Center for Arms Control and Non-Proliferation

Analysis of Conference Agreement on the FY2008 Defense Appropriatons Bill (H.R. 3222)

by Christopher Hellman [contact information]

November 8, 2007

The House and Senate conferees completed their markup of the Fiscal Year 2008 Defense Appropriations bill on November 6. The bill includes $459.3 billion for the Department of Defense, $3.5 billion below the Bush Administration's request ($463.1 billion) and $39.7 billion above current levels (excluding supplementals), a 9.5 percent increase. The full House may begin consideration of the conference agreement November 8, and the Senate is expected to take it up next week.

The conference agreement has also become the vehicle for a Continuing Resolution which will fund programs for which the Appropriations bills have not yet been passed (which at this point is all 12 bills) through December 14 [see "Non-Defense Provisions" below].

This bill does NOT fund the Administration request for military operations in Iraq and Afghanistan, which now totals about $190 billion for FY2008. Both the House and Senate are expected to address Iraq and Afghanistan funding in the next 10 days through a "bridge" or temporary fund of about $50-$70 billion, with the remainder of the money to be considered early next year.

For additional information on the Administration's FY2008 budget request, see the Center's analysis.

For additional information on the House-passed version of the Defense Appropriations bill (H.R. 3222), see the Center's analysis.

For additional information on the Senate-passed version of the Defense Appropriations bill (H.R. 3222), see the Center's analysis.

HIGHLIGHTS

No Permanent Bases in Iraq – Continues the existing prohibition on the construction of permanent U.S. military bases in Iraq. (Sec. 8113)

Defense Health Care – Provides $23.5 billion, $918 million above the Administration's request.

Guard and Reserve Equipment – Provides $980 million to address equipment shortfalls in the National Guard and Reserve.

Mine Resistant Ambush Protected (MRAP) Vehicles – Provides $11.63 billion for MRAP vehicles.

Conventional Trident Modification Program – The conference agreement states that Congress will "provide no funding for testing, fabrication, or deployment of a Conventional Trident Modification (CTM) program. Instead, the agreement consolidates $100 million from across DoD accounts for the new Prompt Global Strike program.

Missile Defense – Provides $8.7 billion for missile defense, $185 million below the request. Reduces the $310 million request for the third missile defense site in Europe by $85 million. Includes no funding for the Space Test Bed.

Continued F-22 Production – Encourages the Air Force to consider using funds intended to help shut down F-22 production to instead fund advanced procurement of 20 additional aircraft. The F-22 program is scheduled to end procurement after FY'08. (See "F-22" below)

Cooperative Threat Reduction (Nunn-Lugar) – Provides $428 million, $80 million above the request and $56 million above current funding levels.

Reliable Replacement Warhead – Provides $15 million of the $30 million requested in DoD funding for the Reliable Replacement Warhead (additional funds have been requested for the Department of Energy in the Energy and Water Appropriations bill.)

FUNDING PROVISIONS

Total Funding

• Request: $463.1 billion
• House: $459.6 billion
• Senate: $459.6 billion
• Conference: $459.3 billion

Personnel

• Request: $105.4 billion
• House: $105.0 billion ($386 million below the request)
• Senate: $105.5 billion ($118 million above the request)
• Conference: $105.3 billion ($112 million below the request)

Operations & Maintenance

• Request: $142.9 billion
• House: $137.1 billion ($5.7 billion below the request)
• Senate: $142.7 billion ($175 million below the request)
• Conference: $140.1 billion ($2.8 billion below the request)

Procurement

• Request: $99.6 billion
• House: $99.6 billion ($15 million below the request)
• Senate: $98.2 billion ($1.4 billion below the request)
• Conference: $98.2 billion ($1.4 billion below the request)

Research, Development, Testing & Evaluation

• Request: $75.1 billion
• House: $76.2 billion ($1.1 billion above the request)
• Senate: $75.4 billion ($265 million above the request)
• Conference: $77.3 billion ($2.15 billion above the request)

Revolving and Management Funds

• Request: $2.5 billion
• House: $3.8 billion ($1.4 billion above the request)
• Senate: $2.4 billion ($57 million below the request)
• Conference: $2.7 billion ($248 million above the request)

Other Defense Programs (including defense healthcare)

• Request: $25.7 billion
• House: $26.1 billion ($349 million above the request)
• Senate: $26.3 billion ($566 million above the request)
• Conference: $26.3 billion ($566 million above the request)

MAJOR WEAPONS SYSTEMS

TACTICAL AIRCRAFT

F/A-22 "Raptor" Fighter

• Request: $3.1 billion for 20 aircraft
• House: $3.2 billion for 20 aircraft
• Senate: $3.1 billion for 20 aircraft
• Conference: $3.2 billion for 20 aircraft
• NOTE: The conferees believe the Air Force should consider extending the current multi-year procurement program beyond FY'08 (the projected end of the F-22 program), and use the $526 million available in the Air Force's projected FY'09 budget for shutting down the F-22 assembly line for advanced procurement of an additional 20 aircraft.

F-35 Joint Strike Fighter

• Request: $2.4 billion for procurement of 12 aircraft (six Navy, six Air Force)
• House: $2.4 billion for procurement of 12 aircraft (six Navy, six Air Force)
• Senate: $2.4 billion for procurement of 12 aircraft (six Navy, six Air Force)
• Conference: $2.4 billion for procurement of 12 aircraft (six Navy, six Air Force)
• NOTE: The agreement includes an additional $480 million in unrequested funds for continued development of an alternative engine source for the aircraft.

F/A-18E/F "Super Hornet" Fighter

• Request: $2.1 billion for 24 aircraft
• House: $2.0 billion for 24 aircraft
• Senate: $2.1 billion for 24 aircraft
• Conference: $2.0 billion for 24 aircraft

EA-18G Jamming Aircraft

• Request: $1.3 billion for 18 aircraft
• House: $1.3 billion for 18 aircraft
• Senate: $1.3 billion for 18 aircraft
• Conference: $1.3 billion for 18 aircraft

V-22 "Osprey" Tilt-rotor

• Request: $1.8 billion for 21 Marine Corps aircraft, and $454 million for five Air Force aircraft
• House: $1.8 billion for 21 Marine Corps aircraft, and $454 million for five Air Force aircraft
• Senate: $1.8 billion for 21 Marine Corps aircraft, and $454 million for five Air Force aircraft
• Conference: $1.8 billion for 21 Marine Corps aircraft, and $454 million for five Air Force aircraft

C-17 Transport

• Request: $261 million
• House: $261 million
• Senate: $261 million
• Conference: $261 million

C-130J Transport Aircraft

• Request: $223 million for 4 Marine Corps KC-130J aircraft, and $686 million for nine Air Force aircraft
• House: $220 million for 4 Marine Corps KC-130J aircraft, and $686 million for nine Air Force aircraft
• Senate: $223 million for 4 Marine Corps KC-130J aircraft, and $686 million for nine Air Force aircraft
• Conference: $220 million for 4 Marine Corps KC-130J aircraft, and $686 million for nine Air Force aircraft

BALLISTIC MISSILE DEFENSE(Missile Defense Agency only)

• Request: $8.8 billion
• House: $8.5 billion ($298 million below the request)
• Senate: $8.5 billion ($310 million below the request)
• Conference: $8.7 billion ($185 million below the request
• NOTE: The total Administration request for ballistic missile defense (MDA and other service accounts) was $10.9 billion

SHIPBUILDING

Aircraft Carrier Replacement Program [CVN-21]

• Request: $2.7 billion for one vessel
• House: $2.7 billion for one vessel
• Senate: $2.7 billion for one vessel
• Conference: $2.7 billion for one vessel

DD-1000 "Zumwalt" Destroyer [DD(x)]

• Request: $2.8 billion for two vessels
• House: $2.8 billion for two vessels
• Senate: $2.8 billion for two vessels
• Conference: $2.8 billion for two vessels

Littoral Combat Ship (LCS)

• Request: $910 million for three vessels
• House: $339 million for one vessel ($571 million below the request)
• Senate: Contains no funding for new vessels
• Conference: $339 million for one vessel ($571 million below the request)
• NOTE: The conference report requires the Navy to select a single ship design by the end of FY'09

LPD-17 "San Antonio" Amphibious Assault Ship

• Request: $1.4 billion for one vessel
• House: $3.1 billion for two vessels
• Senate: $1.4 billion for one vessel
• Conference: $1.4 billion for one vessel (includes $50 million for advanced procurement of the tenth ship in the class funded in the House version).

LHA Replacement Vessel

• Request: $1.4 billion
• House: $1.4 billion
• Senate: $1.4 billion
• Conference: $1.4 billion

SSN-774 "Virginia" Class Submarine

• Request: $1.8 billion for 1 vessel
• House: $1.8 billion for 1 vessel
• Senate: $1.8 billion for 1 vessel
• Conference: $1.8 billion for 1 vessel
• NOTE: The agreement also includes $1.3 billion for advanced procurement of an additional vessel, $588 million above the amount requested.

ARMY PROGRAMS

Stryker Interim Armored Vehicle (IAV)

• Request: $1.0 billion for 127 vehicles
• House: $1.9 billion for 377 vehicles ($874 million above the request)
• Senate: $1.0 billion for 127 vehicles
• Conference: $925 million
• NOTE: The conference agreement does NOT include House language providing an additional $1.1 billion in unrequested funds for the formation of an 8th Stryker combat brigade.

Future Combat System

• Request: $3.6 billion
• House: $3.1 billion
• Senate: $3.6 billion
• Conference: $3.4 billion

Armed Reconnaissance Helicopter

• Request: $468 million for 26 aircraft
• House: No procurement funding
• Senate: $242 million for 16 aircraft
• Conference: $176 million for 12 aircraft

UH-60 "Blackhawk" Helicopters

• Request: $587 million for 42 aircraft
• House: $771 million for 52 aircraft
• Senate: $771 million for 52 aircraft
• Conference: $771 million for 52 aircraft

GENERAL PROVISIONS

Personnel - Fully funds a 3.5 percent across-the-board pay raise for military personnel. The Administration had requested only a 3 percent increase.

End Strengths - The bill supports the Army's requested end strength increase of 7,000 troops and the Marine Corps' requested increase of 5,000 additional Marines in FY 2008. Supports the Navy's requested end strength reduction of 12,300 and the Air Force's requested end strength reduction of 5,600 in FY'08.

Chemical Weapons Destruction - Provides $1.51 billion for the Army's chemical munitions destruction program, $57 million more than requested by the Administration.

General Transfer Authority – Permits the Pentagon to shift up to $3.7 billion within its accounts to meet unanticipated expenses (Section 8005). NOTE: This authority has in the past been used to fund ongoing military operations when supplemental appropriations have not yet been made available by Congress.

NON-DEFENSE PROVISIONS (DIVISION B)

Continuing Resolution – Continues funding for federal agencies for which separate FY'08 appropriations have not yet been enacted at current levels through December 14, 2007 (Section 151)

Veterans' Benefits – Increases funding rates for certain accounts within the Veterans' Administration to levels included in the Administration's FY'08 budget request (Section 155)

Fighting Wildfires – Provides $500 million in emergency funding to the Forest Service and Bureau of Land Management to fight and prevent wildfires (Section 157)

Disaster Assistance – Provides $2.9 billion in emergency funding to the Federal Emergency Management Agency for disaster response and relief efforts (Section 158)

Hurricane Victims' Housing Relief – Provides $3 billion in emergency funding to the Department of Housing and Urban Development to cover shortfalls in the "Road Home" program intended to assist people whose homes were damaged in Hurricanes Katrina and Rita (Section 159)

SOURCES

House and Senate Conference Report on H.R. 3222, released November 6, 2007.

House Appropriations Committee Press Release on Defense Conference Report, released November 6, 2007.

Senate Appropriations Committee Press Release on Defense Conference Report, released November 6, 2007.

Defense Appropriations Bill for Fiscal Year 2008 (H.R. 3222) House Committee Report 110-279 (PDF), released July 30, 2007.

Defense Appropriations Bill for Fiscal Year 2008 (H.R. 3222) Senate Committee Report 110-155, released September 14, 2007.