Calendar No. 520 114THCONGRESS REPORT 2d Session " SENATE ! 114–280 FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2017 JUNE16, 2016.—Ordered to be printed Mr. BOOZMAN of Arkansas, from the Committee on Appropriations, submitted the following REPORT [To accompany S. 3067] The Committee on Appropriations reports an original bill (S. 3067) making appropriations for financial services and general gov- ernment for the fiscal year ending September 30, 2017, and for other purposes, reports favorably thereon without amendment and recommends that the bill do pass. Amounts of new budget (obligational) authority for fiscal year 2017 Total of bill as reported to the Senate .................... $44,361,260,000 Amount of 2016 appropriations ............................... 44,830,934,000 Amount of 2017 budget estimate ............................ 46,542,785,000 Bill as recommended to Senate compared to— 2016 appropriations .......................................... ¥469,674,000 2017 budget estimate ........................................ ¥2,181,525,000 20–422 PDF CONTENTS Page Overview and Summary of the Bill ........................................................................ 5 Program, Project, and Activity ............................................................................... 5 Reprogramming Guidelines .................................................................................... 5 Relationship With Budget Offices .......................................................................... 6 Congressional Budget Justifications ...................................................................... 7 Agency Reports ........................................................................................................ 7 Antideficiency Act Violations .................................................................................. 8 Other Matters and Directives ................................................................................. 8 Title I: Department of the Treasury: Departmental Offices ....................................................................................... 10 Cybersecurity Enhancement Account ............................................................. 14 Department-wide Systems and Capital Investments Programs .......................... 15 Office of Inspector General ..................................................................................... 15 Treasury Inspector General for Tax Administration ............................................ 17 Special Inspector General for the Troubled Asset Relief Program ...................... 19 Financial Crimes Enforcement Network ........................................................ 19 Treasury Forfeiture Fund ................................................................................ 21 Bureau of the Fiscal Service ............................................................................ 21 Alcohol and Tobacco Tax and Trade Bureau .................................................. 22 Treasury Franchise Fund ................................................................................ 23 United States Mint ........................................................................................... 23 Community Development Financial Institutions Fund ................................. 24 Bureau of Engraving and Printing ................................................................. 26 Internal Revenue Service ................................................................................. 27 Taxpayer Services ..................................................................................... 30 Enforcement ............................................................................................... 35 Operations Support ................................................................................... 39 Business Systems Modernization ............................................................. 40 Administrative Provisions—Internal Revenue Service .......................... 41 Administrative Provisions—Department of the Treasury ............................. 42 Title II: Executive Office of the President and Funds Appropriated to the President: The White House .............................................................................................. 44 Executive Residence at the White House ....................................................... 45 White House Repair and Restoration ............................................................. 45 Council of Economic Advisers .......................................................................... 45 National Security Council and Homeland Security Council ......................... 46 Office of Administration ................................................................................... 46 Office of Management and Budget .................................................................. 47 Office of National Drug Control Policy ........................................................... 49 Federal Drug Control Programs: High Intensity Drug Trafficking Areas Program .................................... 50 Other Federal Drug Control Programs .................................................... 51 Unanticipated Needs ........................................................................................ 52 Presidential Transition Administrative Support ........................................... 52 Information Technology Oversight and Reform ............................................. 52 Special Assistance to the President ................................................................ 54 Official Residence of the Vice President ......................................................... 54 Administrative Provisions—Executive Office of the President and Funds Appropriated to the President ..................................................................... 55 Title III: The Judiciary: Supreme Court of the United States .............................................................. 56 Care of the Building and Grounds ........................................................... 57 United States Court of Appeals for the Federal Circuit ............................... 57 (2) 3 Page Title III—Continued United States Court of International Trade ................................................... 58 Courts of Appeals, District Courts, and Other Judicial Services ................. 58 Vaccine Injury Compensation Trust Fund .............................................. 59 Defender Services ...................................................................................... 59 Fees of Jurors and Commissioners .......................................................... 60 Court Security ........................................................................................... 60 Administrative Office of the United States Courts ........................................ 61 Federal Judicial Center .................................................................................... 62 United States Sentencing Commission ........................................................... 62 Administrative Provisions—The Judiciary ..................................................... 63 Title IV—District of Columbia: Federal Payments: Federal Funds ............................................................................................ 64 Federal Payment for Resident Tuition Support ...................................... 64 Federal Payment for Emergency Planning and Security Costs in the District of Columbia .............................................................................. 65 Federal Payment to the District of Columbia Courts ............................ 66 Federal Payment for Defender Services in District of Columbia Courts ..................................................................................................... 67 Federal Payment to the Court Services and Offender Supervision Agency for the District of Columbia ..................................................... 67 Federal Payment to the Public Defender Service for the District of Columbia ............................................................................................ 68 Federal Payment to the District of Columbia Water and Sewer Au- thority ..................................................................................................... 69 Federal Payment to the Criminal Justice Coordinating Council .......... 69 Federal Payment for Judicial Commissions ............................................ 70 Federal Payment for School Improvement .............................................. 70 Federal Payment for the D.C. National Guard ....................................... 71 Federal Payment for HIV/AIDS Prevention ............................................ 71 Federal Payment for Federal City Shelter .............................................. 71 District of Columbia Funds ............................................................................. 72 Title V—Independent Agencies: Administrative Conference of the United States ........................................... 74 Commodity Futures Trading Commission ...................................................... 74 Consumer Product Safety Commission ........................................................... 76 Election Assistance Commission ..................................................................... 77 Federal Communications Commission ............................................................ 78 Federal Deposit Insurance Corporation: Office of the Inspector General .... 82 Federal Election Commission .......................................................................... 82 Federal Labor Relations Authority ................................................................. 82 Federal Trade Commission .............................................................................. 83 General Services Administration .................................................................... 84 Harry S Truman Scholarship Foundation ...................................................... 91 Merit Systems Protection Board ..................................................................... 91 Morris K. Udall and Stewart L. Udall Foundation ....................................... 92 National Archives and Records Administration ............................................. 93 National Credit Union Administration ........................................................... 97 Office of Government Ethics ............................................................................ 98 Office of Personnel Management ..................................................................... 98 Office of Special Counsel .................................................................................. 102 Postal Regulatory Commission ........................................................................ 103 Privacy and Civil Liberties Oversight Board ................................................. 103 Securities and Exchange Commission ............................................................ 104 Selective Service System .................................................................................. 105 Small Business Administration ....................................................................... 106 United States Postal Service ........................................................................... 114 United States Tax Court .................................................................................. 115 Statement Concerning General Provisions ............................................................ 116 Title VI—General Provisions—This Act ................................................................ 117 Title VII—General Provisions—Governmentwide ................................................ 120 Title VIII—General Provisions—District of Columbia ......................................... 124 Compliance With Paragraph 7, Rule XVI of the Standing Rules of the Senate ................................................................................................................... 126 Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules of the Senate ................................................................................................................... 127 Compliance With Paragraph 12, Rule XXVI of the Standing Rules of the Senate ................................................................................................................... 128 4 Page Budgetary Impact of Bill ......................................................................................... 136 Comparative Statement of New Budget Authority ............................................... 137 OVERVIEW AND SUMMARY OF THE BILL The Financial Services and General Government appropriations bill provides funding for the Department of the Treasury, including the Internal Revenue Service; the Executive Office of the President; the Judiciary; the District of Columbia; and more than two dozen independent Federal agencies. The Committee recommends $44,361,260,000 in discretionary and mandatory appropriations. This represents a decrease of $469,674,000 below the fiscal year 2016 enacted level, and a de- crease of $2,181,525,000 below the budget request. Of the total, $22,551,810,000 is provided in discretionary appropriations, includ- ing $158,829,000 for the Small Business Administration Disaster Loans Program Account designated by Congress as disaster relief pursuant to Public Law 112–25. This discretionary amount is $2,205,525,000 below the budget request of $24,757,335,000. Man- datory appropriations less scorekeeping adjustments total $21,809,450,000. PROGRAM, PROJECT, AND ACTIVITY During fiscal year 2017, for the purposes of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99–177), as amended, with respect to appropriations contained in the accom- panying bill, the terms ‘‘program, project, and activity’’ [PPA] shall mean any item for which a dollar amount is contained in appro- priations acts (including joint resolutions providing continuing ap- propriations) or accompanying reports of the House and Senate Committees on Appropriations, or accompanying conference reports and joint explanatory statements of the committee of conference. REPROGRAMMING GUIDELINES The Committee includes a provision (section 608) establishing the authority of agencies to reprogram funds and the limitation on that authority. The provision specifically requires the advance ap- proval of the House and Senate Committees on Appropriations of any proposal to reprogram funds that: (1) creates a new program; (2) eliminates a program, project, or activity [PPA]; (3) increases funds or personnel for any PPA for which funds have been denied or restricted by the Congress; (4) proposes to redirect funds that were directed in such reports for a specific activity to a different purpose; (5) augments an existing PPA in excess of $5,000,000 or 10 percent, whichever is less; (6) reduces an existing PPA by $5,000,000 or 10 percent, whichever is less; or (7) creates, reorga- nizes, or restructures offices differently than the congressional budget justifications or the table at the end of the Committee re- port, whichever is more detailed. (5) 6 The Committee retains the requirement that each agency submit an operating plan to the House and Senate Committees on Appro- priations not later than 60 days after enactment of this act to es- tablish the baseline for application of reprogramming and transfer authorities provided in this act. Specifically, each agency should provide a table for each appropriation with columns displaying the budget request; adjustments made by Congress; adjustments for re- scissions, if appropriate; and the fiscal year enacted level. The table shall delineate the appropriation both by object class and by PPA. The report must also identify items of special congressional inter- est. The Committee expects the agencies and bureaus to submit re- programming requests in a timely manner and to provide a thor- ough 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 re- quests 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 Com- mittee reminds agencies that reprogramming requests should be submitted only in the case of an unforeseeable emergency or a situ- ation that could not have been anticipated when formulating the budget request for the current fiscal year. Further, the Committee notes that when a Department or agency submits a reprogramming or transfer request to the Committees on Appropriations and does not receive identical responses from the House and the Senate, it is the responsibility of the Department or agency to reconcile the House and the Senate differences before proceeding, and if rec- onciliation is not possible, to consider the request to reprogram funds unapproved. RELATIONSHIP WITH BUDGET OFFICES Through the years, the Committee has channeled most of its in- quiries and requests for information and assistance through the budget offices of the various departments, agencies, offices, and commissions. The Committee has often pointed to the natural affin- ity and relationship between the budget offices and the Committee which makes such a relationship workable. The Committee reiter- ates its longstanding position that while the Committee reserves the right to call upon any office or officer in the departments, agen- cies, and commissions, the primary conjunction between the Com- mittee and these entities must be through the budget offices. To help ensure the Committee’s ability to perform its responsibilities, the Committee insists on having direct, unobstructed, and timely access to the budget offices and expects to be able to receive forth- right and complete responses from those offices and their employ- ees. The Committee expects timely agency compliance with mandated reporting requirements. The Committee directs all agencies from which reports are required to allow sufficient time to secure any necessary internal and external clearances of reports in order to satisfy congressional deadlines. The Committee strongly urges 7 agencies to alert the Committee as far as possible in advance of any expected slippage in meeting a report delivery due date. CONGRESSIONAL BUDGET JUSTIFICATIONS Budget justifications are prepared not for the use of the agency, but instead are the primary tool used by the House and Senate Committees on Appropriations to evaluate the resource require- ments and fiscal needs of agencies. The Committee is aware that the format and presentation of budget materials is largely left to the agency within presentation objectives set forth by OMB. How- ever, the Committee expects agencies to consult with the Commit- tees on Appropriations in advance regarding any plans to modify the format of agency budget documents to ensure that the data needed to make appropriate and meaningful funding decisions is provided. The Committee directs that justifications submitted with the fis- cal year 2018 budget requests by agencies funded under this act must contain the customary level of detailed data and explanatory statements to support the appropriations requests at the level of detail contained in the funding table included at the end of the re- port. Among other items, agencies shall provide a detailed discus- sion 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 ade- quate justification for funding and staffing changes for each indi- vidual office. Explanatory materials should compare programs, projects, and activities that are proposed for fiscal year 2018 to the fiscal year 2017 enacted level. The Committee includes a general provision requiring that agen- cies provide, as a component incorporated within their fiscal year 2018 budget justification materials submitted to the Committee, a separate table briefly describing the top management challenges for fiscal year 2017 as identified by the agency inspector general, along with an explanation of how the fiscal year 2018 budget re- quest addresses each such management challenge. The Committee is aware that the analytical materials required for review by the Committee are unique to each agency in this act. Therefore, the Committee expects that each agency will coordinate with the House and Senate Committees on Appropriations in ad- vance on its planned presentation for its budget justification mate- rials in support of the fiscal year 2018 budget request. AGENCY REPORTS As a measure to reduce costs and conserve paper, the Committee reminds agencies funded by this act that currently provide sepa- rate copies of periodic reports (such as Performance and Account- ability Reports) and correspondence to the chairs of the House and Senate Appropriations Committees and Subcommittees on Finan- cial Services and General Government, and also to the ranking members of the committees and subcommittees, to use a single cover letter jointly addressed to the chairs and ranking members of the Committee and subcommittee of both the House and the 8 Senate. To the greatest extent feasible, agencies should include in the cover letter a reference or hyperlink to facilitate electronic ac- cess to the report and provide the documents by electronic mail de- livery. Consolidating addressees and remitting a copy of the letter and attachments to each recipient should expedite agency proc- essing. This should also help ensure that consistent information is conveyed concurrently to the majority and minority committee of- fices of both chambers of Congress. ANTIDEFICIENCY ACT VIOLATIONS The Antideficiency Act is a cornerstone of Federal fiscal law. It forbids agencies from exceeding an appropriation, apportionment, or allotment; from obligating funds before Congress has appro- priated them; and from accepting voluntary services or employing personal services exceeding that authorized by law. These prohibi- tions ensure that agencies operate within amounts that Congress has appropriated and, therefore, that agency activities are carried out in accordance with the will of the people as expressed through Congress. The Antideficiency Act requires agencies to immediately report violations of the act to Congress and to the President and to trans- mit a copy of each report to the Comptroller General. These reports must include all relevant facts pertaining to the violation and a statement of action taken. These reports provide information essen- tial to the Committee as it performs oversight and as it considers agency funding levels. Therefore, the Committee directs any agency funded by this Act to concurrently transmit to the Subcommittee on Financial Services and General Government a copy of any Antideficiency Act violation report submitted pursuant to 31 U.S.C. 1351 or 31 U.S.C. 1517(b). OTHER MATTERS AND DIRECTIVES Cybersecurity.—Cybersecurity remains one of the most signifi- cant challenges facing the Nation. Recent events have dem- onstrated that the Federal Government faces an array of cyber- based threats to its systems and data and the results have proven disastrous to millions of Americans. The Committee remains con- cerned that billions of Federal dollars are spent each fiscal year yet there is no guarantee of security for Americans. The Committee stresses the importance of the role of the Federal CIO in protecting Federal assets and information and strengthening the Federal Gov- ernment’s overall cybersecurity infrastructure. The Committee is committed to conducting oversight of agencies within its jurisdic- tion to ensure that funding is being spent wisely and effectively while ensuring that stronger cyber controls are in place. The Com- mittee encourages the Administration and agencies to enhance their cyber strategies and allocate resources accordingly to combat cybercrime and data breaches. Contracts and Awards.—Agencies funded by this act should re- quire that all contracts within their purview that provide award fees link such fees to successful acquisition outcomes, specifying the terms of cost, schedule, and performance. Agencies funded by this act should not pay awards or incentive fees for contractor per- 9 formance that has been judged to be below satisfactory perform- ance or performance that does not meet the basic requirements of a contract. Advertising Transparency.—The Committee is aware that agen- cies funded through this bill do a variety of different types of ad- vertising. The Committee directs the agencies to clearly state with- in the text, audio, or video used for advertising or education pur- poses, including emails or advertising/posting on the Internet, that the communications are printed, published or produced and dis- seminated at U.S. taxpayer expense. TITLE I DEPARTMENT OF THE TREASURY DEPARTMENTAL OFFICES SALARIES AND EXPENSES Appropriations, 2016 ............................................................................. $222,500,000 Budget estimate, 2017 ........................................................................... 334,376,000 Committee recommendation ................................................................. 347,376,000 PROGRAM DESCRIPTION The Secretary of the Treasury has the primary role in formu- lating and managing the domestic and international tax and finan- cial policies of the Federal Government. The Secretary’s respon- sibilities funded by the Departmental Offices Salaries and Ex- penses appropriation include: recommending and implementing U.S. domestic and international economic and tax policy; formu- lating fiscal policy; governing the fiscal operations of the Govern- ment; executing the Nation’s financial sanction policies; disrupting and dismantling terrorist financial infrastructure; protecting the United States and the international financial system from terrorist financing, money laundering, and other financial crimes; managing the public debt; managing international development policy; rep- resenting the United States on international monetary, trade, and investment issues; overseeing Department of the Treasury overseas operations; and directing the administrative operations of the De- partment of the Treasury. The majority of the Salaries and Ex- penses appropriation provides resources for policy formulation and implementation in the areas of domestic and international finance, terrorist financing and financial crimes, tax, economic, trade, finan- cial operations and general fiscal policy. This appropriation also provides resources to support the Secretary, policy components, and departmental administrative policies in financial and personnel management, procurement operations, and information systems and telecommunications. COMMITTEE RECOMMENDATION The Committee recommends $347,376,000 for the Departmental Offices account of the Department of the Treasury for fiscal year 2017. The funding recommendations are made based on informa- tion included in the budget justification. The Committee recommends $123,000,000 within the Depart- mental Offices account for the Office of Terrorism and Financial In- telligence in order to support safeguarding financial systems against illicit use and combating rogue nations, terrorist facilitators, money launderers, proliferators of weapons of mass de- struction, and other national security threats. (10)