Full Committee Unanimously Reports Wartime Supplemental

Bill Reported out on 59-0 Vote, Bill Expected on the House Floor as Early as Thursday

Chairman’s Mark:               $77.9 billion
President’s Request:         $74.7 billion

The Chairman’s Mark largely tracks the President’s request.  The additional Congressional notification and accountability provisions mirror precedents and procedures from the 1991 Desert Storm supplemental.  The Administration is given the needed flexibility to allocate funds based on a dynamic combat environment and Congress is given sufficient accountability over the expenditures of taxpayer’s dollars. 

Major Amendments Adopted in Full Committee:  
(Young):  Adds $3.178 billion for reimbursement grants to U.S. flag carriers based on the pro-rata share of expenses incurred related to aviation security as regards to paid or collected passenger security fees and air carrier security fees.  Reimbursements cover the time period from February, 2002 to September, 2003.
(Sabo to Young):  Provides that no airline receiving funding under this heading may provide compensation to senior executives that exceeds the base pay and benefits that such executives received in 2002. 
National Defense
The Chairman’s Mark fully funds the President’s request of $62.409 billion for military activities in support of Operation Iraqi Freedom. 

• $1.4 billion to support our coalition partners.
• $59.7 billion is provided for the Operation Iraqi Freedom Response Fund, approximately the same amount requested by the Administration for the Defense Emergency Response Fund.  Based on testimony by the Secretary of Defense in the Committee’s hearing on the supplemental request that most of the funds requested in this fund were already spent, funds are allocated in the Chairman’s mark for current estimates for service-wide obligations as identified by the Pentagon.  These funds are allocated as follows: 
  • $12.094 billion for Military Personnel which includes:  Army, $6.974 billion; Navy, $1.984  billion;  Marine Corps, $1.204 billion; Air Force, $1.834 billion;
  • $20.735 billion for Operations and Maintenance which includes:  Army, $10.481 billion; Navy, $3.940 billion; Marine Corps, $1.383 billion; Air Force, $3.668 billion; Defense-Wide, $902 million; Army National Guard, $58 million; Defense Health, $302 million.
  • $1.314 billion for Procurement 
  • $102 million Research, Development, Test and Evaluation. 
  • $25.436 billion remains available in the fund for Combat, Stability Operations and Forces Reconstitution Costs.   This fund is created to address the Department’s need for financial flexibility.  The Department is required to notify the Committee seven days prior to obligating funds from this account.   These funds can be used to support any military activity in support of Operation Iraqi Freedom.  The Secretary of Defense can obligate these funds for any purposes deemed necessary to support the war effort.  Examples of activities that can be funded by this account are the following:  combat, stability operations (including natural resource risk remediation activities), force reconstitution and munitions/equipment replacement, and other related costs.   This fund is similar to one created in P.L.102-28 enacted April 10, 1991 which appropriated funds for Operation Desert Storm/Desert Shield.  At that time the flexible combat fund was $7.8 billion out of a $42.6 billion wartime supplemental.

Homeland Security
The Chairman’s Mark includes $4.2 billion for Homeland Security.  It includes $3.5 billion for the Department of Homeland Security (DHS), the same as the President’s request.  The committee provided an additional $700 million in homeland security-related activities outside DHS similar to the request. 
First Responders

• The Chairman’s Mark provides $2.2 billion for grants to First Responders through the Office of Domestic Preparedness (ODP), $200 million above the President’s request.  Within the above amount, $1.5 billion is provided for ODP’s basic grant program to the States and $700 million is provided to address security requirements in high threat, high density urban areas with critical infrastructure.  80 percent of the total $2.2 billion is required to be allocated and transmitted from the States to the localities shortly after the funds are obligated. 

Homeland Defense
Instead of providing a lump sum appropriation of $1.5 billion to the Counterterrorism Fund for unspecified purposes as proposed by the request, the Committee’s recommendation allocates these funds for several high priority activities. 

• $498 million for border and port security –including $230 for the Coast Guard’s targeted seaport security functions and port vulnerability assessments, $193 million for non-intrusive inspection technologies for cargo and portal radiation monitors; $35 million for container security; and $40 million for TSA’s port security efforts;
• $85 million for reimbursements to state and local law enforcement officers and National Guardsmen for increased security measures at airports and other critical transportation sites;
• $30 million for surface transportation security related initiatives;
• $100 million for additional staffing requirements along the Northern Border, including special agents, intelligence analysts, air and marine enforcement personnel, inspectors and Border Patrol agents.
• $235 million for airport modifications to install checked baggage explosive detection systems

Counter-terrorism
The President’s requested $500 million for Department of Justice activities in the Counterterrorism Fund for unspecified purposes.  The Chairman’s Mark allocates those funds for the following critical initiatives:

• $400 million for counter-terror activities at the Federal Bureau of Investigation.
• $50 million for the Counterterrorism Fund 
• $50 million for security activities by the U.S. Marshals Service and other federal security efforts.

Bioterrorism/Public Health

• $165 million for bioterrorism and public health activities which includes $16 million for the Centers for Disease Control (CDC) for comprehensive research of Severe Acute Respiratory Syndrome (SARS), $94 million to assist state and local health authorities with the costs of the civilian smallpox vaccination program, and $50 million to compensate volunteers who experience adverse effects from smallpox vaccinations.  

Foreign Assistance/Reconstruction
The Chairman’s Mark recommends $8 billion for foreign assistance, $202 million more than the request. 
Iraqi Relief and Reconstruction
The Chairman’s Mark provides $2.48 billion for a new Iraq Relief and Reconstruction Fund, an increase of $40 million above the request.  The funds are provided to the President and delegated by the President to the Secretary of State and the administration is given maximum flexibility to allocate these funds.  In exchange for the unprecedented flexibility, language was included to provide prior notification not less than 5 days prior to obligation.  As requested by the President, relief and reconstruction funds are provided for several broad priority categories including:  water/sanitation infrastructure, feeding and food distribution, refugee assistance and other humanitarian activities. 
Bilateral Economic Assistance
The Chairman’s Mark provides $2.34 billion for the Economic Support Fund, $100 million less than the request.  Funds are allocated as follows: 

• $700 million for Jordan, the same as the request; 
• $300 million for Egypt, the same as the request;
• Up to $1 billion for Turkey, the same as the request, includes language that does not allow assistance to be made available until the Secretary of State determines and reports to Congress that the Government of Turkey is cooperating with the United States in Operation Iraqi Freedom.
• $127 million for Afghanistan to support security and economic growth

Foreign Military Assistance   
The Chairman’s Mark recommends $2.1 billion as requested by the President for the Foreign Military Financing Program.  Funds are allocated for the following: 

• $1 billion for Israel under the normal early disbursement procedures.
• $406 million for Jordan
• $170 million to train the Afghan National Army
• $175 million to assist Pakistan in counter-terrorism activities
• $115 million for Peacekeeping Operations

Other Assistance

• $274 million for State Department and Broadcasting Board of Governors emergency response and embassy security needs, $56 million above the request.  Includes $71.5 million to establish an interim diplomatic facility in Iraq.   
• $250 million for international humanitarian food assistance through the P.L. 480 program.

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