Order Code RL33999 Defense: FY2008 Authorization and Appropriations Updated January 23, 2008 Pat Towell, Stephen Daggett, and Amy Belasco Foreign Affairs, Defense, and Trade Division The annual consideration of appropriations bills (regular, continuing, and supplemental) by Congress is part of a complex set of budget processes that also encompasses the consideration of budget resolutions, revenue and debt-limit legislation, other spending measures, and reconciliation bills. In addition, the operation of programs and the spending of appropriated funds are subject to constraints established in authorizing statutes. Congressional action on the budget for a fiscal year usually begins following the submission of the President’s budget at the beginning of each annual session of Congress. Congressional practices governing the consideration of appropriations and other budgetary measures are rooted in the Constitution, the standing rules of the House and Senate, and statutes, such as the Congressional Budget and Impoundment Control Act of 1974. This report is a guide to one of the regular appropriations bills that Congress considers each year. It is designed to supplement the information provided by the House and Senate Appropriations Subcommittees on Defense. For both defense authorization and appropriations, this report summarizes the status of the bills, their scope, major issues, funding levels, and related congressional activity. This report is updated as events warrant and lists the key CRS staff relevant to the issues covered as well as related CRS products. NOTE: A Web version of this document with active links is available to congressional staff at [http://apps.crs.gov/cli/cli.aspx? PRDS_CLI_ITEM_ID=221&from=3&fromId=73]. Defense: FY2008 Authorization and Appropriations Summary The President’s FY2008 federal budget request, released February 5, 2007, included $647.2 billion in new budget authority for national defense including $483.2 billion for the regular operations of the Department of Defense (DOD), $141.8 billion for military operations in Iraq and Afghanistan, $17.4 billion for the nuclear weapons and other defense-related programs of the Department of Energy, and $4.8 billion for defense-related activities of other agencies. On July 31, 2007, the President requested an additional $5.3 billion for war-fighting costs, and on October 22 he requested an additional $42.3 billion for that purpose, bringing his total request for FY2008 war costs to $189.3 billion and the total national defense request to $694.8 billion. The Congressional Budget Office (CBO) estimated the cost of the President’s proposal as $696.4 billion. The House passed on May 17 its version of the defense authorization bill, H.R. 1585, approving $1.2 billion more than the President’s then-pending request. The Senate passed its version of the bill October 1. The conference report on the bill, authorizing $696.4 billion – $21 million less than the request – was adopted by the House on December 12 and by the Senate on December 14. On December 28, the White House announced that the President would “pocket veto” the authorization bill – a procedure that would preclude efforts by Congress to override the veto. The President objected to a provision of the bill that would allow lawsuits in U.S. courts against the current Iraqi government for damages resulting from acts of the Saddam Hussein regime. On January 16, the House passed H.R. 4986, a version of H.R. 1585 that was modified to allow the President to waive application to Iraq of the provision that he had cited as grounds for his veto. The new version of the bill also would make retroactive to January 1, 2008 a 3.5% pay raise for military personnel and the renewal of authorization for several types of bonuses, including enlistment and re- enlistment bonuses. The Senate passed the bill January 22. Reportedly, the President is expected to sign the bill. The House passed its version of the FY2008 defense appropriations bill on August 5. The bill, H.R. 3222, provided $448.7 billion in discretionary budget authority for DOD’s “base” budget, $3.6 billion less in discretionary budget authority than the $452.2 billion the President requested for operations within the scope of that legislation. The Senate version of H.R. 3222, passed by voice vote on October 4, 2007, provided $449.5 billion in discretionary DOD budget authority plus $3 billion to better protect U.S. borders. Each version of the bill also included $10.9 billion required by a permanent appropriation for military retirees’ medical care. House-Senate conferees on H.R. 3222 concluded on November 6 a conference report that would appropriate $448.7 billion plus $11.6 billion to acquire MRAPs. The House and Senate each adopted the conference report on November 8. On November 13, the President signed the appropriations bill into law (P.L. 110-116). This report will be updated as events warrant. Key Policy Staff Area of Expertise Name Telephone E-Mail Acquisition Valerie Grasso 7-7617 [email protected] Aviation Forces Christopher Bolkcom 7-2577 [email protected] Arms Control Amy Woolf 7-2379 [email protected] Arms Sales Richard Grimmett 7-7675 [email protected] Base Closure Daniel Else 7-4996 [email protected] Pat Towell 7-2122 [email protected] Defense Budget Stephen Daggett 7-7642 [email protected] Amy Belasco 7-7627 [email protected] Gary Pagliano 7-1750 [email protected] Defense Industry Daniel Else 7-4996 [email protected] Michael Davey 7-7074 [email protected] Defense R&D John Moteff 7-1435 [email protected] Edward Bruner 7-2775 [email protected] Ground Forces Steven Bowman 7-7613 [email protected] Andrew Feickert 7-7673 [email protected] Health Care; Military Richard Best 7-7607 [email protected] Richard Best 7-7607 [email protected] Intelligence Al Cumming 7-7739 [email protected] Military Construction Daniel Else 7-4996 [email protected] Military Personnel David Burrelli 7-8033 [email protected] Military Personnel; Charles Henning 7-8866 [email protected] Reserves Lawrence Kapp 7-7609 [email protected] Steven Hildreth 7-7635 [email protected] Missile Defense Andrew Feickert 7-7673 [email protected] Naval Forces Ronald O’Rourke 7-7610 [email protected] Nuclear Weapons Jonathan Medalia 7-7632 [email protected] Peace Operations Nina Serafino 7-7667 [email protected] Readiness Amy Belasco 7-7627 [email protected] Space, Military Patricia Figliola 7-2508 [email protected] War Powers Richard Grimmett 7-7675 [email protected] Contents Most Recent Developments ..........................................1 Lawsuits Against Terrorist States .............................1 Veto Impact on Military Pay and Bonuses .......................2 Pocket Veto or Regular? ....................................3 FY2008 Defense Funding Status ......................................4 Status of Legislation................................................6 Facts and Figures: Congressional Action on the FY2008 Defense Budget Request......................................................7 FY2008 Defense Budget Request and Outyear Plans: Questions of Affordability and Balance .................................................13 Issues in the FY2008 Global War on Terror Request .....................17 Additional FY2008 War Funding Request .........................18 Congressional Action on Administration’s War Requests .............19 Authorizers Categorize “War” Funding Differently ..............20 Authorizers Shift Funds to Mine-Resistant Ambush Protected Vehicles............................................21 Administration Proposes More Funding for MRAP Vehicles .......21 Appropriations Action.....................................22 Other War-Related Provisions...............................23 FY2008 GWOT Request .......................................24 Congressional Action......................................25 Broad Definition of Reconstitution or Reset ........................27 Congressional Action......................................28 Force Protection Funding ......................................29 Congressional Action......................................30 Questions Likely About Funding For Joint Improvised Explosive Device Defeat Fund .............................................30 Congressional Action......................................31 Oversight Concerns About Cost to Train and Equip Afghan and Iraqi Security Forces...........................................31 Congressional Action......................................32 Coalition Support and Commanders Emergency Response Program .....32 Congressional Action......................................32 Military Construction Overseas and Permanent Basing Concerns .......33 Congressional Action......................................33 Potential Issues in the FY2008 Base Budget Request .....................33 Bill-by-Bill Synopsis of Congressional Action to Date ....................41 Congressional Budget Resolution ................................41 FY2008 Defense Authorization: Highlights of the House Bill ..........42 Operations in Iraq and Afghanistan...........................42 Other FY2008 Defense Budget Issues .........................43 Defense Authorization: Highlights of House Floor Action.............49 Administration Objections to the House Version of H.R. 1585 .........53 FY2008 Defense Authorization: Highlights of the Senate Armed Services Committee Bill ...................................53 Operations in Iraq and Afghanistan...........................54