FY2025 NDAA: Military Construction and Housing Authorizations
Changes from August 28, 2024 to August 5, 2025
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CRS INSIGHT Prepared for Members and Committees of Congress
INSIGHTi
FY2025 NDAA: Military Construction and Housing Authorizations
August 28, 2024
For fiscal year 2025 (FY2025), the Biden Administration requested $17.545 billion for U.S. Department of Defense (DOD) military construction (MILCON) accounts and family housing programs (a total that is 6% less than the $18.675 billion enacted by Congress for MILCON and family housing in the previous year).
On May 31, 2024, the House Armed Services Committee (HASC) reported
(NDAA) for Fiscal Year 2025 (H.R. 8070), and an accompanying report, H.Rept. 118-529. On June 14, the House passed H.R. 8070, which would authorize $17.545 billion for DOD MILCON and family housing accounts, equal to the Administration’s requested amount.
On July 8, 2024, the Senate Armed Services Committee (SASC) reported S. 4638, the National Defense Authorization Act for Fiscal Year 2025, and an accompanying report, S.Rept. 118-188. The legislation would authorize $20.664 billion for traditional military construction and family housing accounts, 15% more than the requested amount. The SASC-reported bill would also provide an additional $12.5 billion to repair Air Force and Navy facilities on Guam that were damaged by a 2023 typhoon. The additional disaster relief funding—which is not present in H.R. 8070—brings S. 4638’s total MILCON and family housing authorization to $33.169 billion, 89% more than the Administration’s requested amount.
Details of the funding levels for selected MILCON and family housing accounts are contained in Table 1.
Table 1. FY2025 NDAA Authorizations for Selected Military Construction Accounts
(in thousands of dollars of discretionary budget authority)
FY2024
Enacted
FY25
President’s
Budget
Request H.R. 8070 S. 4638
Military Construction, Army $2,022,775 $2,311,157 $2,149,957 $2,361,328
Military Construction, Navy $5,531,369 $4,540,899 $4,104,429 $6,547,616
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FY2024
Enacted
FY25
President’s
Budget
Request H.R. 8070 S. 4638
Military Construction, Air Force $2,741,424 $3,187,126 $3,410,837 $3,568,766
Military Construction, Defense-wide $3,161,782 $3,733,163 $3,636,722 $3,735,946
Military Construction, Army National Guard $620,647 $362,129 $448,529 $555,181
Military Construction, Air National Guard $295,526 $190,792 $238,792 $314,192
Military Construction, Army Reserve $151,076 $255,032 $429,032 $352,632
Military Construction, Navy and Marine Reserve $51,291 $29,829 $114,829 $104,829
Military Construction, Air Force Reserve $331,572 $69,263 $121,263 $96,283
NATO Security Investment Program $293,434 $433,864 $433,864 $463,864
Family Housinga $1,970,751 $1,983,864 $1,933,864 $1,965,864
Base Realignment and Closure (BRAC) $489,174 $447,961 $522,961 $447,961
INDOPACOM MILCON Pilot $0 $0 $0 $150,000
Total Military Construction, Family Housing and BRAC
$18,675,000 $17,545,079 $17,545,079 $20,664,462
Disaster Recovery, Navy (Guam) $0 $1,224,771b $0 $4,566,940
Disaster Recovery, Air Force (Guam) $0 $71,197b $0 $7,938,000
Total Division B, Military Construction $18,675,000 $18,841,047 $17,545,079 $33,169,402
Source: P.L. 118-42; President’s Budget Request FY2025, Office of the Under Secretary of Defense (Comptroller), Construction Programs (C-1), March 2024; White House Letter Regarding Critical Supplemental Funding Needs, June 2024, and Funding Request to Meet Critical Needs, H.R. 8070, Sec. 4601, and S. 4368, Sec. 4601 and 4602. Notes: a. Family Housing budget numbers include Family Housing Construction accounts, Family Housing Operation and Maintenance accounts, the Family Housing Improvement Fund (FHIF), and the Unaccompanied Housing Improvement Fund (UHIF).
b. The Biden Administration’s request for disaster recovery was not included in the President’s Budget Request submitted to Congress in March 2024, but was submitted under a separate supplemental request, first in October 2023 and resubmitted in June 2024.
H.R. 8070
The House bill contains 36 Community Project Funding items, totaling $1.338 billion.
The House bill contains certain provisions that may impact laws, funding, and oversight mechanisms related to military construction and family housing programs. Selected provisions from the bill are listed and briefly described below.
Section 2801 would authorize the development and operation of a “Naval Innovation Center” at the Naval Postgraduate School in Monterey, California; the provision would also authorize the Secretary of Defense to accept financial gifts to support the center.
Section 2802 would authorize DOD’s Office of Local Defense Community Cooperation (OLDCC) to expand a grant program that supports local initiatives for economic adjustment and diversification. Specifically, the provision would authorize grants to local governments (in addition to state governments),
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along with grants for “public infrastructure projects and services that enhance the capabilities and resilience of the defense industrial base and the defense industrial base workers.”
Section 2803 would authorize DOD’s OLDCC to expand certain grant programs to include the Coast Guard.
Section 2804 would authorize DOD’s OLDCC to expand the Defense Community Infrastructure Program (DCIP) to include “not-for-profit, member-owned utility services” among eligible recipients.
Section 2805 would raise spending limits for certain aspects of the Defense Laboratory Modernization Program.
Section 2807 would expand authority for funding MILCON projects for stormwater management and defense access roads.
Section 2808 would amend the FY2024 NDAA provision that increased the threshold for unspecified minor military construction (UMMC) projects in the Indo-Pacific Command’s (INDOPACCOM’s) Area of Responsibility. Specifically, the provision in Section 2808 would raise the threshold for UMMC from $15 million to $20 million.
Section 2822 would impose additional requirements for the development of a DOD-wide database of complaints related to military housing. Similarly, Section 2825 would restrict availability of certain DOD funds until DOD implements existing law requiring creation of a database of military housing complaints.
S. 4638
The SASC-reported bill contains certain provisions that may impact laws, funding, and oversight mechanisms related to military construction and family housing programs. Selected provisions from the bill are listed and briefly described below.
Section 2801 would amend the statute governing UMMC (10 U.S.C. §2805) to authorize the Secretary of Defense to acquire land with UMMC appropriations.
Section 2802 would extend temporary authority for the Secretary of Defense to convey property at military installations.
Section 2804 would amend the FY2024 NDAA provision that increased the threshold for UMMC projects in the INDOPACCOM’s Area of Responsibility. Specifically, the provision would raise the threshold for minor military construction from $15 million to $30 million.
Section 2805 would amend the statute (10 U.S.C. §2854) authorizing the restoration or replacement of damaged or destroyed facilities. The provision would require that any restoration or replacement project be designed to prevent damage or destruction by the cause or causes that generated the original damage or destruction.
Section 2806 would expand the law that authorizes DOD to lease certain non-excess property; specifically, the provision would add additional types of in-kind consideration that DOD may accept as a part of such leasing.
Section 2808 would impose new requirements on DOD for obligating and executing funds appropriated for the purpose of designing a military construction project.
Section 2810 would impose a new requirement to limit the aggregate growth of square footage of DOD buildings. Specifically, the provision requires that for any square footage of growth in a military building, DOD must offset that amount of growth in space by an equivalent reduction of square footage in another facility by means such as demolition or disposal.
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Section 2811 would create a new pilot program intended to optimize the Army’s infrastructure footprint by authorizing the use of UMMC funding for certain projects that the Secretary of the Army determines will reduce overall square footage and “create more livable, productive, and resilient communities.”
Section 2015 would set new requirements for the military departments to provide funding for facilities sustainment, restoration and modernization (FSRM). A subcomponent of the services’ Operation and Maintenance accounts, FSRM funding is intended to improve the condition of existing infrastructure. Specifically, the provision in Section 2015 would require the military departments to invest FSRM funds in an amount equal to certain percentages of the total plant replacement value (PRV) of all facilities maintained by the department. The required investment would begin in FY2026 at 1.75% of total PRV. The requirement would increase incrementally until FY2029, when the requirement would reach 4% of total PRV. The legislation does not indicate any requirements for FSRM investments beyond FY2029.
Author Information
Andrew Tilghman Analyst in U.S. Defense Infrastructure Policy
Disclaimer
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(in thousands of dollars of discretionary budget authority)
FY2025 Request
House-passed H.R. 8070
Military Construction, Army
$2,311,157
$2,149,957
$2,361,328
$2,485,657
Military Construction, Navy
$4,540,899
$4,104,429
$6,547,616
$4,089,622
Military Construction, Air Force
$3,187,126
$3,410,837
$3,568,766
$3,532,416
Military Construction, Defense-wide
$3,733,163
$3,636,722
$3,735,946
$3,187,950
Military Construction, Army National Guard
$362,129
$448,529
$555,181
$477,329
Military Construction, Air National Guard
$190,792
$238,792
$314,192
$296,692
Military Construction, Army Reserve
$255,032
$429,032
$352,632
$351,032
Military Construction, Navy and Marine Corps Reserve
$29,829
$114,829
$104,829
$39,829
Military Construction, Air Force Reserve
$69,263
$121,263
$96,283
$137,863
NATO Security Investment Program
$433,864
$433,864
$463,864
$463,864
$1,983,864
$1,933,864
$1,965,864
$1,809,864
Base Realignment and Closure (BRAC)
$447,961
$522,961
$447,961
$522,961
$0
$0
$150,000
$150,000
Total Military Construction, Family Housing and BRAC
$17,545,079
$17,545,079
$20,664,462
17,545,079
Disaster Recovery, Navy (Guam)
$0
$4,566,940
$0
Disaster Recovery, Air Force (Guam)
$0
$7,938,000
$0
Total Division B, Military Construction
$17,545,079
$17,545,079
$33,169,402
17,545,079
Source: P.L. 118-159, Sec. 4601; President's Budget Request FY2025, Office of the Under Secretary of Defense (Comptroller), Construction Programs (C-1), March 2024; the House-passed version of H.R. 8070, Sec. 4601; and the Senate-reported version of S. 4368, Sec. 4601 and 4602.
Notes:a. Amounts in this column reflect those in the explanatory statement to accompany House amendment to Senate amendment to H.R. 5009, p. 500.
b. Family Housing budget numbers reflect amounts provided for Family Housing Construction accounts, Family Housing Operation and Maintenance accounts, the Family Housing Improvement Fund (FHIF), and the Unaccompanied Housing Improvement Fund (UHIF). c. The INDOPACOM MILCON Pilot provides dedicated funding for unspecified minor military construction projects in the Indo-Pacific Command Area of Responsibility. d. The Biden Administration's request for disaster recovery was not included in the President's Budget Request submitted to Congress in March 2024, but was submitted under a separate supplemental request, first in October 2023 and resubmitted in June 2024.Policy provisions
The FY2025 NDAA included policy provisions that may impact DOD's management and congressional oversight of military installations, basing decisions, military construction programs, and military housing. Selected provisions are summarized below.
Section 2801 extends the notification requirements for basing decisions under Title 10, Section 483(f)(4), regarding major headquarters and major weapons systems, to include all military bases worldwide, not just those in the United States and its territories.
Section 2802 expands eligibility for Defense Community Infrastructure Program (DCIP) grants to include not-for-profit, member-owned utility services.
Section 2803 codifies the Air Force Strategic Basing process and places limits on the Secretary of the Air Force's decisionmaking authority.
Section 2804 amends the statutes governing unspecified minor military construction (UMMC), 10 U.S.C. §§2805 and 2663 to authorize the Secretary of Defense to acquire land with up to $4 million of UMMC appropriations.
Section 2807 amends Section 2810 of the FY2024 NDAA to raise the temporary threshold from $15 million to $30 million for unspecified minor military construction projects carried out by the commander of the United States Indo-Pacific Command.
Section 2811 codifies a requirement that DOD and the military departments enter into a contract for executing the congressionally directed design of a MILCON project within 150 days of the date when the MILCON funding for such design work is appropriated.
Section 2841 sets new minimum requirements for the military departments to invest certain levels of facilities sustainment, restoration, and modernization (FSRM) funding. A subcomponent of the services' Operation and Maintenance (O&M) accounts, FSRM funding is intended to improve the condition of existing infrastructure. Specifically, the provision in Section 2841 will require the military departments to invest FSRM funds in an amount equal to a percentage of the total plant replacement value (PRV) of all department facilities. The required investment would begin in FY2027 at 1.75% of total PRV and increase incrementally each year until FY2030, when the requirement would reach 4% of total PRV. The law requires DOD to maintain the investment level of 4% for each subsequent fiscal year. In response to a similar provision in S. 4638, then-Secretary of Defense Lloyd Austin wrote in a letter to congressional defense committees stating that DOD "strongly opposes" required FSRM investments and the requirements would "present an unfunded bill to the military departments" that would range between $12 billion during the initial year and $50 billion for FY2030 when the required investment level is to reach 4%. The new requirements were codified in Title 10, Section 2680, of the United States Code.
Military Housing Reforms
The General Accountability Office (GAO) published its report, "Poor Living Conditions Undermine Quality of Life and Readiness," in September 2023 (GAO-23-105797). Quality and condition of military unaccompanied housing (also known as barracks or dormitories) was an issue of legislative interest during the 118th Congress. The House Armed Services Committee (HASC) issued a report in April 2024 that included recommendations regarding housing and other issues. Several housing-related provisions were included in the FY2025 NDAA.
Section 2821 amends Title 10 of the U.S. Code to include a requirement that the secretaries of the military departments provide annually to the congressional defense committees a "budget justification display" that provides information about plans for supporting unaccompanied military housing with FSRM funding.
Section 2825 amends Section 2894a of the U.S. Code to include additional requirements for DOD's database of information about complaints related to military housing.
Section 2826 amends Section 2837(b) of the FY2024 NDAA and requires the Secretary of Defense to issue guidance for creation of a digital system through which residents of unaccompanied housing can submit requests for maintenance work for unaccompanied military housing facilities.
Section 2827 amends Section 3001(a)(2) of the FY2020 NDAA to revise the definition "privatized military housing."
Section 2829 requires DOD to create a digital facilities management system that can track the condition of military facilities and support planning for maintenance actions.
Section 2830 directs the secretaries of the military departments to develop and submit to the congressional defense committees a strategy for using existing leasing authorities to address shortages in military unaccompanied housing. The strategy is to include an identification of the locations with the largest unaccompanied housing shortages.