FY2025 NDAA: Military Construction and Housing Authorizations

FY2025 NDAA: Military Construction and Housing Authorizations

CRS INSIGHT Prepared for Members and Committees of Congress

INSIGHTi

FY2025 NDAA: Military Construction and Housing Authorizations

August 28, 2024

For fiscal year 2025 (FY2025), the Biden Administration requested $17.545 billion for U.S. Department of Defense (DOD) military construction (MILCON) accounts and family housing programs (a total that is 6% less than the $18.675 billion enacted by Congress for MILCON and family housing in the previous year).

On May 31, 2024, the House Armed Services Committee (HASC) reported the Servicemember Quality of Life Improvement and National Defense Authorization Act (NDAA) for Fiscal Year 2025 (H.R. 8070), and an accompanying report, H.Rept. 118-529. On June 14, the House passed H.R. 8070, which would authorize $17.545 billion for DOD MILCON and family housing accounts, equal to the Administration’s requested amount.

On July 8, 2024, the Senate Armed Services Committee (SASC) reported S. 4638, the National Defense Authorization Act for Fiscal Year 2025, and an accompanying report, S.Rept. 118-188. The legislation would authorize $20.664 billion for traditional military construction and family housing accounts, 15% more than the requested amount. The SASC-reported bill would also provide an additional $12.5 billion to repair Air Force and Navy facilities on Guam that were damaged by a 2023 typhoon. The additional disaster relief funding—which is not present in H.R. 8070—brings S. 4638’s total MILCON and family housing authorization to $33.169 billion, 89% more than the Administration’s requested amount.

Details of the funding levels for selected MILCON and family housing accounts are contained in Table 1.

Table 1. FY2025 NDAA Authorizations for Selected Military Construction Accounts

(in thousands of dollars of discretionary budget authority)

FY2024

Enacted

FY25

President’s

Budget

Request H.R. 8070 S. 4638

Military Construction, Army $2,022,775 $2,311,157 $2,149,957 $2,361,328

Military Construction, Navy $5,531,369 $4,540,899 $4,104,429 $6,547,616

Congressional Research Service

https://crsreports.congress.gov

IN12411

Congressional Research Service 2

FY2024

Enacted

FY25

President’s

Budget

Request H.R. 8070 S. 4638

Military Construction, Air Force $2,741,424 $3,187,126 $3,410,837 $3,568,766

Military Construction, Defense-wide $3,161,782 $3,733,163 $3,636,722 $3,735,946

Military Construction, Army National Guard $620,647 $362,129 $448,529 $555,181

Military Construction, Air National Guard $295,526 $190,792 $238,792 $314,192

Military Construction, Army Reserve $151,076 $255,032 $429,032 $352,632

Military Construction, Navy and Marine Reserve $51,291 $29,829 $114,829 $104,829

Military Construction, Air Force Reserve $331,572 $69,263 $121,263 $96,283

NATO Security Investment Program $293,434 $433,864 $433,864 $463,864

Family Housinga $1,970,751 $1,983,864 $1,933,864 $1,965,864

Base Realignment and Closure (BRAC) $489,174 $447,961 $522,961 $447,961

INDOPACOM MILCON Pilot $0 $0 $0 $150,000

Total Military Construction, Family Housing and BRAC

$18,675,000 $17,545,079 $17,545,079 $20,664,462

Disaster Recovery, Navy (Guam) $0 $1,224,771b $0 $4,566,940

Disaster Recovery, Air Force (Guam) $0 $71,197b $0 $7,938,000

Total Division B, Military Construction $18,675,000 $18,841,047 $17,545,079 $33,169,402

Source: P.L. 118-42; President’s Budget Request FY2025, Office of the Under Secretary of Defense (Comptroller), Construction Programs (C-1), March 2024; White House Letter Regarding Critical Supplemental Funding Needs, June 2024, and Funding Request to Meet Critical Needs, H.R. 8070, Sec. 4601, and S. 4368, Sec. 4601 and 4602. Notes: a. Family Housing budget numbers include Family Housing Construction accounts, Family Housing Operation and Maintenance accounts, the Family Housing Improvement Fund (FHIF), and the Unaccompanied Housing Improvement Fund (UHIF).

b. The Biden Administration’s request for disaster recovery was not included in the President’s Budget Request submitted to Congress in March 2024, but was submitted under a separate supplemental request, first in October 2023 and resubmitted in June 2024.

H.R. 8070

The House bill contains 36 Community Project Funding items, totaling $1.338 billion.

The House bill contains certain provisions that may impact laws, funding, and oversight mechanisms related to military construction and family housing programs. Selected provisions from the bill are listed and briefly described below.

Section 2801 would authorize the development and operation of a “Naval Innovation Center” at the Naval Postgraduate School in Monterey, California; the provision would also authorize the Secretary of Defense to accept financial gifts to support the center.

Section 2802 would authorize DOD’s Office of Local Defense Community Cooperation (OLDCC) to expand a grant program that supports local initiatives for economic adjustment and diversification. Specifically, the provision would authorize grants to local governments (in addition to state governments),

Congressional Research Service 3

along with grants for “public infrastructure projects and services that enhance the capabilities and resilience of the defense industrial base and the defense industrial base workers.”

Section 2803 would authorize DOD’s OLDCC to expand certain grant programs to include the Coast Guard.

Section 2804 would authorize DOD’s OLDCC to expand the Defense Community Infrastructure Program (DCIP) to include “not-for-profit, member-owned utility services” among eligible recipients.

Section 2805 would raise spending limits for certain aspects of the Defense Laboratory Modernization Program.

Section 2807 would expand authority for funding MILCON projects for stormwater management and defense access roads.

Section 2808 would amend the FY2024 NDAA provision that increased the threshold for unspecified minor military construction (UMMC) projects in the Indo-Pacific Command’s (INDOPACCOM’s) Area of Responsibility. Specifically, the provision in Section 2808 would raise the threshold for UMMC from $15 million to $20 million.

Section 2822 would impose additional requirements for the development of a DOD-wide database of complaints related to military housing. Similarly, Section 2825 would restrict availability of certain DOD funds until DOD implements existing law requiring creation of a database of military housing complaints.

S. 4638

The SASC-reported bill contains certain provisions that may impact laws, funding, and oversight mechanisms related to military construction and family housing programs. Selected provisions from the bill are listed and briefly described below.

Section 2801 would amend the statute governing UMMC (10 U.S.C. §2805) to authorize the Secretary of Defense to acquire land with UMMC appropriations.

Section 2802 would extend temporary authority for the Secretary of Defense to convey property at military installations.

Section 2804 would amend the FY2024 NDAA provision that increased the threshold for UMMC projects in the INDOPACCOM’s Area of Responsibility. Specifically, the provision would raise the threshold for minor military construction from $15 million to $30 million.

Section 2805 would amend the statute (10 U.S.C. §2854) authorizing the restoration or replacement of damaged or destroyed facilities. The provision would require that any restoration or replacement project be designed to prevent damage or destruction by the cause or causes that generated the original damage or destruction.

Section 2806 would expand the law that authorizes DOD to lease certain non-excess property; specifically, the provision would add additional types of in-kind consideration that DOD may accept as a part of such leasing.

Section 2808 would impose new requirements on DOD for obligating and executing funds appropriated for the purpose of designing a military construction project.

Section 2810 would impose a new requirement to limit the aggregate growth of square footage of DOD buildings. Specifically, the provision requires that for any square footage of growth in a military building, DOD must offset that amount of growth in space by an equivalent reduction of square footage in another facility by means such as demolition or disposal.

Congressional Research Service 4

IN12411 · VERSION 1 · NEW

Section 2811 would create a new pilot program intended to optimize the Army’s infrastructure footprint by authorizing the use of UMMC funding for certain projects that the Secretary of the Army determines will reduce overall square footage and “create more livable, productive, and resilient communities.”

Section 2015 would set new requirements for the military departments to provide funding for facilities sustainment, restoration and modernization (FSRM). A subcomponent of the services’ Operation and Maintenance accounts, FSRM funding is intended to improve the condition of existing infrastructure. Specifically, the provision in Section 2015 would require the military departments to invest FSRM funds in an amount equal to certain percentages of the total plant replacement value (PRV) of all facilities maintained by the department. The required investment would begin in FY2026 at 1.75% of total PRV. The requirement would increase incrementally until FY2029, when the requirement would reach 4% of total PRV. The legislation does not indicate any requirements for FSRM investments beyond FY2029.

Author Information

Andrew Tilghman Analyst in U.S. Defense Infrastructure Policy

Disclaimer

This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material.