Appropriations Supplemental for FY1999: Emergency Funding in P.L. 105-277 for Agriculture, Embassy Security, Y2K Problems, Defense, and Other Issues

During the final days of the 105th Congress, the House and Senate considered a series of emergency supplemental initiatives providing funds for American farmers affected by natural disasters and low commodity prices, embassy security and counter-terrorism programs in the wake of the August embassy bombings, year 2000 (Y2K) computer requirements, the costs of maintaining U.S. troops in Bosnia, defense readiness, counter-narcotics interdiction initiatives, and domestic natural disaster related needs. Supplementals officially requested by the President totaled about $8.9 billion. Following the addition of several new congressional initiatives, some of which were endorsed by the White House, the final amount included in the omnibus supplemental appropriation measure ( P.L. 105-277 ; H.R. 4328 ) climbed to $20.76 billion. Congress initially considered the emergency farm relief aid separate from other supplemental requests, adding $4.26 billion to the regular FY1999 Agriculture Appropriations bill ( H.R. 4101 ). President Clinton vetoed H.R. 4101 , however, on October 7 saying he regarded the amount of emergency agriculture spending as inadequate. Congress considered the vetoed agriculture funding measure plus all remaining supplemental spending packages as part of the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999 ( H.R. 4328 ), that includes eight regular appropriation bills and other legislative initiatives. Congress cleared the measure and the President signed H.R. 4328 on October 21. All supplementals, with the exception of the $1 billion defense readiness request, were designated by the President as "emergency" spending, which under the 1985 Balanced Budget and Emergency Deficit Control Act means that if Congress agrees, the costs would not require corresponding reductions in existing expenditures. Some Members, however, challenged the "emergency" status, arguing that the entire amount should be offset by the cancellation of previously enacted funds. As passed, all but about $100 million of the $20.76 billion supplemental is designated as an "emergency." Congress included one offset in the bill a $67 million rescission of DOD fuel costs. As signed into law, the omnibus spending measure included $5.9 billion for agriculture disaster relief; $2.44 billion for antiterrorism and embassy security; $3.35 billion for Y2K conversion costs; $1.44 billion for domestic natural disasters; $943 million for counter-drug and interdiction activities; $6.59 billion for military readiness, troops in Bosnia, and other national defense needs; and $103 million for other emergencies.

Order Code RL30056 CRS Report for Congress Received through the CRS Web Appropriations Supplemental for FY1999: Emergency Funding in P.L. 105-277 for Agriculture, Embassy Security, Y2K Problems, Defense, and Other Issues February 25, 1999 (name redacted), Coordinator Foreign Affairs, Defense, and Trade Division Congressional Research Service ˜ The Library of Congress ABSTRACT During the final days of the 105th Congress, the House and Senate considered a series of emergency supplemental initiatives providing funds for American farmers affected by natural disasters and low commodity prices, embassy security and counter-terrorism programs in the wake of the August embassy bombings, year 2000 (Y2K) computer requirements, the costs of maintaining U.S. troops in Bosnia, defense readiness, counter-narcotics interdiction initiatives, and domestic natural disaster related needs. Supplementals officially requested by the President totaled about $8.9 billion. Following the addition of several new congressional initiatives, some of which were endorsed by the White House, the final amount included in the omnibus supplemental appropriation measure (P.L. 105-277; H.R. 4328) climbed to $20.76 billion. Appropriations Supplemental for FY1999: Emergency Funding in P.L. 105-277 for Agriculture, Embassy Security, Y2K Problems, Defense, and Other Issues Summary During the final days of the 105th Congress, the House and Senate considered a series of emergency supplemental initiatives providing funds for American farmers affected by natural disasters and low commodity prices, embassy security and counterterrorism programs in the wake of the August embassy bombings, year 2000 (Y2K) computer requirements, the costs of maintaining U.S. troops in Bosnia, defense readiness, counter-narcotics interdiction initiatives, and domestic natural disaster related needs. Supplementals officially requested by the President totaled about $8.9 billion. Following the addition of several new congressional initiatives, some of which were endorsed by the White House, the final amount included in the omnibus supplemental appropriation measure (P.L. 105-277; H.R. 4328) climbed to $20.76 billion. Congress initially considered the emergency farm relief aid separate from other supplemental requests, adding $4.26 billion to the regular FY1999 Agriculture Appropriations bill (H.R. 4101). President Clinton vetoed H.R. 4101, however, on October 7 saying he regarded the amount of emergency agriculture spending as inadequate. Congress considered the vetoed agriculture funding measure plus all remaining supplemental spending packages as part of the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999 (H.R. 4328), that includes eight regular appropriation bills and other legislative initiatives. Congress cleared the measure and the President signed H.R. 4328 on October 21. All supplementals, with the exception of the $1 billion defense readiness request, were designated by the President as “emergency” spending, which under the 1985 Balanced Budget and Emergency Deficit Control Act means that if Congress agrees, the costs would not require corresponding reductions in existing expenditures. Some Members, however, challenged the “emergency” status, arguing that the entire amount should be offset by the cancellation of previously enacted funds. As passed, all but about $100 million of the $20.76 billion supplemental is designated as an “emergency.” Congress included one offset in the bill — a $67 million rescission of DOD fuel costs. As signed into law, the omnibus spending measure included $5.9 billion for agriculture disaster relief; $2.44 billion for antiterrorism and embassy security; $3.35 billion for Y2K conversion costs; $1.44 billion for domestic natural disasters; $943 million for counter-drug and interdiction activities; $6.59 billion for military readiness, troops in Bosnia, and other national defense needs; and $103 million for other emergencies. Key CRS Policy Staff Issue Name Tel. Agriculture Ralph Chite 7-.... Defense/Bosnia Steve Daggett 7-.... Embassy Security Susan Epstein 7-.... Y2K Richard Nunno 7-.... Counter-narcotics Raphael Perl 7-.... Natural disasters (name redacted) 7-.... Contents Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Major Components of the Supplementals and Congressional Initiatives . . . 2 Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Embassy Security and Counter-Terrorism . . . . . . . . . . . . . . . . . . . . . . 3 Year 2000 Computer Conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 U.S. Troops in Bosnia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Defense Readiness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Defense Infrastructure Repair in South Korea and Other Storm Damaged Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Other National Defense Supplementals . . . . . . . . . . . . . . . . . . . . . . . . 5 Domestic Natural Disaster Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Counter-Drug and Interdiction Funding . . . . . . . . . . . . . . . . . . . . . . . 6 Other Foreign Aid Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 “Emergency” Designation and the Debate Over Offsets . . . . . . . . . . . . . . . 6 105th Congress Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 List of Tables Table 1. Emergency Supplementals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Appropriations Supplemental for FY1999: Emergency Funding in P.L. 105-277 for Agriculture, Embassy Security, Y2K Problems, Defense, and Other Issues Recent Developments In the final days of the 105th Congress, lawmakers considered several emergency supplemental appropriations proposals for American farmers affected by natural disasters and low commodity prices, embassy security and counter-terrorism programs, year 2000 (Y2K) computer requirements, the costs of maintaining U.S. troops in Bosnia, additional funds for defense readiness, counter-narcotics interdiction activities, and several natural disaster requirements. Congress approved and the President signed on October 21 the Omnibus Consolidated and Emergency Supplemental Appropriations Act (P.L. 105-277; H.R. 4328), that included $20.76 billion in supplemental spending. The legislation provided most of the approximately $8.9 billion officially requested by the President, plus about another $11.8 billion of congressional initiatives, including $200 million for U.S. Capitol security and visitor center, $1.4 billion for domestic natural disasters, $943 million for counter-drug and interdiction programs, $1 billion for ballistic missile defense, and about $3.5 billion for additional national defense priorities. Some of the items added by Congress also had strong White House support. The final omnibus measure also included $5.89 billion for emergency agriculture spending, an increase from the $4.26 billion package vetoed by President Clinton on October 7, saying it was inadequate. Background Before Congress adjourned, it considered a series of emergency and nonemergency supplemental appropriation proposals totaling $20.76 billion for agriculture programs, counter-terrorism and diplomatic security at U.S. facilities around the world, government-wide Y2K requirements, U.S. forces in Bosnia, defense readiness, counter-narcotics interdiction activities, and several domestic natural disaster requirements. Of the total, the President officially requested about $8.9 billion in supplemental spending, with the remainder added through congressional initiatives. Nevertheless, in most cases congressional leaders worked closely with executive officials in shaping the supplemental proposals, and as such, there was general support in Congress for the broad outlines of Administration recommendations and congressional additions. The largest disagreement occurred over the size of emergency agriculture aid. President Clinton vetoed on October 7, H.R. 4101, the FY1999 Agriculture Appropriations, because the bill contained what he and many Senate Democrats said was an inadequate amount ($4.26 billion) to meet CRS-2 current farm relief needs. A second area of contention was over the issue of whether these appropriations needed to be offset with reductions in spending on existing programs, and if so, which activities to cut. The President proposed that all but the defense readiness supplementals be designated as emergencies, thereby not requiring cuts in existing funds to pay for the added appropriations. As enacted, H.R. 4328 designated all but $100 million of the $20.76 billion supplemental as an emergency and included $67 million in offsets. Major Components of the Supplementals and Congressional Initiatives The President submitted four separate emergency supplemental requests, three of which arrived in September. The other — FY1999 funding to cover the incremental cost of deploying U.S. troops in Bosnia — was received by Congress in March 1998 as part of an earlier emergency spending proposal. Congress, however, did not act on the FY1999 Bosnia funding issue at that time. A fifth initiative, although not designated as an “emergency” supplemental, was transmitted to Congress on October 5 by OMB proposing $1 billion for defense readiness. Other supplemental initiatives arose during the final days of the 105th Congress and were included in the omnibus appropriation measure, H.R. 4328. Major emergency and non-emergency supplementals added to H.R. 4328 included the following. Agriculture. Several regions of the country, had been experiencing low farm commodity prices (primarily for wheat, corn, soybeans, and cotton) and/or natural disasters in 1998 (particularly in the Northern Plains and the South). This had the effect of significantly reducing farm income. On October 6, 1998, the Senate cleared for the White House the conference agreement on the FY1999 agriculture appropriations bill (H.R. 4101) containing separate titles that would provide $4.26 billion in direct payments to farmers to mitigate the effects of low crop prices and natural disasters. Conferees included language which declared a budget emergency for this expenditure, which meant that if the full House and Senate and the Administration concurred with the emergency designation, no budgetary offsets would be required for the new spending. President Clinton, however, vetoed H.R. 4101 on October 7, stating that the relief for farmers was inadequate. Following further congressional-Administration negotiations, a $5.89 billion supplemental agriculture package was added to the omnibus appropriations bill. The compromise, however, did not include a provision lifting the cap on loan rates for certain commodities. The amount provided in the Agriculture Appropriations conference agreement was based on a proposal announced by House Republican leadership on September 17 and included: $1.5 billion in disaster payments to farmers who have incurred significant crop losses in 1998 due to natural disasters; an additional $675 million in direct payments to producers who have experienced multiple years of disasters, particularly those in the Northern Plains and upper Midwest; a $1.65 billion increase in FY1999 market transition payments, which translates into a 29% increase in these payments for each participating farmer of wheat, feed grains, cotton and rice; and $175 million in cost-share assistance for livestock growers who lost to a natural disaster a significant amount of feed grown on the farm. CRS-3 A provision not included in the conference agreement, but strongly supported by the Administration and Senate Democratic leadership, was a temporary increase in the loan rate (price guarantees) for certain farm commodities. In July, the Senate rejected an amendment to S. 2159 that would have removed the current cap on the loan rate for wheat, feed grains, cotton, and rice, for the 1998 crop year. Another attempt to remove the cap on loan rates was defeated on September 15, when the Senate tabled a similar amendment to the Interior appropriations bill (S. 2237). In September, the Administration threatened a veto of the agriculture appropriations bill if it contained a farm economic assistance package that did not include a provision to remove the cap on the loan rates. The estimated cost of uncapping the loan rates for a year is approximately $5 billion. The Administration proposal also included more than $2 billion in disaster payments, bringing the total cost of its recommendation to more than $7 billion. The President and congressional Democrats contended that the $4.26 billion in the conference agreement on H.R. 4101 was not sufficient to address the financial problems of farmers. Republicans maintained that the Democratic package would spend too much and would fundamentally undermine the policy changes made by the omnibus 1996 farm law. . For more background on the agriculture issues, see CRS Report 98-201, Appropriations for FY1999: U.S. Department of Agriculture and Related Agencies, by Ralph Chite CRS Report 98-682, Farm Disaster Assistance: USDA Programs and Legislative Issues, by Ralph Chite ; CRS Report 98-743, U.S. Farm Income: Recent National and Regional Changes and the Federal Response, by (name redacted); and CRS Report 98-744, Agricultural Marketing Assistance Loans and Loan Deficiency Payments, by (name redacted). Embassy Security and Counter-Terrorism. On September 22, 1998, in response to the terrorist bombings of the U.S. embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania, the White House submitted a $1.8 billion emergency supplemental appropriation request for embassy security and antiterrorism programs. Of the total, $1.4 billion would fund State Department improvements of perimeter security at U.S. facilities, hire more diplomatic security agents, establish a new security review panel (which would require authorization from Congress), and rebuild the two bombed embassies in Africa. Although the recent terrorist attacks prompted the supplemental proposal, concern over embassy vulnerability dates back many years, and led in 1985 to a series of recommendations issued by the Advisory Panel on Overseas Security. The so-called “Inman report” identified 126 facilities with inadequate security, but by September 30, 1998, only 49 facilities had been built or enhanced to meet the security standards recommended by the Panel. In addition to embassy security, the supplemental proposed $400 million, among other things: 1) to reimburse the Defense Department for its response to the embassy bombings and other security-related efforts ($200 million); 2) to improve Secret Service protection activities and perform law enforcement training ($90 million); 3) to augment the State Department’s $20 million annual worldwide anti-terrorist program ($20 million); 4) to provide additional economic aid to Kenya and Tanzania ($50 million) that would be used to compensate bombing victim families and rebuild some structures that surrounded the destroyed embassies; and 5) to increase the FBI’s capacity to respond to terrorist acts ($21.7 million). CRS-4 As enacted, H.R. 4328 included the $1.8 billion embassy security request, plus over $600 million for other antiterrorism initiatives attached by Congress. Added to the original proposal was $206 million to enhance security at the Capitol and to construct a new visitor center, $100 million for the Federal Aviation Administration to install more explosive detection devices at airports, and about $350 million for DOD anti-terrorism activities. For more details, see CRS Report 98-771F, Embassy Security: Background, Funding, and FY1998 Supplemental Request, by Susan Epstein. Year 2000 Computer Conversion. For over two years, Congress has helped to focus national attention on the year 2000 computer problem, the inability of many computer systems to process dates correctly beyond January 1, 2000. The problem arises because most computer systems store dates using only the last two digits for the year field (e.g., 98 for 1998). With this format the year 2000 is indistinguishable from 1900. The year data-field in computer programs can perform various functions such as calculating age, sorting information by date, and comparing dates. When years beyond 1999 are entered in the two-digit format, those functions will often fail to operate properly. Federal agencies maintain many computer systems that manage large databases, conduct electronic monetary transactions, and control numerous interactions with other computer systems. These agencies face a major challenge to convert their software and hardware to handle dates beyond the year 2000. OMB’s cost estimate for federal agency year 2000 conversion increased steadily and is currently $5.4 billion. OMB has targeted March 31, 1999, as the deadline for federal agencies to have completed the renovation, validation, and implementation phases of all year 2000 conversions. Agencies of greatest concern are the Departments of Defense, Education, Energy, Health and Human Services, Transportation (in particular the Federal Aviation Administration), State, and the Agency for International Development. On September 2, 1998, President Clinton asked Congress for a $3.25 billion emergency supplemental to address government-wide Y2K conversion activities. Such funds would be transferred, as necessary, by OMB to all affected federal agencies and departments. The Senate, in the regular FY1999 Treasury and General Government Appropriation bill (H.R. 4104), included a similar funding provision to address the Y2K problem. House/Senate conferees, however, deleted the Y2K funds from H.R. 4104, expressing their expectations that the issue would be resolved as part of a supplemental appropriation. The Omnibus Appropriations Act (P.L. 105-277) included $3.35 billion for Y2K conversion, slightly more than the request. Of the total, $1.1 billion was designated for the Defense Department. For more information on the Y2K issue, see CRS Issue Brief 97036, Year-2000 Computer Problem: Activity in the 105th Congress, by Richard Nunno. U.S. Troops in Bosnia. On March 1, 1998, the Administration submitted an amendment to its FY1999 defense budget request asking Congress to approve emergency funding of $1.9 billion for costs of operations in Bosnia. The money would mainly pay for increased personnel and operating expenses associated with ongoing peacekeeping mission in Bosnia. The Senate-passed version of the regular FY1999 defense appropriations bill (H.R. 4103) included the requested funding, but CRS-5 the House-passed version of the bill did not. The conference agreement on the defense bill did not include the money, explicitly leaving it for consideration in a supplemental appropriations measure. As enacted, the Omnibus Appropriations Act included the full $1.9 billion proposal. For more information, see CRS Report 98205, Appropriations for FY1999: Defense, by (name redacted), CRS Issue Brie f 93056, Bosnia: U.S. Military Operations, by (name redacted),CRS Issue Brief 94040, Peacekeeping: Issues of U.S. Military Involvement, by Nina Serafino, and CRS Report 98-823, Military Contingency Funding for Bosnia, Southwest Asia, and Other Operations: Questions and Answers, by Nina Serafino. Defense Readiness. Senior appropriations committee members had been considering for some time whether to add emergency funding for military readiness either to the regular FY1999 defense appropriations bill or to a separate supplemental measure. The funding was intended mainly to bolster military recruitment, purchases of spare parts, maintenance of equipment and real property, and training. No emergency funding for this purpose was added to the regular defense bill (H.R. 3616), and was widely expected that appropriators would, therefore, propose some emergency funding for military readiness in a supplemental measure. On October 5, OMB sent letters to the Chairmen of the Appropriations Committees outlining a $1 billion defense readiness package that would include funds for additional spare parts ($239 million), personnel recruiting enhancements ($113 million), Marine Corps and Army operating force support ($348 million), Navy and Air Force depot maintenance ($251 million), and other items ($49 million). The entire amount would have been offset by funds becoming available due to lower-thanexpected fuel costs ($180 million) and inflation ($530 million), and by the rescission of unidentified “lower priority” projects ($290 million). Congress raised the Administration proposal by about $300 million in the Omnibus Appropriations Act, designated all but $118 million as an emergency, and included a $67 million rescission related to lower fuel prices. For more information, see CRS Report 98-205, Appropriations for FY1999: Defense, by (name redacted). Defense Infrastructure Repair in South Korea and Other Storm Damaged Facilities. The President requested $253.8 million to restore Defense Department infrastructure in South Korea that was severely damaged during monsoons that struck the Korean Peninsula in early August. The funds were intended to cover repairs in barriers and fortifications along the Demilitarized Zone (DMZ). In the omnibus spending measure, Congress included the full $254 million for damaged facilities in South Korea, plus added $115 million for other DOD infrastructure damaged by recent hurricanes in the United States. Other National Defense Supplementals. Included in the Omnibus Appropriations Act were several other emergency supplementals for national defense initiated by Congress: ! $525 for the disposition of Russian fissile materials, managed by the Department of Energy. ! $1 billion for ballistic missile defense programs. CRS-6 ! $1.5 billion for classified intelligence programs.1 Domestic Natural Disaster Relief. In addition to supplemental funding provided for damaged DOD facilities noted above, H.R. 4328 included about $1.4 billion to address the impact of Hurricane Georges, most of which ($906 million) was provided to the Federal Emergency Management Agency. The Omnibus bill also included $250 million for Community Development Block Grants, $101 million for the Small Business Administration, and $30 million for the American Red Cross. Counter-Drug and Interdiction Funding. Another congressional initiative enacted as an emergency supplemental in H.R. 4328 was a series of appropriations for counter-drug and interdiction activities. Largest recipients of the $943 million package included the State Department’s international narcotics control program ($233 million), primarily to bolster activities in the drug-producing countries of Peru, Bolivia, and Colombia; $344 million for the Coast Guard; and $276 million for the U.S. Customs Service, including funds for the procurement and conversion of several P-3 and Citation aircraft. For more information, see CRS Issue Brief 88-093, Drug Control: International Policy and Options, by Raphael Perl. Other Foreign Aid Initiatives. Also included as an emergency supplemental appropriation were funds for two foreign assistance activities. P.L. 105-277 added $46 million in aid to Russia and other former states to the $801 million funded elsewhere in the bill as part of the regular Foreign Operations Appropriations for FY1999. The $847 million available for assistance to the former Soviet Union fell short of the $925 million request for FY1999, but was significantly higher than the House ($590 million) and Senate ($740 million) approved earlier in September in votes on the regular Foreign Operations measure. The supplemental further added $50 million in emergency funds for USAID child survival programs, an activity that has become one of the highest congressional foreign aid priorities in recent years. Combined with the $650 million appropriated in the regular Foreign Operations Appropriations, Congress approved nearly $100 million more for child survival and infectious disease programs than the Administration proposed for FY1999. “Emergency” Designation and the Debate Over Offsets The White House designated all but the defense readiness supplementals as “emergency” requirements. The emergency designation allows Congress to approve the additional funds without offsetting the amounts with rescissions in enacted discretionary appropriations or finding cuts in mandatory spending programs. If Congress agrees with the President to define the supplementals as an “emergency” and not offset the amounts, discretionary spending would rise above the budget caps 1 Subsequently, in February 1999, OMB said it wants to use $320 million of the missile defense funds and $562 million of the intelligence money to offset the costs of a new $900 million FY1999 supplemental to help implement the Wye Memorandum and provide additional assistance to Israel, Jordan, and the Palestinians. OMB says the President would request that Congress restore these DOD funds at a later date — most likely for FY2001. Some Members oppose the use of the missile and intelligence funds for supplemental Middle East aid, and are recommending offsets from other funding sources. CRS-7 set in 1998 by Congress and reduce the size of the budget surplus for FY1999. Over the past five years, Congress has usually enacted budget authority offsets for supplementals. The question over whether to include corresponding reductions when approving additional spending became highly contentious earlier in 1998 during debate over another supplemental appropriations package (P.L. 105-174; H.R. 3579). As enacted, Congress provided $2.6 billion to offset natural disaster supplemental funding, but did not offset $2.86 billion in additional defense spending. Lawmakers supporting the emergency designation believed that with the enactment of each new rescission package to offset supplementals the past few years, most of the viable options for reductions had been exhausted; that what choices remained for further cuts had narrowed to a very difficult set of alternatives. Moreover, many said that defense spending reductions in recent years, combined with the practice of paying for overseas missions by raiding other DOD accounts, had stretched military readiness capabilities to the limit. Protecting defense spending by finding offsets exclusively among domestic programs, however, presents the problem of breaking the so-called “firewalls” between defense and domestic accounts. In the past, defense supplementals would be offset by cuts in the defense budget, while additions for domestic programs would be paid for by reducing existing domestic appropriations. Members critical of the emergency designation, argued that Congress and the President should adhere to the discretionary caps established for the next five years in the Balanced Budget Act of 1997 and include offsets for the entire supplemental package. Exceeding the caps, they believed, would set a dangerous precedent for future spending requirements. Some Members challenged the use of the “emergency” designation for parts of the supplementals. As one example, a group of House Republicans proposed offsetting items that represented “true” emergencies with changes in FHA and Ginnie Mae mortgage programs and Medicaid administrative reforms that would generate more revenues. Under their plan, other, “non-emergency” elements would be paid for by an across-the-board cut in non-defense discretionary funds on March 1, 1999, if the Administration had not yet found other spending cuts. (Livingston Optimistic as Funding Deadline Approaches. National Journal’s Congress Daily PM, October 5, 1998.) Even though the President’s official supplemental requests did not include offsets, reportedly on October 12 Administration negotiators identified several possible offsets, totaling about $4 billion, that might be considered if Congress insisted on covering the costs of some parts of the supplementals. (Administration Delivers Offsets for Requested Spending. National Journal’s Congress Daily PM, October 13, 1998.) Reversing recent practice, Congress chose to designate all but about $100 million of the $20.76 billion supplemental as an “emergency.” The enacted bill included one offset proposed by the President for military readiness — a $67 million rescission of DOD fuel costs. CRS-8 105th Congress Legislation P.L. 105-277, H.R. 4328 Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999. As reported on October 19 by the House Appropriations Committee, includes $20.76 billion for emergency supplementals. Report filed October 19 (H.Rept. 105-825). Passed the House October 20 (333-95); passed the Senate October 21 (65-29); signed by the President October 21, 1998. H.R. 4101 (Skeen) Agriculture, Rural Development, Food and Drug Administration, and Related Agencies programs for the fiscal year ending September 30, 1999. Conferees agreed to include $4.26 billion in emergency supplemental farm relief assistance on September 28 (H.Rept. 105-763). House passed conference report (333-53) October 2; Senate passed conference report (55-43) October 6. President Clinton vetoed H.R. 4101 on October 7. H.R. 4104 (Kolbe) Treasury and General Government for Appropriations FY1999. Senate-passed version included $3.25 billion in emergency funding to address the year 2000 computer crisis. Conferees deleted the Senate provision in the expectation that the Y2K issue would be resolved as part of a supplemental appropriation. H.R. 4104 passed the House July 16, 1998; passed the Senate, in lieu of S. 2312, on September 3; conference report issued on October 1 (H.Rept. 105-760). CRS-9 Table 1. Emergency Supplementals (amounts in billions of dollars; budget authority) Date of Request Amount of Request Enacted P.L. 105277 Disaster payments to farmers for 1998 losses Disaster payments to farmers for multi-year losses Livestock feed disaster assistance Market loss assistance payments Cotton producers indemnity payments Economic losses—Alaska salmon Food for Progress Farm Service Agency—salaries & loan subsidies Dairy production Forestry Incentives Program Crop insurance—mandatory purchase Other agriculture 9/22/98 9/22/98 9/22/98 9/22/98 ———9/22/98 ———9/22/98 $0.610 $0.935 $0.085 ————$0.071 ———$0.060 $1.500 $0.875 $0.200 $3.057 $0.005 $0.050 $0.025 $0.071 $0.003 $0.010 $0.066 $0.031 TOTAL, AGRICULTURE DISASTER RELIEF —- $1.761a $5.894 9/22/98 9/22/98 9/22/98 9/22/98 9/22/98 9/22/98 9/22/98 ———- $1.398 $0.020 $0.050 $0.200 $0.090 $0.022 $0.006 ———- $1.424 $0.020 $0.050 $0.529 $0.081 $0.022 $0.006 $0.100 $0.207 $0.004 —- $1.786 $2.441 9/2/98 $3.250 $3.350 Federal Emergency Management Agency Community Development Block Grants Small Business Administration Army Corps of Engineers American Red Cross Other natural disaster relief ——————- ——————- $0.906 $0.250 $0.101 $0.102 $0.030 $0.054 TOTAL, NATURAL DISASTERS —- —- $1.443 ——9/22/98 ——$0.007 $0.050 $0.046 $0.007 Supplemental Agriculture Disaster Relief: Antiterrorism/Embassy Security: State Dept security State Dept terrorism Kenya/Tanzania economic aid DOD counter-terrorism/security enhancements Secret Service FBI antiterrorism National Park Service Federal Aviation Admin Capitol Security/Visitor Center Federal Law Enforcement Training Center TOTAL, ANTITERRORISM/EMBASSY SECURITY Y2K CONVERSION Natural Disasters: Other Emergencies: International Child Survival aid Russia & other former Soviet aid DOL training-migrant farm workers CRS-10 Date of Request Amount of Request Enacted P.L. 105277 —- $0.007 $0.103 USDA-Counter-drug R&D Drug Enforcement Administration INS-surveillance systems State Dept-international narcotics control Defense Department Coast Guard Treasury Dept-money laundering intelligence Customs Service National Drug Control Policy Office Special Forfeiture Fund ——————————- ——————————- $0.023 $0.010 $0.010 $0.233 $0.042 $0.344 $0.002 $0.276 $0.001 $0.002 TOTAL, COUNTER-DRUG & INTERDICTION —- —- $0.943 10/5/98b 3/98 9/22/98 ————10/5/98b 10/5/98b $1.000b $1.858 $0.254 ————-$0.180b -$0.820b $1.301 $1.858 $0.469 $1.000 $0.525 $1.497 $0.002 -$0.067 —- TOTAL, NATIONAL DEFENSEc —- $2.112c $6.585c TOTAL, SUPPLEMENTAL APPROPRIATION —- $8.916 $20.759 Supplemental TOTAL, OTHER EMERGENCIES Counter-Drug & Interdiction: National Defense: Military readiness Troops in Bosnia Defense facilities storm damage Ballistic Missile Defense Russian fissile materials disposition (DOE) Intelligence (classified) Defense Health Program Fisher Houses Fuel cost rescission (offset) Other offsets for readiness a The President’s request of $1.761 billion in budget authority would have supported a $2.3 billion program. Senate Democratic leadership announced a package ($6.8 billion in new spending to support a program level of $7.3 billion) based on the White House request. Although the President supported the Senate plan to temporarily raise support prices, his request did not include the $5 billion cost. House Republican leadership announced an agreement on September 17 that would have provided $3.9 billion in farm financial assistance, which would be made primarily as direct payments to farmers. b Received by Congress in the form of a letter from OMB to House and Senate Appropriations Committees. The Military Readiness request was not designated as an “emergency” supplemental; offsets were identified in the letter. c Additional defense funds were also requested and appropriated under other emergency supplemental initiatives noted above: Antiterrorism and embassy security, Y2K conversion, and Counter-drugs and interdiction. DOD funding for these activities totals $1.671 billion. 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