	Most Recent Developments

Early in the morning on October 7, 2004, a conference agreement on the FY2005 defenseauthorization bill ( H.R. 4200 ) was announced. The House approved the conferencereport (by a vote of 359-14) on October 8, and the Senate approved it (by unanimous consent) onOctober 9. The President signed the bill into law ( P.L. 108-375 ) on October 28. On the key issues,conferees rejected a House provision to delay military base closures; authorized purchases, but notleasing, of Boeing KC-767 or other refueling aircraft; increased statutory caps on Army and MarineCorps active duty end-strength in FY2005 by 23,000; rejected a House provision that would limitpurchases of defense goods from nations that require offsets for purchases of U.S. weapons; andincreased benefits for 62-and-older survivors of military retirees. Earlier, on July 22, 2004, both theHouse (by a vote of 410-12) and the Senate (by a vote of 96-0) approved a conference agreement onthe FY2005 defense appropriations bill ( H.R. 4613 ). The President signed the bill intolaw on August 5, 2004 ( P.L. 108-287 ). The conference appropriations agreement provides $416.9billion in new budget authority, including $391.2 billion for regular Department of Defense programsand $28.2 billion in emergency funding, of which $25 billion is for operations in Iraq andAfghanistan. The $391.2 billion in regular defense appropriations is about $1.7 billion below theAdministration request. Conferenceoutcome: The conference agreement on the energy and water appropriations bill,included in the consolidated appropriations bill, H.R. Side by Side Comparison of Key Provisions: Defense Authorization 

		Defense Appropriations Conference Agreement

The conference agreement on the FY2005 defense appropriations bill,approved in the House and Senate on July 22, 2004, and signed into law on August5, provides $25 billion for operations in Iraq and Afghanistan, and resolves a numberof major weapons issues. The main issue in Congress was how much flexibility to provide the DefenseDepartment in allocating the funds among budget accounts. The conferenceagreement provides $3.8 billion of the money in a flexible transfer account, called theIraq Freedom Fund, and the remainder in regular appropriations accounts. (2) Of the $3.8billion in the Iraq Freedom Fund, $1.8 billion is for classified programs, so $2 billionis available for unforseen expenses. The defense billincludes emergency funds for a number of other programs, including $685 millionfor State Department operations in Iraq,$95 million to respond to the humanitariancrisis in the Darfur region of Sudan and Chad, $400 million to fight wild fires in theWest, $50 million for security at the upcoming Democratic and Republican politicalconventions, and $26 million to make up a shortfall in Federal Judiciary defenderservices. Navy DD(X) and LCS ship construction. Major Weapons Programs. Approved requested funding for the Robust Nuclear EarthPenetrator and for other nuclear weapons R&D. Amendments Agreed To. Provided $228 million for the Space-Based Radar program,$100 million below the request. The appropriationsconference report cut $300 million. This year, the issue was again on the agenda. Notwithstanding the House and Senate votes on the defense authorization bill,however, the committee-reported and House-passed version of the Energy and WaterAppropriations bill ( H.R. The agreement followed the House and eliminates funds for the RobustNuclear Earth Penetrator and the Advanced Concepts Initiative. Congressional Action.
Early on the morning on October 7, 2004, a conference agreement on the FY2005 defenseauthorization bill ( H.R. 4200 ) was announced. The House approved the conferenceagreement by a vote of 359-14 on October 8, and the Senate approved it by unanimous consent onOctober 9. The President signed the bill into law ( P.L. 108-375 ) on October 23. On the key issues,conferees rejected a House provision to delay military base closures; authorized purchases, but notleasing, of Boeing KC-767 or other refueling aircraft; increased statutory caps on Army and MarineCorps active duty end-strength in FY2005 by 23,000; rejected a House provision that would limitpurchases of defense goods from nations that require offsets for purchases of U.S. weapons; andincreased benefits for 62-and-older survivors of military retirees.
Earlier, on July 22, 2004, both the House (by a vote of 410-12) and the Senate (by a vote of96-0) approved a conference agreement on the FY2005 defense appropriations bill( H.R. 4613 ). The President signed the bill into law ( P.L. 108-287 ) on August 5, 2004. The conference agreement provides $391.2 billion for regular Department of Defense programs,about $1.7 billion below the Administration request, $25 billion in emergency funds for operationsin Iraq and Afghanistan, $685 million for State Department operations in Iraq, $95 million forassistance to refugees in Sudan and Chad, $500 million for fire fighting, $50 million for security atthe party conventions, and $26 million for a federal judiciary shortfall. Later, the energy and waterappropriations bill, included in the consolidated appropriations bill ( H.R. 4818 ),rescinded $300 million in regular FY2005 defense appropriations.
The appropriations conference agreement resolves what was, perhaps, the major defense issuein Congress this year: whether to provide additional funds for ongoing operations in Iraq andAfghanistan. On May 12, after considerable prodding from Congress, the Administration requested$25 billion to cover costs for the next few months. The key issue in Congress then became howmuch flexibility to grant the Defense Department in allocating the funds. None of the congressionaldefense committees agreed to the Administration request for full funding flexibility. The conferenceagreement on the appropriations bill provides $3.8 billion of the funds in a flexible transfer account,of which $1.8 billion is for classified programs, leaving $2 billion available for unforseen expenses. The remainder is provided in regular defense appropriations accounts subject to standard proceduresrequiring advance congressional approval if funds are shifted between accounts. The appropriationsconference report also resolves a number of major weapons issues. It makes substantial cuts in a fewhigh-profile weapons programs, including the Space-Based Radar and the TransformationalCommunications Satellite. It approves funding to begin construction of the Navy DD(X) destroyerand Littoral Combat Ship.
One other major defense policy issue was resolved in action on the energy and waterappropriations bill. In floor votes on the defense authorization bill, both the House and the Senaterejected amendments to eliminate funds for the Robust Nuclear Earth Penetrator nuclear warheadand new low-yield nuclear weapons development. The conference agreement on the energy andwater appropriations bill, however, following the House, eliminates funds for both programs.
Key Policy Staff