107-117 , the FY2002 DOD Appropriations Act( H.R. Status (1)

On January 10, 2002, the President signed P.L. Although P.L. Total Funding for National Defense in FY2002

Total funding appropriated for the national defense function in FY2002, including the $3.5 billion of funding from the Emergency Terrorism Response supplemental that wasallocated in the DOD bill, is $346.8 billion (see Table 2 ). (6)
Combined with the emergency funding allocated to non-defense agencies and the impact of the recession that began in the spring of 2001, this additional funding for Defense requiredthat Congress set aside earlier budgetary guidelines designed to protect the surplus generatedby the Social Security and Medicare trust funds and return to deficit spending (see below). 3338 , P.L. 3338 ( H.Rept. Before that, the week-long evacuation of some congressional offices for anthraxtesting, a dispute between the Administration and Congress about the total amount fordiscretionary spending, and congressional passage of the $40 billion emergency supplementalfor FY2001 in response to the terrorist attacks on the World Trade Center and the Pentagonall moved consideration of the Defense bill to late in the congressional session. There has been broad bipartisan support for the enactment ofsignificant additional resources for recovery and response to the September 11 terrorismattacks. Nevertheless, sharp differences emerged as to whether the original $40 billionpackage is sufficient, whether the allocations matched the most critical priorities, especiallyregarding homeland security needs, and whether New York and other jurisdictions directlyaffected by the attacks are received adequate funds. DOD Allocations under $40 billion EmergencyTerrorism Response Supplemental
Notes: 
a. P.L. After the attacks of September 11, however, withthe new concern about combating terrorism, and the ongoing conflict in Afghanistan, the fiscal debate shifted from the potential problem of tapping the social securitysurplus to adding funding for defense programs and homeland security. e. Reflects congressional actions as of October 4, 2001, including passage of the Airline AssistanceAct, the $40 billion Emergency Anti-Terrorism supplemental, and agreement between Congressand the Administration to hold total discretionary spending to $686 billion in 2002. 
f. Reflects estimate by budget committee of potential effect on the surplus of a recession; theestimate is higher than the Congressional Budget Office's estimates that are based on the1990-91 recession - reducing the surplus by $47 billion in the first year and $63 billion in thesecond year; see Congressional Budget Office, The Budget and Economic Outlook , January2001, p. 102.
g. Reflects agreement between the Administration and Congress reached at the end of Septemberthat total discretionary spending would be held to $686 billion in FY2002, $24.2 billion morethan was included in the Concurrent Budget Resolution passed by Congress; that total includes$18.4 billion for defense, $2.2 billion for emergencies, and $4 billion for education. Action on the FY2002 DOD Appropriations Bill

On December 20, 2001, the House and the Senate passed the conference versionof H.R. 107-107 , H.Rept.107-333 , see Table 1b ). The Act provides the $343.3 billion as requested by theAdministration, an 11% increase over FY2001 without taking into account fundingfrom the emergency supplemental. Conference Version of FY2002 DOD Authorization Act

The conference version of S. 1438 resolve several contentious issues as follows:
Approves the President's request for another round of base closures, but delayed the date to 2005, and changed the procedures proposed byDOD;
Authorizes the Secretary of the Navy to close the trainingfacilities at Vieques (and transfer the facility to the Department of the Interior) aftercertifying that alternative training sites are available;
Provides $7.0 billion for ballistic missile defense as requestedby the President but authorizes the President to transfer $1.3 billion of that total toefforts to combat terrorism, permitting the President to fund the requestfully;
Adopts provisions that reduced non-readiness related spendingfor Operation and Maintenance by $2.1 billion and Working Capital Funds by $400million to reflect savings in management reforms, fuel and utility prices, foreigncurrency decreases. 107-117 , H.R. Note that this doesnot include defense-related activities of the Department of Energy and other agencies- with all defense-related activities added, the April 9 budget projected $325.1 billionin FY2002 for the national defense budget function. Passed by the House and Senate on September 14, 2001. 107-107 )on December 28, 2001.
On June 27, the Administration submitted an amended fiscal year 2002 defense budget request to Congress. The request totaled $343.5 billion in funding for the national defense budget function,$32.9 billion above the amount originally enacted for FY2001, an 11% increase. The total includedfunding for the Department of Defense and for defense-related activities of the Department of Energyand other agencies. Both House and Senate versions of the DOD appropriations bill provided thetotal for national defense that the Administration requested. To accommodate that level, Congressadjusted limitations in the 1997 Balanced Budget Act and set aside provisions in this year'sconcurrent budget resolution that were designed to protect the social security surplus.
With the onset of a recession last spring, along with higher defense spending and additional federal spending in response to the terrorist attacks, and lower revenues due to the tax cut, thegovernment is expected to run a deficit as well as use all of the surplus generated by social securityrevenues. With the destruction of the World Trade Center and the extensive damage to the Pentagonby terrorists on September 11th, congressional concerns shifted from whether the overall federalbudget could accommodate higher defense expenditures without spending the budget surplus toadding funding for defense programs that combat terrorism.
Funding to aid the victims and provide for recovery from the attacks, for the ongoing conflict in Afghanistan, and for other programs to combat terrorism, was approved in the $40 billionEmergency Terrorism Response supplemental appropriations act ( P.L. 107-38 ) that passed CongressSeptember 14, 2001. Of that total, DOD receives $17.5 billion of the total funding in the EmergencyTerrorism Response supplemental, about 44% of the total (see P.L. 107-117 and H.Rept. 107-350 )with about 56% going to other agencies. Allocation of half of the $40 billion was included in P.L.107-117 / H.R. 3338 , the FY2002 DOD appropriations act, which was signed by thePresident on January 10, 2002.
Although there had been broad bipartisan support for adding funds for recovery and response to the September 11 terrorism attacks, sharp differences emerged about whether the total amountwas sufficient and whether the allocations matched the most critical priorities, particularly for NewYork and other homeland security needs. The President, however, threatened to veto any spendingmeasure this year that went beyond the $40 billion. Faced with this threat, both the House and theSenate rejected proposals to add more emergency funding to H.R. 3338 when theypassed the bill. Instead, within the $20 billion total that was acceptable to the President, theconference bill shifts $3.4 billion of the $7.3 billion funds allocated to Defense by the Administrationto homeland security and recovery of New York.
The conference version of the National Defense Authorization Act for FY2002 was passed by the House and the Senate on December 13, 2001, and signed by the President on December 28, 2001( P.L. 107-107 / S. 1438 , H.Rept. 107-333 ). The Act provides $343.3 billion as requestedby the Administration and authorizes another round of base closures but delays the date to 2005,settling the chief issue in contention.
Key Policy Staff
Abbreviations:
FDT = Foreign Affairs, Defense, and Trade Division
G&F = Government and Finance Division
RSI = Resources, Science, and Industry Division