FY2008 Spring Supplemental Appropriations and FY2009 Bridge Appropriations for Military Operations, International Affairs, and Other Purposes (P.L. 110-252)

Congressional research reportJul 15, 2008

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Prepared for Members and Committees of Congress

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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setting out Iraq-related policies, including a requirement that combat forces be withdrawn from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.

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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........................ 3

How Long FY2008 Funding Would Have Lasted........................................................................... 4

Key Issues in the Bill....................................................................................................................... 5

Expanded GI Bill Veterans’ Education Benefits ....................................................................... 5

House and Senate Differences Over Other Domestic Spending ............................................... 6

Iraq Policy ............................................................................................................................... 13

House-Passed and Senate Committee Bills ...................................................................... 13

Defense Funding Issues........................................................................................................... 14

International Affairs Remaining FY2008 and Additional FY2009 Supplemental

Appropriations ..................................................................................................................... 15

Congressional Action .............................................................................................................. 16

Iraq Reconstruction Assistance ............................................................................................... 23

May 15 House Action on Iraq Reconstruction.................................................................. 25

May 22 Senate Action on Iraq Reconstruction ................................................................. 26

House and Senate Action on Iraqi Role in Reconstruction ............................................... 26

Enacted Version of FY2008/2009 Supplemental .............................................................. 27

Afghanistan Reconstruction Assistance .................................................................................. 30

Background....................................................................................................................... 30

The FY2008 Original and Amended Emergency Supplemental Request ......................... 30

The FY2009 Regular and Supplemental Request ............................................................. 31

Congressional Action........................................................................................................ 31

Pakistan ................................................................................................................................... 34

The FY2008 Original and Amended Supplemental Request ............................................ 34

The FY2009 Regular and Supplemental Request ............................................................. 34

Congressional Action........................................................................................................ 35

Sudan....................................................................................................................................... 35

FY2008 Supplemental Request......................................................................................... 35

FY2009 Regular and Supplemental Request .................................................................... 35

Congressional Action........................................................................................................ 36

Other Humanitarian Assistance............................................................................................... 38

Migration and Refugee Assistance (MRA)....................................................................... 38

Emergency Refugee and Migration Assistance Fund (ERMA) ........................................ 38

International Disaster Assistance (IDA) ........................................................................... 38

Food Security and Food Aid ................................................................................................... 39

Mérida Initiative...................................................................................................................... 39

Domestic Programs ....................................................................................................................... 40

Expansion of Montgomery GI Bill Education Benefits .......................................................... 41

The Graham alternative..................................................................................................... 42

PAYGO, Military Retention, and Transferability Issues................................................... 42

Congressional Action........................................................................................................ 43

Hurricane Katrina Repairs and Coastal Louisiana Restoration............................................... 43

Congressional Action........................................................................................................ 44

The Census and Other Domestic Issues .................................................................................. 44

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Decennial Census.............................................................................................................. 44

Other additions.................................................................................................................. 45

Other Senate Additions of Funding for Domestic Programs................................................... 45

Table 1. Overview of House and Senate Supplemental Appropriations in H.R. 2642 by

Title and by Major Category ........................................................................................................ 7

Table 2. Selective Comparison of House- and Senate-Passed Supplemental

Appropriations, H.R. 2642 ........................................................................................................... 8

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 ......................................................................................... 23

Table 6. Supplemental Appropriations for Iraq Reconstruction .................................................... 28

Table 7. Afghanistan Reconstruction Assistance, FY2008-FY2009 ............................................. 33

Table 8. Sudan Emergency Supplemental, FY2008-FY2009........................................................ 37

Table A-1. Remaining FY2008 and Additional FY2009 Supplemental Funding Requested

for the Department of Defense ................................................................................................... 50

Table B-1. Spring FY2008 and FY2009 Supplemental Appropriations: Request, House,

and Senate Amounts by Account................................................................................................ 53

Table B-2. Memorandum: Un-passed House Leadership Bill Defense Funding Compared

to Request and Senate-Passed Bill ............................................................................................. 65

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Appendix A. Status of FY2008 Supplemental Funding Through December 2007 ....................... 46

Appendix B. Summary Funding Tables ........................................................................................ 53

Author Contact Information .......................................................................................................... 69

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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 Housepassed 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

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$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;

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$796 million in FY2008 and FY2009 and $63 billion through FY2018 is for

expanded veterans educational benefits; and

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$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 Iraqrelated 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.

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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.

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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.

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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; 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.

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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;

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approved by a vote of 75-22 an amendment providing defense funding without

policy restrictions; and

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.

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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-today 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 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.

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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

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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;

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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.

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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

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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;

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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;

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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;

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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;

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provides $400 million in unrequested funds for science programs rather than $1.2

billion as in the Senate bill;

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provides $150 million to bolster Food and Drug Administration safety programs,

compared to $275 million in the Senate bill; and

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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.

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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, sufficient, officials said, to

extend operations through the end of July.3 DOD requested that Congress include in a

Christian Bourge, with Humberto Sanchez contributing, “Hoyer Says War Supplemental Might Reach Floor

Thursday,” National Journal Congress Daily, PM, June 18, 2008.

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.

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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.

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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 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

See CRS Report RL34275, How Long Can the Defense Department Finance FY2008 Operations in Advance of

Supplemental Appropriations?, by (name redacted) and (name redacted) and CRS Report RL33110,

The Cost of Iraq,

Afghanistan, and Other Global War on Terror Operations Since 9/11, by (name redacted).

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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.

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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.

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.

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.

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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.

Table 1. Overview of House and Senate Supplemental Appropriations in H.R. 2642

by Title and by Major Category

(amounts in millions of dollars)

Request

HousePassed

May 15

SenatePassed

May 22

Enacted

June 30

11,997,855

—

5,761,000

14,909,096

498,169

5,761,000

14,231,264

4,049,600

10,396,751

15,121,244

1,048,169

8,483,619

—

166,015,369

—

165,427,034

-3,577,845

165,427,034

168,453,900

4,641,684

169,127,993

166,156,996

9,423,558

9,918,108

9,918,608

10,088,608

5,896,766

6,608,473

15,058,048

10,256,617

—

15,573,000

14,338,000

Discretionary Supplemental Appropriations by Title

Title I: Military Construction, Veterans,

International Matters, and Other Security-Related

Matters

Title II: Domestic Matters

Title III: Natural Disaster Relief and Recovery

Title VIII (House) General Provisions (Defense

Reductions)

Title IX: Defense Mattersa

Total FY2008/FY2009 Discretionary

Appropriations

183,774,224 21,168,265 194,104,649 186,502,221

Discretionary Supplemental Appropriations by Category

Defenseb

International Affairs

Domestic

Mandatory Unemployment and Veterans Benefits and Medicaid Rules Delay, FY2008/FY2009 Amounts

Title IV (House)/Title V (Senate): Emergency

Unemployment Compensation

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House-

Request

Title V (House)/Title IV (Senate): Veterans

Educational Assistance

Title VII (House)/Title VI (Senate): Medicaid

Provisions

Senate-

Passed

Enacted

May 15

May 22

June 30

—

716,000

717,000

796,000

—

1,600,000

1,755,000

1,195,000

Emergency Unemployment Compensation

Veterans Educational Assistance

Medicaid/Other Health Provisions

Tax Surcharge Offset

—

11,137,000

51,600,000

-7,000

-52,286,000

11,137,000

51,616,000

2,849,000

—

9,962,000

62,770,000

-7,000

—

Total FY2008-FY2018 Mandatory

—

10,444,000

65,602,000

72,725,000

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

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.

Sources: Request and “Enacted June 30”

Table 2. Selective Comparison of House- and Senate-Passed Supplemental

Appropriations, H.R. 2642

(amounts in thousands of dollars)

HousePassed

May 15

Request

Title I: Other Security, Military Construction, and International Matters

Department of Agriculture

SenatePassed

May 22

Senate

vs.

House

P.L. 480 International Food Assistance

745,000

1,245,000

—

Federal Bureau of Investigation

Drug Enforcement Administration, Salaries and

Expenses

Other Dept of Justice Programs

140,184

8,468

174,769

12,166

247,565

22,666

+72,796

+10,500

37,114

42,369

—

Department of Justice

ȱȱȱ

Şȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

Request

House-

Senate-

Passed

Senate

vs.

May 15

May 22

House

Department of Defense

Military Construction

Family Housing

Department of Veterans Affairs

Polytrauma Clinics and Other Programs

2,010,855

427,676

3,275,284

1,366,400

2,228,304

1,214,652

-1,046,980

-151,748

—

120,000

557,100

+437,100

1,868,008

1,691,008

1,512,900

-178,108

386,600

449,600

+63,000

—

3,000

+3,000

—

41,000

2,009,000

—

734,000

200,000

146,000

1,747,000

75,000

419,300

240,000

153,500

1,962,500

76,000

520,000

+40,000

+7,500

+215,500

+1,000

+100,700

30,000

5,000

325,000

11,200

367,108

10,000

+42,108

-1,200

—

72,500

—

20,000

10,000

—

10,000

—

-72,500

+10,000

-20,000

-10,000

-30,000

—

+30,000

1,081,300

836,200

750,700

-85,500

40,000

225,500

—

8,000

6,000

-2,000

—

210,000

270,000

75,000

200,000

75,000

200,000

—

International Affairs Supplemental Appropriations for Fiscal Year 2008

Administration of Foreign Affairs, Embassy

Security and Other

International Organizations, Peacekeeping

Programs

Broadcasting Board of Governors

Bilateral Economic and Military Assistance

International disaster assistance

AID Operation Expenses

Economic support fund

Democracy fund

International narcotics control and law

enforcement

Migration and refugee assistance

Nonproliferation, anti-terrorism, demining and

related programs

Foreign Military Financing Programs

Peacekeeping operations

World Food Program

International narcotics control and law

enforcement (Sudan)

Offsetting Rescissions

International Affairs Bridge Fund Appropriations for Fiscal Year 2009

Administration of Foreign Affairs, Embassy

Security and Other

International Organizations, Peacekeeping

Programs

Broadcasting Board of Governors

Bilateral Economic and Military Assistance

Global Health and Child Survival

Development Assistance

International disaster assistance

ȱȱȱ

şȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

Request

Operating expenses of the US Agency for

International Development

Operating expenses of the US Agency for

International Development Office of Inspector

General

Economic support fund

International narcotics control and law

enforcement

Migration and refugee assistance

Nonproliferation, anti-terrorism, demining and

related programs

Foreign Military Financing program grants

Peacekeeping operations

World Food Program

International narcotics control and law

enforcement (Sudan)

Horn of Africa

Food Security and Cyclone relief

Jordan

Offsetting Rescissions

Total, Title I

Title II: Domestic Matters

Food and Drug Administration

Bureau of the Census

Department of Justice

United States Marshals Service, Salaries and

Expenses

Federal Prison System, Salaries and Expenses

State and Local Law Enforcement Assistance

House-

Senate-

Passed

Senate

vs.

May 15

May 22

House

60,000

93,000

—

1,000

—

1,297,800

225,000

1,147,300

204,500

1,132,300

151,000

-15,000

-53,500

191,000

—

350,000

4,000

350,000

4,500

—

+500

170,000

60,000

—

170,000

85,000

—

145,000

85,000

20,000

10,000

-25,000

—

+20,000

+10,000

—

40,000

225,000

300,000

-645,000

+40,000

+225,000

+300,000

-645,000

—

12,048,005 14,939,096

14,231,264

-707,832

—

275,000

+275,000

—

210,000

—

50,000

+50,000

—

178,000

—

178,000

590,000

—

+590,000

—

200,000

157,000

+200,000

+157,000

—

243,000

400,000

+243,000

+400,000

—

600

+600

—

400,000

+400,000

Science

NASA, Return to Flight

National Science Foundation

Non-Defense Energy Programs, Cleanup and

Science

Defense Environmental Cleanup

National Institutes of Health

Small Business Administration

Secure Rural Schools

ȱȱȱ

ŗŖȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

Request

House-

Senate-

Passed

vs.

May 15

May 22

House

State Unemployment Insurance

Centers for Disease Control, Research and

Training

Low-Income Energy Assistance (LIHEAP)

House of Representatives, Payments to

Widows and Heirs

American Battle Monuments Commission,

Foreign Currency Account

Total, Title II

498,169

Title III: Hurricanes Katrina and Rita, and Other Natural Disasters

Emergency Conservation Program

Emergency Watershed Protection Program

Rural Electric and Telecommunication Loans

Offsetting Rescissions

Economic Development Assistance Programs

National Oceanic and Atmospheric

Administration

State and Local Law Enforcement Assistance

Corps of Engineers

Bureau of Land Management, Wildland Fire

Management

National Park Service, Historic Preservation

Fund

EPA, State and Tribal Assistance Grants

Forest Service, Wildland Fire Management

Centers for Medicare and Medicaid Services

—

Department of Defense

—

110,000

—

26,000

+26,000

—

1,000,000

+1,000,000

—

169

—

Military Construction Army National Guard

Offsetting Rescissions

Family Housing Navy

-169

10,000

+10,000

4,049,600

+3,551,431

—

49,413

+49,413

—

130,464

+130,464

—

1,000

+1,000

—

-1,000

—

75,000

+75,000

—

75,000

+75,000

—

75,000

+75,000

5,761,000

8,759,745

+2,998,745

—

125,000

+125,000

—

15,000

+15,000

—

5,000

+5,000

—

325,000

+325,000

350,000

+350,000

—

11,503

-7,000

10,500

+11,503

-7,000

+10,500

—

451,126

+451,126

—

146,000

+146,000

—

-200,000

10,396,751

+4,635,751

40,000

—

Emergency Highway Relief Program

Department of Housing and Urban

Development

Louisiana Road Home (rescission of

emergency funds)

Total, Title III

5,761,000 5,761,000

Title IV (Senate)/Title III (House): Veterans Educational Assistance

Veterans Educational Assistance, FY2008

—

ȱȱȱ

Senate

40,000

ŗŗȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

Request

House-

Senate-

Passed

vs.

May 15

May 22

House

Veterans Educational Assistance, FY2009

Total, Title IV

716,000

717,000

TITLE V (Senate)/Title IV (House): Emergency Unemployment Compensation

Emergency unemployment compensation

FY2008

Emergency unemployment compensation

FY2009

Total, Title V

15,610,000 15,610,000

Title VI (Senate)/Title V (House): Department of Health and Human Services

Medicaid Moratorium, FY2008

Medicaid Moratorium, FY2009

Medicaid, Medicare and SCHIP provisions,

FY2008

Medicaid, Medicare and SCHIP provisions,

FY2009

Total, Title VI

— 1,600,000 1,755,000

Title IX: Defense Matters

Defense Supplemental Appropriations for Fiscal Year 2008

—

676,000

677,000

—

Senate

+1,000

—

6,170,000

—

9,440,000

—

450,000

—

-450,000

—

1,150,000

—

-1,150,000

—

530,000

+530,000

—

1,225,000

+1,225,000

+155,000

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

Afghanistan Security Forces Fund

Iraq Security Forces Fund

Procurement

Research, Development, Test and Evaluation

Revolving and Management Funds

Defense Health Program

Other Programs

General Provisions

207,500

1,350,000

1,500,000

44,411,846

2,945,748

962,785

561,741

69,411

6,500

—

50,000

1,400,000

1,500,000

42,006,355

1,745,483

1,842,560

1,413,864

146,711

6,500

+50,000

+1,400,000

+1,500,000

+42,006,355

+1,745,483

+1,842,560

+1,413,864

+146,711

+6,500

3,805,000

—

1,194,000

+1,194,000

44,870,064

—

51,916,009

+51,916,009

3,666,259

2,000,000

2,930,044

379,125

—

2,000,000

1,000,000

4,435,320

387,828

+2,000,000

+1,000,000

+4,435,320

+387,828

Defense Bridge Fund Appropriations for Fiscal Year 2009

Military Personnel

Operation and Maintenance

Afghanistan Security Forces Fund

Iraq Security Forces Fund

Procurement

Research, Development, Test and Evaluation

ȱȱȱ

ŗŘȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

Request

Defense Working Capital Funds

Defense Health Program

Drug Interdiction and Counter-Drug Activities,

Defense

Joint Improvised Explosive Device Defeat fund

Mine Resistant Ambush Protected Vehicle fund

Rescission of emergency appropriations

House-

Senate-

Passed

Senate

vs.

May 15

May 22

House

2,200,000

400,000

130,000

—

1,100,000

188,000

—

+1,100,000

+188,000

2,970,444

2,610,000

—

2,000,000

1,700,000

-146,531

+2,000,000

+1,700,000

-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

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.

Sources:

ȱ¢ȱ

Ȭȱȱȱȱȱ

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 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

ȱȱȱ

ŗřȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

•

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.

ȱȱ ȱ

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.

ȱȱȱ

ŗŚȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

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 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.

ȱȱȱŘŖŖŞȱȱȱŘŖŖşȱ

ȱŜȱ

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

Prepared by (name redacted), Specialist in Foreign Policy.

ȱȱȱ

ŗśȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

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.

ȱȱ

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 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)

ȱȱȱ

ŗŜȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

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)

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.

ȱȱȱ

ŗŝȱ

. FY2008 and FY2009 Emergency Supplemental for State Department Operations

Table 3

(millions of U.S. dollars)

Activity

Total State Operations

Diplomatic & Consular

Programs

Iraq Operations

Afghanistan

Worldwide Security

Protection

Education & Cultural

Exchanges

Embassy Security,

Construction &

Maintenance

Office of Inspector

General

Contributions to

International

Organizations

Contributions to

International Peacekeeping

Broadcasting

Total

Enacted

FY2008

Supp.

P.L. 110Request

161

$3,219.6 $1,261.6

House

Second May 15FY2008

passed

Supp

FY2008

Request

Supp

$2,254.6 $2,077.6

Senate

May 22passed

FY2008

Supp

$1,962.5

Enacted

June 30

FY2008

Supp

$1,991.6

House

May 15FY2009

passed

Supp

FY2009

Request

Supp

$1,121.3 $1,061.7

Senate

May 22passed

FY2009

Supp

$1,016.2

Enacted

June 30

FY2009

Supp

$1,068.2

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

(2,120.6)

(575.0)

(1,545.6)

(162.4)

(206.6)

(162.4)

(1,295.0)

(205.2)

(210.5.)

(1,095.0)

(195.2)

(212.4)

(1,150.0)

((200.2)

(48.0)

(921.0)

(101.0)

(45.8)

(581.5)

(91.4)

(78.4)

(500.0)

(87.4)

(78.4)

(550.5)

(89.4)

(78.4)

—

$10.0

—

$160.0

—

$160.0

$76.7

—

$41.3

—

$7.5

$12.5

$9.5

$16.8

$57.0

$53.0

—

$53.0

$66.0

$40.0

$75.0

$723.6

$468.0

$333.6

$383.6

$373.7

—

$150.5

—

$12.0

—

$3.0

$2.0

—

$6.0

$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.

ȬŗŞȱ

Table 4. FY2008 and FY2009 Foreign Operations Emergency Supplemental

(millions of U.S. dollars)

Account

Afghanistan

ESF

NADR

INCLE

USAID Operating Expenses

Iraq

Enacted

Total

Supp

FY2008 H.R. 2764

Supp. P.L. 110Request

161a

Second

FY08

Supp

Request

n.a

839.0

834.0

5.0

—

(16.0)

956.0

ESF

INCLE

NADR

n.a

956.0

797.0

159.0

Pakistan

60.0

ESF

FMF

60.0

n.a

60.0

House

May 15passed

FY2008

Supp

Senate

May 22passed

FY2008

Supp

Enacted

June 30

FY2008

Supp

—

ESF

ESF offset with rescissions

FMF offset with rescissions

Ȭŗşȱ

—

Enacted

June 30

FY2009

Supp

904.0

899.0

924.9

455.0

859.0

5.0

65.0

—

899.0

5.0

—

859.0

5.0

35.0

—

749.9

—

175.0

—

455.0

—

455.0

—

455.0

—

600.0

558.0

584.0

212.8

104.5

114.5

107.0

440.0

80.0

—

75.0

398.0

85.0

—

75.0

424.0

85.0

—

75.0

212.8

—

100.0

—

4.5

—

110.0

—

4.5

—

102.5

—

4.5

—

60.0

—

170.0

175.0

150.0

—

60.0

—

100.0

175.0

—

150.0

—

150.0

—

45.0

32.5

50.0

Jordan

FMF

Senate

May 22passed

FY2009

Supp

929.0

Lebanon

FMF

FY2009

Supp

Request

House

May 15passed

FY2009

Supp

—

50.0

—

45.0

32.5

150.0

450.0

250.0

100.0

200.0

—

17.0

100.0

150.0

175.0

100.0

300.0

25.0

33.0

Enacted

Total

Supp

FY2008 H.R. 2764

Supp. P.L. 110Request

161a

375.0

n.a

Account

West Bank/Gaza

INCLE

ESF

Israel (FMF)

25.0

350.0

—

North Korea

106.0

ESF

106.0

Mexico

500.0

INCLE

FMF

ESF

0.0

—

500.0

—

Central America

50.0

INCLE

NADR

FMF

ESF

Haiti (INCLE)

Dominican Republic

Nepal

Philippines

Sri Lanka

Thailand

Vietnam

Bangladesh

Burma

—

n.a

(INCLE)

House

Senate

Second

May 15-

May 22-

Enacted

FY08

passed

June 30

Supp

FY2008

Request

Supp

ȬŘŖȱ

FY2009

passed

June 30

FY2008

Supp

FY2009

Supp

Request

Supp

Enacted

125.0

225.0

196.0

200.0

150.0

25.0

200.0

—

200.0

—

25.0

100.0

—

200.0

25.0

171.0

—

50.0

150.0

—

50.0

150.0

—

50.0

150.0

—

50.0

150.0

170.0

53.0

15.0

—

15.0

103.5

15.0

—

53.5

50.0

—

48.0

—

50.0

5.3

50.0

5.3

50.0

5.3

53.0

500.0

296.5

350.0

352.0

—

210.0

66.5

20.0

350.0

—

215.5

116.5

20.0

—

50.0

—

50.0

—

56.5

29.3

6.2

6.0

15.0

2.5

—

(ESF)

—

(ESF)

—

15.0

—

24.8

6.2

4.0

25.0

(ESF)

—

50.0

—

40.0

65.0

2.5

7.0

15.0

6.0

2.5

—

25.0

—

90.0

5.0

7.0

15.0

6.0

2.5

2.0

25.0

—

(ESF)

Senate

May 22-

220.0

(ESF)

House

May 15-

15.0

48.0

Enacted

Total

Supp

FY2008 H.R. 2764

Supp. P.L. 110Request

161a

Account

Africa

(ESF)

Sudan

ESF

Second

FY08

Supp

Request

House

May 15passed

FY2008

Supp

Senate

May 22passed

FY2008

Supp

Enacted

June 30

FY2008

Supp

FY2009

Supp

Request

House

May 15passed

FY2009

Supp

Senate

May 22passed

FY2009

Supp

—

40.0

—

70.0

n.a

70.0

45.0

55.0

—

25.0

70.0

45.0

25.0

70.0

10.0b

Somalia

PKO

Kenya

Democratic Republic of the

Congo

(ESF)

—

ESF

Enacted

June 30

FY2009

Supp

—

35.0

25.0

10.0b

40.0

—

40.0

—

12.0

25.0

12.0

12.5

45.0

20.0

25.0

30.0

25.0

30.0

25.0

20.0

15.0

12.5

—

10.0

—

20.0

10.0

5.0

2.0

22.0

5.0

3.0

1.0

17.5

15.0

5.0

2.0

15.0

5.0

2.0

15.0

5.0

2.0

15.0

—

20.0

—

(10.0)

—

(80.0)

(85.0)

—

191.0

350.0

—

PKO

Zimbabwe

Chad

Central African Republic

Uganda

Poland

(ESF)

—

(ESF& DF)

—

(ESF)

FMF

Stabilization/Peacekeeping

Horn of Africa/Kenya

PL480

Southern Africa

PL480

Migration/Refugee Assist.

Emergency Migration (ERMA)

ȬŘŗȱ

(110.0)

(135.0)

(110.0)

—

300.0

25.0

330.5

36.6

—

15.0

20.0

—

0.0

(135.0)

—

(135.0)

230.0

200.0

30.0

—

315.0

31.0

Account

Intern’l Disaster Assist.

PL480

Other Food Security

IDA)

Enacted

Total

Supp

Second

FY2008 H.R. 2764 FY08

Supp. P.L. 110Supp

Request

161a

Request

80.0

—

Global Health and Child

Senate

May 22passed

FY2008

Supp

Enacted

June 30

FY2008

Supp

FY2009

Supp

Request

House

May 15passed

FY2009

Supp

Senate

May 22passed

FY2009

Supp

Enacted

June 30

FY2009

Supp

200.0

240.0

220.0

45.0

200.0

325.0

200.0

350.0

850.0

395.0

—

20.0c

375.0

200.0

—

0.0

—

75.0

61.8

—

n.a

—

41.0

—

142.0

4.0

149.5

4.0

150.5

4.0

60.0

—

93.0

1.0

93.0

1.0

93.0

1.0

—

3,677.8

—

1,123.4

—

3,169.0

—

3,846.0

5.0

—

4,489.1

2.5

—

4,158.5

—

2,878.7

—

196.0

2,925.3

—

125.0

2,955.8

—

2,863.8

350.0

(DA &

House

May 15passed

FY2008

Supp

Survival

USAID Operating Expenses

USAID IG

Comprehensive Test Ban

Treaty Int’l Monitoring

Other

Totald

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:

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.

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.

ȬŘŘȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

Table 5. House and Senate Rescissions

($ Millions)

Account

House

May 15

Senate

May 22

Enacted

Andean Counterdrug Program for WFP

INCLE for Sudan

IRRF—expired

IRRF for ESF total

IRRF—for Mexico

IRRF—for Horn of Africa and counterterrorism

MCC—for Jordan

MCC—for IDA

$20.0

$10.0

—

$20.0

$10.0

$350.0

—

$50.0

$40.0

$300.0

$225.0

$20.0

$10.0

—

$50.0

—

$58.0

—

Source:

H.R. 2642 and the Department of State.

ȱȱŞȱ

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 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.

Prepared by (name redacted), Specialist in Foreign Affairs. For more detailed discussion of the U.S. program of

assistance to Iraq, see CRS Report RL31833, Iraq: Reconstruction Assistance.

ȱȱȱ

Řřȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

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 smallscale, 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 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

ȱȱȱ

ŘŚȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

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).

¢ȱŗśȱ ȱȱȱ ȱȱ

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%.

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 nongovernmental 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.

“In Iraq, One Man’s Mission Impossible,” CNN Money.com, September 4, 2007.

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.

ȱȱȱ

Řśȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

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.

¢ȱŘŘȱȱȱȱ ȱȱ

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 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.

ȱȱȱȱȱ ȱȱȱȱ

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.

ȱȱȱ

ŘŜȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

ȱȱȱŘŖŖŞȦŘŖŖşȱȱ

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.

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.

ȱȱȱ

Řŝȱ

. Supplemental Appropriations for Iraq Reconstruction

Table 6

(millions of U.S. dollars)

International Affairs (Budget Function 150 Accounts)

Enacted

Supp.

Total Allocation Second House May 15FY2008 H.R. 2764 FY2008

passed

Supp. (P.L. 110- Supp

Version

Request

161)

Request FY2008 Supp

Economic Support

Fund (ESF)

Democracy Fund

International

Narcotics Control

and Law Enforcement

(INCLE)

Migration and Refugee

Assistance (MRA)

International Disaster

Assistance (IDA)

Nonprolif, AntiTerror, Demining

(NADR)

TOTAL 150

Account

Iraq Security Forces

Fund (ISFF)

Commander’s

Emergency Response

Program (CERP)

Iraq Freedom Fund

(for Task Force to

Improve Business)

ȬŘŞȱ

Senate May

22-passed

Version

FY2008 Supp

Enacted

House May 15June 30 FY2009

passed

FY2008 Supp

Version

Supp Request FY2009 Supp

Senate May

22-passed

Version

FY2009 Supp

Enacted

June 30

FY2009

Supp

797.0

15.0

797.0

440.0

398.0

424.0

212.8

100.0

110.0

102.5

—

159.0

—

159.0

75.0

85.0

75.0

85.0

75.0

85.0

—

—g

—

—g

195.0a

149.5a

30.0a

30.0j

141.0

141.0h

141h

141.0h

80.0b

—

45.0

45.0i

—

4.5

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)

3,000

1,500.0

(1,500.0)*

1,500.0

2,000.0

(1,000.0)*

1,000.0

1,000

609.7c

370.0d

359.7e

(544.9)*e

744.9e

850.0f

—

100.0

—

100.0

(50.0)*

50.0

—

International Affairs (Budget Function 150 Accounts)

Enacted

Supp.

Total Allocation Second House May 15FY2008 H.R. 2764 FY2008

passed

Supp. (P.L. 110- Supp

Version

Request

161)

Request FY2008 Supp

3,709.7

1,870.0 1,959.7

(2,094.9)*

Senate May Enacted

House May 1522-passed

June 30 FY2009

passed

Version

FY2008 Supp

Version

FY2008 Supp Supp Request FY2009 Supp

2,294.0 2,294.0 2,900.0

(1,000.0)*

Senate May Enacted

22-passed

June 30

Version

FY2009

FY2009 Supp Supp

1,000.0

1,000

TOTAL 050

Account

GRAND TOTAL

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

150 & 050

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.

H.R. 2764

provided $200 million for MRA account. The total account request was $230 million. Table shows amount requested/allocated for Iraq.

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.

ȬŘşȱ

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ȱȱŗŗȱ

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 countermeasures, 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.

ȱŘŖŖŞȱȱȱȱ¢ȱȱȱ

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

Prepared by (name redacted), Specialist in International Humanitarian Policy and (name redacted), Specialist in

Middle Eastern Affairs.

ȱȱȱ

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reconstruction, which 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.

ȱŘŖŖşȱȱȱȱȱ

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.

ȱȱ

The version of the supplemental appropriations bill approved by the House on June 19, by the

Senate June 26, and then signed by the 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:

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.

ȱȱȱ

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•

$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.

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.

House Amendment to the Senate Amendment 2 to H.R. 2642, Further House Amendment Relating to Supplemental

Appropriations for Fiscal Years 2008 and 2009.

ȱȱȱ

řŘȱ

. Afghanistan Reconstruction Assistance, FY2008-FY2009

Table 7

(millions of U.S. dollars)

Activity

(appropriation

account)

Senate

Total

May 22FY2008 Final

Second

House

passed

Enacted

Supp Supp P.L. FY2008 Supp May 15-passed FY2008

June 30 FY2009 Supp

Request 110-161 Request

FY2008 Supp Supp FY2008 Supp Request

Infrastructure aid (ESF)

Nonproliferation

(NADR)

Int’l Narcotics Control

(INCLE)

834.0

5.0

Total

839.0

—

834.0

5.0

839.0

House

May15passed

FY2009

Supp

Enacted

Senate May June 30

22-passed FY2009

FY2009 Supp Supp

859.0

5.0

899.0

5.0

859.0

5.0

749.9

—

455.0

—

455.0

—

455.0

—

65.0

—

35.0

175.0

—

929.0

904.0

899.0

924.9

455.0

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.

Source:

Ȭřřȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

ŗŚȱ

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.

ȱŘŖŖŞȱȱȱȱȱȱ

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.

ȱŘŖŖşȱȱȱȱȱ

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 Afghanistan-Pakistan border region including efforts to train and equip

Pakistan’s Frontier Corps.”

Prepared by (name redacted), Specialist in International Humanitarian Policy.

For more detail on Pakistan, see CRS Report RL33498, Pakistan-U.S. Relations, by (name redacted).

ȱȱȱ

řŚȱ

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ȱȱ

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.

ŗŜȱ

ŘŖŖŞȱȱȱ

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.

ŘŖŖşȱȱȱȱȱ

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 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.

Prepared by (name redacted), Specialist in International Humanitarian Policy.

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.

ȱȱȱ

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ȱȱ

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.

ȱȱȱ

řŜȱ

. Sudan Emergency Supplemental, FY2008-FY2009

Table 8

(millions of U.S. dollars)

Activity

(appropriation

account)

Diplomatic and Consular

Programs

UNAMID (CIPA )

International Narcotics

Control and Law

Enforcement (INCLE)

Economic Support Fund

(ESF)

Total

FY2008

FY2009

Supp

Supp FY2008

Supp

FY2008

Final

Pending

May 15

May 22 Supp

May 15

May 22 FY2009

Supp.

Supp. FY2008

HouseSenate- Enacted FY2009 HouseSenateSupp

FY2009

Request P.L. 110- Supp. passed H.R. passed H.R. H.R.

Supp. passed H.R. passed H.R. Enacted Regular

2642

2642 H.R. 2642 Request

Total

161

Request

2642 Request

—

15.0

—

723.6

—

468.0

—

333.6

—

333.6

—

333.6

—

333.6

10.0

—

10.0

—

70.0

—

70.0

45.0

—

25.0

254.1

$403.6

$378.6

$388.6

—

$25.0

$35.0

$332.6c

$868.6

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.

Source:

Ȭřŝȱ

ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

ȱ ȱŗŞȱ

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.

ȱȱȱȱǻǼȱ

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.

¢ȱȱȱȱȱȱǻǼȱ

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.

ȱȱȱǻ Ǽȱ

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

Prepared by (name redacted), Specialist in International Humanitarian Policy.

This was an increase of $160 million for Iraqi refugees; $35 million was requested in the earlier version of the

FY2008 emergency supplemental request.

ȱȱȱ

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ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

humanitarian assistance. The Administration’s FY2008 supplemental request did not 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.

ȱ¢ȱȱȱȱ

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.

·ȱ ȱ

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

Ben Schneider and Christian Bourge, “Durbin Eyes Additional Food Aid, Seeks Assist From Rice,” National Journal

Congress Daily AM, April 29, 2008.

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.

ȱȱȱ

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ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

$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.

ȱȱ

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 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

See CRS Report RS22837, Merida Initiative: U.S. Anticrime and Counterdrug Assistance for Mexico and Central

America, by (name redacted) and (name redacted).

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•

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.

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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 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

Prepared by Shannon Loane, Knowledge Services Group, Domestic Social Policy Consulting Section.

For information on the current Montgomery GI Bill provisions, see CRS Report RL34549, A Brief History of

Veterans’ Education Benefits and Their Value, by (name redacted) and (name redacted).

See Josh Rogin, “Spending Add-ons Could Make for Largest War Supplemental Bill Yet.” CQ Today, April 18,

2008.

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).

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administrative burden. He also argued that it might lead to lower rates of reenlistment in the

military services.27

ȱ ȱȱ

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.

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

ǰȱ¢ȱǰȱȱ¢ȱ ȱ

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

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).

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.

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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 announced that he was sending legislation to

Congress to permit benefit transfers as well.30

ȱȱ

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.

ȱ ȱȱȱȱȱȱ

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

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.

President George W. Bush, “President Bush Commemorates Military Spouse Day,” The White House, May 6, 2008.

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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

ȱȱ

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.

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Several other, smaller domestic programs also received funding in the pending supplemental.

ȱȱ

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

See CRS Report RL34417, Energy and Water Development: FY2009 Appropriations, coordinated by (name re

dacted).

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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

ȱȱ

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.

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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.

Prepared by (name redacted), Government and Finance Division.

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¡ȱǯ ȱȱŘŖŖŞȱȱ

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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.

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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.

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•

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.

ȱȱ

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 $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

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.

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.

See CRS Report RL33999, Defense: FY2008 Authorization and Appropriations, by (name redacted), (name redacted),

and (name redacted).

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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. 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

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.

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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.

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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.

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

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.

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Table A-1. Remaining FY2008 and Additional FY2009 Supplemental Funding

Requested for the Department of Defense

(amounts in millions of dollars)

FY2008

Original Enacted

FY2008 Remaining

FY2008 through Remaining DOD Adjusted

Amended Dec. FY2008 Adjust- FY2008 FY2009

Request 2007 Request ment Request Request

Military Personnel

Military Personnel, Army

Reserve Personnel, Army

National Guard Personnel, Army

Military Personnel, Navy

Reserve Personnel, Navy

Military Personnel, Marine Corps

Reserve Personnel, Marine Corps

Military Personnel, Air Force

Reserve Personnel, Air Force

National Guard Personnel, Army

National Guard Personnel, Air Force

12,318

299

1,137

792

1,790

1,416

—

783

—

138

—

11,535

299

1,137

696

1,734

1,278

—

+329

+420

—

11,864

309

1,557

702

1,737

1,286

—

3,500

—

105

—

Total Military Personnel

17,840

1,072

16,767

+789

17,556

3,805

53,872

197

757

6,163

4,272

10,705

103

5,337

35,152

327

3,664

3,966

4,778

2,117

—

18,720

119

430

2,499

306

5,927

3,220

-1,577

+38

+383

+722

+34

+66

+830

+150

+234

+343

—

17,143 35,560

157

—

813

—

3,220

238

340 2,200

108

—

6,758 3,644

162

—

285

—

3,563 3,194

—

258

193

—

130

2,700

3,000

3,851

1,350

1,500

3,747

1,350

1,500

104

—

+70

1,350

1,500

174

3,666

2,000

—

Operation and Maintenance

O&M, Army

O&M, Army Reserve

O&M, Army National Guard

O&M, Navy

O&M, Marine Corps

O&M, Navy Reserve

O&M, Marine Corps Reserve

O&M, Air Force

O&M, Air Force Reserve

O&M, Air National Guard

O&M, Defense-Wide

Office of the Inspector General

Drug Interdiction and Counter-Drug

Activities, Defense

Afghanistan Security Forces Fund

Iraq Security Forces Fund

Iraq Freedom Fund

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FY2008

Original Enacted

FY2008 Remaining

FY2008 through Remaining DOD Adjusted

Amended Dec. FY2008 Adjust- FY2008 FY2009

Request 2007 Request ment Request Request

Defense Health Program

Medical Support Fund

1,137

—

576

—

562

—

+197

—

759

—

400

92,533

57,599

34,934

+1,490

36,424

51,066

Aircraft Procurement, Army

Missile Procurement, Army

Procurement of W&TCV, Army

Procurement of Ammunition, Army

Other Procurement, Army

Joint Impr Explosive Dev Defeat Fund

Aircraft Procurement, Navy

Weapons Procurement, Navy

Procurement of Ammo, Navy & MC

Other Procurement, Navy

Procurement, Marine Corps

Aircraft Procurement, Air Force

Missile Procurement, Air Force

Procurement of Ammunition, Air Force

Other Procurement, Air Force

Procurement, Defense-Wide

Rapid Acquisition Fund

Mine Resistant Ambush Prot Veh Fund

2,125

642

7,290

514

23,131

4,269

3,908

318

610

1,607

3,148

3,946

104

2,461

542

150

16,830

944

—

1,429

154

2,028

4,269

—

305

703

—

275

—

16,830

1,182

642

5,860

360

21,103

—

3,860

318

305

1,515

2,444

3,895

104

2,430

267

150

—

+15

-105

-289

—

-4,410

-65

+191

—

1,196

537

5,571

360

16,693

-65

4,050

318

305

1,515

2,444

3,895

104

2,430

275

150

—

2,970

—

1,209

—

1,468

100

2,610

RDT&E, Army

RDT&E, Navy

RDT&E, AF

RDT&E, DW

163

611

1,487

684

Total Operation and

Maintenance

Procurement

Total Procurement

71,597 27,159

Research, Development, Test and Evaluation

Total RDT&E

44,438

-4,657

39,781 8,511

—

163

611

1,487

684

+48

+21

+62

+260

211

632

1,549

945

—

113

194

2,946

—

2,946

+391

3,33

379

1,441

—

238

—

1,441

—

238

+127

+560

+95

1,568

560

332

—

Military Construction

Military Construction, Army

FY2005 BRAC – Army

Military Construction, Navy

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ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

FY2008

Original Enacted

FY2008 Remaining

FY2008 through Remaining DOD Adjusted

Amended Dec. FY2008 Adjust- FY2008 FY2009

Request 2007 Request ment Request Request

FY2005 BRAC – Navy

Military Construction, Air Force

FY2005 BRAC – AF

Military Construction, Defense-Wide

FY2005 BRAC – Defense Wide

Total Military Construction

Family Housing

—

305

—

416

—

305

—

416

+97

+98

+129

—

403

129

416

—

2,427

+1,107

3,534

—

Total Family Housing

Revolving and Management Funds

—

Working Capital Fund, Army

Working Capital Fund, Navy

Working Capital Fund, Air Force

1,364

237

720

—

644

237

+229

+358

651

272

595

—

313

280

+287

320

2,200

—

1,963

1,000

963

+880

—

Fam Housing Construction, Navy & Marine

Corps

Working Capital Fund, Defense-Wide

National Defense Sealift Fund

Total Revolving & Mngmnt

Funds

Other Non-DOD Intelligence

FBI Counter-terrorism

2,427

—

1,843 2,200

—

Total Other Intelligence

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.

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Table B-1. Spring FY2008 and FY2009 Supplemental Appropriations:

Request, House, and Senate Amounts by Account

(amounts in thousands of dollars)

Enacted

Request

House-

Senate-

June 30

Passed

H.R. 2642

May 15

May 22

P.L. 110-

H.R. 2642

252

HER SECURITY, MILITARY CONSTRUCTION, AND INTERNATIONAL MATTERS

CHAPTER 1

DEPARTMENT OF AGRICULTURE, Foreign Agricultural Service

TITLE I: OT

Public Law 480 Title II Grants (emergency)

Advance appropriation, FY2009 (emergency)

350,000

395,000

850,000

395,000

850,000

395,000

850,000

395,000

General Administration, Inspector General

—

4,000

General Legal Activities, Salaries and Expenses

United States Attorneys, Salaries and Expenses

4,093

5,000

1,648

5,000

1,648

5,000

1,648

5,000

14,921

18,621

28,621

101,122

39,062

92,169

82,600

164,965

82,600

106,122

82,600

8,468

12,166

22,666

29,861

4,000

9,100

1,440,750

237,505

305,000

27,600

1,432,700

423,357

409,627

1,009,600

1,170,200

300,084

361,900

27,600

1,108,200

355,907

399,627

890,921

11,766

CHAPTER 2

DEPARTMENT OF JUSTICE

Legal Activities

United States Marshals Service, Salaries and Expenses

Federal Bureau of Investigation

Salaries and expenses (emergency)

Advance appropriation, FY2009 (emergency)

Drug Enforcement Administration, Salaries and Expenses

Bureau of Alcohol, Tobacco, Firearms and Explosives,

Salaries and Expenses

Federal Prison System, Salaries and Expenses

CHAPTER 3

DEPARTMENT OF DEFENSE

Military Construction

Military construction, Army (emergency)

Military construction, Navy and Marine Corps (emergency)

Military construction, Air Force (emergency)

Military construction, Defense-Wide (emergency)

Family Housing

Family housing construction, Navy and Marine Corps

(emergency)

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Enacted

Request

Base realignment and closure account, 2005 (emergency)

DEPARTMENT OF VETERANS AFFAIRS

House-

Senate-

Passed

May 15

May 22

H.R. 2642

June 30

H.R. 2642

P.L. 110252

415,910

1,354,634

1,202,886

1,278,886

—

120,000

—

557,100

—

120,000

396,377

Sec 1301 Child development centers, Army (emergency)

Sec 1302 Child development centers, Navy (emergency)

Sec 1303 Child development centers, Air Force (emergency)

Sec 1304 Barracks improvements (emergency)

—

70,600

89,820

8,100

200,000

—

200,000

Diplomatic and consular programs (emergency)

Office of Inspector General (emergency)

Educational and cultural exchange program (emergency)

Embassy security, construction, and maintenance (emergency)

1,708,008

—

160,000

1,606,808

7,500

—

76,700

1,413,700

12,500

10,000

76,700

1,465,700

9,500

—

76,700

Contributions to international organizations (emergency)

Contributions for international peacekeeping activities, current

year (emergency)

53,000

66,000

333,600

383,600

373,708

International Broadcasting Operations (emergency)

—

3,000

2,000

International disaster assistance (emergency)

Operating expenses of the US Agency for International

Development (emergency)

Operating expenses of the US Agency for International

Development Office of Inspector General (emergency)

—

200,000

240,000

220,000

41,000

142,000

149,500

150,500

—

4,000

2,009,000

1,747,000

1,962,500

1,882,500

Departmental Administration

Construction, Major Projects

DEPARTMENT OF DEFENSE

General Provisions, Military Construction

CHAPTER 4

SUBCHAPTER A—SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2008

DEPARTMENT OF STATE

Administration of Foreign Affairs

International Organizations

RELATED AGENCY

Broadcasting Board of Governors

BILATERAL ECONOMIC ASSISTANCE

Funds Appropriated to the President

Other Bilateral Economic Assistance

Economic support fund (emergency)

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ŘŖŖŞȱȱȱȱȱŘŖŖşȱȱȱ

Enacted

Request

House-

Senate-

Passed

May 15

May 22

H.R. 2642

June 30

H.R. 2642

P.L. 110252

Department of State

Democracy fund (emergency)

International narcotics control and law enforcement

(emergency)

Migration and refugee assistance (emergency)

Emergency migration and refugee assistance (emergency)

Nonproliferation, anti-terrorism, demining and related

programs (emergency)

Military Assistance

Funds Appropria

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