	Most Recent Developments

The conference committee for military construction appropriations printed itsconference report ( H.Rept. 106-266 ) on July 27, 1999. The conference split the difference between theSenate-approved $8.3 billion and House-approved $8.5 billion amounts. The Senatepassed the conference report on August 3, 1999, by voice vote. The bill became law( P.L. The bill funds construction projectsand real property maintenance of the active Army, Navy & Marine Corps, Air Force,and their reserve components; defense-wide construction; U.S. contributions to theNATO Security Investment Program (formerly called the NATO InfrastructureProgram); and military family housing operations and construction. For FY2000, the Presidentrequested $5.4 billion in funding for the military construction program and advanceappropriations (2) request of $3.1 billion to be scoredin FY2001. The conference report agreed to a total $8.4 billion militaryconstruction appropriation, which is $776 million less than current FY1999 funding. The House passed the conference report on July 29, 1999, by a vote of 412-8. The Committee directed the Pentagon to submit futurerequests for specific military construction projects in support of drug interdiction andcounter-drug activities as a part of the budget request for military construction. Key Policy Issues

		Ongoing Congressional Concerns

Split Funding and Advance Appropriations Proposal for the FY2000 Military Construction Budget Request. Long-term Planning for Military Construction. In hearings on the FY2000 military construction request, legislators expressedcontinuing concern over military construction planning and the sufficiency offunding. Implementation of the Privatization of Military Family Housing Initiative. The President proposes what the Congresscalls an inadequate military construction budget, especially for Guard and Reserveneeds. 103-337 ), however, incorporated Senator McCain's criteria as a "Sense of the Senate" provision, (9) providing that the unrequested projects should be:
1. essential to the DOD's national security mission, 
2. not inconsistent with the Base Realignment and Closure Act,
3. in the services' Future Years Defense Plan (see above),
4. executable in the year they are authorized and appropriated, and
5. offset by reductions in other defense accounts, through advice from theSecretary of Defense. Major Funding Trends

The Administration has proposed to split funding for FY2000 militaryconstruction projects between the FY2000 and the FY2001 budgets. Adding the FY2000 request with theadvance appropriations request brings the total value of the proposed FY2000military construction program to $8.5 billion. This total continues a downward trendfrom the FY1996 level of $11.2 billion, the FY1997 level of $9.8 billion, the FY1998level of $9.3 billion and the FY1999 level of $8.7 billion. 106-52 ) on August 17, 1999. Therest of the proposed FY2000 military construction program would be funded by anadvance appropriations of $3.1 billion in FY2001.
The military construction (MilCon) appropriations bill finances (1) military construction projects in the United States and overseas; (2) military family housing operations and construction;(3) U.S. contributions to the NATO Security Investment Program; and (4) most base realignment andclosure costs.
This paper reviews the appropriations and authorization process for military construction. The congressional debate perennially centers on the adequacy of the President's budget for militaryconstruction needs and the necessity for congressional add-ons, especially for Guard and Reserveprojects. In recent years, Congress has pointed out that the Pentagon has not funded nor plannedadequately for military construction.
The Administration has asked the Congress to approve an unusual funding mechanism for the FY2000 military construction program, in order to fit its defense budget request within the caps seton total discretionary spending in the Budget Enforcement Act of 1997. For FY2000, theAdministration has requested budget authority of $5.4 billion, which is only part of the fundingnecessary to carry out the proposed projects. The rest of the FY2000 military construction programwould be funded by advance appropriations of $3.1 billion in FY2001. (In this advanceappropriations proposal, Congress would approve the $3.1 billion now for the FY2000 program,which would be spent and scored in FY2001.) Adding the split FY2000 request with the advanceappropriations request brings the total value of the proposed FY2000 military construction programto $8.5 billion. This total continues a downward trend from the FY1996 level of $11.2 billion, theFY1997 level of $9.8 billion, the FY1998 level of $9.3 billion and the FY1999 level of $8.7 billion.
Appropriations and authorization hearings on the FY2000 military construction budget have highlighted the following issues:
split funding and advance appropriations proposal for the FY2000 militaryconstruction budget request,
long-term planning for the military construction program,and
implementation of privatization of the military family housinginitiative.
The conference committee for military construction appropriations printed its conference report ( H.Rept. 106-266 ) on July 27, 1999. The conference report agreed to a total $8.4 billion militaryconstruction appropriation, which is $776 million less than current FY1999 funding. The conferencesplit the difference between the Senate- approved $8.3 billion and House-approved $8.5 billionamounts. The House passed the conference report on July 29, 1999, by a vote of 412-8. The Senatepassed the conference report on August 3, 1999, by voice vote. The bill became law ( P.L. 106-52 )on August 17, 1999.
Key Policy Staff
Division abbreviations: FDT = Foreign Affairs, Defense, and Trade.