Department of Defense Community Support Programs

July 14, 2023 R47629

Department of Defense Community Support
July 14, 2023
Programs
Andrew Tilghman
For decades the Department of Defense has provided financial support for local
Analyst in U.S. Defense
communities near military installations that seek help adjusting to the economic impact
Infrastructure Policy
of a DOD installation closing, downsizing, or changing its mission. In 1981, Congress

codified these programs in a law that also gave DOD authority to provide certain
Adam G. Levin
assistance to communities near military installations where military missions are
Analyst in Economic
expanding. For example, to support an expansion of the local military population,
Development Policy
communities may require new or expanded facilities such as schools or roads; civilian

communities may need to improve their utility infrastructure to ensure reliable and

resilient support for military readiness. These DOD activities – and their statutory
authorities and budgets – have increased in recent decades, providing extensive support to communities impacted
by Base Realignment and Closure commission decisions issued between 1988 and 2005. Today, DOD carries out
several programs that provide DOD funding to support places where military installations and nearby civilian
communities become interdependent and may develop converging interests in issues such as economic
development, quality of life, and/or infrastructure support. These programs allow DOD to support surrounding
communities for a variety of reasons, such as furthering its military missions or improving the quality of life for
military servicemembers and their families.
DOD’s Office of Local Defense Community Cooperation (OLDCC) oversees and executes many of these
programs, providing support to local communities that are dealing with the evolving needs of a nearby installation
or changes in the DOD’s presence. Congress has given DOD statutory authority (codified at 10 U.S.C. §2391) to
make grants to states and communities, and DOD has given OLDCC the responsibility of executing that
assistance on the Department’s behalf. In FY2021, Congress codified OLDCC into statute and further defined its
mission in 10 U.S.C. §198.
OLDCC’s primary duties include:
• helping state and local governments foster cooperation with military installations to enhance
quality of life for servicemembers and residents of surrounding communities;
• providing and coordinating economic development assistance to state and local governments to
mitigate potential negative impact of military closures, force reductions or mission changes, and
lessen the economic reliance on military installations of neighboring communities; and
• helping to address shared concerns about local infrastructure.

Congress may have an interest in policy considerations related to OLDCC, including:
• assuring that OLDCC’s resources align with its responsibilities;
• determining whether OLDCC’s authorities and funding should provide direct support for private-
sector housing development in the vicinity of military installations; and
• assessing how OLDCC’s added authorities may affect the planning, appropriations, and oversight
of DOD military construction, which includes family housing construction.

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Background
The Secretary of Defense is authorized under 10 U.S.C. §2391 to offer grants and support to help
military-adjacent communities address various effects of certain DOD actions. The DOD’s Office
of Local Defense Community Cooperation (OLDCC) administers the grants.
10 U.S.C. §2391 Authorities
Section 2391 of Title 10, U.S. Code authorizes the Secretary of Defense to make grants to state and local
governments to carry out community and economic diversification programs fol owing:
•
the proposed or actual establishment, realignment, or closure of a military installation;
•
the cancellation or termination of a DOD contract or the failure to proceed with an approved major weapon
system program;
•
a publicly announced planned major reduction in DOD spending that would directly and adversely affect a
community;
•
the encroachment of a civilian community on a military installation;
•
threats to military installation resilience; or
•
the closure or the significantly reduced operations of a defense facility as the result of the merger, acquisition,
or consolidation of the defense contractor operating the defense facility.1
The statute also authorizes the Secretary of Defense to make grants to state and local governments to support
the fol owing:
•
projects intended to address deficiencies in community infrastructure supportive of a military
installation;2 or
•
projects for planning or enhancing infrastructure, and implementing measures and projects that
contribute to or maintain military installation resilience (to include resilience measures and projects
involving the protection, restoration, and maintenance of natural features).3
OLDCC operates under the DOD’s Office of the Under Secretary of Defense for Acquisition and
Sustainment and falls under the purview of the Assistant Secretary of Defense for Energy,
Installations, and Environment. In FY2023, Congress provided OLDCC approximately $880
million in funding (Figure 1).4
DOD created OLDCC (initially known as the Office of Economic Adjustment, or OEA) in 1961,
when the administration of President John F. Kennedy was closing more than 100 military
installations DOD deemed “obsolete.”5 Then-Secretary of Defense Robert McNamara created
OEA in an effort to mobilize federal, state, local, and private resources to help convert the closed
installations to other productive uses that would support local economies and offset payroll and
job losses.6
OEA’s work expanded after the Cold War when President George H.W. Bush issued Executive
Order (EO) 12788, Defense Economic Adjustment Program, in January 1992. EO 12788 directed

1 10 U.S.C. §2391(b)(1).
2 10 U.S.C. §2391(d)(1).
3 10 U.S.C. §2391(b)(5)(D).
4 OLDCC, Fiscal Year 2024 Budget Estimates, March 2023, p. 2, at
https://comptroller.defense.gov/Portals/45/Documents/defbudget/fy2024/budget_justification/pdfs/01_Operation_and_
Maintenance/O_M_VOL_1_PART_1/OLDCC_OP-5.pdf.
5 History of the Office of the Secretary of Defense: The McNamara Ascendancy, 1961-1965, Historical Office, Office
of the Secretary of Defense, p. 463, at
https://history.defense.gov/Portals/70/Documents/secretaryofdefense/OSDSeries_Vol5.pdf.
6 Ibid.
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OEA to administer the newly established Defense Economic Adjustment Program (DEAP), which
helps affected states, communities, businesses, and workers respond to DOD changes. The EO
also created the Economic Adjustment Committee (EAC), which comprises 22 federal
departments and agencies at the Cabinet level that work together to coordinate federal technical
and financial assistance in support of the DEAP. The OLDCC director serves as the EAC’s
executive director.7
In FY2021, Congress codified OEA’s existence in statute and renamed it OLDCC.8
10 U.S.C. §198 Office of Local Defense Community Cooperation
Section 198 of Title 10, U.S. Code codifies OLDCC’s existence. Under this provision, the office’s duties include the
fol owing:
•
providing assistance to States, counties, municipalities, regions, and other communities to foster cooperation
with military installations to enhance the military mission, achieve facility and infrastructure savings and
reduced operating costs, address encroachment and compatible land use issues, support military families, and
increase military, civilian, and industrial readiness and resiliency; and
•
providing adjustment and diversification assistance to State and local governments under section 2391(b) of
this title;
•
coordinating the provision of such assistance with other organizations and elements of the Department;
•
providing support to the Economic Adjustment Committee or any successor to such Committee; and
•
carrying out such other activities as the Secretary considers appropriate.
In addition to codifying OLDCC in 2021, Congress expanded OLDCC’s authorities to support
potential construction activities by authorizing the Secretary of Defense to make grants to state
and local governments for “planning, enhancing infrastructure, and implementing measures and
projects (to include resilience measures and projects involving the protection, restoration, and
maintenance of natural features) that...will contribute to maintaining or improving military
installation resilience.”9
OLDCC also publishes the annual Defense Spending by State report.10 The report documents
DOD personnel and contractual spending in a given fiscal year for all 50 states and the District of
Columbia. The report may enable state and local officials to assess a region’s dependence on
defense spending and to target assistance to communities.
Funding and Staffing
Congress has appropriated more money than the White House sought in the President’s budget
requests for OLDCC’s budget for FY2019 through FY2023 (see Figure 1).
Congress provides some funding for OLDCC grants annually, as regular Operation and
Maintenance (O&M) appropriations.11 These appropriations are available for obligation for one

7 OLDCC, Federal Assistance Coordination, at https://oldcc.gov/federal-assistance-coordination.
8 See Section 905 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (P.L.
116-283). The following year, Section 902 of the National Defense Authorization Act for Fiscal Year 2022 (P.L. 117-
81 ) moved OLDCC’s codification to its current location at 10 U.S.C. §198.
9 P.L. 116-283, §905.
10 OLDCC, Defense Spending by State - Fiscal Year 2021, October 2022, at https://oldcc.gov/dsbs-fy2021.
11 For an example of OLDCC funding from O&M accounts, see p. 37E of Division C, Department of Defense
Appropriations Act, Consolidated Appropriations Act (P.L. 117-328), which provides funding for OLDCC’s Defense
Community Infrastructure Pilot program and Defense Manufacturing Community Support program. For more
(continued...)
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year and DOD typically obligates these funds during the fiscal year for which they were
appropriated. For other programs, Congress has appropriated money specifically for OLDCC
grant programs and directs the funding “to remain available until expended.”12
OLDCC’s staff has increased from 39 full-time employees in FY2021 to 56 full-time employees
in FY2023.13 According to OLDCC’s budget request justification documents submitted in March
2023, “The OLDCC is actively restructuring to respond to additions in program growth (local
infrastructure, defense manufacturing, noise mitigation, installation physical resilience).”14
Figure 1. OLDCC Funding Requests vs Enacted Budgets
From FY2019 through FY2023, Congress appropriated more money than
the President’s Budget Request sought for OLDCC.

Source: CRS graphic based on DOD Comptrol er data, OLDCC, Budget Estimates for FY2019 through FY2024.
OLDCC Grant Programs
OLDCC administers a portfolio of grant programs that have evolved over time as some programs
end and Congress authorizes and funds new ones. In FY2023, OLDCC managed over 300 active
awards, totaling more than $1.5 billion.15 Some grant programs primarily provide funding for

information about O&M accounts and the DOD budget, see CRS Report R46965, The Department of Defense (DOD)
Budget: An Orientation, by Pat Towell.
12 See, for example, appropriations for Public Schools on Military Installations, Section 8108 of the Consolidated
Appropriations Act, 2023, (P.L. 117-328).
13 For FY2021 staffing data, see Fiscal Year 2022 President’s Budget, Office of Local Defense Community
Cooperation, May 2021, p. 15, at
https://comptroller.defense.gov/Portals/45/Documents/defbudget/fy2022/budget_justification/pdfs/01_Operation_and_
Maintenance/O_M_VOL_1_PART_1/OSD_OLDCC_OP-5.pdf. For FY2023 staffing data, see Fiscal Year 2024
Budget Estimates Office of Local Defense Community Cooperation, March 2023, p. 16, at
https://comptroller.defense.gov/Portals/45/Documents/defbudget/fy2024/budget_justification/pdfs/01_Operation_and_
Maintenance/O_M_VOL_1_PART_1/OLDCC_OP-5.pdf.
14 See FY2024 Budget Estimates, Office of Local Defense Community Cooperation, March 2023, p. 18, at
https://comptroller.defense.gov/Portals/45/Documents/defbudget/fy2024/budget_justification/pdfs/01_Operation_and_
Maintenance/O_M_VOL_1_PART_1/OLDCC_OP-5.pdf.
15 Department of Defense Comptroller, OLDCC, Fiscal Year 2024 Budget Estimates, March 2023, p. 3, at
https://comptroller.defense.gov/Portals/45/Documents/defbudget/fy2024/budget_justification/pdfs/01_Operation_and_
Maintenance/O_M_VOL_1_PART_1/OLDCC_OP-5.pdf.
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studies and economic analyses that local communities can use to support future planning and
decision-making by local officials. Other grant programs provide funding for construction
projects for infrastructure improvements.
Table 1 presents data on OLDCC grant awards. Each of the programs listed in the table is
described in this section below.
Table 1. OLDCC Grant Execution, FY2018-FY2022
dollars in millions
Program
FY2018
FY2019
FY2020
FY2021
FY2022
Total
Public Schools
$0.0
$80.9
$172.7
$24.4
$131.8
$409.8
on
Military
Installations
Defense
$0.0
$0.0
$49.8
$59.8
$89.7
$199.3
Community
Infrastructure
Pilot
Diversification
$23.0
$25.4
$18.4
$17.1
$7.2
$91.1
Defense
$0.0
$0.0
$25.0
$25.0
$29.7
$79.7
Manufacturing
Guam (Pacific
$0.0
$0.0
$7.6
$34.2
$0.4
$42.2
Deterrence
Initiative)
Compatible
$4.8
$9.1
$11.3
$7.9
$2.4
$35.5
Use
Growth
$7.0
$6.9
$5.1
$4.6
$4.9
$28.5
Installation
$0.0
$0.0
$5.8
$8.6
$7.2
$21.6
Resilience
Mission
$6.6
$2.8
$3.7
$3.7
$3.7
$20.5
Realignment
Total
$41.4
$125.1
$299.4
$185.3
$277.0
$928.2
Source: Data provided to CRS by OLDCC.
Public Schools on Military Installations Program
OLDCC’s Public Schools on Military Installations (PSMI) program awards grants to local school
districts that oversee certain schools located on military property. Congress authorized the
program in the Department of Defense and Full-Year Continuing Appropriations Act, 2011 (P.L.
112-10) after public reports that spotlighted the poor conditions in some schools serving military
children.16
The grants are intended to help construct, renovate, repair, or expand elementary and secondary
public schools on military installations, or to address capacity or facility condition deficiencies at
those schools. More than 160 schools are located within the boundaries of a military installation

16 Kristin Lombardi, “Military Children’s Schools in Disrepair,” Newsweek, June 27, 2011, at
https://www.newsweek.com/military-childrens-schools-disrepair-68003.
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and are owned and operated by local education authorities and school districts.17 PSMI grant
funding is available based upon a school’s placement on the program’s priority list and the
availability of appropriations.18 From FY2011 to FY2023, Congress appropriated more than $3.25
billion to the program.19
Defense Community Infrastructure Pilot Program
Congress authorized the Defense Community Infrastructure Pilot (DCIP) program in the John S.
McCain National Defense Authorization Act (NDAA) for Fiscal Year 2019 (P.L. 115-232, Section
2861). DCIP grants support projects that are near but not on military installations. The grants aim
to address “deficiencies in community infrastructure, supportive of a military installation, in order
to enhance military value, installation resilience, and military family quality of life.”20
DCIP is a competitive grant program; OLDCC prioritizes DCIP grant applications according to
the grant’s ability to enhance a military installation’s military value, resilience and/or military
family quality of life.21 The FY2019 NDAA included a requirement that a state or local
government must match at least 30% of the award, unless the project is located in a rural area, or
if the Secretary of Defense waives the requirement for reasons related to national security.22
DCIP-eligible projects include transportation projects; community support facilities (e.g., a
school, hospital, police, fire, emergency response, or other community support facility); and
utility infrastructure projects (e.g., water, wastewater, telecommunications, electric, gas, or other
utility infrastructure, with necessary cyber safeguards). Projects must have substantial planning
and design work completed so construction is ready to begin at the time the grant is awarded.23
The James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 (P.L. 117-263,
Sections 2862 and 2864) expanded DCIP to include projects supporting strategic seaports;
projects supporting Reserve Officer Training Corps programs at certain Historically Black
Colleges and Universities; and projects located on properties subject to leases and easements with
military installations.
Defense Manufacturing Community Support
Congress authorized the Defense Manufacturing Community Support (DMCS) program in the
FY2019 NDAA. The program awards grants for long-term investments in critical skills, facilities,
research and development, and small business support, in order to strengthen national security
innovation and the defense manufacturing industrial base.

17 OLDCC, Public Schools on Military Installations, at https://oldcc.gov/our-programs/public-schools-military-
installations.
18 Ibid.
19 CRS analysis of Department of Defense Appropriations Acts FY2011-FY2023.
20 OLDCC, Defense Community Infrastructure Pilot (DCIP) Program, at https://oldcc.gov/defense-community-
infrastructure-program-dcip.
21 Ibid.
22 See Sec. 2861 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (P.L. 115-232),
which amends Title 10 of the U.S. Code, Section 2391(d)(2), at https://www.congress.gov/115/plaws/publ232/PLAW-
115publ232.pdf.
23 OLDCC, DCIP Fact Sheet, at https://www.sdmac.org/media/uploads/dcip_fact_sheet_final.pdf. Also see OLDCC,
Defense Community Infrastructure Pilot (DCIP) Program, at https://oldcc.gov/defense-community-infrastructure-
program-dcip.
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The DMCS program designates and supports consortia known as defense manufacturing
communities (DMCs). A consortium may be composed of members of academia, defense
manufacturers, workforce organizations, state and local government organizations, and nonprofit
organizations.24 Once designated a DMC, a consortium may apply for grants for activities
including:
• equipment or facility upgrades;
• workforce training, retraining, or recruitment and retention, including of women
and underrepresented minorities;
• business incubators;
• advanced research and commercialization;
• supply chain development; and
• small business assistance.25
Grantees must provide 20% of project costs.26
Installation Resilience
OLDCC’s Installation Resilience program aims to foster partnerships between military
installations and state or local governments to support installation resilience. OLDCC recently
merged the previous Installation Resilience program and the Compatible Use program into one
broader program continuum.27 The Installation Resilience program provides technical and
financial assistance to enable states and communities to address man-made or natural threats that
are likely to affect operations or readiness at local military installations.28
The Installation Resilience program may fund, among many types of projects, planning for key
infrastructure that supports both the civilian and military communities’ needs, such as roadways,
railways or pipelines.29 Other projects may include planning for stormwater and floodwater
management or taking measures to better prepare for extreme weather events, wildfires or
droughts.30 The program also supports efforts to mitigate the encroachment of incompatible land-
use and development in areas surrounding military installations that are at higher risk for noise or
potential accidents.
The program can fund studies such as an “installation resilience review,” which identifies risks
outside military installations that may inhibit the military’s ability to conduct critical missions,
such as weaknesses in critical infrastructure.31 The installation resilience reviews may also look at
housing to determine whether the local civilian housing market and existing housing stock is
meeting the needs of members of the military community who receive a housing allowance to

24 OLDCC, Defense Manufacturing Communities Support Program FY22 Notice of Funding Opportunity, May 20,
2022, p. 2, at https://www.grants.gov/web/grants/view-opportunity.html?oppId=338460.
25 Ibid., p. 6.
26 OLDCC, Defense Manufacturing Community Support Program page, at https://oldcc.gov/defense-manufacturing-
community-support-program.
27 OLDCC, Installation Resilience page, at https://oldcc.gov/our-programs/installation-resilience.
28 Ibid.
29 For a more complete list of projects that may be eligible for Installation Resilience program funding, see OLDCC,
Compatible Use and Resilience Grantee Guide, p. 3, February 2022, at
https://oldcc.gov/sites/default/files/resources/OEA0182%20MIS%20Grantee%20Guide%20508%20%28jc%29_0.pdf.
30 Ibid.
31 Ibid., p. 6.
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live off base. Grants can also support compatible use studies, which help civilian leaders
understand the current and future needs of local installations.32 These studies can provide
guidance for zoning decisions, economic development planning, or infrastructure investment. The
studies may also identify sources for additional state or federal funding or identify policy issues
that the local community may need to address on a state or federal level. Entities that are eligible
for grant funding include city, county, or state governments as well as other political entities or
tribal nations.33
In Section 313 of the National Defense Authorization Act for Fiscal Year 2022, Congress
amended Section 2391(b)(5) of Title 10 of the U.S. Code and granted the Secretary of Defense
authority to “make grants, conclude cooperative agreements, and supplement other Federal funds,
in order to assist a State or local government in planning, enhancing infrastructure, and
implementing measures and projects (to include resilience measures and projects involving the
protection, restoration, and maintenance of natural features) that, as determined by the Secretary
of Defense, will contribute to maintaining or improving military installation resilience or will
prevent or mitigate encroachment that could affect operations of the Department of Defense.” 34
In May 2023, OLDCC was conducting a legal review to determine the extent to which the
language of that statute authorizes enhancements to include construction.35
The Installation Resilience program does not currently fund construction projects but may refer
applicants to other construction grant programs such as DCIP or those overseen by other federal
agencies. Although Congress in the National Defense Authorization Act for Fiscal Year 2022
granted OLDCC the authority to potentially support construction projects, the FY2023
Installation Resilience program does not accept applications for or fund construction projects.36
Diversification and Modernization
OLDCC makes diversification and modernization grants to states, counties, municipalities, tribal
nations, territories, and other political subdivisions or special purpose units of local government,
to help lessen local dependencies on defense spending and diversify the local economy.37
The OLDCC determines eligibility for diversification and modernization grants based on whether
a “substantial portion of the economic activity or population of the geographic area ... is
dependent on defense expenditures.”38 OLDCC’s diversification and modernization grants aim to
ease such dependencies on defense expenditures. DOD considers an area “defense-dependent” if
the area can demonstrate that:
• direct military and civilian defense employment totals at least one-and-a-half
times the national level of defense employment as a percentage of the U.S. labor
force; or

32 Ibid.
33 Ibid., p. 13.
34 See Sec. 313 of P.L. 117-81, which amends Sec. 2391 of Title 10 of the U.S. Code.
35 Correspondence between CRS and OLDCC, May 2023, on file with the authors.
36 Correspondence between CRS and OLDCC, May 2023, regarding Sec. 313 of the FY2022 NDAA (P.L. 117-81), on
file with the authors.
37 OLDCC, Diversification & Modernization, https://oldcc.gov/our-programs/diversification-and-modernization.
38 10 U.S.C. §2391(b)(5)(A).
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• defense-related expenditures in the area comprise at least one-and-a-half times
the defense percentage of the gross domestic product.39
Grantees may use the awards for a range of activities, generally focused on planning for
economic diversification and implementation.40
Growth
Section 2391 of Title 10, U.S. Code authorizes the Secretary of Defense to make grants to state
and local governments when there is an establishment or expansion of a military installation.
Grantees may use the awards for planning activities to anticipate the growth of the installation.41
OLDCC may offer growth awards when:
• community impact assistance or special impact assistance is not otherwise
available; and
• the establishment or expansion involves the assignment of personnel to the
installation that is the lesser of either (1) more than 2,000 military, civilian, and
contractor DOD personnel; or (2) more military, civilian, and contractor DOD
personnel than 10% of the number of persons employed in counties or
independent municipalities within fifteen miles of the installation.42
Mission Realignment
Congress has approved five rounds of military base realignments and closures under the Base
Realignment and Closure (BRAC) process: in 1988, 1991, 1993, 1995, and 2005.43 Although
there have been no additional BRAC rounds since 2005, the process of closing an installation,
remediating any environmental conditions needing cleanup, and conveying the installation to a
nonfederal entity, can take several years or even decades. A 2022 Government Accountability
Office report found that there were 1,486 BRAC properties awaiting remediation and/or
conveyance.44 Outside of BRAC, DOD also occasionally reduces the number of personnel at an
installation or disestablishes missions.45
OLDCC mission realignment grants are available to state and local governments that are
experiencing either a proposed or actual BRAC-related or non-BRAC-related mission

39 OLDCC, Diversification & Modernization, at https://oldcc.gov/our-programs/diversification-and-modernization.
40 Ibid.
41 10 U.S.C. §2391(b)(2).
42 10 U.S.C. §2391(b)(2). Authority assigned to OLDCC by statute in 10 U.S.C. §198(c)(1)(B).
43 See CRS Report R45705, Base Closure and Realignment (BRAC): Background and Issues for Congress.
44 Government Accountability Office, Base Realignment and Closure: DOD Should Provide Congress More Complete
and Transparent Information, GAO-22-105207, September 2022, p. 7, at https://www.gao.gov/assets/gao-22-
105207.pdf.
45 Sec. 2687 of Title 10, U.S. Code provides thresholds for notification regarding the potential closure or realignment of
military installations. Specifically, the statute requires DOD to notify Congress if DOD intends to close any installation
with 300 or more direct-hire DOD civilian authorized positions. The statute also requires DOD to notify Congress
about any planned realignment of any installation with 300 or more direct-hire DOD civilian authorized positions, if the
realignment will reduce the installation by 1,000 or more civilian positions, or 50 percent or more of the total civilian
authorized positions. DOD regularly makes basing and realignment decisions that fall below these thresholds. For more
information, see Government Accountability Office, Military Bases: DOD Has Processes to Comply with Statutory
Requirements for Closing or Realigning Installations, GAO-13-645, June 27, 2013, https://www.gao.gov/products/gao-
13-645.
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realignment. Grantees may use the awards for both economic development planning and
implementation of those plans.46 For example, grants can support the operation and maintenance
of a Local Redevelopment Agency (LRA) to represent a BRAC-affected area and its workers,
businesses, and residents. OLDCC provides technical assistance to help with project
implementation.
Community Noise Mitigation
Congress authorized the Community Noise Mitigation (CNM) program in Section 8120 of the
Consolidated Appropriations Act, 2022 (P.L. 117-103) and provided $75 million to assist
communities affected by military fixed-wing aviation noise. Specifically, the CNM program
supports noise mitigation for facilities that are located near military installations and that may
include hospitals, daycare facilities, schools, facilities serving senior citizens, and private
residences. P.L. 117-103 allocated $56.3 million to active military installations and $18.6 million
to reserve component installations. As of June 2023, DOD has not made CNM award data
publicly available.
Guam (Pacific Deterrence Initiative)
Between FY2020 and FY2022, OLDCC provided $42.2 million in grants to fund various projects
in Guam, supporting the Pacific Deterrence Initiative, which is a DOD-wide effort to invest in the
Indo-Pacific Command region.47 OLDCC grant funding was provided as part of a broader $186
million package of federal support for infrastructure projects for Guam coordinated by the
Economic Adjustment Committee (EAC).48 According to OLDCC, these investments were
“directly responsible for the Governor [of Guam] signing the Programmatic Agreement [with the
DOD] for live-fire activity, allowing the overall basing effort to progress. OLDCC staff, viewed
as an honest broker, served as an important intermediary between the Navy/Marine Corps and
Territory to overcome disagreements and areas of friction as they arose.”49
OLDCC grants include funding for off-installation infrastructure projects in Guam, such as the
construction of a Guam Public Health Laboratory capable of Biosafety Level 2-3 analytical
testing and support for the Port of Guam.50 The projects funded by this program have also

46 OLDCC, Mission Realignment, at https://oldcc.gov/our-programs/mission-realignment.
47 Grant allocation data provided by OLDCC. For more information about the Pacific Defense Initiative, see CRS In
Focus IF12303, The Pacific Deterrence Initiative: A Budgetary Overview, by Luke A. Nicastro. See also, Department
of Defense, Office of the Under Secretary of Defense (Comptroller), Pacific Deterrence Initiative, Department of
Defense Budget Fiscal Year (FY) 2023, April 2022, p. 5,
https://comptroller.defense.gov/Portals/45/Documents/defbudget/FY2023/FY2023_Pacific_Deterrence_Initiative.pdf.
48 OLDCC, Projects in Guam, “$173.2M meets environmental mitigation requirement to move Marines to Guam,” at
https://oldcc.gov/project/guam-1732m-meets-environmental-mitigation-requirement-move-marines-guam.
49 See OLDCC, press release, “Indo-Pacific Build-up (Guam): $27M delivers Territory’s continued support for Indo-
Pacific build-up,” at https://oldcc.gov/project/indo-pacific-build-guam-27m-delivers-territorys-continued-support-indo-
pacific-build. For details on the Programmatic Agreement, see
https://jrm.cnic.navy.mil/Portals/77/JRM/Documents/Final%20PATT%20Executed%20by%20Signatories%2029DEC2
020.pdf?ver=zETtJCNIVwQ4vPemfFpqoA%3d%3d.
50 OLDCC, Projects on Guam, “Indo-Pacific Build-up (Guam): $27M delivers Territory’s continued support for Indo-
Pacific build-up,” at https://oldcc.gov/project/indo-pacific-build-guam-27m-delivers-territorys-continued-support-indo-
pacific-build. Also see OLDCC, Projects on Guam, “Defense Department provides $32M for Guam Public Health lab,”
at https://oldcc.gov/defense-department-provides-32m-guam-public-health-lab.
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provided support for DOD plans to relocate U.S. Marines from Okinawa, Japan to the Territory of
Guam.51
Considerations for Congress
Congress may evaluate the long-term mission of the OLDCC and its portfolio of programs in the
context of the office’s budgets and statutory authorities increases during the past decade.
Alignment of Resources with Congressional Intent
In the budget request submitted to Congress in March 2023, OLDCC budget request documents
stated: “The growing volume of activity with increasing complexities (i.e., construction,
environmental compliance, Federal Interest) is stretching OLDCC capabilities to effectively
manage program activities from cradle to crave [sic], including timely approvals of
determinations and findings, quality grants management and oversight, timely close-outs, and de-
obligations.”52
Given OLDCC’s expanded responsibilities, Members of Congress or DOD officials may have
concerns about whether OLDCC’s resources are aligned with congressional intent and sufficient
to manage its programs and oversight responsibilities effectively. Congress may consider whether
to assess the alignment of OLDCC’s responsibilities and capacity, especially if OLDCC takes on
additional tasks in the future.
During the past five years, Congress has authorized new OLDCC programs and provided
OLDCC funding in excess of the amount requested in the President’s budget request (see Figure
1). For example:
• For FY2021, congressional appropriators funded OLDCC at more than 1,000%
above the FY2021 President’s budget request.
• For FY2022, congressional appropriators funded OLDCC at more than 740%
above the FY2022 President’s budget request.
• For FY2023, congressional appropriators funded OLDCC at more than 700%
above the FY2023 President’s budget request.
During a similar time period, Congress has provided funding to increase OLDCC’s staffing
levels. OLDCC’s staff of full-time employees went from 39 in FY2020 to 56 in FY2023, an
increase of about 44%.53
Congress may consider asking DOD to provide information about the planning and programming
process related to OLDCC and the Future Years Defense Program to evaluate whether DOD plans
align with congressional intent.

51 OLDCC, Projects in Guam, “$173.2M meets environmental mitigation requirement to move Marines to Guam,” at
https://oldcc.gov/project/guam-1732m-meets-environmental-mitigation-requirement-move-marines-guam.
52 See Fiscal Year 2024 Budget Estimates Office of Local Defense Community Cooperation, March 2023, p. 8, at
https://comptroller.defense.gov/Portals/45/Documents/defbudget/fy2024/budget_justification/pdfs/01_Operation_and_
Maintenance/O_M_VOL_1_PART_1/OLDCC_OP-5.pdf.
53 Correspondence between CRS and OLDCC, April 2023, on file with the authors.
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Options for Congress
Congress could consider whether or not to direct OLDCC and the DOD to develop and provide a
report about OLDCC plans for staffing, programs, and resource allocations over the five-year
span of the Future Years Defense Program. Congress also could consider whether to seek a
review of OLDCC’s planning, resources, programs, and authorities by a Federally Funded
Research and Development Center or other third-party management consultant. Congress may
consider holding oversight hearings with DOD officials and other stakeholders (e.g., local civilian
officials, other federal agencies) to determine whether or not current resources and authorizations
are effectively meeting the collective needs of DOD and military-adjacent communities.
Local Housing Needs
In some communities near military installations, some servicemembers and others have raised
concerns about a shortage of affordable housing for those servicemembers seeking to live off
base.54 About 62% of active duty servicemembers receive a basic allowance for housing (BAH) to
obtain civilian housing outside of military installations.55 To support efforts to address housing
concerns in local military communities, OLDCC has awarded grants to local communities to
support studies of local housing markets that may help community leaders and housing
developers plan for current and future housing needs. OLDCC considers housing needs to be a
component of its Installation Resilience program.56 Existing authorities may allow for a wide
range of options for future programs and policies to foster and support local housing markets that
meet the needs of military families. Congress may consider adjusting OLDCC’s authorities and
funding to clarify its expectations with respect to OLDCC’s involvement in directly supporting
housing development near military installations.
Options for Congress
Congress may consider whether or not to provide funding and direction to OLDCC to execute
programs under existing authorities that allow the Secretary of Defense to provide investment
capital, direct loans, loan guarantees, or rental agreements to incentivize the private-sector
housing market to create housing suitable for military servicemembers.57
Congress may consider whether or not to introduce funding and direction to OLDCC to
collaborate with the U.S. Department of Housing and Urban Development (HUD) to enhance
affordable housing availability in civilian communities surrounding military installations.58

54 As an example of a local community housing issue, see Air Force Gen. (retired) Paul Selva, “When it comes to
housing, we are failing military families,” Seattle Times, May 8, 2023, at https://www.seattletimes.com/opinion/when-
it-comes-to-housing-we-are-failing-military-families/. See also Bipartisan Policy Center, “Answering FAQs on
Housing America’s Military Families,” March 24, 2023, at https://bipartisanpolicy.org/blog/faqs-housing-military-
families/. See also Lisa Smith Molinari, “Airbnb: An unwitting player in military housing crisis,” Stars and Stripes,
March 3, 2023, at https://www.stripes.com/living/the_meat_and_potatoes_of_life/2023-03-03/lisa-smith-molinari-
military-spouse-humor-column-march-3-airbnb-9273550.html.
55 Housing data provided to CRS in correspondence with the Office of the Secretary of Defense, June 2023.
56 Information about housing-related grants drawn from correspondence between CRS and OLDCC on file with the
authors.
57 See authorizations under U.S. Code Title 10, §§ 2873, 2875, 2876.
58 See, for example, S. 4563 and H.R. 7564, both titled the Building More Housing for Servicemembers Act. Congress
authorized the Secretary of Defense to engage with private-sector housing developers under 10 U.S. Code, Subtitle A,
Part IV, Chapter 169, Subchapter IV: Alterative Authority for Acquisition and Improvement of Military Housing.
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Congress may consider whether or not to adjust or clarify authorities under Section 2391(b)(5) of
Title 10 of the U.S. Code and provide funding and direction to OLDCC regarding congressional
intent for DOD’s activities related to housing outside of military installations.
In evaluating these options, Congress may consider how they align with DOD’s current
overarching plans and policies for providing housing to servicemembers through more traditional
means of on-base housing construction, Basic Allowance for Housing (BAH), and the Military
Housing Privatization Initiative (MHPI). Development of additional housing options though
OLDCC could affect the preferences and individual decisions of servicemembers and military
families, which could in turn affect occupancy rates or rental prices in other parts of the local on-
base and off-base housing markets. Before initiating policy changes in this regard, Congress may
consider directing DOD to develop an analytical framework for evaluating these local effects.
The legal structures of providing DOD grant funding to support off-base housing development
would likely be complex. Congress may direct DOD to provide a briefing or report about the
unresolved issues and implications of developing these options to address the housing needs of
servicemembers and their families.
Congress may consider whether or not to hold hearings or to seek further input from OLDCC,
other DOD entities, HUD or state and local stakeholders for ways to structure programs and
policies and to determine a possible role for OLDCC in encouraging housing development in
military-adjacent communities that may support military servicemembers and families.
Military Installation Resilience
Congress and the Defense Department’s leadership have grown increasingly focused on the issue
of military installation resilience.59 In the John S. McCain National Defense Authorization Act for
Fiscal Year 2019, Congress defined the term in statute for the first time:
MILITARY INSTALLATION RESILIENCE.—The term ‘military installation resilience’
means the capability of a military installation to avoid, prepare for, minimize the effect of,
adapt to, and recover from extreme weather events, or from anticipated or unanticipated
changes in environmental conditions, that do, or have the potential to, adversely affect the
military installation or essential transportation, logistical, or other necessary resources
outside of the military installation that are necessary in order to maintain, improve, or
rapidly reestablish installation mission assurance and mission-essential functions.
In the FY2021 and FY2022 NDAAs, Congress recognized that military installation resilience
may sometimes rely on civilian-owned infrastructure. Congress enacted laws authorizing at least
two possible alternative options for funding and executing projects outside of military
installations that support military installation resilience.60 The two options include:
Resilience Project Construction Option 1:
Congress may consider funding projects outside military installations that support military
installation resilience through 10 U.S.C. §2815(d)(3), which is part of the traditional

59 DOD press release, “Leaders Testify About DOD Installation Resiliency Efforts,” March 29, 2021, at
https://www.defense.gov/News/News-Stories/Article/Article/2552821/leaders-testify-about-dod-installation-resiliency-
efforts/.
60 See 10 U.S.C. §2391(d), as amended in Section 313 of the FY2022 NDAA and also see 10 U.S.C. §2815(d)(3),
enacted in Sec. 315 of the FY2021 NDAA. Historically, Military Construction funding has been primarily limited to
facilities on military property; both statutes cited here offer options for projects outside of military facilities if those
grants and projects provide support for an installation’s readiness or resilience.
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military construction (MILCON) program.61 This statute, enacted in 2021, authorizes the
use of MILCON funding for projects outside of military installations “if the Secretary
concerned determines that the project would preserve or enhance the resilience of ...
community infrastructure determined by the Secretary concerned to be necessary to
maintain, improve, or rapidly reestablish installation mission assurance and mission-
essential functions.”62 Projects executed under this authority can require Congress to
provide specific line-item level authorization and appropriation and the process from start
to finish (from planning to completed construction) can take up to 5 to 7 years.63
Resilience Project Construction Option 2:
Congress may consider funding projects outside military installations that support military
installations through OLDCC’s Installation Resilience program. As noted above, Section
313 of the National Defense Authorization Act for Fiscal Year 2022 amended Section
2391(b)(5) of Title 10 of the U.S. Code and granted the Secretary of Defense authority to
“make grants, conclude cooperative agreements, and supplement other Federal funds, in
order to assist a State or local government in planning, enhancing infrastructure, and
implementing measures and projects (to include resilience measures and projects involving
the protection, restoration, and maintenance of natural features) that, as determined by the
Secretary of Defense, will contribute to maintaining or improving military installation
resilience or will prevent or mitigate encroachment that could affect operations of the
Department of Defense.”64 In May 2023, the OLDCC was conducting a legal review to
determine whether the language of that statute would authorize enhancements to include
construction. Congress has not provided specific appropriations or explicit direction for
OLDCC to exercise this authority for construction projects.
Options for Congress
Congress may consider and evaluate each of these two authorities to determine which, if either, or
another approach for the planning, appropriation and oversight of funding in support of military
installation resilience is best.
When evaluating the first option noted above—funding off-base military resiliency projects
through the DOD’s traditional MILCON program under 10 U.S.C. §2815(d)(3)—Congress may
consider the prominent role of military installation commanders and the military service
leadership in planning and prioritizing projects within the DOD’s broader MILCON program.
This approach may provide legislators with more oversight options, as individual projects using
MILCON funding typically require specific line-item approval in both the annual authorization
and appropriation acts. The military services provide direct oversight of the construction projects,
which fall under the jurisdiction of the federal contracting regulations. At the same time, this
approach may result in more time-consuming processes and provide for less direct involvement
of stakeholders in the local community.
When evaluating the second option noted above—funding off-base military resiliency projects
through OLDCC under the authority in 10 U.S.C. §2391(b)(5)— Congress may consider whether
to appropriate funding for grants that OLDCC may, in turn, award to local government entities to
support specific infrastructure projects to be executed under the direction of local government
entities. Congress could consider whether to direct OLDCC to execute such grants based on
specific criteria or within certain limitations in cost or scope. Congress may consider OLDCC’s

61 See CRS Report R44710, Military Construction: Authorities and Processes, by Andrew Tilghman.
62 P.L. 116-283, §315.
63 See CRS Report R44710, Military Construction: Authorities and Processes, by Andrew Tilghman.
64 See Sec. 313 of P.L. 117-81, which amends Sec. 2391 of Title 10 of the U.S. Code.
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institutional experience collaborating with state and local governments in military communities.
On one hand, grant programs may allow for more input from local communities and potentially
provide for more rapid execution for projects. On the other hand, grants may provide less
opportunity for oversight through federal contracting regulation.65
Oversight and Coordination across DOD
If Congress continues to increase OLDCC resourcing, Congress may consider evaluating the
level of oversight over grant funding or the level of coordination in the decision-making about the
allocation of those grants.
The Government Accountability Office (GAO) in December of 2020 issued a report
recommending that the OLDCC (then known as the OEA) establish performance measures for its
community grant programs.66 DOD concurred with that recommendation and in August 2022,
informed GAO about continued work toward that goal. GAO reported in July 2023 that the
recommendation has not been fully implemented.
GAO said in its report:
With the department’s investment in these programs growing, it is important that there be
reliable ways to assess program outcomes. Without establishing performance measures for
CUP, MIR, and DCIP that are clear, quantifiable, objective, and provide for the baseline
measurement of current performance, decision makers in DOD and Congress may find it
difficult to determine whether current and future investments in these programs are
achieving their intended outcomes or delivering their expected value. Moreover, the
absence of such measures may hamper decision makers’ ability to prioritize resources
when considering these programs’ efficacy vis-à-vis other means for enhancing installation
resilience to the effects of climate change and extreme weather.67
Congress may consider whether or not to evaluate the oversight mechanisms in place to
determine the impact of OLDCC’s grant programs on military readiness.
OLDCC operates within the Office of the Secretary of Defense (OSD). If Congress continues the
trend of increasing OLDCC resourcing, Congress may consider additional oversight to ensure
OLDCC’s engagement and coordination with the individual military departments meets
congressional intent. The military services and their leadership may seek to provide input on the
planning, programming and budgeting for certain OLDCC programs, particularly for programs
that have implications for morale and readiness, such as the Public Schools on Military
Installations program, the Defense Community Infrastructure Pilot program or the Installation
Resilience program.68 Congress may consider whether or not to encourage coordination of

65 The GAO reports that: “In numerous reviews, we and agency inspectors general identified weaknesses in agencies’
internal controls for managing and overseeing grants.” And “improper payments have consistently been a government-
wide issue.” For more on the advantages and disadvantages of federal grants compared to direct funding, see General
Accountability Office, Grants Management: Observations on Challenges with Access, Use, and Oversight, May 2023,
at https://www.gao.gov/products/gao-23-106797.
66 Government Accountability Office, Climate Resilience: DOD Coordinates with Communities, but Needs to Assess
the Performance of Related Grant Programs,” GAO-21-46, December 2020, Recommendations for Executive Action,
at https://www.gao.gov/products/gao-21-46.
67 Government Accountability Office, Climate Resilience: DOD Coordinates with Communities, but Needs to Assess
the Performance of Related Grant Programs,” GAO-21-46, December 2020, Rp. 34, at
https://www.gao.gov/products/gao-21-46.
68 See CRS Report R47178, DOD Planning, Programming, Budgeting, and Execution (PPBE): Overview and Selected
Issues for Congress, by Brendan W. McGarry.
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OLDCC activities with the services’ traditional MILCON programs as managed through the
PPBE and FYDP. Congress may consider directing the OSD, OLDCC, or the military services to
submit a report to Congress or provide Congress with input on organizational structures that
could foster optimal coordination across DOD.

Author Information

Andrew Tilghman
Adam G. Levin
Analyst in U.S. Defense Infrastructure Policy
Analyst in Economic Development 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
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