Order Code RL33405
CRS Report for Congress
Received through the CRS Web
Defense: FY2007 Authorization and
Appropriations
Updated September 5, 2006
Stephen Daggett
Specialist in National Defense
Foreign Affairs, Defense, and Trade Division
Congressional Research Service { The Library of Congress

Defense: FY2007 Authorization and Appropriations
Summary
The Senate began floor debate on the FY2007 defense appropriations bill, H.R.
5631 on August 1, but it did not complete the bill before adjourning for the August
recess. The Senate plans to resume action on September 5. As reported by the
appropriations committee, the bill provided $453.5 billion for defense, including $50
billion in appropriations for overseas operations. The total is $9.1 billion less than
the Administration requested. In floor action, the Senate added substantial amounts
to the $50 billion in emergency spending, including $13.1 billion to reequip units
returning from abroad and $1.8 billion for border security.
Earlier, on June 20, the House passed its version of the bill. It provides $416.3
billion for defense programs, $4.1 billion below the request. The amounts in the
House and Senate bills are not directly comparable, since some programs in the
Senate bill are covered in the House in the Military Quality of Life/Veterans Affairs
appropriations bill, H.R. 5385.
On June 22, the Senate passed on its version of the FY2007 defense authorization,
S. 2766. The Senate rejected two amendments on Iraq policy, one by Senator Kerry
calling for withdrawal of most forces by July 1, 2007, and another by Senator Levin
calling for a phased reduction of troops to begin this year. The House passed its version
of the authorization, H.R. 5122, on May 11. The House bill authorizes $513 billion for
national defense, equal to the request. The Senate bill authorizes $517.7 billion.
In congressional action on key issues —
! The House Appropriations Committee allocated $4.9 billion less
than the Administration requested for the defense and military
quality of life appropriations bills, and the Senate has provided $9.5
billion less. The White House has threatened a veto if Congress cuts
more than $4 billion in order to shift funds to non-security spending.
! Both the House and the Senate authorization bills increase Army
active duty end-strength by 30,000, Marine Corps active duty end-
strength by 5,000, and Army National Guard end-strength by 17,000.
! Both the House and the Senate authorization bills reject a DOD
proposal to increase retiree medical fees and copays, though the House
bill permits higher pharmacy copays. The House authorization
increases the proposed military pay raise from 2.2% to 2.7%. The
Senate agreed to a 2.2% raise. The House bill expands access of non-
deployed reservists to the DOD TRICARE medical insurance program.
The Senate bill provides a more limited extension of eligibility.
! As in the past, Congress has been unwilling to support proposed cuts
in major weapons programs. None of the committees have agreed
to halt production of the C-17 cargo aircraft, and all restored funds
to develop an alternative engine for the F-35 Joint Strike Fighter.

Key Policy Staff
Area of Expertise
Name
Telephone
E-Mail
Acquisition
Valerie Grasso
7-7617
vgrasso@crs.loc.gov
Aviation Forces
Christopher Bolkcom
7-2577
cbolkcom@crs.loc.gov
Arms Control
Amy Woolf
7-2379
awoolf@crs.loc.gov
Arms Sales
Richard Grimmett
7-7675
rgrimmett@crs.loc.gov
David Lockwood
7-7621
dlockwood@crs.loc.gov
Base Closure
Daniel Else
7-4996
delse@crs.loc.gov
Stephen Daggett
7-7642
sdaggett@crs.loc.gov
Defense Budget
Amy Belasco
7-7627
abelasco@crs.loc.gov
Gary Pagliano
7-1750
gpagliano@crs.loc.gov
Defense Industry
Daniel Else
7-4996
delse@crs.loc.gov
Michael Davey
7-7074
mdavey@crs.loc.gov
Defense R&D
John Moteff
7-1435
jmoteff@crs.loc.gov
Edward Bruner
7-2775
ebruner@crs.loc.gov
Ground Forces
Steven Bowman
7-7613
sbowman@crs.loc.gov
Andrew Feickert
7-7673
afeickert@crs.loc.gov
Health Care; Military
Richard Best
7-7607
rbest@crs.loc.gov
Richard Best
7-7607
rbest@crs.loc.gov
Intelligence
Al Cumming
7-7739
acumming@crs.loc.gov
Military Construction
Daniel Else
7-4996
delse@crs.loc.gov
Military Personnel
David Burrelli
7-8033
dburrelli@crs.loc.gov
Military Personnel;
Lawrence Kapp
7-7609
lkapp@crs.loc.gov
Reserves
Steven Hildreth
7-7635
shildreth@crs.loc.gov
Missile Defense
Andrew Feickert
7-7673
afeickert@crs.loc.gov
Naval Forces
Ronald O’Rourke
7-7610
rorourke@crs.loc.gov
Nuclear Weapons
Jonathan Medalia
7-7632
jmedalia@crs.loc.gov
Peace Operations
Nina Serafino
7-7667
nserafino@crs.loc.gov
Readiness
Amy Belasco
7-7627
abelasco@crs.loc.gov
Space, Military
Patricia Figliola
7-2508
pfigliola@crs.loc.gov
War Powers
Richard Grimmett
7-7675
rgrimmett@crs.loc.gov

Contents
Most Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Status of Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Facts and Figures: Congressional Action on the FY2007 Defense
Budget Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Overview of the Administration Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Highlights of the FY2007 Defense Budget Request . . . . . . . . . . . . . . . . . . . 9
Key Issues in Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Congressional Action on Major Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Bill-by-Bill Synopsis of Congressional Action to Date . . . . . . . . . . . . . . . . 20
Congressional Budget Resolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
FY2007 National Defense Authorization . . . . . . . . . . . . . . . . . . . . . . 20
FY2007 Defense Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
FY2007 Defense Authorization — Highlights of the House Armed
Services Committee Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
FY2007 Defense Authorization — Highlights of House Floor Action . . . . 27
FY2007 Defense Authorization — Highlights of the Senate Armed
Services Committee Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
FY2007 Defense Authorization — Highlights of Senate Floor Action . . . . 32
House Appropriations Committee 302(b) Allocations . . . . . . . . . . . . . . . . 39
FY2007 Defense Appropriations: Highlights of the House
Appropriations Committee Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Senate Appropriations Committee 302(b) Allocations . . . . . . . . . . . . . . . . 44
FY2007 Defense Appropriations: Highlights of the Senate
Appropriations Committee Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Funding Cuts and Caps on Discretionary Spending and on
Emergency Spending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Other Issues in the Senate Defense Appropriations Bill . . . . . . . . . . . 46
FY2007 Defense Appropriations — Highlights of Senate Floor Action . . . 48
Appendix A: Additional Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
For Additional Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
List of Figures
Figure 1. DOD Discretionary Budget Authority, FY2000-FY2011,
Excluding Supplementals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

List of Tables
Table 1A. Status of FY2007 Defense Authorization, H.R. 5122, S. 2766 . . . . . . 3
Table 1B. Status of FY2007 Defense Appropriations, H.R. 5631 . . . . . . . . . . . . 3
Table 2. FY2007 Department of Defense Appropriations, House and Senate
Action by Bill and Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 3. FY2007 National Defense Authorization, House and Senate
Action by Title, H.R. 5122, S. 2766 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Table 4. Congressional Budget Resolution, Recommended National Defense
Budget Function Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Table 5. Administration Request for National Defense for FY2007,
Budget Authority, Discretionary and Mandatory . . . . . . . . . . . . . . . . . . . . . . 8
Table 6: House Floor Action on Selected Amendments: Defense Authorization
Bill, H.R. 5122 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Table 7: Senate Floor Action on Selected Amendments:
Defense Authorization Bill, S. 2766 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Table 8. Initial House 302(b) Subcommittee Allocations . . . . . . . . . . . . . . . . . . 40
Table 9. Initial Senate 302(b) Subcommittee Allocations . . . . . . . . . . . . . . . . . 44
Table 10: Senate Floor Action on Selected Amendments:
Defense Appropriations Bill, H.R. 5631 . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Table A1. Administration Projection of National Defense Funding,
FY2007-FY2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Table A2. Proposed Missile Defense Funding, FY2007-FY2011 . . . . . . . . . . . 54
Table A3. Authorized and Actual Active Duty End-Strength,
FY2004-FY2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Table A4. House and Senate Action on Selected Weapon Programs:
Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Table A5. House and Senate Action on Selected Weapon Programs:
Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Table A6. Emergency Funding, Authorization and Appropriations . . . . . . . . . . 66
Table A7. Authorization of Emergency Funds for Procurement and R&D:
Line Item Detail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Defense: FY2007 Authorization and
Appropriations
Most Recent Developments
The Senate began floor action on its version of the FY2007 defense
appropriations bill, H.R. 5631 on August 1, but did not complete final passage before
adjourning for the August recess on August 3. The Senate agreed to resume
consideration on September 5. As reported by the Appropriations Committee the bill
provides $453.5 billion for defense programs under its jurisdiction, including $50
billion in emergency appropriations for overseas operations. The total is $9.1 billion
less than the Administration requested. Some of the cuts in the regular, baseline
budget, however, are offset with amounts included in the $50 billion of additional
funding for Iraq and Afghanistan — money that does not count against the cap on
discretionary spending in FY2007.
In its initial action on the bill on August 1, the Senate added $13.1 billion in
emergency funding for the Army and Marine Corps to repair, upgrade, and replace
equipment used in overseas operations in Iraq and Afghanistan. On August 2, the
Senate added $1.8 billion for fencing and vehicle barriers along the U.S. border with
Mexico. So the total of additional funding in the bill now stands at $64.9 billion.
Earlier, on June 20, the House passed its version of the FY2007 defense
appropriations bill, also H.R. 5631, by a vote of 407-19. The bill provides $416.3
billion for defense programs, $4.1 billion below the request. It is important to note
that the amounts in the House and Senate versions of the appropriations bill are not
directly comparable because the jurisdictions of the subcommittees differ. About $42
billion that the House provides in the Military Quality of Life/Veterans Affairs
appropriations bill, H.R. 5385, is for programs that the Senate considers in the
regular defense appropriations bill.
The House passed the Military Quality of Live/VA appropriations bill on
May 19. It provides $58.1 billion for Department of Defense programs, including
military construction, family housing, environmental restoration, facility sustainment,
and defense health, $825 million below the Administration request. The Senate
Appropriations Committee reported its version of H.R. 5385, called the Military
Construction/Veterans Affairs appropriations bill, on July20, but the bill has not yet
been considered by the full Senate. The committee bill provides $16.3 billion for the
defense programs it covers (i.e., military construction and family housing), $436
million below the request.
The House reductions in the defense and MQL/VA appropriations bills free up
almost $5 billion for non-defense appropriations bills, while the Senate reductions

CRS-2
in the defense and military construction/VA bills amount to $9.5 billion. By
providing less than the Administration requested for regular defense appropriations,
the committees have been able to provide equivalently more than requested in non-
defense appropriations bills while still remaining under a cap of $873 billion on total
discretionary spending of in each chamber’s version of the annual congressional
budget resolution.
The White House has threatened to veto the defense appropriations bill if
appropriators shift too much from defense to non-defense programs. In a June 20
Statement of Administration Policy (SAP) on the House version of the defense
appropriations bill, the White House objected to the cuts in spending and threatened
a veto if the final bill “significantly underfunds the Department of Defense to shift
funds to non-security spending.” In an August 2 SAP on the Senate version of the
bill, the White House warned, “The Administration strongly opposes the shifting of
base funding requirements to supplemental bills as a way to increase non-security
related discretionary funding. If the President is presented with a final DOD
appropriations bill that cuts in excess of $4 billion from the Department of Defense
to shift funds to non-security spending, his senior advisors would recommend that
he veto that bill
[emphasis in the original].”
Meanwhile, on June 22, by a vote of 96-0, the Senate passed its version of the
FY2007 defense authorization, S 2766. The Senate rejected two amendments on Iraq
policy, one by Senator Levin calling for a phased reduction of troops to begin this
year (rejected by a vote of 39-60) and another by Senator Kerry calling for
withdrawal of most forces by July 1, 2007 (rejected by a vote of 13-86). Earlier, on
June 15-16, the House debated and passed, by a vote 256-153, a Republican
leadership-sponsored resolution on Iraq, H.J.Res. 861, declaring “that it is not in the
national security interest of the United States to set an arbitrary date for the
withdrawal or redeployment of United States Armed Forces from Iraq.”
On May 11, the House passed its version of the defense authorization, H.R.
5122, by a vote of 396-31. The House bill authorizes $513 billion for national
defense, equal to the Administration request, whereas the Senate bill authorizes
$517.7 billion, $4.7 billion higher. Both bills approve $50 billion in emergency
funding for operations in Iraq and elsewhere at the start of the fiscal year. The
amounts authorized are not binding on appropriators, however, and are often greater
than the amounts finally provided in annual appropriations bills.
Status of Legislation
The House and the Senate have passed different versions of the FY2007 defense
authorization bill, and the House has passed its version of the defense appropriations
bill. Tables 1A and 1B track congressional action on those measures.

CRS-3
Table 1A. Status of FY2007 Defense Authorization,
H.R. 5122, S. 2766
Full Committee
Conference
Markup
Report Approval
House
House
Senate
Senate
Conf.
Public
House
Senate
Report
Passage
Report
Passage
Report
House
Senate
Law
H.Rept.
S.Rept.
5/11/06
6/22/06
5/3/06
5/4/06
109-452
109-254
396-31
96-0
5/5/06
5/9/06
Table 1B. Status of FY2007 Defense Appropriations, H.R. 5631
Subcommittee
Conference Report
Markup
Approval
House
House
Senate
Senate
Conf.
Public
House
Senate
Report
Passage
Report
Passage
Report
House
Senate
Law
H.Rept.
S.Rept.
6/20/06
6/7/06
7/13/06 109-504
109-292
407-19
6/16/06
7/25/06
Earlier in the year Congress began, but never completed, action on the annual
congressional budget resolution. The Senate passed its version of the resolution,
S.Con.Res. 83, on March 16. The House Budget Committee reported its version of
the resolution, H.Con.Res. 376, on March 31, and floor action began on April 6. But
the leadership halted debate in the face of internal Republican opposition to the
measure. On May 18, a compromise was announced, and the House approved the
measure by a vote of 218-210.
There has been no conference agreement on the budget resolution, however. In
the absence of an agreement, on May 18, the House also approved a measure
“deeming” the provisions of its version of the budget resolution, including a cap of
$872.8 billion on total discretionary spending, to be in effect for purposes of
subsequent House action. The “deeming” resolution was included in the rule (H.Res.
818) governing debate on the FY2007 Interior and Environment appropriations bill
(H.R. 5386). The Senate approved a “deeming” measure when it passed its version
of the FY2006 supplemental appropriations bill (H.R. 4939).
In action on related legislation, the House passed the Military Quality of
Life/Veterans Affairs appropriations bill, H.R. 5385, on May 19. The bill provides
$58 billion for the Department of Defense, including funds for military construction
and family housing, for some military personnel accounts, for some military
operation and maintenance accounts, and for the defense health program. In the
Senate, the military personnel, O&M, and defense health funds are provided in the
regular defense appropriations bill, and the military construction and family housing
funds are provided in the Military Construction/Veterans Affairs appropriations bill.

CRS-4
Facts and Figures: Congressional Action on the
FY2007 Defense Budget Request
The following series of tables show congressional action on defense budget.
Additional details will be added as congressional action proceeds.
Table 2 shows congressional action on the FY2007 appropriations bills that
provide funding for the Department of Defense. These are (1) the defense
appropriations bills in the House and the Senate (H.R. 5631) and (2) the military
quality of life/Veterans Affairs appropriations bill in the House and the military
construction/VA bill in the Senate (both H.R. 5385). The House military quality of
life/VA appropriations bill includes about $42 billion for Military Personnel and for
Operation and Maintenance accounts that are provided in the defense appropriations
bill in the Senate. Table 2 shows the total in these accounts by bill.
While this table shows all appropriations for the Department of Defense, it does
not show funding provided in other appropriations bills for defense-related activities
of other agencies. The largest amount of non-DOD defense-related funding is for
Department of Energy nuclear weapons programs, for which the Administration has
requested about $17 billion in FY2007. Funding for DOE defense programs is
provided in the annual energy and water appropriations bill (H.R. 5427).

CRS-5
Table 2. FY2007 Department of Defense Appropriations,
House and Senate Action by Bill and Title
(budget authority in billions of dollars)
House
Senate
Senate
Conf
FY2006
House
Versus
Senate Comm.
Versus
Versus
Enacted Request
House Request Request
Rept’d Request
Conf. Request
Department of Defense Appropriations Bill, H.R. 5631
Military Personnel
96.0
86.1
84.9
-1.2
99.6
99.0
-0.6


Operation and Maintenance
122.4
122.4
120.5
-1.9
130.1
126.3
-3.8


Procurement
75.8
82.9
81.8
-1.1
82.9
81.0
-1.9


RDT&E
71.4
73.2
75.3
2.2
73.2
73.0
-0.2


Revolving and Management Funds
2.2
2.4
2.4

2.4
2.0
-0.4


Other Defense Programs*
22.5
2.4
2.4

23.4
23.8
0.4


Related Agencies
0.7
0.9
0.9

0.9
0.9
0.0


General Provisions
-2.2
0.1
-1.9
-2.0
0.1
-2.5
-2.6


Total Regular Appropriations
388.9
370.4
366.3
-4.1
412.6
403.5
-9.1


Additional Appropriations for War
50.0
50.0
50.0

50.0
64.9
14.9


Total with Additional for War
438.9
420.4
416.3
-4.1
462.6
468.4
5.8


65+ Retiree Medical Accrual**
10.7
11.3
11.3

11.3
11.3



Total Regular w/ Accrual
399.6
381.7
377.6
-4.1
423.9
414.8
-9.1
Total w/ War and Accrual
449.6
431.7
427.6
-4.1
473.9
479.7
5.8
DOD Programs in Military Quality of Life/VA and Military Construction/VA Appropriations Bills,
H.R. 5385

Military Construction
9.6
12.6
11.9
-0.7
12.6
12.3
-0.3


Family Housing
4.5
4.1
4.0
-0.1
4.1
4.0
-0.1


Basic Allowance for Housing

13.5
13.5






Facilities Sustainment

6.2
6.2






Environmental Restoration

1.4
1.4






Defense Health Program

21.0
21.0






Total Department of Defense
14.0
58.9
58.1
-0.8
16.7
16.3
-0.4
Grand Total in Defense and Military Construction Appropriations Bills
Total Regular Appropriations
413.6
440.6
435.7
-4.9
440.6
431.1
-9.5
Total With Additional for War
463.6
490.6
485.7
-4.9
490.6
496.0
5.4
Totals may not add due to rounding.
Source: Office of Management and Budget, House and Senate reports on respective bills.
Notes:
*Other Defense Programs include Defense Health, Drug Interdiction, Chemical Weapons Demilitarization, and DOD Inspector
General in the Senate bill and all but Defense Health in the House bill. In DOD briefing charts, Chemical Weapons
Demilitarization is shown in Procurement and the other accounts are shown in Operation and Maintenance.
**Annual funding for accrual payments by DOD for age-65-and-over Medicare-eligible military retirees is considered a
permanent appropriation. The amounts to be contributed to military retirement funds for the cost of these benefits are not
technically subject to annual appropriations, but they are scored as DOD discretionary funds and count against the defense
subcommittee’s 302(b) allocation and against the total amount of discretionary funds available for appropriation.

CRS-6
Table 3 shows congressional action on the House and Senate versions of the FY2007
defense authorization bill by title. It is important to note that the authorization bill
does not directly provide funds for most defense programs (the exception being some
mandatory programs). Rather, it authorizes the appropriation of funds. In the
appropriations bills, Congress may provide more than, less than, or the same as the
amounts authorized to be appropriated, and it may provide funds for programs never
specifically mentioned in authorization bills or associated report language.
Table 3. FY2007 National Defense Authorization,
House and Senate Action by Title, H.R. 5122, S. 2766
(budget authority in billions of dollars)
House
Senate-
Senate
Conf.
House
House-
Versus
Senate
Comm.
Versus
Versus
Request
Passed Request Request
Rept’d Request
Conf. Request
Military Personnel
110.8
109.8
-1.0
110.8
112.0
+1.3


Operation & Maintenance
130.1
129.8
-0.3
130.1
129.5
-0.6


Procurement
84.2
85.9
+1.7
82.9
85.7
+2.8


RDT&E
73.2
74.1
+0.9
73.2
74.2
+1.0


Military Construction
12.6
13.0
+0.4
12.6
13.2
+0.6


Family Housing
4.1
4.1
-0.0
4.1
4.1
-0.0


Revolving & Management
2.4
2.5
+0.1
2.3
2.3
0.0


Other Defense Programs*
22.2
22.4
+0.3
23.4
23.3
-0.1


Mandatory Programs
1.9
1.9
-0.0
1.9
2.9
+1.0


Rescissions/Inflation Savings

-1.8
-1.6
0.0
-1.0
-1.0


Total Department of Defense
441.5
441.7
+0.2
441.5
446.5
+4.9


Atomic Energy Defense Activities
17.0
16.5
-0.5
17.0
16.4
-0.6


Other Defense-Related Activities
4.8
4.7
-0.0
4.8
4.7
-0.0


Total National Defense
463.3
462.9
-0.4
463.3
467.7
+4.4


Emergency Authorization
50.0
50.0
0.0
50.0
50.0
0.0


Total Including Emergency
513.3
512.9
-0.4
513.3
517.7
+4.4


Totals may not add due to rounding.
Source: Office of Management and Budget; H.Rept. 109-452, S.Rept. 109-254.
*Note: Other Defense Programs include Defense Health Program; Drug Interdiction; Chemical Weapons
Demilitarization; and Office of the Inspector General.

CRS-7
Table 4 shows congressional recommendations for defense budget authority and
outlays in versions of the annual budget resolution — S.Con.Res. 83 as passed by the
Senate and H.Con.Res 376 as passed by the House. These amounts are not binding
on the appropriations committees, however.
Table 4. Congressional Budget Resolution, Recommended
National Defense Budget Function Totals
(billions of dollars)
FY2007*
FY2008
FY2009
FY2010
FY2011
Administration Request
Budget Authority
513.0
485.2
505.3
515.3
526.1
Outlays
527.4
494.4
494.3
507.4
522.7
Senate Budget Committee Reported
Budget Authority
545.4
481.7
501.8
511.9
522.8
Outlays
550.5
514.8
508.1
511.2
521.9
Senate Passed
Budget Authority
549.4
483.0
502.8
512.9
523.9
Outlays
554.5
516.0
509.1
512.2
523.0
House Budget Committee Reported
Budget Authority
512.9
484.7
504.8
514.9
525.8
Outlays
534.9
505.5
505.9
512.6
524.9
Sources: Office of Management and Budget; S.Con.Res. 83; H.Con.Res. 376.
*Note: For FY2007, the Administration request includes $50 billion for a planned budget amendment
for overseas operations. The Senate recommended levels for FY2007 assume $82 billion for overseas
operations. The House committee-reported level assumes $50 billion, as in the request.
Table 5 shows the Administration’s FY2007 national defense request, by
appropriations title, separating discretionary and mandatory amounts. The total for
FY2006 includes a $70 billion placeholder for supplemental appropriations. The
final FY2006 supplemental appropriations bill, however, H.R. 4239, which was
signed into law on June 15, P.L. 109-234, provides $67.7 billion for national defense
programs, $2.3 billion less. The total for FY2007 includes a $50 billion placeholder
for a budget amendment for overseas operations. If the $50 billion placeholder is
removed, the total discretionary request for the Department of Defense is $439.3
billion. This was the amount most often referred to in DOD press releases as the
FY2007 Department of Defense request when the budget was released in February.

CRS-8
Table 5. Administration Request for National Defense for
FY2007, Budget Authority, Discretionary and Mandatory
(billions of dollars)
2005
2006
2007
Actual
Estimate
Request
National Defense Discretionary (Function 050)
Department of Defense — Military Discretionary (Subfunction 051)
Military personnel
119.7
113.5
110.8
Operation and maintenance
178.6
177.7
152.0
Procurement
96.6
86.2
84.2
Anticipated funding for the Global War on Terror*

70.0
50.0
Research, development, test and evaluation
68.8
71.0
73.2
Military construction
7.3
8.9
12.6
Family housing
4.1
4.4
4.1
Revolving, management, and trust funds and other
3.8
4.8
2.4
Total, Department of Defense — Military
478.9
536.6
489.3
Discretionary
Atomic Energy Defense Activities (Subfunction 053)
Department of Energy defense-related activities
17.0
16.2
15.8
Formerly utilized sites remedial action
0.2
0.1
0.1
Defense nuclear facilities safety board
0.0
0.0
0.0
Total, Atomic Energy Defense Activities Discretionary
17.2
16.4
16.0
Defense-Related Activities (Subfunction 054)
Federal Bureau of Investigation
1.2
2.3
2.3
Other discretionary programs
2.4
3.0
2.2
Total, Defense-Related Activities Discretionary
3.7
5.3
4.5
Total, National Defense Discretionary
499.8
558.3
509.7
National Defense Mandatory (Function 050)
Department of Defense — Military Mandatory (Subfunction 051)
Concurrent receipt accrual payments
1.5
2.3
2.4
Research, development, test, and evaluation


0.3
Revolving, trust and other DoD mandatory
5.0
0.8
0.8
Offsetting receipts
-1.5
-1.6
-1.5
Total, Department of Defense — Military Mandatory
5.0
1.5
1.9
Atomic Energy Defense Activities Mandatory (Subfunction 053)
Energy employees occupational illness compensation
0.7
1.7
1.0
program and other
Defense-Related Activities Mandatory (Subfunction 054)
Radiation exposure compensation trust fund
0.1
0.1
0.0
Other mandatory programs
0.2
0.2
0.3
Total, Defense-Related Activities Mandatory
0.3
0.3
0.3
Total, National Defense Mandatory
6.0
3.6
3.3
Total, National Defense (Function 050)
505.8
561.8
513.0
Source: Office of Management and Budget, Analytical Perspectives: Budget of the U.S. Government,
FY2007
, Table 27-1.
*Note: These are placeholder amounts for a request for supplemental appropriations for FY2006 and
for a budget amendment for FY2007, not yet submitted. The final FY2006 supplemental provided
$67.7 billion for national defense programs.

CRS-9
Overview of the Administration Request
On February 6, 2006, the White House formally released its FY2007 federal
budget request to Congress. The request included $513.0 billion in new budget
authority for national defense in FY2007, of which $50 billion was a placeholder for
a later budget amendment to cover costs of overseas military operations, $441.2
billion was for regular operations of the Department of Defense (DOD), $17.0 billion
was for Department of Energy (DOE) nuclear weapons programs, and $4.8 billion
was for defense-related activities of other agencies (see Table 5 above).
The $50 billion placeholder is not intended to cover the full costs of military
operations in Iraq, Afghanistan, and elsewhere in FY2007. Rather, it is a “bridge
fund” to cover costs in the initial months of FY2007. Remaining costs for the rest
of the year will, if Congress agrees, be covered by a later supplemental appropriations
bill.1
Along with the FY2007 budget request, the Pentagon released the results of the
congressionally-mandated Quadrennial Defense Review (QDR) of defense policy.
The year-long QDR was not a budget exercise, but it identified the kinds of military
capabilities that senior DOD officials believe should be emphasized in years to come,
and it endorsed a few budget decisions that were reflected in the FY2007 DOD
request to Congress.
Highlights of the FY2007 Defense Budget Request
Aspects of the Defense Department’s FY2007 request that appear to be of most
immediate concern to Congress include:
(1) The Administration continues to request large amounts for Iraq
and Afghanistan through “additional” or “emergency supplemental”
appropriations not subject to limits on total discretionary federal
spending and not subject to the full congressional authorization and
appropriations review process.
In the FY2007 budget, the Administration has,
for the first time, requested part of the funding to carry on military operations in Iraq
and Afghanistan before the start of the fiscal year in the form of a $50 billion budget
amendment to the FY2007 request. In this, the Administration has followed
Congress’s lead — Congress provided a “bridge fund” of $25 billion for Iraq and
Afghanistan in the FY2005 defense appropriations bill and of $50 billion in FY2006.
1 On its own initiative, Congress provided a $25 billion bridge fund in the FY2005 defense
appropriations act and a $50 billion bridge fund in FY2006. In each year, the White House
later requested additional supplemental funds. In February 2006, the Defense Department
requested $67 billion for overseas military operations in FY2006 in addition to the $50
billion appropriated last fall and $5 billion for DOD for domestic disaster costs. In the
FY2006 supplemental appropriations act, H.R. 4939, P.L. 109-234, Congress provided $66.0
billion for overseas operations and $1.7 billion for DOD domestic disaster relief and repair.
For a full discussion of the FY2006 supplemental, see CRS Report RL33298, FY2006
Supplemental Appropriations: Iraq and Other International Activities; Additional Katrina
Hurricane Relief
, Paul M. Irwin and Larry Nowels, coordinators.

CRS-10
By submitting a budget amendment, the Administration gains a more direct and
formal voice in proposing how to allocate the additional funds. The Administration
will continue, however, to request more additional funding in an emergency
supplemental appropriations bill to be submitted next year. Both the “bridge fund”
and later supplemental appropriations will be requested over and above proposed
limits on overall discretionary spending.
The key point remains this: Either in the form of a bridge fund or of emergency
supplemental appropriations, the Administration is requesting that additional war
funding not count against restrictive caps on regular annual defense and non-defense
appropriations. War expenditures, however, have become a very large part of total
annual defense spending, and, for that matter, of total defense and non-defense
appropriations. For FY2006, Congress approved a $50 billion bridge fund for war
costs last fall, and, in June of 2006, it approved additional supplemental
appropriations of $66 billion, for a total of $116 billion. A few comparisons may
help put this amount into perspective.
! Regular DOD appropriations for FY2006 were $411 billion, so the
$116 billion for war increases defense funding by 28%.
! In last year’s budget resolution, the FY2006 cap on total “non-
emergency” appropriations, both for defense and for non-defense
programs, was $843 billion, which was subsequently trimmed by 1%
to $835 billion. The $116 billion for war adds 14% to federal
discretionary funding.
! At the end of last year’s budget cycle, Congress imposed an across-
the-board cut of 1% in all appropriations bills, which trimmed
federal spending by $8.4 billion, 7% of the amount it is providing for
war costs.
An equally important point is that DOD requests for “additional” or
“emergency” war appropriations are not subject to nearly the extent of review that
Congress exercises over regular defense spending. The Administration decision to
submit a budget amendment for a bridge fund is, at most, only a limited step in the
direction of greater oversight. The amendment has not been submitted in advance
of House action on the FY2007 defense authorization bill. Moreover, neither
supplemental appropriations requests nor budget amendments are supported by the
kind of detailed budget justification material that Congress expects to be provided
with regular DOD funding requests. In part because of that, there appears to be a
growing sentiment in Congress to the effect that full funding for ongoing military
operations should be considered through the regular, annual defense authorization
and appropriations process.


CRS-11
Figure 1. DOD Discretionary Budget Authority, FY2000-FY2011,
Excluding Supplementals
(2) The regular DOD appropriations request for FY2007 is for $439.3
billion, $28.5 billion above the FY2006 enacted amount, an increase of
7%.
Viewed in this way, the FY2007 budget appears to carry on the substantial
defense buildup that has been underway for the past several years. But the story is
a bit more complicated than that. The increase appears so large in part because
Congress cut the FY2006 request by $8.5 billion — a $4.4 billion cut in the regular
process and an additional across-the-board reduction of $4.1 billion at the end of the
appropriations process.2 Moreover, in an effort to stay within tight limits on overall
appropriations for FY2007, the Office of Management and Budget trimmed DOD’s
FY2007 budget by $3.8 billion compared to the amount that was planned last year
for FY2007. Out-year budget projections for the regular defense budget show
spending leveling off to very modest rates of growth. The average increase between
FY2005 and FY2011 is 1.7% per year above inflation, far below the 5% per year
growth between FY2001 and FY2005 (see Figure 1).
That said, when additional and supplemental appropriations for war are
included, total defense spending is continuing to grow. The total increase in defense
between FY2005 and FY2006 will be about $56 billion if Congress approves the
pending FY2006 supplemental. The increase between FY2006 and FY2007 could
be as great.
2 For a full discussion, see CRS Report RL32924, Defense: FY2006 Authorization and
Appropriations
, by Stephen Daggett.

CRS-12
So, the summary story line might be termed the “tale of two budgets.” The
budget is getting very tight for programs that are funded strictly within the regular
defense budget — military service officials have testified that the congressional cuts
in the FY2006 defense budget are requiring substantial reductions in some
operations. At the same time, supplemental appropriations are soaring, and money
is readily available for programs that are tied to the war effort.
(3) The Administration’s FY2007 request rejects congressional
proposals to increase Army and Marine Corps end-strength and cuts
Air Force and Navy personnel levels.
For FY2006 Congress authorized
active duty end-strength of 512,400 for the Army of 179,000 for the Marine Corps.
By the end of FY2007, however, the Defense Department plans to restore Army and
Marine Corps end-strength to the pre-FY2004, pre-Iraq, “base-line” level — 482,400
for the Army, which is 30,000 troops lower than the current authorization, and
175,000 for the Marine Corps, which is 4,000 lower. Many Members of Congress
have urged that the current authorized levels be made permanent in order to ease the
pace of operations on ground forces. The Administration vigorously opposes a
permanent increase, however, arguing that costs are high and that forces can be
organized more efficiently to provide required combat troops.
Meanwhile, the Air Force plans to eliminate at least 40,000 full-time equivalent
positions over the next five years through a mixture of reductions in active duty,
reserve, and civilian personnel. And the Navy is cutting 12,000 active duty personnel
between FY2006 and FY2007. Though no additional Navy cuts have been
announced formally, it is widely expected that the Defense Department will trim an
additional 20,000 or so positions from the Navy over the next few years.
(4) The Administration’s FY2007 request provides funds for 333,000
Army National Guard (ARNG) troops rather than the 350,000 authorized
and reflects a decision to reduce the number of combat brigades in the
ARNG from 34 to 28.
The Army has been unable to recruit and retain enough
troops in the National Guard to reach its authorized end-strength. In the FY2007
request, the Army has requested funding only for 333,000 troops, though, after the
budget was released, Army officials said that they would shift money into personnel
and other related accounts if recruitment and retention improves. In its future plans,
however, the Army projects ARNG end-strength of 333,000.
A more controversial issue is the Army plan to reduce the number of new,
modularized ARNG combat brigades. As Army officials explain, the purpose of the
change is to fully man the new brigades within authorized ARNG end-strength and
to fully equip the combat units within available budget constraints. The change will
likely mean that ARNG units in some states that will not, as had been planned, be
outfitted as new, more capable combat brigades, will lose personnel. The units that
remain, therefore, will also likely have less ability to carry out state disaster response
and homeland defense missions. As a result, state governors and some National
Guard leaders have been very critical of the plan.
(5) The FY2007 request includes only a modest 2.2% pay raise for
troops and proposes increases in medical care fees and co-pays for
under-age-65 military retirees.
Since 1999, Congress has approved substantial

CRS-13
increases in military pay and benefits. Compared to economy-wide indices,
uniformed military personnel now cost as much as 33% more, above inflation, than
in the late 1990s.3 In the FY2007 budget, the Administration is proposing measures
to rein in the growth of pay and benefits. The proposed 2.2% military pay raise is the
lowest since 1994. And the Administration has proposed increasing fees and co-pays
for under-age-65 military retirees who are eligible for medical care through the
military Tricare program. This is the first proposed increase in medical co-pays since
the current Tricare medical care system for retirees and dependents was established
in 1995.
(6) The FY2007 request proposes a few reductions in major
weapons programs, some of which have been controversial in
Congress.
With the Defense Department carrying out its Quadrennial Defense
Review in 2005, many expected some substantial changes in long-term budget
priorities, including some cuts in major weapons programs. The QDR did not,
however, make many far-reaching changes in on-going programs, and only a few
reductions in weapons plans are reflected in the FY2007 budget request. Two have
so far been controversial in Congress —
! A decision to halt procurement of the C-17 cargo plane in FY2007
after buying 180 of the aircraft since the program began in the mid-
1980s; and
! A decision to drop plans to develop and buy engines for the F-35
joint strike fighter from two manufacturers and, instead, just to buy
engines from one company.
(7) The Quadrennial Defense Review did not result in decisions on
major, ongoing defense budget and program-related issues. The official
Department of Defense report on the 2005-2006 Quadrennial Defense Review,4
which was released along with the Administration’s budget request in February,
stated plainly that the year-long QDR exercise was not intended to be a systematic
assessment of major defense programs. Instead, it was designed to provide a vision
of the national security challenges facing the nation and to identify the kinds of
military capabilities that are needed.
True to its word, the QDR report announced very few major program decisions,
though it did mention some. Perhaps the most significant is to add 15,000 special
operations troops, though without increasing overall military end-strength. For the
most part, the QDR report simply endorsed ongoing initiatives, though often with
wording carefully designed to keep options for policy-makers open. The result is to
leave undecided some very far-reaching defense policy issues.
! For the Navy, the QDR report endorsed increasing “green” and
“brown” water capabilities, construction of new prepositioning
3 For a discussion, see CRS Report RL32877, Defense Budget: Long-Term Challenges for
FY2006 and Beyond
, by Stephen Daggett.
4 Department of Defense, Quadrennial Defense Review Report, February, 2006. Available
at [http://www.defenselink.mil/qdr/report/Report20060203.pdf].

CRS-14
ships, 11 rather than 12 deployable aircraft carriers, construction of
two attack submarines per year at lower than current prices, and the
conversion of a number of Trident II submarine-launched missiles
to carry conventional (non-nuclear) warheads. But the report said
nothing about other naval force issues. Notably, it did not mention
the recently-released Navy shipbuilding plan for a combat fleet of
313 ships. Many question whether that plan is affordable.
! Regarding fighter aircraft acquisition plans in the Air Force, Navy,
and Marine Corps, the QDR report endorsed a revised Air Force
plan to stretch out F-22 procurement, but otherwise did not mention
the number of short-range fighter and ground attack aircraft needed
in the long term. The report put a great deal of emphasis on the need
for long-range, prompt, global strike capabilities. This may appear
to be at odds with plans to continue large investments in shorter-
range strike aircraft that may have limited access to areas of combat
in future conflicts, but the report did not address the issue.
! The report endorsed the Army’s plan to reorganize into more
deployable, modular combat brigades, but notably did not make an
explicit commitment to provide the full funding needed to
modularize all active and reserve combat units as the Army has
planned5. The report also endorsed the capabilities being developed
in the Army’s Future Combat System development program, but,
notably, did not explicitly endorse the program as a whole.
! The report said very little at all about satellites and other space
programs. The only mention of a space program was to endorse an
Air Force plan to restructure the Transformational Communications
Satellite (TSAT) program to incorporate less risky technology. Other
space programs have experienced problems like those in the TSAT
program, but these are not mentioned. Space programs overall have
grown dramatically as a share of the defense budget, and cost growth
in major programs has been pandemic. And a major policy issue is
how to protect space based systems from future threats and whether
the U.S. security will be advanced by developing offensive space
capabilities. The QDR discusses none of these issues.
Key Issues in Congress
Last year, congressional action on the annual defense authorization and
appropriations bills featured extensive debates, first, over policy toward treatment of
military detainees, and, toward the end of the year, over the pace of troop
withdrawals from Iraq. This year, a continued debate over Iraq policy reemerged in
congressional consideration of the FY2006 supplemental appropriations bill (H.R.
5 For an overview of Army modularization, see CRS Report RL32476, U.S. Army’s Modular
Redesign: Issues for Congress
, by Andrew Feickert.

CRS-15
4939). That debate was renewed first in the House on June 15-16, when the
leadership brought up a resolution (H.J.Res. 861) declaring “that it is not in the
national security interest of the United States to set an arbitrary date for the
withdrawal or redeployment of United States Armed Forces from Iraq.” The House
approved the resolution by a vote of 256-153.
The following week the Senate debated Iraq policy in floor action on the
FY2007 defense authorization bill. On June 22, the Senate rejected two amendments
on Iraq policy, one by Senator Levin calling for a phased reduction of troops to begin
this year (rejected by a vote of 39-60) and another by Senator Kerry calling for
withdrawal of most forces by July 1, 2007 (rejected by a vote of 13-86).
In addition to Iraq policy, other issues have emerged. What follows is a list of
selected issues that have come up as debate about the FY2007 defense budget has
progressed.
! Funding cuts in the regular FY2007 defense appropriations bill:
Last year, Congress trimmed $4.4 billion from the regular FY2006
defense appropriations bill and applied the money to non-defense
appropriations. Later, at the end of the process, Congress trimmed
defense appropriations by an additional $4.1 billion as part of an
across-the-board 1% cut in all appropriations, as an offset for
Katrina-related funding. This year, the Senate took a step to avoid
similar guns versus butter trade-offs in the FY2007 budget by adding
$3.7 billion to the budget resolution (S.Con.Res. 83) cap on total
discretionary spending. As last year, there appears to a considerable
amount of opposition in Congress to proposed cuts in non-defense
appropriations, and the defense bill may be seen as a source of
offsetting funds because of the amount of money available for
defense in emergency funding for overseas operations.
! Limits on emergency funding: The Senate-passed FY2007 budget
resolution (S.Con.Res. 83) puts a cap of $90 billion on total
emergency funding. War costs, including $50 billion that the
Administration plans to request as an attachment to the regular
FY2007 defense appropriations bill, plus a later emergency FY2007
supplemental request expected next February, together with requests
for funds for Katrina-recovery, bird flu, border security, agricultural
disaster relief, and other purposes, will almost surely exceed the cap
by a substantial amount. If Congress ultimately approves such a cap,
anything above $90 billion would require offsetting rescissions,
including, quite likely, cuts in regular defense funding.
! Providing full funding for overseas operations in regular defense
funding bills: Both last year and the year before, the Senate added
“Sense of the Senate” language to the defense appropriations bill
urging the Administration to request full funding for ongoing
military operations in the regular authorization and appropriations
bills. The Administration did not concur. But there appears to be
more support in Congress for that approach now. On June 14, the

CRS-16
Senate approved by 98-0 an amendment by Senator McCain to
require the President to request funding for Iraq in its regular, annual
budget submission.
! Army and Marine Corps end-strength: The Administration is
proposing ground force active duty end-strengths at the pre-2004
baseline level. Congress added 30,000 to Army and 4,000 to Marine
Corps end-strength in FY2006, and there appears to be a great deal
of support in Congress, particularly, but not only, among Democrats,
for a permanent end-strength increase.
! Funding for Army National Guard end-strength: The FY2007
Army request trims about $500 million from Army personnel
accounts and additional amounts from operation and maintenance
accounts to reflect a troop level of 333,000 in the Army National
Guard rather than the 350,000 authorized. Congress may mandate
a higher force level.
! 2.2% pay raise: Every year between 2001 and 2006, Congress
approved an increase in basic pay of ½% above the employment cost
index (ECI), a measure of the average growth of nationwide pay and
benefits. An increase of ECI + ½% was mandated for 2004, 2005,
and 2006 in the FY2004 national defense authorization act (P.L.
108-136). Now that provision has expired, and the normal pay raise,
established in Section 1009 of Title 37, U.S.C., is equal to the ECI.
The Administration, accordingly, has requested a pay raise equal to
the ECI, which, for calendar year 2007, is 2.2%. If approved, that
would be the lowest pay raise since 1994. There is considerable
sentiment in Congress to provide more.
! Increased TRICARE fees and co-pays for under-65 retirees: There
is also considerable sentiment in Congress against the Administration’s
proposed increases in fees and co-pays for TRICARE for retirees. The
Administration argues, however, that rising medical benefits threaten
to drive up military personnel costs substantially, and that concern has
gained some traction in Congress.6
! Flexibility for the Defense Department to provide support to
foreign nations: The Defense Department made a number of
legislative proposals to expand its flexibility to provide various
kinds of support to foreign nations that, in the past, have generally
been provided through foreign assistance programs. Several of these
proposals expand or make permanent temporary measures that
Congress has approved in bills providing funds for operations in Iraq
and Afghanistan. The most expansive DOD proposal is to permit
the Secretary of Defense, with the approval of the Secretary of State,
6 For a full discussion, see CRS Report RS22402, Increases in Tricare Fees: Background
and Options for Congress
, by Richard Best.

CRS-17
to use up to $750 million of defense funds per year to build the
capacities of foreign militaries to engage in counterterrorist
operations or to participate in or support stability operations in
which the United States is engaged.7
! Funding for National Guard and reserve equipment: Funding for
Guard and reserve units has become a more contentious issue in
recent years, particularly as states look to National Guard units as the
front line in possible homeland defense missions.
! Adding a representative of the Guard and reserve components
to the Joint Chiefs of Staff: Several Senators have sponsored a
bill to establish a 4-star rank reserve officer to serve on the JCS.
The services have opposed such a measure.
! Retiring an aircraft carrier: The Defense Department wants to
reduce the number of deployable aircraft carriers from 12 to 11. Last
year, Congress included a provision in the FY2006 defense
authorization act to prohibit such a reduction. Senator Warner, the
Chairman of the Senate Armed Services Committee, now supports
retiring a carrier, but there is still some opposition. The issue was
initially addressed in action on the FY2006 supplemental
appropriations bill, H.R. 4939, when Senator Warner proposed an
amendment to permit retirement of the U.S.S. Kennedy aircraft
carrier. That measure was not approved in the conference agreement
on the bill, however. As a result, the Senate addressed the issue in
the FY2007 appropriation authorization — see below.
! Halting C-17 production: The Defense Department did not request
funds for new C-17 cargo aircraft in FY2007, and instead asked for
funding only to terminate production after 180 aircraft have been
produced. The Air Force, however, included in its FY2007
unfunded priorities list (UPL) a proposal for 7 C-17s as
replacements for aircraft that may be worn out due to excessive
wartime use. Some legislators want to keep production lines open
for the foreseeable future.
7 DOD’s legislative proposals for inclusion in annual defense authorization bills are formally
sent to Congress by the DOD Office of Legislative Counsel. The FY2007 proposals are
posted on the internet at [http://www.defenselink.mil/dodgc/olc/legispro.html]. The proposal
for authority to build the capacity of foreign military forces is in the third package of
proposals, dated April 13, 2006. In the FY2007 National Defense Authorization Act, P.L.
109-163, Congress provided one-year authority for DOD to spend up to $200 million to build
the capacity of foreign militaries. DOD’s FY2007 legislative proposal would change the
FY2006 provision in some ways. It would make the authority permanent, it would increase
the maximum funding to $750 million, it would require concurrence of the Secretary of State
rather than of the President, and it would allow the waiver of provisions in other laws that
would otherwise prohibit assistance to specific countries or for specific purposes.

CRS-18
! B-52, F-117, and U-2 retirements: The Air Force has proposed
cutting the number of active B-52s from 94 to 56 and retiring F-117
stealth attack aircraft and U-2 reconnaissance planes. In the past,
Congress has repeatedly rejected Air Force proposals to retire B-52s.
! Stretching out F-22 procurement: The Air Force has requested
stretching out F-22 production almost until F-35 procurement
begins. The financing mechanism that it has proposed, however,
violates long-standing DOD and Office of Management and Budget
policy that requires full funding of complete end-items of equipment
in annual appropriations for procurement programs. The stretch-out
will increase total procurement costs, even though the Air Force
wants to negotiate a multi-year contract for the remaining
production. In the past, Congress has rejected Air Force proposals
that violate the full funding policy, though it has supported
incremental funding for more costly Navy ships.8
! Eliminating funds to develop a second engine supplier for the
F-35 Joint Strike Fighter: DOD has proposed eliminating
development of an alternate engine for the F-35. This would save
about $1.7 billion in development costs through FY2011, according
to the Air Force,9 but it would also eliminate the benefits of ongoing
competition between engine producers. Congress has held several
hearings on the issue. Even senior DOD officials testifying on the
matter have acknowledged being unenthusiastic about the proposal.
! A new refueling aircraft for the Air Force: While studies have
found that current KC-135 refueling aircraft remain reliable, the Air
Force wants a new tanker, arguing that possible corrosion of KC-135
air frames is a danger. Most recently, DOD has approved an initial
request for information from industry about tanker options, the first
step in acquiring a new aircraft.10
! Converting Trident II missiles to carry non-nuclear warheads:
The Quadrennial Defense Review placed a new, high priority on
capabilities to strike targets promptly at long range. In the short
term, DOD is proposing to convert several Trident II missiles to
carry non-nuclear warheads for rapid strike missions.11 Congress
8 For a full discussion, see CRS Report RL31404, Defense Procurement: Full Funding
Policy — Background, Issues, and Options for Congress
, by Ronald O’Rourke and Stephen
Daggett.
9 Jon Steinman and Tony Capaccio, “Pentagon Plans To Scrap F-35 Backup Engine, Cut
Costs,” Bloomberg.com, Dec. 29, 2005.
10 Megan Scully, “Air Force Launches Latest Effort To Replace Aging Tankers,” National
Journal Congress Daily PM
, Apr. 25, 2006
11 For a thorough discussion and extensive background on the program, see CRS Report
(continued...)

CRS-19
has balked at providing the funds requested for the program until it
can address key questions. In addition, beginning some time after
2015, DOD is proposing to build a new, long-range strike system,
which could be a manned or unmanned bomber.
! Satellite and other space program acquisition: For the past
several years, Congress has expressed its displeasure with large cost
growth and extensive schedule delays in a number of DOD space
programs. Congress has cut funds substantially and mandated
restructuring of some programs, including the Transformational
Communications Satellite (TSAT) and Space Radar programs. Press
accounts have also reported large changes in the highly classified
Future Imagery Architecture program.12 The Administration has
announced a plan to restructure the TSAT program to rely on less
risky technology.13 The continuing issue for Congress is whether
recent changes in space programs have reduced risk sufficiently and
how fast new programs should proceed.
! Missile defense funding and testing: Missile defense remains the
largest acquisition program in the defense budget. Congress has
been reluctant to cut funding in the past, though it has trimmed some
programs and defense committees have expressed concern about the
testing program. The Missile Defense Agency now deploying
ground-based interceptors in Alaska though the deployed system has
not been tested as an integrated whole. One issue for Congress may
be whether to tie funding to the test program.
! Acquisition reform: Last year, Congress approved a measure
intended to improve tracking of cost growth in weapons programs
by requiring that the Defense Department report changes compared
to original estimates of the costs rather compared to periodically
rebaselined program estimates. The result has been to show a
substantial number of acquisition programs with cost growth
exceeding or approaching levels that would trigger a program review
under the requirements of the Nunn-McCurdy amendment. Last
11 (...continued)
RL33067, Conventional Warheads For Long-Range Ballistic Missiles: Background and
Issues for Congress
, by Amy F. Woolf. Also see Michael R. Gordon, “Pentagon Seeks
Nonnuclear Tip For Sub Missiles,” New York Times, May 29, 2006, pg. 1.
12 Andy Pasztor, “U.S.’s Lofty Plans For Smart Satellites Fall Back To Earth: Big Delays
and Cost Overruns Give Washington Pause; Technical Setbacks Loom; Reconsidering 1970s
Designs,” Wall Street Journal, Feb. 11, 2006, pg. 1.
13 The Government Accountability Office raised some questions about the restructured
program — Government Accountability Office, Space Acquisitions: DOD Needs Additional
Knowledge as it Embarks on a New Approach for Transformational Satellite
Communications System
, GAO-06-537, May 24, 2006, available on line at
[http://www.gao.gov/cgi-bin/getrpt?GAO-06-537].

CRS-20
year Congress rejected, however, a requirement that programs with
excessive cost growth be reevaluated compared to alternatives.
Congressional Action on Major Issues
Bill-by-Bill Synopsis of Congressional Action to Date
Congressional Budget Resolution. In March, Congress began action on
the annual congressional budget resolution, but did not reach a conference agreement.
In its place both the House and the Senate approved measures “deeming” a cap of
$827.8 billion on total discretionary funds to be in place. For amounts recommended
for national defense in the House and Senate resolutions, see Table 4 above.
The Senate Budget Committee reported its version of the budget resolution on
March 10, and the full Senate approved the measure, S.Con.Res. 83, with
amendments, on March 16. The committee recommended a level of defense
spending about $3.7 billion below the Administration request. In floor action, the
Senate adopted amendments that added $4 billion to the recommended defense total.
The Senate also approved an amendment by Senator Lott to add $3.7 billion to the
enforceable cap on total discretionary funding. This was intended to avoid cuts in
defense appropriations as offsets for higher levels of non-defense spending.
The Senate measure also put a limit of $90 billion on total emergency funding
in FY2007, which is substantially below the amount that appears likely to be
requested to finance ongoing military operations and domestic disaster-response
commitments. This effort in the Senate to place constraints on emergency spending
may be a harbinger of battles later in this year’s appropriations process and in next
year’s budget debate.
The House Budget Committee reported its version of the budget resolution,
H.Con.Res. 376, on March 31. The committee measure recommended the
Administration-requested level of defense spending. The leadership did not bring
the measure to the floor in April in the face of internal Republican opposition. In
May, however, Republicans agreed on a measure that may provide room for a
substantial increase in funding for some domestic discretionary programs while
officially still adhering to the Administration’s proposed cap on total discretionary
spending. The House passed the revised measure on May 18 after rejecting several
alternative budget resolutions. The House resolution includes a cap only on non-
defense emergency funding.
FY2007 National Defense Authorization. The House Armed Services
Committee marked up its version of the FY2007 defense authorization bill, H.R.
5122, on May 3, and the House passed the measure on May 11. Highlights of the
committee’s bill and of floor action follow.
The Senate Armed Services Committee marked up its version of the bill,
S. 2766, on May 4 and reported it on May 9. Floor action in the Senate began on

CRS-21
June 12, and the Senate passed by measure on June 22. Highlights of the
committee’s bill and of floor action follow.
Table 3, above, shows the amounts authorized in each version of the defense
authorization bill by title. Tables A4 and A5 in the Appendix to this report compare
House and Senate authorized funding for selected major weapons programs.
It is important to note, however, that the annual defense authorization act does
not provide funding for these programs, only the appropriations acts do. The
appropriations acts may provide more, less, or the same as the amounts authorized
for various programs; may provide money for programs not authorized, including
new starts of programs; and may put restrictions on the use of funds that are not in
the authorization or that are at odds with provisions in the authorization.
FY2007 Defense Appropriations. The House Appropriations Committee
marked up its version of the FY2007 defense appropriations bill, H.R. 5631, on June
13, and the full House debated and approved the measure on June 20. The Senate
Appropriations Committee marked up its version of the bill on July 20. Table 2,
above, shows funding provided in the bill and in the Military Quality of Life/VA
appropriations bill in the House and in the Military Construction/VA bill in the
Senate.
The Senate Appropriations Committee marked up and ordered to be reported its
version of the FY2007 defense appropriations bill, also H.R. 5631, on July 20.
FY2007 Defense Authorization — Highlights of the House
Armed Services Committee Bill

Among the very broad range of issues that the House authorization bill
addresses, a few major points stand out. One is that the House Armed Services
Committee appears to have put somewhat more emphasis than DOD on maintaining
current military capabilities than on pursuing long-term defense transformation. This
is particularly true for some programs in which the risk of delays and cost growth in
weapons development appears high. The committee seems more inclined to support
the current Army modularization program, for example, than to continue investing
increasing amounts in the Future Combat System. Similarly, the committee slightly
trimmed higher risk missile defense technologies in favor of more immediately
deployable systems. And the committee continued, as it has in past years, to cut
funding for satellite programs that may be seen as reaching too far ahead with
technologically risky approaches, though cuts in the Transformational
Communications Satellite (TSAT) and the Space Radar were not nearly as large as
congressional cuts in the past two years.
Another key point is that the committee supports larger Army, Marine Corps,
and Army National Guard force levels than the Administration wants. This may be
a major policy issue this year, and it has very large long-term budget implications.
Also, as in the past, the committee has been reluctant to support proposed cuts
in weapons programs. It did not agree to halt production of the C-17 cargo aircraft,

CRS-22
for example, and it restored funds to develop an alternative, second engine supplier
for the F-35 Joint Strike Fighter.
The committee also did not fully support Administration proposals to rein in the
cost of personnel pay and benefits, and it added a substantial new health benefit for
reservists. The committee increased the proposed military pay raise from 2.2% to
2.7%, it rejected the DOD proposal to reduce health care costs by increasing under-
65 retiree medical fees and co-pays, and it made all reservists, except federal
employees covered by the government health insurance program, eligible to enroll
in the TRICARE medical insurance program with a fee of 28% of the cost. The
committee did approve one measure to increase co-pays for some prescription drug
purchases.
Significantly, the Committee did not approve a number of Administration
proposals to give regional combatant commanders greater authority — and resources
— to build the capabilities of foreign military forces. The Senate Armed Services
Committee, in contrast, approved most of the Administration’s proposals, although
with some restrictions.
Finally, the committee slowed down two programs that might be seen to have
negative international diplomatic consequences — one to develop a laser that might
be used as an anti-satellite weapon and the other a high-profile Administration
proposal to convert some Trident II missiles to carry conventional (non-nuclear)
warheads.
Highlights of committee action include:
! $50 billion bridge fund for overseas operations: The committee
approved $50 billion in emergency funding for costs of military
operations in Iraq, Afghanistan, and elsewhere in FY2007. In
FY2006, total costs of overseas operations were almost $120 billion,
so average monthly $12 billion. If that rate continues, the bridge
fund will cover costs for the first five months of FY2006 — that is,
through January, 2007. Additional funds will then be needed to
cover costs for the remaining seven months of the year.
! Ground force end-strength: The committee bill increases Army
end-strength by 30,000 (to 512,400), and Marine Corps end-strength
by 5,000 (to 180,000). The bill also authorizes funding for an end-
strength of 350,000 for the Army National Guard, 17,000 above the
request. End-strength may be a major dispute between Congress and
the Administration this year.
! Pay raise: The bill provides a pay raise of 2.7% for uniformed
personnel, rather than the 2.2% requested.
! Tricare fees and co-pays for under-65 retirees: The bill rejects
increases in retiree fees and co-pays through December 31, 2007 and
establishes a task force to consider ways to control DOD medical
costs.

CRS-23
! Tricare for reservists: The committee added an amendment in full
committee markup to allow all reservists — except federal
employees eligible for the government health insurance system —
to enroll in Tricare by paying 28% of the cost of the program (the
same cost share as federal employees pay). Last year, in the
conference on the FY2006 authorization bill, Congress rejected a
similar Senate amendment. Instead, Congress made Tricare
available, with a fee of 50% of the cost, to reservists who were
unemployed or who did not have access to employer-provided health
insurance. This is especially significant because the House has now,
for the first time, approved Tricare for reservists in its version of the
defense authorization — the Senate has approved it for the past two
years.
! Budget scoring of TRICARE-for-Life costs: In the FY2001
national defense authorization act, P.L. 106-398,Congress made
over-65 military retirees eligible to receive medical care through the
DOD TRICARE program as a supplement to Medicare. This has
proved to be an expensive increase in benefits. In FY2007, the DOD
budget includes more than $11 billion for contributions to the
Medicare Eligible Retiree Health Care Fund to cover the actuarially
determined cost of future benefits for current uniformed personnel.
In the FY2005 defense authorization, P.L. 108-375, Congress
approved a measure intended to count those costs not as expenses of
the Defense Department, but as costs to the general treasury. The
provision expressed the sense of Congress that the shift in costs
should not reduce the defense budget, but should, instead, permit an
increase in funding for weapons programs and other defense
priorities. The Office of Management and Budget (OMB), however,
continued to score the contributions as discretionary funds in the
Department of Defense budget, though as permanent rather than as
annual appropriations.14 OMB also urged the chairmen of the House
and Senate Budget Committees to direct the Congressional Budget
Office to score the contributions in the same way, and both chairmen
agreed. In its version of the FY2007 authorization, the House
Armed Services Committee included a provision directly mandating
that the costs of TRICARE-for-Life contributions not be scored as
part of the DOD budget after FY2007.
! Death gratuity for federal civilian personnel: The bill provides
the same death gratuity for civilian personnel killed in support of a
military operation as for uniformed personnel. The FY2006
National Defense Authorization Act (P.L. 109-163) increased the
military death gratuity from $12,000 to $100,000.
14 For OMB’s rationale, see Office of Management and Budget, Analytical Perspectives:
Budget of the U.S. Government, FY2006
, Chapter 6, pp. 422-425, on line at
[http://www.whitehouse.gov/omb/budget/fy2006/pdf/spec.pdf].

CRS-24
! Funding for readiness: The committee objected to cuts in ship
steaming days, flying hours, and depot maintenance and shifted $856
million from other programs in service operation and maintenance
accounts to finance increases in these readiness-related activities.
! Army Future Combat System development: The committee
expressed concern about cost growth, schedule delays, and the long-
term affordability of the FCS program, cut $326 million from the
$3.7 billion requested, and mandated a formal DOD review of
program with a go/no go decision to be made by the end of 2008.
! Army modularization: The committee expressed concern about the
affordability of the Army’s program to build a new modular brigade-
centered force structure in view of potentially competing costs of the
FCS and of resetting the force after Iraq. The committee added
funds for M-1 tank and Bradley Fighting Vehicle upgrades, saying
that these programs were required to support modularization. It also
required the Army to provide a long-term funding profile.
! Guard and reserve equipment: The committee added $318 million
for Army National Guard (ARNG) equipment to support its addition
of 17,000 to ARNG end-strength.
! Navy shipbuilding: The committee added $400 million in advance
procurement to support building two Virginia-class submarines in
FY2009, rather than the one now planned. The committee also
mandated a submarine fleet of 48 boats, which is what the Navy
currently plans. The committee also approved funding for 2 DD(X)
destroyers and provided that contracts may be signed simultaneously
with two shipyards. Last year, the committee had proposed
eliminating the DD(X). Notably, the committee rejected an
amendment in the full committee markup by Representative JoAnne
Davis to provide advance funding for common long-lead items for
three new aircraft carriers. Though the committee appears to support
the Navy’s 313 ship plan, it does not seem ready to lock in funding
for some aspects of the Navy program.
! F-22 procurement profile: The committee rejected the Air Force
plan for incremental procurement of the F-22 and added $1.4 billion
in FY2007 ($2 billion was requested) to cover the full cost of buying
20 complete aircraft.
! F-35 alternate engine and development concurrency: The
committee rejected the Air Force proposal to halt development of an
alternate engine for the F-35 Joint Strike Fighter and added $408
million for second engine R&D. The committee also trimmed $241
million from long-lead funding for aircraft to be procured in
FY2008, citing excessively concurrent development and
procurement in the program.

CRS-25
! C-17 procurement: The committee added $300 million for three C-
17s, which would keep production lines open. The committee also
required the Air Force to operate at least 299 heavy-lift cargo
aircraft. So the committee would mandate at least seven more C-
17s.
! B-52 and U-2 retirements: The committee prohibited any B-52
retirements until a replacement capability is available (which is not
planned until some time after 2015) and prohibited retirement of any
U-2s unless DOD certifies that the aircraft are not needed to mitigate
any reconnaissance gaps identified in the Quadrennial Defense
Review.
! Missile defense: The committee cut a net total of $185 million from
missile defense R&D. It added $20 million for ground-based mid-
course defense (GMD) testing and $40 million for Navy ship-based
interceptor systems. It cut $100 million from the boost-phase
Kinetic Energy Interceptor (KEI) program, $56 million for activating
a third GMD site in Europe since no site has been agreed to, $65
million from the multiple kill vehicle program, and $41 million for
a high-altitude airship sensor program. The committee also
prohibited expenditure of $200 million for the GMD program until
the system has completed two successful intercept tests. The
committee also included a policy provision requiring a report on the
purpose, costs, vulnerability, and international diplomatic
implications of space-based interceptors.
! Space systems: The committee cut $80 million from the
Transformational Communications Satellite (TSAT) program and
$30 million from the Space Radar, reflecting continued
congressional concern about technical risks in both programs. The
committee provided $20 million and established a new office to
promote development of new, low-cost, rapidly deployable satellites.
! Anti-satellite weapons: The committee included a policy provision
that prohibits the use of funds to develop laser space technologies
for anti-satellite weapons. This provision may be a response to Air
Force development of such capabilities at a laser and optics test
facility in New Mexico.15
! Trident II missile conversion: The committee included a policy
provision requiring consultations with allies about the Quadrennial
Defense Review decision to convert Trident II missiles to carry
conventional warheads.
15 William J. Broad, “Administration Conducting Research Into Laser Weapon,” New York
Times
, May 3, 2006.

CRS-26
! Information technology funding cut: The committee cut $341
million from DOD information technology programs, which total
$31 billion, as one means of offsetting increases in other programs.
! VH-71 Presidential helicopter funding cut: The committee
trimmed $39 million from the program due to development delays.
! Department of Energy nuclear weapons programs: The
committee required the Energy Department to submit a report on
plans to transform the nuclear weapons production complex and
specified a number of policy objectives.
! Cooperative threat reduction with the former Soviet Union: The
committee cut $35 million for a U.S. supported Russian system to
convert plutonium to non-weapons-grade fuel because of concerns
that the system could, in fact, produce more plutonium. And the
committee cut another $115 million from $290 million requested for
another plutonium conversion technology.
! Acquisition of programs with large cost growth: The committee
approved an amendment in full committee markup that would
require DOD to allow competing contractors to make challenge bids
for work on programs that exceed critical cost growth ceilings —
currently 25% growth over original estimates.
! DOD support for foreign nations: The committee included in the
bill a DOD proposal to allow up to $200 million a year to be used
for logistical support of foreign nations engaged in combined
military operations with the United States and to permit DOD to
provide equipment temporarily to foreign military forces in
combined operations. It did not include the DOD proposal to use
defense funds to build the capacity of foreign militaries for
counterterrorism or stability operations, as the Senate Armed
Services Committee did (see below for a discussion), nor did it
approve other, related Administration proposals.
! Provisions restricting acquisition of foreign-made items in
defense acquisition: As it has in the past, the House Armed
Services Committee included a number of provisions in its version
of the authorization bill to limit defense acquisition of foreign-made
goods. One provision, Section 812, would prohibit defense
contracts with a foreign company that has received government
subsidies. Another, Section 831, would prohibit procurement of a
specialty metal or item critical to national security unless it is
reprocessed, reused, or produced n the United States. Section 832
would establish a board to identify items critical to national security.
! Prohibition on procurement of items from companies that
provide defense goods to China: The House committee also
included a provision, Section 1211, that would prohibit defense

CRS-27
purchases from any company that provides material on the U.S.
Munitions List to China.
FY2007 Defense Authorization — Highlights of House Floor
Action

On May 9, the House Rules Committee considered almost 100 proposed floor
amendments to the authorization bill. In an initial rule on the bill, it permitted just
eight of them, and in a second rule, permitted 27 more — 12 as part of three en bloc
amendments and another 15 amendments that were debated separately. Democrats
objected to the Rules Committee’s refusal to permit several amendments, including
an amendment by Representative Skelton, the ranking Democrat on the Armed
Services Committee, that would have reversed a measure in the committee bill that
increased co-pays for some prescription drug purchases.
Perhaps the most high profile amendment to pass (by a vote of 252-171) was a
proposal by Representative Goode to permit the Secretary of Defense to assign
military personnel to support the Department of Homeland Security in border
protection. Mr. Goode has offered a similar amendment for the past several years,
and before that, Representative Traficante perennially offered a similar measure. The
amendment has often passed in the House but has never been accepted in the final
conference agreement. This year, there was an extensive floor debate. And after its
approval, the President proposed a program to deploy 6,000 National Guard troops
to support border operations.
The House repeated another perennial debate over an amendment by
Representatives Andrews, Davis (CA), Sanchez (CA), and Harman to permit
privately funded abortions for U.S. military personnel or their dependents at military
hospitals overseas. It was rejected by a vote of 191-237.
The House also rejected, by a vote of 124-301, an amendment by Representative
Tierney to cut $4.7 billion from the Missile Defense Agency budget and allocate the
funds to other defense priorities.
And the House rejected, by a vote of 202-220, a motion by Representative
Salazar to recommit the bill to committee with instructions to report back a measure
that includes an amendment to change current procedures under which Survivor
Benefit Plan benefits are reduced. Under current law, benefits to survivors of those
who die while in service are reduced by the amount of Veterans Affairs benefits.
Other amendments permitted by the rule were all approved by voice vote. One
measure that passed was to require a study of the health impact of past ocean
dumping of chemical weapons.16 In general debate on the bill, both Democrats and
Republicans on the Armed Services Committee repeated lauded the committee bill
as a bipartisan measure that was approved in the committee by a vote of 62-1.
Table 6 summarizes House floor action on selected amendments.
16 For a discussion of this issue, see CRS Report RL33432, U.S. Disposal of Chemical
Weapons in the Ocean: Background and Issues for Congress
, by David Bearden.

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Table 6: House Floor Action on Selected Amendments:
Defense Authorization Bill, H.R. 5122
Sponsor
Purpose/Congressional Record Page Reference
Outcome
Andrews
Requires a study to determine whether any have been
Agreed,
affected by ocean disposal of munitions (pp.
voice vote
H2447-48).
Andrews, for
Lifts the current ban on privately funded abortions at
Rejected,
Davis (CA),
U.S. military facilities overseas (pp. H2448-51,
191-237
Harmon,
H2466-67).
Sanchez (CA)
Tanner
Expresses a Sense of Congress that the Army should
Agreed,
consider converting to six-month deployments in Iraq
voice vote
and Afghanistan (p. H2453).
Franks (AZ)
Transfers $1 mn to provide health care for Iraqi
Agreed,
children (pp. H2467-68).
voice vote
McDermott
Directs a comprehensive study of the health effects of
Agreed,
exposure to depleted uranium munitions (pp. Pages
voice vote
H2531-32)
Lewis (KY)
Provides that no more than 20% of a service
Agreed, in
member’s paycheck can be garnished to recover
en bloc
overpayments through no fault of the service member
amendment,
(pp. H2537-40).
voice vote
Taylor (MS)
Requires DOD to equip 100% of U.S. military
Agreed,
vehicles in Iraq and Afghanistan with IED jammers
voice vote
(pp. H2541-42).
Goode
Authorizes the Secretary of Defense to assign
Agreed,
members armed services to border security (pp.
252-171
H2526-28, H2542-43).
Tierney
Reduces missile defense agency funding from $9.3 bn
Rejected,
to $4.47 bn, prohibits deployment of space-based
124-301
interceptors (pp. H2532-37, H2543-44).
FY2007 Defense Authorization — Highlights of the Senate
Armed Services Committee Bill

The Senate Armed Services Committee marked up its version of the defense
authorization, S. 2769, on May 4. A few themes stand out in the markup.
One is that the Senate committee approved 30,000 more troops than requested
for the Army and 5,000 more for the Marine Corps and also authorized 350,000
troops for the Army National Guard (ARNG), 17,000 above the number for which
the Army requested funding. The House also approved the same, higher end-strength
for ground forces. Congress and the Administration may be on a collision course
over the issue.

CRS-29
The Senate committee also undertook a number of initiatives to strengthen
government-wide capabilities to engage in counterterrorism and stability operations.
One potentially far-reaching initiative is to agree to an Administration proposal to
expand the authority of regional military commanders to train and equip foreign
military forces and to provide humanitarian and other assistance to foreign nations.
These activities have traditionally been managed by the State Department under legal
authorities that include, among other things, human rights conditions. In bills
funding operations in Afghanistan and Iraq, Congress has temporarily provided some
of this authority, but the Administration wants Congress to write it into permanent
law. The committee restricted funding for the most far-reaching measure to two
years, saying that the program it should be regarded as a pilot project with an
assessment to follow. The committee also required consultations with ambassadors
and did not agree to allow waivers of human rights and other restrictions on
assistance.
The Senate committee appeared more supportive of the Army Future Combat
System (FCS) than the House committee, and provided the full $3.7 billion requested
for the program. The committee did, however, mandate a review of the program,
including an independent cost estimate of the program itself and of all associated
Army programs. If the most recent Army cost estimates for the FCS appear unstable,
Congress may consider ending or substantially restructuring the program.
Highlights of the committee markup include:
! Total funding: The Committee authorized $517.7 billion for
defense, including $50.0 billion in emergency funding overseas
operations and $467.7 billion in budget authority for DOD, DOE and
other non-emergency programs. The total is $3.7 billion above the
request and above the House authorization.
! Army and Marine Corps end-strength: The committee authorized
end-strengths of 512,400 for the Army, 30,000 above the request,
and of 180,000 for the Marine Corps, 5,000 above the request.
! Army National Guard end-strength: The committee also approved
an end-strength of 350,000 for the ARNG, 17,000 above the request,
and stipulated that, if the Army fails to recruit and retain enough
personnel to meet the authorized level, and money saved may be
used only to procure ARNG equipment.
! Military pay raise: The committee approved the requested pay raise
of 2.2% rather than the 2.7% raise the House authorized.
! TRICARE fees and co-pays for under-65 retirees: As did the
House, the Committee rejected increases in retiree TRICARE fees
and co-pays. The Committee also required the Government
Accountability Office to carry out a full audit of DOD health care
costs, including comparisons of the Administration’s proposed fee
increases with increases in federal civilian health insurance fees.

CRS-30
! Flexibility for DOD to support foreign nations for
counterterrorism operations: The Senate committee agreed to a
number DOD’s proposals to allow regional combatant commanders
flexibility to use DOD funds to train and equip foreign militaries and
to provide humanitarian and reconstruction assistance to foreign
governments in support of counterterrorism operations, though with
some amendments. In particular, the committee agreed to make
available $200 million per year for the next two years, rather than
$750 million per year indefinitely, to build the capabilities of foreign
militaries. The committee specified that no more than $50 million
per year could be used by any one regional combatant commander,
and required detailed consultations with U.S. ambassadors. The
committee also required the President to develop a plan to better
coordinate interagency counterterrorism practices. With the
appropriations committees cutting foreign operations funding for the
State Department and AID, the Defense Department is, in effect
taking on many roles that the State Department formerly carried on.
! Detainee treatment: The committee required an official
government-wide coordinated legal opinion on whether specified
interrogation techniques constitute cruel and inhuman treatment.
! Use of armed forces for domestic activities: The committee
proposed amendments to the Insurrection Act that would make it
easier for the President to employ the armed forces to respond to
domestic emergencies, such as the aftermath of Hurricane Katrina.
! UAV policy: The committee directed the Secretary of Defense to
develop a comprehensive policy on UAVs and to give UAVs a
preference in developing new systems.
! Navy shipbuilding: The committee added $1.5 billion to the
shipbuilding request for a total of $12 billion. Increases include
accelerating LPD procurement, increased advance procurement
funds for the CVN-21 carrier and the LHA(R) amphibious ship. The
committee included $50 million in advance procurement funding for
long-lead items for three new CVN-21-class carriers, a measure that
the House committee specifically rejected in a vote in the full
committee markup.
! Permitting a reduction from 12 to 11 deployable aircraft
carriers: The committee bill includes a provision repealing last
year’s requirement that the Navy maintain 12 deployable carriers.
If approved this would allow retirement of the USS Kennedy.
! Continued C-17 production: As in the House bill, the committee
bill rejects the DOD proposal to terminate C-17 production. The
Senate bill authorizes funds for 2 aircraft in FY2007 and advance
procurement for continued production later.

CRS-31
! Army Future Combat System (FCS) funding: As opposed to the
House, the Senate committee authorized the full $3.7 billion
requested for FCS development. The committee also, however,
required a review of the program, including an independent cost
estimate, though not with a view to a go/no go decision, as the
House mandated.
! Readiness: The committee used the $50 billion emergency “bridge”
fund as a means of adding funds to regular service accounts to
correct some readiness-related shortfalls. The committee added
$515 million in the emergency funds, for example, for Navy
operations, $231 million for Army operations, and $106 million for
Marine Corps operations. So, in effect, the committee is
ameliorating constraints on the regular service budgets by adding
funds for regular military operations to the emergency fund.
! Acquisition reform: The committee approved several measures to
reform defense acquisition procedures, though none nearly so far-
reaching as the House committee measure to recompete projects
with excessive cost growth. One Senate committee measure is to
align the tenure of program managers with the progress of their
programs and another to require that incentive payments be more
directly linked to acquisition outcomes.
! Land exchanges to build buffers around military facilities: The
Defense Department has long been concerned about the
encroachment of civilian development on military facilities. The
Senate committee approved a measure to allow DOD to exchange
excess land for other land that would be a buffer for military sites.
! Cooperative threat reduction with former Soviet states: In
contrast to the House authorization, the Senate committee made no
reductions in the $1.7 billion requested for Department of Energy
nonproliferation programs (which finance plutonium purchases and
reprocessing, for example) or the $372 million for the Department
of Defense Cooperative Threat Reduction program.
! R&D science and technology funding target: Congress has
required that the Defense Department invest 3% of the overall
budget in basic science and technology (S&T) R&D programs.
DOD has perennially fallen short of that target. The Senate
committee included a provision requiring annual growth of 2% per
year above inflation in S&T accounts.
! Missile defense funding: The Senate committee approved the full
$9.3 billion requested for Missile Defense Agency (MDA) R&D
programs (see Table A2 for details of the request), but, like the
House, shifted funds away from longer-term, more risky programs
to near term projects. The committee added $200 million for
Ground-based Midcourse Defense (GMD) flight testing and $100

CRS-32
million for the Navy interceptor system. It cut $200 million from the
$406 million requested for the boost-phase Kinetic Energy
Interceptor.
! Space systems: The committee expressed support for DOD’s
restructuring of the Transformational Communications Satellite
(TSAT) program, but trimmed $70 million from the program (an 8%
cut) saying that it could not be executed. The committee also cut
$66 million (a 24% cut) from the Space Radar program and
expressed concern about the lack of a cost sharing agreement with
the intelligence community.
! Long-range strike/Trident II missile conventional warhead: The
committee expressed support for DOD’s plan to develop prompt
global strike capabilities, and provided the full $127 million
requested to convert Trident II missiles to carry non-nuclear
warheads. But, like the House committee, the Senate committee was
concerned about the international diplomatic issues and prohibited
expenditure of more than $32 million on conversion until the
Secretary of Defense, after consulting with the Secretary of State,
provides a report on the matters at issue.
! B-52 retirements: The committee prohibited the proposed
retirement of B-52 bombers until the Air Force reports on force
requirements, but also approved a measure that (1) permits the
retirement of up to 18 B-52H aircraft, (2) requires that remaining B-
52Hs all be equipped with the specific upgrades, and (3) says the
committee expects no additional B-52H retirements.
! F-35 Joint Striker Fighter alternative engine: Like the House, the
Senate committee added $400 million to continue development of
an alternate second engine for the F-35.
! F-35 schedule delays: The committee cut $1.2 billion from F-35
procurement funds due to schedule delays.
! F-22 funding: Like the House, the Senate committee rejected the
Air Force plan to stretch out F-22 production and to provide funding
incrementally rather than financing the full cost of deployable
aircraft in the year for which funding is requested. The committee
added $1.4 billion for full funding for the requested 20 F-22s.
FY2007 Defense Authorization — Highlights of Senate Floor
Action

The Senate began floor consideration of its version of the defense authorization
bill, S. 2766, on June 12. On June 15, the Senate began a debate over Iraq policy.
By a vote of 93-6, the Senate agreed to a motion by Senate Minority Leader Reid to
table an amendment by Senator McConnell, SA 4269, requiring the President to

CRS-33
establish a schedule for withdrawing U.S. combat troops from Iraq by December 31,
2006, leaving only troops needed to stand up Iraqi security forces. Senator
McConnell brought up the measure that was originally authored by Senator Kerry,
though Senator Kerry himself had not offered it, to force a debate on the matter.
Later, on June 21 and 22, the Senate considered two other Iraq policy
amendments, one by Senator Levin to require that troop reductions begin this year
and another by Senator Kerry requiring that most troops be withdrawn from Iraq by
July 1, 2007. The Senate rejected both measures on June 22.
The Senate considered one other measure related to the war, an amendment by
Senator McCain, SA 4242, to require the President to request funding for ongoing
military operations with the regular federal budget request submitted in February of
each year (approved by a vote of 98-0 on June 13). For the past two years, the Senate
has approved amendments by Senator Byrd expressing the Sense of the Senate urging
this, but the Administration has continued to request funding in supplementals.17 In
the past, in bill signing statements Presidents have, on several occasions, rejected as
unconstitutional, legislative provisions that direct the Administration to include
particular programs or activities in budget requests. Administrations have,
nonetheless, sometimes adhered to such congressional requirements. In the
conference report on the FY1996 defense appropriations act, P.L. 104-61, Congress
required the Administration to request funding for Southwest Asia operations in the
regular FY1997 defense request, though it did so not in the bill, but only in report
language. The Clinton Administration agreed and requested funding for ongoing
operations in Southwest and Bosnia in its FY1997 request.18 The McCain
amendment, like the Byrd amendments to the FY2005 and FY2006 defense
appropriations bills, would mean that the full cost of ongoing military operations —
almost $120 billion in FY2006 — would be considered along with the rest of the
federal budget at the start of next year’s Congress.
Table 7 briefly reviews Senate floor action on selected amendments.
17 See Section 8138 of the FY2005 defense appropriations act, P.L. 108-287, and Section
8117 of the FY2006 defense appropriations act, P.L. 109-148.
18 For a discussion of precedents for funding operations in regular or in supplemental bills
from Korea on, see CRS Report RS22455, Military Operations: Precedents for Funding
Contingency Operations in Regular or in Supplemental Appropriations Bills
, by Stephen
Daggett.

CRS-34
Table 7: Senate Floor Action on Selected Amendments:
Defense Authorization Bill, S. 2766
Sponsor/
Purpose/Congressional Record Page Reference
Outcome
Number
June 14, 2006
Lautenberg/
To prohibit increased retail pharmacy co-payments,
Agreed
Stabenow
pages S5837, S5839-40.
voice vote
#4205
Dorgan
To eliminate fraud and abuse and improve competition
Tabled
#4230
in Federal contracting, pages S5845-47, S5852-53,
55-43
S5854-57, S5861.
McCain
To require budgeting for ongoing military operations in
Agreed
#4242
regular requests, pages S5859-61, S5862-65.
98-0,
June 15, 2006
Feingold
To strengthen the Special Inspector General for Iraq
Agreed
#4256
Reconstruction, pages S5914-17.
voice vote
Biden
To state the policy of the United States on the nuclear
Agreed
#4257
programs of Iran, pages S5917, S5921-22
99-0
Warner/
To repeal the statutory requirement in place since
Agreed
Levin
FY1985 that the Defense Department submit an annual
voice vote
#4280
report on Allied Contributions to the Common Defense,
page 5933
Inhofe
To modify the American Servicemembers’ Protection
Agreed
#4284
Act of 2002 to permit certain military cooperation with
voice vote
and aid to nations that have not exempted U.S. troops
from the jurisdiction of the International Criminal
Court, page 5936.
Lugar
To repeal restrictions on funding for chemical weapons
Agreed
#4285
demilitarization programs in Russia under the
voice vote
Cooperative Threat Reduction Program, page S5936.
Santorum
To authorize assistance for pro-democracy programs
Rejected
#4234
and activities inside and outside Iran and to enhance the
45-54
Iran-Libya Sanctions Act of 1996, pages S5917-21.
Warner
To amend Buy American Act provisions regarding
Agreed
#4286
acquisition of certain speciality metals, page S5936.
voice vote
McConnell
To require the withdrawal of United States Armed
Tabled
#4265
Forces from Iraq and urge the convening of an Iraq
93-6
summit, pages S5927-29.
Feingold
To provide for the redeployment of United States forces
Withdrawn
#4192
from Iraq by December 31, 2006, pp. S5913-14.

CRS-35
Sponsor/
Purpose/Congressional Record Page Reference
Outcome
Number
June 16, 2006
Sessions
To require a report on reporting requirements
Agreed
#4295
applicable to the Department of Defense, pages
voice vote
S5995-96.
Obama/
To require the use of competitive procedures for
Agreed
Coburn
Federal contracts worth over $500,000 related to
voice vote
#4254
hurricane recovery, subject to existing exceptions,
pages S5995-96.
June 20, 2006
McConnell
To affirm the Iraqi Government position of no amnesty
Agreed
#4272
for terrorists who have attacked U.S. forces, pages
64-34
S6110-17.
Nelson (FL)/
To express the sense of Congress that the Government
Agreed
Menendez
of Iraq should not grant amnesty to persons known to
97-19
#4265
have attacked, killed, or wounded members of the
Armed Forces of the United States, page S6117
Ensign/Reid
To provide for expansion of the Junior Reserve
Agreed
#4308
Officers’ Training Corps program, pages S6117-18
voice vote
Bond/Leahy
Bond/Leahy) Amendment No. 4271, to increase the
Agreed
#4271
grade of the Chief of the National Guard Bureau from 3
voice vote
to 4 stars and to enhance the Chief’s authority to over
certain budget requirements, pages S6117, S6118-19
Ensign
To authorize the temporary use of the National Guard
Agreed
#2352
to provide support for border security along the
voice vote
southern land border of the United States, pages S6117,
S6119-20
Ensign
To require a report on technologies to defeat the threat
Agreed
#4354
to military rotary wing aircraft posed by portable air
voice vote
defense systems and rocket propelled grenades, pages
S6117, S6120
Jeffords
To provide for 2 programs to authorize the use of leave
Agreed
#4215
by caregivers for family members of certain individuals
voice vote
performing military service, pages S6117, S6121-22
Warner/
To increase authorized FY2006 general transfer
Agreed
Levin
authority from $3.75 to $5 billion, Pages S6117, S6122
voice vote
# 4355
Warner/
To authorize additional emergency supplemental
Agreed
Levin
appropriations for FY2006, pages S6117, S6122
voice vote
#4356
Thune
To require a report on the future aerial training airspace
Agreed
#4217
requirements, pages S6117, S6122
voice vote
Warner
To require a report on the desirability and feasibility of
Agreed
#4360
joint officer promotion selection boards, pages S6117,
voice vote
S6122

CRS-36
Sponsor/
Purpose/Congressional Record Page Reference
Outcome
Number
Dorgan
To establish a special committee of the Senate to
Rejected
#4292
investigate the awarding and carrying out of contracts
44-52
for activities in Afghanistan and Iraq, pages S6108-10
Frist
(To Amendment No. 4322), to amend title 18, United
Withdrawn
#4323
States Code, to prohibit taking minors across State lines
in circumvention of laws requiring the involvement of
parents in abortion decisions, page S6105
June 21, 2006
Kennedy
To provide for an increase in the Federal minimum
Withdraw
#4322
wage, pages S6191-S6203
after vote
of 52-46
Enzi
To promote job creation and small business
Withdrawn
#4376
preservation in the adjustment of the Federal minimum
after vote
wage, pages S6191, S6203-04
of 45-53
Kerry
To require the redeployment of United States Armed
Rejected
#4442
Forces from Iraq in order to further a political solution
13-86
in Iraq, encourage the people of Iraq to provide for their
own security, and achieve victory in the war on terror,
pages S6324-35
Levin
To state the sense of Congress on the United States
Agreed
#4320
policy on Iraq, pages S6324, S6335
98-1
Senate agreed to the motion to close further debate on
Agreed
the bill, page S6335
voice vote
Hutchison
To include a delineation of the homeland defense and
Agreed
#4377
civil support missions of the National Guard and
voice vote
Reserves in the Quadrennial Defense Review, page
S6336
Harkin
To require semiannual reports on efforts to investigate
Agreed
Modified
and prosecute cases of waste, fraud, and abuse in Iraq,
voice vote
#4266
Afghanistan, and throughout the war on terror, pages
S6346, S6347
Inhofe
To require annual reports on United States
Agreed
#4495
contributions to the United Nations, pages S6346,
voice vote
S6347
Reid
To appoint a coordinator for policy toward North Korea
Agreed
Modified
and require reports to Congress, pages S6346, S6347-48
voice vote
#4307
Lott
To make funds available for the Arrow ballistic missile
Agreed
Modified
defense system, pages S6346, S6348
voice vote
#4326
Allard
To provide for an independent review of the
Agreed
#4497
organization and management of the Department of
voice vote
Defense for national security in space, pages S6346,
S6349

CRS-37
Sponsor/
Purpose/Congressional Record Page Reference
Outcome
Number
Cantwell
To require reports on the diversion of equipment from
Agreed
Modified
reserve units, pages S6346, S6350
voice vote
#4202
Martinez
To give priority in allocating replacement equipment to
Agreed
#4500
states that have suffered a natural disaster, pages
voice vote
S6346, S6350
Menendez/
To require a plan to replace equipment withdrawn or
Agreed
Lautenberg
diverted from the reserve components for Operation
voice vote
#4441
Iraqi Freedom or Operation Enduring Freedom, pages
S6346, S6350
Feingold
To require an annual report on the amount of the
Agreed
#4502
acquisitions made by the Department of Defense from
voice vote
outside of the United States, pages S6346, S6351
McCain
To require an annual report on foreign military sales
Agreed
#4503
and direct sales to foreign customers of significant
voice vote
military equipment manufactured inside the United
States, pages S6346, S6351
Graham/
To expand the authority of the Secretaries of the
Agreed
Nelson (NE)
military departments to remit or cancel indebtedness of
voice vote
#4504
members of the Armed Forces, pages S6346, S6351-52
Reid
To modify the effect date of the termination of the
Agreed
#4197
phase-in of concurrent receipt of retired pay and
voice vote
veterans disability compensation for veterans with
service-connected disabilities rated as total by virtue of
unemployability, pages S6346, S6354
Chambliss
To reduce the eligibility age for receipt of non-regular
Agreed
#4365
military service retired pay for members of the Ready
voice vote
Reserve in active federal status or on active duty for
significant periods and to expand eligibility of members
of the Selected Reserve for coverage under the
TRICARE program, pages S6346, S6355-56, S6373-7
McCain
To name the Act after John Warner, a Senator from
Agreed
#4241
Virginia, pages S6346, S6356
voice vote
Coburn
To improve the provisions relating to the linking of
Agreed
#4371,
award and incentive fees to acquisition outcomes, pages
voice vote
S6346, S6356
Biden
Relating to military vaccination matters, pages S6346,
Agreed
#4244
S6356-57
voice vote
Coburn
To reform the Department of Defense’s Travel System
Agreed
Modified
into Pay-For-Use-of-Service System, pages S6370-73,
voice vote
#4491
S6376
Coburn
To require the Secretary of Defense to report on and
Agreed
#4370
classify congressional earmarks of funds available to
voice vote
the Department of Defense, pages S6374, S6376
Chambliss
To authorize multiyear procurement of F-22A fighter
Agreed
#4261
aircraft and F-119 engines, pages S6336-45, S6376-77
70-28

CRS-38
Sponsor/
Purpose/Congressional Record Page Reference
Outcome
Number
Sessions
To provide, with an offset, additional funding for
Agreed
#4471
missile defense testing and operations.
98-0
Warner
To require a report before taking steps to reduce the
Agreed
#4520
number of Minuteman III Intercontinental Ballistic
voice vote
Missile from 500 to 450, pages S6377-78
Cantwell
To provide for a study of the health effects of exposure
Agreed
#4374,
to depleted uranium, pages S6377-78
voice vote
Biden
To ensure payment of United States assessments for
Agreed
#4458
United Nations peacekeeping operations in 2005, 2006,
voice vote
and 2007, pages S6677-78
Clinton
To enhance the services available to members of the
Agreed
#4264
Armed Forces returning from deployments to assist
voice vote
them and their family members, in transitioning to
civilian life, pages S6377, S6379-81
Bayh
To add an independent panel as part of the Quadrennial
Agreed
#4489
Defense Review, pages S6377, S6381-82
voice vote
Feingold
To require the President to develop a comprehensive
Agreed
#4526
strategy toward Somalia, pages S6377, S6382
voice vote
Feingold
To require a report on the feasibility of establishing a
Agreed
#4527
United States military regional combatant command for
voice vote
Africa, pages S6377, S6383
McCain/
To ensure proper education, training, and supervision of
Agreed
Warner
personnel providing special education services for
voice vote
#4434
dependents of members of the Armed Forces under
extended benefits under TRICARE, pages S6377,
S6383
Akaka
To transfer custody of the Air Force Health Study
Agreed
Modified
assets to the Medical Follow-up Agency, pages S6377,
voice vote
#4393
S6383
Warner/
To require the Defense Department to submit
Agreed
Levin
Supplemental and Cost of War Execution reports, pages
voice vote
#4529
S6377, S6384
Reed
To provide that acceptance by a military officer of
Agreed
#4311
appointment to the position of Director of National
voice vote
Intelligence or Director of the Center Intelligence
Agency shall be conditional upon retirement of the
officer after the assignment, rages S6377, S6384
Reid
To require reports on the implementation of the Darfur
Agreed
Modified
Peace Agreement, pages S6377, S6385
voice vote
#4439
Clinton
To require that Congress be apprised periodically on
Agreed
#4361
implementation of the Darfur Peace Agreement, pages
voice vote
S6377, S6386

CRS-39
Sponsor/
Purpose/Congressional Record Page Reference
Outcome
Number
Levin
To make available an additional $450,000,000 for
Agreed
#4533
RDT&E Defense-wide and provide an offsetting
voice vote
reduction for a certain military intelligence program,
pages S6377, S6386
Vitter
To authorize prepositioning of Department of Defense
Agreed
#4534
assets to improve support to civilian authorities, pages
voice vote
S6377, S6386
Domenici
To require annual reports on the expanded use of
Agreed
#4451
unmanned aerial vehicles in the national airspace
voice vote
system, pages S6377, S6387
Burns/Dole
To provide for the enhancement of funeral ceremonies
Agreed
#4538
for veterans, pages S6377, S6388
voice vote
Biden
To provide that not funds may be used to establish a
Agreed
#4423
permanent U.S. military base in Iraq, or to exercise
voice vote
control over the oil resources of Iraq, pages S6377,
S6388
Allard
To require an independent review of the organization
Agreed
#4366
and management of the Department of Defense for
voice vote
national security in space, pages S6377, S6389
Kerry
Stating the Sense of Congress that the President should
Agreed
#4204
convene an international summit o promote a
voice vote
comprehensive political agreement in Iraq, pages
S6377, S6389
Obama
To require a report on Air Force plans for the
Agreed
#4541
realignment of aircraft, weapons systems, and functions
voice vote
at active and Air National Guard bases as a result of the
2005 round of defense base closure and realignment,
pages S6377, S6390
House Appropriations Committee 302(b) Allocations
Ultimately, the total amount provided for national defense in the regular
appropriations bills (not including emergency appropriations) is determined by the
allocation of funds among appropriations subcommittees. Under Section 302(a) of
the Congressional Budget Act of 1974, the annual congressional budget resolution
allocates a specific amount of discretionary budget authority to the appropriations
committees. Under Section 302(b) of the Budget Act, the appropriations committees
are required to report back on the allocation of the total to the subcommittees.
The House-committee-passed FY2007 budget resolution, H.Con.Res. 376,
approves a total of $872.8 billion in discretionary budget authority, which is $475 million
below the Administration request, and the resolution allocated that amount to the
appropriations committee under Section 302(a) of the Budget Act. The Senate-passed
budget resolution approves $877.0 billion in discretionary spending, $3.7 billion above
the Administration request, and allocates the total to the appropriations committee.

CRS-40
On May 4, the House Appropriations Committee reported its initial
subcommittee allocations under Section 302(b) of the Budget Act. Table 8 shows
the committee action. It is important to note that these allocations may be revised
periodically as congressional action on the appropriations bills proceeds.
The initial House allocations trim $4.0 billion from the defense subcommittee,
compared to the Administration request, $824 million from the Military Quality of
Life/VA subcommittee, and $2.4 billion from the foreign operations subcommittee.
These cuts, compared to the request, in defense and foreign affairs allow increases,
again compared to the Administration request, mainly in Labor-HHS appropriations
and homeland security appropriations. Last year, Congress trimmed $4.4 billion
from DOD programs in the regular appropriations bills. The initial House allocations
appear to follow the same approach.
Table 8. Initial House 302(b) Subcommittee Allocations
(budget authority in billions of dollars)
Allocation
FY2006
FY2007
Versus
Enacted
Request Allocation
Request
Agriculture
16.8
17.3
17.8
+0.5
Defense
358.3
381.4
377.4
-4.0
Energy and Water Development
30.2
29.5
30.0
+0.5
Foreign Operations
20.7
23.7
21.3
-2.4
Homeland Security
30.3
31.0
32.1
+1.1
Interior/Environment
25.9
25.5
25.9
+0.4
Labor, HHS, Education
141.1
137.8
141.9
+4.1
Legislative
3.8
4.2
4.0
-0.2
Military Quality of Life/VA
85.0
95.5
94.7
-0.8
Science, State, Justice, Comm
57.2
59.7
59.8
+0.1
Transportation, Treasury, HUD
64.1
67.6
67.8
+0.2
Total 302(a) Allocation
833.3
873.3
872.8
-0.5
Source: House Appropriations Committee.
FY2007 Defense Appropriations: Highlights of the House
Appropriations Committee Bill

The House Defense Appropriations Subcommittee marked up its version of the
FY2007 defense appropriations bill on June 7, and the full committee marked up the
bill, which became H.R. 5631, on June 13. Among the committee’s decisions, a few
themes stand out.
First, in accordance with the committee’s 302(b) allocations, the committee
approved a total $377.6 billion in the bill, $4.1 billion below the Administration
request. The committee made about $2 billion of the cuts in “General Provisions”
of the bill. Of these cuts $823 million are in rescissions of prior year funds (amounts
identified by the committee in cooperation with the Defense Department), $949
million in revised inflation estimates, and $100 million in savings from foreign

CRS-41
currency fluctuations. These are perennial sources of savings in appropriations bills.
They have generally been used, however, to offset congressional additions to the
budget rather than to trim the total amount in the bill.
The committee also cut a net of $1.1 billion from procurement, $1.9 billion from
operation and maintenance (O&M), and $1.2 billion from military personnel
accounts, while it added $2.1 billion to R&D accounts. Of the cuts in military
personnel, $784 million are from projected underexecution of approved personnel
levels as reported by the Government Accountability Office (GAO) and $288 million
from the Air Force to reflect a shift of Operation Noble Eagle costs (which provides
security at military bases and air defense overflights) to the additional emergency
appropriations in Title IX of the bill. In O&M, $433 million of savings are from
shifting Operation Noble Eagle costs to Title IX, and substantial additional amounts
are from shifting to Title IX funds for the regular pay of military technicians who are
mobilized for overseas operations.19 In the procurement accounts, many of the
committees cuts from the request are from following the authorization bill in shifting
part of the requested amounts for several programs, such as M-1 tank upgrades, to
emergency war funds in Title IX.
Second, the committee did not provide funds for the 2.7% military pay raise
approved in the House-passed authorization bill nor did it provide funds for increases
in end-strength over the requested levels. This avoided the need for any increases in
the military personnel accounts compared to the request. If the authorization
conference report provides a 2.7% pay raise rather than the 2.2% requested, the
appropriators may then either agree to add funds to the bill in conference or, instead,
require the Defense Department to absorb the costs and transfer funds from other
accounts. The committee approved an increase of general transfer authority to $4.75
billion in the regular bill with an additional $2.5 billion in Title IX to accommodate
such requirements. On end-strength levels, the committee appears to assume that any
increases will continue to be funded from emergency appropriations for war costs in
FY2007, as they have been in the past.
On major weapons programs, as is usually the case, the House appropriators
generally followed the House authorization bill. As in the authorization, the
appropriations —
! Cut $326 million from Army Future Combat System R&D;
! Cut funding for Transformational Communications Satellite R&D,
though by $100 million rather than by $80 million;
! Cut funding for Space Radar R&D, though by $66 million rather
than by $30 million;
! Added $50 million for DDG-51 destroyer modernization, though not
the $200 million in the authorization;
19 This is also a way of shifting costs that normally would be counted in the regular
appropriations to emergency accounts. Technically, emergency funding is used to pay
“incremental” costs of contingency operations — i.e., expenses over and above the normal
operating costs of the forces. Pay of mobilized military technicians is not an incremental
expense of the operations.

CRS-42
! Added $1.4 billion to cover the full cost of procuring 20 F-22
aircraft, rejecting the Air Force incremental funding plan;
! Added $200 million in R&D to develop a second engine for the F-35
Joint Strike Fighter (the authorization approved $245 million);
! Reduced funds to commence F-35 procurement;
! Eliminated funds to shut down C-17 cargo aircraft production,
! Eliminated $38 million requested to convert Trident II D-5 missiles
to carry conventional warheads; and
! Shifted some procurement funds that were requested in the regular
appropriations accounts to be funded with emergency funds for the
war.
In contrast to the authorization, the House appropriators —
! Did not add $400 million in advance procurement for a second
Virginia-class attack submarine in FY2009; and
! Eliminated funding requested to begin procurement of 12 EA-18G
electronic warfare versions of the F-18 aircraft and instead shifted
funds to add 12 F/A-18E/F aircraft.
FY2007 Defense Appropriations — Highlights of House Floor
Action

Traditionally, House floor debate on the defense appropriations bill is very brief
and, although the bill generally comes to the floor with an open rule, very few
amendments are proposed. This year, however, a number of controversial
amendments were considered on the floor, including several proposals to strip
specific congressional earmarks of funds from the bill.
The House considered the bill on the floor on June 20, 2006. A number of less
controversial amendments were approved by voice vote, including amendments
! By Representative Murtha to restore funding for the Perpetually
Available and Secure Information Systems program;
! By Representative Granger to delete a provision in the committee
bill that would prevent foreign sales of the F/A-22 fighter;
! By Representative Castle to prohibit award fees for performance that
does not meet contract requirements;
! By Representative Markey to prohibit funds in the bill from being
used in contravention laws or regulations to implement the UN
Convention Against Torture and Other Cruel, Inhuman or Degrading
Treatment or Punishment;
! By Representative Inslee to prohibit the use of funds to implement
some provisions of the National Security Personnel System that a
Federal court found not to preserve adequate collective bargaining
and adverse action appeals procedures; and
! By Representative Holmes to prohibit the use of funds to privatize
base operation support services at Walter Reed Army Medical
Hospital.

CRS-43
The House also debated and rejected several amendments on matters of U.S.
national security policy, including a measure to prohibit National Security Agency
surveillance activities not authorized through the Foreign Intelligence Surveillance
Act (FISA), a measure to prohibit military action against Iran without advance
congressional approval, and a measure to delete a provision in the committee bill to
prohibit the establishment of permanent basing rights agreement in Iraq. The
measures that the House rejected include amendments
! By Representative Steve King to strike section 9012 of the
Committee bill which prohibits funds from being used to enter into
a basing rights agreement with Iraq (failed 50 - 376);
! By Representative Chocola to prohibit the use of funds from being
available for the development, deployment, or operation the Defense
Travel System (failed 141 - 285);
! By Representative Schiff to prohibit funds from being used to
engage in electronic surveillance in the United States except as
authorized under the Foreign Intelligence Surveillance Act of 1978
(failed 207 - 219);
! By Representative Hinchey to prohibit any of the funds from being
used to initiate military operations against Iran except in accordance
with Article I, Section 8 of the Constitution (failed 158 - 262); and
! By Representative Hinchey to prohibit any funds from being used
for any contract with the Lincoln Group (failed 153 - 268).
Four amendments were proposed and then withdrawn by their sponsors,
specifically amendments
! By Representative Jackson-Lee to require that not less than $10
million be used for prosthetic research;
! By Representative Engel to comment the Navy for having the
highest percentage of Alternative Fuel Vehicles acquired by any
federal agency during FY2005;
! By Representative Stearns to prohibit the use of funds to interpret
voluntary religious discussions as “official” as specified in the Air
Force revised interim guidelines concerning free exercise of religion;
and
! By Representative Filner to prohibit funds from being used to place
a social security account number on any military identification card.
Finally, the House rejected several amendments by Representative Flake to
remove certain earmarks of funds for specific projects, including funding for
! the Wind Demonstration Project;
! the Institute for Exploration at Mystic Aquarium in New London,
Connecticut;
! the JASON Education Foundation;
! the Center for Rotorcraft Innovation;
! the Illinois Technology Transition Center;
! the Northwest Manufacturing Initiative;
! the Lewis Center for Education Research;

CRS-44
! the Advanced Law Enforcement Rapid Response Training Program;
and
! the Leonard Wood Research Institute.
Senate Appropriations Committee 302(b) Allocations
The Senate Appropriations Committee announced its initial 302(b) allocations
to the subcommittees on June 22, 2006. The allocations provide $9.1 billion less
than the Administration requested for the defense subcommittee, leaving
substantially more for other subcommittees, particularly Labor-HHS-Education, with
$5 billion more than the Administration requested (see Table 9).
Table 9. Initial Senate 302(b) Subcommittee Allocations
(budget authority in billions of dollars)
Allocation
FY2006
FY2007
Versus
Enacted
Request Allocation
Request
Agriculture
18.4
17.4
18.2
+0.8
Commerce, Justice, Science
49.4
49.6
51.0
+1.4
Defense
399.3
423.6
414.5
-9.1
District of Columbia
0.6
0.6
0.6
0.0
Energy & Water
30.2
29.5
30.7
+1.3
Homeland Security
30.5
31.0
31.7
+0.7
Interior
25.9
25.5
26.0
+0.5
Labor-HHS-Education
141.2
137.8
142.8
+5.0
Legislative Branch
3.8
4.2
4.0
-0.2
Military Construction & VA
44.0
52.8
52.9
+0.1
State, Foreign Operations
30.1
33.7
31.3
-2.4
Transp., Treasury, Judiciary, HUD
67.9
67.1
69.0
+1.9
Total 302(a) Allocation
841.3
872.8
872.8
0.0
Source: Senate Appropriations Committee.
The committee’s 302(b) allocations may put the Senate directly at odds with the
White House on budget priorities and, to a degree, on the use of emergency
appropriations to fund programs requested in the regular, non-emergency defense
budget. The White House Statement of Administration Policy (SAP) on the House-
reported version of the defense appropriations bill,20 issued on June 20, complained
that the House bill cut $4 billion from the request and shifted about $2 billion from
the regular “base” DOD budget to the emergency spending accounts in Title IX of the
House measure. “Base funding requirements,” the White House said, “should not be
shifted to supplemental bills as a way to increase non-security related discretionary
funding.” Moreover, the SAP warned very strongly, in text that was underlined in
the official letter, that the President would veto a defense bill that cut spending too
deeply: “If the President is presented with a final DOD appropriations bill that
20 Office of Management and Budget, “Statement of Administration Policy: H.R. 5631 —
Department of Defense Appropriations Bill, FY2007,” June 20, 2006, on line at
[http://www.whitehouse.gov/omb/legislative/sap/109-2/hr5631sap-h.pdf].

CRS-45
significantly underfunds the Department of Defense to shift funds to non-security
spending, his senior advisors would recommend that he veto that bill
[emphasis in
the original].”
FY2007 Defense Appropriations: Highlights of the Senate
Appropriations Committee Bill

The Senate committee version of the defense appropriations bill would make
available $453.5 billion for the defense programs in covers, including $50 billion in
funding for overseas operations. An additional $11.3 billion is available as a
permanent appropriation for retiree medical benefits, increasing the total
appropriation for FY2007 to $464.8 billion (see Table 2).
Funding Cuts and Caps on Discretionary Spending and on
Emergency Spending. Perhaps the most controversial issue in the Senate bill is
that the total amount is $9.1 billion below the Administration request. A House cut
of $4.1 billion in its version of the bill prompted the White House to threaten a veto
if the final bill “underfunds” defense in order to shift funds to non-defense programs.
The Senate 302(b) allocations straightforwardly shift $9.5 billion from defense and
military construction appropriations to non-defense appropriations bills.
Though usually remaining unspoken, the premise of the Senate and House
302(b) cuts in defense is that the cuts can be made up from funding provided as
additional money for overseas operations. So a directly related issue is the extent to
which the Senate bill shifts funding from the regular defense appropriations accounts
to Title IX of the bill that provides additional funding for Iraq and Afghanistan. The
White House Statement of Administration Policy (SAP) on the House version of the
appropriations bill also complained about this practice. The White House estimated
that the House bill shifts about $2 billion of funding from the regular defense bill to
the amounts provided as additional appropriations that are exempted from the $872.8
billion cap on total discretionary funding in FY2007. The Senate bill provides funds
for many of the same programs as the House bill as additional appropriations,
including funds for M-1 tank and Bradley Fighting Vehicle upgrades, to continue C-
17 production, and for V-22 tilt rotor aircraft.
There is a further complication in the Senate. Section 402 of the Senate-passed
budget resolution, S.Con.Res. 83, (1) establishes the $872.8 billion cap on FY2007
discretionary funding, (2) exempts funding that is designated as “emergency”
appropriations from the cap, but also, (3) sets a cap of $86.3 billion on emergency
funding in FY2007 (the total was reduced from $90 billion in a floor amendment).
The FY2006 supplemental appropriations bill, H.R. 4939 “deems” all of these
requirements to apply in the Senate in the absence of a conference agreement on the
budget resolution.
This presents a problem for the appropriators, however, because costs of a later
emergency FY2007 supplemental request for Iraq and Afghanistan, expected next
February, together with costs of Katrina-recovery and other disaster relief, bird flu
preparations, border security, agricultural disaster relief, and other purposes, will

CRS-46
almost surely exceed the cap by a substantial amount. It will still be possible to go
ahead with emergency funding for these purposes, but only with offsetting rescissions
of funds for costs that exceed the cap.
As a result, the Senate Appropriations Committee took a step to reduce the
potential need for offsets by declaring only part of the funding for Iraq and
Afghanistan in the bill as FY2007 emergency funding. Within Title IX of the bill,
only funds in Chapter 1, Military Personnel, and Chapter 2, Operation and
Maintenance, are designated as emergency funding exempt from the FY2007 caps.
These chapters provide $42.1 billion of the $50 billion in Title IX. Funds in Chapter
3, Procurement, Chapter 4, RDT&E, Chapter 5, Revolving and Management Funds,
and Chapter 6, Related Agencies, which provide $7.9 billion, are simply made
available “on enactment” of the bill. The effect is to have these amounts scored as
FY2006 rather than FY2007 money. This is the key point. The additional $7.9
billion in FY2006 funds will not trigger a point of order for exceeding FY2006
discretionary spending levels, since room remains under the FY2006 budget caps due
to the $8 billion across-the-board cut in appropriations that Congress made at the end
of last year.
Other Issues in the Senate Defense Appropriations Bill. Aside from
the overall budget issues, the Senate Appropriations Committee version of the
defense appropriations bill addresses a number of other key policy matters.
The $9.1 billion of cuts in spending come mainly in operation and maintenance
(O&M), $3.8 billion, and in general provisions of the bill, $2.6 billion (see Table
2
above). Within O&M, the major cuts include
! $332 million in Army depot maintenance because of a reduced
peacetime requirement, a cut of about 1/3 in the $974 million
requested — Title IX of the bill provides $2.5 billion for Army depot
maintenance and another $2.5 billion for Army reset, which involves
some similar maintenance at the unit level;
! $245 million for an Army peacetime training offset, referring to
training not done because troops are deployed abroad, a cut that
otherwise might offset requirements for additional funds in Title IX;
! $188 million in Army unobligated balances;
! $215 million for a Navy peacetime training offset;
! $200 million for unexplained growth in Air Force air operations;
! $160 million from deterring some Air Force facilities repairs;
! $275 million for an overstatement of Air Force civilian personnel;
! $400 million for Air Force peacetime flying hour requirements;
! $200 million for a reduction based on the increase from prior year
Air Force requirements;
! $108 million in Air Force unobligated balances;
! $220 million in Special Operations Command (SOCOM) funds
realigned in part to Title IX; and
! $108.8 million in defense-wide unobligated balances.
Within General Provisions of the bill, the major cuts include

CRS-47
! $53.2 million cut from Federally Funded Research and Development
Centers (FFRDCs);
! $985.3 million in rescissions of prior year appropriations;
! $92 million from unspecified Army and Air Force efficiencies;
! $71 million from advisory and assistance services;
! $85 million in travel funds; and
! $520 million for changed economic assumptions, applied
proportionately to amounts for procurement, R&D, and some other
titles of the bill.
On personnel-related policy, the committee
! provided funds for a pay raise of 2.2%, though the authorization
conference agreement may agree to a 2.7% raise as in the House bill;
! agreed to an increase of 30,000 in Army and 5,000 in Marine Corps
active duty end-strength, though with funds provided in Title IX (the
report does not explicitly make that point, but the funding totals in
Title IX reflect amounts the Administrations estimates would be
need for what it calls “overstrength”); and
! provided $164 million to support an Army National Guard end-
strength of 350,000 rather than the 333,000 for which funding was
requested.
On major weapons programs, the committee
! cut 6 helicopters and $40 million from the 18 aircraft and $141
million requested in the Army Armed Reconnaissance Helicopter
program;
! cut 223 aircraft and $18 million from the 39 aircraft and $199
million requested for the Army Light Utility Helicopter program;
! cut $78 million for Bradley Fighting Vehicle mods, but added funds
in Title IX;
! cut $254 million from the $3.7 billion requested for Future Combat
System R&D, compared to a $326 million cut in the House bill;
! cut $220 million for 1 of the 2 Littoral Combat Ships (LCS)
requested, complaining that Navy cost figures in the past were
incomplete and therefore understated costs;
! added $117 million for one oceanographic survey ship;
! eliminated the almost $1.3 billion requested in the Navy and Air
Force to begin procurement of the F-35 Joint Strike Fighter, but
added $340 million in R&D to continue development of an
alternative aircraft engine for the program;
! like the House, added $1.4 billion to fully fund procurement of 20
F-22 fighter aircraft;
! rejected the Administration proposal to shut down C-17 production
after FY2007 and shifted $329 million requested in the regular
budget to fund the shutdown to Title IX to purchase 7 aircraft;

CRS-48
! cut 4 aircraft and $257 million from the 12 aircraft and $905 million
requested for the Navy EA-18G aircraft and added $219 million for
4 F/A-18E/F aircraft — the House had cut all 12 EA-18s and added
funds for 12 F/A-18s;
! cut $230 million of the $867 million requested for Transformational
Communications Satellite R&D, compared to $100 million cut in the
House bill;
! cut $1090 million of the $266 million requested for the Space Radar
compared to $66 million cut in the House bill; and
! provided $340 million for National Guard and Reserve equipment,
compared to $500 million in the House bill.
For additional details on selected major weapons programs, see Table A6.
FY2007 Defense Appropriations — Highlights of Senate Floor
Action

The Senate began floor action on the defense appropriations bill on the evening
of August 1, and both the majority and minority leaders expressed the hope that the
Senate could complete action before adjourning for the August recess on Friday,
August 3. On Friday, however, Senator Reid said that as many as 50 Democratic
amendments remained to be addressed. Although Senator Stevens argued that the
Senate should stay through the night, in the end the leadership agreed to resume
consideration of the fill when the Senate returns on September 5.
Between the time the bill was reported on July 20 and the time the bill came up
on the floor, an ongoing debate about Army and Marine Corps readiness became
more heated. In June, Army and Marine Corps officials testified to congressional
committees about the estimated costs of “resetting” units to repair, upgrade, and
replace equipment either worn out or lost in overseas operations or left in the theater
by units returning to home. The Army estimated as yet unfunded, long term reset
costs of $17 billion and the Marine Corp estimated costs of $12-13 billion. In
addition, in July, leaders of the Army National Guard have said that it would take $21
billion over the next few years to reset ground forces and to reequip the force to meet
official requirements for new “modular” units.
In response, Senators Reed and Dayton announced that they would propose an
amendment to the appropriations bill to add $10 billion to “reset” Army and Marine
Corps units returning from operations abroad.
Between the time it began debate on August 1 and the time it adjourned on
August 3, the Senate disposed of 67 amendments. As is usually the case, most of the
amendments were non-controversial measures to add relatively small amounts for
specific projects. In addition to these measures, the Senate
! on the opening evening of debate on August 1, approved a proposal
by Senators Stevens and Inouye, Senate Amendment (SA) 4751, to

CRS-49
add $13.1 billion in emergency funds21 to reequip Army and Marine
Corps units returning from Iraq — this amendment was as an
alternative, approved by the White House and the Defense
Department, to an amendment earlier proposed by Senators Reed
and Dodd to add $10.2 billion to “reset” Army and Marine forces;
! approved an amendment by Senators Bond and Leahy, SA 4827, to
specify that $2.4 billion of the $13.1 billion provided in the
Stevens/Inouye amendment be allocated to National Guard and
Reserve units;
! approved, by a vote of 94-3, an amendment by Senator Sessions, SA
4775, adding $1.8 billion in emergency funds for fences and vehicle
barriers on the Mexican border — this was a substitute for a similar
amendment, SA 4788, by Senator Kyl;
! rejected, by a vote of 54-43, an amendment by Senator Durbin, SA
4781, to add $2 million, with an offset, for an Army medical R&D
program — in this, the Senate supported Senator Stevens’s effort to
limit the amount medical R&D earmarks;
! approved a proposal by Senator Coburn, SA 4848, to require the
Defense Department to list, identify the location, and assess the
utility of all congressional earmarks in the defense bill;
! approved another proposal by Senator Coburn, SA 4784, with
Senator Obama, to require the Defense Department to post
electronically all reports to Congress required by the act within 48
hours after they are submitted and to post all budget justification
material;
! approved, by a vote of 96-0, another amendment by Senator Coburn,
SA 4785, to require reports on the risk of improper Department of
Defense payments for travel; and
! approved and additional amendment by Senator Coburn, SA 4787,
to limit DOD funding for conferences to $70 million.
21 Technically, the amendment designates the additional funding as “emergency”
appropriations in the Senate and as “appropriations for contingency operations” in the
House. Section 402 of the Senate-passed FY2007 budget resolution exempts funds that are
designated as an “emergency requirement” from the cap that the resolution places on total
discretionary funding. Section 402 of the House-passed resolution exempts funding “for
contingency operations directly related to the global war on terrorism, and other
unanticipated defense-related operations.” In the Senate, most of the $50 billion provided
in Title IX as “Additional Appropriations” are designated as emergency funds, though, as
discussed above, $7.9 billion of the amount is made available when enacted, presumably
in FY2006. In the House, all of the $50 billion in Title IX for “Additional Appropriations”
are designated as being for “contingency operations directly related to the global war on
terrorism, and other unanticipated defense-related operations.”

CRS-50
Table 10 provides a list of Senate action these and other selected amendments
to the bill.
Table 10: Senate Floor Action on Selected Amendments:
Defense Appropriations Bill, H.R. 5631
#
Purpose
Sponsor
Status
Amendments Agreed To
4751
To appropriate as additional appropriations
Stevens
Aug 01, 2006
$7,800,000,000 for the Army and $5,300,000,000 for the
Amendment SA 4751
Marine Corps for the reset of equipment due to continuing
agreed to in Senate by
combat operations and to designate such amounts as
Unanimous Consent.
emergency requirements.
4772
To provide that none of the funds appropriated or
Carper
Aug 02, 2006
otherwise made available by this Act may be obligated or
Amendment SA 4772
expended to provide award fees to any defense contractor
agreed to in Senate by
for performance that does not meet the requirements of the
Unanimous Consent.
contract.
4775
To provide $1,829,100,000 for the Army National Guard
Sessions
Aug 02, 2006
for the construction of 370 miles of triple-layered fencing,
Amendment SA 4775 [to
and 461 miles of vehicle barriers along the southwest
SA 4788] as modified
border.
agreed to in Senate by
Yea-Nay Vote. 94 - 3.
Record Vote Number:
220.
4784
To require the posting of certain reports of the Department
Coburn
Aug 03, 2006
of Defense on the Internet website of the Department of
Amendment SA 4784 as
Defense.
modified agreed to in
Senate by Voice Vote.
4785
To ensure the fiscal integrity of travel payments made by
Coburn
Aug 03, 2006
the Department of Defense.
Amendment SA 4785 as
modified agreed to in
Senate by Yea-Nay
Vote. 96 - 0. Record
Vote Number: 224.
4787
To limit the funds available to the Department of Defense
Coburn
Aug 03, 2006
for expenses relating to conferences.
Amendment SA 4787
agreed to in Senate by
Voice Vote.
4788
To provide $1,829,000,000 for the Army National Guard
Kyl
Aug 02, 2006
for the construction of 370 miles of triple-layered fencing,
Amendment SA 4788
and 500 miles of vehicle barriers along the southwest
agreed to in Senate by
border.
Unanimous Consent.
[Note: Amended by SA
4775].
4801
To make available from Shipbuilding and Conversion,
DeWine
Aug 03, 2006
Navy, up to $10,000,000 for the Carrier Replacement
Amendment SA 4801 as
Program for advance procurement of nuclear propulsion
modified agreed to in
equipment.
Senate by Unanimous
Consent.

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4802
To require a new National Intelligence Estimate on
Kennedy
Aug 03, 2006
prospects for security and stability in Iraq.
Amendment SA 4802 as
modified agreed to in
Senate by Unanimous
Consent.
4819
To make available an additional $6,700,000,000 to fund
Dodd
Aug 02, 2006
equipment reset requirements resulting from continuing
Amendment SA 4819
combat operations, including repair, depot, and
agreed to in Senate by
procurement activities.
Yea-Nay Vote. 97 - 0.
Record Vote Number:
221.
4827
To ensure that of the $13.1 billion provided by SA 4751,
Bond
Aug 03, 2006
$2.4 billion is available for National Guard and Reserve
Amendment SA 4827 as
equipment.
modified agreed to in
Senate by Unanimous
Consent.
4848
To require notice to Congress and the public on earmarks
Coburn
Aug 03, 2006
of funds available to the Department of Defense.
Amendment SA 4848
agreed to in Senate by
Yea-Nay Vote. 96 - 1.
Record Vote Number:
226.
4851
To prohibit the use of funds for establishing United States
Biden
Aug 03, 2006
military installations in Iraq or exercising United States
Amendment SA 4851
control over the oil resources of Iraq.
agreed to in Senate by
Unanimous Consent.
4858
To prohibit the use of funds by the United States
Boxer
Aug 03, 2006
Government to enter into an agreement with the
Amendment SA 4858
Government of Iraq that would subject members of the
agreed to in Senate by
Armed Forces to the jurisdiction of Iraq criminal courts or
Yea-Nay Vote. 97 - 0.
punishment under Iraq law.
Record Vote Number:
225.
Amendment Rejected
4781
To appropriate, with an offset, an additional $2,000,000 for
Durbin
Aug 02, 2006 Motion to
Research, Development, Test and Evaluation, Army for the
table amendment SA
improvement of imaging for traumatic brain injuries.
4781 agreed to in Senate
by Yea-Nay Vote. 54 -
43. Record Vote
Number: 222.
4844
To make available from Research, Development, Test, and
Sessions
Aug 03, 2006
Evaluation, Navy, up to $77,000,000 for the Conventional
Amendment SA 4844
Trident Modification Program.
not agreed to in Senate
by Yea-Nay Vote. 31 -
67. Record Vote
Number: 227.
Amendments Ruled out of Order
4768
To provide emergency supplemental appropriations for
Cornyn
Aug 02, 2006
border security and immigration reform.
Amendment SA 4768
ruled out of order by the
chair.

CRS-52
4795
To provide for the extension and modification of certain
Reid
Aug 02, 2006
tax relief provisions, and for Surface Mining Control and
Amendment SA 4795
Reclamation Act amendments.
ruled out of order by the
chair.
4805
To improve Federal contracting and procurement by
Dorgan
Aug 02, 2006
eliminating fraud and abuse and improving competition in
Amendment SA 4805
contracting and procurement and by enhancing
ruled out of order by the
administration of Federal contracting personnel.
chair.
4806
To prohibit the suspension of royalties under certain
Kyl
Aug 02, 2006
circumstances, to clarify the authority to impose price
Amendment SA 4806
thresholds for certain leases, to limit the eligibility of
ruled out of order by the
certain lessees for new leases, and to restrict the transfer of
chair.
certain leases.
4853
To appropriate funds for a Cuba Fund for a Democratic
Nelson (FL)
Aug 03, 2006
Future to promote democratic transition in Cuba.
Amendment SA 4853
ruled out of order by the
chair.
4875
To increase by $200,000,000 the amount appropriated or
Stabenow
Aug 03, 2006
otherwise made available by title IX for the purpose of
Amendment SA 4875
supplying needed humanitarian assistance to the innocent
ruled out of order by the
Lebanese and Israeli civilians who have been affected by
chair.
the hostilities between Hezbollah and the Government of
Israel.

CRS-53
Appendix A: Additional Tables
Table A1. Administration Projection of National Defense Funding,
FY2007-FY2011
(budget authority in millions of dollars)
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
Military Personnel
115,824
113,147
114,603
117,879
121,166
124,589
Operation and Maintenance
178,346
152,646
159,338
165,260
171,925
174,523
Procurement
86,185
84,197
99,776
108,622
111,708
117,722
Research, Development, Test, and
71,046
73,444
74,388
75,128
73,232
70,626
Evaluation
Military Construction
8,936
12,613
12,872
12,592
11,957
10,644
Family Housing
4,439
4,085
3,182
3,108
2,960
2,967
Other
3,374
1,118
31
1,178
949
3,150
Anticipated Funding for War on
70,000
50,000
-
-
-
-
Terror
051 Subtotal, Department of
538,150
491,250
464,190
483,767
493,897
504,221
Defense — Military
053 Atomic energy defense
18,101
17,017
16,238
16,608
16,388
16,736
activities
054 Defense-related activities
5,564
4,758
4,794
4,878
4,979
5,150
Total, National defense
561,815
513,025
485,222
505,253
515,264
526,107
Sources: Office of Management and Budget, Historical Tables: Budget of the United States Government, FY2007,
February 2006; Department of Defense, National Defense Budget Estimates, Fiscal Year 2007, March 2006.

CRS-54
Table A2. Proposed Missile Defense Funding, FY2007-FY2011
(budget authority in millions of dollars)
Total
PE Number and Title
FY2007
FY2008
FY2009
FY2010
FY2011
FY07-11
Missile Defense Agency (MDA) RDT&E
0603175C Ballistic Missile Defense
207
183
214
223
228
1,055
Technology
0603881C Ballistic Missile Defense
1,038
904
682
754
469
3,847
Terminal Defense Segment
0603882C Ballistic Missile Defense
2,877
2,650
2,397
2,148
1,685
11,758
Midcourse Defense Segment
0603883C Ballistic Missile Defense Boost
632
577
456
457
687
2,809
Defense Segment
0603884C Ballistic Missile Defense Sensors
515
589
647
326
220
2,298
0603886C Ballistic Missile Defense System
406
425
895
1,202
1,675
4,603
Interceptors
0603888C Ballistic Missile Defense Test
600
595
629
635
656
3,114
and Targets (includes MILCON)
0603889C Ballistic Missile Defense
507
506
510
507
513
2,542
Products
0603890C Ballistic Missile Defense System
473
501
524
555
573
2,626
Core
0603891C Special Programs - MDA
375
715
630
725
695
3,140
0603892C Ballistic Missile Defense Aegis
1,032
952
980
973
799
4,736
0603893C Space Tracking & Surveillance
391
427
772
958
885
3,433
System
0603894C Multiple Kill Vehicle
165
286
357
413
505
1,726
0603895C BMD System Space Program
-
45
151
167
207
570
0901598C/ 0901585C Management
103
93
92
75
75
438
Headquarters / PRMRF
0207998C Base Realignment and Closure
-
85
19
3
-
107
(BRAC)
Total Missile Defense Agency R&D
9,318
9,536
9,956
10,121
9,873
48,803
RDT&E Army
0604869A PATRIOT/MEADS Combined
330
460
517
592
422
2,320
Aggregate Program
0203801A PATRIOT Product Improvement
11
11
11
12
13
58
Program
RDT&E The Joint Staff
0605126J Joint Theater Air and Missile
52
54
55
56
58
275
Defense Organization
Total Army, Joint Staff R&D
393
524
583
660
492
2,653
Procurement Army
PATRIOT PAC-3
489
473
479
0
0
1,441
PATRIOT/MEADS Combined Aggregate
0
90
65
430
674
1,259
Program
PATRIOT Modifications
70
77
50
54
56
307
Subtotal, Army Procurement
559
639
594
484
731
3,006

CRS-55
Total
PE Number and Title
FY2007
FY2008
FY2009
FY2010
FY2011
FY07-11
Operation and Support
PE Air Force Military Personnel
8
8
9
9
9
42
PE Air Force Operations and Maintenance
12
34
33
34
35
148
PE Air Force Other Procurement
1
11
0
18
26
57


PE Army Op

erations and Maintenance
68
70
71
73
75
358
PE Army Natl Guard Military Personnel
24
25
26
26
26
126
PE Army Natl Guard Operations and
0
0
0
0
0
1
Maintenance
PE Navy Operations and Maintenance
24
24
25
23
24
120
Subtotal Operation & Support
138
173
164
183
195
852
Grand Total Missile Defense R&D,
10,409
10,871
11,296
11,448
11,291
55,314
Procurement, O&S
Sources: Department of Defense, RDT&E Program Descriptive Summaries, FY2007: Missile Defense Agency, and other
budget justification material.
Table A3. Authorized and Actual Active Duty End-Strength,
FY2004-FY2007
(number of personnel at the end of each fiscal year)
Marine
Air
Total
Army
Navy
Corps
Force
Active
FY2004 Actual
482,400
373,800
175,000
359,300
1,390,500
FY2005 Authorized
502,400
365,900
178,000
359,700
1,406,000
FY2005 Actual
492,728
362,941
180,029
353,696
1,389,394
FY2006 Authorized
512,400
352,700
179,000
357,400
1,401,500
FY2007 Request
482,400
340,700
175,000
334,200
1,332,300
FY2007 House
512,400
340,700
180,000
334,200
1,367,300
FY2007 House vs Request
+30,000
0
+5,000
0
+35,000
FY2007 Senate
512,400
340,700
180,000
334,200
1,367,300
FY2007 Senate vs Request
+30,000
0
+5,000
0
+35,000
Sources: Office of Management and Budget, Budget of the United States Government, Fiscal Year
2007: Appendix
, Feb. 2006, p. 245; H.Rept. 109-452; S.Rept. 109-254.

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156.8
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Sources:
*Note:

CRS-66
Table A6. Emergency Funding, Authorization and Appropriations
(millions of dollars)
Authorization
Appropriations
Senate
Comm.
House
Senate
Conf.
House
Rept’d
Conf.
Military Personnel
9,362.8
7,335.9

5,992.1
5,760.8

Army
6,869.9
5,467.0

4,346.7
5,054.5

Army Reserve
150.0



90.9

Army National Guard
100.0


251.0
214.1

Navy
333.0
321.0

229.1
114.5

Navy Reserve



10.0


Marine Corps
749.4
466.1

495.5
142.3

Marine Reserve




15.4

Air Force
1,071.8
1,081.8

659.8
129.0

Air National Guard
36.7





Benefits
52.0





Operation and Maintenance
31,983.3
32,246.2

33,409.4
36,293.2

Army
22,397.0
22,124.5

24,280.0
24,037.2

Army Reserve




211.6
Army National Guard
50.0
59.0

220.0
204.0

Navy
1,834.6
2,349.6

1,954.1
1,284.2

Navy Reserve




8.0

Marine Corps
1,485.9
1,544.9

1,781.5
1,809.5

Air Force
2,823.0
2,779.9

2,987.1
1,940.6

Air Force Reserve




65.0

Air National Guard
15.4



200.0

Defense-Wide
3,377.4
3,388.4

2,186.7
2,383.2

Other*




4,150.0

Total Procurement
5,166.3
2,126.7

5,598.5
7,255.1

Army Procurement
3,773.8
1,755.1

3,562.1
3,421.8

Aircraft
232.4
404.1

132.4
556.0

Missiles

450.0




Weapons & Tracked Combat Vehicles
1,029.7
214.4

1,214.7
1,048.3

Ammunition
328.3


275.2

Other
2,183.4
686.6

1,939.8
1,817.5

Navy/Marine Corps Procurement
955.4
319.8

959.8
1,811.2

Aircraft



34.9
153.7

Weapons
131.4


131.4


Ammunition
143.2


143.2
99.9

Other
44.7


28.9
276.5

Marine Corps
636.1
319.8

621.5
1,281.1

Air Force Procurement
296.9
51.8

955.0
1,965.8

Aircraft
201.6


912.4
720.1

Missiles
32.7


32.7
25.4

Other
62.7
51.8

9.9
1,220.3

Defense-Wide Procurement
140.2


121.6
56.3

Total
140.2


121.6
56.3

Research, Development, Test, and Evaluation
37.5



298.2

Army
25.5





Navy




110.0

Air Force
7.0



33.1

Defense-Wide
5.0



155.1


CRS-67
Authorization
Appropriations
Senate
Comm.
House
Senate
Conf.
House
Rept’d
Conf.
Other Programs
3,450.2
8,291.2

5,000.0
392.7

Related Agencies




19.3

Revolving Funds, Fuel Prices



1,000.0
373.5
Defense Health Program
950.2
960.2




Classified Programs
2,500.0
3,000.0




Joint IED Defeat Fund*

2,100.0




Iraqi Freedom Fund*

2,231.0

4,000.0


Grand Total
50,000.0
50,000.0

50,000.0
50,000.0


CRS-68
Table A7. Authorization of Emergency Funds for
Procurement and R&D: Line Item Detail
(millions of dollars)
House
Senate
Conference
Total Procurement
5,166.3
2,126.7

Army Procurement
3,773.8
1,755.1

Aircraft
232.4
404.1

AH-64 Helicopters
49.5


UH-60 Battle Losses

71.0

CH-47 Helicopter
82.9
333.1

Joint IED Defeat Surveillance Platform
100.0

Missiles

450.0
Upgrade Patriot Battalions to Configuration 3

400.0
Additional PAC-3 Missiles (16)

50.0

Weapons & Tracked Combat Vehicles
1,029.7
214.4
Bradley Base Sustainment
380.0

Stryker
41.5


Stryker SLAT Armor
24.4


Abrams Upgrades (from Title I)
182.5


Abrams Upgrades
187.3
136.5

Abrams Urban Survivability Kits
77.0
77.9

Machine Guns (from Title I)
39.9


Machine Guns/Carbines
55.2


Phalanx Mods
42.0


Ammunition
328.3

Other Procurement, Army
2,183.4
686.6
Up-Armor HMMWVs
500.0
508.0
Up-Armor HMMWVs, Protection Measures
364.0


Armored Security Vehicles
83.0


Armored Security Vehicles (from Title I)
77.8


Heavy Expanded Mobility Trucks (HEMTT)
Mods
25.0
125.0

HEMTT ESP Mods (from Title I)
110.2


HMMWV Recapitalization (from Title I)
34.8


Fuel Tank Fire Suppression Kits
19.4


SINCGARS Radios (from Title I)
58.3


SINCGARS Radios
31.6


CSEL Radios (from Title I)
8.3


CSEL Radios
35.6


Improved HF Radios (from Title I)
45.7


Improved HF Radios
50.6


Land-Mobile Radios
30.0

Prophet Ground
48.3


Tactical Unmanned Aerial System (from Title I)
50.2


Counter-Mortar Radar
10.5


Night Vision Devices (from Title I)
160.5


Night Vision Devices
20.9


AN/TMQ-52 Profiler
23.6
23.6

FireFinder Radars (from Title I)
9.6


Force XXI Battle Command Sys (from Title I)
80.1


Force XXI Battle Command System
52.0


Route Clearance Team Equipment (from Title I)
68.1



CRS-69
House
Senate
Conference
HMMWV & Truck Trainers, National Guard
25.0


Joint IED Defeat Electronic Countermine
109.7


Manual Transport Robotic System
16.8


C-RAM
66.2


Navy/Marine Corps Procurement
955.4
319.8
Weapons, Navy
131.4

Hellfire II Missile, MC
122.0


Pioneer UAV Sustainment
9.4


Ammunition, Navy/Marine Corps
143.2


Other Procurement, Navy
44.7


ScanEagle UAV
39.7


Satcom Terminals
5.0


Marine Corps Procurement
636.1
319.8
AAV Armor Kits
7.0


HIMARS Add-On Armor
170.7
85.3

Small Arms Mods
50.0


Weapons Under $5 mn (from Title I)
4.5


TOW Bunker Buster Missiles
30.6


Night Vision Equipment
48.1


Night Vision Equipment (from Title I)
6.9


Radio Systems
120.4


Radio Systems (from Title I)
26.8


Up-Armor HMMWVs
84.7


Up-Armor HMMWVs (from Title I)
36.2


Cougar and Buffalo
100.0

Assault Breacher Vehicles
12.0
12.0

AAV7A1 Product Improvement
22.5

Gunner Protection Kits
100.0
EOD Systems
16.3


EOD Systems (from Title I)
7.4


MTVR Training Devices
3.9


Virtual Convoy Trainer
5.5


Biometric Automated Toolkits
2.3


ULCANS
3.0


Air Force Procurement
296.9
51.8

Aircraft
201.6


Predator UAV (from Title I)
114.6


Predator UAV
80.0


U-2 Aircraft
7.0


Missiles
32.7


Predator Hellfire Missiles (from Title I)
32.7


Other Procurement, Air Force
62.7
51.8

HMMWV Armored (from Title I)
4.2


HMMWV Up-Armored (from Title I)
5.7


HMMWV Up-Armored
51.8
51.8
U-2
1.0



CRS-70
House
Senate
Conference
Defense-Wide Procurement
140.2


MH-47 Reconstitution
4.1


Time Delay Firing Device
7.5


Persistent Predator Operations
13.4


Predator Payload Integration
6.0


Specialized Ballistic Protection
2.2


Counter Ambush Weapons System
6.3


MH-47 Radio Frequency Countermeasures
44.0


M134DT Mini-Gun Replacement
13.9


Miniature Multi-Band Beacons
8.9


Small Arms Laser Acquisition Marker
5.3


Clip-On Night Vision Device
12.6


Special Weapons Observation System
6.0


Thermal Clip-On Night Vision Device
10.0


Research, Development, Test, and Evaluation
37.6


Army
25.5


C-RAM
25.5


Air Force
7.0


U-2
7.0


Defense-Wide
5.1


Pacific Wind
4.1


Specialized Ballistic Protection
1.0


Sources: H.Rept. 109-452; S.Rept. 109-254.

CRS-71
For Additional Reading
CRS Report RL33110, The Cost of Iraq, Afghanistan, and Other Global War on
Terror Operations Since 9/11
, by Amy Belasco.
CRS Report RL33298, FY2006 Supplemental Appropriations: Iraq and Other
International Activities; Additional Katrina Hurricane Relief
, coordinated by Paul
M. Irwin and Larry Nowels.
CRS Report RS22455, Military Operations: Precedents for Funding Contingency
Operations in Regular or in Supplemental Appropriations Bills
, by Stephen Daggett.
CRS Report 98-756C, Defense Authorization and Appropriations Bills:
FY1970-FY2006
, by Thomas Coipuram Jr.
FY2007 Defense Budget Issues for Congress: Slides from a CRS Seminar, February
10, 2006, by Stephen Daggett, Ronald O’Rourke, and Charles A. Henning. Available
on line at [http://www.crs.gov/products/browse/documents/WD00005.pdf].
CRS Report RS20851, Naval Transformation: Background and Issues for Congress,
by Ronald O’Rourke.
CRS Report RL32665, Navy Force Structure and Shipbuilding Plans: Background
and Issues for Congress
, by Ronald O’Rourke.
CRS Report RL32513, Navy-Marine Corps Amphibious and Maritime
Prepositioning Ship Programs: Background and Oversight Issues for Congress
, by
Ronald O’Rourke.
CRS Report RL32418, Navy Attack Submarine Force-Level Goal and Procurement
Rate: Background and Issues for Congress
, by Ronald O’Rourke.
CRS Report RL33161, The Joint Tactical Radio System (JTRS) and the Army’s
Future Combat System (FCS): Issues for Congress
, by Andrew Feickert.
CRS Report RL32888, The Army’s Future Combat System (FCS): Background and
Issues for Congress
, by Andrew Feickert.
CRS Report RL32476, U.S. Army’s Modular Redesign: Issues for Congress, by
Andrew Feickert.
CRS Report RL33390, Proposed Termination of Joint Strike Fighter (JSF) F136
Alternate Engine
by Christopher Bolkcom.
CRS Report RL33543, Tactical Aircraft Modernization: Issues for Congress, by
Christopher Bolkcom.
CRS Report RS20859, Air Force Transformation, by Christopher Bolkcom.

CRS-72
CRS Report RL30563, F-35 Joint Strike Fighter (JSF) Program: Background,
Status, and Issues
, by Christopher Bolkcom.
CRS Report RL30685, Military Airlift: C-17 Aircraft Program, by Christopher
Bolkcom.
CRS Report RL33067, Conventional Warheads For Long-Range Ballistic Missiles:
Background and Issues for Congress
, by Amy F. Woolf.
CRS Report RS21754, Military Forces: What is the Appropriate Size for the United
States?
, by Edward F. Bruner.
CRS Report RS22402, Increases in Tricare Fees: Background and Options for
Congress
, by Richard A. Best Jr.
CRS Report RL33446, Military Pay and Benefits: Key Questions and Answers, by
Charles A. Henning.
CRS Report RL33432, U.S. Disposal of Chemical Weapons in the Ocean:
Background and Issues for Congress
, by David Bearden.
CRS Report RS21988, Radioactive Tank Waste from the Past Production of Nuclear
Weapons: Background and Issues for Congress
, by David Bearden.