Department of Defense “Section 1207”
Security and Stabilization Assistance:
Background and Congressional Concerns

Nina M. Serafino
Specialist in International Security Affairs
June 3, 2009
Congressional Research Service
7-5700
www.crs.gov
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Department of Defense “Section 1207” Security and Stabilization Assistance

Summary
Section 1207 of the National Defense Authorization Act (NDAA) for Fiscal Year 2006 (P.L. 109-
163) provides authority for the Department of Defense (DOD) to transfer to the State Department
up to $100 million per fiscal year in defense articles, services, training or other support for
reconstruction, stabilization, and security activities in foreign countries. DOD transferred $10
million in FY2006, $99.7 million in FY2007, and $100 million in FY2008 under this authority.
For FY2009, Congress added special authority to transfer up to an additional $50 million for
Georgia. To date in FY2009, DOD has transferred to the State Department $94.8 million in
FY2009 Section 1207 funds. In all, these funds have supported projects in 14 countries and two
regions.
The 1111th Congress must decide whether to extend Section 1207, which expires on September 30,
2009. In its FY2010 budget submission, DOD has requested $200 million in FY2010
appropriations for Section 1207, double the currently authorized account. DOD does not appear
to have made a decision on requesting an extension of Section 1207 authority beyond FY2010, as
there is no Section 1207 language in the proposed NDAA that DOD sent to Congress on May 13,
2009. DOD indicated, however, that further requests for FY2010 NDAA language may be
forthcoming.
In considering whether to extend Section 1207 again, the 111th Congress may wish to take into
account various issues regarding the use of DOD funds for State Department activities. Principal
among them are whether projects funded under Section 1207 authority are being used for the
purposes intended by Congress, and whether funding intended for use by the State Department is
better funded under the State Department budget.
This report will be updated as events warrant.

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Department of Defense “Section 1207” Security and Stabilization Assistance

Contents
Introduction ................................................................................................................................ 1
Conditions ............................................................................................................................ 1
Funding Sources and Transfers.............................................................................................. 2
Congressional Action and Statements .......................................................................................... 2
2005-2007............................................................................................................................. 2
2008 ..................................................................................................................................... 3
2009 ..................................................................................................................................... 3
Congressional Concerns .............................................................................................................. 4

Tables
Table 1. Section 1207 Funded Projects, by Country or Region, FY2006-FY2008......................... 6

Contacts
Author Contact Information ........................................................................................................ 8

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Department of Defense “Section 1207” Security and Stabilization Assistance

Introduction
In its May 2009 budget submission, the Department of Defense (DOD) has requested $200
million in DOD appropriations for transfer to the State Department to support civilian
stabilization activities. Congressional approval of this appropriation would constitute an increase
in the amount and an extension of the “Section 1207” authority Congress first provided in 2005 to
DOD to make such transfers. (Section 1207 of the National Defense Authorization Act [NDAA]
for Fiscal Year 2006, P.L. 109-163.) DOD is expected shortly to submit a corresponding
authorization request.
Section 1207 of P.L. 109-163 provided authority for DOD to transfer to the State Department up
to $100 million in defense articles, services, training or other support in FY2006 and again in
FY2007 to use for reconstruction, stabilization, and security activities in foreign countries. This
authority was first extended through FY2008 by Section 1210 of the FY2008 NDAA (P.L. 110-
181) and again extended through FY2009 by Section 1207 of the FY2009 Duncan Hunter NDAA
(P.L. 110-417). The FY2009 Duncan Hunter NDAA provides special authority for up to $50
million to be spent under Section 1207 for Georgia, in addition to the up to $100 million
authorized for other countries.
Section 1207 authority has been used to fund activities of the State Department’s Office of the
Coordinator for Reconstruction and Stabilization (S/CRS, established in 2004) and activities
implemented by other agencies that are coordinated by S/CRS, including activities of USAID.
These funds have supported activities in 14 countries and in two regions. (For further information
on these countries and projects, see the text below and Table 1 at the end of this report.)
According to a United States Institute of Peace (USIP) report, Section 1207 was introduced “in
response to requests from Defense Secretary Donald Rumsfeld and Secretary of State
Condeleezza Rice to help jump start S/CRS by providing authorization and funding for projects
that would involve interagency coordination. This action was taken in recognition of the fact that
Congress was unable to pass a State Department authorization bill that would authorize S/CRS to
conduct a comparable program1 and “because of the perception that it was easier to obtain
funding from Congress” in the DOD bill rather than the State Department bill.2
Conditions
Section 1207 authority requires that any services, defense articles, or funds provided or
transferred to the Secretary of State comply with the authorities and limitations of the Foreign
Assistance Act of 1961, the Arms Export Control Act, or any law making appropriations to carry
out such Act. The Secretary of Defense must notify congressional armed services, foreign affairs,
and appropriations committees when the authority is exercised; the notification must be prepared
“in coordination” with the Secretary of State. As of FY2009, Section 1207 funds may not be used
to support the budgets of foreign governments.

1 Robert M. Perito, Integrated Security Assistance: The 1207 Program, United States Institute of Peace Special Report,
July 2008, p. 2.. (Hereafter referred to as Integrated Security Assistance.)
2 Integrated Security Assistance, p. 3.
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Department of Defense “Section 1207” Security and Stabilization Assistance

Funding Sources and Transfers
Section 1207 legislation does not specify a funding source. From FY2006 to FY2008, DOD
tapped operations and maintenance (O&M) funds from the three military services and from the
DOD defense-wide account to make these transfers. For FY2009, Congress appropriated $100
million specifically for Section 1207 funding, although it had authorized up to $150 million in
Section 1207 spending.
In FY2006, DOD transferred $10 million to the State Department for assistance to Lebanon in the
midst of the Lebanese conflict. According to a spokesperson for S/CRS, DOD lacked the funds
for further transfers through this authority in FY2006, even though the authorized amount was
$100 million.
In FY2007, DOD transferred a total of $99.7 million to the State Department for programs in
seven countries and regions. DOD described the projects funded in FY2007 as “a few small
focused activities in various critical countries/regions to demonstrate proof of concept” and
judged that while largely successful, “most could have more significant impact if continued or
expanded.”3 Countries benefiting from FY2007 Section 1207 funds were Colombia, Haiti, Nepal,
Somalia, and Yemen. In addition, FY2007 funds supported regional activities in Southeast Asia
and in the Trans-Sahara region.
In FY2008, DOD provided $100 million in transfers from the DOD budget. This included $50
million for Georgia and $50 million for activities in six other countries: Afghanistan, Colombia,
Democratic Republic of Congo, Lebanon, Sri Lanka, and Tajikistan.
Thus far in FY2009, DOD has transferred a total of $94.8 million to the State Department: $50
million for activities in Georgia and $44.7 million for activities in six other countries. The other
countries are Bangladesh, Democratic Republic of Congo, Kenya, Lebanon, Philippines, and Sri
Lanka.
Congressional Action and Statements
2005-2007
Section 1207 authority was the result of a Senate floor amendment offered by Senator James
Inhofe to the Senate version of the FY2006 NDAA (S. 1042), which would have provided
funding up to $200 million per fiscal year. (For FY2006, the Administration had asked for $200
million for a State Department Conflict response fund, but neither authority nor funding was
provided in non-DOD legislation.)4
Conferees on the FY2006 DOD authorization bill stated in their explanatory statement (H.Rept.
109-360), that they were providing “a temporary authority ... to the Department of State until

3 U.S. Department of Defense, Fiscal Year 2009 Budget Request Summary Justification, February 4, 2008, p. 104.
4 For more on the conflict response fund, see CRS Report RL32862, Peacekeeping/Stabilization and Conflict
Transitions: Background and Congressional Action on the Civilian Response/Reserve Corps and other Civilian
Stabilization and Reconstruction Capabilities
, by Nina M. Serafino.
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Department of Defense “Section 1207” Security and Stabilization Assistance

S/CRS is fully stood up and adequately resourced.” Further, the conferees on that bill stated that
they were not inclined to continue authorizing DOD funds to enable the State Department to
“fulfill its statutory authorities.” Subsequently, the Senate Armed Services Committee (SASC), in
its report on S. 1547 (S.Rept. 110-77), the Senate version of the FY2008 NDAA, described
Section 1207 as a “pilot project.”
In addition to extending the authority through FY2008, Section 1210 of the FY2008 NDAA (P.L.
110-181) augmented the role played by the Secretary of Defense. Under the FY2006 NDAA, the
Secretary of Defense’s role was limited to providing services and transferring defense articles and
funds to the Secretary of State. The FY2008 NDAA included a provision requiring the Secretary
of State to “coordinate with the Secretary of Defense in the formulation and implementation of a
program of reconstruction, security, or stabilization assistance to a foreign country that involves
the provision of services or transfer of defense articles or funds” under this authority.
2008
In action on the FY2009 NDAA, Congress extended the $100 million Section 1207 transfer
authority for one fiscal year, through FY2009. In a March 20, 2008, letter, DOD requested that
Congress double Section 1207 authorized funding to $200 million per year, extend the authority
for five fiscal years, and broaden the authority to permit DOD to provide that services or transfer
defense articles and funds to the head of any U.S. government department or agency, not just the
Department of State. As reported by SASC, the FY2009 NDAA (S. 3001) would have doubled
the authorized amount to $200 million, as requested by DOD, and would have extended Section
1207 authority three years, through September 30, 2011.5
The conference version of the bill conformed to the House Armed Services Committee (HASC)
version of the FY2009 NDAA (H.R. 5658), which did not change the authorized amount and
provided for a one-year extension. Nevertheless, Congress did approve a special additional
authority under Section 1207 to provide up to $50 million in Section 1207 assistance to Georgia
in FY2009. (S. 3001 was signed into law, P.L. 110-417, on October 14, 2008.) In addition,
Congress amended the original legislation to prohibit the use of Section 1207 funds to support the
budgets of foreign governments.
2009
In early May, DOD indicated in the DOD Summary Budget Justification document that it was
requesting a $200 million appropriation for Section 1207 FY2010 funding.6 The Obama
Administration’s proposed National Defense Authorization Act for FY2010 does not contain a
corresponding provision requesting that Congress extend Section 1207 authority through at least
FY2010 and increase the authorized transfer amount by $100 million. DOD’s cover letter
transmitting the proposed legislation to Congress states, however, that DOD will submit

5 In testimony before Congress in April 2008, Secretary of Defense Gates requested that Section 1207 authority be
extended for five years and the amount be doubled to $200 million. House Committee on Armed Services, Hearing on
Building Partnership Capacity and Development of the Interagency Process
, April 15, 2008. Video and audio versions
of the hearing are available through http://armedservices.house.gov/comdocs/schedules/2008.shtml, last accessed June
1, 2009.
6 U.S. Department of Defense, Fiscal Year 2010 Budget Request Summary Justification, May 2009, p. 1-13. Hereafter
referred to as FY2010 Budget Justification..
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Department of Defense “Section 1207” Security and Stabilization Assistance

additional legislative provisions to be added to the bill in the coming weeks. An additional request
regarding Section 1207 is expected shortly.
Congressional Concerns
From the beginning, there has been some confusion about the appropriate uses of Section 1207
and questions about the desirability of funding State Department activities through the DOD
budget. HASC and SASC reports on the their respective versions of the FY2009 NDAA both
state separate concerns about Section 1207 authority, reflecting a perceived need to clarify
intended purposes and restate the original congressional intention that Section 1207 was to be a
temporary authority.
In its report accompanying S. 3001 (S.Rept. 110-335, May 12, 2008), SASC stated that DOD had
“inappropriately restricted” the uses for which Section 1207 services or funds can be provided to
the State Department. Pointing to the Secretary of Defense’s April 15, 2008, testimony at a HASC
hearing that Section 1207 authority “is primarily for bringing civilian expertise to operate
alongside or in place of our armed forces,” SASC stated that the legislative intent of Section 1207
authority was broader, and was meant “to enable the Secretary of Defense to support the
provision by the Secretary of State of reconstruction, security, or stabilization assistance to a
foreign country.” SASC further stated such assistance could include “providing early civilian
resources to avert a crisis that could otherwise subsequently require U.S. military forces to assist
or intervene.”7 In May 2009, DOD seemed to reply to this statement in its FY2010 Budget
Request Summary Justification document, in which it asserts that Section 1207 funding is “for
reconstruction, security, or stabilization assistance—primarily to put civilian professionals
alongside warfighters, or to provide early civilian resources to avert crises that could require U.S.
military forces to intervene.”8
In its report accompanying H.R. 5658 (H.Rept. 110-652, May 16, 2008), HASC stated that the
committee “reaffirms that the resources provided under this authority are intended to meet
immediate, short-term needs.” The committee reiterated the concern expressed in the conference
report accompanying the original Section 1207 legislation (H.Rept. 109-360) that DOD should
not provide long-term funding in order to enable the Department of State to “fulfill its statutory
requirements.” This concern, according to H.Rept. 110-652, applied to both long-term
development programs and to the broader security assistance initiatives “that would be better
suited for traditional foreign military financing authorities.”

7 In February 2008, the State Department and DOD set forth guidance for Section 1207 proposals that clarified the uses
of the fund and procedures for developing proposals and coordinating with other agencies and programs. This
document specifies that programs should “clearly advance U.S. security interests by promoting regional stability and/or
building governance capacity of foreign partners to address conflict, instability, and sources of terrorism,” “focus on
security, stabilization, or reconstruction objectives in regions and countries where a failure to act could lead to the
deployment of U.S. forces,” “address urgent or emergent threats or opportunities that conventional foreign assistance
activities cannot address in the required time frame,” “seek to achieve short term security, stabilization, or
reconstruction objectives that are coordinated with longer-term development efforts and that are expected to be
sustained by the host government, international organizations, or other forms of U.S. foreign assistance,” and “address
stability, security, and development goals from a holistic perspective, integrating initiatives across multiple sectors.”
(See http://www.crs.state.gov/index.cfm?fuseactions=public.display&shortcut=4PRW.)
8 FY 2010 Budget Justification, May 2009, pp. 1-13. This statement continues: “These programs help to promote
stability and to reduce terrorist space and influence. The programs are often executed in the same place where U.S.
forces are operating or may be forced to operate if conditions worsened.”
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In addition to some Members of Congress, some outside analysts believe that Section 1207
activities would be better funded through the State Department. (DOD has never requested that
Section 1207 be made permanent law, although it did, as mentioned above, request in 2008 that
Congress extend the authority for five fiscal years.) While noting the utility of DOD Section 1207
funding, which enables the U.S. government “to meet critical needs and to take advantage of key
opportunities,” the USIP report mentioned above urges that in the future Congress appropriate
such quick reaction funding to the State Department. “The DOD could still participate in deciding
on project proposals, but the money would be guaranteed and could be made available more
quickly. This would require coordinating the efforts of various congressional committees, but it
would restore the traditional role of the DOS [Department of State] in funding U.S. foreign
assistance.”9
Thus far, the Obama Administration does not appear to have decided whether DOD should
continue funding Section 1207 beyond FY2010. In his May 13 testimony before HASC,
Secretary of Defense Gates judged Section 1207 “a very worthwhile program” and one that “has
served a very valuable purpose.... ”10 He indicated, however, that no decision had yet been made
on the future of DOD funding for Section 1207 beyond FY2010, and that the decision would be
contingent on the availability of funding elsewhere for stabilization and reconstruction purposes
from other sources. “I think that’s something that I’ll need to sit down with Secretary Clinton [to
talk about] and also talk within our own building in terms of the longer range future for 1207.”11


9 Integrating Security Assistance, p. 11.
10 U.S. House of Representatives, House Armed Services Committee, Hearing on the Fiscal Year 2010 Defense
Department Budget Request
, May 13, 2009, CQ Transcriptions: Congressional Quarterly, Inc. 2009, p. 57.
11 Ibid.
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Table 1. Section 1207 Funded Projects, by Country or Region, FY2006-FY2008

Amount ($ millions)
Country Project’s
Purpose
FY06 FY07 FY08 FY09
Afghanistan
Renovate the Pol-e-Charki prison.
10.0

Bangladesh
Provide mentoring, training, and technical assistance to enhance community-based policing skills, and to
8.0
provide outreach to communities and training to local volunteer groups in order to strengthen ties between
communities and government authorities.
Colombia
Help provide, with FY07 funds, basic health, education, and infrastructure in areas recently reclaimed from
4.0 5.0
insurgents through the Initial Government Response Program. FY08 funds support implementation of the
Integrated Consolidation Plan for La Macarena Region (PCIM), a unified military and civilian strategy.
Democratic
Extend central government authority to Eastern Congo. FY08 funds used to enhance border police
9.1
2.8
Republic of
capabilities to control the border in Northern Katanga; extend reach of justice services and facilitate
Congo
prosecution in remote areas; increase the activity and accountability of local governments. FY09 funds
improve the prosecution and adjudication of gender-based violence and other crimes, and reinforce provincial
government capacity to provide key services.
Georgia
With FY08 funds, rebuild the police force ($20 million) and meet priority food, shelter, and livelihood
50.0
50.0
requirements for internally displaced persons in Shida Kartli ($30 million). FY09 funds provide stabilization
assistance in the aftermath of the August 2008 conflict with Russia. Assistance includes resettlement and
livelihood support, and vocational training for Internally Displaced Persons; rebuilding of schools and
municipal infrastructure; landmine surveys and clearance; and restoration of Georgian Coast Guard
infrastructure.
Haiti
Combine community policing with small-scale employment and infrastructure projects to improve security
20.0
and stability and extend central government authority in Cite Soleil, Port au Prince’s largest slum (Haiti
Stabilization Initiative.)
Kenya
In the areas most affected by post-election violence in late 2007 and early 2008, support leadership
8.0
development and positive civic engagement among disaffected youth, improve morale within police units and
foster trust between police and local communities; enhance Kenyan military’s ability to provide security and
stability, help train military engineers in civil affairs; and provide equipment for rebuilding infrastructure
damaged by post-election violence.
Lebanon
With FY06 funds, clear unexploded ordnance posing an immediate threat to noncombatants ($5 million).
10.0 10.0
10.0
Help train and outfit additional Lebanese Internal Security Force (ISF) members (i.e., Lebanon’s national
police) to allow police to free Lebanese Army forces performing policing duties in the Bekaa Valley to enforce
the Israeli-Hezbollah cease-fire in southern Lebanon ($5 million). With FY07 funds, strengthen the ISF
CRS-6


Amount ($ millions)
Country Project’s
Purpose
FY06 FY07 FY08 FY09
communications capacity ($5.0 million) and assist the ISF in introducing community and proximity policing in
the Nahr al-Bared Palestinian refugee camp and surrounding areas ($5 million). With FY09 funds, strengthen
ISF forces ability to provide security by implementing a nation-wide communications system that will help
them perform police duties and reduce vulnerability to outside interference and surveillance.
Nepal
Extend the government’s police presence to four districts at risk of communist domination and create
10.0
community-based infrastructure projects in those districts.

Philippines Support
community
policing, improve three model police stations, and upgrade capabilities of the Regional

14.0
Crime Lab in Zamboanga City, Mindanao. Also construct roads and boat landings in Mindanao.
Somalia
Support civilian police reform, security and justice infrastructure rehabilitation, youth employment and
25.0
income generation activities ($17.5 million, Somalia Reconciliation and Stabilization Program), and enhance
community-police coordination for cross-border security and to establish neutral zones ($7.5 million).
Sri Lanka
With FY08 funds, support programs to improve livelihoods for conflict-affected populations, assist
6.0
2.0
government institutions, building the technical capacity of municipal and provincial governments, encourage
citizen participation, and foster a bilingual environment in Sri Lanka’s eastern province. With FY09 funds,
complement Section 1207-funded FY08 projects by improving basic policing skills and practices in the East by
training civilian police officers.
Tajikistan
Provide training and technical assistance to local government, local law enforcement representatives, and
9.9
community leaders to enhance skills to promote stability in conflict-affected and unstable areas, including the
Ferghana and Rasht Valleys and the Afghan border areas.
Yemen
Promote stability by assisting in areas where the central government is largely absent in order to deter youths
8.8
from joining terrorist groups.
Southeast Asia
Support the multi-year, interagency , “3-D” (diplomacy, development, and defense) Southeast Asia Tri-border
16.9
Region
Initiative to deter terrorist recruitment and deny terrorists sanctuary in Indonesia, Malaysia, and the
Philippines.
Trans-Sahara
Support Trans-Sahara Counter-Terrorism Partnership programs in Mali, Niger, and Mauritania to reduce
15.0
Region
terrorist recruiting and sanctuary areas.
Totals
10.0 99.7
100.0 94.8
Source: Office of the Secretary of Defense. FY2006-FY2009 figures verified June 1, 2009.
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Department of Defense “Section 1207” Security and Stabilization Assistance



Author Contact Information

Nina M. Serafino

Specialist in International Security Affairs
nserafino@crs.loc.gov, 7-7667



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