S. 1034 (pcs) Making appropriations for the Departments of Veterans Affairs and Housing and Urban Development, and for sundry independent agencies, commissions, corporations, and offices for the fiscal year ending September 30, 1998, and for other purpose...

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to benefit the Colonias along the United States/Mexico border, 
including grants pursuant to section 306C of such Act; not to exceed 
$15,000,000 shall be for water systems for rural and native villages in 
Alaska pursuant to section 306D of such Act; not to exceed $15,000,000 
shall be for technical assistance grants for rural waste systems 
pursuant to section 306(a)(14) of such Act; and not to exceed 
$5,650,000 shall be for contracting with qualified national 
organizations for a circuit rider program to provide technical 
assistance for rural water systems: Provided further, That of the total 
amounts appropriated, not to exceed $32,163,600 shall be available 
through June 30, 1998, for empowerment zones and enterprise 
communities, as authorized by Public Law 103-66, of which $1,614,600 
shall be for rural community programs described in section 381E(d)(1) 
of such Act; of which $21,952,000 shall be for the rural utilities 
programs described in section 381E(d)(2) of such Act; of which 
$8,597,000 shall be for the rural business and cooperative development 
programs described in section 381E(d)(3) of such Act: Provided further, 
That any obligated and unobligated balances available for prior years 
for the ``Rural Water and Waste Disposal Grants,'' ``Rural Water and 
Waste Disposal Loans Program Account,'' ``Emergency Community Water 
Assistance Grants,'' ``Solid Waste Management Grants,'' the community 
facility grant program in the ``Rural Housing Assistance Program'' 
Account, ``Community Facility Loans Program Account,'' ``Rural Business 
Enterprise Grants,'' ``Rural Business and Industry Loans Program 
Account,'' and ``Local Technical Assistance and Planning Grants'' shall 
be transferred to and merged with this account.

                         rural housing service

              rural housing insurance fund program account

                     (including transfers of funds)

    For gross obligations for the principal amount of direct and 
guaranteed loans as authorized by title V of the Housing Act of 1949, 
as amended, to be available from funds in the rural housing insurance 
fund, as follows: $3,300,000,000 for loans to section 502 borrowers, as 
determined by the Secretary, of which $2,300,000,000 shall be for 
unsubsidized guaranteed loans; $30,000,000 for section 504 housing 
repair loans; $19,700,000 for section 538 guaranteed multi-family 
housing loans; $15,001,000 for section 514 farm labor housing; 
$128,640,000 for section 515 rental housing; $600,000 for section 524 
site loans; $25,004,000 for credit sales of acquired property; and 
$587,000 for section 523 self-help housing land development loans.
    For the cost of direct and guaranteed loans, including the cost of 
modifying loans, as defined in section 502 of the Congressional Budget 
Act of 1974, as follows: section 502 loans, $133,390,000, of which 
$5,290,000 shall be for unsubsidized guaranteed loans; section 504 
housing repair loans, $10,308,000; section 538 multi-family housing 
guaranteed loans, $1,200,000; section 514 farm labor housing, 
$7,388,000; section 515 rental housing, $68,745,000; credit sales of 
acquired property, $3,493,000; and section 523 self-help housing land 
development loans, $20,000.
    In addition, for administrative expenses necessary to carry out the 
direct and guaranteed loan programs, $354,785,000, which shall be 
transferred to and merged with the appropriation for ``Rural Housing 
Service, Salaries and Expenses''.

                       rental assistance program

    For rental assistance agreements entered into or renewed pursuant 
to the authority under section 521(a)(2) or agreements entered into in 
lieu of debt forgiveness or payments for eligible households as 
authorized by section 502(c)(5)(D) of the Housing Act of 1949, as 
amended, $541,397,000; and in addition such sums as may be necessary, 
as authorized by section 521 of the Act, to liquidate debt incurred 
prior to fiscal year 1992 to carry out the rental assistance program 
under section 521(a)(2) of the Act: Provided, That of this amount not 
more than $5,900,000 shall be available for debt forgiveness or 
payments for eligible households as authorized by section 502(c)(5)(D) 
of the Act, and not to exceed $10,000 per project for advances to 
nonprofit organizations or public agencies to cover direct costs (other 
than purchase price) incurred in purchasing projects pursuant to 
section 502(c)(5)(C) of the Act: Provided further, That agreements 
entered into or renewed during fiscal year 1998 shall be funded for a 
five-year period, although the life of any such agreement may be 
extended to fully utilize amounts obligated.

                  mutual and self-help housing grants

    For grants and contracts pursuant to section 523(b)(1)(A) of the 
Housing Act of 1949 (42 U.S.C. 1490c), $26,000,000, to remain available 
until expended (7 U.S.C. 2209b).

                 rural community fire protection grants

    For grants pursuant to section 7 of the Cooperative Forestry 
Assistance Act of 1978 (Public Law 95-313), $1,285,000 to fund up to 50 
percent of the cost of organizing, training, and equipping rural 
volunteer fire departments.

                    rural housing assistance grants

                     (including transfer of funds)

    For grants and contracts for housing for domestic farm labor, very 
low-income housing repair, supervisory and technical assistance, 
compensation for construction defects, and rural housing preservation 
made by the Rural Housing Service as authorized by 42 U.S.C. 1474, 
1479(c), 1486, 1490c, 1490e, and 1490m, $45,720,000, to remain 
available until expended: Provided, That any obligated and unobligated 
balances available from prior years in ``Rural Housing for Domestic 
Farm Labor,'' ``Supervisory and Technical Assistance Grants,'' ``Very 
Low-Income Housing Repair Grants,'' ``Compensation for Construction 
Defects,'' and ``Rural Housing Preservation Grants'' shall be 
transferred to and merged with this account: Provided further, That of 
the total amount appropriated, $1,200,000 shall be for empowerment 
zones and enterprise communities, as authorized by Public Law 103-66: 
Provided further, That if such funds are not obligated for empowerment 
zones and enterprise communities by June 30, 1998, they shall remain 
available for other authorized purposes under this head.

                         salaries and expenses

    For necessary expenses of the Rural Housing Service, including 
administering the programs authorized by the Consolidated Farm and 
Rural Development Act, as amended, title V of the Housing Act of 1949, 
as amended, and cooperative agreements, $58,804,000: Provided, That 
this appropriation shall be available for employment pursuant to the 
second sentence of 706(a) of the Organic Act of 1944, and not to exceed 
$520,000 may be used for employment under 5 U.S.C. 3109.

                   Rural Business-Cooperative Service

              Rural Development Loan Fund Program Account

                     (including transfers of funds)

    For the cost of direct loans, $19,200,000, as authorized by the 
Rural Development Loan Fund (42 U.S.C. 9812(a)): Provided, That such 
costs, including the cost of modifying such loans, shall be as defined 
in section 502 of the Congressional Budget Act of 1974: Provided 
further, That these funds are available to subsidize gross obligations 
for the principal amount of direct loans of $40,000,000: Provided 
further, That through June 30, 1998, of the total amount appropriated 
$3,618,750 shall be available for the cost of direct loans, for 
empowerment zones and enterprise communities, as authorized by title 
XIII of the Omnibus Budget Reconciliation Act of 1993, to subsidize 
gross obligations for the principal amount of direct loans, $7,500,000.
    In addition, for administrative expenses to carry out the direct 
loan programs, $3,482,000 shall be transferred to and merged with the 
appropriation for ``Salaries and Expenses''.

            rural economic development loans program account

                     (including transfers of funds)

    For the principal amount of direct loans, as authorized under 
section 313 of the Rural Electrification Act, as amended, for the 
purpose of promoting rural economic development and job creation 
projects, $12,865,000.
    For the cost of direct loans, including the cost of modifying loans 
as defined in section 502 of the Congressional Budget Act of 1974, 
$3,076,000.

 alternative agricultural research and commercialization revolving fund

    For necessary expenses to carry out the Alternative Agricultural 
Research and Commercialization Act of 1990 (7 U.S.C. 5901-5908), 
$10,000,000 is appropriated to the alternative agricultural research 
and commercialization corporation revolving fund.

                  rural cooperative development grants

    For rural cooperative development grants authorized under section 
310B(e) of the Consolidated Farm and Rural Development Act, as amended 
(7 U.S.C. 1932), $3,000,000, of which up to $1,500,000 may be available 
for cooperative agreements for appropriate technology transfer for 
rural areas program.

                         Salaries and Expenses

    For necessary expenses of the Rural Business-Cooperative Service, 
including administering the programs authorized by the Consolidated 
Farm and Rural Development Act, as amended; section 1323 of the Food 
Security Act of 1985; the Cooperative Marketing Act of 1926; for 
activities relating to the marketing aspects of cooperatives, including 
economic research findings, as authorized by the Agricultural Marketing 
Act of 1946; for activities with institutions concerning the 
development and operation of agricultural cooperatives; and cooperative 
agreements; $25,680,000: Provided, That this appropriation shall be 
available for employment pursuant to the second sentence of 706(a) of 
the Organic Act of 1944, and not to exceed $260,000 may be used for 
employment under 5 U.S.C. 3109.

                        Rural Utilities Service

   rural electrification and telecommunications loans program account

                     (including transfers of funds)

    Insured loans pursuant to the authority of section 305 of the Rural 
Electrification Act of 1936, as amended (7 U.S.C. 935), shall be made 
as follows: 5 percent rural electrification loans, $125,000,000; 5 
percent rural telecommunications loans, $52,756,000; cost of money 
rural telecommunications loans, $300,000,000; municipal rate rural 
electric loans, $500,000,000; and loans made pursuant to section 306 of 
that Act, rural electric, $300,000,000, and rural telecommunications, 
$120,000,000, to remain available until expended.
    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, including the cost of modifying loans, of direct and 
guaranteed loans authorized by the Rural Electrification Act of 1936, 
as amended (7 U.S.C. 935 and 936), as follows: cost of direct loans, 
$11,393,000; cost of municipal rate loans, $21,100,000; cost of money 
rural telecommunications loans, $60,000; cost of loans guaranteed 
pursuant to section 306, $2,760,000: Provided, That notwithstanding 
section 305(d)(2) of the Rural Electrification Act of 1936, borrower 
interest rates may exceed 7 percent per year.
    In addition, for administrative expenses necessary to carry out the 
direct and guaranteed loan programs, $29,982,000, which shall be 
transferred to and merged with the appropriation for ``Salaries and 
Expenses.''.

                  rural telephone bank program account

    The Rural Telephone Bank is hereby authorized to make such 
expenditures, within the limits of funds available to such corporation 
in accord with law, and to make such contracts and commitments without 
regard to fiscal year limitations as provided by section 104 of the 
Government Corporation Control Act, as amended, as may be necessary in 
carrying out its authorized programs for the current fiscal year. 
During fiscal year 1998 and within the resources and authority 
available, gross obligations for the principal amount of direct loans 
shall be $175,000,000.
    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, including the cost of modifying loans, of direct loans 
authorized by the Rural Electrification Act of 1936, as amended (7 
U.S.C. 935), $3,710,000.
    In addition, for administrative expenses necessary to carry out the 
loan programs, $3,000,000.

               distance learning and medical link program

    For the cost of direct loans and grants, as authorized by 7 U.S.C. 
950aaa et seq., as amended, $12,030,000, to remain available until 
expended, to be available for loans and grants for telemedicine and 
distance learning services in rural areas: Provided, That the costs of 
direct loans shall be as defined in section 502 of the Congressional 
Budget Act of 1974.

                         salaries and expenses

    For necessary expenses of the Rural Utilities Service, including 
administering the programs authorized by the Rural Electrification Act 
of 1936, as amended, and the Consolidated Farm and Rural Development 
Act, as amended, and cooperative agreements, $33,000,000: Provided, 
That this appropriation shall be available for employment pursuant to 
the second sentence of 706(a) of the Organic Act of 1944, and not to 
exceed $105,000 may be used for employment under 5 U.S.C. 3109.

                                TITLE IV

                         DOMESTIC FOOD PROGRAMS

Office of the Under Secretary for Food, Nutrition and Consumer Services

    For necessary salaries and expenses of the Office of the Under 
Secretary for Food, Nutrition and Consumer Services to administer the 
laws enacted by the Congress for the Food and Consumer Service, 
$454,000.

                        Child Nutrition Programs

                     (including transfers of funds)

    For necessary expenses to carry out the National School Lunch Act 
(42 U.S.C. 1751 et seq.), except section 21, and the Child Nutrition 
Act of 1966 (42 U.S.C. 1772 et seq.), except sections 17 and 21; 
$7,769,066,000, to remain available through September 30, 1999, of 
which $2,617,675,000 is hereby appropriated and $5,151,391,000 shall be 
derived by transfer from funds available under section 32 of the Act of 
August 24, 1935 (7 U.S.C. 612c): Provided, That $4,124,000 shall be 
available for independent verification of school food service claims.

Special Supplemental Nutrition Program for Women, Infants, and Children 
                                 (WIC)

    For necessary expenses to carry out the special supplemental 
nutrition program as authorized by section 17 of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786), $3,927,600,000, to remain available 
through September 30, 1999, of which up to $12,000,000 may be used to 
carry out the farmers' market nutrition program from any funds not 
needed to maintain current caseload levels: Provided, That 
notwithstanding sections 17 (g), (h), and (i) of such Act, the 
Secretary shall adjust fiscal year 1998 State allocations to reflect 
food funds available to the State from fiscal year 1997 under section 
17(i)(3)(A)(ii) and 17(i)(3)(D): Provided further, That the Secretary 
shall allocate funds recovered from fiscal year 1997 first to States to 
maintain stability funding levels, as defined by regulations 
promulgated under section 17(g), and then to give first priority for 
the allocation of any remaining funds to States whose funding is less 
than their fair share of funds, as defined by regulations promulgated 
under section 17(g): Provided further, That none of the funds in this 
Act shall be available to pay administrative expenses of WIC clinics 
except those that have an announced policy of prohibiting smoking 
within the space used to carry out the program: Provided further, That 
none of the funds provided in this account shall be available for the 
purchase of infant formula except in accordance with the cost 
containment and competitive bidding requirements specified in section 
17 of the Child Nutrition Act of 1966: Provided further, That State 

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