs 
that assist homeless persons and to take necessary actions to 
reduce duplication. The Council can recommend improvements in 
programs and activities conducted by Federal, State, and local 
government, as well as local volunteer organizations. The 
Council consists of the heads of 19 Federal agencies, including 
the Departments of Housing and Urban Development, Health and 
Human Services, Veterans Affairs, Agriculture, Commerce, 
Defense, Education, Labor, and Transportation; and other 
entities as deemed appropriate.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $3,600,000 for 
the USICH. This amount is $3,030,000 greater than the budget 
request and equal to the fiscal year 2017 enacted level. The 
bill includes language to amend the McKinney-Vento Homeless 
Assistance Act to eliminate USICH's sunset date and make the 
Council permanent.
    USICH supports Federal collaboration and implementation of 
the Federal strategic plan to prevent and end homelessness. The 
Council's work on such issues as establishing common 
definitions of homelessness across programs and consolidating 
Federal data is helping to breakdown silos and increase Federal 
collaboration. Its work was recognized by GAO in its February 
2012 report on ways to reduce duplication, overlap, and 
fragmentation in the Federal Government. The Committee is aware 
that individuals who are homeless or in unstable housing 
situations are often living with multiple chronic conditions. 
The link between homelessness and long-term physical and 
behavioral health conditions is well documented. The Committee 
has recognized the cost-savings that can be achieved by using 
evidence-based practices, and has been supportive of such 
efforts, including through the HUD-VASH program and other 
permanent supportive housing through HUD's homeless assistance 
grants program. However, the Committee believes that more can 
be done to emphasize evidence-based practices in serving other 
populations. The Committee continues to direct the USICH to 
improve coordination between HUD, HHS and other Federal 
agencies, and to help communities use the Homeless Management 
Information System and other data to target affordable housing 
and homeless resources to high-need, high-cost families and 
individuals. The Committee further encourages HUD to work with 
HHS and other Federal agencies to identify homeless individuals 
who have high utilization rates for emergency and other public 
services, and share strategies for combining affordable housing 
with health and social support services to improve both housing 
and health outcomes for these individuals.
    Performance Metrics and Cross-Agency Coordination.--USICH 
leads the coordination of the Federal response to ending 
homelessness among 19 Federal agencies, as well as State, 
local, nonprofit and philanthropic organizations. However, the 
Committee remains concerned that other stakeholders do not 
fully appreciate the value of the important work that agency 
has been able to accomplish over time due to the Council's lack 
of clear output and outcome based performance metrics. The 
Committee directs the agency to undertake the development of 
measurable performance goals and metrics that define how USICH 
accomplishes its mission for inclusion in its fiscal year 2019 
Congressional budget justification.
    The Committee also directs USICH to develop performance 
metrics to measure the progress that USICH and its partners 
have made to address and end homelessness in the 2019 
performance and accountability report, as well as provide an 
update on efforts to improve cross-agency collaboration and 
coordination on integrating child welfare systems with housing 
and services provided through HUD and the Department of Health 
and Human Services in response to youth homelessness; the 
coordination between continuums of care and the Department of 
Labor employment programs, the Department of Education and HUD, 
and the Department of Agriculture with other Federal agencies.
    The Committee believes these targeted, data-driven analyses 
will better educate Congress and the public at-large on the 
clear outcomes of USICH's work to promote cost-effective 
policies, and evidence-based practices in urban and rural 
communities alike. The Committee further directs the agency to 
report to the House and Senate Committees on Appropriations 
within 120 days of enactment of this act on the status of these 
efforts.
    Homeless Youth.--One of the goals of the Federal Strategic 
Plan is to prevent and end homelessness among youth by 2020. 
The plan identifies four core targeted outcomes for youth 
experiencing homelessness--stable housing, permanent 
connections, education and employment, and social/emotional 
well-being. These outcomes appropriately identify the multiple 
needs of youth experiencing homelessness and underscore the 
importance of comprehensive solutions. To be successful, it is 
critical to coordinate Federal services and programs at the 
local, regional, and State levels to ensure these outcomes are 
met. As such, the Committee recognizes that it can be difficult 
for local communities, as well as housing and service 
providers, to navigate different Federal program laws and 
regulatory requirements. USICH is directed to work with its 
Federal member agencies to ensure that all homeless-related 
Federal grant funding solicitations are coordinated and made 
publically available, a user-friendly document that helps local 
communities identify and understand the scope of all Federal 
programs for which homeless youth are eligible. This document 
shall include detailed descriptions of eligibility criteria, 
application instructions, and application deadlines and be 
updated as necessary.

                                TITLE IV

                      GENERAL PROVISIONS--THIS ACT

    Section 401 prohibits pay and other expenses for non-
Federal parties in regulatory or adjudicatory proceedings 
funded in this act.
    Section 402 prohibits obligations beyond the current fiscal 
year and prohibits transfers of funds unless expressly so 
provided here-in.
    Section 403 limits expenditures for consulting services 
through procurement contracts where such expenditures are a 
matter of public record and available for public inspection.
    Section 404 prohibits the use of funds for employee 
training unless such training bears directly upon the 
performance of official duties.
    Section 405 authorizes the reprogramming of funds within a 
budget account and specifies the reprogramming procedures for 
agencies funded by this act. The Committee rejects the 
administration's request to transfer budget authority between 
accounts.
    Section 406 ensures that 50 percent of unobligated balances 
may remain available for certain purposes.
    Section 407 prohibits the use of funds for eminent domain 
unless such taking is employed for public use.
    Section 408 prohibits funds in this act to be transferred 
without express authority.
    Section 409 protects employment rights of Federal employees 
who return to their civilian jobs after assignment with the 
Armed Forces.
    Section 410 prohibits the use of funds for activities not 
in compliance with the Buy American Act.
    Section 411 prohibits funding for any person or entity 
convicted of violating the Buy American Act.
    Section 412 prohibits funds for first-class airline 
accommodation in contravention of section 301-10.122 and 301-
10.123 of title 41 CFR.
    Section 413 prohibits funds from being used for the 
approval of a new foreign air carrier permit or exemption 
application if that approval would contravene United States law 
or article 17 bis of the U.S.-E.U.-Iceland-Norway Air Transport 
Agreement and specifies that nothing in this section shall 
prohibit, restrict, or preclude the Secretary of DOT from 
granting a permit or exemption where such authorization is 
consistent with the U.S.-E.U.-Iceland-Norway Air Transport 
Treaty and the U.S. law.
    Section 414 restricts the number of employees that agencies 
funded in this act may send to international conferences.
    Section 415 prohibits funds to agencies unless they are in 
compliance with the Presidential Memorandum--Federal Fleet 
Performance, dated May 24, 2011.
    Section 416 prohibits the Surface Transportation Board from 
charging filing fees for rate or practice complaints that are 
greater than the fees authorized for district court civil 
suits.
    Section 417 prohibits funds from being used to privatize 
air traffic control.
    Section 418 prohibits funds from denying an Inspector 
General timely access to any records, documents, or other 
materials available to the department or agency over which that 
Inspector General has responsibilities, or to prevent or impede 
that Inspector General's access.

  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.
    The Committee recommends funding for the following programs 
or activities which currently lack authorization for fiscal 
year 2018:

                 Title I--Department of Transportation

    National Infrastructure Investments
    Federal Aviation Administration
    Maritime Administration

         Title II--Department of Housing and Urban Development

    Rental Assistance Programs
    Indian Housing Block Grants
    Indian Housing Loan Guarantee Fund
    Native Hawaiian Housing Block Grant
    Housing Opportunity for Persons with AIDS
    Community Development Fund
    Community Development Loan Guarantee
    Home Investment Partnerships Program
    Choice Neighborhoods Initiatives
    Self-Help Homeownership Opportunity Program
    Homeless Assistance
    Housing for the Elderly
    Housing for Persons with Disabilities
    FHA General and Special Risk Program Account
    GNMA Mortgage Backed Securities Loan Guarantee Program 
Account
    Policy Development and Research
    Fair Housing Activities, Fair Housing Program
    Lead Hazard Reduction Program
    Salaries and Expenses

                      Title III--Related Agencies

    Access Board
    National Transportation Safety Board

COMPLIANCE WITH PARAGRAPH 7(C), RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Pursuant to paragraph 7(c) of rule XXVI, on July 27, 2017, 
the Committee ordered favorably reported a bill (S. 1655) 
making appropriations for the Departments of Transportation, 
and Housing and Urban Development, and related agencies for the 
fiscal year ending September 30, 2018, and for other purposes, 
provided, that the bill be subject to amendment and that the 
bill be consistent with the subcommittee funding guidance, 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 31-0, 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. Blunt
Mr. Moran
Mr. Hoeven
Mr. Boozman
Mrs. Capito
Mr. Lankford
Mr. Daines
Mr. Kennedy
Mr. Rubio
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
Mr. Manchin
Mr. Van Hollen

 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, the following 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 23--HIGHWAYS


                    Chapter 1--Federal-Aid Highways


Sec. 149. Congestion mitigation and air quality improvement program

    (m) Operating Assistance.--A State may obligate funds 
apportioned under section 104(b)(4) in an area of such State 
that is otherwise eligible for obligations of such funds for 
operating costs under chapter 53 of title 49 or on a system for 
which CMAQ funding was made available, obligated or expended in 
fiscal year 2012, or on a State-Supported Amtrak route with a 
valid cost-sharing agreement under section 209 of the Passenger 
Rail Investment and Improvement Act of 2008 and no current 
nonattainment areas under subsection (d), and shall have no 
imposed time limitation.
                                ------                                


                TITLE 42--THE PUBLIC HEALTH AND WELFARE


                     Chapter 8--Low-Income Housing


           Subchapter I--General Program of Assisted Housing


Sec. 1437v. Demolition, site revitalization, replacement housing, and 
                    tenant-based assistance grants for projects

(m) Funding

  (1) Authorization of appropriations

    There are authorized to be appropriated for grants under 
this section $574,000,000 for [fiscal year 2017.] fiscal year 
2018.

           *       *       *       *       *       *       *

(o) Sunset

    No assistance may be provided under this section after 
[September 30, 2017.] September 30, 2018.

           *       *       *       *       *       *       *


                    Chapter 119--Homeless Assistance


    Subchapter II--United States Interagency Council on Homelessness


Sec. 11318. Authorization of appropriations

    There are authorized to be appropriated [to carry out this 
subchapter $3,000,000 for fiscal year 2010 and such sums as may 
be necessary for fiscal years 2011] such sums as may be 
necessary to carry out this title. Any amounts appropriated to 
carry out this subchapter shall remain available until 
expended.

[Sec. 11319. Termination

    The Council shall cease to exist, and the requirements of 
this subchapter shall terminate, on October 1, 2018.]

Sec. [11320] 11319. Encouragement of State involvement

(a) State contact persons

    Each State shall designate an individual to serve as a 
State contact person for the purpose of receiving and 
disseminating information and communications received from the 
Council, including the bimonthly bulletin described in section 
11313(a)(7) 1 of this title.

(b) State interagency councils and lead agencies

    Each State is encouraged to establish a State interagency 
council on the homeless or designate a lead agency for the 
State for the purpose of assuming primary responsibility for 
coordinating and interacting with the Council and State and 
local agencies as necessary.
                                ------                                


                          TITLE 45--RAILROADS


       Chapter 17--Railroad Revitalization and Regulatory Reform


    Subchapter II--Railroad Rehabilitation and Improvement Financing


Sec. 823. Administration of direct loans and loan guarantees

(l) Charges and loan servicing

  (1) Purposes

           *       *       *       *       *       *       *

  (4) [Safety and operations account] National Surface 
Transportation and Innovative Finance Bureau Account, Office of 
the Secretary

      Amounts collected under this subsection shall--

          (A) be credited directly to [the Safety and 
        Operations account of the Federal Railroad 
        Administration] the National Surface Transportation and 
        Innovative Finance Bureau Account; and
                                ------                                


                        TITLE 49--TRANSPORTATION


                    SUBTITLE VII--AVIATION PROGRAMS


                    Part A--Air Commerce and Safety


                           SUBPART I--GENERAL

                    Chapter 401--General Provisions


Sec. 40104. Promotion of civil aeronautics and safety of air commerce

    (c) Airport Capacity Enhancement Projects at Congested 
Airports.--In carrying out subsection (a), the Administrator 
shall take action to encourage the construction of airport 
capacity enhancement projects at congested airports as those 
terms are defined in section 47176.

    (d) Promotion of United States Aerospace Standards, 
Products, and Services Abroad.--The Secretary shall take 
appropriate actions--

          (1) to promote United States aerospace-related safety 
        standards abroad;

          (2) to facilitate and vigorously defend approvals of 
        United States aerospace products and services abroad;

          (3) with respect to bilateral partners, to use 
        bilateral safety agreements and other mechanisms to 
        improve validation of type certificated aeronautical 
        products and services and enhance mutual acceptance in 
        order to eliminate redundancies and unnecessary costs; 
        and

          (4) with respect to the aeronautical safety 
        authorities of a foreign country, to streamline 
        validation and facilitate acceptance of United States 
        aerospace standards, products, and services.

           *       *       *       *       *       *       *


                           SUBPART I--GENERAL

                    Chapter 401--General Provisions


Sec. 40117. Passenger facility charges

    (b) General Authority.--

          (4) In lieu of authorizing a charge under paragraph 
        (1), the Secretary may authorize under this section an 
        eligible agency to impose a passenger facility charge 
        of [$4.00 or $4.50] $4.00 or any whole- or half-dollar 
        increment up to $8.50 on each paying passenger of an 
        air carrier or foreign air carrier boarding an aircraft 
        at an airport the agency controls to finance an 
        eligible airport-related project, including making 
        payments for debt service on indebtedness incurred to 
        carry out the project, if the Secretary finds--

           *       *       *       *       *       *       *

    (e) Limitations on Imposing Charges.--

          (2) A passenger facility charge may not be collected 
        from a passenger--

                  (A) for more than 2 boardings on a one-way 
                trip or a trip in each direction of a round 
                trip;

                  (F) enplaning at an airport if the passenger 
                did not pay for the air transportation which 
                resulted in such enplanement due to charter 
                arrangements and payment by the Department of 
                Defense.

          (3) The maximum passenger facility charge that may be 
        collected from a passenger boarding a second flight on 
        a one-way trip or on a trip in each direction of a 
        round trip through an airport that imposes a charge may 
        not exceed $4.50.

           *       *       *       *       *       *       *


                  Chapter 417--Operations of Carriers

                                ------                                


                       subchapter i--requirements

Sec.
41724. Musical instruments
41725. Prohibition on certain cell phone voice communications
                                ------                                


                       Subchapter I--Requirements


Sec. 41724. Musical instruments

    (c) Effective Date.--The requirements of this section shall 
become effective on the date of issuance of the final 
regulations under subsection (b).

Sec. 41725. Prohibition on certain cell phone voice communications

    (a) Prohibition.--The Secretary of Transportation shall 
issue regulations--

          (1) to prohibit an individual on an aircraft from 
        engaging in voice communications using a mobile 
        communications device during a flight of that aircraft 
        in scheduled passenger interstate air transportation or 
        intrastate air transportation; and

          (2) that exempt from the prohibition described in 
        paragraph (1)--

                  (A) any member of the flight crew on duty on 
                an aircraft; and

                  (B) any Federal law enforcement officer 
                acting in an official capacity.

    (b) Definitions.--In this section:

          (1) Flight.--The term ``flight'' means, with respect 
        to an aircraft, the period beginning when the aircraft 
        takes off and ending when the aircraft lands.

          (2) Mobile communications device.--

                  (A) In general.--The term ``mobile 
                communications device'' means any portable 
                wireless telecommunications equipment utilized 
                for the transmission or reception of voice 
                data.

                  (B) Limitation.--The term ``mobile 
                communications device'' does not include a 
                phone installed on an aircraft.

           *       *       *       *       *       *       *


                          SUBPART III--SAFETY

                     Chapter 447--Safety Regulation


Sec. 44701. General requirements

    (e) Bilateral Exchanges of Safety Oversight 
Responsibilities.--

          (4) Registered aircraft defined.--In this subsection, 
        the term ``registered aircraft'' means--

                  (A) aircraft registered in the United States 
                and operated pursuant to an agreement for the 
                lease, charter, or interchange of the aircraft 
                or any similar arrangement by an operator that 
                has its principal place of business or, if it 
                has no such place of business, its permanent 
                residence in another country; and

                  (B) aircraft registered in a foreign country 
                and operated under an agreement for the lease, 
                charter, or interchange of the aircraft or any 
                similar arrangement by an operator that has its 
                principal place of business or, if it has no 
                such place of business, its permanent residence 
                in the United States.

          (5) Mandatory compliance airworthiness instructions 
        issued by foreign countries.--

                  (A) Acceptance.--The Administrator may accept 
                mandatory compliance airworthiness instructions 
                issued by an aeronautical safety authority of a 
                foreign country by issuing a final rule and a 
                request for comments, if--

                          (i) the country is the state of 
                        design for the product that is the 
                        subject of the instructions;

                          (ii) the United States has a 
                        bilateral safety agreement relating to 
                        aircraft certification with the 
                        country;

                          (iii) as part of the bilateral safety 
                        agreement with the country, the 
                        Administrator has determined that the 
                        aeronautical safety authority has an 
                        aircraft certification system relating 
                        to safety that produces a level of 
                        safety equivalent to the level produced 
                        by the system of the Federal Aviation 
                        Administration; and

                          (iv) the aeronautical safety 
                        authority utilizes an open and 
                        transparent public notice and comment 
                        process in the issuance of mandatory 
                        compliance airworthiness instructions.

                  (B) Alternative approval process.--
                Notwithstanding subparagraph (A), the 
                Administrator may issue a Federal Aviation 
                Administration airworthiness directive instead 
                of accepting mandatory compliance airworthiness 
                instructions issued by the aeronautical safety 
                authority of a foreign country if the 
                Administrator determines that such issuance is 
                necessary for safety or operational reasons due 
                to the complexity or unique features of the 
                Federal Aviation Administration airworthiness 
                directive or the United States aviation system.

                  (C) Alternative means of compliance.--The 
                Administrator may--

                          (i) accept an alternative means of 
                        compliance, with respect to mandatory 
                        compliance airworthiness instructions 
                        under subparagraph (A), that was 
                        approved by the aeronautical safety 
                        authority of the foreign country that 
                        issued the instructions; or

                          (ii) notwithstanding subparagraph 
                        (A), and at the request of any person 
                        affected by mandatory compliance 
                        airworthiness instructions under that 
                        subparagraph, the Administrator may 
                        approve an alternative means of 
                        compliance with respect to the 
                        instructions.

           *       *       *       *       *       *       *


                 Part B--Airport Development and Noise


                    Chapter 471--Airport Development


                   Subchapter I--Airport Improvement


Sec. 47114. Apportionments

    (f) Reducing Apportionments.--
          (1) In general.--Subject to [paragraph (3)] paragraph 
        (4), an amount that would be apportioned under this 
        section (except subsection (c)(2)) in a fiscal year to 
        the sponsor of an airport having at least .25 [percent] 
        percent, but not more than 1.0 percent of the total 
        number of boardings each year in the United States and 
        for which a charge is imposed in the fiscal year under 
        section 40117 of this title shall be reduced by an 
        amount equal to--

           *       *       *       *       *       *       *

          (2) Large hub rule.--Subject to paragraph (4), an 
        amount that would be apportioned under this section 
        (except subsection (c)(2)) in a fiscal year to the 
        sponsor of an airport having 1.0 percent or more of the 
        total number of boardings each year in the United 
        States and for which a charge is imposed in the fiscal 
        year under section 40117 of this title shall be reduced 
        by an amount equal to 100 percent of the projected 
        revenues from the charge in the fiscal year but not by 
        more than 100 percent of the amount that otherwise 
        would be apportioned under this section.

          [(2)] (3) Effective date of reduction.--A reduction 
        in an apportionment required by paragraph (1) shall not 
        take effect until the first fiscal year following the 
        year in which the collection of the charge imposed 
        under section 40117 is begun.

          [(3)] (4) Special rule for transitioning airports.--

                  (A) In general.--Beginning with the fiscal 
                year following the first calendar year in which 
                the sponsor of an airport has more than .25 
                percent of the total number of boardings in the 
                United States, the sum of the amount that would 
                be apportioned under this section after 
                application of paragraph (1) in a fiscal year 
                to such sponsor and the projected revenues to 
                be derived from the charge in such fiscal year 
                shall not be less than the sum of the 
                apportionment to such airport for the preceding 
                fiscal year and the revenues derived from such 
                charge in the preceding fiscal year.

                  (B) Effective period.--Subparagraph (A) shall 
                be in effect for fiscal year 2004.

           *       *       *       *       *       *       *


Sec. 47124. Agreements for State and local operation of airport 
                    facilities

    (b) Air Traffic Control Contract Program.--

          (1) Contract tower program.--

           *       *       *       *       *       *       *

          (3) Contract air traffic control tower program.--

                  (A) In general.--* * *

           *       *       *       *       *       *       *

                  (D) Costs exceeding benefits.--If the costs 
                of operating an air traffic tower under the 
                program exceed the benefits, the airport 
                sponsor or State or local government having 
                jurisdiction over the airport shall pay the 
                portion of the costs that exceed such benefit, 
                with the maximum allowable local cost share 
                capped at 20 percent. Airports with both Part 
                121 air service and more than 25,000 passenger 
                enplanements in calendar year 2014 shall be 
                exempt from any cost share requirement under 
                the Cost-share Program.
                                ------                                


 INTERMODAL SURFACE TRANSPORTATION EFFICIENCY ACT OF 1991, PUBLIC LAW 
                                102-240


                    TITLE I--SURFACE TRANSPORTATION


                       Part A--Title 23 Programs


SEC. 1012. TOLL ROADS, BRIDGES, AND TUNNELS.

    (e)  Special Rule for Certain Existing Toll Facility 
Agreement.--(1) Notwithstanding sections 119 and 129 of title 
23, United States Code, at the request of the non-Federal 
parties to a toll facility agreement reached before October 1, 
1991, regarding the New York State Thruway or the Fort McHenry 
Tunnel under section 105 of the Federal-Aid Highway Act of 1978 
or section 129 of title 23, United States Code (as in effect on 
the day before the date of the enactment of this Act), the 
Secretary shall allow for the continuance of tolls without 
repayment of Federal funds. Revenues collected from such tolls, 
after the date of such request, in excess of revenues needed 
for debt service and the actual costs of operation and 
maintenance shall be available for (1) any transportation 
project eligible for assistance under title 23, United States 
Code, or (2) costs associated with transportation facilities 
under the jurisdiction of such non-Federal party, including 
debt service and costs related to the construction, 
reconstruction, restoration, repair, operation and maintenance 
of such facilities.

            (2) Upon the request of any State Department of 
        Transportation that was authorized to enter into a 
        tolling agreement under section 120(c) of Public Law 
        100-17 (101 STAT. 159), the Secretary is authorized to 
        modify the agreement entered into under Public Law 100-
        17, as follows. The Secretary shall authorize the use 
        of excess toll revenues for any other purpose for which 
        Federal funds may be obligated under title 23, United 
        States Code, provided the State--

                    (A) certifies annually that the tolled 
                facility is being adequately maintained; and

                    (B) agrees to comply with the audit 
                requirements in section 129(a)(3)(B) of title 
                23, United States Code.

            (3) For the purposes of paragraph (2), ``excess 
        toll revenues'' means revenues in excess of amounts 
        necessary for operation and maintenance; debt service; 
        reasonable return on investment of any private person 
        or entity that may be authorized by the State to 
        operate and maintain the facility; and any cost 
        necessary for improvement, including reconstruction, 
        resurfacing, restoration, and rehabilitation.

           *       *       *       *       *       *       *


SEC. 1105. HIGH PRIORITY CORRIDORS ON NATIONAL HIGHWAY SYSTEM.

    (c) Identification of High Priority Corridors on National 
Highway System.--* * *
            [(89) United State Route 67 from Interstate 40 in 
        North Little Rock, Arkansas, to United States Route 
        412.]

            (89) I-57 Corridor Extension as follows: In 
        Arkansas, the corridor shall follow United States Route 
        67 in North Little Rock, Arkansas, from I-40 to United 
        States Route 412, then continuing generally northeast 
        to the State line, and in Missouri, the corridor shall 
        continue generally north from the Arkansas State line 
        to Poplar Bluff, Missouri, and then follow United 
        States Route 60 to I-57.
                                ------                                


 CONSOLIDATED AND FURTHER CONTINUING APPROPRIATIONS ACT, 2012, PUBLIC 
                               LAW 112-55


DIVISION C--TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT, AND RELATED 
                                AGENCIES


                                TITLE II


              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT


                    Rental Assistance Demonstration

    To conduct a demonstration designed to preserve and improve 
public housing and certain other multifamily housing through 
the voluntary conversion of properties with assistance under 
section 9 of the United States Housing Act of 1937, 
(hereinafter, ``the Act''), or the moderate rehabilitation 
program under section 8(e)(2) of the Act, to properties with 
assistance under a project-based subsidy contract under section 
8 of the Act, which shall be eligible for renewal under section 
524 of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997, or assistance under section 8(o)(13) 
of the Act, the Secretary may transfer amounts provided through 
contracts under section 8(e)(2) of the Act or under the 
headings ``Public Housing Capital Fund'' and ``Public Housing 
Operating Fund'' to the headings ``Tenant-Based Rental 
Assistance'' or ``Project-Based Rental Assistance'' (herein the 
``First Component''): Provided, That the initial long-term 
contract under which converted assistance is made available may 
allow for rental adjustments only by an operating cost factor 
established by the Secretary, and shall be subject to the 
availability of appropriations for each year of such term: 
Provided further, That project applications may be received 
under this demonstration [until September 30, 2020] for fiscal 
year 2012 and thereafter: Provided further, That any increase 
in cost for ``Tenant-Based Rental Assistance'' or ``Project-
Based Rental Assistance'' associated with such conversion in 
excess of amounts made available under this heading shall be 
equal to amounts transferred from ``Public Housing Capital 
Fund'' and ``Public Housing Operating Fund'' or other account 
from which it was transferred: [Provided further, That not more 
than 225,000 units currently receiving assistance under section 
9 or section 8(e)(2) of the Act shall be converted under the 
authority provided under this heading:] Provided further, That 
tenants of such properties with assistance converted from 
assistance under section 9 shall, at a minimum, maintain the 
same rights under such conversion as those provided under 
sections 6 and 9 of the Act: Provided further, That the 
Secretary shall select properties from applications for 
conversion as part of this demonstration through a competitive 
process: Provided further, That in establishing criteria for 
such competition, the Secretary shall seek to demonstrate the 
feasibility of this conversion model to recapitalize and 
operate public housing properties (1) in different markets and 
geographic areas, (2) within portfolios managed by public 
housing agencies of varying sizes, and (3) by leveraging other 
sources of funding to recapitalize properties: Provided 
further, That the Secretary shall provide an opportunity for 
public comment on draft eligibility and selection criteria and 
procedures that will apply to the selection of properties that 
will participate in the demonstration: Provided further, That 
the Secretary shall provide an opportunity for comment from 
residents of properties to be proposed for participation in the 
demonstration to the owners or public housing agencies 
responsible for such properties: Provided further, That the 
Secretary may waive or specify alternative requirements for 
(except for requirements related to fair housing, 
nondiscrimination, labor standards, and the environment) any 
provision of section 8(o)(13) or any provision that governs the 
use of assistance from which a property is converted under the 
demonstration or funds made available under the headings of 
``Public Housing Capital Fund'', ``Public Housing Operating 
Fund'', and ``Project-Based Rental Assistance'', under this Act 
or any prior Act or any Act enacted during the period of 
conversion of assistance under the demonstration for properties 
with assistance converted under the demonstration, upon a 
finding by the Secretary that any such waivers or alternative 
requirements are necessary for the effective conversion of 
assistance under the demonstration: Provided further, That the 
Secretary shall publish by notice in the Federal Register any 
waivers or alternative requirements pursuant to the previous 
proviso no later than 10 days before the effective date of such 
notice: Provided further, That the demonstration may proceed 
after the Secretary publishes notice of its terms in the 
Federal Register: Provided further, That notwithstanding 
sections 3 and 16 of the Act, the conversion of assistance 
under the demonstration shall not be the basis for re-screening 
or termination of assistance or eviction of any tenant family 
in a property participating in the demonstration, and such a 
family shall not be considered a new admission for any purpose, 
including compliance with income targeting requirements: 
Provided further, That in the case of a property with 
assistance converted under the demonstration from assistance 
under section 9 of the Act, section 18 of the Act shall not 
apply to a property converting assistance under the 
demonstration for all or substantially all of its units, the 
Secretary shall require ownership or control of assisted units 
by a public or nonprofit entity except as determined by the 
Secretary to be necessary pursuant to foreclosure, bankruptcy, 
or termination and transfer of assistance for material 
violations or substantial default, in which case the priority 
for ownership or control shall be provided to a capable public 
or nonprofit entity, then a capable entity, as determined by 
the Secretary, shall require long-term renewable use and 
affordability restrictions for assisted units, and may allow 
ownership to be transferred to a for-profit entity to 
facilitate the use of tax credits only if the public housing 
agency [preserves its interest] or a nonprofit entity preserves 
an interest in the property in a manner approved by the 
Secretary, and upon expiration of the initial contract and each 
renewal contract, the Secretary shall offer and the owner of 
the property shall accept renewal of the contract subject to 
the terms and conditions applicable at the time of renewal and 
the availability of appropriations each year of such renewal: 
Provided further, That the Secretary may permit transfer of 
assistance at or after conversion under the demonstration to 
replacement units subject to the requirements in the previous 
proviso: Provided further, That the Secretary may establish the 
requirements for converted assistance under the demonstration 
through contracts, use agreements, regulations, or other means: 
Provided further, That the Secretary shall assess and publish 
findings regarding the impact of the conversion of assistance 
under the demonstration on the preservation and improvement of 
public housing, the amount of private sector leveraging as a 
result of such conversion, and the effect of such conversion on 
tenants: Provided further, That for fiscal year 2012 and 
hereafter, owners of properties assisted under section 101 of 
the Housing and Urban Development Act of 1965, section 
236(f)(2) of the National Housing Act, or section 8(e)(2) of 
the United States Housing Act of 1937, for which an event after 
October 1, 2006 has caused or results in the termination of 
rental assistance or affordability restrictions and the 
issuance of tenant protection vouchers under section 8(o) of 
the Act, or with a project rental assistance contract under 
section 202(c)(2) of the Housing Act of 1959, shall be 
eligible, subject to requirements established by the Secretary, 
including but not limited to the subordination, restructuring, 
or both, of any mortgage or other agreements securing a capital 
advance previously provided by the Secretary under section 
202(c)(1) of the Housing Act of 1959 in connection with the 
conversion of assistance, tenant consultation procedures, for 
conversion of assistance available for such vouchers or 
assistance contracts to assistance under a long-term project-
based subsidy contract under section 8 of the Act, which shall 
have a term of no less than 20 years, with rent adjustments 
only by an operating cost factor established by the Secretary, 
which shall be eligible for renewal under section 524 of the 
Multifamily Assisted Housing Reform and Affordability Act of 
1997 (42 U.S.C. 1437f note), or, subject to agreement of the 
administering public housing agency, to assistance under 
section 8(o)(13) of the Act, to which the limitation under 
subsection (B) of section 8(o)(13) of the Act shall not apply 
and for which the Secretary of Housing and Urban Development 
may waive or alter the provisions of subparagraphs (C) and (D) 
of section 8(o)(13) of the Act (herein the ``Second 
Component''):  Provided further, That contracts provided to 
properties converting assistance from section 101 of the 
Housing and Urban Development Act of 1965 or section 236(f)(2) 
of the National Housing Act located in high-cost areas shall 
have initial rents set at comparable market rents for the 
market area: Provided further, That conversions of assistance 
under the Second Component may not be the basis for re-
screening or termination of assistance or eviction of any 
tenant family in a property participating in the demonstration 
and such a family shall not be considered a new admission for 
any purpose, including compliance with income targeting: 
Provided further, That amounts made available under the heading 
``Rental Housing Assistance'' during the period of conversion 
under [the previous proviso] the Second Component shall be 
available for project-based subsidy contracts entered into 
pursuant to the Second Component: shall be available for 
project-based subsidy contracts entered into pursuant to the 
previous proviso: Provided further, That amounts, including 
contract authority, recaptured from contracts following a 
conversion under [the previous two provisos] the Second 
Component, except for conversion of section 202 project rental 
assistance contracts, are hereby rescinded and an amount of 
additional new budget authority, equivalent to the amount 
rescinded is hereby appropriated, to remain available until 
expended for such conversions: Provided further, That the 
Secretary may transfer amounts made available under the heading 
``Rental Housing Assistance'', amounts made available for 
tenant protection vouchers under the heading ``Tenant-Based 
Rental Assistance'' and specifically associated with any such 
conversions, and amounts made available under the previous 
proviso as needed to the account under the ``Project-Based 
Rental Assistance'' heading to facilitate conversion under [the 
three previous provisos] the Second Component, except for 
conversion of section 202 project rental assistance contracts, 
and any increase in cost for ``Project-Based Rental 
Assistance'' associated with such conversion shall be equal to 
amounts so transferred:  Provided further, That the Secretary 
may transfer amounts made available under the headings 
``Housing for the Elderly'' and ``Rental Assistance 
Demonstration'' to the accounts under the headings ``Project-
Based Rental Assistance'' or ``Tenant-Based Rental Assistance'' 
to facilitate any section 202 project rental assistance 
contract conversion under the Second Component, and any 
increase in cost for ``Project-Based Rental Assistance'' or 
``Tenant-Based Rental Assistance'' associated with such 
conversion shall be equal to amounts so transferred: Provided 
further, That with respect to [the previous four provisos] the 
Second Component, the Comptroller General of the United States 
shall conduct a study of the long-term impact of the fiscal 
year 2012 and 2013 conversion of tenant protection vouchers to 
assistance under section 8(o)(13) of the Act on the ratio of 
tenant-based vouchers to project-based vouchers.
                                ------                                


 CONSOLIDATED AND FURTHER CONTINUING APPROPRIATIONS ACT, 2015, PUBLIC 
                              LAW 113-235


DIVISION K--TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT, AND RELATED 
                   AGENCIES APPROPRIATIONS ACT, 2015


         TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT


                       Public and Indian Housing


                  NATIVE HAWAIIAN HOUSING BLOCK GRANT

    For the Native Hawaiian Housing Block Grant program, as 
authorized under title VIII of the Native American Housing 
Assistance and Self-Determination Act of 1996 (25 U.S.C. 4111 
et seq.), $9,000,000, to remain available until September 30, 
2019: Provided, That of this amount, $300,000 shall be for 
training and technical assistance activities, including up to 
$100,000 for related travel by [Hawaii-based] employees of the 
Department of Housing and Urban Development.

                        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
                                                             guidance\1\      bill      guidance\1\      bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee guidance
 to its subcommittees of amounts for 2018: Subcommittee on
 Transportation and Housing and Urban Development, and
 Related Agencies:
    Mandatory.............................................  ............  ...........  ............  ...........
    Discretionary.........................................        60,058       60,058       122,276   \2\122,276
        Security..........................................           300          300            NA           NA
        Nonsecurity.......................................        59,758       59,758            NA           NA
Projection of outlays associated with the recommendation:
    2018..................................................  ............  ...........  ............    \3\43,532
    2019..................................................  ............  ...........  ............       32,389
    2020..................................................  ............  ...........  ............       15,545
    2021..................................................  ............  ...........  ............        6,499
    2022 and future years.................................  ............  ...........  ............        9,331
Financial assistance to State and local governments for               NA       34,877            NA    \3\33,192
 2018.....................................................
 
----------------------------------------------------------------------------------------------------------------
\1\There is no section 302(a) allocation to the Committee on Appropriations for fiscal year 2018.
\2\Includes outlays from prior-year budget authority.
\3\Excludes outlays from prior-year budget authority.
 
NA: Not applicable.
 


  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2017 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
                                                                        YEAR 2018
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        Senate Committee recommendation
                                                                                                                            compared with (+ or -)
                             Item                                     2017         Budget estimate      Committee    -----------------------------------
                                                                  appropriation                      recommendation         2017
                                                                                                                        appropriation    Budget estimate
--------------------------------------------------------------------------------------------------------------------------------------------------------
             TITLE I--DEPARTMENT OF TRANSPORTATION
 
                    Office of the Secretary
 
Salaries and expenses.........................................           114,000           111,898           112,813            -1,187              +915
    Immediate Office of the Secretary.........................           (2,758)  ................           (3,001)            (+243)          (+3,001)
    Immediate Office of the Deputy Secretary..................           (1,040)  ................           (1,040)  ................          (+1,040)
    Office of the General Counsel.............................          (20,772)  ................          (20,555)            (-217)         (+20,555)
    Office of the Under Secretary of Transportation for Policy          (10,033)  ................          (10,331)            (+298)         (+10,331)
    Office of the Assistant Secretary for Budget and Programs.          (14,019)  ................          (14,019)  ................         (+14,019)
    Office of the Assistant Secretary for Governmental Affairs           (2,546)  ................           (2,546)  ................          (+2,546)
    Office of the Assistant Secretary for Administration......          (29,356)  ................          (29,356)  ................         (+29,356)
    Office of Public Affairs..................................           (2,142)  ................           (2,142)  ................          (+2,142)
    Office of the Executive Secretariat.......................           (1,760)  ................           (1,760)  ................          (+1,760)
    Office of Intelligence, Security, and Emergency Response..          (11,089)  ................          (11,318)            (+229)         (+11,318)
    Office of the Chief Information Officer...................          (18,485)  ................          (16,745)          (-1,740)         (+16,745)
Research and technology.......................................            13,000             8,465             8,465            -4,535  ................
National infrastructure investments...........................           500,000  ................           550,000           +50,000          +550,000
National Surface Transportation and Innovative Finance Bureau.             3,000             3,000             3,000  ................  ................
Financial management capital..................................             4,000             3,000             3,000            -1,000  ................
Cyber security initiatives....................................            15,000            10,000            15,000  ................            +5,000
Office of Civil Rights........................................             9,751             9,500             9,500              -251  ................
Transportation planning, research, and development............            12,000             8,500             8,500            -3,500  ................
Working Capital Fund..........................................         (190,389)         (202,245)         (202,245)         (+11,856)  ................
Minority Business Resource Center Program.....................               941               500               941  ................              +441
    (Limitation on guaranteed loans)..........................          (18,367)  ................          (18,367)  ................         (+18,367)
Small and disadvantaged business utilizaton and outreach /                 4,646             3,999             4,646  ................              +647
 minority business outreach...................................
Payments to air carriers (Airport & Airway Trust Fund)........           150,000  ................           155,000            +5,000          +155,000
 
                   Administrative Provisions
 
Working Capital Fund (Sec. 104) (reappropriation).............  ................            12,000  ................  ................           -12,000
                                                               -----------------------------------------------------------------------------------------
      Total, Office of the Secretary..........................           826,338           170,862           870,865           +44,527          +700,003
                                                               =========================================================================================
                Federal Aviation Administration
 
Operations....................................................        10,025,852         9,890,886        10,186,000          +160,148          +295,114
    Air traffic organization..................................       (7,559,785)       (7,491,938)       (7,692,032)        (+132,247)        (+200,094)
    Aviation safety...........................................       (1,298,482)       (1,257,981)       (1,310,000)         (+11,518)         (+52,019)
    Commercial space transportation...........................          (19,826)          (17,905)          (21,587)          (+1,761)          (+3,682)
    Finance and management....................................         (771,342)         (758,192)         (777,506)          (+6,164)         (+19,314)
    NextGen...................................................          (60,155)          (59,041)          (60,000)            (-155)            (+959)
    Security and hazardous materials safety...................         (107,161)         (100,961)         (112,622)          (+5,461)         (+11,661)
    Staff offices.............................................         (209,101)         (204,868)         (212,253)          (+3,152)          (+7,385)
Facilities and equipment (Airport & Airway Trust Fund)........         2,855,000         2,766,200         3,005,000          +150,000          +238,800
Rescission of unobligated balances............................  ................           -31,200  ................  ................           +31,200
Research, engineering, and development (Airport & Airway Trust           176,500           150,000           179,000            +2,500           +29,000
 Fund.........................................................
Grants-in-aid for airports (Airport and Airway Trust                 (3,750,000)       (3,000,000)       (3,250,000)        (-500,000)        (+250,000)
 Fund)(Liquidation of contract authorization).................
    (Limitation on obligations)...............................       (3,350,000)       (3,350,000)       (3,600,000)        (+250,000)        (+250,000)
        Administration........................................         (107,691)         (111,863)         (111,863)          (+4,172)  ................
        Airport cooperative research program..................          (15,000)          (15,000)          (15,000)  ................  ................
        Airport technology research...........................          (31,375)          (33,210)          (33,210)          (+1,835)  ................
        Small community air service development program.......          (10,000)  ................          (10,000)  ................         (+10,000)
                                                               -----------------------------------------------------------------------------------------
          Total, Federal Aviation Administration..............        13,057,352        12,775,886        13,370,000          +312,648          +594,114
 
            Limitations on obligations........................       (3,350,000)       (3,350,000)       (3,600,000)        (+250,000)        (+250,000)
              Total budgetary resources.......................      (16,407,352)      (16,125,886)      (16,970,000)        (+562,648)        (+844,114)
                                                               =========================================================================================
                Federal Highway Administration
 
Limitation on Administrative Expenses.........................         (435,795)         (442,692)         (442,692)          (+6,897)  ................
 
Federal-aid highways (Highway Trust Fund):
    (Liquidation of contract authorization)...................      (44,005,100)      (44,973,212)      (44,973,212)        (+968,112)  ................
    (Limitation on obligations)...............................      (43,266,100)      (44,234,212)      (44,234,212)        (+968,112)  ................
    (Exempt contract authority)...............................         (739,000)         (739,000)         (739,000)  ................  ................
Spending TIFIA fees...........................................  ................             5,000             5,000            +5,000  ................
TIFIA receipts................................................  ................            -5,000            -5,000            -5,000  ................
Rescission of contract authority (Highway Trust Fund).........          -857,000  ................  ................          +857,000  ................
 
                   Administrative Provisions
 
Sec. 124......................................................  ................  ................  ................  ................  ................
                                                               -----------------------------------------------------------------------------------------
      Total, Federal Highway Administration...................          -857,000  ................  ................          +857,000  ................
 
          Limitations on obligations..........................      (43,266,100)      (44,234,212)      (44,234,212)        (+968,112)  ................
          Exempt contract authority...........................         (739,000)         (739,000)         (739,000)  ................  ................
            Total budgetary resources.........................      (43,148,100)      (44,973,212)      (44,973,212)      (+1,825,112)  ................
                                                               =========================================================================================
          Federal Motor Carrier Safety Administration
 
Motor carrier safety operations and programs (Highway Trust            (277,200)         (283,000)         (283,000)          (+5,800)  ................
 Fund) (Liquidation of contract authorization)................
    (Limitation on obligations)...............................         (277,200)         (283,000)         (283,000)          (+5,800)  ................
    Rescission of contract authority (Highway Trust Fund).....  ................  ................           -13,915           -13,915           -13,915
 
Motor carrier safety:
    Rescission of contract authority (Highway Trust Fund).....  ................  ................            -2,930            -2,930            -2,930
 
                 National Motor Carrier Safety
 
    Rescission of contract authority (Highway Trust Fund).....  ................  ................            -9,419            -9,419            -9,419
Motor carrier safety grants (Highway Trust Fund) (Liquidation          (367,000)         (374,800)         (374,800)          (+7,800)  ................
 of contract authorization)...................................
    (Limitation on obligations)...............................         (367,000)         (374,800)         (461,800)         (+94,800)         (+87,000)
    Rescission of contract authority (Highway Trust Fund).....  ................  ................           -91,452           -91,452           -91,452
                                                               -----------------------------------------------------------------------------------------
      Total, Federal Motor Carrier Safety Administration......  ................  ................          -117,716          -117,716          -117,716
        Rescissions of contract authority.....................  ................  ................        (-117,716)        (-117,716)        (-117,716)
      Limitations on obligations..............................         (644,200)         (657,800)         (744,800)        (+100,600)         (+87,000)
        Total budgetary resources.............................         (644,200)         (657,800)         (627,084)         (-17,116)         (-30,716)
                                                               =========================================================================================
        National Highway Traffic Safety Administration
 
Operations and research (general fund)........................           180,075           152,510           162,000           -18,075            +9,490
Operations and research (Highway Trust Fund) (Liquidation of           (145,900)         (149,000)         (149,000)          (+3,100)  ................
 contract authorization)......................................
    (Limitation on obligations)...............................         (145,900)         (149,000)         (149,000)          (+3,100)  ................
                                                               -----------------------------------------------------------------------------------------
      Subtotal, Operations and Research.......................           325,975           301,510           311,000           -14,975            +9,490
 
Highway Traffic Safety Grants (Highway Trust Fund)                     (585,372)         (597,629)         (597,629)         (+12,257)  ................
 (Liquidation of contract authorization)......................
    (Limitation on obligations)...............................         (585,372)         (597,629)         (597,629)         (+12,257)  ................
        Highway safety programs (23 USC 402)..................         (252,300)         (261,200)         (261,200)          (+8,900)  ................
        National priority safety programs (23 USC 405)........         (277,500)         (280,200)         (280,200)          (+2,700)  ................
        High visibility enforcement...........................          (29,500)          (29,900)          (29,900)            (+400)  ................
        Administrative expenses...............................          (26,072)          (26,329)          (26,329)            (+257)  ................
                                                               -----------------------------------------------------------------------------------------
          Total, National Highway Traffic Safety                         180,075           152,510           162,000           -18,075            +9,490
           Administration.....................................
 
              Limitations on obligations......................         (731,272)         (746,629)         (746,629)         (+15,357)  ................
                  Total budgetary resources...................         (911,347)         (899,139)         (908,629)          (-2,718)          (+9,490)
                                                               =========================================================================================
                Federal Railroad Administration
 
Safety and operations.........................................           218,298           199,000           210,000            -8,298           +11,000
Railroad research and development.............................            40,100            39,100            40,100  ................            +1,000
Federal State Partnership for State of Good Repair............            25,000            25,945            26,000            +1,000               +55
Consolidated rail infrastructure and safety improvements......            68,000            25,000            92,547           +24,547           +67,547
    Restoration and enhancement grants........................             5,000  ................             5,000  ................            +5,000
                                                               -----------------------------------------------------------------------------------------
      Subtotal................................................           356,398           289,045           373,647           +17,249           +84,602
 
National Railroad Passenger Corporation:
    Northeast Corridor Grants.................................           328,000           235,000           358,400           +30,400          +123,400
    National Network..........................................         1,167,000           525,000         1,241,600           +74,600          +716,600
                                                               -----------------------------------------------------------------------------------------
      Subtotal................................................         1,495,000           760,000         1,600,000          +105,000          +840,000
 
                   Administrative Provisions
 
Transportation Technology Center financing (Sec. 151).........  ................           100,000  ................  ................          -100,000
                                                               -----------------------------------------------------------------------------------------
      Total, Federal Railroad Administration..................         1,851,398         1,149,045         1,973,647          +122,249          +824,602
                                                               =========================================================================================
                Federal Transit Administration
 
Administrative expenses.......................................           113,165           110,795           113,165  ................            +2,370
Transit formula grants (Hwy Trust Fund, Mass Transit Account        (10,800,000)      (10,300,000)      (10,300,000)        (-500,000)  ................
 (Liquidation of contract authorization)......................
    (Limitation on obligations)...............................       (9,733,706)       (9,733,353)       (9,733,353)            (-353)  ................
Technical assistance and training.............................             5,000  ................  ................            -5,000  ................
Capital investment grants.....................................         2,412,631         1,232,000         2,132,910          -279,721          +900,910
Washington Metropolitan Area Transit Authority Capital and               150,000           149,715           150,000  ................              +285
 Preventive Maintenance.......................................
                                                               -----------------------------------------------------------------------------------------
      Total, Federal Transit Administration...................         2,680,796         1,492,510         2,396,075          -284,721          +903,565
 
          Limitations on obligations..........................       (9,733,706)       (9,733,353)       (9,733,353)            (-353)  ................
            Total budgetary resources.........................      (12,414,502)      (11,225,863)      (12,129,428)        (-285,074)        (+903,565)
                                                               =========================================================================================
         Saint Lawrence Seaway Development Corporation
 
Operations and maintenance (Harbor Maintenance Trust Fund)....            36,028            28,346            36,028  ................            +7,682
 
                    Maritime Administration
 
Maritime Security Program.....................................           300,000           210,000           300,000  ................           +90,000
Operations and training.......................................           175,560           171,820           228,642           +53,082           +56,822
Assistance to small shipyards.................................            10,000  ................            10,000  ................           +10,000
Ship disposal.................................................            34,000             9,000             9,000           -25,000  ................
 
Maritime Guaranteed Loan (Title XI) Program Account:
    Administrative expenses...................................             3,000  ................            30,000           +27,000           +30,000
                                                               -----------------------------------------------------------------------------------------
      Total, Maritime Administration..........................           522,560           390,820           577,642           +55,082          +186,822
                                                               =========================================================================================
    Pipeline and Hazardous Materials Safety Administration
 
Operational expenses:
    General fund..............................................            22,500            20,960            23,000              +500            +2,040
 
Hazardous materials safety:
    General fund..............................................            57,000            55,513            59,000            +2,000            +3,487
 
Pipeline Safety:
    Pipeline Safety Fund......................................           128,000           124,263           131,000            +3,000            +6,737
    Oil Spill Liability Trust Fund............................            20,288            22,081            23,000            +2,712              +919
    Underground Natural Gas Storage Facility Safety Fund......             8,000             8,000             8,000  ................  ................
                                                               -----------------------------------------------------------------------------------------
      Subtotal................................................           156,288           154,344           162,000            +5,712            +7,656
                                                               -----------------------------------------------------------------------------------------
      Subtotal, Pipeline and Hazardous Materials Safety                  235,788           230,817           244,000            +8,212           +13,183
       Administration.........................................
 
Pipeline safety user fees.....................................          -128,000          -124,263          -131,000            -3,000            -6,737
Underground Natural Gas Storage Facility Safety Fund user fee.            -8,000            -8,000            -8,000  ................  ................
 
Emergency preparedness grants:
    Limitation on emergency preparedness fund.................          (28,318)          (28,318)          (28,318)  ................  ................
                                                               -----------------------------------------------------------------------------------------
      Total, Pipeline and Hazardous Materials Safety                      99,788            98,554           105,000            +5,212            +6,446
       Administration.........................................
                                                               =========================================================================================
                  Office of Inspector General
 
Salaries and expenses.........................................            90,152            87,306            92,100            +1,948            +4,794
Extending the availability of certain payments (Sec. 186 (1)).  ................             2,000  ................  ................            -2,000
                                                               =========================================================================================
      Total, title I, Department of Transportation............        18,487,487        16,347,839        19,465,641          +978,154        +3,117,802
          Appropriations......................................      (19,344,487)      (16,379,039)      (19,583,357)        (+238,870)      (+3,204,318)
          Rescissions.........................................  ................         (-31,200)  ................  ................         (+31,200)
          Rescissions of contract authority...................        (-857,000)  ................        (-117,716)        (+739,284)        (-117,716)
      Limitations on obligations..............................      (57,725,278)      (58,721,994)      (59,058,994)      (+1,333,716)        (+337,000)
      Total budgetary resources...............................      (76,212,765)      (75,069,833)      (78,524,635)      (+2,311,870)      (+3,454,802)
                                                               =========================================================================================
     TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
                 Management and Administration
 
Executive Offices.............................................            14,000            14,708            15,645            +1,645              +937
Administration Support Offices................................           517,647           517,803           520,190            +2,543            +2,387
 
Program Office Salaries and Expenses:
    Public and Indian Housing.................................           216,000           216,633           222,000            +6,000            +5,367
    Community Planning and Development........................           110,000           107,554           108,300            -1,700              +746
    Housing...................................................           392,000           365,829           383,000            -9,000           +17,171
    Policy Development and Research...........................            24,000            24,065            25,400            +1,400            +1,335
    Fair Housing and Equal Opportunity........................            72,000            69,808            72,400              +400            +2,592
    Office of Lead Hazard Control and Healthy Homes...........             9,353             7,600             8,200            -1,153              +600
                                                               -----------------------------------------------------------------------------------------
      Subtotal................................................           823,353           791,489           819,300            -4,053           +27,811
                                                               -----------------------------------------------------------------------------------------
      Total, Management and Administration....................         1,355,000         1,324,000         1,355,135              +135           +31,135
                                                               =========================================================================================
                   Public and Indian Housing
 
Tenant-based rental assistance:
    Renewals..................................................        18,355,000        17,583,826        19,370,000        +1,015,000        +1,786,174
    Tenant protection vouchers................................           110,000            60,000            75,000           -35,000           +15,000
    Administrative fees.......................................         1,650,000         1,550,000         1,725,000           +75,000          +175,000
    Sec. 811 mainstream voucher renewals......................           120,000           107,074           130,120           +10,120           +23,046
    Tribal veterans affairs supportive housing renewals.......             7,000             7,000             5,000            -2,000            -2,000
    Veterans affairs supportive housing.......................            40,000  ................            40,000  ................           +40,000
    Incremental family unification vouchers...................            10,000  ................            20,000           +10,000           +20,000
    PHA Modernization.........................................  ................            10,000  ................  ................           -10,000
                                                               -----------------------------------------------------------------------------------------
      Subtotal (available this fiscal year)...................        20,292,000        19,317,900        21,365,120        +1,073,120        +2,047,220
 
    Advance appropriations....................................         4,000,000         4,000,000         4,000,000  ................  ................
    Less appropriations from prior year advances..............        -4,000,000        -4,000,000        -4,000,000  ................  ................
                                                               -----------------------------------------------------------------------------------------
      Total, Tenant-based rental assistance appropriated in           20,292,000        19,317,900        21,365,120        +1,073,120        +2,047,220
       this bill..............................................
                                                               =========================================================================================
Public Housing Capital Fund...................................         1,941,500           628,000         1,945,000            +3,500        +1,317,000
Public Housing Operating Fund.................................         4,400,000         3,900,000         4,500,000          +100,000          +600,000
Choice neighborhoods..........................................           137,500  ................            50,000           -87,500           +50,000
Family self-sufficiency.......................................            75,000            75,000            75,000  ................  ................
Native American Housing Block Grants..........................           654,000           600,000           655,000            +1,000           +55,000
Indian Housing Loan Guarantee Fund Program Account............             7,227  ................             1,000            -6,227            +1,000
    (Limitation on guaranteed loans)..........................       (1,762,683)  ................         (270,270)      (-1,492,413)        (+270,270)
    Spending of prior year balances...........................  ................  ................  ................  ................  ................
Native Hawaiian Housing Block Grant...........................             2,000  ................             1,000            -1,000            +1,000
                                                               -----------------------------------------------------------------------------------------
      Total, Public and Indian Housing........................        27,509,227        24,520,900        28,592,120        +1,082,893        +4,071,220
                                                               =========================================================================================
              Community Planning and Development
 
Housing opportunities for persons with AIDS...................           356,000           330,000           330,000           -26,000  ................
 
Community Development Fund:
    CDBG formula..............................................         3,000,000  ................         3,000,000  ................        +3,000,000
    Indian CDBG...............................................            60,000  ................            60,000  ................           +60,000
                                                               -----------------------------------------------------------------------------------------
      Subtotal................................................         3,060,000  ................         3,060,000  ................        +3,060,000
 
Community development loan guarantees (section 108):
    (Limitation on guaranteed loans)..........................         (300,000)  ................         (300,000)  ................        (+300,000)
HOME Investment Partnerships Program..........................           950,000  ................           950,000  ................          +950,000
Self-help and Assisted Homeownership Opportunity Program......            54,000  ................            54,000  ................           +54,000
Homeless Assistance Grants....................................         2,383,000         2,250,000         2,456,000           +73,000          +206,000
                                                               -----------------------------------------------------------------------------------------
      Total, Community Planning and Development...............         6,803,000         2,580,000         6,850,000           +47,000        +4,270,000
                                                               =========================================================================================
                       Housing Programs
 
Rental assistance demonstration...............................  ................  ................             4,000            +4,000            +4,000
 
Project-based rental assistance:
    Renewals..................................................        10,581,000        10,466,100        11,222,000          +641,000          +755,900
    Contract administrators...................................           235,000           285,000           285,000           +50,000  ................
                                                               -----------------------------------------------------------------------------------------
      Subtotal (available this fiscal year)...................        10,816,000        10,751,100        11,507,000          +691,000          +755,900
 
    Advance appropriations....................................           400,000           400,000           400,000  ................  ................
    Less appropriations from prior year advances..............          -400,000          -400,000          -400,000  ................  ................
                                                               -----------------------------------------------------------------------------------------
      Total, Project-based rental assistance appropriated in          10,816,000        10,751,100        11,507,000          +691,000          +755,900
       this bill..............................................
                                                               =========================================================================================
Housing for the elderly.......................................           502,400           510,000           573,000           +70,600           +63,000
Housing for persons with disabilities.........................           146,200           121,300           147,000              +800           +25,700
Housing counseling assistance.................................            55,000            47,000            47,000            -8,000  ................
Rental housing assistance.....................................            20,000            14,000            14,000            -6,000  ................
Manufactured Housing Fees Trust Fund..........................            10,500            11,000            11,000              +500  ................
    Offsetting collections....................................           -10,500           -11,000           -11,000              -500  ................
                                                               -----------------------------------------------------------------------------------------
      Total, Housing Programs.................................        11,539,600        11,443,400        12,292,000          +752,400          +848,600
                                                               =========================================================================================
                Federal Housing Administration
 
Mutual Mortgage Insurance Program Account:
    (Limitation on guaranteed loans)..........................     (400,000,000)     (400,000,000)     (400,000,000)  ................  ................
    (Limitation on direct loans)..............................           (5,000)           (5,000)           (5,000)  ................  ................
    Offsetting receipts.......................................        -7,437,000        -7,392,000        -7,392,000           +45,000  ................
    Proposed offsetting receipts (HECM).......................           -97,000           300,000  ................           +97,000          -300,000
    Additional offsetting receipts (Sec. 238).................  ................           -30,000  ................  ................           +30,000
    Administrative contract expenses..........................           130,000           160,000           130,000  ................           -30,000
 
General and Special Risk Program Account:
    (Limitation on guaranteed loans)..........................      (30,000,000)      (30,000,000)      (30,000,000)  ................  ................
    (Limitation on direct loans)..............................           (5,000)           (5,000)           (5,000)  ................  ................
    Offsetting receipts.......................................          -464,000          -619,000          -619,000          -155,000  ................
                                                               -----------------------------------------------------------------------------------------
      Total, Federal Housing Administration...................        -7,868,000        -7,581,000        -7,881,000           -13,000          -300,000
                                                               =========================================================================================
           Government National Mortgage Association
 
Guarantees of Mortgage-backed Securities Loan Guarantee
 Program Account:
    (Limitation on guaranteed loans)..........................     (500,000,000)     (500,000,000)     (500,000,000)  ................  ................
    Administrative expenses...................................            23,000            25,400            24,000            +1,000            -1,400
    Offsetting receipts.......................................          -101,000          -116,000          -116,000           -15,000  ................
    Offsetting receipts.......................................        -1,102,000        -1,560,000        -1,560,000          -458,000  ................
    Proposed offsetting receipts (HECM).......................           -21,000            60,000  ................           +21,000           -60,000
    Additional contract expenses..............................             1,000             1,000             1,000  ................  ................
                                                               -----------------------------------------------------------------------------------------
      Total, Gov't National Mortgage Association..............        -1,200,000        -1,589,600        -1,651,000          -451,000           -61,400
                                                               =========================================================================================
                Policy Development and Research
 
Research and technology.......................................            89,000            85,000            85,000            -4,000  ................
 
              Fair Housing and Equal Opportunity
 
Fair housing activities.......................................            65,300            65,300            65,300  ................  ................
 
        Office of Lead Hazard Control and Healthy Homes
 
Lead hazard reduction.........................................           145,000           130,000           160,000           +15,000           +30,000
Information Technology Fund...................................           257,000           250,000           250,000            -7,000  ................
Office of Inspector General...................................           128,082           126,000           126,000            -2,082  ................
                                                               =========================================================================================
      Total, title II, Department of Housing and Urban                38,823,209        31,354,000        40,243,555        +1,420,346        +8,889,555
       Development............................................
          Appropriations......................................      (43,655,709)      (36,322,000)      (45,541,555)      (+1,885,846)      (+9,219,555)
          Advance appropriations..............................       (4,400,000)       (4,400,000)       (4,400,000)  ................  ................
          Offsetting receipts.................................      (-9,222,000)      (-9,357,000)      (-9,687,000)        (-465,000)        (-330,000)
          Offsetting collections..............................         (-10,500)         (-11,000)         (-11,000)            (-500)  ................
      (Limitation on direct loans)............................          (10,000)          (10,000)          (10,000)  ................  ................
      (Limitation on guaranteed loans)........................     (932,062,683)     (930,000,000)     (930,570,270)      (-1,492,413)        (+570,270)
                                                               =========================================================================================
             TITLE III--OTHER INDEPENDENT AGENCIES
 
Access Board..................................................             8,190             7,928             8,190  ................              +262
Federal Maritime Commission...................................            27,490            26,149            27,490  ................            +1,341
National Railroad Passenger Corporation Office of Inspector               23,274            23,274            23,274  ................  ................
 General......................................................
National Transportation Safety Board..........................           106,000           105,170           110,400            +4,400            +5,230
Neighborhood Reinvestment Corporation.........................           140,000            27,400           140,000  ................          +112,600
Surface Transportation Board..................................            37,000            37,100            37,100              +100  ................
    Offsetting collections....................................            -1,250            -1,250            -1,250  ................  ................
                                                               -----------------------------------------------------------------------------------------
      Subtotal................................................            35,750            35,850            35,850              +100  ................
 
United States Interagency Council on Homelessness.............             3,600               570             3,600  ................            +3,030
                                                               =========================================================================================
      Total, title III, Other Independent Agencies............           344,304           226,341           348,804            +4,500          +122,463
                                                               =========================================================================================
 
            TITLE IV--GENERAL PROVISIONS--THIS ACT
 
Unobligated balances (Sec. 417) (rescission)..................            -4,000  ................  ................            +4,000  ................
CDBG Disaster Relief (C.R. #2, Public Law 114-254) (emergency)           393,000  ................  ................          -393,000  ................
    (Disaster relief category)................................         1,461,000  ................  ................        -1,461,000  ................
FHWA Emergency Relief (C.R. #2, Public Law 114-254)                    1,004,017  ................  ................        -1,004,017  ................
 (emergency)..................................................
Emergency Relief Program (Sec 419) (emergency)................           528,000  ................  ................          -528,000  ................
CDBG Disaster Relief (Sec 420) (emergency)....................           400,000  ................  ................          -400,000  ................
                                                               =========================================================================================
      Total, title IV, General Provisions This Act............         3,782,017  ................  ................        -3,782,017  ................
          Appropriations......................................  ................  ................  ................  ................  ................
          Emergency appropriations............................       (2,325,017)  ................  ................      (-2,325,017)  ................
          Disaster relief category............................       (1,461,000)  ................  ................      (-1,461,000)  ................
          Rescissions.........................................          (-4,000)  ................  ................          (+4,000)  ................
                                                               =========================================================================================
      Grand total.............................................        61,437,017        47,928,180        60,058,000        -1,379,017       +12,129,820
          Appropriations......................................      (63,345,750)      (52,928,630)      (65,474,966)      (+2,129,216)     (+12,546,336)
          Emergency appropriations............................       (2,325,017)  ................  ................      (-2,325,017)  ................
          Rescissions.........................................          (-4,000)         (-31,200)  ................          (+4,000)         (+31,200)
          Rescissions of contract authority...................        (-857,000)  ................        (-117,716)        (+739,284)        (-117,716)
          Advance appropriations..............................       (4,400,000)       (4,400,000)       (4,400,000)  ................  ................
          Disaster relief category............................       (1,461,000)  ................  ................      (-1,461,000)  ................
          Offsetting receipts.................................      (-9,222,000)      (-9,357,000)      (-9,687,000)        (-465,000)        (-330,000)
          Offsetting collections..............................         (-11,750)         (-12,250)         (-12,250)            (-500)  ................
      (Limitation on obligations).............................      (57,725,278)      (58,721,994)      (59,058,994)      (+1,333,716)        (+337,000)
            Total budgetary resources.........................     (119,162,295)     (106,650,174)     (119,116,994)         (-45,301)     (+12,466,820)
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