American Recovery and Reinvestment Act of 2009/Division B/Title II

{{SECTION|SEC. 2000.|SEC. 2000}}. SHORT TITLE; TABLE OF CONTENTS OF TITLE.

 * (a) .—


 * This title may be cited as the ``Assistance for Unemployed Workers and Struggling Families Act´´.


 * (b) .—


 * The table of contents of this title is as follows:

{{SECTION|SEC. 2001.|SEC. 2001}}. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.

 * (a) In General.—


 * Section 4007 of the Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by section 4 of the Unemployment Compensation Extension Act of 2008 (Public Law 110-449; 122 Stat. 5015), is amended—


 * (1) by striking "March 31, 2009" each place it appears and inserting "December 31, 2009";


 * (2) in the heading for subsection (b)(2), by striking "march 31, 2009" and inserting "december 31, 2009"; and


 * (3) in subsection (b)(3), by striking "August 27, 2009" and inserting "May 31, 2010".


 * (b) Financing Provisions.—


 * Section 4004 of such Act is amended by adding at the end the following:

{{SECTION|SEC. 2002.|SEC. 2002}}. INCREASE IN UNEMPLOYMENT COMPENSATION BENEFITS.

 * (a) Federal-State Agreements.—


 * Any State which desires to do so may enter into and participate in an agreement under this section with the Secretary of Labor (hereinafter in this section referred to as the "Secretary"). Any State which is a party to an agreement under this section may, upon providing 30 days' written notice to the Secretary, terminate such agreement.


 * (b) Provisions of Agreement.—


 * (1) Additional compensation.—


 * Any agreement under this section shall provide that the State agency of the State will make payments of regular compensation to individuals in amounts and to the extent that they would be determined if the State law of the State were applied, with respect to any week for which the individual is (disregarding this section) otherwise entitled under the State law to receive regular compensation, as if such State law had been modified in a manner such that the amount of regular compensation (including dependents' allowances) payable for any week shall be equal to the amount determined under the State law (before the application of this paragraph) plus an additional $25.


 * (2) Allowable methods of payment.—


 * Any additional compensation provided for in accordance with paragraph (1) shall be payable either—


 * (A) as an amount which is paid at the same time and in the same manner as any regular compensation otherwise payable for the week involved; or


 * (B) at the option of the State, by payments which are made separately from, but on the same weekly basis as, any regular compensation otherwise payable.


 * (c) Nonreduction Rule.—


 * An agreement under this section shall not apply (or shall cease to apply) with respect to a State upon a determination by the Secretary that the method governing the computation of regular compensation under the State law of that State has been modified in a manner such that—


 * (1) the average weekly benefit amount of regular compensation which will be payable during the period of the agreement (determined disregarding any additional amounts attributable to the modification described in subsection (b)(1)) will be less than


 * (2) the average weekly benefit amount of regular compensation which would otherwise have been payable during such period under the State law, as in effect on December 31, 2008.


 * (d) Payments to States.—


 * (1) In general.—


 * (A) Full reimbursement.—


 * There shall be paid to each State which has entered into an agreement under this section an amount equal to 100 percent of—


 * (i) the total amount of additional compensation (as described in subsection (b)(1)) paid to individuals by the State pursuant to such agreement; and


 * (ii) any additional administrative expenses incurred by the State by reason of such agreement (as determined by the Secretary).


 * (B) Terms of payments.—


 * Sums payable to any State by reason of such State's having an agreement under this section shall be payable, either in advance or by way of reimbursement (as determined by the Secretary), in such amounts as the Secretary estimates the State will be entitled to receive under this section for each calendar month, reduced or increased, as the case may be, by any amount by which the Secretary finds that his estimates for any prior calendar month were greater or less than the amounts which should have been paid to the State. Such estimates may be made on the basis of such statistical, sampling, or other method as may be agreed upon by the Secretary and the State agency of the State involved.


 * (2) Certifications.—


 * The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this section.


 * (3) Appropriation.—


 * There are appropriated from the general fund of the Treasury, without fiscal year limitation, such sums as may be necessary for purposes of this subsection.


 * (e) Applicability.—


 * (1) In general.—


 * An agreement entered into under this section shall apply to weeks of unemployment—


 * (A) beginning after the date on which such agreement is entered into; and


 * (B) ending before January 1, 2010.


 * (2) Transition rule for individuals remaining entitled to regular compensation as of january 1, 2010.—


 * In the case of any individual who, as of the date specified in paragraph (1)(B), has not yet exhausted all rights to regular compensation under the State law of a State with respect to a benefit year that began before such date, additional compensation (as described in subsection (b)(1)) shall continue to be payable to such individual for any week beginning on or after such date for which the individual is otherwise eligible for regular compensation with respect to such benefit year.


 * (3) Termination.—


 * Notwithstanding any other provision of this subsection, no additional compensation (as described in subsection (b)(1)) shall be payable for any week beginning after June 30, 2010.


 * (f) Fraud and Overpayments.—


 * The provisions of section 4005 of the Supplemental Appropriations Act, 2008 (Public Law 110-252; 122 Stat. 2356) shall apply with respect to additional compensation (as described in subsection (b)(1)) to the same extent and in the same manner as in the case of emergency unemployment compensation.


 * (g) Application to Other Unemployment Benefits.—


 * (1) In general.—


 * Each agreement under this section shall include provisions to provide that the purposes of the preceding provisions of this section shall be applied with respect to unemployment benefits described in subsection (i)(3) to the same extent and in the same manner as if those benefits were regular compensation.


 * (2) Eligibility and termination rules.—


 * Additional compensation (as described in subsection (b)(1))—


 * (A) shall not be payable, pursuant to this subsection, with respect to any unemployment benefits described in subsection (i)(3) for any week beginning on or after the date specified in subsection (e)(1)(B), except in the case of an individual who was eligible to receive additional compensation (as so described) in connection with any regular compensation or any unemployment benefits described in subsection (i)(3) for any period of unemployment ending before such date; and


 * (B) shall in no event be payable for any week beginning after the date specified in subsection (e)(3).


 * (h) Disregard of Additional Compensation for Purposes of Medicaid and SCHIP.—


 * The monthly equivalent of any additional compensation paid under this section shall be disregarded in considering the amount of income of an individual for any purposes under title XIX and title XXI of the Social Security Act.


 * (i) Definitions.—


 * For purposes of this section—


 * (1) the terms "compensation", "regular compensation", "benefit year", "State", "State agency", "State law", and "week" have the respective meanings given such terms under section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note);


 * (2) the term "emergency unemployment compensation" means emergency unemployment compensation under title IV of the Supplemental Appropriations Act, 2008 (Public Law 110-252; 122 Stat. 2353); and


 * (3) any reference to unemployment benefits described in this paragraph shall be considered to refer to—


 * (A) extended compensation (as defined by section 205 of the Federal-State Extended Unemployment Compensation Act of 1970); and


 * (B) unemployment compensation (as defined by section 85(b) of the Internal Revenue Code of 1986) provided under any program administered by a State under an agreement with the Secretary.

{{SECTION|SEC. 2003.|SEC. 2003}}. SPECIAL TRANSFERS FOR UNEMPLOYMENT COMPENSATION MODERNIZATION.

 * (a) In General.—


 * Section 903 of the Social Security Act (42 U.S.C. 1103) is amended by adding at the end the following:


 * (b) Regulations.—


 * The Secretary of Labor may prescribe any regulations, operating instructions, or other guidance necessary to carry out the amendment made by subsection (a).

{{SECTION|SEC. 2004.|SEC. 2004}}. TEMPORARY ASSISTANCE FOR STATES WITH ADVANCES.

 * Section 1202(b) of the Social Security Act (42 U.S.C. 1322(b)) is amended by adding at the end the following new paragraph:

{{SECTION|SEC. 2005.|SEC. 2005}}. FULL FEDERAL FUNDING OF EXTENDED UNEMPLOYMENT COMPENSATION FOR A LIMITED PERIOD.

 * (a) In General.—


 * In the case of sharable extended compensation and sharable regular compensation paid for weeks of unemployment beginning after the date of the enactment of this section and before January 1, 2010, section 204(a)(1) of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) shall be applied by substituting "100 percent of" for "one-half of".


 * (b) Special Rule.—


 * At the option of a State, for any weeks of unemployment beginning after the date of the enactment of this section and before January 1, 2010, an individual's eligibility period (as described in section 203(c) of the Federal-State Extended Unemployment Compensation Act of 1970) shall, for purposes of any determination of eligibility for extended compensation under the State law of such State, be considered to include any week which begins—


 * (1) after the date as of which such individual exhausts all rights to emergency unemployment compensation; and


 * (2) during an extended benefit period that began on or before the date described in paragraph (1).


 * (c) Limited Extension.—


 * In the case of an individual who receives extended compensation with respect to 1 or more weeks of unemployment beginning after the date of the enactment of this Act and before January 1, 2010, the provisions of subsections (a) and (b) shall, at the option of a State, be applied by substituting "ending before June 1, 2010" for "before January 1, 2010".


 * (d) Extension of Temporary Federal Matching for the First Week of Extended Benefits for States With No Waiting Week.—


 * (1) In general.—


 * Section 5 of the Unemployment Compensation Extension Act of 2008 (Public Law 110-449) is amended by striking "December 8, 2009" and inserting "May 30, 2010".


 * (2) Effective date.—


 * The amendment made by paragraph (1) shall take effect as if included in the enactment of the Unemployment Compensation Extension Act of 2008 (Public Law 110-449).


 * (e) Definitions.—


 * For purposes of this section—


 * (1) the terms "sharable extended compensation" and "sharable regular compensation" have the respective meanings given such terms under section 204 of the Federal-State Extended Unemployment Compensation Act of 1970;


 * (2) the terms "extended compensation", "State", "State law", and "week" have the respective meanings given such terms under section 205 of the Federal-State Extended Unemployment Compensation Act of 1970;


 * (3) the term "emergency unemployment compensation" means benefits payable to individuals under title IV of the Supplemental Appropriations Act, 2008 with respect to their unemployment; and


 * (4) the term "extended benefit period" means an extended benefit period as determined in accordance with applicable provisions of the Federal-State Extended Unemployment Compensation Act of 1970.


 * (f) Regulations.—


 * The Secretary of Labor may prescribe any operating instructions or regulations necessary to carry out this section.

{{SECTION|SEC. 2006.|SEC. 2006}}. TEMPORARY INCREASE IN EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD UNEMPLOYMENT INSURANCE ACT.

 * (a) In General.—


 * Section 2(c)(2) of the Railroad Unemployment Insurance Act (45 U.S.C. 352(c)(2)) is amended by adding at the end the following:


 * (b) Funding for Administration.—


 * Out of any funds in the Treasury not otherwise appropriated, there are appropriated to the Railroad Retirement Board $80,000 to cover the administrative expenses associated with the payment of additional extended unemployment benefits under section 2(c)(2)(D) of the Railroad Unemployment Insurance Act, as added by subsection (a), to remain available until expended.

{{SECTION|SEC. 2101.|SEC. 2101}}. EMERGENCY FUND FOR TANF PROGRAM.

 * (a) Temporary Fund.—


 * (1) In general.—


 * Section 403 of the Social Security Act (42 U.S.C. 603) is amended by adding at the end the following:


 * (2) Repeal.—


 * Effective October 1, 2010, subsection (c) of section 403 of the Social Security Act (42 U.S.C. 603) (as added by paragraph (1)) is repealed, except that paragraph (9) of such subsection shall remain in effect until October 1, 2011, but only with respect to section 407(b)(3)(A)(i) of such Act.


 * (b) Temporary Modification of Caseload Reduction Credit.—


 * Section 407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i)) is amended by inserting "(or if the immediately preceding fiscal year is fiscal year 2008, 2009, or 2010, then, at State option, during the emergency fund base year of the State with respect to the average monthly assistance caseload of the State (within the meaning of section 403(c)(9)), except that, if a State elects such option for fiscal year 2008, the emergency fund base year of the State with respect to such caseload shall be fiscal year 2007))" before "under the State".


 * (c) Disregard From Limitation on Total Payments to Territories.—


 * Section 1108(a)(2) of the Social Security Act (42 U.S.C. 1308(a)(2)) is amended by inserting "403(c)(3)," after "403(a)(5),".


 * (d) Sunset of Other Temporary Provisions.—


 * (1) Disregard from limitation on total payments to territories.—


 * Effective October 1, 2010, section 1108(a)(2) of the Social Security Act (42 U.S.C. 1308(a)(2)) is amended by striking "403(c)(3)," (as added by subsection (c)).


 * (2) Caseload reduction credit.—


 * Effective October 1, 2011, section 407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i)) is amended by striking "(or if the immediately preceding fiscal year is fiscal year 2008, 2009, or 2010, then, at State option, during the emergency fund base year of the State with respect to the average monthly assistance caseload of the State (within the meaning of section 403(c)(9)), except that, if a State elects such option for fiscal year 2008, the emergency fund base year of the State with respect to such caseload shall be fiscal year 2007))" (as added by subsection (b)).

{{SECTION|SEC. 2102.|SEC. 2102}}. EXTENSION OF TANF SUPPLEMENTAL GRANTS.

 * (a) Extension Through Fiscal Year 2010.—


 * Section 7101(a) of the Deficit Reduction Act of 2005 (Public Law 109-171; 120 Stat. 135), as amended by section 301(a) of the Medicare Improvements for Patients and Providers Act of 2008 (Public Law 110-275), is amended by striking ``fiscal year 2009´´ and inserting ``fiscal year 2010´´.


 * (b) Conforming Amendment.—


 * Section 403(a)(3)(H)(ii) of the Social Security Act (42 U.S.C. 603(a)(3)(H)(ii)) is amended to read as follows:


 * ``(ii) subparagraph (G) shall be applied as if ‘fiscal year 2010’ were substituted for ‘fiscal year 2001’; and´´.

{{SECTION|SEC. 2103.|SEC. 2103}}. CLARIFICATION OF AUTHORITY OF STATES TO USE TANF FUNDS CARRIED OVER FROM PRIOR YEARS TO PROVIDE TANF BENEFITS AND SERVICES.

 * Section 404(e) of the Social Security Act (42 U.S.C. 604(e)) is amended to read as follows:


 * ``(e) Authority to Carry Over Certain Amounts for Benefits or Services or for Future Contingencies.—A State or tribe may use a grant made to the State or tribe under this part for any fiscal year to provide, without fiscal year limitation, any benefit or service that may be provided under the State or tribal program funded under this part.´´.

{{SECTION|SEC. 2104.|SEC. 2104}}. TEMPORARY RESUMPTION OF PRIOR CHILD SUPPORT LAW.

 * During the period that begins on October 1, 2008, and ends on September 30, 2010, section 455(a)(1) of the Social Security Act (42 U.S.C. 655(a)(1)) shall be applied and administered as if the phrase "from amounts paid to the State under section 458 or" does not appear in such section.

{{SECTION|SUBTITLE C|SUBTITLE C}} — ECONOMIC RECOVERY PAYMENTS TO CERTAIN INDIVIDUALS
=== . ECONOMIC RECOVERY PAYMENT TO RECIPIENTS OF SOCIAL SECURITY, SUPPLEMENTAL SECURITY INCOME, RAILROAD RETIREMENT BENEFITS, AND VETERANS DISABILITY COMPENSATION OR PENSION BENEFITS. ===


 * (a) Authority to Make Payments.—


 * (1) Eligibility.—


 * (A) In general.—


 * Subject to paragraph (5)(B), the Secretary of the Treasury shall disburse a $250 payment to each individual who, for any month during the 3-month period ending with the month which ends prior to the month that includes the date of the enactment of this Act, is entitled to a benefit payment described in clause (i), (ii), or (iii) of subparagraph (B) or is eligible for a SSI cash benefit described in subparagraph (C).


 * (B) Benefit payment described.—


 * For purposes of subparagraph (A):


 * (i) Title II benefit.—


 * A benefit payment described in this clause is a monthly insurance benefit payable (without regard to sections 202(j)(1) and 223(b) of the Social Security Act (42 U.S.C. 402(j)(1), 423(b)) under—


 * (I) section 202(a) of such Act (42 U.S.C. 402(a));
 * (II) section 202(b) of such Act (42 U.S.C. 402(b));
 * (III) section 202(c) of such Act (42 U.S.C. 402(c));
 * (IV) section 202(d)(1)(B)(ii) of such Act (42 U.S.C. 402(d)(1)(B)(ii));
 * (V) section 202(e) of such Act (42 U.S.C. 402(e));
 * (VI) section 202(f) of such Act (42 U.S.C. 402(f));
 * (VII) section 202(g) of such Act (42 U.S.C. 402(g));
 * (VIII) section 202(h) of such Act (42 U.S.C. 402(h));
 * (IX) section 223(a) of such Act (42 U.S.C. 423(a));
 * (X) section 227 of such Act (42 U.S.C. 427); or
 * (XI) section 228 of such Act (42 U.S.C. 428).


 * (ii) Railroad retirement benefit.—


 * A benefit payment described in this clause is a monthly annuity or pension payment payable (without regard to section 5(a)(ii) of the Railroad Retirement Act of 1974 (45 U.S.C. 231d(a)(ii))) under—


 * (I) section 2(a)(1) of such Act (45 U.S.C. 231a(a)(1));
 * (II) section 2(c) of such Act (45 U.S.C. 231a(c));
 * (III) section 2(d)(1)(i) of such Act (45 U.S.C. 231a(d)(1)(i));
 * (IV) section 2(d)(1)(ii) of such Act (45 U.S.C. 231a(d)(1)(ii));
 * (V) section 2(d)(1)(iii)(C) of such Act to an adult disabled child (45 U.S.C. 231a(d)(1)(iii)(C));
 * (VI) section 2(d)(1)(iv) of such Act (45 U.S.C. 231a(d)(1)(iv));
 * (VII) section 2(d)(1)(v) of such Act (45 U.S.C. 231a(d)(1)(v)); or
 * (VIII) section 7(b)(2) of such Act (45 U.S.C. 231f(b)(2)) with respect to any of the benefit payments described in clause (i) of this subparagraph.


 * (iii) Veterans benefit.—


 * A benefit payment described in this clause is a compensation or pension payment payable under—


 * (I) section 1110, 1117, 1121, 1131, 1141, or 1151 of title 38, United States Code;
 * (II) section 1310, 1312, 1313, 1315, 1316, or 1318 of title 38, United States Code;
 * (III) section 1513, 1521, 1533, 1536, 1537, 1541, 1542, or 1562 of title 38, United States Code; or
 * (IV) section 1805, 1815, or 1821 of title 38, United States Code,


 * to a veteran, surviving spouse, child, or parent as described in paragraph (2), (3), (4)(A)(ii), or (5) of section 101, title 38, United States Code, who received that benefit during any month within the 3 month period ending with the month which ends prior to the month that includes the date of the enactment of this Act.


 * (C) SSI cash benefit described.—


 * A SSI cash benefit described in this subparagraph is a cash benefit payable under section 1611 (other than under subsection (e)(1)(B) of such section) or 1619(a) of the Social Security Act (42 U.S.C. 1382, 1382h).


 * (2) Requirement.—


 * A payment shall be made under paragraph (1) only to individuals who reside in 1 of the 50 States, the District of Columbia, Puerto Rico, Guam, the United States Virgin Islands, American Samoa, or the Northern Mariana Islands. For purposes of the preceding sentence, the determination of the individual's residence shall be based on the current address of record under a program specified in paragraph (1).


 * (3) No double payments.—


 * An individual shall be paid only 1 payment under this section, regardless of whether the individual is entitled to, or eligible for, more than 1 benefit or cash payment described in paragraph (1).


 * (4) Limitation.—


 * A payment under this section shall not be made—


 * (A) in the case of an individual entitled to a benefit specified in paragraph (1)(B)(i) or paragraph (1)(B)(ii)(VIII) if, for the most recent month of such individual's entitlement in the 3-month period described in paragraph (1), such individual's benefit under such paragraph was not payable by reason of subsection (x) or (y) of section 202 the Social Security Act (42 U.S.C. 402) or section 1129A of such Act (42 U.S.C. 1320a-8a);


 * (B) in the case of an individual entitled to a benefit specified in paragraph (1)(B)(iii) if, for the most recent month of such individual's entitlement in the 3 month period described in paragraph (1), such individual's benefit under such paragraph was not payable, or was reduced, by reason of section 1505, 5313, or 5313B of title 38, United States Code;


 * (C) in the case of an individual entitled to a benefit specified in paragraph (1)(C) if, for such most recent month, such individual's benefit under such paragraph was not payable by reason of subsection (e)(1)(A) or (e)(4) of section 1611 (42 U.S.C. 1382) or section 1129A of such Act (42 U.S.C. 1320a-8a); or


 * (D) in the case of any individual whose date of death occurs before the date on which the individual is certified under subsection (b) to receive a payment under this section.


 * (5) Timing and manner of payments.—


 * (A) In general.—


 * The Secretary of the Treasury shall commence disbursing payments under this section at the earliest practicable date but in no event later than 120 days after the date of enactment of this Act. The Secretary of the Treasury may disburse any payment electronically to an individual in such manner as if such payment was a benefit payment or cash benefit to such individual under the applicable program described in subparagraph (B) or (C) of paragraph (1).


 * (B) Deadline.—


 * No payments shall be disbursed under this section after December 31, 2010, regardless of any determinations of entitlement to, or eligibility for, such payments made after such date.


 * (b) Identification of Recipients.—


 * The Commissioner of Social Security, the Railroad Retirement Board, and the Secretary of Veterans Affairs shall certify the individuals entitled to receive payments under this section and provide the Secretary of the Treasury with the information needed to disburse such payments. A certification of an individual shall be unaffected by any subsequent determination or redetermination of the individual's entitlement to, or eligibility for, a benefit specified in subparagraph (B) or (C) of subsection (a)(1).


 * (c) Treatment of Payments.—


 * (1) Payment to be disregarded for purposes of all federal and federally assisted programs.—


 * A payment under subsection (a) shall not be regarded as income and shall not be regarded as a resource for the month of receipt and the following 9 months, for purposes of determining the eligibility of the recipient (or the recipient's spouse or family) for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.


 * (2) Payment not considered income for purposes of taxation.—


 * A payment under subsection (a) shall not be considered as gross income for purposes of the Internal Revenue Code of 1986.


 * (3) Payments protected from assignment.—


 * The provisions of sections 207 and 1631(d)(1) of the Social Security Act (42 U.S.C. 407, 1383(d)(1)), section 14(a) of the Railroad Retirement Act of 1974 (45 U.S.C. 231m(a)), and section 5301 of title 38, United States Code, shall apply to any payment made under subsection (a) as if such payment was a benefit payment or cash benefit to such individual under the applicable program described in subparagraph (B) or (C) of subsection (a)(1).


 * (4) Payments subject to offset.—


 * Notwithstanding paragraph (3), for purposes of section 3716 of title 31, United States Code, any payment made under this section shall not be considered a benefit payment or cash benefit made under the applicable program described in subparagraph (B) or (C) of subsection (a)(1) and all amounts paid shall be subject to offset to collect delinquent debts.


 * (d) Payment to Representative Payees and Fiduciaries.—


 * (1) In general.—


 * In any case in which an individual who is entitled to a payment under subsection (a) and whose benefit payment or cash benefit described in paragraph (1) of that subsection is paid to a representative payee or fiduciary, the payment under subsection (a) shall be made to the individual's representative payee or fiduciary and the entire payment shall be used only for the benefit of the individual who is entitled to the payment.


 * (2) Applicability.—


 * (A) Payment on the basis of a title ii or ssi benefit.—


 * Section 1129(a)(3) of the Social Security Act (42 U.S.C. 1320a-8(a)(3)) shall apply to any payment made on the basis of an entitlement to a benefit specified in paragraph (1)(B)(i) or (1)(C) of subsection (a) in the same manner as such section applies to a payment under title II or XVI of such Act.


 * (B) Payment on the basis of a railroad retirement benefit.—


 * Section 13 of the Trade Act of 1974 (45 U.S.C. 231l) shall apply to any payment made on the basis of an entitlement to a benefit specified in paragraph (1)(B)(ii) of subsection (a) in the same manner as such section applies to a payment under such Act.


 * (C) Payment on the basis of a veterans benefit.—


 * Sections 5502, 6106, and 6108 of title 38, United States Code, shall apply to any payment made on the basis of an entitlement to a benefit specified in paragraph (1)(B)(iii) of subsection (a) in the same manner as those sections apply to a payment under that title.


 * (e) Appropriation.—


 * Out of any sums in the Treasury of the United States not otherwise appropriated, the following sums are appropriated for the period of fiscal years 2009 through 2011, to remain available until expended, to carry out this section:


 * (1) For the Secretary of the Treasury, $131,000,000 for administrative costs incurred in carrying out this section, section 2202, section 36A of the Internal Revenue Code of 1986 (as added by this Act), and other provisions of this Act or the amendments made by this Act relating to the Internal Revenue Code of 1986.


 * (2) For the Commissioner of Social Security—


 * (A) such sums as may be necessary for payments to individuals certified by the Commissioner of Social Security as entitled to receive a payment under this section; and


 * (B) $90,000,000 for the Social Security Administration's Limitation on Administrative Expenses for costs incurred in carrying out this section.


 * (3) For the Railroad Retirement Board—


 * (A) such sums as may be necessary for payments to individuals certified by the Railroad Retirement Board as entitled to receive a payment under this section; and


 * (B) $1,400,000 to the Railroad Retirement Board's Limitation on Administration for administrative costs incurred in carrying out this section.


 * (4)(A) For the Secretary of Veterans Affairs—


 * (i) such sums as may be necessary for the Compensation and Pensions account, for payments to individuals certified by the Secretary of Veterans Affairs as entitled to receive a payment under this section; and


 * (ii) $100,000 for the Information Systems Technology account and $7,100,000 for the General Operating Expenses account for administrative costs incurred in carrying out this section.


 * (B) The Department of Veterans Affairs Compensation and Pensions account shall hereinafter be available for payments authorized under subsection (a)(1)(A) to individuals entitled to a benefit payment described in subsection (a)(1)(B)(iii).

{{SECTION|SEC. 2202.|SEC. 2202}}. SPECIAL CREDIT FOR CERTAIN GOVERNMENT RETIREES.

 * (a) In General.—


 * In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A of the Internal Revenue Code of 1986 for the first taxable year beginning in 2009 an amount equal $250 ($500 in the case of a joint return where both spouses are eligible individuals).


 * (b) Eligible Individual.—


 * For purposes of this section—


 * (1) In general.—


 * The term "eligible individual" means any individual—


 * (A) who receives during the first taxable year beginning in 2009 any amount as a pension or annuity for service performed in the employ of the United States or any State, or any instrumentality thereof, which is not considered employment for purposes of chapter 21 of the Internal Revenue Code of 1986, and


 * (B) who does not receive a payment under section 2201 during such taxable year.


 * (2) Identification number requirement.—


 * Such term shall not include any individual who does not include on the return of tax for the taxable year—


 * (A) such individual's social security account number, and


 * (B) in the case of a joint return, the social security account number of one of the taxpayers on such return.—


 * For purposes of the preceding sentence, the social security account number shall not include a TIN (as defined in section 7701(a)(41) of the Internal Revenue Code of 1986) issued by the Internal Revenue Service. Any omission of a correct social security account number required under this subparagraph shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) of such Code to such omission.


 * (c) Treatment of Credit.—


 * (1) Refundable credit.—


 * (A) In general.—


 * The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986.


 * (B) Appropriations.—


 * For purposes of section 1324(b)(2) of title 31, United States Code, the credit allowed by subsection (a) shall be treated in the same manner a refund from the credit allowed under section 36A of the Internal Revenue Code of 1986 (as added by this Act).


 * (2) Deficiency rules.—


 * For purposes of section 6211(b)(4)(A) of the Internal Revenue Code of 1986, the credit allowable by subsection (a) shall be treated in the same manner as the credit allowable under section 36A of the Internal Revenue Code of 1986 (as added by this Act).


 * (d) Refunds Disregarded in the Administration of Federal Programs and Federally Assisted Programs.—


 * Any credit or refund allowed or made to any individual by reason of this section shall not be taken into account as income and shall not be taken into account as resources for the month of receipt and the following 2 months, for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.

