For other versions of this document, see http://wikileaks.org/wiki/CRS-RL34451 ------------------------------------------------------------------------------ Order Code RL34451 FY2008 Spring Supplemental Appropriations and FY2009 Bridge Appropriations for Military Operations, International Affairs, and Other Purposes (P.L. 110-252) Updated July 15, 2008 Stephen Daggett, Susan B. Epstein, Rhoda Margesson, Curt Tarnoff, Pat Towell, and Catherine Dale Foreign Affairs, Defense, and Trade Division Shannon S. Loane Knowledge Services Group FY2008 Spring Supplemental Appropriations and FY2009 Bridge Appropriations for Military Operations, International Affairs, and Other Purposes (P.L. 110-252) Summary On June 30, 2008, President Bush signed into law a bill, H.R. 2642 (P.L. 110- 252), that makes supplemental appropriations for FY2008 and FY2009, extends unemployment payments, and expands veterans' educational benefits. The House approved the measure on June 19 and the Senate on June 26. As enacted, the bill reflects compromises with the White House on several key issues. It extends unemployment benefits for 13 weeks but not 26, allows veterans' educational benefits to be transferred to dependents, does not include an offsetting tax increase, limits other domestic spending, and delays implementation of six, rather than seven, new Medicaid rules. The amended bill also drops most Iraq-related policy provisions that had been in earlier versions. In all, the bill provides $183.5 billion in supplemental appropriations, including $2.65 billion of newly added funds to respond to Midwest floods. Extended unemployment benefits are estimated to cost a net of $10 billion over ten years and enhanced veterans educational benefits $63 billion. Earlier, the House approved an initial version of the bill on May 15, 2008. Procedurally, the House took up H.R. 2642, a bill on a different topic, and considered three amendments. By a vote of 141-149, with 132 Republicans voting "present," the House rejected an amendment providing $162.5 billion in FY2008 and FY2009 for military operations. It adopted a second amendment setting out Iraq-related policies, including a requirement that combat forces be withdrawn from Iraq within 18 months. And it approved a third amendment to expand veterans' educational benefits offset by a tax surcharge; extend unemployment compensation; delay new Medicaid regulations; and provide $21 billion in supplemental appropriations. On May 22, 2008, the Senate approved an amended version of the bill providing $194 billion in supplemental funding. The Senate-passed bill included $162.5 billion for defense and about $8 billion more than the House bill for domestic programs. The bill expanded veterans' educational benefits without an offset and limited Medicare payments to new specialty hospitals. On key roll calls, the Senate rejected by 34-63 an amendment to provide defense funding and to establish Iraq- related policies; approved by 75-22 an amendment to provide defense funding without policy restrictions; and approved by 70-26 an amendment to fund domestic, international affairs, and military construction programs. During its first session, the 110th Congress approved FY2008 emergency supplemental appropriations of $86.8 billion for the Department of Defense and $2.4 billion for international affairs. This left unresolved Administration requests for $102.5 billion for defense and $5.4 billion for international affairs. For congressional action on FY2008 supplemental funding through December 2007, see CRS Report RL34278, FY2008 Supplemental Appropriations for Global War on Terror Military Operations, International Affairs, and Other Purposes, which will not be updated further. This CRS report, RL34451, reviews congressional action on remaining FY2008 and additional FY2009 supplemental funding. Contents Most Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Earlier Congressional Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Highlights of H.R. 2642 (P.L. 110-252) as Signed by the President June 30, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 How Long FY2008 Funding Would Have Lasted . . . . . . . . . . . . . . . . . . . . . . . . . 5 Key Issues in the Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Expanded GI Bill Veterans' Education Benefits . . . . . . . . . . . . . . . . . . . . . . 6 House and Senate Differences Over Other Domestic Spending . . . . . . . . . . 7 Iraq Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 House-Passed and Senate Committee Bills . . . . . . . . . . . . . . . . . . . . . 13 Defense Funding Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 International Affairs Remaining FY2008 and Additional FY2009 Supplemental Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Congressional Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Iraq Reconstruction Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 May 15 House Action on Iraq Reconstruction . . . . . . . . . . . . . . . . . . . 26 May 22 Senate Action on Iraq Reconstruction . . . . . . . . . . . . . . . . . . 27 House and Senate Action on Iraqi Role in Reconstruction . . . . . . . . . 28 Enacted Version of FY2008/2009 Supplemental . . . . . . . . . . . . . . . . 28 Afghanistan Reconstruction Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 The FY2008 Original and Amended Emergency Supplemental Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 The FY2009 Regular and Supplemental Request . . . . . . . . . . . . . . . . 33 Congressional Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Pakistan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 The FY2008 Original and Amended Supplemental Request . . . . . . . . 37 The FY2009 Regular and Supplemental Request . . . . . . . . . . . . . . . . 37 Congressional Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Sudan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 FY2008 Supplemental Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 FY2009 Regular and Supplemental Request . . . . . . . . . . . . . . . . . . . . 38 Congressional Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Other Humanitarian Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Migration and Refugee Assistance (MRA) . . . . . . . . . . . . . . . . . . . . . 41 Emergency Refugee and Migration Assistance Fund (ERMA) . . . . . . 41 International Disaster Assistance (IDA) . . . . . . . . . . . . . . . . . . . . . . . 41 Food Security and Food Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Mérida Initiative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Domestic Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Expansion of Montgomery GI Bill Education Benefits . . . . . . . . . . . . . . . . 44 The Graham alternative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 PAYGO, Military Retention, and Transferability Issues . . . . . . . . . . . 46 Congressional Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Hurricane Katrina Repairs and Coastal Louisiana Restoration . . . . . . . . . . 47 Congressional Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 The Census and Other Domestic Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Decennial Census . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Other additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Other Senate Additions of Funding for Domestic Programs . . . . . . . . . . . . 49 Appendix A. Status of FY2008 Supplemental Funding Through December 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Status of FY2008 Supplemental Funding . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Congressional Action on FY2008 Supplemental Appropriations Through December 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Administration Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Congressional Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Remaining FY2008 and Additional FY2009 Defense Request . . . . . . . . . . 53 Appendix B. Summary Funding Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 List of Tables Table 1. Overview of House and Senate Supplemental Appropriations in H.R. 2642 by Title and by Major Category . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Table 2. Selective Comparison of House- and Senate-Passed Supplemental Appropriations, H.R. 2642 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Table 3. FY2008 and FY2009 Emergency Supplemental for State Department Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Table 4. FY2008 and FY2009 Foreign Operations Emergency Supplemental . . 19 Table 5. House and Senate Rescissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Table 6. Supplemental Appropriations for Iraq Reconstruction . . . . . . . . . . . . . 30 Table 7. Afghanistan Reconstruction Assistance, FY2008-FY2009 . . . . . . . . . 36 Table 8. Sudan Emergency Supplemental, FY2008-FY2009 . . . . . . . . . . . . . . . 40 Table A-1. Remaining FY2008 and Additional FY2009 Supplemental Funding Requested for the Department of Defense . . . . . . . . . . . . . . . . . . 54 Table B-1. Spring FY2008 and FY2009 Supplemental Appropriations: Request, House, and Senate Amounts by Account . . . . . . . . . . . . . . . . . . . 57 Table B-2. Memorandum: Un-passed House Leadership Bill Defense Funding Compared to Request and Senate-Passed Bill . . . . . . . . . . . . . . . . . . . . . . 67 FY2008 Spring Supplemental Appropriations and FY2009 Bridge Appropriations for Military Operations, International Affairs, and Other Purposes (P.L. 110-252) Most Recent Developments On June 30, 2008, President Bush signed H.R. 2642 (P.L. 110-252), a bill which makes supplemental appropriations for FY2008 and FY2009 for military operations in Iraq and Afghanistan and for other purposes. The bill also extends unemployment payments, and expands veterans' educational benefits. The House had passed the bill on June 19, and the Senate approved it June 26 by a vote of 92-6. In floor action on the bill on June 19, the House adopted two amendments to a version of the bill previously approved by the Senate. Amendment #1, agreed to by a vote of 268-155, included $162.4 billion for military operations, the same amount as in the same title of the Senate-passed bill. Amendment #2, agreed to by a vote of 416-12, reduced the defense total by $3.6 billion and incorporated all of the other key measures to be included in the final bill. Because the House agreed on June 19 to the defense total in the version of the bill previously approved by the Senate, the issue before the Senate on June 26 was concurrence in the House-passed Amendment #2. Before clearing the bill for the President, the Senate voted 77-21 to waive the Budget Act concerning the bill, thus disposing of a point of order against the bill raised by Senator Coburn, who contended that the bill improperly designated as "emergency" spending -- thus exempt from spending ceilings set by the Congressional Budget Resolution -- $210 million for the Census Bureau. As enacted, the bill would cost an estimated $202 billion in FY2008 and FY2009 and almost $60 billion more through FY2018, of which ! $183.5 billion is supplemental appropriations for defense, international affairs, disaster relief, and some other domestic programs, including $2.65 billion of newly added funds to respond to Midwest flooding earlier in the month; ! $14 billion in FY2008 and FY2009 is for extended unemployment benefits, with a net cost, following savings in future years, of $10 billion over eleven years through FY2018; CRS-2 ! $796 million in FY2008 and FY2009 and $63 billion through FY2018 is for expanded veterans educational benefits; and ! $1.2 billion in FY2008 and FY2009 is due to Medicaid rules changes. The final bill reflects compromises with the White House on several issues. On major issues the bill extends unemployment benefits for 13 weeks but not for 26 weeks; expands veterans' educational benefits as in earlier House and Senate bills and adds a provision allowing benefits to be transferred to spouses and dependents, as the White House had proposed; does not include a surcharge on high income taxpayers to offset costs of expanded educational benefits as in the earlier House- passed bill; delays six, rather than seven, new Medicaid rules; does not approve the bulk of unrequested funds for domestic programs included in the Senate-passed bill; and adds $2.65 billion in new funds, partly at the request of the President, to replenish emergency accounts expected to be used to respond to recent Midwest floods. The final bill also drops most Iraq-related policy provisions that were in the original House-passed bill, except for provisions requiring Iraq to match U.S. economic assistance, prohibiting permanent bases in Iraq, and applying mandatory fraud reporting requirements to contractors working abroad. Earlier Congressional Action In earlier action, on May 15, 2008, the House approved an initial version of the bill that provided $21 billion for military construction, international affairs, and domestic programs, but did not include $162.5 billion that the House leadership had proposed for operations in Iraq and Afghanistan. The House bill also approved extended unemployment compensation payments, expanded veterans educational benefits, and Medicaid rules changes. Procedurally, as a vehicle for considering supplemental appropriations without a committee markup, the House brought to the floor the Senate-passed version of H.R. 2642, the FY2008 military construction/veterans' affairs appropriations bill that had been incorporated into the FY2008 consolidated appropriations act.1 The House then considered three amendments as substitutes for the text of the bill. ! By a vote of 141-149 with 132 voting present, the House rejected the first amendment to provide $96.6 billion in FY2008 and $65.9 billion in FY2009 funding for military operations. ! By a vote of 227-196, the House approved a second amendment to require the withdrawal of combat forces from Iraq within 18 months; establish readiness requirements for the deployment of U.S. troops; 1 H.R. 2642 was the FY2008 military construction/veterans affairs appropriations bill in the 1st session of the 110th Congress. Both the House and the Senate passed versions of the bill. Further action on the bill became unnecessary when a conference agreement on the bill was incorporated into the FY2008 consolidated appropriations act, H.R. 2764, P.L. 110-161, that the President signed into law on December 26, 2007. CRS-3 require that any agreement on the status of U.S. forces in Iraq be authorized by Congress; mandate that Iraq match U.S. reconstruction aid dollar-for-dollar and agree to subsidize fuel costs for U.S. forces; make contractors in war zones subject to prosecution for offenses that would violate U.S. law; prohibit the establishment of permanent bases in Iraq; and prohibit interrogation techniques not authorized in the Army Field Manual. ! And, by a vote of 256-166, the House approved a third amendment providing $21 billion in FY2008 and FY2009 for military construction, domestic, and international affairs programs. The amendment also included expanded veterans educational benefits at an estimated cost of $52 billion over ten years, with an offsetting increase in taxes on those with incomes above $500,000 for an individual or $1,000,000 for a couple. And the amendment included an extension of unemployment benefits and Medicaid rules changes. A week later, on May 22, 2008, the Senate approved an amended version of H.R. 2642, providing $194 billion in supplemental appropriations for FY2008 and FY2009, and also approving extended unemployment payments, expanded veterans' educational benefits, Medicaid rules changes, and adding a limit on Medicare payments to new specialty hospitals. On key roll call votes, all of which required 60 votes for approval, the Senate ! rejected by a vote of 34-63 an amendment to the House bill to provide funding for defense programs and to establish various Iraq policy provisions; ! approved by a vote of 75-22 an amendment providing defense funding without policy restrictions; and ! approved by a vote of 70-26 an amendment providing funding for domestic programs, international affairs, and military construction. Earlier, on May 2, the White House sent Congress an amendment to its FY2009 budget formally requesting $70 billion in emergency FY2009 funding, including $66 billion for the Department of Defense and $4 billion for international affairs programs. The $66 billion request for the Defense Department constituted a "bridge fund" sufficient to allow the services to carry on both day-to-day peacetime activities and military operations overseas until the middle of 2009. Approval of a bridge fund -- which the appropriations committees had planned to provide before the White House made its formal request -- would allow Congress to avoid a debate over war funding during the fall election period, and also provide the 111th Congress time to act on a full-year war supplemental after the next President takes office. The $4 billion FY2009 emergency international affairs request included $770 million in emergency food-related assistance announced on May 1 (though FY2009 funding would not be available until October 1, 2008), $1.4 billion for aid to Iraq, $1.1 billion for aid to Afghanistan, $350 million for the Middle East, $193 million for Pakistan, $123 million for stabilization operations in Africa, $36 million for CRS-4 security for diplomats in the Middle East, Sudan, and Somalia, and $15 million for the six party agreement on North Korean nuclear programs. On May 1, the President announced a new request for $770 million in FY2009 emergency supplemental appropriations for international food aid. The Administration had requested $350 million for P.L. 480 international food assistance in its October, 2007, budget amendment to the FY2008 supplemental request. Senators Durbin and Casey had proposed adding $200 million in food aid to the supplemental. Highlights of H.R. 2642 (P.L. 110-252) as Signed by the President June 30, 2008 The enacted version of H.R. 2642 provides $96.1 billion for military operations in Iraq, Afghanistan, and elsewhere in FY2008 and $65.9 billion in FY2009; $4.2 billion for military construction programs in the United States and abroad; $10.1 billion for international affairs programs; and $10.3 billion for domestic programs, including $2.65 billion, added after the House, on May 15, and the Senate, on May 22, passed earlier versions of the bill, to respond to Midwest floods. On key issues, the final bill ! expands GI bill veterans' education benefits to provide a full four years of college education for service members who serve 36 or more months abroad, as provided in the House and Senate bills, and also permits benefits to be transferred to spouses and dependents, as the Administration requested, which increases the estimated ten-year cost from $52 billion to $62.8 billion; ! does not include a House-passed 0.5% income tax surcharge on incomes of $500,000 or more for individuals and $1,000,000 or more for couples -- the surcharge was intended to offset the cost of the GI bill provisions; ! provides 13 weeks of extended unemployment compensation in all states, but not 26 weeks in some states as in the House and Senate bills, reducing the estimated ten-year cost from $11 billion to $8.2 billion. ! adds $2.65 billion to replenish accounts expected to be used for Midwest flood relief -- the White House had reportedly requested $1.8 billion;2 2 Christian Bourge, with Humberto Sanchez contributing, "Hoyer Says War Supplemental Might Reach Floor Thursday," National Journal Congress Daily, PM, June 18, 2008. CRS-5 ! delays implementation of six of seven Administration changes in Medicaid regulations that would reduce Federal payments to the states, rather than of all seven as in the House and Senate bills; ! drops most Iraq-related policy provisions that were in the House- passed version of the bill, including a provision requiring withdrawal of combat troops within 18 months and others requiring that troops meet targets for readiness and for dwell time at home between deployments -- the bill includes measures requiring the Iraqi government to match amounts of some reconstruction assistance and prohibiting the use of funds to establish permanent bases in Iraq, and it extends mandatory fraud reporting requirements to contractors working abroad; ! provides $5.8 billion for Gulf Coast hurricane protection levees, as the Administration requested, and deletes $4.6 billion in additional flood-relief funding in the Senate bill, though the final bill also adds $73 million for housing vouchers; ! provides $4.2 billion for military construction, which is $2.2 billion above the Administration request, $1.2 billion above the Senate level, and $0.4 billion below the House May 15-passed bill; ! provides $400 million in unrequested funds for science programs rather than $1.2 billion as in the Senate bill; ! provides $150 million to bolster Food and Drug Administration safety programs, compared to $275 million in the Senate bill; and ! provides $178 million for the Bureau of Prisons and $210 million for the Bureau of the Census, as requested by the agencies, though not formally included in the Administration's May 2, 2008, supplemental request, and as included in both the House and Senate bills. How Long FY2008 Funding Would Have Lasted In advance of additional FY2008 supplemental funding, the Defense Department had available funds provided (1) in the regular FY2008 defense appropriations act (P.L. 110-116) and (2) in the FY2008 consolidated appropriations action (P.L. 110-161). Defense officials had calculated that funding for the Army appropriated in those two bills would begin to run out some time in June -- by about the middle of June for Army military personnel accounts and by the end of June for Army operation and maintenance. On May 27, however, the Defense Department requested congressional approval to transfer $9.7 billion of funds to the Army, CRS-6 sufficient, officials said, to extend operations through the end of July.3 DOD requested that Congress include in a supplemental bill authority to replenish the accounts from which the transfers of funds were to be made. Section 9103 of the final supplemental bill provides DOD authority to transfer up to $2.5 billion of FY2008 funds in the bill between accounts and Section 9203 provides authority to transfer up to $4 billion of FY2009 funds. In addition to, or instead of, transferring funds from other accounts, the Defense Department could have extended Army operations beyond June by invoking the Feed and Forage Act, which allows the Defense Department to obligate funds in advance of appropriations for transportation, housing, subsistence and other purposes. The Defense Department might also have extended operations by using other standing authorities to shift funding between the services.4 On June 26, hours before the Senate passed the amended bill, Defense Secretary Robert M. Gates said during a press conference that, until the bill was enacted, DOD would continue planning for a possible shutdown of all nonessential operations in July. Key Issues in the Bill Expanded GI Bill Veterans' Education Benefits The initial House- and the Senate-passed versions of the FY2008 supplemental appropriations bill, H.R. 2642, included a measure to provide substantially increased educational benefits for military personnel who serve abroad for thirty-six months or more (see below for a more detailed review of the main provisions). A key issue in congressional action on the bill was whether to offset the long-term costs of expanded benefits, which CBO estimated would amount to $52 billion through FY2018. In May, under pressure from "Blue Dog" Democrats, the House leadership agreed to add to the bill a 0.5% surcharge on high income taxpayers as a means of offsetting the cost of the program. The Senate, however, did not agree to the tax offset, and it was not included in the May 22 Senate-passed bill. Subsequently, as the House leadership considered how to proceed, "Blue Dog" Democrats in the House continued to warn that they would vote against the final bill if it did not offset the costs. Meanwhile, the White House warned that the President would veto the bill if it included a tax increase. In the end, the House leadership did 3 Department of Defense, "Reprogramming Action -- Prior Approval," DOD Serial Number FY 08-19 PA, "Army Operational Requirements," and Department of Defense, "Reprogramming Action -- Prior Approval," DOD Serial Number FY 08-18 PA, "Various Military Personnel Appropriations," both dated May 27, 2008. See also, Christopher J. Castelli, "DOD Seeks to Shift $9.7 Billion for War Costs," Inside Defense, May 29, 2008. 4 See CRS Report RL34275, How Long Can the Defense Department Finance FY2008 Operations in Advance of Supplemental Appropriations?, by Stephen Daggett and Pat Towell and CRS Report RL33110, The Cost of Iraq, Afghanistan, and Other Global War on Terror Operations Since 9/11, by Amy Belasco. CRS-7 not include the offset in the final version of the bill. On June 19, the House approved expanded veterans educational benefits as part of Amendment #2 with only 12 votes against it. Aside from the debate about offsetting costs, there were some objections to specific aspects of the main GI bill proposal being considered in the House and Senate. Senior officials in the Defense Department opposed key elements of the measure, and Senate Republicans, with White House support, proposed an alternative that would require longer service before personnel could qualify for full benefits. At a May 8 press conference, Secretary of Defense Robert Gates and Joint Chiefs Chairman Admiral Michael Mullen complained that the measure being proposed in the House and Senate bills would undermine retention of personnel because it would make full educational benefits available for service members who have not reenlisted for a second term. On May 6, at an event to honor military spouses, the President said that he was sending to Congress legislation that would improve benefits for military families, including a measure that would allow educational benefits to be transferred to children or spouses. On May 14, Senate Republicans brought up an alternative GI bill expansion proposal sponsored by Senator Graham as an amendment to pending collective bargaining legislation.5 That amendment was based on S. 2938, a measure to increase veterans education benefits that Senator Graham proposed on April 29 with a number of co-sponsors, including Senator McCain. The Graham bill would provide larger benefits for military personnel who serve for at least 12 years and permit benefits to be transferred to other family members. The education benefit measure included in the House and Senate supplemental bills, in contrast, was based on a bill, S. 22/H.R. 5740, sponsored by Senator Webb and Representative Mitchell, that provides maximum benefits after as little as thirty-six months of service. In the end, the enacted version of the supplemental adheres to the Webb/Mitchell bill. It provides maximum benefits to personnel with as little as 36 months of service. The final bill, however, also includes a provision allowing service members to transfer benefits to spouses and other dependents. The transfer provision adds $10.8 billion to the ten-year projected cost of the bill. House and Senate Differences Over Other Domestic Spending Apart from the fact that the House rejected funding for military operations (except for military construction funds that were grouped together with funding for domestic programs), the main differences between the initial House and Senate bills had to do with amounts for domestic spending. Both the House and the Senate bills provided $9.9 billion for international affairs programs, though the bills allocated the funds somewhat differently. Both bills also included expanded GI bill educational benefits, with $716 million required in FY2008 and FY2009, and extended unemployment benefits costing $15.6 billion in the first two years. 5 Bart Jansen, Josh Rogin and Kathleen Hunter, "GOP Slips McCain's GI Bill Alternative into Play on Senate Floor," CQ Today Online News, May 14, 2008. CRS-8 Beyond that, the House bill provided $5.8 billion in FY2009 emergency funds for Gulf Coast levee construction; $210 million for the Bureau of the Census; and $178 million for shortfalls in the federal prison system budget. Representative Obey, the chairman of the House Appropriations Committee, repeatedly noted that all of these funds were requested in some form by the Administration. The Senate-passed bill provided $8.5 billion more than the House bill for domestic programs. Of the additional funds $4.6 billion was for hurricane-related relief and reconstruction and other disaster assistance (for a total in the Senate bill of $10.4 billion), and $1 billion was provided for low-income energy assistance, $590 million for state and local law enforcement assistance, $400 million for secure local schools, $437 million for veterans' administration polytrauma facilities, $275 million for Food and Drug Administration safety programs, and $1.2 billion for a "science initiative" with funds allocated to NASA, the Department of Energy, and the National Institutes of Health. The additional funds in the Senate bill for domestic programs were a matter of considerable debate among House and Senate Democratic leaders. Not wanting to invite a presidential veto, the House leadership resisted adding funds for domestic programs. Except for veterans education benefits, unemployment compensation, and the cost of delaying new Medicaid rules, the House stayed within limits on spending that the White House insisted on. The Senate, however, approved a substantial amount of additional domestic spending as part of an amendment that passed by a vote of 70-26, with more than enough support to override a veto. When the House subsequently took up the Senate-passed version of the bill in June, the House leadership decided to negotiate with the White House in an effort to agree on a bill that would not be vetoed. The final bill included relatively little unrequested domestic funding. That version of the bill, passed by the House June 19 and by the Senate June 26, was signed by the President on June 30. Table 1 provides an overview of House, Senate, and enacted funding compared to the request. It shows funding by title within the bills and it provides a breakdown of defense, international affairs, and domestic spending. Table 2 provides a comparison of House, Senate, and requested funding for selected programs. It is intended mainly to highlight key differences between the House and the Senate. A detailed breakdown of funding by account is provided in Tables B-1 and B-2 in Appendix B at end of this report. CRS-9 Table 1. Overview of House and Senate Supplemental Appropriations in H.R. 2642 by Title and by Major Category (amounts in millions of dollars) House- Senate- Passed Passed Enacted Request May 15 May 22 June 30 Discretionary Supplemental Appropriations by Title Title I: Military Construction, Veterans, International Matters, and Other Security-Related Matters 11,997,855 14,909,096 14,231,264 15,121,244 Title II: Domestic Matters -- 498,169 4,049,600 1,048,169 Title III: Natural Disaster Relief and Recovery 5,761,000 5,761,000 10,396,751 8,483,619 Title VIII (House) General Provisions (Defense Reductions) -- -- -- -3,577,845 a Title IX: Defense Matters 166,015,369 -- 165,427,034 165,427,034 Total FY2008/FY2009 Discretionary Appropriations 183,774,224 21,168,265 194,104,649 186,502,221 Discretionary Supplemental Appropriations by Category Defenseb 168,453,900 4,641,684 169,127,993 166,156,996 International Affairs 9,423,558 9,918,108 9,918,608 10,088,608 Domestic 5,896,766 6,608,473 15,058,048 10,256,617 Mandatory Unemployment and Veterans Benefits and Medicaid Rules Delay, FY2008/FY2009 Amounts Title IV (House)/Title V (Senate): Emergency Unemployment Compensation -- 15,573,000 15,573,000 14,338,000 Title V (House)/Title IV (Senate): Veterans Educational Assistance -- 716,000 717,000 796,000 Title VII (House)/Title VI (Senate): Medicaid Provisions -- 1,600,000 1,755,000 1,195,000 Total Unemployment, Veterans Educational Benefits, Medicaid Rules Delay -- 17,889,000 18,045,000 16,329,000 Mandatory Unemployment and Veterans Benefits and Medicaid Rules Delay, FY2008-FY2018 Totals Emergency Unemployment Compensation -- 11,137,000 11,137,000 9,962,000 Veterans Educational Assistance -- 51,600,000 51,616,000 62,770,000 Medicaid/Other Health Provisions -- -7,000 2,849,000 -7,000 Tax Surcharge Offset -- -52,286,000 -- -- Total FY2008-FY2018 Mandatory -- 10,444,000 65,602,000 72,725,000 Sources: Request and "Enacted June 30" amounts from House Appropriations Committee, explanatory material and funding tables inserted into the Congressional Record, June 19, 2008, pp. H5622-H5699; Senate amounts from Senate Appropriations Committee, "FY2008 Supplemental Explanatory Material," May 20, 2008, on line at [http://appropriations.senate.gov/]; House amounts by CRS based on explanatory material prepared by the House Appropriations Committee and distributed on May 15, 2008, by the House Rules Committee on line at [http://www.rules.house.gov/announcement_details.aspx?NewsID=3333]. Note: Totals may not add due to rounding. a. Title VIII of the June 19 House-passed and ultimately enacted bill made an across-the-board cut of $3.6 billion from amounts provided in Title IX for FY2008 defense procurement, R&D, and revolving fund accounts, to be applied proportionately to each line item. b. In addition to funding provided in Title IX for military operations, the "Defense" category total includes military construction funds and funds for defense-related activities of the Department of Energy provided in Titles I and II. See Appendix B for a more detailed display of funding by appropriations account. CRS-10 Table 2. Selective Comparison of House- and Senate-Passed Supplemental Appropriations, H.R. 2642 (amounts in thousands of dollars) House- Senate- Passed Passed Senate vs. Request May 15 May 22 House Title I: Other Security, Military Construction, and International Matters Department of Agriculture P.L. 480 International Food Assistance 745,000 1,245,000 1,245,000 -- Department of Justice Federal Bureau of Investigation 140,184 174,769 247,565 +72,796 Drug Enforcement Administration, Salaries and Expenses 8,468 12,166 22,666 +10,500 Other Dept of Justice Programs 37,114 42,369 42,369 -- Department of Defense Military Construction 2,010,855 3,275,284 2,228,304 -1,046,980 Family Housing 427,676 1,366,400 1,214,652 -151,748 Department of Veterans Affairs Polytrauma Clinics and Other Programs -- 120,000 557,100 +437,100 International Affairs Supplemental Appropriations for Fiscal Year 2008 Administration of Foreign Affairs, Embassy Security and Other 1,868,008 1,691,008 1,512,900 -178,108 International Organizations, Peacekeeping Programs 386,600 386,600 449,600 +63,000 Broadcasting Board of Governors -- -- 3,000 +3,000 Bilateral Economic and Military Assistance International disaster assistance -- 200,000 240,000 +40,000 AID Operation Expenses 41,000 146,000 153,500 +7,500 Economic support fund 2,009,000 1,747,000 1,962,500 +215,500 Democracy fund -- 75,000 76,000 +1,000 International narcotics control and law enforcement 734,000 419,300 520,000 +100,700 Migration and refugee assistance 30,000 325,000 367,108 +42,108 Nonproliferation, anti-terrorism, demining and related programs 5,000 11,200 10,000 -1,200 Foreign Military Financing Programs -- 72,500 -- -72,500 Peacekeeping operations -- -- 10,000 +10,000 World Food Program -- 20,000 -- -20,000 International narcotics control and law enforcement (Sudan) -- 10,000 -- -10,000 Offsetting Rescissions -30,000 -- +30,000 International Affairs Bridge Fund Appropriations for Fiscal Year 2009 Administration of Foreign Affairs, Embassy Security and Other 1,081,300 836,200 750,700 -85,500 International Organizations, Peacekeeping Programs 40,000 225,500 225,500 -- Broadcasting Board of Governors -- 8,000 6,000 -2,000 Bilateral Economic and Military Assistance Global Health and Child Survival -- 75,000 75,000 -- Development Assistance 210,000 200,000 200,000 -- International disaster assistance 270,000 200,000 200,000 -- Operating expenses of the US Agency for International Development 60,000 93,000 93,000 -- CRS-11 House- Senate- Passed Passed Senate vs. Request May 15 May 22 House Operating expenses of the US Agency for International Development Office of Inspector General -- 1,000 1,000 -- Economic support fund 1,297,800 1,147,300 1,132,300 -15,000 International narcotics control and law enforcement 225,000 204,500 151,000 -53,500 Migration and refugee assistance 191,000 350,000 350,000 -- Nonproliferation, anti-terrorism, demining and related programs -- 4,000 4,500 +500 Foreign Military Financing program grants 170,000 170,000 145,000 -25,000 Peacekeeping operations 60,000 85,000 85,000 -- World Food Program -- -- 20,000 +20,000 International narcotics control and law enforcement (Sudan) -- -- 10,000 +10,000 Horn of Africa -- -- 40,000 +40,000 Food Security and Cyclone relief -- -- 225,000 +225,000 Jordan -- -- 300,000 +300,000 Offsetting Rescissions -- -- -645,000 -645,000 Total, Title I 12,048,005 14,939,096 14,231,264 -707,832 Title II: Domestic Matters Food and Drug Administration -- -- 275,000 +275,000 Bureau of the Census -- 210,000 210,000 -- Department of Justice United States Marshals Service, Salaries and Expenses -- -- 50,000 +50,000 Federal Prison System, Salaries and Expenses -- 178,000 178,000 -- State and Local Law Enforcement Assistance -- -- 590,000 +590,000 Science NASA, Return to Flight -- -- 200,000 +200,000 National Science Foundation -- -- 200,000 +200,000 Non-Defense Energy Programs, Cleanup and Science -- -- 157,000 +157,000 Defense Environmental Cleanup -- -- 243,000 +243,000 National Institutes of Health -- -- 400,000 +400,000 Small Business Administration -- -- 600 +600 Secure Rural Schools -- -- 400,000 +400,000 State Unemployment Insurance -- 110,000 110,000 -- Centers for Disease Control, Research and Training -- -- 26,000 +26,000 Low-Income Energy Assistance (LIHEAP) -- -- 1,000,000 +1,000,000 House of Representatives, Payments to Widows and Heirs -- 169 -169 American Battle Monuments Commission, Foreign Currency Account -- -- 10,000 +10,000 Total, Title II -- 498,169 4,049,600 +3,551,431 Title III: Hurricanes Katrina and Rita, and Other Natural Disasters Emergency Conservation Program -- -- 49,413 +49,413 Emergency Watershed Protection Program -- -- 130,464 +130,464 Rural Electric and Telecommunication Loans -- -- 1,000 +1,000 CRS-12 House- Senate- Passed Passed Senate vs. Request May 15 May 22 House Offsetting Rescissions -- -- -1,000 -1,000 Economic Development Assistance Programs -- -- 75,000 +75,000 National Oceanic and Atmospheric Administration -- -- 75,000 +75,000 State and Local Law Enforcement Assistance -- -- 75,000 +75,000 Corps of Engineers 5,761,000 5,761,000 8,759,745 +2,998,745 Bureau of Land Management, Wildland Fire Management -- -- 125,000 +125,000 National Park Service, Historic Preservation Fund -- -- 15,000 +15,000 EPA, State and Tribal Assistance Grants -- -- 5,000 +5,000 Forest Service, Wildland Fire Management -- -- 325,000 +325,000 Centers for Medicare and Medicaid Services -- -- 350,000 +350,000 Department of Defense Military Construction Army National Guard -- -- 11,503 +11,503 Offsetting Rescissions -- -- -7,000 -7,000 Family Housing Navy -- -- 10,500 +10,500 Emergency Highway Relief Program -- -- 451,126 +451,126 Department of Housing and Urban Development -- -- 146,000 +146,000 Louisiana Road Home (rescission of emergency funds) -- -- -200,000 -200,000 Total, Title III 5,761,000 5,761,000 10,396,751 +4,635,751 Title IV (Senate)/Title III (House): Veterans Educational Assistance Veterans Educational Assistance, FY2008 -- 40,000 40,000 -- Veterans Educational Assistance, FY2009 -- 676,000 677,000 +1,000 Total, Title IV -- 716,000 717,000 +1,000 TITLE V (Senate)/Title IV (House): Emergency Unemployment Compensation Emergency unemployment compensation FY2008 -- 6,170,000 6,170,000 -- Emergency unemployment compensation FY2009 -- 9,440,000 9,440,000 -- Total, Title V -- 15,610,000 15,610,000 -- Title VI (Senate)/Title V (House): Department of Health and Human Services Medicaid Moratorium, FY2008 -- 450,000 -- -450,000 Medicaid Moratorium, FY2009 -- 1,150,000 -- -1,150,000 Medicaid, Medicare and SCHIP provisions, FY2008 -- -- 530,000 +530,000 Medicaid, Medicare and SCHIP provisions, FY2009 -- -- 1,225,000 +1,225,000 Total, Title VI -- 1,600,000 1,755,000 +155,000 Title IX: Defense Matters Defense Supplemental Appropriations for Fiscal Year 2008 Military Personnel 16,767,299 -- 18,065,599 +18,065,599 Operation and Maintenance 31,271,603 -- 31,475,336 +31,475,336 Iraq Freedom Fund 207,500 -- 50,000 +50,000 Afghanistan Security Forces Fund 1,350,000 -- 1,400,000 +1,400,000 Iraq Security Forces Fund 1,500,000 -- 1,500,000 +1,500,000 CRS-13 House- Senate- Passed Passed Senate vs. Request May 15 May 22 House Procurement 44,411,846 -- 42,006,355 +42,006,355 Research, Development, Test and Evaluation 2,945,748 -- 1,745,483 +1,745,483 Revolving and Management Funds 962,785 -- 1,842,560 +1,842,560 Defense Health Program 561,741 -- 1,413,864 +1,413,864 Other Programs 69,411 -- 146,711 +146,711 General Provisions 6,500 -- 6,500 +6,500 Defense Bridge Fund Appropriations for Fiscal Year 2009 Military Personnel 3,805,000 -- 1,194,000 +1,194,000 Operation and Maintenance 44,870,064 -- 51,916,009 +51,916,009 Afghanistan Security Forces Fund 3,666,259 -- 2,000,000 +2,000,000 Iraq Security Forces Fund 2,000,000 -- 1,000,000 +1,000,000 Procurement 2,930,044 -- 4,435,320 +4,435,320 Research, Development, Test and Evaluation 379,125 -- 387,828 +387,828 Defense Working Capital Funds 2,200,000 -- -- -- Defense Health Program 400,000 -- 1,100,000 +1,100,000 Drug Interdiction and Counter-Drug Activities, Defense 130,000 -- 188,000 +188,000 Joint Improvised Explosive Device Defeat fund 2,970,444 -- 2,000,000 +2,000,000 Mine Resistant Ambush Protected Vehicle fund 2,610,000 -- 1,700,000 +1,700,000 Rescission of emergency appropriations -- -- -146,531 -146,531 Total, Title IX 166,015,369 -- 165,427,034 +165,427,034 Total in Bill 183,824,374 39,094,265 212,186,649 +173,062,384 Sources: Request and Senate amounts from Senate Appropriations Committee, "FY2008 Supplemental Explanatory Material," May 20, 2008, on line at [http://appropriations.senate.gov/]; House amounts by CRS based on explanatory material prepared by the House Appropriations Committee and distributed on May 15, 2008, by the House Rules Committee on line at [http://www.rules.house.gov/announcement_details.aspx?NewsID=3333]. Iraq Policy House-Passed and Senate Committee Bills. The May 15 House-passed version of H.R. 2642 included a package of Iraq-related policy provisions requiring ! that a redeployment U.S. forces out of Iraq begin within 30 days of enactment of the legislation with a goal of completing withdrawal of combat troops by December, 2009; ! that any agreement on the status of U.S. forces in Iraq be authorized by Congress; ! that Iraq match U.S. reconstruction aid dollar-for-dollar; ! that Iraq agree to subsidize fuel costs for U.S. forces; and ! that U.S. troops meet guidelines for readiness before being deployed, including guidelines for time at home between rotations. The House-passed Iraq policy amendment also made contractors in war zones subject to prosecution for offenses that would violate U.S. law, prohibited the establishment CRS-14 of permanent bases in Iraq, and prohibited interrogation techniques not authorized in the Army Field Manual. The Senate, however, rejected by a vote of 34-63 a package of Iraq policy provisions that were approved by the appropriations committee. The vote did not necessarily reflect the sentiment of the Senate on policy matters, however -- several anti-war Senators said they opposed the measure because they did not want to vote for the $163 billion in funding to which the policy package was attached. The Senate committee measure did not establish a timetable for withdrawal, as in the House bill. The rejected Senate policy provisions would ! state that the mission of U.S. forces in Iraq should shift to counter- terrorism, training, and force protection; ! require that units be fully mission capable before being deployed, with a Presidential waiver; ! set limits on the time units may be deployed of one year in the Army and seven months in the Marine Corps, also with a waiver; ! require that units be based at home for the same periods between rotations, with a waiver; ! prohibit permanent bases in Iraq; ! require congressional approval of any security agreements with Iraq; ! prohibit an agreement that would place U.S. forces under Iraqi criminal jurisdiction; ! require a report on Iraq's budget; ! require Iraq to reimburse U.S. forces for fuel costs; ! establish criminal statutes against profiteering and other fraud and abuse; ! prohibit U.S. funding of large-scale infrastructure projects in Iraq; ! require an agreement with Iraq to share costs of military operations; and ! require that the International Red Cross be informed of and have access to any detainees. The committee proposal also included expanded oversight of contractors and an extension of laws governing extraterritorial jurisdiction over contractor personnel. The June 19 House-passed bill, which the Senate agreed to June 26, and which the President signed on June 30, drops most of the policy language in the initial House measure. It includes only provisions that would ! require that Iraq match U.S. State Department and USAID (though not Defense Department) reconstruction funding; ! prohibit permanent U.S. bases in Iraq; and ! extend mandatory fraud reporting requirements to contractors working abroad. CRS-15 Defense Funding Issues Between February and October 2007, the Administration requested a total of $189.3 billion in emergency FY2008 supplemental appropriations for the Department of Defense. Through December 2007, Congress had approved $86.8 billion, which left $102.5 billion still pending when the 110th Congress reconvened in January. In March, 2008, the Defense Department provided the congressional defense committees with a revised allocation of the remaining funds. The main changes were to reduce remaining requested funding for "Other Procurement Army" and to add money for Navy, Army National Guard, and Air Force operation and maintenance accounts. The revision also added about $1 billion in military construction funds to cover escalating base realignment and closure costs. In considering the remaining FY2008 defense request, House and Senate appropriators announced plans to add a "bridge fund" for FY2009 of $65-70 billion, providing funds mainly for personnel and operating accounts sufficient to allow the military services to continue operations into about the middle of calendar year 2008. This would avoid another contentious debate over Iraq policy during the fall election season, accompanied by DOD complaints that it would have to shut down Army and Marine Corps operations early in the following year. It would also leave time for the next Administration to formulate its own full-year war supplemental funding proposal based on any proposed changes in strategy and troop levels. Subsequently, on May 2, 2008, the White House sent Congress a formal request for $70 billion in emergency war-related FY2009 supplemental funding, of which $66 billion was for the Department of Defense and $4 billion for international affairs programs. Table 2 and, with somewhat more detail, Tables B-1 and B-2 in Appendix B show House and Senate action on defense funding compared to the unadjusted Administration FY2008 supplemental request and the new FY2009 request. In general, the House leadership bill, like the Senate-passed bill, agreed to the Defense Department's proposed shifts of FY2008 funds -- both bills added funding for base realignment and closure costs and for service operation and maintenance accounts and reduced funding for "other procurement Army," an account that has grown dramatically in recent supplementals to cover purchase of force protection equipment, trucks, and communications equipment. The Army has been adjusting its projected requirements in all of these areas. The main congressional initiatives in the FY2008 and FY2009 defense supplemental bills were to add funding for a number of major weapons programs. Both the Senate-passed bill and the House-leadership bill included $3.6 billion in FY2008 to procure 15 C-17 cargo aircraft, which the Administration is officially proposing to terminate, but for which the Air Force requested funds in its FY2008 and FY2009 unfunded priorities lists. Both bills also added $2.5 billion for 34 C-130J cargo aircraft, including a tanker variant for the Marine Corps and a variant for Special Operations Forces. The FY2009 bridge fund request included only a limited amount for procurement, $4.4 billion all, since most of the money in the bridge fund was intended to sustain operations into next year. Neither bill provided CRS-16 funding for F-22 procurement, leaving the issue to be resolved the regular FY2009 defense appropriations bill. The enacted version of the bill, passed by the House June 19 and by the Senate on June 26, includes the earlier Senate amounts for defense, but with an across-the- board cut of $3.6 billion from FY2008 procurement, R&D, and revolving fund accounts, to be applied proportionately to each line item. International Affairs Remaining FY2008 and Additional FY2009 Supplemental Appropriations6 In its initial February 2007 budget for FY2008 and in the October 2007 budget amendment, the Administration requested a total of $6.9 billion in emergency FY2008 appropriations for international affairs programs. Most of the request was for embassy security and reconstruction assistance in Iraq and Afghanistan. Congress did not address these funding requests until it took up the FY2008 Department of State/Foreign Operations appropriations bill, H.R. 2764, which ultimately became the vehicle for consolidated FY2008 appropriations. Division J of the consolidated appropriations bill comprises a conference agreement on the State/Foreign Operations appropriations bill. It includes, in addition to regular FY2008 appropriations, $2.4 billion of emergency FY2008 funding. Not all of that $2.4 billion was for programs that were part of the Administration's $6.9 billion emergency funding request. Furthermore, some supplemental funds were allocated to the base international affairs budget when Congress appropriated less than requested in regular funding. According to the State Department, only about $1.5 billion of the new emergency funding was for programs as requested, leaving $5.4 billion of the request still to be addressed, of which $2.3 billion is for State Department and related activities and $3.1 billion is for foreign operations. In addition to the remaining FY2008 supplemental request, on May 2, 2008, the Administration amended its regular FY2009 State-Foreign operations request by adding a supplemental request of $2.24 billion to the Department of State FY2009 regular request and nearly $2.88 billion in foreign assistance funding, including $770 million for food security and food aid. Table 3 shows the remaining FY2008 supplemental request and the FY2009 supplemental request for the State Department and international broadcasting. Table 4 shows the remaining FY2008 supplemental request and the FY2009 supplemental request for foreign operations. Table 5 shows rescissions in the House and Senate bills. Congressional Action The enacted version of H.R. 2642, passed by the House June 19 and by the Senate June 26, provides a total of $6.15 billion in FY2008 supplementals and $3.94 in FY2009 supplementals for the Department of State, Foreign Operations, and 6 Prepared by Susan B. Epstein, Specialist in Foreign Policy. CRS-17 Related Programs. It funds about $1.99 billion for the Department of State and adds $2 million for International Broadcasting in FY2008 supplemental spending. About $1.15 billion is provided for Iraq operations in the Diplomatic and Consular Programs (D&CP) account. Compared to the May 15 House-passed bill, the enacted version raises funding for the Inspector General, U.S. Contributions to International Organizations, and U.S. Contributions to International Peacekeeping. The International Broadcasting funds are for increased broadcasting to Tibet. (See Table 3.) For Foreign Operations, the enacted House bill provides about $4.16 billion in FY2008 funding to various countries and for international food aid. (See Table 4.) For the FY2009 supplemental, the enacted version of the bill provides a total of $1.07 billion for State Department accounts, including up to $550.5 million for operations in Iraq. In addition, $6 million is provided for international broadcasting. The bill also provides about $2.86 billion for country foreign aid allocations and for international food aid. The enacted legislation made some changes to earlier House and Senate versions. It reduced slightly the amount for the Department of State in FY2008, but increased the amount for State in the FY2009 supplemental. The final bill added funds for international broadcasting -- $2 million for FY2008 and $6 million for FY2009 -- that were not in earlier versions of the legislation. For foreign assistance, the enacted bill reduced somewhat from earlier versions the amount for Iraq and Afghanistan, Jordan, the Democratic Republic of the Congo. It also eliminated funds for Vietnam and Pakistan in FY2008 that had been in earlier versions. The enacted legislation increased funds for Mexico in FY2008 and for Sudan in both supplemental years. (See Table 3.) While both bills contained some rescissions, most noteworthy were Senate rescissions totaling $525 million from the Millennium Challenge Corporation (MCC).7 The MCC rescissions were used as offsets to provide $300 million for Jordan, a country expected to sign a compact with MCC next year, and $225 million for International Disaster Assistance. The enacted legislation did not include the $225 million in rescissions from MCC for International Disaster Assistance (IDA), however. (See Table 5.) 7 The MCC, first authorized in January 2004 (P.L. 108-199), provides assistance through a competitive bidding process to developing countries that show progress in adopting democratic reforms. CRS-18 Table 3. FY2008 and FY2009 Emergency Supplemental for State Department Operations (millions of U.S. dollars) House Senate House Senate Total Enacted Second May 15- May 22- Enacted May 15- May 22- Enacted FY2008 Supp. FY2008 passed passed June 30 FY2009 passed passed June 30 Supp. H.R. 2764 Supp FY2008 FY2008 FY2008 Supp FY2009 FY2009 FY2009 Activity Request PL110-161 Request Supp Supp Supp Request Supp Supp Supp Total State Operations $3,219.6 $1,261.6 $2,254.6 $2,077.6 $1,962.5 $1,991.6 $1,121.3 $1,061.7 $1,016.2 $1,068.2 Diplomatic & Consular 2,283.0 781.6 1,708.0 $1,606.8 $1,413.7 $1,465.7 1,064.5 $737.9 $652.4 $744.9 Programs Iraq Operations (2,120.6) (575.0) (1,545.6) (1,295.0) (1,095.0) (1,150.0) (921.0) (581.5) (500.0) (550.5) Afghanistan (205.2) (195.2) ((200.2) (101.0) (91.4) (87.4) (89.4) Worldwide Security Protection (162.4) (206.6) (162.4) (210.5.) (212.4) (48.0) (45.8) (78.4) (78.4) (78.4) Education & Cultural Exchanges -- -- -- -- $10.0 -- -- -- -- -- Embassy Security, Construction & Maintenance $160.0 -- $160.0 $76.7 $76.7 $76.7 -- $41.3 $41.3 $41.3 Office of Inspector General -- -- -- $7.5 $12.5 $9.5 $16.8 $57.0 $57.0 $57.0 Contributions to International Organizations $53.0 -- $53.0 $53.0 $66.0 $66.0 $40.0 $75.0 $75.0 $75.0 Contributions to International Peacekeeping $723.6 $468.0 $333.6 $333.6 $383.6 $373.7 -- $150.5 $150.5 $150.5 Broadcasting -- $12.0 -- -- $3.0 $2.0 -- -- $6.0 $6.0 Total $3,219.6 $1,261.6 $2,254.6 $2,077.6 $1,965.5 $1,993.6 $2,242.6 $1,061.7 $982.2 $1,074.2 Source: H.R. 2642, the Department of State, and CRS calculations. For FY2009 figures, Office of Management and Budget, "FY2009 Emergency Budget Amendments: Operation Iraqi Freedom, Operation Enduring Freedom, and Selected Other International Activities," May 2, 2008. CRS-19 Table 4. FY2008 and FY2009 Foreign Operations Emergency Supplemental (millions of U.S. dollars) House Senate House Senate May Total Enacted May 15- May 22- Enacted May 15- 22- Enacted FY2008 Supp Second passed passed June 30 FY2009 passed passed June 30 Supp. HR2764 FY08 Supp FY2008 FY2008 FY2008 Supp FY2009 FY2009 FY2009 Account Request PL110-161a Request Supp Supp Supp Request Supp Supp Supp Afghanistan 839.0 n.a 839.0 929.0 904.0 899.0 924.9 455.0 455.0 455.0 ESF 834.0 859.0 899.0 859.0 749.9 455.0 455.0 455.0 NADR 5.0 5.0 5.0 5.0 -- -- -- -- INCLE -- 65.0 -- 35.0 175.0 -- -- -- USAID Operating Expenses (16.0) -- -- -- -- -- -- -- Iraq 956.0 n.a 956.0 600.0 558.0 584.0 212.8 104.5 114.5 107.0 ESF 797.0 440.0 398.0 424.0 212.8 100.0 110.0 102.5 INCLE 159.0 80.0 85.0 85.0 -- -- -- -- NADR -- -- -- 4.5 4.5 4.5 DF 75.0 75.0 75.0 -- -- -- Pakistan 60.0 n.a 60.0 -- 60.0 -- 170.0 175.0 150.0 150.0 ESF 60.0 -- 60.0 -- 70 175.0 150.0 150.0 FMF -- -- -- 100.0 -- -- -- Lebanon 50.0 45.0 32.5 FMF -- -- -- -- -- -- 50.0 -- 45.0 32.5 Jordan 150.0 450.0 250.0 100.0 200.0 200.0 200.0 FMF -- -- -- -- -- 17.0 100.0 100.0 100.0 100.0 ESF 150.0 150.0 175.0 100.0 100.0 100.0 ESF offset with rescissions 300.0 25.0 FMF offset with rescissions 33.0 CRS-20 House Senate House Senate May Total Enacted May 15- May 22- Enacted May 15- 22- Enacted FY2008 Supp Second passed passed June 30 FY2009 passed passed June 30 Supp. HR2764 FY08 Supp FY2008 FY2008 FY2008 Supp FY2009 FY2009 FY2009 Account Request PL110-161a Request Supp Supp Supp Request Supp Supp Supp West Bank/Gaza 375.0 n.a 220.0 125.0 225.0 196.0 200.0 150.0 200.0 200.0 INCLE 25.0 25.0 25.0 25.0 50.0 50.0 50.0 50.0 ESF 350.0 100.0 200.0 171.0 150.0 150.0 150.0 150.0 Israel (FMF) -- -- -- -- -- -- -- -- -- 170.0 North Korea 106.0 n.a 53.0 53.0 53.0 53.0 15.0 15.0 15.0 15.0 ESF 106.0 53.0 53.0 53.0 53.0 15.0 15.0 15.0 15.0 Mexico 500.0 0.0 500.0 296.5 350.0 352.0 -- 103.5 -- 48.0 INCLE -- -- 210.0 350.0 215.5 53.5 -- 48.0 FMF 500.0 -- 66.5 -- 116.5 50.0 -- -- ESF -- -- 20.0 -- 20.0 -- -- -- Central America 50.0 -- 50.0 56.5 90.0 65.0 -- -- -- -- INCLE 50.0 50.0 29.3 50.0 24.8 -- NADR -- -- 6.2 -- 6.2 -- FMF -- -- 6.0 -- 4.0 -- ESF -- -- 15.0 40.0 25.0 -- Haiti (INCLE) -- -- -- 2.5 5.0 2.5 -- -- -- -- Dominican Republic ((INCLE) -- -- -- 2.5 5.0 2.5 -- -- -- -- Nepal (ESF) -- 7.0 7.0 -- -- -- -- Philippines (ESF) -- 15.0 15.0 -- -- -- -- Sri Lanka (ESF) -- 6.0 6.0 -- -- -- -- Thailand (ESF) -- 2.5 2.5 -- -- -- -- CRS-21 House Senate House Senate May Total Enacted May 15- May 22- Enacted May 15- 22- Enacted FY2008 Supp Second passed passed June 30 FY2009 passed passed June 30 Supp. HR2764 FY08 Supp FY2008 FY2008 FY2008 Supp FY2009 FY2009 FY2009 Account Request PL110-161a Request Supp Supp Supp Request Supp Supp Supp Vietnam (ESF) -- 2.0 -- -- -- -- -- Bangladesh (ESF) -- -- -- 25.0 25.0 25.0 -- 50.0 50.0 50.0 Burma (ESF) -- -- -- -- -- -- -- 5.3 5.3 5.3 Africa (ESF) -- -- -- 40.0 -- -- -- -- -- -- Sudan 70.0 n.a 70.0 45.0 45.0 55.0 -- 25.0 25.0 35.0 ESF 70.0 70.0 45.0 45.0 45.0 25.0 25.0 25.0 10.0 b 10.0 b Somalia 40.0 40.0 40.0 -- PKO -- -- -- -- -- -- 40.0 40.0 40.0 -- Kenya (ESF) -- -- -- -- 12.0 12.0 45.0 25.0 25.0 25.0 Democratic Republic of the -- -- -- -- 25.0 12.5 20.0 30.0 30.0 20.0 Congo ESF 15.0 12.5 -- 10.0 10.0 10.0 PKO 10.0 -- 20.0 20.0 20.0 10.0 Zimbabwe (ESF) -- -- -- -- 5.0 5.0 -- 15.0 15.0 15.0 Chad (ESF& DF) -- -- -- -- 5.0 3.0 -- 5.0 5.0 5.0 Central African Republic (ESF) -- -- -- -- 2.0 1.0 -- 2.0 2.0 2.0 Uganda (ESF) -- -- -- -- 22.0 17.5 15.0 15.0 15.0 15.0 Poland 20.0 FMF -- -- -- -- -- -- 20.0 -- -- -- Stabilization/Peacekeeping -- -- -- -- (10.0) -- (80.0) (85.0) (85.0) -- CRS-22 House Senate House Senate May Total Enacted May 15- May 22- Enacted May 15- 22- Enacted FY2008 Supp Second passed passed June 30 FY2009 passed passed June 30 Supp. HR2764 FY08 Supp FY2008 FY2008 FY2008 Supp FY2009 FY2009 FY2009 Account Request PL110-161a Request Supp Supp Supp Request Supp Supp Supp Horn of Africa/Kenya (110.0) (110.0) -- -- -- -- -- -- -- PL480 (110.0) 0.0 Southern Africa (135.0) 0.0 (135.0) -- -- -- -- -- -- -- PL480 (135.0) Migration/Refugee Assist. 230.0 200.0 30.0 300.0 330.5 315.0 191.0 350.0 350.0 350.0 Emergency Migration (ERMA) -- -- -- 25.0 36.6 31.0 -- -- -- -- Intern'l Disaster Assist. 80.0 80.0 -- 200.0 240.0 220.0 45.0 200.0 325.0 200.0 PL480 350.0 0.0 350.0 850.0 850.0 850.0 395.0 395.0 395.0 395.0 Other Food Security (DA & -- -- -- -- -- 20.0 c 375.0 200.0 200.0 200.0 IDA) Global Health and Child -- -- -- -- -- -- -- 75.0 75.0 75.0 Survival USAID Operating Expenses 61.8 n.a 41.0 142.0 149.5 150.5 60.0 93.0 93.0 93.0 USAID IG -- -- -- 4.0 4.0 4.0 -- 1.0 1.0 1.0 Comprehensive Test Ban Treaty Int'l Monitoring -- -- -- -- 5.0 2.5 -- -- -- -- Other -- -- -- -- -- -- -- 196.0 125.0 -- Total d 3,677.8 1,123.4 3,169.0 3,846.0 4,489.1 4,158.5 2,878.7 2,925.3 2,955.8 2,863.8 Acronyms: ESF=Economic Support Fund; INCLE=International Narcotics Control and Law Enforcement; FMF=Foreign Military Financing; PKO=Peacekeeping Operations; IDA- International Disaster Assistance; DA=Development Assistance; MRA=Migration and Refugee Assistance; NADR=Nonproliferation, Anti-terrorism, Demining, and Related Programs; and PL480=Food for Peace; USAID=U.S. Agency for International Development, DF=Democracy Fund, ACP=Andean Counterdrug Program, WFP=World Food Program. CRS-23 Source: H.R. 2642, the Department of State, and CRS calculations. For FY2009 figures, Office of Management and Budget, "FY2009 Emergency Budget Amendments: Operation Iraqi Freedom, Operation Enduring Freedom, and Selected Other International Activities," May 2, 2008. Notes: a. Some supplemental funds were not designated in the Joint Explanatory Statement accompanying H.R. 2764 with regard to destination, and are marked as "n.a." b. From FY2008 ACP rescission. c. Rescission from WFP. d. Country totals may include other accounts for which supplemental funds were not requested. Totals may not match totals in other sections of this report as all country/account funds are not clearly designated within the legislation. CRS-24 Table 5. House and Senate Rescissions ($ Millions) House Senate Account Enacted May 15 May 22 Andean Counterdrug $20.0 $20.0 $20.0 Program for WFP INCLE for Sudan $10.0 $10.0 $10.0 IRRF -- expired -- $350.0 -- IRRF for ESF total -- -- $50.0 IRRF -- for Mexico -- $50.0 -- IRRF -- for Horn of -- $40.0 -- Africa and counterterrorism MCC -- for Jordan -- $300.0 $58.0 MCC -- for IDA -- $225.0 -- Source: H.R. 2642 and the Department of State. Iraq Reconstruction Assistance8 A major issue in congressional action on supplemental funding for international affairs was how much to provide for Iraq reconstruction and how to increase the role of the Iraqi government. With the passage of the Consolidated FY2008 Appropriations Act, nearly half of the Administration's $4.9 billion FY2008 supplemental request for Iraq reconstruction was approved. However, of the roughly $2.1 billion appropriated in this category of assistance, only about $230 million was for economic aid under the foreign operations portion of the bill, the bulk of enacted reconstruction assistance being in the form of DOD appropriations. Remaining outstanding from the FY2008 request and under consideration in the Second FY2008 supplemental was roughly $2.9 billion, of which $986 million was for foreign operations economic assistance. The outstanding FY2008 foreign operations request for Iraq was for three accounts -- $797 million in the Economic Support Fund (ESF), $159 million in International Narcotics and Law Enforcement (INCLE), and $30 million in Migration and Refugee Assistance (MRA). However, the bulk of the 2nd FY2008 supplemental request for assistance to Iraq was for DOD appropriations for the training and 8 Prepared by Curt Tarnoff, Specialist in Foreign Affairs. For more detailed discussion of the U.S. program of assistance to Iraq, see CRS Report RL31833, Iraq: Reconstruction Assistance. CRS-25 equipping of Iraqi security forces ($1.5 billion under the Iraq Security Forces Fund, ISFF), for development programs delivered under the Commander's Emergency Response Program (CERP) (Iraq could expect at least half of the $719 million still outstanding for both Iraq and Afghanistan), and for the Task Force to Improve Business and Stability Operations in Iraq ($100 million under the Iraq Freedom Fund account). On May 2, 2008, the Administration issued a request for FY2009 emergency supplemental funding. The request included $398.8 million for foreign operations reconstruction -- $212.8 million in ESF, $141 million in MRA, and $45 million in IDA accounts. The DOD appropriations reconstruction request included $2 billion for the ISFF, $1.7 billion for the CERP in Iraq and Afghanistan, of which at least half would go to Iraq, and $50 million for the Business Task Force. Both DOD and Foreign Operations portions of the FY2009 emergency request were considered by Congress at the same time as the FY2008 supplemental. The accounts to be funded under both FY2008 and FY2009 supplemental requests for Iraq support a wide range of reconstruction programs. ESF is the primary source of funding for assistance disbursed by the Provincial Reconstruction Teams (PRTs), which have grown in number under the surge to 25, including 13 newly established ePRTs (embedded PRTs) embedded with U.S. combat battalions and concentrated mostly in Baghdad and Anbar province. The ePRTs are intended to help stabilize areas secured by U.S. and Iraqi forces by supporting local small- scale, employment-generating, economic projects, using ESF-funded community development grants, job training and micro-loan programs, among other activities. PRTs also utilize ESF to increase the capacities of local government officials to spend Iraqi-owned capital funds allocated by the Iraqi government for infrastructure programs. At the national level, ESF supports ministerial capacity development, agriculture and private sector reform, and the strengthening of democratization efforts. Of the ESF request, $25 million, accompanied by proposed authorization language, would allow the Administration to establish a new Iraq enterprise fund based on the model created for east Europe and the former Soviet Union in the late 1980s and early 1990s. Enterprise funds are U.S. government-funded private sector- run bodies that primarily provide loans or equity investments to small and medium business. In the former communist countries, enterprise funds also encouraged growth of the private sector, including support for mortgage lending markets and establishment of private equity funds. The most successful example, the Polish Fund, made many profitable investments, helping companies grow that otherwise were unable to obtain financial support in the period just after the fall of communism. Some of the funds, however, have been much less successful, either because they took on poor investment risks, or because they were unable to locate promising businesses due to the poor business climate or competition from other private sector funding sources. Some observers question the usefulness of the funds because their ostensible development purpose seems often to conflict with pressures for economic profit. The INCLE account largely would support rule of law and corrections programs. The Administration request was expected to fund prison construction, something that CRS-26 Congress has sometimes cut from previous requests. The request was also intended to extend judicial reform and anticorruption efforts to the provinces. The MRA request would address the continuing refugee crisis in the region; an estimated 2.0 million Iraqis have fled the country and another 2.2 million have been displaced due to sectarian violence and instability. The CERP allows military commanders to support a wide variety of economic activities at the local level, from renovating health clinics to digging wells to painting schools, provided in the form of small grants. CERP also funds many infrastructure efforts no longer supported with other U.S. assistance, such as provision of electric generators and construction of sewer systems and roads. Commanders are able to identify needs and dispense aid with few bureaucratic encumbrances. More recently, the CERP has paid salaries to the so-called Sons of Iraq, mostly Sunnis who are joining with U.S. forces to provide security. The DOD Business Task Force seeks to stimulate the economy and create employment for Iraqi citizens by rehabilitating some of the roughly 200 state-owned enterprises that comprised a large portion of the Iraqi economy prior to the U.S. occupation. News reports have suggested some difficulty with the program, resulting from the lack of electricity, the insecure environment, and a lack of enthusiasm from U.S. companies that had been expected to invest in the facilities, among other reasons. To date, about 29 factories have been assisted, responsible for about 10,000 jobs.9 Outstanding FY2008 supplemental funds include operational costs (not counted in the reconstruction aid total or the table) for staffing and administering reconstruction programs: $679 million for PRTs. The new FY2009 supplemental request includes funding for PRT operations (an unspecified portion of a total $921 million Embassy/PRT request), $23.6 million for USAID operational expenses, and $15 million for the Special Inspector General for Iraq Reconstruction (SIGIR). May 15 House Action on Iraq Reconstruction. The combined funding amendments #1 and #3 to H.R. 2642 which the House considered on May 15 would have provided a total of $4.0 billion in additional economic and security reconstruction funding for Iraq, about two-thirds of the $6.2 billion Administration request for the two years of assistance. See Table 6 for details under each account. However, DOD reconstruction appropriations, contained in amendment #1, were rejected in a House vote on May 15. Of the total FY2008 and FY2009 DOD appropriations request of $4.9 billion, the failed amendment would have provided $3.1 billion, or 64%. Only amendment #3 of the two funding amendments was approved. It contained the foreign operations portion of Iraq reconstruction assistance. Of the total FY2008 and FY2009 foreign operations request of $1.4 billion, the House bill provided $921 million, or 66%. 9 "In Iraq, One Man's Mission Impossible," CNN Money.com, September 4, 2007. CRS-27 Judging by the allocations made by the Appropriations Committee for the $440 million in FY2008 ESF, the committee favors a significant shift in the direction of the economic aid program toward local-level assistance programs. Of the total amount, at least $355 million would be targeted to provincial and local community activities, rather than programs supporting the national government. PRT programs would get $140 million. Related community-based programs, the Community Stabilization Program (CSP) and the Community Action Program (CAP), would receive $100 million and $75 million respectively.10 Provincial economic growth, including microcredit and agriculture, would get $40 million. The only significant national-level effort, the National Capacity Development program, would receive $70 million, a cut of $178 million from the request. Another request for a nationally- based effort, $70 million for the provision of infrastructure security protection, was cut entirely. Democracy assistance, requested under ESF, is being provided under the Democracy Fund account at $75 million, and is expected to be implemented through the National Endowment for Democracy (NED) and other non-governmental organizations (NGOs). Two other reconstruction provisions in the May 15 House bill are noteworthy. No funding was provided for the Iraqi Enterprise Fund, and such a fund was specifically prohibited. The FY2008 INCLE Iraq program funding, at $85 million, was cut substantially, by $74 million, from the request, and no prison construction funding was included. Because operational funds for the PRTs are blended with those of the Embassy and USAID operating expenses are provided for both Iraq and Afghanistan, it is not possible to say with certainty whether the full request was met by the House amendment. The amendment did provide the SIGIR with $2.5 million and $46.5 million for FY2008 and FY2009, respectively. May 22 Senate Action on Iraq Reconstruction. With regard to Iraq funding levels, the Senate bill, approved on May 22, differed from the May 15 House-passed bill in one large respect -- it contained $2.8 billion in DOD reconstruction appropriations and the House bill had none. In other respects, the bills were similar. See Table 6 for account levels. In all, the Senate bill provides $4.2 billion for both DOD and foreign operations appropriations in FY2008 and FY2009, 67% of the Administration request. Like the House, the Senate bill shifted funding strongly in the direction of local- level assistance programs. Of the $398 million in FY2008 ESF, at least $313 million would be targeted to provincial and local community activities, rather than programs supporting the national government. PRT programs would get $138 million. As in the House bill, the CSP and CAP would receive $100 million and $75 million respectively, and the National Capacity Development program would receive $70 million. Infrastructure security protection was cut out. Again, like the House, the Senate bill would provide democracy assistance under the Democracy Fund account 10 The request for the Community Stabilization Program was cut by $55 million and half of funds provided are to be withheld until a concern about possible misuse of funds is resolved. CRS-28 at $75 million. The proposed enterprise fund would also not be funded in the Senate bill. The May 22 Senate bill provided the SIGIR an operating expense level of $2.5 million in FY2008 and $36.5 million in FY2009. PRT and USAID operating expense levels are not specified. House and Senate Action on Iraqi Role in Reconstruction. Reflecting recent indications that Members of both parties desired to see the Iraqi government pay a greater share of the costs of reconstruction, under the approved House amendment #2, the May 15 House bill contained a measure that would require most reconstruction funds to be matched by Iraqi obligations on a dollar-for-dollar basis. The exceptions are for democracy and human rights programs, the USAID Community Action Program and other NGO-assisted programs, humanitarian demining, refugee and displaced persons assistance, intelligence activities, and CERP projects with a value less than $750,000. It is not clear from the language whether the match would have to be made project-by-project or whether total Iraqi funding for reconstruction in general would suffice to permit continued U.S. assistance at the same level. If the latter, the provision might not affect U.S. funding significantly as, in the past year, Iraqi obligations for security and economic reconstruction have approached the U.S. contribution and will likely surpass it in 2008. The May 22 Senate bill contained the above matching fund language. The Senate bill also contained language requiring the Secretary of Defense to develop a process with Iraq to institute equal sharing of reconstruction costs for all DOD- funded projects costing over $750,000, beginning by October 1, 2008. The bill debated on the floor on May 22 would also have prohibited DOD funding of large- scale infrastructure projects costing over $2 million, but this section was rejected along with other so-called policy provisions. As the CERP was exempted from this restriction, the likely effect would have been only to ensure that Iraq funds construction of security-related facilities, such as military barracks and training centers. Enacted Version of FY2008/2009 Supplemental. The version of the FY2008 and FY2009 supplemental approved on June 19 by the House, approved by the Senate June 26, and signed by the President June 30 differs from its predecessor in a few important respects. First, it approves DOD appropriations for Iraq security, adopting the Senate's figures for the ISFF, the CERP, and the Business Task Force (see table below for details). Second, where the two bodies differed in their respective first versions of the bill -- i.e., in the foreign operations appropriations ESF account -- the House compromised with the Senate figure. The enacted version of the bill provides $424 million in FY2008 ESF and $102.5 million in FY2009 ESF, for a total of $526.5 million, $483.3 million less than the combined ESF request. The supplemental provides a total for both years of $175 million for PRT programs; $132.5 million for the CSP; $107.5 million for the CAP; $10 million for infrastructure maintenance; $25 million for Provincial Economic Growth (agriculture and microcredit); $70 million for National Capacity Development; and $7.5 million for the Marla Ruzicka War Victims Fund. CRS-29 A third significant difference between the first version of the House bill and the version enacted on June 30 is the range of conditions placed on economic aid. The bill maintains prohibitions on prison construction and an enterprise fund. It withholds funding on infrastructure maintenance ($10 million) until the Department of State certifies that Iraq has entered into and begun to implement an asset transfer agreement, including an Iraqi agreement to maintain U.S.-funded infrastructure. It releases no more than 40% of rule of law (INCLE) funding until the State Department reports that an anti-corruption strategy has been developed and is being implemented by the Iraq government. It withholds all PRT operating expenses and program funds until the State Department reports on a strategy for winding down and closing out the PRTs, on the costs of the PRT program, expenses, security, and any Iraq contribution, and on the future costs and placement of U.S. consulates in Iraq. The bill withholds half of the Community Stabilization Program (CSP) appropriation until the State Department certifies that USAID is implementing the Inspector General's recommendations regarding accountability. Finally, the bill only releases its foreign operations appropriations for Iraq to the extent that U.S. funds are "matched" on a dollar-for-dollar basis by Iraq. Exceptions are made for democracy and human rights programs, the Community Action Program and other civil society efforts, demining, and assistance to refugees and displaced persons. The Secretary of State must submit a report by end of September 2008 with amounts obligated and expended by the Government of Iraq. CRS-30 Table 6. Supplemental Appropriations for Iraq Reconstruction (millions of U.S. dollars) International Affairs (Budget Function 150 Accounts) Enacted House May Senate May Total Supp. Second 15-passed 22-passed Enacted FY2008 Allocation FY2008 Version Version June 30 FY2009 House May 15- Senate May 22- Enacted Supp. H.R. 2764 Supp FY2008 FY2008 FY2008 Supp passed Version passed Version June 30 Request (PL110-161) Request Supp Supp Supp Request FY2009 Supp FY2009 Supp FY2009 Supp Economic Support Fund (ESF) 797.0 15.0 797.0 440.0 398.0 424.0 212.8 100.0 110.0 102.5 Democracy Fund -- -- -- 75.0 75.0 75.0 -- -- -- -- International Narcotics Control and Law Enforcement (INCLE) 159.0 -- 159.0 85.0 85.0 85.0 -- --g -- --g Migration and Refugee Assistance (MRA) 195.0a 149.5a 30.0a 30.0j 30.0j 30.0j 141.0 141.0h 141h 141.0h International Disaster Assistance (IDA) 80.0b 80.0b -- -- -- -- 45.0 45.0i 45.0i 45.0i Nonprolif, Anti-Terror, Demining (NADR) -- -- -- -- -- -- -- 4.5 4.5 4.5 TOTAL 150 Account 1,231.0 244.5 986.0 630.0 588.0 614.0 398.8 290.5 300.5 293.0 Department of Defense (Budget Function 050 Accounts) Iraq Security Forces Fund (ISFF) 3,000 1,500.0 1,500.0 (1,500.0)* 1,500.0 1,500.0 2,000.0 (1,000.0)* 1,000.0 1,000 Commander's Emergency Response Program (CERP) 609.7c 370.0d 359.7e (544.9)*e 744.9e 744.9e 850.0f -- -- -- Iraq Freedom Fund (for Task Force to Improve Business) 100.0 -- 100.0 (50.0)* 50.0 50.0 50.0 -- -- -- TOTAL 050 Account 3,709.7 1,870.0 1,959.7 (2,094.9)* 2,294.0 2,294.0 2,900.0 (1,000.0)* 1,000.0 1,000 CRS-31 GRAND TOTAL 150 & 050 4,940.7 2,114.5 2,945.7 (2,724.9)* 2,882.9 2,908.0 3,298.8 (1,290.5)* 1,300.5 1,293.0 Sources: Department of State and DOD FY2008 Congressional Budget Justifications; H.R. 2764; SIGIR, Report to Congress, April 2008; Office of Management and Budget, "FY2009 Emergency Budget Amendments: Operation Iraqi Freedom, Operation Enduring Freedom, and Selected Other International Activities," May 2, 2008; Amendments to H.R. 2642 and Explanatory Statements. Note: Not included are requests of $45.8 million in USAID Iraq operational expenses (OE) and $679 million for PRT OE. H.R. 2764 provided USAID with $20.8 million in OE. * 050 account funds were contained in amendment #1 to H.R. 2642, which failed to pass the House on May 15, 2008. Amendment #3, containing 150 account appropriations, was approved by Congress on that date. a. H.R. 2764 provided $200 million for MRA account. The total account request was $230 million. Table shows amount requested/allocated for Iraq. b. H.R. 2764 provided $110 million for Iraq and other countries affected by disasters. Total IDA account request was $80 million. Table shows amount allocated for Iraq. c. The total CERP request of $1,219.4 million is for both Iraq and Afghanistan. The amount included here assumes that at least half will be used in Iraq. d. Congress appropriated up to $500 million for the CERP. According to the SIGIR, Iraq has been allocated $370 million as of April 2008. e. The total unenacted FY2008 CERP request of $719.4 million is for both Iraq and Afghanistan. The amount included here assumes that at least half of the request is for Iraq. The House and Senate figures are amount remaining for Iraq after specified amount for Afghanistan and Philippines is subtracted from total. f. The total FY2009 supplemental CERP request of $1.7 billion is for both Iraq and Afghanistan. The amount included here assumes that at least half of the request is for Iraq. g. Total May 15 House FY2009 amount for INCLE account is $204.5 million, including an unspecified level of Iraq aid. Total June 19 House amount is $199 million, including an unspecified amount for Iraq. h. Total May 15 House and May 22 Senate bill amount for FY2009 MRA account is $350 million, including an unspecified level of Iraq aid. Total June 19 House amount is $350 million, including an unspecified level of Iraq aid. i. Total May 15 House and May 22 Senate bill FY2009 amount for IDA account is $200 million. Total June 19 House is $200 million, with unspecified amount for Iraq. j. Total May 15 House amount for FY2008 MRA account is $300 million, including an unspecified level of Iraq aid. Total May 22 Senate draft amount for MRA account is $330.5 million, including an unspecified level of Iraq aid. Total June 19 House amount for FY2008 is $315 million, including an unspecified level of Iraq aid. CRS-32 Afghanistan Reconstruction Assistance11 Background. Afghanistan's political transition was completed with the convening of a parliament in December 2005, but in 2006 insurgent threats to Afghanistan's government escalated to the point that some experts began questioning the success of U.S. stabilization efforts. In the political process, a new constitution was adopted in January 2004, successful presidential elections were held on October 9, 2004, and parliamentary elections took place on September 18, 2005. The parliament has become an arena for factions that have fought each other for nearly three decades to debate and peacefully resolve differences. Afghan citizens have started to enjoy new personal freedoms, particularly in the northern and western regions of the country, that were forbidden under the Taliban. Women are beginning to participate in economic and political life, including as ministers, provincial governors, and senior levels of the new parliament. The next elections are planned for 2009. The insurgency, led by remnants of the former Taliban regime, escalated in 2006, after several years in which it appeared the Taliban was mostly defeated. U.S. and NATO military commanders have had recent successes in counter-insurgency operations, but the Taliban continues to present a considerable threat to peace and security in parts of Afghanistan. Some experts argue that slow reconstruction, corruption, and the failure to extend Afghan government authority into rural areas and provinces, particularly in the south and east, have contributed to the Taliban resurgence. Political leadership in the more stable northern part of the country have registered concerns about distribution of reconstruction funding. In addition, narcotics trafficking is resisting counter-measures, and independent militias remain throughout the country, although many have been disarmed. The Afghan government and U.S. officials have said that some Taliban commanders are operating across the border from Pakistan, putting them outside the reach of U.S./NATO forces in Afghanistan. In 2007, the Administration unveiled the Reconstruction Opportunity Zones (ROZ) in Afghanistan and the border regions with Pakistan, an initiative to stimulate economic activity in underdeveloped, isolated regions. The United States and partner stabilization measures focus on strengthening the central government and its security forces and on promoting reconstruction while combating the renewed insurgent challenge. As part of this effort, the international community has been running PRTs to secure reconstruction. Despite these efforts, weak provincial governance is seen as a key obstacle to a democratic Afghanistan and continues to pose a threat to reconstruction and stabilization efforts. The FY2008 Original and Amended Emergency Supplemental Request. The Administration requested $339 million in ESF for Afghanistan reconstruction assistance in the FY2008 emergency supplemental in February 2007. Other parts of the supplement request for Afghanistan included increases in embassy operations and security. The Administration amended the FY2008 supplemental request in October 2007 for a total request of $839 million for reconstruction, which 11 Prepared by Rhoda Margesson, Specialist in International Humanitarian Policy and Kenneth Katzman, Specialist in Middle Eastern Affairs. CRS-33 included several provisions intended to continue U.S. efforts to stabilize Afghanistan and continue economic reconstruction efforts.12 The amended supplemental included additional funding for democratic governance and reconstruction efforts to continue security and development strategy that would be allocated as follows: ! $275 million to strengthen provincial governance and responsiveness to the Afghan people. Funding would support a wide range of programs, preparation activities for the 2009 election and ongoing programs, such as the National Solidarity Program ($40 million), the Afghanistan Reconstruction Fund ($25 million), and the Provincial Governance Fund ($50 million); ! $50 million as part of an effort to invest in basic social services, such as health and education, particularly in rural areas; and ! $170 million for economic growth and infrastructure, including the development of power sector projects ($115 million); road projects ($50 million) focused on those segments that are of strategic military importance and provide key connections between the central and provincial government capitals; and funding to support Reconstruction Opportunity Zones ($5 million) in designated economically isolated areas and to create employment alternatives. In addition to ESF funding, the amended FY2008 request included ! $5 million in Non-proliferation, Anti-terrorism, Demining and Related Programs (NADR) to support the Afghan leadership through the Presidential Protection Service. The FY2008 consolidated appropriations act funded most government operations for which regular FY2008 appropriations bills -- 11 in all -- had not been enacted. Although emergency funds for military operations in Afghanistan were appropriated as part of the bridge supplemental in the consolidated appropriations act (which included $1.35 billion in DOD funds for Afghan security forces), the FY2008 supplemental request of $839 for reconstruction was not approved. The FY2009 Regular and Supplemental Request. The regular FY2009 Administration request for Afghanistan totals $1.054 billion. On May 2, 2008, the Administration issued an amendment to the regular FY2009 budget request which would provide supplemental funding for Afghanistan totaling $924.9 million, including $749.9 million for ESF and $175 million for INCLE. Congressional Action. The version of the supplemental appropriations bill approved by the House on June 19, by the Senate June 26, and then signed by the 12 Funding figures obtained from the FY2008 Revised Emergency Proposal dated October 22, 2007; the proposed Budget for Fiscal Year 2008 ("Additional 2007 and 2008 Proposals") submitted in February 2007; and the Supplemental Appropriations Justification Fiscal Year 2008 prepared by the Department of State and USAID. CRS-34 President June 30 provides $859 million for Afghanistan in FY2008 supplemental appropriations for ESF, which is $25 million above the request of $834 million, with allocations as follows: ! $360 million to strengthen governance, including preparation activities for the 2009 elections ($70 million), governance and capacity building ($165 million), support for the National Solidarity Program ($65 million), Civilian Assistance ($10 million), and PRTs ($50 million); ! $77 million for basic social services, such as health and education ($75 million) and NATO/ISAF Post-Operations Humanitarian Relief Fund ($2 million); and ! $422 million for economic growth and infrastructure, including power sector projects ($150 million), roads ($200 million), rural development ($65 million), and trade and investment ($7 million). In addition to ESF funding, the final supplemental bill includes ! $35 million for International Narcotics Control and Law Enforcement (INCLE) to support programs to strengthen narcotics eradication efforts in Afghanistan, including police training and development of the justice sector, with specific reporting requirements for the State Department to the Committees on Appropriations (not later than 180 days after the of this act) on levels of counternarcotics cooperation by the Government of Afghanistan; and ! $5 million in Non-proliferation, Anti-terrorism, Demining and Related Programs (NADR) to support the Afghan leadership through the Presidential Protection Service. For FY2009 the House,. Senate, and enacted bills provide $455 million for ESF assistance for Afghanistan, $294.9 million lower than requested. The enacted version of the bill specifies allocations of ! $20 million for the National Solidarity Program; ! not less than $35 million for the 2009 elections; and ! not less than $35 million for rural development and alternative livelihoods. The final bill also provides that funding "shall be programmed in a manner consistent with the Afghan National Development Strategy.13 The final bill does not include $175 million for INCLE, which was in the Administration's original request. 13 House Amendment to the Senate Amendment 2 to H.R. 2642, Further House Amendment Relating to Supplemental Appropriations for Fiscal Years 2008 and 2009. CRS-35 In addition, the enacted version of the bill provides $76.7 million for Afghanistan in the Embassy, Construction, and Maintenance account, as in earlier versions passed by the House and Senate. In addition, the final bill provides up to $5 million to be transferred to the Special Inspector General for Afghanistan Reconstruction for reconstruction oversight, which earlier House and Senate versions also had approved. Like earlier House and Senate versions, the enacted version of the bill also provides an additional amount of $41.3 million for Embassy Security, Construction, and Maintenance to become available on October 1, 2008. CRS-36 Table 7. Afghanistan Reconstruction Assistance, FY2008-FY2009 (millions of U.S. dollars) House Senate House Senate Total Final Second May15- May 22- Enacted May15- May 22- Enacted FY2008 Supp H.R. FY2008 passed passed June 30 FY2009 passed passed June 30 Activity Supp 2764 Supp FY2008 FY2008 FY2008 Supp FY2009 FY2009 FY2009 (appropriation account) Request PL110-161 Request Supp Supp Supp Request Supp Supp Supp Infrastructure aid (ESF) 834.0 -- 834.0 859.0 899.0 859.0 749.9 455.0 455.0 455.0 Nonproliferation (NADR) 5.0 -- 5.0 5.0 5.0 5.0 -- -- -- -- Int'l Narcotics Control (INCLE) 65.0 -- 35.0 175.0 -- -- -- Total 839.0 -- 839.0 929.0 904.0 899.0 924.9 455.0 455.0 455.0 Source: FY2008-FY2009 budget materials. Notes: Data in this table reflect ongoing and FY2008 proposed funding for programs the same as or similar to those requested in the FY2007 supplemental. The total line does not represent total aid or mission operations for Afghanistan. Excluded from this table is proposed funding requested for FBI operations in Afghanistan. Acronyms: ESF-Economic Support Fund, NADR-Nonproliferation, Anti-terrorism, Demining, and Related Programs, and INCLE-International Narcotics Control and Law Enforcement. CRS-37 Pakistan14 The Federally Administered Tribal Areas (FATA) of Pakistan are considered strategically important to combating terrorism, while continued terrorist and militant activities in the frontier region remain a threat to the United States and its interests in Afghanistan. The Government of Pakistan has developed a FATA Sustainable Development Plan to be implemented over 10 years. In support of this plan, the State Department and the U.S. Agency for International Development have put forward a five-year $750 million development assistance strategy for the frontier region (a pledge of $150 million per year) that complements the Government of Pakistan's plan.15 The U.S. objectives are to improve economic and social conditions in the FATA in order to address the region's use by terrorists and militants. Programs would include governance, health and education services, and economic development, such as agricultural productivity, infrastructure rehabilitation, credit, and vocational training. On November 3, 2007, President Musharraf imposed emergency rule and suspended Pakistan's constitution. In light of these events, the Administration announced a review of U.S. assistance. However, no action was taken in 2007 and in February 2008, Pakistan held what was reported to be a reasonably credible national election that seated a new civilian government. On April 9, 2008, Secretary of State Condoleezza Rice determined that a democratically elected government had taken office in Pakistan on March 25, 2008, which permitted the removal of coup- related sanctions on Pakistan and the resumption of assistance. The FY2008 Original and Amended Supplemental Request. In the FY2008 regular budget, the President asked for $90 million for the frontier region development plan, which left a gap of $60 million in the overall U.S. pledge of $150 million. The Administration did not request funding for Pakistan in its original FY2008 emergency supplemental request in February 2007. The October 2007 FY2008 amended supplemental request included $60 million for ESF. This would address the funding gap and meet the full pledge as follows: Investment in governance and planning ($13 million); health and education programs ($15 million); and local economic development ($32 million). The $60 million emergency supplemental request is in addition to the regular appropriations from various accounts in the FY2008 budget. The FY2009 Regular and Supplemental Request. The Administration requested $826.3 million for Pakistan in its regular FY2009 budget request. On May 2, 2008, the Administration requested additional FY2009 supplemental funds for Pakistan totaling $170.0 million, of which $70 million was in the Economic Support Fund account for "district elections support, good governance programs, and rural health and basic education initiatives in conflict regions outside of the Federally Administered Tribal Areas" and $100 million was in the Foreign Military Financing account for assistance "to reduce terrorist and militant activity in the 14 Prepared by Rhoda Margesson, Specialist in International Humanitarian Policy. 15 For more detail on Pakistan, see CRS Report RL33498, Pakistan-U.S. Relations, by K. Alan Kronstadt. CRS-38 Afghanistan-Pakistan border region including efforts to train and equip Pakistan's Frontier Corps." Congressional Action. The House May 15-passed bill provided no FY2008 supplemental funding for Pakistan, while the Senate May 22-passed bill provided the requested amount of $60 million for ESF for that year. The final enacted bill provides no funds for Pakistan in the FY2008 supplemental. For the FY2009 supplemental, the House May 15-passed bill included $175 million in ESF funds for Pakistan, and the Senate May 22-passed bill provided $150 million. The final bill provides $150 million in ESF funds for Pakistan in the FY2009 supplemental. Sudan16 FY2008 Supplemental Request. No funding was requested for Sudan in the original FY2008 emergency supplemental in February 2007. The Administration sought a total of $868.6 million for Sudan in the October 2007 emergency supplemental amendment, most of which was for humanitarian and peacekeeping support in the Darfur region. Major elements of the FY2008 amended emergency supplemental request included the following: ! A $70 million request in ESF for Sudan to support upcoming national elections that are to take place before July 2009, as determined in the 2005 Comprehensive Peace Agreement between north and south Sudan. The assistance will focus on strengthening political parties, drafting the electoral law, supporting an electoral commission, promoting civic education, and supporting election- related institutions and processes. The United Nations estimates that the elections could cost nearly $400 million because of the logistical hurdles in conducting elections in a post-conflict environment. $70 million remains in the pending FY2008 emergency supplemental; and ! $723.6 million in support of the African Union/United Nations Hybrid Operation in Darfur (UNAMID) in the amended FY2008 supplemental. In the consolidated appropriations act, $468 million was appropriated; $333.6 remains in the pending FY2008 emergency supplemental. FY2009 Regular and Supplemental Request. It the FY2009 regular foreign operations request, the Administration included a total of $332.6 million for Sudan. The May 2008 FY2009 supplemental request included funds for diplomatic security and for USAID operations in Sudan. Of a total of $1.1 billion requested for the Department of State for Diplomatic and Consular programs, $36 million was requested "for security and operational support in Sudan and Somalia, and to support 16 Prepared by Rhoda Margesson, Specialist in International Humanitarian Policy. CRS-39 several diplomatic Middle East Peace Missions."17 And of $60 million requested for USAID operational expenses, $2.9 million was request for operations in Sudan. Congressional Action. In the FY2008 consolidated appropriations act, P.L. 110-161, Sudan received $334.8 million in the regular FY2008 foreign operations budget and also $468 million for the African Union/United Nations Hybrid Operation in Darfur (UNAMID) peacekeeping mission. For FY2008 UNAMID operations, the House May 15, the Senate May 22, and the final enacted bills all provide $333.6 million in the State Department's U.S. Contributions to International Peacekeeping (CIPA) account. The final bill also provides $40.1 million "to meet unmet fiscal year 2008 assessed dues for the international peacekeeping missions to countries such as the Democratic Republic of the Congo, Cote d'Ivoire, Haiti, Liberia, and Sudan." The House, Senate, and final bills also provide $45 million for ESF assistance to Sudan for the FY2008 supplemental, less than the Administration's requested amount of $70 million. For the FY2009 supplemental, the Administration did not make a request for ESF funding for Sudan. Nevertheless, both House and Senate bills provided $25 million for ESF, and the final bill concurs. The enacted bill also provides $10 million in FY2008 and $10 million in FY2009, offset by equivalent rescissions, in the International Narcotics Control and Law Enforcement (INCLE) account to support police units in Sudan. And it includes $15 million in FY2009 funds for State Department Diplomatic and Consular Activities for personnel and security requirements in Sudan. In addition, a general provision, Section 1411, in the final bill provides that money appropriated earlier in the FY2008 consolidated appropriations act, P.L. 110- 161 or in previous appropriations bills, may be used to provide helicopters and related equipment to the African Union/United Nations peacekeeping operation in Darfur. 17 Office of Management and Budget, "FY 2009 Emergency Budget Amendments: Operation Iraqi Freedom, Operation Enduring Freedom, and Selected Other International Activities," May 20, 2008, p. 36. CRS-40 Table 8. Sudan Emergency Supplemental, FY2008-FY2009 (millions of U.S. dollars) FY2008 FY2008 FY2009 FY2009 Supp Supp Supp Supp FY2008 Final Pending May 15 May 22 FY2008 May 15 May 22 FY2009 Activity Supp. Supp. FY2008 House- Senate- Supp FY2009 House- Senate- Supp FY2009 (appropriation Request H.R. 2764 Supp. passed passed Enacted Supp. passed passed Enacted Regular account) Total PL110-161 Request HR2642 HR2642 HR2642 Request HR2642 HR2642 HR2642 Request Diplomatic and -- -- -- -- -- -- a -- -- 15.0 -- Consular Programs UNAMID (CIPAb ) 723.6 468.0 333.6 333.6 333.6 333.6 -- -- -- -- -- International Narcotics Control and Law -- -- -- -- -- 10.0 -- -- -- 10.0 -- Enforcement (INCLE) Economic Support 70.0 -- 70.0 45.0 45.0 45.0 -- 25.0 25.0 25.0 254.1 Fund (ESF) Total $868.6 $403.6 $378.6 $378.6 $388.6 -- $25.0 $25.0 $35.0 $332.6c Source: FY2008- FY2009 budget materials. Note: The Total line does not represent total aid or mission operations for Sudan. a. Request included $36 million for security and operational support in Somalia and Sudan and to support Middle East peace missions. b. CIPA-Contributions to International Peacekeeping Activities. c. Includes accounts for which supplementals were not requested. CRS-41 Other Humanitarian Assistance18 Although proposed aid packages for specific countries anticipate and identify some humanitarian needs, the Administration also seeks funding for what it describes as unmet or unforeseen humanitarian needs. Migration and Refugee Assistance (MRA). The Administration's FY2008 emergency supplemental request, as amended through October 2007, asked for $230 million for Migration and Refugee Assistance (MRA) for anticipated and unanticipated refugee and migration emergencies, of which $195 million was requested for humanitarian assistance to Iraqi refugees.19 In addition, $35 million was requested for the emergency needs of Palestinian refugees in Gaza and West Bank, and for Palestinian refugee camps in Lebanon. In the Consolidated Appropriations Act (P.L. 110-161), $200 million was appropriated for MRA of which $195 was allocated for Iraqi refugees, leaving $30 million (of the original $230 million request) as part of the pending FY2008 supplemental request for assistance to Iraqi refugees. The Administration requested $191 million in the FY2009 supplemental request. For the FY2008 supplemental, the June 30 enacted version of H.R. 2642 provides $315 million for MRA, which is $285 million above the request, to meet global refugee needs worldwide, including for Iraqi refugees in Jordan, Syria, Lebanon, Turkey, Egypt, and the region, and for Internally Displaced Persons (IDPs) in Iraq. These funds may also be used to support the admissions costs of Iraqi refugees and other requirements of the Iraqi refugee program. The amended bill raises concerns about the level of resources the Government of Iraq has so far dedicated to assisting Iraqi refugees and IDPs. The bill also refers to the welfare and security of the Lao Hmong in the Thai military camp in Petchaboon, northern Thailand. The final June 30 version of the bill also provides $350 million for MRA in the FY2009 supplemental, nearly 50% more than requested, to respond to urgent humanitarian and refugee admissions requirements, including assistance for refugees from Iraq, Afghanistan, and Central Africa. Emergency Refugee and Migration Assistance Fund (ERMA). The Administration did not request funding for ERMA in the FY2008 or FY2009 supplemental requests. For FY2008, the enacted legislation includes $31 million for ERMA, but it does not provide additional funds in FY2009. International Disaster Assistance (IDA). The Administration's regular FY2008 budget request included $80 million for IDA. In the Consolidated Appropriations Act (P.L. 110-161), $110 million was appropriated for emergency humanitarian assistance. The Administration's FY2008 supplemental request did not 18 Prepared by Rhoda Margesson, Specialist in International Humanitarian Policy. 19 This was an increase of $160 million for Iraqi refugees; $35 million was requested in the earlier version of the FY2008 emergency supplemental request. CRS-42 include funding for IDA. The Administration requested $45 million in its FY2009 supplemental request. For FY2008, the June 30 enacted version of H.R. 2642 includes $220 million for IDA for urgent humanitarian crises worldwide, including in Burma, Bangladesh, the People's Republic of China, and other countries affected by the ongoing food crisis. For FY2009, the bill includes $200 million for IDA for ongoing humanitarian needs in Bangladesh, Burma, and the People's Republic of China. In addition, some of these funds may be allocated to assist IDPs in Iraq and Afghanistan and be used in response to the international food crisis. Food Security and Food Aid The October 2007 amendment included $350 million in additional P.L. 480 - Title II assistance to meet emergency food needs in the Darfur region of Sudan and eastern Chad and elsewhere worldwide, including places such as southern Africa, and the Horn of Africa and Kenya. In April 2008, Senators Durbin and Casey proposed adding $200 million in response to recent global increases in food prices.20 On May 1, the President announced a new request for $770 million in FY2009 emergency supplemental funding for food-related international aid, including ! $395 million for P.L. 480 Title II emergency food assistance; ! $225 million for U.S. Agency for International Development (USAID) International Disaster Assistance (IDA), mainly for Africa, for local and regional procurement of food abroad and for other humanitarian needs created by high food prices; ! $150 million for the Development Assistance (DA) account for food security and improved production in insecure countries.21 The enacted legislation provides for P.L. 480 more than double ($850 million) the amount requested ($350 million) by the Administration for the FY2008 supplemental. Also, for FY2008 is an additional $20 million for food security assistance within DA or IDA accounts. For the FY2009 supplemental, the final bill provides $395 million for P.L. 480 and another $200 for other food security assistance. 20 Ben Schneider and Christian Bourge, "Durbin Eyes Additional Food Aid, Seeks Assist From Rice," National Journal Congress Daily AM, April 29, 2008. 21 White House Office of Management and Budget, "Estimate #2 -- FY2009 Emergency Budget Amendments: Operation Iraqi Freedom, Operation Enduring Freedom, and Selected Other International Activities," May 2, 2008, available online at [http://www.whitehouse.gov/omb/budget/amendments/amendment_5_2_08.pdf]. CRS-43 Mérida Initiative In its October 2007 supplemental budget amendment, the Administration included $550 million for the Mérida Initiative, a multi-year plan for U.S. counterdrug and anticrime assistance to Mexico and Central America. The initiative is aimed at helping the Mexican and Central American governments combat drug trafficking, gangs, and other criminal organizations. Of the $550 million in proposed supplemental assistance, Mexico would receive $500 million and Central America would receive $50 million.22 On May 14, 2008, the House Committee on Foreign Affairs approved a bill, H.R. 6028 (Berman), which would authorize $1.6 billion over three years, FY2008-FY2010, for the Mexico-Central America Mérida Initiative. In legislative action on H.R. 2642, the second FY2008 supplemental appropriations measure, the House May-15 passed version of the bill included $400 million for Mexico and $61.5 million for Central America, Haiti, and the Dominican Republic. The Senate version of H.R. 2642, as amended on May 22, 2008, provided $350 million for Mexico and $100 million for Central America, Haiti, and the Dominican Republic. Both versions had human rights conditions, some of which the Mexican government has objected to on the grounds that they would violate Mexico's national sovereignty. The final, June 30 enacted version of H.R. 2642 provides $465 million in FY2008 supplemental funding for the Mérida Initiative. Of that total, $400 million is for Mexico and $65 million (a slight increase from the earlier House bill) for Central America, Haiti, and the Dominican Republic. The compromise language in the House-amended bill reduces the amount of funding subject to human rights conditions, from 25% to 15%, and softens the language of those conditions. Domestic Programs In addition to funding for defense and international affairs, the Administration's original FY2008 supplemental request included a limited amount of funding for domestic programs, including counter-terrorism-related programs of the Justice Department particularly the FBI. Along with its regular FY2009 budget, the Administration requested emergency FY2009 appropriations of $5.8 billion for Gulf Coast hurricane protection measures carried out by the Corps of Engineers. Individual agencies, including the Census Bureau, the Federal Prison System, and the U.S. Marshals office, also reported shortfalls in funds to the appropriations committees. In action on the 2nd FY2008 supplemental, H.R. 2642, the House and Senate supplemental bills chambers provided requested funding for these programs. In addition, the Senate bill added $4.6 billion for hurricane and other disaster relief programs, $1.2 billion for a science R&D initiative across several agencies, $1 billion 22 See CRS Report RS22837, Merida Initiative: Proposed U.S. Anticrime and Counterdrug Assistance for Mexico and Central America, by Colleen W. Cook and Clare Ribando Seelke. CRS-44 for low income energy assistance, $590 million for state and local law enforcement grants, and $400 million for Secure Rural Schools. Also, most significantly, both the House and the Senate approved three major measures that the Administration did not request. The are ! an expansion of veterans' educational benefits, initially estimated to cost $52 billion over the next ten years; ! extended unemployment benefits, initially estimated to cost a total of about $11 billion over ten years, net of reduced payments in future years; and ! a moratorium on new Medicaid rules that would reduce payments to the states, for which the House and Senate supplemental bills include $450 million in FY2008 and $1.15 billion in FY2009. The Senate bill also provides $80 million in FY2008 and $75 million in FY2009 for increases in the SCHIP children's health insurance program net of offsetting savings from limiting Medicare payments to new specialty hospitals. The following sections provide background on some of the major congressional additions. Expansion of Montgomery GI Bill Education Benefits23 Both the House- and Senate-passed bills included provisions that would enhance veterans' educational benefits.24 The benefit enhancements were based on the Post- 9/11 Veterans Educational Assistance Act of 2008 (S. 22), sponsored by Senator Webb, which has broad bipartisan support, with 56 co-sponsors in the Senate; and the House companion bill, H.R. 5740, sponsored by Representative Mitchell, which has 261 cosponsors.25 S. 22 and H.R. 5740 would offer 36 months of tuition (limited to in-state tuition charged at the most expensive public institution in the state in which the veteran is enrolled), a monthly stipend to cover living expenses (based on average housing prices in the area in which the veteran is enrolled), and a $1,000 annual stipend for books and required educational expenses. Provisions for funds for tutorial assistance, licensing, and certification tests are also included. The bills would apply to active duty, Reserve, and National Guard members who serve some period of active duty 23 Prepared by Shannon Loane, Knowledge Services Group, Domestic Social Policy Consulting Section. 24 For information on the current Montgomery GI Bill provisions, see CRS Report RL33281, Montgomery GI Bill Education Benefits: Analysis of College Prices and Federal Student Aid Under the Higher Education Act, by Charmaine Mercer. 25 See Josh Rogin, "Spending Add-ons Could Make for Largest War Supplemental Bill Yet." CQ Today, April 18, 2008 CRS-45 beginning on or after September 11, 2001. Servicemembers and veterans who serve 36 months on active duty would be eligible for full benefits. Individuals who serve less than 36 months on active duty would be eligible for benefits calculated as a percentage of the total maximum benefits. The bills also establish a new program under which the government would match dollar for dollar (up to 50% of the tuition difference) any voluntary additional contributions to veterans from institutions whose tuition is more expensive than the maximum educational assistance provided under the bills. Differing views on the pros and cons of S. 22 were offered at a hearing before the Senate Committee on Veterans' Affairs on May 9, 2007. Senator Webb argued that S. 22 was comparable to the post-World War II GI bill, would lead to similar economic growth and expansion, and would also have a positive effect on military recruitment and on the readjustment experience of veterans.26 In the same hearing, Daniel Cooper, the Department of Veterans' Affairs (VA) Under Secretary for Benefits, stated the VA's opposition, criticizing the bill's complexity, cost, and administrative burden. He also argued that it might lead to lower rates of reenlistment in the military services.27 The Graham alternative. An alternative to S. 22 and H.R. 5740 was proposed by Senator Graham on April 29, 2008. S. 2938, the Enhancement of Recruitment, Retention, and Readjustment Through Education Act of 2008, proposed somewhat more limited increases in GI Bill educational benefits for servicemembers and veterans. For individuals with 12 or more years of active duty service, the benefits would be $1,650 per month in FY2009, in addition to a $500 annual stipend for books and supplies (for those attending on at least a half-time basis). As under the current Montgomery GI Bill (MGIB), servicemembers would have accept a pay reduction of $100 per month for the first 12 months of pay, the benefits would be for 36 months and would have to be used within 10 years of discharge or release from active duty, and provisions for tutorial assistance and licensing and certification tests are included. In addition, active duty servicemembers would be able to use up to $6,000 per year of educational benefits to repay federal student loans, and eligibility would be extended to certain individuals not currently eligible for MGIB, including service academy graduates and Senior Reserve Officers' Training Corps officers (under some conditions and with some stipulations). The bill also proposed a matching grants program, the `College Patriots Grant Program,' in which up to an additional $3,000 per year could be paid by the Department of Veterans Affairs in return for schools, through the use of institutional or other non-federal aid, making a matching reduction in cost of attendance for a servicemember. 26 Prepared Statement of Hon. Jim Webb, U.S. Senator from Virginia, Committee on Veterans' Affairs Hearing Regarding Pending Veterans' Benefits Legislation, May 9, 2007 (pp. 6-7) 27 Prepared Statement of Hon. Daniel L. Cooper, Under Secretary for Benefits, Department of Veterans Affairs, Committee on Veterans' Affairs Hearing Regarding Pending Veterans' Benefits Legislation, May 9, 2007 (p. 24) CRS-46 Additionally, S. 2938 included a transferability of benefits provision. Servicemembers would be allowed to transfer up to half of their education benefits to dependents after six years of service and to transfer all of their education benefits after 12 years of service. Under existing law, the different service branches were authorized to operate limited transferability programs, but only the Army offers one at this time. The Army's program allowed servicemembers in designated critical skills areas with at least six years of service who re-enlist for at least four years to transfer up to 18 months, or half, of their educational benefits to dependents. President Bush proposed expanding the transferability of veterans' educational benefits to dependents in his State of the Union address and repeated it in his May 8 address commemorating Military Spouse Day.28 PAYGO, Military Retention, and Transferability Issues. The GI bill enhancements became major issue in congressional consideration of the FY2008 supplemental, holding up action on the entire measure for some time. In the House, members of the Democratic "Blue Dog" caucus initially warned that they would not support a rule on the bill because the cost was not offset as the rules of the House required. At the beginning of the 110th Congress, the new Democratic majority agreed to changes in House rules to require that increases in mandatory spending or cuts in revenues be paid for either by cuts in other mandatory programs or by increases in revenues. These requirements, which are based on provisions initially included in the Budget Enforcement Act of 1990, are known as "pay as you go" or PAYGO rules. The House leadership subsequently agreed to support an income tax surcharge as an offset to the costs of the bill. The Senate, however, did not concur. In addition, the Defense Department was consistently critical of the Webb and Mitchell bill because of concern that it might weaken retention of military personnel. Because the bill would provide full benefits to servicemembers after as little as 36 months of service, DOD officials feared the program would encourage personnel to leave for college rather than to reenlist in the military. Secretary of Defense Gates raised these issues in an April 29 letter to Senator Levin and in a Pentagon press conference on May 8, at which Chairman of the Joint Chiefs, Admiral Michael Mullen, echoed his concerns.29 In the May 8 press conference, Secretary Gates and Admiral Mullen both emphasized their preference, as well, for a bill that would permit servicemembers to transfer educational benefits to family members. On May 6, President Bush 28 The FY2002 national defense authorization act provided the Defense Department with authority to allow transfers of current educational benefits to family members, and the provision has been tested in an Army pilot project, with, it appears, a relatively low use of the authority by military personnel. For a discussion, see Bart Jansen, Josh Rogin and Kathleen Hunter, "GOP Slips McCain's GI Bill Alternative into Play on Senate Floor," CQ Today Online, May 14, 2008. 29 Secretary of Defense Robert M. Gates and Chairman of the Joint Chiefs of Staff Navy Adm. Mike Mullen, "DoD Press Briefing," May 8, 2008, online at [http://www.defenselink.mil/ transcripts/transcript.aspx?transcriptid=4225]. CRS-47 announced that he was sending legislation to Congress to permit benefit transfers as well.30 Congressional Action. The May 15 House-passed version of the FY2008/FY2009 supplemental included expanded GI bill benefits as in the original Webb/Mitchell proposals. The bill also included a measure that would raise an estimated $52.3 billion in revenues through FY2008 by imposing a surcharge on the tax bills of individuals earning over $500,000 a year and couples earning over $1 million. The Senate approved a similar expansion of benefits in its May 22-passed version of the bill, but did not agree to an offsetting increase in revenues. Although House Blue Dog Democrats insisted on offsetting the cost of expanded GI Bill benefits it to the very end, the House leadership ultimately decided not to include offsets in the amendments brought to the floor on June 19 -- and only 12 Representatives voted against Amendment # 2 that included the GI Bill expansion. The final version of H.R. 2642, as passed by the House on June 19 and the Senate on June 26, includes a version of the initial Webb/Mitchell expansion of veterans educational benefits, with a provision added to allow benefits to be transferred to spouses or other dependents, as the White House had urged. The inclusion of a transfer provision increased the estimated cost by $11.6 billion, to a total of $63.8 billion from FY2008 through FY2018. Hurricane Katrina Repairs and Coastal Louisiana Restoration The Administration's FY2009 budget included a request for $5.761 billion in emergency supplemental funds for the Army Corps of Engineers for hurricane protection programs on the Gulf Coast. The Corps is responsible for much of the repair and fortification of the hurricane protection system of coastal Louisiana, particularly in the greater New Orleans area. Since Hurricane Katrina, most of the Corps' work on the region's hurricane protection system has been funded through emergency supplemental appropriations, not through the annual appropriations process. Congress has provided about $7 billion in emergency funding to date. The Administration estimated that the $7 billion in previously appropriated funds were insufficient to complete required measures because of increased costs, improved data on costs, and other factors. The Corps anticipated that available funds would be used by the end of FY2008, but that much remaining work was required to reduce the hurricane flooding risk to the New Orleans area to a 100-year level of protection (i.e., 1% probability of flooding in any given year) and to restore and complete hurricane protection in surrounding areas to previously authorized levels of protection by 2011.31 30 President George W. Bush, "President Bush Commemorates Military Spouse Day," The White House, May 6, 2008. 31 See CRS Report RL34417, Energy and Water Development: FY2009 Appropriations, by Carl E. Behrens, Coordinator, Anthony Andrews, David M. Bearden, Nicole T. Carter, Mark Holt, Nic Lane, Daniel Morgan, and Fred Sissine. CRS-48 Congressional Action. The House and Senate differed significantly on emergency funding for hurricane related programs. Both bills provided $5.761 billion in emergency FY2009 funding for the Corps of Engineers, as the Administration requested. The Senate-passed bill provided $4.6 billion in net additional funding for hurricane and other natural disaster-related programs. Senate additions included $3.0 billion more than requested for the Corps of Engineers, $500 million for wildland fire fighting, $451 million for the Emergency Highway Relief program, $350 million for emergency Medicare and Medicaid services, and $146 million, offset by rescissions, for housing programs and community development block grants. After the Senate approved its version of the supplemental on May 22, large rain storms caused extensive flooding in many parts of the Midwest. In response, the White House informally urged Congress to add $1.8 billion or more to the supplemental to replenish emergency accounts expected to be depleted by flood- related federal relief and recovery expenditures. The House added about $2.7 billion for flood relief to the June 19-passed version of the bill, which the Senate approved on June 26 and the President signed on June 30. The final bill did not, however, included the $4.6 billion that the Senate had added. The final bill provides $8.4 billion for disaster relief, as opposed to $5.8 billion in the request and the initial House bill and $10.4 billion in the Senate May 22-passed bill. The Census and Other Domestic Issues Several other, smaller domestic programs also received funding in the pending supplemental. Decennial Census. As a result of newly discovered difficulties with equipment planned to be used in various aspects of the 2010 Decennial Census, the Census Bureau faced substantial shortfalls in funding for FY2008. At hearings, the Secretary of Commerce stated that the shortfall for FY2008 would be between $160-$230 million, which the agency proposed to pay for through internal transfers within the Department of Commerce. Both the House- and Senate-passed supplemental bills provided $210 million in emergency FY2008 supplemental appropriations for the Bureau of the Census, and that amount is included in the final, enacted bill.32 Other additions. Other agencies also reported shortfalls of funds to the appropriations committees. The initial May 15 House-passed bill included $178 million to make up shortfalls in the federal prison system, and the May 22 Senate- passed bill included that amount and also added $50 million for the Federal Marshals Service and $275 million for Food and Drug Administration enforcement activities. The final, enacted bill includes $178 million for prisons and $150 million for the FDA. 32 Prepared by Royce Crocker, Government and Finance Division. CRS-49 Other Senate Additions of Funding for Domestic Programs In all, excluding FY2008 and FY2009 costs of extended unemployment compensation, enhanced GI Bill education benefits, and the delay of Medicaid rules, the May 15 House-passed bill included $6.6 billion for domestic programs, the May 22 Senate-passed bill $15.1 billion, and the final, enacted bill $10.3 billion. Of the Senate additions to the House bill, $4.6 billion was for disaster recovery programs. The remaining Senate additions included ! a $1.2 billion science initiative that provides $200 million for the NASA return to flight program, $200 million for the National Science Foundation, $400 million for Department of Energy defense and non-defense cleanup and science programs, and $400 million for the National Institutes of Health, ! $1 billion for the Low-Income Heating Emergency Assistance Program (LIHEAP); ! $590 million for state and local law enforcement assistance grants; ! $400 million for the Secure Rural Schools homeland security program. The final, enacted bill included $2.7 billion more than the initial request and the initial House bill for disaster recovery. That amount was for accounts expected to be used in response to Midwest floods. The final bill also added to the initial House bill $400 million for science programs, and, as noted earlier, $150 million for the Food and Drug Administration. In all, however, the final bill did not included nearly as much as the Senate bill for unrequested domestic programs. CRS-50 Appendix A. Status of FY2008 Supplemental Funding Through December 2007 Status of FY2008 Supplemental Funding During the first session of the 110th Congress, which ended on December 31, 2007, the Administration requested $196.5 billion in emergency supplemental appropriations for Fiscal Year (FY) 2008, including $189.3 billion for military operations, $6.9 billion for international affairs, and $325 million for other purposes. Through the end of December, Congress had approved $86.8 billion of the total requested for defense and $2.4 billion for international affairs, of which the State Department calculated that $1.5 billion was for requested programs. Of the President's total emergency request, $102.5 billion for defense and $5.4 billion for international affairs remained outstanding. For defense, much of the remaining requested funding was to repair, replace, and upgrade weapons and other equipment used in the war. For foreign operations, remaining funding included additional sums for reconstruction assistance to Iraq and Afghanistan and for a major new counter-narcotics initiative in Mexico and Central America. For State Department operations, outstanding requests included additional amounts for Diplomatic and Consular Program security upgrades and for Contributions to International Peacekeeping Activities in Darfur and elsewhere. Congressional Action on FY2008 Supplemental Appropriations Through December 2007 Administration Requests. Between February and October of 2007, the Administration submitted requests for FY2008 emergency supplemental appropriations in three blocks. ! Along with the regular FY2008 budget that the White House sent to Congress on February 5, 2007, the Administration requested $141.7 billion in emergency supplemental funding for the Defense Department, $3.3 billion for the State Department and international affairs, and $325 million for other agencies. By submitting the defense request along with the President's FY2008 budget, the Administration complied with Section 1008 of the FY2007 national defense authorization act (P.L. 109-364), which required the President's budget to included a request for estimated full year costs of operations in Iraq and Afghanistan and a detailed justification of the funds. The request constituted a Defense Department estimate of the full year costs of continuing operations in Iraq and Afghanistan at about the same pace as in 2006. The Defense Department acknowledged, however, that the estimate was only a rough, straight-line projection of current costs. By the time the budget was submitted, the Administration was proposing a surge in troops to Iraq that was not reflected in the budget, and it was expected that the Administration would later provide revised cost projections. These were submitted in October. CRS-51 ! On July 31, 2007,the White House requested an additional $5.3 billion for the Department of Defense to procure, outfit, and deploy 1,520 Mine Resistant Ambush Protected (MRAP) vehicles for the Army and Marine Corps.33 ! On October 22, 2007, the President proposed an amendment to the FY2008 budget requesting an additional $45.9 billion in emergency funding for military operations, economic and reconstruction assistance, embassy security, and other activities mainly related to ongoing conflicts in Iraq, Afghanistan, and elsewhere. The request included $42.3 billion for the Department of Defense for military operations and $3.6 billion for international affairs programs.34 In all, the Administration requested $195.6 billion in emergency supplemental appropriations for FY2008, mainly for military operations in Iraq, Afghanistan and elsewhere and for related foreign affairs programs. Congressional Action. Congressional action on FY2008 emergency supplemental funding began in earnest in September 2007 and was not completed until shortly before Christmas. ! At the end of September, Congress included $5.2 billion in emergency funding for Mine Resistant Ambush Protected (MRAP) vehicles ($5.3 billion was requested in July) in a provision attached to the first FY2008 continuing resolution, H.J.Res. 52, that the President signed on September 29, P.L. 110-92. ! On November 8, 2007, the House and Senate approved a conference agreement on the FY2008 defense appropriations bill, H.R. 3222,35 and the President signed the bill into law, P.L. 110-116, on November 13. The measure provided $460 billion for baseline Defense Department activities in FY2008, including $27.4 billion for Army and $4.8 billion for Marine Corps operation and maintenance, which may be used to finance both peacetime activities and military operations abroad. The bill also provided an additional 33 White House Office of Management and Budget, "Estimate #5 -- FY2008 Emergency Budget Amendments: Department of Defense (Global War on Terror -- Mine Resistant Ambush Protected Vehicles)," July 31, 2007 online at [http://www.whitehouse.gov/omb/ budget/amendments/amendment_7_31_07.pdf]. 34 For the overall request see White House Office of Management and Budget, "FY2008 Emergency Budget Amendments: Operation Iraqi Freedom, Operation Enduring Freedom, and Selected Other International Activities," October 22, 2007, online at [http://www .whitehouse.gov/omb/budget/amendments/amendment_10_22_07.pdf]. For an overview of the defense request, see Department of Defense, FY2008 Global War on Terror Amendment, October 2007, online at [http://www.defenselink.mil/comptroller/defbudget /fy2008/Supplemental/FY2008_October_Global_War_On_Terror_Amendment.pdf]. 35 See CRS Report RL33999, Defense: FY2008 Authorization and Appropriations, by Pat Towell, Stephen Daggett, and Amy Belasco. CRS-52 $11.6 billion in emergency funding for MRAP vehicles. Except for the MRAP money, however, the bill did not include funding to cover additional costs associated with ongoing military operations in Iraq, Afghanistan, and elsewhere. ! On November 14, 2007, by a vote of 218-203, the House approved the "Orderly and Responsible Iraq Redeployment Appropriations Act, 2008," H.R. 4156, providing $50 billion for U.S. military operations in Iraq, Afghanistan, and elsewhere. The bill included enough money in Army and Marine Corps operating accounts to sustain military operations in Iraq and elsewhere through about April 2008. It also (1) required the President to commence the withdrawal of U.S. forces from Iraq within 30 days of enactment of the legislation and to provide within 60 days a plan for withdrawing most troops from Iraq by December 15, 2008; (2) limited the mission of remaining U.S. forces in Iraq to force protection, training, and pursuit of international terrorists; (3) prohibited deployment of units that are not fully trained and equipped; and (4) extended prohibitions on torture to all U.S. government agencies. ! On November 16, 2007, by a vote of 53-45, with 60 votes required, the Senate refused to close debate on a motion to proceed to consideration of H.R. 4156 as passed by the House, effectively killing the measure. The Senate also rejected, by a vote of 45-53, a motion to proceed to consideration of H.R. 2340, a substitute offered by Senator McConnell, to provide $70 billion for the Defense Department without requiring withdrawal from Iraq. (Ultimately, however, with some revisions in the allocation of funds, the McConnell amendment was approved as part of the final consolidated appropriations act -- see below.) ! Meanwhile, in a November 15, 2007, Pentagon press conference, Secretary of Defense Robert Gates warned that the Army and Marine Corps would have to begin implementing steps to limit operations unless Congress approved additional funding very soon.36 Without additional money, he said, the Army would have to cease operations at all Army bases by mid-February 2008, which would require furloughs of about 100,000 government employees and a like number of contractor personnel. Plans would have to begin to be implemented in mid-December, he said. On November 20, the Defense Department announced that it was transferring $4.5 billion to the Army and to the Joint IED Defeat Organization to extend their operations. The Army, DOD said, would only be able to operate with available funds, including the transfer, until February 23, 2008. 36 Department of Defense, "DoD News Briefing with Secretary of Defense Gates and Chairman of the Joint Chiefs of Staff Adm. Mullen from the Pentagon Briefing Room, Arlington, Va.," November 15, 2007 at [http://www.defenselink.mil/transcripts /transcript.aspx?transcriptid=4089]. CRS-53 Senior defense officials continued to warn that the Army and Marine Corps would have to halt all but essential operations very soon unless Congress approved additional funding. ! On December 17, 2007, the House brought up the foreign operations appropriations bill, H.R. 2764, that had earlier been passed by the House and then amended by the Senate, as a vehicle for FY2008 "omnibus" or "consolidated" appropriations. The House approved two amendments to the Senate-passed bill. The first amendment, approved by a vote of 253-154, struck the Senate foreign operations language and inserted the text of conference agreements on 11 of the 12 FY2008 appropriations bills. In all, it provided $485 billion in regular and emergency appropriations for programs covered by all of the regular, annual appropriations bills except for defense, for which appropriations had already been enacted. The second amendment, approved by a vote of 206-201, provided $31 billion in emergency defense appropriations, mostly restricted to Operation Enduring Freedom (OEF), which encompasses operations in Afghanistan and elsewhere, excluding Iraq. Funding for Army and Marine Corps operation and maintenance was made available only for OEF, except for amounts for force protection that could be allocated to any area. ! On December 18, 2007, the Senate took up the House-passed consolidated appropriations bill and, by a vote of 70-25, adopted an amendment by Senator McConnell to delete the House-passed $31 billion for OEF and to provide, instead, $70 billion in emergency ! supplemental appropriations for the Department of Defense for overseas operations, without limits on where the money could be used and without requiring a withdrawal of forces from Iraq. ! On December 19, 2007, the House considered H.R. 2764 as amended by the Senate. By a vote of 272-142, the House approved a motion to agree to the Senate amendment to the House-passed bill, thus clearing the measure for the President. The President signed the bill into law, P.L. 110-161, on December 26. Remaining FY2008 and Additional FY2009 Defense Request The Administration requested a total of $189.3 billion in emergency FY2008 supplemental appropriations for the Department of Defense. Through December 2007, Congress had approved $86.8 billion, which leaves $102.5 billion still pending. Since December, the Defense Department has made some adjustments in its budget request. Table 1 shows by title and account (1) total FY2008 supplemental funding requested for DOD through the October 22, 2007, budget amendment; (2) the amount Congress has approved to date; (3) adjustments to the remaining amounts that the Defense Department proposed -- though not with a formal budget amendment -- as of the end of March, 2008, and (4) the remaining adjusted DOD budget request. CRS-54 In preparing a bill to provide remaining FY2008 defense funds, the congressional appropriations committees decided to add a "bridge fund" for FY2009 that would provide enough money to sustain both day-to-day peacetime activities and war-related operations until well into calendar year 2009. This would leave it to the next Administration to decide what it will request in total supplemental funding to cover war costs based on any planned changes in strategy. The committees discussed with the Defense Department how to allocate funds among accounts so as to sustain critical operations through about June of 2009. On May 2, the Office of Management and Budget formally sent Congress a request for $70 billion in FY2009 supplemental funding, of which $66 billion was for defense and intelligence and $4 billion was for international affairs. Along with the pending FY2008 supplemental request, Table A-1 shows the breakdown of the May 2 Administration request for a $66 billion defense bridge fund. CRS calculates that a bridge fund of about $57 billion, if allocated by account to maximize the amount of time critical operating accounts would last, could allow the services to operate through the end of July, 2009, at DOD's planned monthly rates of obligations.37 Table A-1. Remaining FY2008 and Additional FY2009 Supplemental Funding Requested for the Department of Defense (amounts in millions of dollars) Original FY2008 FY2008 Remaining FY2008 Enacted Remaining DOD Adjusted Amended through FY2008 Adjust- FY2008 FY2009 Request Dec. 2007 Request ment Request Request Military Personnel Military Personnel, Army 12,318 783 11,535 +329 11,864 3,500 Reserve Personnel, Army 299 -- 299 +9 309 -- National Guard Personnel, 1,137 -- 1,137 +420 1,557 -- Army Military Personnel, Navy 792 96 696 +6 702 95 Reserve Personnel, Navy 70 -- 70 +3 73 -- Military Personnel, Marine 1,790 56 1,734 +3 1,737 85 Corps Reserve Personnel, Marine 15 -- 15 +1 17 -- Corps Military Personnel, Air Force 1,416 138 1,278 +8 1,286 105 Reserve Personnel, Air Force 3 -- 3 +4 7 -- National Guard Personnel, -- -- -- -- -- 20 Army 37 The largest requirement, by far, would be for Army Operation and Maintenance. If monthly obligations for Army O&M, both for peacetime and for war-related operations, average $6.9 billion in FY2009, which is about the FY2008 rate, then the $31 billion requested for Army O&M in the base defense budget for FY2009 would last until about the middle of February, 2009. An additional $38 billion would be needed to sustain operations at the same rate through the end of July. CRS-55 Original FY2008 FY2008 Remaining FY2008 Enacted Remaining DOD Adjusted Amended through FY2008 Adjust- FY2008 FY2009 Request Dec. 2007 Request ment Request Request National Guard Personnel, Air -- -- -- +6 6 -- Force Total Military Personnel 17,840 1,072 16,767 +789 17,556 3,805 Operation and Maintenance O&M, Army 53,872 35,152 18,720 -1,577 17,143 35,560 O&M, Army Reserve 197 78 119 +38 157 -- O&M, Army National Guard 757 327 430 +383 813 -- O&M, Navy 6,163 3,664 2,499 +722 3,220 238 O&M, Marine Corps 4,272 3,966 306 +34 340 2,200 O&M, Navy Reserve 83 42 42 +66 108 -- O&M, Marine Corps Reserve 68 46 22 +1 23 34 O&M, Air Force 10,705 4,778 5,927 +830 6,758 3,644 O&M, Air Force Reserve 24 12 12 +150 162 -- O&M, Air National Guard 103 52 52 +234 285 -- O&M, Defense-Wide 5,337 2,117 3,220 +343 3,563 3,194 Office of the Inspector General 4 -- 4 -- 4 -- Drug Interdiction and Counter- 258 193 65 -- 65 130 Drug Activities, Defense Afghanistan Security Forces 2,700 1,350 1,350 -- 1,350 3,666 Fund Iraq Security Forces Fund 3,000 1,500 1,500 -- 1,500 2,000 Iraq Freedom Fund 3,851 3,747 104 +70 174 -- Defense Health Program 1,137 576 562 +197 759 -- Medical Support Fund -- -- -- -- -- 400 Total Operation and 92,533 57,599 34,934 +1,490 36,424 51,066 Maintenance Procurement Aircraft Procurement, Army 2,125 944 1,182 +15 1,196 -- Missile Procurement, Army 642 -- 642 -105 537 -- Procurement of W&TCV, Army 7,290 1,429 5,860 -289 5,571 -- Procurement of Ammunition, 514 154 360 -- 360 -- Army Other Procurement, Army 23,131 2,028 21,103 -4,410 16,693 80 Joint Impr Explosive Dev 4,269 4,269 -- -65 -65 2,970 Defeat Fund Aircraft Procurement, Navy 3,908 49 3,860 +191 4,050 -- Weapons Procurement, Navy 318 -- 318 -- 318 -- Procurement of Ammo, Navy & 610 305 305 -- 305 -- MC Other Procurement, Navy 1,607 91 1,515 -- 1,515 -- Procurement, Marine Corps 3,148 703 2,444 -- 2,444 -- Aircraft Procurement, Air Force 3,946 51 3,895 -- 3,895 1,209 Missile Procurement, Air Force 2 -- 2 -- 2 -- Procurement of Ammunition, 104 -- 104 -- 104 -- Air Force Other Procurement, Air Force 2,461 31 2,430 -- 2,430 1,468 Procurement, Defense-Wide 542 275 267 +8 275 73 Rapid Acquisition Fund 150 -- 150 -- 150 100 CRS-56 Original FY2008 FY2008 Remaining FY2008 Enacted Remaining DOD Adjusted Amended through FY2008 Adjust- FY2008 FY2009 Request Dec. 2007 Request ment Request Request Mine Resistant Ambush Prot 16,830 16,830 -- -- -- 2,610 Veh Fund Total Procurement 71,597 27,159 44,438 -4,657 39,781 8,511 Research, Development, Test and Evaluation RDT&E, Army 163 -- 163 +48 211 -- RDT&E, Navy 611 -- 611 +21 632 113 RDT&E, AF 1,487 -- 1,487 +62 1,549 72 RDT&E, DW 684 -- 684 +260 945 194 Total RDT&E 2,946 -- 2,946 +391 3,33 379 Military Construction Military Construction, Army 1,441 -- 1,441 +127 1,568 -- FY2005 BRAC - Army -- -- -- +560 560 -- Military Construction, Navy 238 -- 238 +95 332 -- FY2005 BRAC - Navy -- -- -- +97 97 -- Military Construction, Air Force 305 -- 305 +98 403 -- FY2005 BRAC - AF -- -- -- +129 129 -- Military Construction, Defense- 28 -- 28 -- 28 -- Wide FY2005 BRAC - Defense Wide 416 -- 416 -- 416 -- Total Military 2,427 -- 2,427 +1,107 3,534 -- Construction Family Housing Fam Housing Construction, 12 -- 12 -- 12 -- Navy & Marine Corps Total Family Housing 12 -- 12 -- 12 -- Revolving and Management Funds Working Capital Fund, Army 1,364 720 644 +6 651 -- Working Capital Fund, Navy 43 -- 43 +229 272 -- Working Capital Fund, Air 237 -- 237 +358 595 -- Force Working Capital Fund, Defense- 313 280 33 +287 320 2,200 Wide National Defense Sealift Fund 5 -- 5 -- 5 -- Total Revolving & 1,963 1,000 963 +880 1,843 2,200 Mngmnt Funds Other Non-DOD Intelligence FBI Counter-terrorism -- -- -- -- -- 39 Total Other Intelligence -- -- -- -- -- 39 Total Budget Authority 189,316 86,830 102,486 -- 102,486 66,000 Source: Department of Defense for FY2008 amounts, Office of Management and Budget, "FY2009 Emergency Budget Amendments: Operation Iraqi Freedom, Operation Enduring Freedom, and Selected Other International Activities," May 2, 2008. Notes: Further changes in request for Iraq Freedom Fund are pending. "BRAC" refers to Base Realignment and Closure. CRS-57 Appendix B. Summary Funding Tables Table B-1. Spring FY2008 and FY2009 Supplemental Appropriations: Request, House, and Senate Amounts by Account (amounts in thousands of dollars) House- Senate- Enacted Passed Passed June 30 May 15 May 22 H.R. 2642 Request H.R. 2642 H.R. 2642 P.L. 110-252 TITLE I: OTHER SECURITY, MILITARY CONSTRUCTION, AND INTERNATIONAL MATTERS CHAPTER 1 DEPARTMENT OF AGRICULTURE, Foreign Agricultural Service Public Law 480 Title II Grants (emergency) 350,000 850,000 850,000 850,000 Advance appropriation, FY2009 (emergency) 395,000 395,000 395,000 395,000 CHAPTER 2 DEPARTMENT OF JUSTICE General Administration, Inspector General -- 4,000 4,000 4,000 Legal Activities General Legal Activities, Salaries and Expenses 4,093 1,648 1,648 1,648 United States Attorneys, Salaries and Expenses 5,000 5,000 5,000 5,000 United States Marshals Service, Salaries and Expenses 14,921 18,621 18,621 28,621 Federal Bureau of Investigation Salaries and expenses (emergency) 101,122 92,169 164,965 106,122 Advance appropriation, FY2009 (emergency) 39,062 82,600 82,600 82,600 Drug Enforcement Administration, Salaries and Expenses 8,468 12,166 22,666 29,861 Bureau of Alcohol, Tobacco, Firearms and Explosives, Salaries and Expenses 4,000 4,000 4,000 4,000 Federal Prison System, Salaries and Expenses 9,100 9,100 9,100 9,100 CHAPTER 3 DEPARTMENT OF DEFENSE Military Construction Military construction, Army (emergency) 1,440,750 1,432,700 1,170,200 1,108,200 Military construction, Navy and Marine Corps (emergency) 237,505 423,357 300,084 355,907 Military construction, Air Force (emergency) 305,000 409,627 361,900 399,627 Military construction, Defense-Wide (emergency) 27,600 1,009,600 27,600 890,921 Family Housing Family housing construction, Navy and Marine Corps (emergency) 11,766 11,766 11,766 11,766 Base realignment and closure account, 2005 (emergency) 415,910 1,354,634 1,202,886 1,278,886 DEPARTMENT OF VETERANS AFFAIRS Departmental Administration -- 120,000 557,100 120,000 Construction, Major Projects -- -- -- 396,377 DEPARTMENT OF DEFENSE General Provisions, Military Construction Sec 1301 Child development centers, Army (emergency) -- -- 70,600 -- Sec 1302 Child development centers, Navy (emergency) -- -- 89,820 -- CRS-58 House- Senate- Enacted Passed Passed June 30 May 15 May 22 H.R. 2642 H.R. 2642 Request H.R. 2642 P.L. 110-252 Sec 1303 Child development centers, Air Force (emergency) -- -- 8,100 -- Sec 1304 Barracks improvements (emergency) -- -- 200,000 200,000 CHAPTER 4 SUBCHAPTER A -- SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2008 DEPARTMENT OF STATE Administration of Foreign Affairs Diplomatic and consular programs (emergency) 1,708,008 1,606,808 1,413,700 1,465,700 Office of Inspector General (emergency) -- 7,500 12,500 9,500 Educational and cultural exchange program (emergency) -- -- 10,000 -- Embassy security, construction, and maintenance (emergency) 160,000 76,700 76,700 76,700 International Organizations Contributions to international organizations (emergency) 53,000 53,000 66,000 66,000 Contributions for international peacekeeping activities, current year (emergency) 333,600 333,600 383,600 373,708 RELATED AGENCY Broadcasting Board of Governors International Broadcasting Operations (emergency) -- -- 3,000 2,000 BILATERAL ECONOMIC ASSISTANCE Funds Appropriated to the President International disaster assistance (emergency) -- 200,000 240,000 220,000 Operating expenses of the US Agency for International Development (emergency) 41,000 142,000 149,500 150,500 Operating expenses of the US Agency for International Development Office of Inspector General (emergency) -- 4,000 4,000 4,000 Other Bilateral Economic Assistance Economic support fund (emergency) 2,009,000 1,747,000 1,962,500 1,882,500 Department of State Democracy fund (emergency) -- 75,000 76,000 76,000 International narcotics control and law enforcement (emergency) 734,000 419,300 520,000 390,300 Migration and refugee assistance (emergency) 30,000 300,000 330,500 315,000 Emergency migration and refugee assistance (emergency) 5,000 25,000 36,608 31,000 Nonproliferation, anti-terrorism, demining and related programs (emergency) -- 11,200 10,000 13,700 Military Assistance Funds Appropriated to the President Foreign Military Financing Programs -- 72,500 -- 137,500 Peacekeeping operations (emergency) -- -- 10,000 -- General Provisions, Section 1407 /b/ World Food Program -- 20,000 -- -- Andean Counterdrug Initiative (rescission) -- -20,000 -- -- International narcotics control and law enforcement (Sudan) -- 10,000 -- -- International narcotics control and law enforcement (rescission) -- -10,000 -- -- CRS-59 House- Senate- Enacted Passed Passed June 30 May 15 May 22 H.R. 2642 Request H.R. 2642 H.R. 2642 P.L. 110-252 SUBCHAPTER B -- BRIDGE FUND APPROPRIATIONS FOR FISCAL YEAR 2009 DEPARTMENT OF STATE Administration of Foreign Affairs Diplomatic and consular programs (emergency) 1,064,500 737,900 652,400 704,900 Office of Inspector General 16,800 57,000 57,000 57,000 Embassy Security, construction and Maintenance -- 41,300 41,300 41,300 International Organizations Contributions to international organizations 40,000 75,000 75,000 75,000 Contributions for international peacekeeping activities, current year -- 150,500 150,500 150,500 RELATED AGENCY Broadcasting Board of Governors International Broadcasting Operations -- 8,000 6,000 6,000 BILATERAL ECONOMIC ASSISTANCE Funds Appropriated to the President Global Health and Child Survival -- 75,000 75,000 75,000 Development Assistance 210,000 200,000 200,000 200,000 International disaster assistance 270,000 200,000 200,000 200,000 Operating expenses of the US Agency for International Development 60,000 93,000 93,000 93,000 Operating expenses of the US Agency for International Development Office of Inspector General -- 1,000 1,000 1,000 Other Bilateral Economic Assistance Economic support fund 1,297,700 1,147,300 1,132,300 1,124,800 Department of State International narcotics control and law enforcement 225,000 204,500 151,000 199,000 Migration and refugee assistance 191,000 350,000 350,000 350,000 Nonproliferation, anti-terrorism, demining and related programs -- 4,000 4,500 4,500 MILITARY ASSISTANCE Funds Appropriated to the President Foreign Military Financing program grants 170,000 170,000 145,000 302,500 Peacekeeping operations 60,000 85,000 85,000 95,000 SUBCHAPTER C GENERAL PROVISIONS /c/ Sec 1410(a) Contribution to World Food Program -- -- 20,000 20,000 (Rescission) -- -- -20,000 -20,000 Sec 1410(b) Sudan -- -- 10,000 10,000 (Rescission) -- -- -10,000 -10,000 Sec 1410(c) Mexico IRRF (rescission of emergency appropriations) -- -- -50,000 -50,000 Sec 1410(d) Horn of Africa -- -- 40,000 -- Rescission of emergency appropriations -- -- -40,000 -- Sec 1412 Food Security and Cyclone relief -- -- 225,000 -- (Rescission) -- -- -225,000 -- Sec 1414 Jordan -- -- 300,000 58,000 (Rescission) -- -- -300,000 -58,000 Section 1408 Buying Power Maintenance (transfer) -- -- -- [74,000] CRS-60 House- Senate- Enacted Passed Passed June 30 May 15 May 22 H.R. 2642 Request H.R. 2642 H.R. 2642 P.L. 110-252 GENERAL PROVISIONS, TITLE I Rescission, DHS Customs and Border Security -50,000 -- -- -- Total, Title I 11,997,855 14,909,096 14,231,264 15,121,244 Defense 2,438,531 4,641,684 3,442,956 4,245,307 International Affairs 9,423,558 9,918,608 9,918,608 10,088,608 Domestic 135,766 349,304 869,700 787,329 TITLE II: DOMESTIC MATTERS CHAPTER 1 DEPARTMENT OF HEALTH AND HUMAN SERVICES Food and Drug Administration -- -- 275,000 150,000 Chapter 2 (Senate)/Chapter 1 (House) DEPARTMENT OF COMMERCE Bureau of the Census -- 210,000 210,000 210,000 DEPARTMENT OF JUSTICE United States Marshals Service, Salaries and Expenses -- -- 50,000 -- Federal Prison System, Salaries and Expenses -- 178,000 178,000 178,000 State and Local Law Enforcement Assistance -- 590,000 -- SCIENCE NASA, Return to Flight -- -- 200,000 62,500 National Science Foundation -- -- 200,000 62,500 Chapter 3 DEPARTMENT OF ENERGY Non-Defense Energy Programs, Cleanup and Science -- -- 157,000 62,500 Defense Environmental Cleanup -- -- 243,000 62,500 Chapter 4 General Provision, Small Business Administration -- -- 600 -- Chapter 5 DEPARTMENT OF THE INTERIOR, Secure Rural Schools -- -- 400,000 -- Chapter 6 (Senate)/Chapter 3 (House) DEPARTMENT OF LABOR, State Unemployment Insurance -- 110,000 110,000 110,000 DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for Disease Control, Research and Training -- -- 26,000 -- National Institutes of Health -- -- 400,000 150,000 General Provisions, Low-Income Energy Assistance (LIHEAP) -- -- 1,000,000 -- Chapter 4 (House) House of Representatives, Payments to Widows and Heirs -- 169 -- 169 Chapter 7 American Battle Monuments Commission, Foreign Currency Account -- -- 10,000 -- CRS-61 House- Senate- Enacted Passed Passed June 30 May 15 May 22 H.R. 2642 Request H.R. 2642 H.R. 2642 P.L. 110-252 Total, Title II -- 498,169 4,049,600 1,048,169 Defense -- -- 243,000 62,500 International Affairs -- -- -- -- Domestic -- 498,169 3,806,600 985,669 TITLE III: NATURAL DISASTER RELIEF AND RECOVERY Chapter 1 DEPARTMENT OF AGRICULTURE Emergency Conservation Program -- -- 49,413 89,413 Emergency Watershed Protection Program -- -- 130,464 390,464 Sec 3101 RUS/Rural Electric and Telecommunication Loans -- -- 1,000 (Rescission of emergency appropriations) -- -- -1,000 Chapter 2 DEPARTMENT OF COMMERCE Economic Development Assistance Programs -- -- 75,000 100,000 National Oceanic and Atmospheric Administration -- -- 75,000 DEPARTMENT OF JUSTICE State and Local Law Enforcement Assistance -- -- 75,000 Chapter 3 Corps of Engineers Construction, General -- -- 66,600 61,700 Advance appropriation, FY2009 2,835,000 2,835,000 4,966,745 2,835,000 Mississippi river and tributaries -- -- 17,700 17,590 Operations and Maintenance -- -- 338,800 298,344 Flood Control and Coastal Emergencies -- -- 94,400 226,855 Advance appropriation, FY2009 2,926,000 2,926,000 3,274,000 2,926,000 General expenses -- -- 1,500 1,500 Chapter 4 SMALL BUSINESS ADMINISTRATION Disaster Loans Program Account, Midwestern States -- -- -- 266,753 Chapter 5 FEDERAL EMERGENCY MANAGEMENT AGENCY Disaster Relief -- -- -- 897,000 Chapter 6 DEPARTMENT OF THE INTERIOR Bureau of Land Management, Wildland Fire Management -- -- 125,000 -- National Park Service, Historic Preservation Fund -- -- 15,000 -- EPA, State and Tribal Assistance Grants -- -- 5,000 -- DEPARTMENT OF AGRICULTURE Forest Service, Wildland Fire Management -- -- 325,000 -- Chapter 7 DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for Medicare and Medicaid Services -- -- 350,000 -- Chapter 8 DEPARTMENT OF DEFENSE Military Construction Army National Guard -- -- 11,503 -- CRS-62 House- Senate- Enacted Passed Passed June 30 May 15 May 22 H.R. 2642 Request H.R. 2642 H.R. 2642 P.L. 110-252 (Rescission of emergency appropriations) -- -- -7,000 -- General Provision, Sec. 3801 Family Housing Navy (emergency -- -- 10,500 -- Chapter 9 Emergency Highway Relief Program -- -- 451,126 -- Department of Housing and Urban Development Permanent Supportive Housing -- -- 73,000 73,000 Housing transition assistance -- -- 3,000 -- Project-based rental assistance -- -- 20,000 -- Community Development Block Fund -- -- 50,000 300,000 Louisiana Road Home (rescission of emergency funds) -- -- -200,000 -- Total, Title III 5,761,000 5,761,000 10,396,751 8,483,619 Defense -- -- 15,003 -- International Affairs -- -- -- -- Domestic 5,761,000 5,761,000 10,381,748 8,483,619 Title IV (House)/Title V (Senate): EMERGENCY UNEMPLOYMENT COMPENSATION Emergency unemployment compensation, FY2008 -- 6,170,000 6,170,000 4,790,000 Emergency unemployment compensation, FY2009 -- 9,440,000 9,440,000 7,765,000 Total, Title IV -- 15,610,000 15,610,000 12,555,000 Defense -- -- -- -- International Affairs -- -- -- -- Domestic -- 15,610,000 15,610,000 12,555,000 TITLE V (House)/Title IV (Senate): VETERANS EDUCATIONAL ASSISTANCE Veterans educational assistance, FY2008 -- 40,000 40,000 50,000 Veterans educational assistance, FY2009 -- 676,000 677,000 746,000 Total, Title V -- 716,000 717,000 796,000 Defense -- -- -- -- International Affairs -- -- -- -- Domestic -- 716,000 717,000 796,000 TITLE VII (House)/Title VI (Senate): MEDICAID PROVISIONS Medicaid Moratorium, FY2008 -- 450,000 -- 305,000 Medicaid Moratorium, FY2009 -- 1,150,000 -- 805,000 Medicaid, Medicare and SCHIP provisions, FY2008 -- -- 530,000 -- Medicaid, Medicare and SCHIP provisions, FY2009 -- -- 1,225,000 -- Total, Title VII -- 1,600,000 1,755,000 1,110,000 Defense -- -- -- -- International Affairs -- -- -- -- Domestic -- 1,600,000 1,755,000 1,110,000 CRS-63 House- Senate- Enacted Passed Passed June 30 May 15 May 22 H.R. 2642 Request H.R. 2642 H.R. 2642 P.L. 110-252 Title VIII: GENERAL PROVISIONS Reduction in FY2008 Defense Procurement, R&D, Working Capital Funds -- -- -- -3,577,845 Total, Title VIII -- -- -- -3,577,845 Defense -- -- -- -3,577,845 International Affairs -- -- -- -- Domestic -- -- -- -- TITLE IX: DEFENSE MATTERS CHAPTER 1 DEFENSE SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2008 Military Personnel Military Personnel, Army 11,535,055 -- 12,216,715 12,216,715 Military Personnel, Navy 696,053 -- 894,185 894,185 Military Personnel, Marine Corps 1,733,971 -- 1,826,688 1,826,688 Military Personnel, Air Force 1,277,853 -- 1,355,544 1,355,544 Reserve Personnel, Army 299,200 -- 304,200 304,200 Reserve Personnel, Navy 70,000 -- 72,800 72,800 Reserve Personnel, Marine Corps 15,420 -- 16,720 16,720 Reserve Personnel, Air Force 3,000 -- 5,000 5,000 National Guard Personnel, Army 1,136,747 -- 1,369,747 1,369,747 National Guard Personnel, Air Force -- -- 4,000 4,000 Total, Military Personnel 16,767,299 -- 18,065,599 18,065,599 Operation and Maintenance Operation & Maintenance, Army 18,712,468 -- 17,223,512 17,223,512 Operation & Maintenance, Navy 2,498,765 -- 2,977,864 2,977,864 (Transfer out) [-115,400] -- [-112,607] [-112,607] Operation & Maintenance, Marine Corps 306,050 -- 159,900 159,900 Operation & Maintenance, Air Force 5,924,865 -- 5,972,520 5,972,520 Operation & Maintenance, Defense-Wide 3,152,933 -- 3,657,562 3,657,562 Operation & Maintenance, Army Reserve 118,958 -- 164,839 164,839 Operation & Maintenance, Navy Reserve 41,750 -- 109,876 109,876 Operation & Maintenance, Marine Corps Reserve 22,040 -- 70,256 70,256 Operation & Maintenance, Air Force Reserve 12,133 -- 165,994 165,994 Operation & Maintenance, Army National Guard 430,008 -- 685,644 685,644 Operation & Maintenance, Air National Guard 51,633 -- 287,369 287,369 Subtotal, Operation and Maintenance 31,271,603 -- 31,475,336 31,475,336 Iraq Freedom Fund 207,500 -- 50,000 50,000 Afghanistan Security Forces Fund 1,350,000 -- 1,400,000 1,400,000 Iraq Security Forces Fund 1,500,000 -- 1,500,000 1,500,000 Subtotal, Other 3,057,500 -- 2,950,000 2,950,000 Total, Operation and Maintenance 34,329,103 -- 34,425,336 34,425,336 Procurement Aircraft Procurement, Army 1,181,864 -- 954,111 954,111 Missile Procurement, Army 641,764 -- 561,656 561,656 Procurement of Weapons and Tracked Combat Vehicles, Army 5,860,252 -- 5,463,471 5,463,471 Procurement of Ammunition, Army 359,600 -- 344,900 344,900 Other Procurement, Army 21,103,261 -- 16,337,340 16,337,340 Aircraft Procurement, Navy 3,859,958 -- 3,563,254 3,563,254 Weapons Procurement, Navy 318,281 -- 317,456 317,456 CRS-64 House- Senate- Enacted Passed Passed June 30 May 15 May 22 H.R. 2642 H.R. 2642 Request H.R. 2642 P.L. 110-252 Procurement of Ammunition, Navy and Marine Corps 304,945 -- 304,945 304,945 Other Procurement, Navy 1,515,116 -- 1,399,135 1,399,135 Procurement, Marine Corps 2,444,490 -- 2,197,390 2,197,390 Aircraft Procurement, Air Force 3,894,839 -- 7,103,923 7,103,923 Missile Procurement, Air Force 1,800 -- 66,943 66,943 Procurement of Ammunition, Air Force 104,405 -- 205,455 205,455 Other Procurement, Air Force 2,405,034 -- 1,953,167 1,953,167 Procurement, Defense-Wide 266,237 -- 408,209 408,209 National Guard and Reserve Equipment -- -- 825,000 825,000 Rapid Acquisition Fund 150,000 -- Total, Procurement 44,411,846 -- 42,006,355 42,006,355 Research, Development, Test and Evaluation Research, Development, Test & Evaluation, Army 163,299 -- 162,958 162,958 Research, Development, Test & Evaluation, Navy 610,567 -- 366,110 366,110 Research, Development, Test & Evaluation, Air Force 1,487,493 -- 399,817 399,817 Research, Development, Test and Evaluation, Defense-Wide 684,389 -- 816,598 816,598 Total, Research, Development, Test and Evaluation 2,945,748 -- 1,745,483 1,745,483 Revolving and Management Funds Defense Working Capital Funds 957,675 1,837,450 1,837,450 National Defense Sealift Fund 5,110 5,110 5,110 Total, Revolving and Management Funds 962,785 1,842,560 1,842,560 Other Department of Defense Programs Defense Health Program 561,741 -- 1,413,864 1,413,864 Psychological health and traumatic brain injury -- -- 75,000 75,000 Drug Interdiction and Counter-Drug Activities, Defense 65,017 -- 65,317 65,317 Office of the Inspector General 4,394 -- 6,394 6,394 Total, Other Department of Defense Programs 631,152 -- 1,560,575 1,560,575 General Provisions Sec 11103 Additional transfer authority -- -- [2,500,000] [2,500,000] Sec 11105 Defense Cooperation Account (transfer authority) 6,500 -- 6,500 6,500 Total, General Provisions 6,500 -- 6,500 6,500 Total, Chapter 1: FY2008 SUPPLEMENTAL APPROPRIATIONS 100,054,433 -- 99,652,408 99,652,408 Chapter 2 DEFENSE BRIDGE FUND APPROPRIATIONS FOR FISCAL YEAR 2009 DEPARTMENT OF DEFENSE -- MILITARY Military Personnel Military Personnel, Army 3,500,000 -- 839,000 839,000 Military Personnel, Navy 95,000 -- 75,000 75,000 Military Personnel, Marine Corps 85,000 -- 55,000 55,000 Military Personnel, Air Force 105,000 -- 75,000 75,000 National Guard Personnel, Army 20,000 -- 150,000 150,000 Total, Military Personnel 3,805,000 -- 1,194,000 1,194,000 CRS-65 House- Senate- Enacted Passed Passed June 30 May 15 May 22 H.R. 2642 Request H.R. 2642 H.R. 2642 P.L. 110-252 Operation and Maintenance Operation & Maintenance, Army 35,560,055 -- 37,300,000 37,300,000 Operation & Maintenance, Navy 238,437 -- 3,500,000 3,500,000 (Transfer out) [-200,000] -- [-112,000 ] [-112,000 ] Operation & Maintenance, Marine Corps 2,200,000 -- 2,900,000 2,900,000 Operation & Maintenance, Air Force 3,644,078 -- 5,000,000 5,000,000 Operation & Maintenance, Defense-Wide 3,193,494 -- 2,648,569 2,648,569 Operation & Maintenance, Army Reserve -- -- 79,291 79,291 Operation & Maintenance, Navy Reserve -- -- 42,490 42,490 Operation & Maintenance, Marine Corps Reserve 34,000 -- 47,076 47,076 Operation & Maintenance, Air Force Reserve -- -- 12,376 12,376 Operation & Maintenance, Army National Guard -- -- 333,540 333,540 Operation & Maintenance, Air National Guard -- -- 52,667 52,667 Subtotal, Operation and Maintenance 44,870,064 -- 51,916,009 51,916,009 Afghanistan Security Forces Fund 3,666,259 -- 2,000,000 2,000,000 Iraq Security Forces Fund 2,000,000 -- 1,000,000 1,000,000 Total, Operation and Maintenance 50,536,323 -- 54,916,009 54,916,009 Procurement Aircraft Procurement, Army -- -- 84,000 84,000 Procurement of Weapons and Tracked Combat Vehicles, Army -- -- 822,674 822,674 Procurement of Ammunition, Army -- -- 46,500 46,500 Other Procurement, Army 80,536 -- 1,009,050 1,009,050 Other Procurement, Navy -- -- 27,948 27,948 Procurement, Marine Corps -- -- 565,425 565,425 Aircraft Procurement, Air Force 1,209,300 -- 201,842 201,842 Other Procurement, Air Force 1,467,475 -- 1,500,644 1,500,644 Procurement, Defense-Wide 72,733 -- 177,237 177,237 Rapid Acquisition fund 100,000 -- -- -- Total, Procurement 2,930,044 -- 4,435,320 4,435,320 Research, Development, Test and Evaluation Research, Development, Test & Evaluation, Navy 113,228 -- 113,228 113,228 Research, Development, Test & Evaluation, Air Force 71,741 -- 72,041 72,041 Research, Development, Test and Evaluation, Defense-Wide 194,156 -- 202,559 202,559 Total, Research, Development, Test and Evaluation 379,125 -- 387,828 387,828 Revolving and Management Funds Defense Working Capital Funds 2,200,000 -- -- -- Total, Revolving and Management Funds 2,200,000 -- -- -- Other Department of Defense Programs Defense Health Program 400,000 -- 1,100,000 1,100,000 Drug Interdiction and Counter-Drug Activities, Defense 130,000 -- 188,000 188,000 Joint Improvised Explosive Device Defeat fund 2,970,444 -- 2,000,000 2,000,000 Total, Other Department of Defenses Programs 3,500,444 -- 3,288,000 3,288,000 General Provisions Sec 11203 Transfer authority [4,000,000] -- [4,000,000] [4,000,000] Sec 11208 Mine Resistant Ambush Protected Vehicle fund 2,610,000 -- 1,700,000 1,700,000 CRS-66 House- Senate- Enacted Passed Passed June 30 May 15 May 22 H.R. 2642 Request H.R. 2642 H.R. 2642 P.L. 110-252 Total, General Provisions 2,610,000 -- 1,700,000 1,700,000 Total, Chapter 2: FY2009 BRIDGE FUND APPROPRIATIONS 65,960,936 -- 65,921,157 65,921,157 Chapter 3 General Provision Sec 11308 rescission of emergency appropriations -- -- -146,531 -146,531 Total, Title IX 166,015,369 -- 165,427,034 165,427,034 Defense 166,015,369 -- 165,427,034 165,427,034 International Affairs -- -- -- -- Domestic -- -- -- -- Sources: Request and Senate amounts from Senate Appropriations Committee, "FY2008 Supplemental Explanatory Material," May 20, 2008, on line at [http://appropriations.senate.gov/]; House May 15 amounts by CRS based on explanatory material prepared by the House Appropriations Committee and distributed on May 15, 2008, by the House Rules Committee on line at [http://www.rules.house.gov/announcement_details.aspx?NewsID=3333]. House June 19 amounts from House Appropriations Committee text of the House amendment, explanatory material, and appropriations tables in the Congressional Record, June 19, 2008, pp. H5622-H5699. Totals by category are calculated by CRS. Notes: Amounts may not add due to rounding. All totals shown are net of offsetting rescissions. CRS-67 Table B-2. Memorandum: Un-passed House Leadership Bill Defense Funding Compared to Request and Senate-Passed Bill (amounts in thousands of dollars) House Leadership Senate- Bill Passed Senate vs Request May 15 May 22 House TITLE IX: DEFENSE MATTERS CHAPTER 1 DEFENSE SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2008 Military Personnel Military Personnel, Army 11,535,055 11,807,655 12,216,715 +409,060 Military Personnel, Navy 696,053 866,753 894,185 +27,432 Military Personnel, Marine Corps 1,733,971 1,820,571 1,826,688 +6,117 Military Personnel, Air Force 1,277,853 1,286,153 1,355,544 +69,391 Reserve Personnel, Army 299,200 304,200 304,200 -- Reserve Personnel, Navy 70,000 72,800 72,800 -- Reserve Personnel, Marine Corps 15,420 16,720 16,720 -- Reserve Personnel, Air Force 3,000 5,000 5,000 -- National Guard Personnel, Army 1,136,747 1,369,747 1,369,747 -- National Guard Personnel, Air Force 4,000 4,000 -- Total, Military Personnel 16,767,299 17,553,599 18,065,599 +512,000 Operation and Maintenance Operation & Maintenance, Army 18,712,468 16,343,512 17,223,512 +880,000 Operation & Maintenance, Navy 2,498,765 2,952,864 2,977,864 +25,000 (Transfer out) [-115,400] [-112,607] [-112,607] -- Operation & Maintenance, Marine Corps 306,050 159,900 159,900 -- Operation & Maintenance, Air Force 5,924,865 5,922,520 5,972,520 +50,000 Operation & Maintenance, Defense-Wide 3,152,933 3,387,562 3,657,562 +270,000 Operation & Maintenance, Army Reserve 118,958 164,839 164,839 -- Operation & Maintenance, Navy Reserve 41,750 109,876 109,876 -- Operation & Maintenance, Marine Corps Reserve 22,040 70,256 70,256 -- Operation & Maintenance, Air Force Reserve 12,133 165,994 165,994 -- Operation & Maintenance, Army National Guard 430,008 685,633 685,644 +11 Operation & Maintenance, Air National Guard 51,633 287,369 287,369 -- Subtotal, Operation and Maintenance 31,271,603 30,250,325 31,475,336 +1,225,011 Iraq Freedom Fund 207,500 50,000 50,000 -- Afghanistan Security Forces Fund 1,350,000 1,400,000 1,400,000 -- Iraq Security Forces Fund 1,500,000 1,500,000 1,500,000 -- Subtotal, Other 3,057,500 2,950,000 2,950,000 -- Total, Operation and Maintenance 34,329,103 33,200,325 34,425,336 +1,225,011 Procurement Aircraft Procurement, Army 1,181,864 954,111 954,111 -- Missile Procurement, Army 641,764 561,656 561,656 -- Procurement of Weapons and Tracked Combat Vehicles, Army 5,860,252 5,393,471 5,463,471 +70,000 Procurement of Ammunition, Army 359,600 344,900 344,900 -- Other Procurement, Army 21,103,261 15,967,340 16,337,340 +370,000 Aircraft Procurement, Navy 3,859,958 3,411,254 3,563,254 +152,000 Weapons Procurement, Navy 318,281 317,456 317,456 -- Procurement of Ammunition, Navy and Marine Corps 304,945 304,945 304,945 -- Other Procurement, Navy 1,515,116 1,260,135 1,399,135 +139,000 Procurement, Marine Corps 2,444,490 2,153,390 2,197,390 +44,000 CRS-68 House Leadership Senate- Bill Passed Senate vs Request May 15 May 22 House Aircraft Procurement, Air Force 3,894,839 7,028,563 7,103,923 +75,360 Missile Procurement, Air Force 1,800 66,943 66,943 -- Procurement of Ammunition, Air Force 104,405 205,455 205,455 -- Other Procurement, Air Force 2,405,034 1,903,167 1,953,167 +50,000 Procurement, Defense-Wide 266,237 408,209 408,209 -- National Guard and Reserve Equipment 750,000 825,000 +75,000 Rapid Acquisition Fund 150,000 -- Total, Procurement 44,411,846 41,030,995 42,006,355 +975,360 Research, Development, Test and Evaluation Research, Development, Test & Evaluation, Army 163,299 162,958 162,958 -- Research, Development, Test & Evaluation, Navy 610,567 366,110 366,110 -- Research, Development, Test & Evaluation, Air Force 1,487,493 278,427 399,817 +121,390 Research, Development, Test and Evaluation, Defense-Wide 684,389 816,598 816,598 -- Total, Research, Development, Test and Evaluation 2,945,748 1,624,093 1,745,483 +121,390 Revolving and Management Funds Defense Working Capital Funds 957,675 1,837,450 1,837,450 -- National Defense Sealift Fund 5,110 5,110 5,110 -- Total, Revolving and Management Funds 962,785 1,842,560 1,842,560 -- Other Department of Defense Programs -- Defense Health Program 561,741 1,363,864 1,413,864 +50,000 Operation and maintenance [561,741] [907,063] [957,064] -- Procurement -- [91,900] [91,900] -- Research Development and Testing -- [363,900] [365,900] -- Psychological health and traumatic brain injury -- 75,000 75,000 -- Drug Interdiction and Counter-Drug Activities, Defense 65,017 65,317 65,317 -- Office of the Inspector General 4,394 6,394 6,394 -- Total, Other Department of Defense Programs 631,152 1,510,575 1,560,575 +50,000 General Provisions -- Sec 11103 Additional transfer authority -- [2,500,500] [2,500,000] -- Sec 11105 Defense Cooperation Account (transfer authority) 6,500 6,500 6,500 -- Rescissions of emergency funds -- -146,531 -- +146,531 Total, General Provisions 6,500 -140,031 6,500 +146,531 Total, Chapter 1: FY2008 Appropriations 100,054,433 96,622,116 99,652,408 +3,030,292 Chapter 2 DEFENSE BRIDGE FUND APPROPRIATIONS FOR FISCAL YEAR 2009 Military Personnel Military Personnel, Army 3,500,000 839,000 839,000 -- Military Personnel, Navy 95,000 75,000 75,000 -- Military Personnel, Marine Corps 85,000 55,000 55,000 -- Military Personnel, Air Force 105,000 75,000 75,000 -- National Guard Personnel, Army 20,000 150,000 150,000 -- Total, Military Personnel 3,805,000 1,194,000 1,194,000 -- Operation and Maintenance Operation & Maintenance, Army 35,560,055 37,300,000 37,300,000 -- Operation & Maintenance, Navy 238,437 3,500,000 3,500,000 -- (Transfer out) [-200,000] [-112,000] [-112,000 ] -- Operation & Maintenance, Marine Corps 2,200,000 2,900,000 2,900,000 -- CRS-69 House Leadership Senate- Bill Passed Senate vs Request May 15 May 22 House Operation & Maintenance, Air Force 3,644,078 5,000,000 5,000,000 -- Operation & Maintenance, Defense-Wide 3,193,494 2,648,569 2,648,569 -- Operation & Maintenance, Army Reserve -- 79,291 79,291 -- Operation & Maintenance, Navy Reserve -- 42,490 42,490 -- Operation & Maintenance, Marine Corps Reserve 34,000 47,076 47,076 -- Operation & Maintenance, Air Force Reserve -- 12,376 12,376 -- Operation & Maintenance, Army National Guard -- 333,540 333,540 -- Operation & Maintenance, Air National Guard -- 52,667 52,667 -- Subtotal, Operation and Maintenance 44,870,064 51,916,009 51,916,009 -- Afghanistan Security Forces Fund 3,666,259 2,000,000 2,000,000 -- Iraq Security Forces Fund 2,000,000 1,000,000 1,000,000 -- Total, Operation and Maintenance 50,536,323 54,916,009 54,916,009 -- Procurement Aircraft Procurement, Army -- 84,000 84,000 -- Procurement of Weapons and Tracked Combat Vehicles, Army -- 822,674 822,674 -- Procurement of Ammunition, Army -- 46,500 46,500 -- Other Procurement, Army 80,536 1,009,050 1,009,050 -- Other Procurement, Navy -- 27,948 27,948 -- Procurement, Marine Corps -- 565,425 565,425 -- Aircraft Procurement, Air Force 1,209,300 201,842 201,842 -- Other Procurement, Air Force 1,467,475 1,500,644 1,500,644 -- Procurement, Defense-Wide 72,733 177,237 177,237 -- Rapid Acquisition fund 100,000 -- -- -- Total, Procurement 2,930,044 4,435,320 4,435,320 -- Research, Development, Test and Evaluation Research, Development, Test & Evaluation, Navy 113,228 113,228 113,228 -- Research, Development, Test & Evaluation, Air Force 71,741 72,041 72,041 -- Research, Development, Test and Evaluation, Defense-Wide 194,156 202,559 202,559 -- Total, Research, Development, Test and Evaluation 379,125 387,828 387,828 -- Revolving and Management Funds Defense Working Capital Funds 2,200,000 -- -- -- Total, Revolving and Management Funds 2,200,000 -- -- -- Other Department of Defense Programs -- Defense Health Program 400,000 1,100,000 1,100,000 -- Drug Interdiction and Counter-Drug Activities, Defense 130,000 188,000 188,000 -- Joint Improvised Explosive Device Defeat fund 2,970,444 2,000,000 2,000,000 -- Total, Other Department of Defenses Programs 3,500,444 3,288,000 3,288,000 -- General Provisions Sec 11203 Transfer authority [4,000,000] [4,000,000] [4,000,000] -- Sec 11208 Mine Resistant Ambush Protected Vehicle fund 2,610,000 1,700,000 1,700,000 -- Total, General Provisions 2,610,000 1,700,000 1,700,000 -- Total, Chapter 2 65,960,936 65,921,157 65,921,157 -- Chapter 3 General Provision Sec 11308 rescission of emergency appropriations -- -- -146,531 -146,531 Total, Title IX 166,015,369 162,543,273 165,427,034 +2,883,761 CRS-70 Sources: Request and Senate amounts from Senate Appropriations Committee, "FY2008 Supplemental Explanatory Material," May 20, 2008, on line at [http://appropriations.senate.gov/]; House amounts by CRS based on explanatory material prepared by the House Appropriations Committee and distributed on May 15, 2008, by the House Rules Committee on line at [http://www.rules.house.gov/announcement_details.aspx?NewsID=3333]. ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL34451