[House Document 111-92]
[From the U.S. Government Publishing Office]




111th Congress, 2nd Session - - - - - - - - - - - - - House Document
111-92
 
          A REQUEST FOR BUDGET AMENDMENTS FOR FISCAL YEAR 2011

                               __________

                             COMMUNICATION

                                  from

               THE  PRESIDENT  OF  THE  UNITED  STATES

                              transmitting

 A REQUEST FOR BUDGET AMENDMENTS FOR FISCAL YEAR 2010 PROPOSALS IN THE 
    FISCAL YEAR 2011 BUDGET FOR THE DEPARTMENT OF HOMELAND SECURITY






  February 22, 2010.--Referred to the Committee on Appropriations and 
                         ordered to be printed
                                           The White House,
                                     Washington, February 12, 2010.
Hon. Nancy Pelosi,
Speaker of the House of Representatives,
Washington, DC.
    Dear Madam Speaker: I ask the Congress to consider the 
enclosed amendments to Fiscal Year (FY) 2010 proposals in my FY 
2011 Budget.
    Included is an amendment for the Department of Homeland 
Security, Disaster Relief, for the continued response and 
recovery efforts associated with prior large events, such as 
Hurricane Katrina and the Midwest Floods. The proposed total 
for FY 2010 in my FY 2011 Budget would increase by $1.5 billion 
as a result of this amendment.
    Also included are amendments to general provisions that 
would provide authorization and funding for FY 2010 to 
implement the settlement of a case involving the management of 
individual Indian trust accounts related to Indian lands and to 
settle claims of prior discrimination brought by black farmers 
against the Department of Agriculture.
    The details of these requests are set forth in the enclosed 
letter from the Director of the Office of Management and 
Budget.

            Sincerely,
                                                      Barack Obama.
    Enclosure.
             [Estimate No. 2, 111th Congress, 2nd Session]

                 Executive Office of the President,
                           Office of Management and Budget,
                                 Washington, DC, February 12, 2010.
The President,
The White House.
    Submitted for your consideration are amendments to the 
Fiscal Year (FY) 2010 proposals in your FY 2011 Budget. 
Included is an amendment for the Department of Homeland 
Security, Disaster Relief. Also included are amendments to 
general provisions that would provide authorization and funding 
for FY 2010 to implement the settlement of a case involving the 
management of individual Indian trust accounts related to 
Indian lands and to settle claims of prior discrimination 
brought by black farmers against the Department of Agriculture. 
These amendments are described below and in more detail in the 
enclosures.
    The proposed Budget totals for FY 2010 would increase by 
$1.5 billion as a result of the following amendment:
     Department of Homeland Security, Disaster Relief. 
This amendment would provide an additional $1.5 billion and 
would increase the pending $3.6 billion FY 2010 supplemental 
request included in the FY 2011 Budget to $5.1 billion. These 
supplemental funds are needed before March 2010 for the 
continued response and recovery efforts associated with prior 
large events, such as Hurricane Katrina and the Midwest Floods. 
This supplemental request is also being re-transmitted to 
underscore the importance of acting in a timely fashion.
    Two FY 2010 proposals were included as mandatory requests 
in the FY 2011 Budget, with an expectation that authorization 
language would be transmitted at a later date. However, at this 
time there are no other appropriate legislative vehicles 
available to allow for expeditious consideration of these 
proposals. Therefore, they are now being requested as changes 
in mandatory programs and as such, are being transmitted to the 
Appropriations Committee for their disposition.
     General Provision, Sec. 1: Cobell v. Salazar. This 
amendment would provide authorization and funding to implement 
the settlement of Cobell v. Salazar, a case involving the 
management of individual Indian trust accounts related to 
Indian lands. Pending congressional action and final approval 
by the Court, $3.412 billion will be expended from the 
Department of the Treasury's Claims, Judgments, and Relief Acts 
account in FY 2010. Within this total, the settlement agreement 
provides that $2.0 billion from the appropriation to this 
account will be transferred to a new Trust Land Consolidation 
Fund in the Department of the Interior for the buy-back and 
consolidation of fractionated land interests and other 
activities.
     General Provision, Sec. 2: Discrimination Claims 
Settlement. This amendment would provide authorization and FY 
2010 funding of $1.150 billion to settle claims of prior 
discrimination brought by black farmers against the Department 
of Agriculture that were previously addressed by section 14012 
of Public Law 110-246, the Food Conservation and Energy Act of 
2008.
Recommendation
    I have carefully reviewed these requests and am satisfied 
that they are necessary at this time. Therefore, I join the 
heads of the affected agencies in recommending you transmit 
these proposals to the Congress.
            Sincerely,
                                           Peter R. Orszag,
                                                          Director.
    Enclosures.
          FY 2010 Supplemental Proposal in the FY 2011 Budget


                    DEPARTMENT OF HOMELAND SECURITY


                  Federal Emergency Management Agency


                            DISASTER RELIEF

FY 2011 Budget Appendix Page: 1362
FY 2010 Pending Supplemental Request: $3,600,000,000
Proposed Amendment: $1,500,000,000
FY 2010 Revised Supplemental Request: $5,100,000,000

    (In the appropriations language under the above heading, 
delete ``$3,600,000,000'' and substitute $5,100,000,000.)
    This amendment would provide an additional $1.5 billion for 
the Disaster Relief account and would increase the pending $3.6 
billion FY 2010 supplemental request included in the FY 2011 
Budget to $5.1 billion.
    This request is submitted to: (1) reiterate the need to 
provide the proposed funding before March 2010, and underscore 
the Administration's support for this proposal; and (2) request 
an additional $1.5 billion in anticipation of arbitration panel 
decisions likely to impact the Disaster Relief Fund in a 
previously unexpected manner. This proposal provides additional 
funding for the continued response and recovery efforts 
associated with prior large events, such as Hurricane Katrina 
and the Midwest Floods.
    Through the Disaster Relief Fund, the Federal Emergency 
Management Agency provides a significant portion of the total 
Federal response to Presidentially-declared major disasters and 
emergencies. Primary assistance programs include Federal 
assistance to individuals and households, public assistance, 
and hazard mitigation assistance, which includes the repair and 
reconstruction of State, local, and nonprofit infrastructure.
                 FY 2010 Change in a Mandatory Program


                      GENERAL PROVISIONS--THIS ACT

FY 2011 Budget Appendix Page: 1366
FY 2010 Pending Request: $3,412,000,000
Proposed Amendment:--
Revised Request: $3,412,000,000

    (In the appropriations language, insert the above new 
heading and the following new language directly following 
section 2 of the ``General Provisions'' that appear on page 
1365:)
    Sec. 1. The Individual Indian Money Account Litigation 
Settlement Act of 2010.
    (a) Short Title.--This section may be cited as the 
``Individual Indian Money Account Litigation Settlement Act of 
2010''.
    (b) Definitions.--In this section:
          (1) Amended complaint.--The term ``Amended 
        Complaint'' means the Amended Complaint attached to the 
        Settlement.
          (2) Land consolidation program.--The term ``Land 
        Consolidation Program'' means a program conducted in 
        accordance with the Settlement and the Indian Land 
        Consolidation Act (25 U.S.C. 2201 et seq.) under which 
        the Secretary may purchase fractionated interests in 
        trust or restricted land.
          (3) Litigation.--The term ``Litigation'' means the 
        case entitled Elouise Cobell et al. v. Ken Salazar et 
        al., United States District Court, District of 
        Columbia, Civil Action No. 96-1285 (JR).
          (4) Plaintiff.--The term ``Plaintiff'' means a member 
        of any class certified in the Litigation.
          (5) Secretary.--The term ``Secretary'' means the 
        Secretary of the Interior.
          (6) Settlement.--The term ``Settlement'' means the 
        Class Action Settlement Agreement dated December 7, 
        2009, in the Litigation.
          (7) Trust administration class.--The term ``Trust 
        Administration Class'' means the Trust Administration 
        Class as defined in the Settlement.
    (c) Purpose.--The purpose of this section is to authorize 
the Settlement.
    (d) Authorization.--The Settlement is authorized, ratified, 
and confirmed.
    (e) Jurisdictional provisions.--
          (1) In general.--Notwithstanding the limitation on 
        jurisdiction of district courts contained in section 
        1346(a)(2) of title 28, United States Code, the United 
        States District Court for the District of Columbia 
        shall have jurisdiction over the claims asserted in the 
        Amended Complaint for purposes of the Settlement.
          (2) Certification of trust administration class.--
                  (A) In general.--Notwithstanding the 
                requirements of the Federal Rules of Civil 
                Procedure, the court overseeing the Litigation 
                may certify the Trust Administration Class.
                  (B) Treatment.--On certification under sub-
                paragraph (A), the Trust Administration Class 
                shall be treated as a class under Federal Rule 
                of Civil Procedure 23(b)(3) for purposes of the 
                Settlement.
    (f) Accounting/Trust Administration Fund.--
          (1) In general.--Of the amounts appropriated by 
        section 1304 of title 31, United States Code, 
        $1,412,000,000 shall be deposited in the Accounting/
        Trust Administration Fund, in accordance with the 
        Settlement.
          (2) Conditions met.--The conditions described in 
        section 1304 of title 31, United States Code, shall be 
        considered to be met for purposes of paragraph (1).
    (g) Trust Land Consolidation.--
          (1) Trust land consolidation fund.--
                  (A) Establishment.--On final approval (as 
                defined in the Settlement) of the Settlement, 
                there shall be established in the Treasury of 
                the United States a fund, to be known as the 
                ``Trust Land Consolidation Fund''.
                  (B) Availability of amounts.--Amounts in the 
                Trust Land Consolidation Fund shall be made 
                available to the Secretary during the 10-year 
                period beginning on the date of final approval 
                of the Settlement--
                          (i) to conduct the Land Consolidation 
                        Program: and
                          (ii) for other costs specified in the 
                        Settlement.
                  (C) Deposits.--
                          (i) In general.--On final approval 
                        (as defined in the Settlement) of the 
                        Settlement, the Secretary of the 
                        Treasury shall deposit in the Trust 
                        Land Consolidation Fund $2,000,000,000 
                        of the amounts appropriated by section 
                        1304 of title 31, United States Code.
                          (ii) Conditions met.--The conditions 
                        described in section 1304 of title 31, 
                        United States Code, shall be considered 
                        to be met for purposes of clause (i).
                  (D) Transfers.--In a manner designed to 
                encourage participation in the Land 
                Consolidation Program, the Secretary may 
                transfer, at the discretion of the Secretary, 
                not more than $60,000,000 of amounts in the 
                Trust Land Consolidation Fund to the Indian 
                Education Scholarship Holding Fund established 
                under paragraph 2.
          (2) Indian education scholarship holding fund.--
                  (A) Establishment.--On the final approval (as 
                defined in the Settlement) of the Settlement, 
                there shall be established in the Treasury of 
                the United States a fund., to be known as the 
                ``Indian Education Scholarship Holding Fund''.
                  (B) Availability.--Notwithstanding any other 
                provision of law governing competition, public 
                notification, or Federal procurement or 
                assistance, amounts in the Indian Education 
                Scholarship Holding Fund shall be made 
                available, without further appropriation, to 
                the Secretary to contribute to an Indian 
                Education Scholarship Fund, as described in the 
                Settlement, to provide scholarships for Native 
                Americans.
          (3) Acquisition of trust or restricted land.--The 
        Secretary may acquire, at the discretion of the 
        Secretary and in accordance with the Land Consolidation 
        Program, any fractional interest in trust or restricted 
        land.
          (4) Treatment of unlocatable plaintiffs.--A Plaintiff 
        the whereabouts of whom are unknown and who, after 
        reasonable efforts by the Secretary, cannot be located 
        during the 5 year period beginning on the date of final 
        approval (as defined in the Settlement) of the 
        Settlement shall be considered to have accepted an 
        offer made pursuant to the Land Consolidation Program.
    (h) Taxation and Other Benefits.--
          (1) Internal revenue code.--For purposes of the 
        Internal Revenue Code of 1986, amounts received by an 
        individual Indian as a lump sum or a periodic payment 
        pursuant to the Settlement--
                  (A) shall not be included in gross income; 
                and
                  (B) shall not be taken into consideration for 
                purposes of applying any provision of the 
                Internal Revenue Code that takes into account 
                excludable income in computing adjusted gross 
                income or modified adjusted gross income, 
                including section 86 of that Code (relating to 
                Social Security and tier 1 railroad retirement 
                benefits).
          (2) Other benefits.--Notwithstanding any other 
        provision of law, amounts received by an individual 
        Indian as a lump sum or a periodic payment pursuant to 
        the Settlement shall not be treated for any household 
        member, during the 1-year period beginning on the date 
        of receipt--
                  (A) as income for the month during which the 
                amounts were received; or
                  (B) as a resource,
        for purposes of determining initial eligibility, 
        ongoing eligibility, or level of benefits under any 
        Federal or federally assisted program.
    This amendment proposes language for consideration by the 
Appropriations Committees to provide authorization and funding 
to implement the settlement of Cobell v. Salazar, a case 
involving the management of individual Indian trust accounts 
related to Indian lands. Following the enactment of this 
legislation and final approval of the settlement by the Court, 
$3.412 billion will be expended from this account in FY 2010.
    Under the terms of the settlement, $1.412 billion would be 
used to settle trust management and accounting issues. Each 
class member will receive $1,000 for his or her historical 
accounting claims and may receive additional funds related to 
trust management claims under a formula set forth in the 
settlement agreement. (Page 1032 of the FY 2011 Budget 
Appendix, Department of the Treasury chapter, provides further 
detail regarding implementation of this aspect of the 
settlement.)
    The settlement agreement also provides $2.0 billion from 
the Claims, Judgments, and Relief Acts account for a new Trust 
Land Consolidation Fund (Fund) for the buy-back and 
consolidation of fractionated land interests. The Fund will be 
used for purchases of fractionated interests in parcels of land 
from individual Indian landowners. The Fund covers 
administrative costs to undertake the process of acquiring 
fractionated interests and associated trust reform activities. 
The acquisition of fractionated interests is authorized under 
the Indian Land Consolidation Act Amendments of 2000 (Public 
Law 106-462), and the American Indian Probate Reform Act of 
2004 (Public Law 108-374). The proposed settlement provides 
additional authority for the acquisition of interests held by 
persons who cannot be located after engaging in extensive 
efforts to notify them and locate them for a five-year period. 
In addition to purchasing land interests and other trust reform 
initiatives, the Fund will also contribute up to $60 million 
for a scholarship fund for the benefit of educating American 
Indians and Alaska Natives. (Page 706 of the FY 2011 Budget 
Appendix, Department of the Interior chapter, provides further 
detail regarding implementation of this aspect of the 
settlement.)
    The FY 2011 Budget included this proposal as mandatory 
funding that would become available in FY 2010, consistent with 
the recent settlement agreement, dated December 7, 2009, and 
anticipated transmitting authorization language at a later 
date. However, at this time there are no other appropriate 
legislative vehicles available to allow for expeditious 
consideration of these necessary proposals. Therefore, it is 
now being requested as a change in a mandatory program to meet 
the settlement's legislation enactment deadline of February 28, 
2010.
                 FY 2010 Change in a Mandatory Program


                      GENERAL PROVISIONS--THIS ACT

FY 2011 Budget Appendix Page: 1366
FY 2010 Pending Request: $1,150,000,000
Proposed Amendment:--
Revised Request: $1,150,000,000

    (In the appropriations language under the above newly 
inserted heading, insert the following new section after the 
newly inserted section 1:)
    Sec. 2. (a) There is hereby appropriated to the Department 
of Agriculture, $1,150,000,000, to remain available until 
expended, to carry out the terms of a Settlement Agreement 
(``such Settlement Agreement'') executed in In re Black Farmers 
Discrimination Litigation, No. 08-511 (D.D.C.) that is approved 
by a court order that has become final and non-appealable, and 
that is comprehensive and provides for the final settlement of 
all remaining Pigford claims (``Pigford claims''), as defined 
in section 14012(a) of Public Law 110-246. The funds 
appropriated herein for such Settlement Agreement are in 
addition to the $100,000,000 in funds of the Commodity Credit 
Corporation (CCC) that section 14012 made available for the 
payment of Pigford claims and are available only after such CCC 
funds have been fully obligated. The use of the funds 
appropriated herein shall be subject to the express terms of 
such Settlement Agreement. If any of the funds appropriated 
herein are not used for carrying out such Settlement Agreement, 
such funds shall be returned to the Treasury and shall not be 
made available for any purpose related to section 14012, for 
any other settlement agreement executed in In re Black Farmers 
Discrimination Litigation, No. 08-511 (D.D.C.), or for any 
other purpose. If such Settlement Agreement is not executed and 
approved as provided above, then the sole funding available for 
Pigford claims shall be the $100,000,000 of funds of the CCC 
that section 14012 made available for the payment of Pigford 
claims.
    (b) Nothing in this section shall be construed as requiring 
the United States, any of its officers or agencies, or any 
other party to enter into such Settlement Agreement or any 
other settlement agreement.
    (c) Nothing in this section shall be construed as creating 
the basis for a Pigford claim.
    (d) Section 14012 of Public Law 110-246 is amended by 
striking subsections (e), (i)(2) and (j), and redesignating the 
remaining subsections accordingly.
    This amendment proposes language for consideration by the 
Appropriations Committees to settle claims of prior 
discrimination brought by black farmers against the Department 
of Agriculture that were previously addressed by section 14012 
of Public Law 110-246, the Food Conservation and Energy Act of 
2008. The proposal would provide funding for a court-approved 
settlement of litigation requiring the payment of valid claims 
pursuant to a privately managed settlement process. Upon 
enactment, the authority would permit the expeditious and 
judicious resolution of discrimination claims with minimal 
burden on the claimants and the Government.
    The FY 2011 Budget included this proposal as mandatory 
funding that would become available in FY 2010 and anticipated 
transmitting authorization language at a later date. However, 
at this time there are no other appropriate legislative 
vehicles available to allow for expeditious consideration of 
these necessary proposals. Therefore, it is now being requested 
as a change in a mandatory program.