4546 ), and the Presidentsigned the bill into law on December 2 ( P.L. 107-314 ). Earlier, on October 10, the House, and onOctober 16, the Senate, approved a conference agreement on the FY2003 defense appropriationsbill ( H.R. 5010 ), and the President signed it into law on October 23 ( P.L. The most contentious issue was whether to permitconcurrent receipt of military retired pay and veterans disability benefits. The Houseauthorization bill included a provision to phase in partial concurrent receipt. The White House Statement of Administration Policy on theSenate bill threatened to veto any bill that includes either partial or full concurrentreceipt. The conference agreement on the defense authorization bill provides abenefit payment only to military retirees with a disability determined to be caused bya combat or combat-related injury. Theconference report on the defense appropriations bill does not provide any of themoney, and the appropriations committees did not take up separate legislation toprovide additional funding for the war on terrorism. A number of significant personnel related issues emerged, however. The dispute over concurrent receipt held up a conference agreement on the defense authorization bill until after the November elections. On November 12,during the 107th Congress's lame duck session, authorizers announced a compromiseon the issue that provides a new benefit for retirees who are determined to have adisability caused by a combat or combat-related injury. Subsequent to House and Senate action on the defense authorization bill, however, the issue was resolved in a fashion acceptable to the Administration. The conference agreement on H.R. 4775 , providing supplemental appropriations for FY2002, includes legislative language directing the Army to enterinto a follow-on contract immediately to develop and field a next generation non-lineof sight cannon artillery system by 2008. Other Army Weapons Programs. Thecommittee distributed the savings to a number of other missile defense programs. The authorization conference report also prohibits the use of FY2003 funds for development of a nuclear-armed interceptor for missile defense - the Senate versionof the bill had flatly prohibited development. The authorization conference report includes a revised version of the House provision regarding the Migratory Bird Treaty Act. Defense Appropriations

P.L. 107-248 , H.R. P.L. 107-249 , H.R. 107-206 , H.R. Five other appropriations bills also provide fundsfor national defense activities of DOD and other agencies including:
the military construction appropriations bill, which finances construction of military facilities and construction and operation of military familyhousing, all administered by DOD; 
the energy and water development appropriations bill, which funds atomic energy defense activities administered by the Department ofEnergy;
the VA-HUD-independent agencies appropriations bill, which finances civil defense activities administered by the Federal Emergency ManagementAgency, activities of the Selective Service System, and DOD support for NationalScience Foundation Antarctic research; 
the Commerce-Justice-State appropriations bill, which funds national security-related activities of the FBI, the Department of Justice, and someother agencies; and 
the transportation appropriations bill, which funds some defense-related activities of the Coast Guard. The Administration requested the $10 billion asan unallocated contingency fund for costs of counter-terrorism operations in FY2003,but several members of the Armed Services Committees both in the House and in theSenate have said they would prefer using that money to increase spending on majorweapons programs, especially shipbuilding.
Congress has completed action on the FY2003 defense authorization ( H.R. 4546 ) and defense appropriations ( H.R. 5010 ) bills. The President signed the FY2003 defenseappropriations act into law on October 23 ( P.L. 107-248 ), and he signed the FY2003 defenseauthorization act into law on December 2 ( P.L. 107-314 ). In addition, Congress has approved, andthe President has signed, the military construction appropriations bill ( H.R. 5011 , P.L.107-249 ). The House and Senate Appropriations Committees did not, however, take up bills toprovide $10 billion that the Administration requested as a contingency fund for costs ofcounter-terrorism operations in FY2003.
The conference agreement on the defense appropriations bill establishes final funding levels for key defense programs, and it resolves a number of matters that were at issue during the year. Asthe Administration requested, the bill eliminates funds for development of the Crusader artillerysystem and instead provides increased funding for other Army indirect fire programs. Confereesadded funds to develop an alternative tube artillery system to be deployed by 2008. Earlier, theconference report on the FY2002 supplemental appropriations bill ( H.R. 4775 , P.L.107-206 ) directed the Army to enter into a follow-on contract to use Crusader technology indeveloping such a system.
Conferees on the defense authorization bill reached agreement on several contentious issues, though some may recur next year. The key issue, which held up the conference agreement until afterthe mid-term elections, was whether to permit concurrent receipt of military retired pay and veteran'sdisability benefits. The Senate authorization bill included a provision to allow immediate, fullconcurrent receipt, while the House bill phased in a program to allow concurrent receipt for thosewith 60% or greater disabilities. The White House threatened to veto a bill that included eitherprovision. The conference agreement provides a new benefit, paid by the Defense Department, tomilitary retirees who have a disability determined to be caused by a combat or combat-related injury.
The conference agreement on the defense authorization also resolved a number of other issues. The agreement includes amended versions of Senate provisions tightening oversight of missiledefense programs; it drops a House provision concerning application of the Endangered Species Actto defense facilities, but includes a provision concerning the Migratory Bird Treaty Act; it prohibitsFY2003 funds from being used to develop nuclear armed interceptors for missile defense; it providesfunds for developing a nuclear-earth penetrator warhead, but only after the Defense Departmentsubmits a report on the project that includes a review of non-nuclear alternatives; and it drops aSenate provision permitting service members to have access to abortions at military facilitiesoverseas.
Key Policy Staff