Dear Mr. Chairman:

The Congressional Budget Office has reviewed H.R. 3144, the Defend America Act of 1996, as ordered reported by the House Committee on National Security on May 1, 1996. The bill calls for deployment by 2003 of a system to defend the nation against an attack by ballistic missiles, but does not specify how much funding would be available for this purpose. Based on plans and estimates of the Department of Defense, the costs of complying with the bill would total $10 billion over the next five years, or about $7 billion more than is currently programmed for national missile defense.

Through 2010, total acquisition costs would range from $31 billion to $60 billion for a layered defense that would include both ground- and space-based weapons. The wide range in the estimates reflects uncertainty about two factors -- the type and capability of a defensive system that would satisfy the terms of the bill, and the costs of each component of that system. These figures do not include the cost to operate and support the defense after it is deployed. The attachment provides additional details on these estimates.

Section 4 of the Unfunded Mandates Reform Act of 1996 excludes from the application of that bill legislative provisions that are neccessary for the national security or the ratification or implementation of international treaty obligations. CBO has determined that the provisions of H.R. 3144 fit within that exclusion.

H.R. 3144 would not affect direct spending or receipts and thus would not be subject to pay-as-you-go procedures under section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985.

If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contacts are Raymond Hall, who can be reached at 226-2840, and David Mosher, who can be reached at 226-2900.

Sincerely

June E. O'Neil
Director

Attachment

cc: Honorable Ronald V. Dellums
Ranking Minority Member