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Highlights of Conference Agreement on the Fiscal Year 2005 Defense Appropriations Bill (H.R. 4613, S. 2559)

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The President today signed into law the conference agreement on the FY’05 Defense Appropriations bill. The bill includes $416.2 billion for the Department of Defense for fiscal year 2005. This amount includes $25 billion requested by the President for early fiscal year 2005 costs associated with operations in Iraq and Afghanistan. The remaining $391 billion is an increase of $22.5 billion over amounts provided in fiscal year 2004.

NOTE: The $391 billion figure represents funding only for the Department of Defense. It does not include funding for military construction (estimated at roughly $9.5 billion) or weapons-related activities of the Department of Energy (estimated at roughly $19 billion), each of which are funded through other appropriations bills.

FUNDING PROVISIONS

em>Total Funding

Request: $417.8 billion

Senate: $416.2 billion

House: $416.1 billion

Conference Agreement: $416.2 billion

Personnel

Request: $104.8 billion

Senate: $103.9 billion

House: $104.2 billion

Conference Agreement: $103.7 billion

Procurement

Request: $74.9 billion

Senate: $76.5 billion

House: $77.4 billion

Conference Agreement: $77.7 billion

Research, Development, Testing & Evaluation

Request: $68.9 billion

Senate: $68.8 billion

House: $68.9 billion

Conference Agreement: $69.9 billion

Operations & Maintenance

Request: $121.9 billion

Senate: $121.4 billion

House: $120.6 billion

Conference Agreement: $121.1 billion

The bill fully funds the Administration’s recent $25 billion request to cover operational costs in Iraq and Afghanistan for the early part of FY’05.

IRAQ AND AFGHANISTAN (Initial Costs)

NOTE: Estimates for the total FY’05 costs for military operations in Iraq and Afghanistan are as high as $75 billion.

This $25 billion is broken down into these categories:

Military Personnel

Senate: $505 million

House: $3.9 billion

Conference Agreement: $1.2 billion

Operation and Maintenance

Senate: $17.6 billion

House: $14.3 billion

Conference Agreement: $20.2 billion

Iraq Freedom Fund

Senate: $2.5 billion

House: $2.9 billion

Conference Agreement: N/A

Procurement

Senate: $2.3 billion

House: $2.2 billion

Conference Agreement: $1.4 billion

Classified Programs

Senate: $1.25 billion

House: $1.25 billion

Conference Agreement: N/A

Defense Health Program

Senate: $746 million

House: $305 million

Conference Agreement: $683 million

Defense Working Capital Funds

Senate: N/A

House: N/A

Conference Agreement: $1.5 billion

MAJOR WEAPONS SYSTEMS

Ballistic Missile Defense

Request: $10.2 billion

Senate: $10.2 billion

House: $9.7 billion

Conference Agreement: $10 billion (decrease of $183 million from request)

TACTICAL AIRCRAFT

F/A-22 “Raptor” Fighter

Request: $3.6 billion procurement for 24 aircraft

Senate: $3.6 billion procurement for 24 aircraft

House: $3.6 billion procurement for 24 aircraft

Conference Agreement: $3.6 billion procurement for 24 aircraft

Joint Strike Fighter

Request: $4.6 billion

Senate: $4.5 billion (claims “full funding” of request)

House: $4.4 billion (decrease of $204 million from request)

Conference Agreement: $4.4 billion

F/A-18E/F “Super Hornet” Fighter

Request: $2.9 billion for 42 aircraft

Senate: $2.9 billion for 42 aircraft

House: $2.9 billion for 42 aircraft

Conference Agreement: $2.9 billion for 42 aircraft

C-17 Transport Aircraft

Request: $2.5 billion for procurement of 14 aircraft

Senate: $2.5 billion for procurement of 14 aircraft

House: $2.7 billion for procurement of 15 aircraft

Conference Agreement: $2.7 billion for procurement of 15 aircraft ($158 million above request)

V-22 “Osprey” Tilt-rotor

Request: $1.1 billion for procurement of 11 aircraft

Senate: $1.1 billion for procurement of 11 aircraft

House: $1.1 billion for procurement of 11 aircraft

Conference Agreement: $1.1 billion for procurement of 11 aircraft

KC-767 Airborne Tanker Aircraft

Request: None

Senate: $110 million

House: $100 million

Conference Agreement: $100 million for the “Tanker Replacement Transfer Fund”

SHIPBUILDING

DD Destroyer (Research and Development)

Request: $1.2 billion

Senate: $1.21 billion

House: $1.183 billion

Conference Agreement: $1.86 billion

DDG-51 “Arleigh Burke” Destroyer

Request: $3.4 billion for 3 ships

Senate: $3.4 billion for 3 ships

House: $3.4 billion for 3 ships

Conference Agreement: $3.4 billion for 3 ships

LPD-17 “San Antonio” Amphibious Assault Ship

Request: $966 million for 1 ship

Senate: $966 million for 1 ship

House: $3.4 billion for 3 ships

Conference Agreement: $3.4 billion for 3 ships

SSN-774 “Virginia” Class Submarine

Request: $1.6 billion for one vessel

Senate: $1.6 billion for one vessel

House: $1.6 billion for one vessel

Conference Agreement: $1.6 billion for one vessel

ARMY PROGRAMS

Stryker Interim Armored Vehicle (IAV)

Request: $905 million

Senate: $905 million

House: $1.9 billion

Conference Agreement: $1.5 billion

Future Combat Systems

Request: $3.2 billion

Senate: $3.03 billion

House: N/A

Conference Agreement: $2.9 billion ($268 million below request)

Military Pay Raise

Request: 3.5 percent across-the-board pay raise

Senate: 3.5 percent across-the-board pay raise

House: 3.5 percent across-the-board pay raise

Conference Agreement: 3.5 percent across-the-board pay raise

Sources: Defense Department’s Fiscal Year 2005 budget request, Conference Report 108-622, to accompany H.R. 4613.