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Analysis of the Conference Agreement on the Fiscal Year 2007 Supplemental Spending Request (H.R. 1591/S. 968)

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by Christopher Hellman [contact information]

May 9, 2007

On April 23 the House and Senate conferees approved a $124.2 billion emergency supplemental appropriations bill for Fiscal Year 2007.  The bill includes $95.5 billion for the Department of Defense, primarily to fund military operations in Iraq and Afghanistan, roughly $4 billion more than the amount sought by the Bush Administration.  This funding is in addition to the $70 billion "bridge fund" in war funding for FY'07 that Congress approved last September.  To date Congress has approved over $500 billion for military operations in Iraq and Afghanistan, not including the $95.5 billion included in the conference agreement, nor the $141.7 billion in additional funding already requested by the Administration for fiscal year 2008.  The House and Senate are expected to take up this bill on Wednesday and Thursday, April 25-26.

In addition to funding combat operations in Iraq and Afghanistan, the bill includes nearly $29 billion for a wide range of initiatives, including other federal funding for the war on terrorism, hurricane reconstruction, assistance to American farmers, and international famine relief.

HIGHLIGHTS

Withdrawal of Forces From Iraq - Directs the President to certify to Congress by July 1, 2007 that the Iraqi government has achieved certain milestones including combating the insurgency and reconciling political divisions in the country.  If the President makes the certification, the withdrawal of troops would begin October 1, 2007.   If the certification cannot or is not made by July 1, then the withdrawal of forces would begin immediately, with the goal in either case of completing the withdrawal within 180 days.  Limited U.S. forces would be permitted to remain in Iraq to protect American diplomatic facilities and citizens, train Iraqi security forces, and conduct limited military operations against terrorists.  The agreement also includes language requiring that units set to deploy for combat be rated "fully mission capable," and sets limits on deployment schedules for active, reserve and National Guard units.  The President could waive these provisions.

Walter Reed Army Medical Facility - The committee approved language blocking closure of Walter Reed Hospital unless the Secretary of Defense certifies that adequate replacement facilities are available.  Walter Reed was included in the 2005 Base Realignment and Closure list approved by Congress and was slated for closure no later than 2011.

BRAC Funding - Provides $3.1 billion for implementation of the 2005 Base Realignment and Closure Commission's recommendations, the amount included in both the House and Senate versions. Combined with the $2.5 billion included in the Fiscal Year 2007 Continuing Resolution (H.J.Res. 20), fully funds the Pentagon's FY'07 BRAC request.

Defense Health Care - Provides $3.3 billion for defense health care, $2.2 billion above the administration's request.  The bill also includes $1.8 billion for the Veterans Healthcare Administration (VA).

Program Cuts - The conference agreement includes House and Senate language eliminating funding for five of the six E/A-18G aircraft ($367 million) requested, as well as the two F-35 Joint Strike Fighters ($389 million) included in the request.

Afghan and Iraqi Security Forces - Fully funds the $5.9 billion request for the Afghan Security Forces and the $3.8 billion request for Iraq Security Forces.

No Permanent Bases In Iraq - Includes language barring the use of any funds for the creation of permanent U.S. military bases in Iraq.

IED Force Protection - Fully funds the $2.4 billion request for the Joint Improvised Explosive Device Defeat Organization (JIEDDO).

Strategic Readiness Reserve Fund - Includes $2.0 billion for the creation of a new Strategic Readiness Reserve fund.  The House provided $2.5 billion for the program, which is intended to improve readiness, training and equipping of U.S. forces not already deployed.  The Senate did not fund the initiative.  Of this amount $1 billion is designated for the National Guard and Reserve.

FUNDING LEVELS (numbers may not add up due to rounding)

Total

Personnel

Operations & Maintenance

Procurement

Research, Development, Testing & Evaluation

Revolving and Management Funds

Other DoD

OTHER DEFENSE PROVISIONS

Aircraft Procurement - The conference agreement includes funds originally requested for five C-130J transport aircraft ($388 million) and one V-22 "Osprey" tilt-rotor aircraft ($146 million). While the House fully funded these requests, the Senate did not.  [Note: a revised war supplemental request released by the White House on March 9 also eliminated these funding requests].

National Guard and Reserve Equipment - Provides $1 billion in unrequested funding for equipment for the National Guard and Reserve.

CERP Program - Like the House and Senate, the conference agreement fully funds the $456 million request for the Commanders' Emergency Response Program (CERP).

Stryker Armored Vehicles - Adopts the Senate position which reduced the $857 million request for 111 Stryker armored vehicles to $768 million by eliminating $90 million requested for the Mobile Gun System.

Mine Resistant Ambush Protection Vehicles - Provides $3 billion, $1.2 billion above the request.

NON-DEFENSE PROVISIONS

Hurricane Assistance - Provides $4.9 billion for the Hurricane Disaster Relief Fund, roughly $1.5 billion above the request. The House and Senate included $4.3 billion.  In all, the conference agreement includes nearly $7 billion for Gulf Coast recovery.

Reconstruction Funding - Provides $2.86 billion for reconstruction efforts in Iraq ($338 million below the request), and $919.9 million for Afghanistan ($199 above the request).  Also provides reconstruction funding for Lebanon ($769.5 million), Sudan ($213.4 million) and Jordon ($90.6 million).

Minimum Wage - Increases the minimum wage to $5.85 per hour in the first year after enactment (the current minimum wage is $5.15 per hour), and to $7.25 by the third year.

Nuclear Security - Provides $150 million for nuclear non-proliferation initiatives, including $136 million for the International Nuclear Materials Protection and Cooperation program, of which $25 million for the Rosatom Weapons Complex activities and $87 million for the Megaports initiative to improve nuclear security at host nation seaports. Provides $223.5 million for radiation detectors to scan shipping containers and $39 million to develop alternatives for scanning non-container cargos.

Food Assistance - Provides $500 million ($150 million above the request) for emergency food aid in Sudan, Chad, Afghanistan, Southern Africa and the Horn of Africa. The House included $450 million, while the Senate included $475 million.

Agricultural Assistance - Provides $3.5 billion not requested by the Administration to assist U.S. farmers for relief from drought and agricultural disasters. The Senate version included $4.2 billion, while the House version included $3.7 billion.

SOURCES

The conference committee's joint explanatory statement on H.R. 1591, the House and Senate Appropriations committees summary of the conference agreement from April 23, 2007, H.R. 1591, House Report 110-60, House Appropriations Committee press release from March 16, 2007, S. 965, Senate Report 110-37, and Senate Appropriations Committee press release from March 22, 2007.

Christopher Hellman 202-546-0795 chellman@armscontrolcenter.org

Christopher Hellman is the Military Policy Fellow at the Center for Arms Control and Non-Proliferation where his work focuses on national security spending, military planning and policy, trends in the defense industry, global military spending, and homeland security. Hellman is a frequent media commentator on these issues. Previously, Hellman worked for the Center for Defense Information, Physicians for Social Responsibility, and spent ten years as a congressional staffer working on national security and foreign policy issues.