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109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-388

======================================================================



 
MAKING EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR THE FISCAL YEAR ENDING 
               SEPTEMBER 30, 2006, AND FOR OTHER PURPOSES

                                _______
                                

 March 13, 2006.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Lewis of California, from the Committee on Appropriations, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 4939]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making emergency 
supplemental appropriations for the fiscal year ending 
September 30, 2006, and for other purposes.

                              BILL SUMMARY

    The bill recommended by the Committee includes 
$91,832,491,000 in emergency supplemental appropriations for 
fiscal year 2006, as detailed below. The recommendation is 
$388,094,000 below the President's supplemental request.

       TITLE I--GLOBAL WAR ON TERROR SUPPLEMENTAL APPROPRIATIONS


                               CHAPTER 1


                       DEPARTMENT OF AGRICULTURE


                      Foreign Agricultural Service


                     PUBLIC LAW 480 TITLE II GRANTS

    The Committee provides $350,000,000, to remain available 
until expended, for Public Law 480 Title II grants.

                               CHAPTER 2


                    DEPARTMENT OF DEFENSE--MILITARY


                                Overview

    The request for supplemental appropriations for the 
Department of Defense is intended for ongoing military and 
intelligence operations in support of Operation Iraqi Freedom 
(OIF), Operation Enduring Freedom (OEF), and the larger Global 
War on Terror (GWOT). The Committee recommendations in this 
chapter are intended to address emergency, high-priority needs 
of the United States military and intelligence community in 
prosecuting the war against terror. In some cases, the 
Committee has reduced or eliminated funding for certain 
activities that are either not emergency in nature; cannot be 
obligated and/or executed in a timely fashion; or which involve 
new policy and program decisions that should be addressed in 
the regular authorization and appropriations bills for fiscal 
year 2007.
    The Committee has also identified a number of needs that 
were not adequately addressed in the budget request, and 
responded accordingly. Major initiatives recommended by the 
Committee include:
          --an increase of $434,000,000 to help reset the Army 
        force; funding for this purpose in Operation and 
        Maintenance, Army totals $1,207,000,000;
          --an increase of $100,000,000 to help reset the 
        Marine Corps force; funding for this purpose in 
        Operation and Maintenance, Marine Corps totals 
        $190,800,000;
          --in order to enhance the recapitalization of the 
        Army, an increase of $850,000,000 to ensure that Army 
        tracked combat vehicles such as Abrams tanks and 
        Bradley fighting vehicles are upgraded for our troops 
        in the field and in the Army National Guard;
          --in order to enhance the recapitalization of the 
        Marine Corps, an increase of $360,000,000 in equipment 
        for the Corps, based on its highest unfunded 
        priorities; and
          --an increase of $273,680,000 in aircraft for the Air 
        Force, including 8 additional Predators, electronic 
        countermeasures to protect C-17 aircraft, and funding 
        to ensure the continuation of the C-17 production line.
    In addition to providing increased levels of funding for 
new and refurbished equipment, and for enhanced force 
protection, the Committee recommendation fully funds the budget 
request of $1,957,786,000 to procure and develop equipment to 
defeat Improvised Explosive Devices (IEDs).
    Within the military personnel accounts, the Committee 
recommendation fully funds the request of each service, 
including full funding for SGLI and death gratuity benefits, 
and provides additional funds for the Navy and the Army Reserve 
in order to meet identified shortfalls in resources.
    Overall, the Committee recommendation remains within the 
total funding level requested by the President, but 
restructures the request to maximize support to our men and 
women in uniform. It meets important force protection, 
equipment, and personnel needs while fully funding the 
operational requirements to conduct the Global War on Terror.

                       Committee Recommendations

    In title I, chapter 2, the Committee recommends total new 
appropriations of $67,557,241,000. Funding by category is as 
follows:

Military Personnel......................................  $9,933,381,000
Operation and Maintenance...............................  36,964,299,000
Procurement.............................................  17,679,451,000
Research, Development, Test and Evaluation..............   1,002,053,000
Revolving and Management Funds..........................     502,700,000
Other Department of Defense Programs....................   1,316,482,000
Related Agencies........................................     158,875,000
Transfer Authority...................................... [2,000,000,000]

                            CLASSIFIED ANNEX

    The Committee's recommendations for intelligence activities 
are published in a separate and detailed classified annex. The 
intelligence community, Department of Defense, and other 
organizations are expected to fully comply with the 
recommendations and directions in the classified annex 
accompanying this bill.
    The following table summarizes, by appropriations account 
or general provision, the Committee's recommendations compared 
to the President's request.


                         REPORTING REQUIREMENTS

    The Committee directs the Secretary of Defense to provide a 
report to the congressional defense committees within 30 days 
of enactment of this legislation on the allocation of the funds 
within the accounts listed in this chapter. The Secretary shall 
submit updated reports 30 days after the end of each fiscal 
quarter until funds listed in this chapter are no longer 
available for obligation. The Committee directs that these 
reports shall include: a detailed accounting of obligations and 
expenditures of appropriations provided in this chapter by 
program and subactivity group for the continuation of the war 
in Iraq and Afghanistan; and a listing of equipment procured 
using funds provided in this chapter. The Committee expects 
that in order to meet unanticipated requirements, the 
Department of Defense may need to transfer funds within these 
appropriation accounts for purposes other than those specified 
in this report. The Committee directs the Department of Defense 
to follow normal prior approval reprogramming procedures should 
it be necessary to transfer funding between different 
appropriations accounts in this chapter.
    Additionally, the Committee directs that the reporting 
requirements of section 9010 of Public Law 109-148, the 
Department of Defense Appropriations Act, 2006, regarding 
military operations and stability in Iraq shall apply to the 
funds appropriated in this Act.

                            TROOPS SUPPORTED

    The Committee recommended funding level supports the 
following average numbers of troops deployed to support 
Operation Enduring Freedom (OEF) and Operation Iraqi Freedom 
(OIF) through fiscal year 2006:

----------------------------------------------------------------------------------------------------------------
                                                                              Marine
                                                     Army         Navy        Corps      Air Force   Total Force
----------------------------------------------------------------------------------------------------------------
OEF............................................       15,500          413        1,825       20,357       38,095
OIF............................................      131,900       19,500       25,648       12,730      189,778
Total..........................................      147,400       19,913       27,473       33,087     227,873
----------------------------------------------------------------------------------------------------------------
Note: Totals include all forces deployed in theater, not only in Iraq and Afghanistan.

                       NATIONAL GUARD AND RESERVE

    The budget requested a total of $222,070,000 for military 
personnel, $278,700,000 for operation and maintenance, and 
$2,285,287,000 for procurement for Army National Guard and 
Reserve forces. In addition, the budget requested a total of 
$123,879,000 for military personnel and $341,147,000 for the 
operation and maintenance accounts of the other military 
services.
    The Committee is aware that the validated requirements for 
the Army National Guard and the Army Reserve for their 
contribution to Operation Iraqi Freedom and Operation Enduring 
Freedom exceed the amount requested and has provided an 
additional $320,000,000 as follows to meet these requirements:

Reserve Personnel, Army.................................     $40,000,000
Operation and Maintenance, Army.........................    $130,000,000
Procurement of WTCV, Army...............................    $150,000,000

    The Committee recommends an increase of $40,000,000 for 
Reserve Personnel, Army to address shortfalls in its recruiting 
and retention programs. In addition, the Committee recommends 
an increase of $130,000,000 in Operation and Maintenance, Army 
and $100,000,000 in Procurement of Weapons and Tracked Combat 
Vehicles, Army for the Abrams Tank Integrated Management (AIM) 
program to support fielding of National Guard Brigade Combat 
teams. The Committee has also provided an additional 
$50,000,000 for 42 Bradley ODS vehicles to complete two Army 
National Guard Brigade Combat teams.
    The Committee directs that not less than $3,571,083,000 of 
the funds included in this bill shall be provided for the 
National Guard and Reserve forces to prosecute the Global War 
on Terror.

                          ARMY COMBAT BRIGADES

    The Department of Defense's fiscal year 2007 budget 
submission proposes to establish a total of 70 active Army and 
National Guard combat brigades, a reduction of 7 brigades from 
the level assumed under previous plans. Most of the change 
would occur in the Army National Guard's force structure plans; 
the Guard would field 28 combat brigades instead of 34 proposed 
previously. Even though further review may ultimately lead to 
the conclusion that 70 combat brigades is sufficient to 
implement the Army's force generation program, the Committee is 
concerned about reports of a lack of consultation with National 
Guard leaders about the proposed changes in the Army Guard 
combat force structure. As such, the Committee directs the 
National Guard Bureau to provide to the congressional defense 
committees a report detailing: the effects of the reduction in 
Army Guard combat brigades on its ability to participate in 
future combat operations; the effect this reduction in combat 
brigades will have on the Guard's ability to generate forces 
under the Army's force generation model; the effect of the 
change in the number and type of brigades on its ability to 
respond to homeland security missions; the effect of the 
proposal to restructure and increase the number of Guard units 
designated as combat support and combat service support 
brigades; and, the decision process used to develop the current 
proposal. This report should be submitted not later than May 1, 
2006.

                           MILITARY PERSONNEL

    The Committee recommends a total of $9,933,381,000, an 
increase of $340,000,000 above the President's request, for the 
incremental costs of pay and allowances of the active duty and 
Reserve personnel deployed overseas, retained on active duty to 
support military operations in Iraq and Afghanistan, or 
participating in or supporting the Global War on Terror. These 
include Imminent Danger Pay, Family Separation Allowance, 
Hardship Duty Pay, Basic Allowance for Housing, Foreign 
Language Proficiency Pay, Subsistence, and other military 
personnel requirements. In addition, funds are included for 
casualty benefits associated with the death or traumatic injury 
of service members.
    The following table provides details of the recommendations 
for the military personnel accounts:


                       OPERATION AND MAINTENANCE

    The Committee recommends $36,964,299,000 for operation and 
maintenance accounts, a reduction of $1,771,400,000 below the 
President's request. Funds are provided for personnel support 
requirements including travel, subsistence, individual and 
organizational and equipment, reserve component activation 
costs, and incremental civilian personnel costs. Increases for 
operating support costs include funds for military operations 
including spare parts and consumable supplies, transportation, 
pre-deployment training and training in theater, forward base 
operating costs, communications, vehicle maintenance, and 
contracts for linguists, logistics and infrastructure support. 
In addition, funds are provided within the operation and 
maintenance accounts to address fuel price increases.
    The following table provides details of the recommendations 
for the operation and maintenance accounts:


                    LONG-TERM EQUIPMENT REPAIR COSTS

    The Department of Defense requested approximately 
$8,000,000,000 for repairing and replacing equipment used in 
Iraq and Afghanistan under the programs known as Army and 
Marine Corps ``reset''. The Committee recommends a total of 
$8,900,000,000 for these programs.
    The Committee is concerned that the Department has failed 
to provide the Congress with a comprehensive reset plan to 
serve as context for its recommendations. Reports indicate that 
the Army and Marine Corps equipment repair and reconstitution 
costs associated with the Global War on Terror will amount to 
multiple billions of dollars over the next several years. So 
that these costs may be adequately reviewed in the future, the 
Committee directs the Office of the Secretary of Defense to 
provide the congressional defense committees with detailed 
equipment reset cost estimates for the Army and Marine Corps. 
This report should itemize funding allocated to reset programs 
from previous appropriations and estimate future costs 
anticipated over the next three years. The Committee directs 
that this report be submitted not later than May 1, 2006.

                            LIFT AND SUSTAIN

    Within the Operation and Maintenance, Army account, the 
Committee has reduced funding for Lift and Sustain by 
$104,000,000 due to the fact that these funds are intended for 
support of Iraq security forces. Funding for this activity 
should be provided from the Iraq Security Forces Fund.

                Operation and Maintenance, Defense-Wide

    The Committee recommends $3,259,929,000 for Operation and 
Maintenance, Defense-Wide programs. Included in this 
recommendation is $1,200,000,000 to reimburse Pakistan, Jordan, 
and other key cooperating nations for logistical and military-
related support provided, or to be provided, to U.S. military 
operations in connection with the Global War on Terror. This 
recommendation is $300,000,000 below the request since these 
funds are not needed until fiscal year 2007.

                           Iraq Freedom Fund

    The Committee recommends no appropriation for the Iraq 
Freedom Fund due to an inadequate justification of the need for 
these funds.

               Afghanistan and Iraq Security Forces Funds

    The Committee recommendation fully funds the President's 
request to train and equip the new security forces of 
Afghanistan ($1,851,833,000) and Iraq ($3,007,000,000). The 
Committee agrees the training and equipping of indigenous 
security forces will facilitate self-governance and help lead 
to a drawdown in U.S. troops. However, the Committee has 
deferred consideration of infrastructure funding for the police 
in Afghanistan (-$346,000,000) and Iraq (-$696,000,000) pending 
submission of more complete justification materials.
    The Committee recommendation provides the requests in both 
funds for military infrastructure. However, in order to ensure 
maximum oversight of these funds, the Committee directs that 
none of the funds recommended in these accounts be obligated 
for military infrastructure until 15 days after the Secretary 
of Defense submits a financial plan to the congressional 
defense committees that includes the following:
          1. a detailed, project-by-project description of the 
        infrastructure that would be partly or completely 
        funded through these accounts, and associated cost 
        estimates;
          2. a justification of the military and/or security 
        requirements for each project;
          3. a description of the life cycle costs for these 
        projects, and an explanation of the expected funding 
        sources to cover these costs;
          4. a description of the plans of the Afghan and Iraqi 
        governments to provide their own resources to build 
        infrastructure for their respective militaries, and the 
        funding commitments that have been made by those 
        governments;
          5. an explanation of the contracting and/or grant 
        procedures that will be used for the military 
        infrastructure programs, including a description of the 
        financial controls that will be put into place in 
        connection with these funds; and
          6. a description of the security needs associated 
        with these projects, including how those needs will be 
        met, the funding required for security, the anticipated 
        source of these funds, and the impact (if any) of the 
        possible requirement to provide such security on the 
        operations of the military coalitions in Afghanistan 
        and Iraq.
    Following submission of the initial report, the Committee 
directs the Secretary of Defense to provide updated reports to 
the congressional defense committees each fiscal quarter on the 
progress being made to implement the financial plan, as well as 
any changes in projects or timing based on the original 
projections. This report should also provide the status of 
obligations and expenditures for the military infrastructure 
programs of each fund.
    The Committee supports efforts to establish robust, well-
equipped security forces in Iraq and Afghanistan that are 
capable of independent action. The recommendation to require 
reporting and oversight will assist in that regard, and is 
intended to strengthen the management of these programs and 
ensure their success. In that regard, the Committee has also 
recommended an additional $5,000,000 for the Inspector General 
in order to facilitate his oversight activities in the region.

                 COMMANDER'S EMERGENCY RESPONSE PROGRAM

    The Committee recommendation provides up to $423,000,000 in 
authority for the Commander's Emergency Response Program (CERP) 
and includes language as requested by the President. While the 
Committee reiterates its support for this war-fighting tool, it 
is concerned that the scale and scope of this program has grown 
beyond that originally intended by the Congress. When 
initiated, the program was designed to address urgent, small-
scale relief and reconstruction projects for the benefit of the 
people of Iraq and Afghanistan. Details provided in quarterly 
reports seem to indicate a gradual shift from its fundamental 
mission. The Committee understands, and supports, the guidance 
from both the Commanding General, Multi-National Force--Iraq 
(CG MNF-I) and the Under Secretary of Defense (Comptroller) 
requiring prior-approval and reporting requirements based on 
funding thresholds for individual projects. The Committee 
directs the Department of Defense to include in its quarterly 
reports to the Congress a separate heading that consolidates 
and separately identifies those projects that required and 
subsequently received approval from the CG MNF-I and 
notification to the Comptroller. In addition, the report should 
include a justification of how these projects meet requirements 
as prescribed in the current CERP guidance that has been issued 
by the Force Commander.

                              PROCUREMENT

    The Committee recommends a total of $17,679,451,000, an 
increase of $1,282,192,000 to the request, for various 
procurement appropriations.
    The following table provides details of the recommendations 
for these accounts:


                          ITEMS NOT SUPPORTED

    The Committee has recommended reductions in funding for a 
number of items requested for procurement based on an 
assessment that they did not meet an emergency requirement, or 
could not be procured and fielded in a timely manner. These 
funds have been reallocated to meet more urgent requirements.

                               M1 ABRAMS

    The supplemental budget request included only $3,000,000 
for conversion of M1A1 tanks to M1A1 Abrams Integrated 
Management (AIM) configuration. The M1A1 AIM program rebuilds 
the tanks to ``like new'' status with improved survivability, 
lethality and situational awareness. The M1A1 AIM tanks are 
fielded primarily to Army National Guard brigades. The 
supplemental request included no funding for M1A2 System 
Enhancement Package (SEP), and no funding for the Tank Urban 
Survival Kit (TUSK). The Committee is aware the Army has 
continuing requirements to convert early model Abrams tanks to 
the M1A2 SEP configuration; to continue the fielding of M1A1 
AIM tanks to the Army National Guard; and to field Tank Urban 
Survival Kits (TUSK) for tanks operating in Iraq. The M1A2 tank 
provides an enhanced Gunner's and Commander's Independent 
Thermal Viewer (CITV) incorporating 2nd Generation Forward 
Looking Infrared (FLIR), an embedded computer with Force XXI 
Battle Command Brigade and Below (FBCB2), and integrated global 
positioning system. TUSK is a field installed kit that adds 
reactive side armor, a Common Remote Operated Weapon Station 
(CROWS), a situational awareness camera, a loader's gun shield, 
a loader's thermal weapon sight, and an infantry phone. Without 
additional funding, the Army faces a potential 8 month break in 
M1A2 SEP production. The Committee is aware of the continuing 
heavy usage of tanks in Iraq and supports the uninterrupted 
production of M1A2 SEP tanks, M1A1 AIM tanks, and the fielding 
of TUSK for operations in Iraq. Accordingly, the Committee 
recommends additional funding of $300,000,000 for M1A2 SEP, 
$230,000,000 for M1A1 AIM, and $100,000,000 for TUSK.

          HIGH MOBILITY MULTI-PURPOSE WHEELED VEHICLES (HMMWV)

    The supplemental budget request includes two lines in Other 
Procurement, Army, for High Mobility Multi-Purpose Wheeled 
Vehicles (HMMWV). The first is $410,000,000 to procure 3,156 
new up-armored HMMWVs for active component units as well as to 
procure various Air Force and Marine Corps Expanded Utility 
Trucks; and 42 HMMWVs for the Army Material Command Logistical 
Support Elements. The second request is $931,900,000 for the 
HMMWV Recapitalization Program (RECAP) which repairs older 
model HMMWVs to ``like new'' status. The Committee supports the 
procurement of new, up-armored HMMWVs, but does not agree with 
the level of effort in the HMMWV RECAP as the repaired vehicles 
are not Level I armored and are not of immediate use in combat 
operations in Afghanistan or Iraq. The Committee recommendation 
reallocates $480,000,000 from the HMMWV RECAP program to the 
procurement of new up-armored HMMWVs for a total of 
$890,000,000. The amount remaining in the HMMWV RECAP line is 
$451,900,000 and supports production of 750 vehicles per month.

                 PRE-FABRICATED RE-LOCATABLE BUILDINGS

    The supplemental budget request includes $135,000,000 to 
purchase pre-fabricated, re-locatable buildings to support Army 
requirements for Echelon Above Brigade (EAB) combat and combat 
service support facilities; combat aviation brigade facilities; 
living quarters; unit operations; and maintenance facilities, 
at various locations. The buildings are not directly related to 
the Global War on Terror. The Committee recognizes the 
requirement, but questions the inclusion of these items in this 
supplemental funding request. Accordingly, the Committee 
recommends no funding for pre-fabricated, re-locatable 
buildings. The Committee has reapplied the funding to more 
urgent needs.

                       AV-8 SERIES MODIFICATIONS

    The Committee defers funding to accelerate support 
equipment related to installation of the Open Systems Core 
Avionics Requirement (OSCAR) system (-$6,800,000) and the day 
attack upgrade (-$15,500,000) for the AV-8 aircraft. Neither of 
these efforts appears to be urgently needed in Operation Iraqi 
Freedom or Operations Enduring Freedom, and neither would 
provide equipment to the field within two and a half years. The 
Committee believes these efforts can be funded in the regular 
appropriations cycle and not as part of an urgent supplemental 
appropriations bill.

                            WAR CONSUMABLES

    The Committee defers funding for the procurement of 196 
external fuel tanks for F/A-18 aircraft, a reduction of 
$16,100,000 from the budget request. The Committee has received 
no evidence that these are urgently needed to support current 
operations. Consequently, the Committee believes these items 
would be more appropriately considered as part of the regular 
appropriations process.

                            KC-130J AIRCRAFT

    The recommendation includes $126,600,000 to procure two KC-
130J aircraft for Marine Corps GWOT operations, and an 
additional $8,500,000 under ``Spares and Repair Parts'' for 
associated spares. These aircraft are needed to replace battle 
losses.

                          NAVY RIVERINE FORCE

    The Committee recommendation defers the $69,901,000 
requested in Navy procurement accounts for establishment of a 
new riverine capability. This program is under the 
administrative control of the Naval Expeditionary Combat 
Command (NECC). Planning efforts for the program were only 
initiated last summer, and the NECC was only established in 
January 2006. The Committee understands that funds for the 
first riverine squadron will be the subject of a fiscal year 
2006 above threshold reprogramming. This squadron would replace 
existing Marine Corps capability currently deployed in 
Operation Iraqi Freedom. Funds requested in this supplemental 
would finance the second and third squadrons.
    The Committee intends to review this new capability 
carefully over the coming months. While endorsed by the recent 
Quadrennial Defense Review, the concept of operations is still 
under development, and equipment requirements, including force 
protection equipment, have not been specified or validated. The 
Committee defers these funds without prejudice, and will work 
with the Navy and the Congressional authorization committees in 
the coming months to validate the mission and funding 
requirements for the program. Specific budget lines affected by 
this recommendation are as follows:

----------------------------------------------------------------------------------------------------------------
                      Appn                        Line                     Name                      Reduction
----------------------------------------------------------------------------------------------------------------
OPN............................................      19  Chemical Warfare Detectors.............      $2,200,000
OPN............................................      24  Standard Boats.........................      28,850,000
OPN............................................      53  NAVSTAR GPS Receivers..................         150,000
OPN............................................      77  Communications Items Under $5 million..       1,800,000
OPN............................................     123  Construction and Maintenance Equipment.       1,860,000
OPN............................................     125  Tactical Vehicles......................      15,200,000
OPN............................................     128  Civil Engineering Support Items Under         4,700,000
                                                          $5 Million.
OPN............................................     130  Material Handling Equipment............         760,000
OPN............................................     146  Spares and Repair Parts................         730,000
                                                ----------------------------------------------------------------
Subtotal, OPN..................................  ......  .......................................      56,250,000
WPN............................................      26  Small Arms and Weapons.................       5,101,000
PANMC..........................................      14  Small Arms & Landing Party Ammo........       7,740,000
                                                ================================================================
        Total Reduction........................  ......  .......................................      69,091,000
----------------------------------------------------------------------------------------------------------------

                       C-17 AIRCRAFT PROCUREMENT

    The fiscal year 2007 budget request proposes no advance 
procurement for C-17 aircraft in 2008, effectively ending 
production with 180 aircraft at the end of the current 
multiyear program. The Committee is concerned that the effects 
of combat operations and a high operational tempo on the C-17 
fleet are greater than previously recognized, and that 
replacements may ultimately be needed. In addition, the 
Committee is aware the Department of Defense is reviewing 
further requirements for C-17 aircraft beyond the planned 
inventory of 180. Due to the importance of these airlift 
aircraft in the Global War on Terror, and to ensure 
consideration of all available options, the Committee 
recommends an additional $100,000,000 in Aircraft Procurement, 
Air Force to support advance procurement of fiscal year 2008 C-
17 aircraft.

 MQ-1 PREDATOR INITIAL EQUIPMENT--AIR FORCE SPECIAL OPERATIONS COMMAND

    The Committee recommends $76,680,000 to procure eight MQ-1 
Predator aircraft, two ground control stations, one dual launch 
and recovery ground control station, initial spares, and 
required deployable spares. This recommendation helps fill an 
urgent operational requirement for additional Predators in Iraq 
and Afghanistan.

                     BATTLE CONTROL SYSTEM--MOBILE

    The Committee recommends $24,000,000 to meet a CENTAF 
Warfighter Urgent Capability Need for procurement of Battle 
Control System--Mobile, to replace obsolescing Control and 
Reporting Center capabilities in Iraq. Battle Control System--
Mobile is a low density/high demand Command and Control 
capability that provides the Combined Air Operations Center the 
theater air track data required to maintain real-time 
situational awareness of air activity in the Area of 
Operations.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

    The Committee recommends a total of $1,002,053,000, an 
increase of $219,980,000 to the request, for various research, 
development, test and evaluation appropriations.
    The following table provides details of the recommendations 
for these accounts:


              DEVELOPMENT OF EXPEDITIONARY ASSAULT BRIDGE

    The supplemental request proposes $5,000,000 for 
development of a U.S. Marine Corps Expeditionary Assault Bridge 
(EAB) to replace the Armored Vehicle Launched Bridge (AVLB). 
The Committee believes that this developmental effort does not 
comprise an urgent or emergency requirement in the Global War 
on Terror and that such requirements should be addressed in an 
annual appropriations request.

                          TECHNICAL CORRECTION

    In House Report 109-359, the Conference Report to accompany 
H.R. 2863 (The Department of Defense Appropriations Act, 2006), 
in the RDT&E;, Defense-Wide account, the second entry under line 
202--Industrial Preparedness should read ``Complex Optics and 
Nanometer Scale Precision Surfaces'' instead of ``Surfaces''.

         JOINT STRIKE FIGHTER F136 ALTERNATE ENGINE DEVELOPMENT

    The President's fiscal year 2007 budget request includes no 
funding for the continued development of the F136 engine as an 
alternate engine source for the Joint Strike Fighter program. 
The Department of Defense Appropriations Act, 2006, included 
approximately $236,000,000 for F136 development. The Committee 
directs that the Department of Defense and the Air Force 
continue the execution of these funds as appropriated until 
Congress has thoroughly reviewed this matter.

                     REVOLVING AND MANAGEMENT FUNDS


                     Defense Working Capital Funds

    The Committee recommends a total of $502,700,000 for 
Defense Working Capital Funds. These funds are necessary to 
cover replenishment and augmentation of Army war inventories, 
unforeseen fuel price increases, fuel delivery costs associated 
with Defense Logistics Agency activities, and operations at the 
theater consolidation shipping point in Kuwait. The following 
table provides details of the recommended use for these funds:

        [In thousands of dollars]                         Recommendation
War Reserve Stocks--Army......................................   $43,100
Prepositioned Stocks--Army (APS-5)............................    39,000
Spares Augmentation--Army.....................................   251,000
Increased Fuel Costs (Defense Working Capital Funds)..........    37,600
Defense Logistics Agency (DLA) Fuel Distribution--Iraq........   107,000
Theater Distribution Center Kuwait (DLA)......................    25,000
                    --------------------------------------------------------------
                    ____________________________________________________

    Total, Defense Working Capital Funds......................   502,700

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS


                         Defense Health Program

    The Committee recommends $1,153,562,000, as requested, for 
medical costs related to providing health care for activated 
reservists and their families, allowing military hospitals to 
contract for civilian medical staff to backfill deployed active 
duty medical staff, providing mental health services and 
medical treatment of mental health conditions, and for other 
medical-related costs for the global war on terrorism.

         Drug Interdiction and Counter-Drug Activities, Defense

    The Committee recommends a total of $156,800,000 for drug 
interdiction and counter-drug activities.

                    Office of the Inspector General

    The Committee recommends a total of $6,120,000, an increase 
of $5,000,000 above the request, for the Office of the 
Inspector General. The additional funding will enable the 
Inspector General to enhance its audits and reviews of funding 
provided in this and prior year appropriations for the Global 
War on Terror, including audits and reviews of funds provided 
for the Iraq Security Forces Fund and the Afghanistan Security 
Forces Fund. Funding provided for the Inspector General also 
supports a new office in Qatar, which will enhance the 
Inspector General's ability to conduct audits and reviews in 
the region.

                            RELATED AGENCIES


               Intelligence Community Management Account

    The supplemental request includes $178,875,000 for the 
Intelligence Community Management Account. The Committee 
recommends $158,875,000, a reduction of $20,000,000 from the 
request. Details on this adjustment are provided in the 
classified annex accompanying this report.

                    GENERAL PROVISIONS--THIS CHAPTER

    Title I, chapter 2 of the Committee bill contains six 
general provisions. A description of the recommended general 
provisions follows:
    Section 1201 provides for transfer between appropriations 
of up to $2,000,000,000 of funds in title I, chapter 2, and 
provides that transfer authority in this section is in addition 
to any other transfer authority available to the Department of 
Defense, and is subject to the same terms and conditions as 
provided in section 8005 of the Department of Defense 
Appropriations Act, 2006. The Committee has denied a request to 
amend the limitation on transfer authority contained in the 
Department of Defense Appropriations Act, 2006, due to an 
inadequate justification of the need for this additional 
authority.
    Section 1202 provides that funds made available in ``Drug 
Interdiction and Counter-Drug Activities, Defense'' be 
available for assistance to the counter-narcotics forces of 
Afghanistan and Pakistan.
    Section 1203 provides that working capital funds of the 
Department of Defense may increase the limitation on advance 
billing up to $1,500,000,000.
    Section 1204 provides for an increase in the amount of 
funds that may be used for the Commander's Emergency Response 
Program (CERP).
    Section 1205 allows the Department to use ``Afghanistan 
Security Forces Funds'' and ``Iraq Security Forces Funds'' for 
supervision and administration costs of construction projects 
which will be completed after fiscal year 2006.
    Section 1206 prohibits the initiation of new start programs 
without prior congressional approval.

                               CHAPTER 3


                     Bilateral Economic Assistance


                  FUNDS APPROPRIATED TO THE PRESIDENT

           United States Agency for International Development


                CHILD SURVIVAL AND HEALTH PROGRAMS FUND

    The Committee recommends $5,300,000 for the Child Survival 
and Health Programs Fund, as proposed in the supplemental 
request. These funds are to reimburse funds that were 
reprogrammed to accommodate urgent earthquake reconstruction 
activities in Pakistan.

                         DEVELOPMENT ASSISTANCE

    The Committee recommends $10,500,000 for Development 
Assistance, as proposed in the supplemental request. These 
funds are to reimburse development assistance funds that were 
reprogrammed to accommodate urgent earthquake reconstruction 
activities in Pakistan.

              INTERNATIONAL DISASTER AND FAMINE ASSISTANCE

    The Committee recommends $136,290,000 for International 
Disaster and Famine Assistance, as proposed in the supplemental 
request. The Committee recommendation includes $70,000,000 to 
reimburse funds that were reprogrammed to accommodate urgent 
earthquake reconstruction activities in Pakistan. The Committee 
recommendation also includes $66,290,000 to meet humanitarian 
needs in the Darfur region of Sudan.
    The Committee does not recommend language as proposed in 
supplemental request to transfer $80,000 to Operating Expenses 
of the United States Agency for International Development.

   OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR INTERNATIONAL 
                              DEVELOPMENT

    The Committee recommends $61,600,000 for Operating Expenses 
of the United States Agency for International Development. 
These funds are to cover additional security and other 
operational expenses in Iraq during fiscal year 2006. In lieu 
of new budget authority for fiscal year 2007 as proposed in the 
supplemental request for Iraq and to ensure that there is no 
interruption of critical security protection services, the 
Committee directs that $58,000,000 in unobligated balances of 
the Iraq Relief and Reconstruction Fund be allocated to cover 
the costs of USAID security procurements planned in fiscal year 
2007.
    The Committee recommendation does not include $16,000,000 
for fiscal year 2007 requirements in Afghanistan as proposed in 
the supplemental request. This request shall be considered in 
the context of regular fiscal year 2007 appropriations.
    The Committee recommendation does not include additional 
funding requested for USAID operations in Sudan. The Committee 
provided in the regular fiscal year 2006 appropriation 
$6,000,000 above the budget request for USAID operations in 
Sudan. The Administration has not adequately justified this 
request for an additional $6,000,000 as an emergency, and the 
Committee will consider it in the context of the regular fiscal 
year 2007 appropriation.

                  Other Bilateral Economic Assistance


                         ECONOMIC SUPPORT FUND

    The Committee recommends a total of $1,584,500,000 for the 
Economic Support Fund (ESF).

                              AFGHANISTAN

    The Committee recommendation includes $5,000,000 for 
installation and initial operation of the Northwest Kabul Power 
Plant turbine generator. This appropriation fulfills an 
unanticipated requirement due to the failure of this important 
diesel fueled generator.
    The Committee recommendation, however, defers $38,000,000 
requested for other activities in Afghanistan, including 
$11,000,000 for the subsidy cost of 100 percent debt reduction 
for Afghanistan, and $28,000,000 for components of the 
Northeast Transmission system. The Committee notes that prior 
to the obligation of $205,000,000 from the $430,000,000 
appropriated in ESF for assistance to Afghanistan, the 
Secretary of State is required to submit a certification to the 
House and Senate Committees on Appropriations that the 
Government of Afghanistan at both the national and local levels 
is cooperating fully with United States funded poppy 
eradication and interdiction efforts in Afghanistan. To date, 
the Secretary has not submitted the required certification, 
leaving $205,000,000 unobligated. The Committee does not 
believe it prudent to appropriate additional funds for 
requirements in Afghanistan until the Department of State, at 
the very least, demonstrates that previously appropriated funds 
will be obligated. Should the Administration certify that the 
Government of Afghanistan is cooperating fully with the United 
States interdiction efforts, the Committee will reconsider the 
supplemental request.
    The Committee strongly urges the Department of State and 
the U.S. Agency for International Development to honor and meet 
the program allocations in House report 109-265 as well as 
those detailed in the Administration's fiscal year 2006 budget 
request and justification materials, particularly with respect 
to assistance for health, education and women's programs. Any 
reprogramming of funds from Development Assistance, Child 
Survival and Health and Economic Support Funds accounts that 
reduces assistance from health and education programs or 
support for women and girls shall be subject to the prior 
notification of the House and Senate Committees on 
Appropriations.

                                  IRAN

    The Committee recommendation does not include funding as 
requested under this heading for Iran. Funding for democracy 
activities for Iran is provided in this Act under the heading 
``Democracy Fund.''

                                  IRAQ

    The Committee recommendation includes an appropriation of 
$1,489,000,000 for programs within Iraq. These funds are 
augmented with $185,500,000 in funds transferred from the Iraq 
Relief and Reconstruction Fund (IRRF) for a total of 
$1,674,500,000. This funding arrangement will return support 
for Iraq's emerging democracy to a more traditional foreign 
assistance structure and will not impede the implementation or 
completion of ongoing or planned projects and activities.
    Funds provided for Iraq are to be allocated as follows:

Provincial Reconstruction Teams/Provincial 
    Reconstruction
Development Councils....................................    $622,000,000
    New budget authority................................   (490,000,000)
    By transfer from the IRRF...........................   (132,000,000)
Employment generation...................................     175,000,000
    New budget authority................................   (165,000,000)
    By transfer from the IRRF...........................    (10,000,000)
Local business development..............................      30,000,000
    New budget authority................................    (20,000,000)
    By transfer from the IRRF...........................    (10,000,000)
Infrastructure security (new budget authority)..........     287,000,000
Infrastructure sustainment (new budget authority).......     355,000,000
Ministry capacity development...........................     150,000,000
    New budget authority................................   (125,000,000)
    By transfer from the IRRF...........................    (25,000,000)
Democracy programs......................................      18,500,000
    New budget authority................................    (10,000,000)
    By transfer from the IRRF...........................     (8,500,000)
Regimes Crimes Liaison Office (new budget authority)....      37,000,000
      Total, Iraq.......................................   1,674,500,000

    Provincial reconstruction teams (PRTs)/provincial 
reconstruction development councils (PRDCs).--A total of 
$622,000,000 is recommended for PRTs/PRDCs in fiscal year 2006, 
of which $490,000,000 is new budget authority and $132,000,000 
is to be transferred from the Iraq Relief and Reconstruction 
Fund (IRRF). The Committee, however, remains concerned about 
the scope and nature of the PRT/PRDC initiative. There is 
little formal doctrine, military or civilian, on PRTs/PRDCs or 
their function, and only limited--and mixed--experience on the 
concept from Afghanistan. Therefore, it will be critical for 
the chief of mission to provide detailed guidance on their 
functions in Iraq. A key element of this guidance should be 
that senior U.S. government employees within the PRTs set 
overall reconstruction direction and priorities. Moreover, it 
should be clear that PRTs--under the guidance of the chief of 
mission--are the agent for the management, auditing and 
coordination of all U.S. government reconstruction funds 
available in the region, including civilian agency funds and 
military reconstruction funds such as the Commanders' Emergency 
Response Program and the Commanders' Humanitarian Relief and 
Reconstruction Program.
    The primary goal of the PRTs in Iraq, as in Afghanistan, is 
to extend the role of, and improve the capacity of the Iraqi 
government. Support for PRDCs and other Iraqi federal 
structures should be managed through the PRTs. Given the work 
successfully completed thus far through USAID's Civilian Action 
Program (CAP) to build community-based democracy, PRTs should 
carefully coordinate the remaining elements of the CAP program 
with PRDC funding, in order to build effective linkages between 
community governance and provincial governance. The CAP program 
has generated a network of more than 1,300 community 
associations across 17 governorates in Iraq and has trained 
17,281 community association members. A January 2005 audit by 
the Office of Inspector General (USAID) found that CAP 
``achieved 98 percent of its intended outputs, including 
citizen participation, inter-community cooperation, local 
government cooperation, local employment generation, and 
consideration of environmental concerns . . . CAP provides a 
vehicle for empowering communities, building community 
cohesion, and providing evidence that the US is committed to 
improving the lives of Iraqis.''
    Finally, given the wide interest in PRTs and high 
expectations of this relatively new concept, the chief of 
mission should ensure that a carefully designed monitoring, 
auditing and evaluation system is in place to measure the 
impact of PRTs on reconstruction and development in Iraq.
    The Committee directs that before any funds contained in or 
otherwise made available by this Act are expended in support of 
PRTs/PRDCs in Iraq, the Department of State shall present to 
the House and Senate Committees on Appropriations (1) the 
formal assessment completed by the U.S. embassy and military 
command in Iraq of the initial performance of the first three 
demonstration PRT projects; (2) a complete program plan, 
including total cost and staffing requirements of the PRTs/
PRDCs program in Iraq; (3) the official implementing guidance 
that incorporates the recommendations cited above in this 
report; and (4) a plan to transition PRTs/PRDCs in Iraq by the 
end of fiscal year 2007.

                                 JORDAN

    The Committee believes that the Department of State should 
review the fiscal year 2006 appropriation of $250,000,000 in 
ESF programs for Jordan to determine if it is appropriate to 
provide a portion of the assistance as budgetary support in 
lieu of specific projects. Such budgetary support has been 
provided in the past and the Committee believes the current 
situation in Jordan warrants this support in fiscal year 2006.

                                LIBERIA

    The Committee recommendation includes $50,000,000 for ESF 
programs within Liberia.
    The Committee recommends that $30,000,000 of this amount be 
used for emergency employment activities to strengthen security 
and build roads. A major public works program lasting 18-24 
months that will put Liberians back to work rebuilding 
infrastructure is a critical first step toward generating 
employment and supporting reconstruction and development. 
Viable infrastructure will also allow the Government of Liberia 
to promote economic growth and investment.
    The Committee recommends that $10,000,000 of this amount be 
used for activities to establish an electricity grid in 
Liberia. It is crucial that the core of an electricity grid be 
established in the next few months to serve high-priority areas 
and institutions, and help stimulate private business 
(especially small enterprises that cannot afford generators), 
strengthen security, and to demonstrate that the government is 
capable of providing services to the poor.
    The Committee recommends that $10,000,000 of this amount be 
used for demobilization and reintegration of ex-combatants in 
Liberia. The Government of the United States has been a strong 
supporter of these activities to date, but the process is not 
yet complete. The new government of Liberia would like to 
complete this process as quickly as possible for all its 
security forces: military, police, immigration, customs, and 
NSA. The most urgent need is $3,900,000 to complete the 
demobilization process for the police. Other funds are needed 
very quickly to initiate the recruitment and training of new 
police forces, to accelerate the process of training new army 
recruits, and to reorganize and streamline the architecture of 
national security from the county to central levels.

                                PAKISTAN

    The Committee recommendation includes $40,500,000 for ESF 
programs within Pakistan only to reimburse funds that were 
reprogrammed to accommodate urgent earthquake reconstruction 
activities.
    The Committee understands that the United States pledged a 
total of $510,000,000 in earthquake relief and reconstruction. 
To meet the initial requirements of the pledge for 
reconstruction activities, the Department of State determined 
it would restructure the 2006 ESF program by decrementing 
amounts appropriated for specific programs, projects, and 
activities to accommodate a portion of the pledge. The 
Committee wholly rejects the Department's determination that it 
can use funds appropriated for one purpose to meet the 
requirements of an alternative purpose without seekingapproval 
of Congress when the requirements for the alternative purpose have not 
been approved by Congress.
    The Committee recommendation of $40,500,000 shall only be 
used to reimburse specific ESF programs and return these 
programs, projects and activities to the fiscal year 2006 
appropriated levels.

                          Department of State


                             DEMOCRACY FUND

    The Committee recommends $10,000,000 in the Democracy Fund 
for the promotion of democracy, governance, human rights, 
independent media, and the rule of law in Iran, as proposed in 
the supplemental request under the heading ``Economic Support 
Fund''. The Committee is disappointed in the Department of 
State's failure to provide adequate and timely justification of 
the emergency nature of these funds. The Committee directs 
that, prior to obligation or expenditure of these funds, the 
Secretary of State shall submit a report to the House and 
Senate Committees on Appropriations that identifies the short 
and long term strategy for impacting democracy in Iran, 
including projected costs and expected results associated with 
implementing the strategy. No later than December 1, 2006, the 
Committee requests the Department submit a report on 
obligations and expenditure of these and prior year funds for 
democracy programs for Iran. The report should list the 
contractors, grantees and subcontractor/subgrantees, where 
relevant, including amount and length of contract or grant. The 
Department may submit a classified annex to the report if 
necessary to address fully these issues.

          INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT

    The Committee recommends $107,700,000 for International 
Narcotics Control and Law Enforcement, as proposed in the 
supplemental request, of which $7,700,000 shall be available to 
provide for the protection of Iraqi judges and $100,000,000 
shall be available for additional prison and detention 
facilities capacity in Iraq. Funds are to remain available 
until September 30, 2007.
    The Committee notes that the $100,000,000 for prison and 
detention facilities is to provide space that meets 
internationally accepted human rights standards to accommodate 
suspects, convicted criminals and insurgents sentenced by the 
courts.

                    MIGRATION AND REFUGEE ASSISTANCE

    The Committee recommends $51,200,000 for Migration and 
Refugee Assistance, as proposed in the supplemental request. 
These funds are provided to meet urgent humanitarian needs 
related to refugee resettlement in Liberia, Afghanistan, and 
Sudan, and to fill breaks in the supply of emergency food 
assistance to vulnerable populations.

                       DEPARTMENT OF THE TREASURY


               INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE

    The Committee recommends $13,000,000 for International 
Affairs Technical Assistance, as proposed in the supplemental 
request, to remain available until September 30, 2007. These 
funds are to continue development of Iraq's national electronic 
payments system.

                          MILITARY ASSISTANCE


                  Funds Appropriated to the President


                        PEACEKEEPING OPERATIONS

    The Committee recommends $123,000,000 for Peacekeeping 
Operations, as proposed in the supplemental request. The 
Committee recommendation includes $30,000,000 to reimburse 
funds reprogrammed to sustain the African Union Mission in 
Sudan (AMIS). Since AMIS' integration, Congress has provided 
more than $190,000,000 to support the work of this vital 
mission. As circumstances on the ground are still grave, the 
Committee supports the Administration's plans to shift AMIS to 
a more robust United Nations Force. The Committee supports the 
transfer of the AMIS mission to the United Nations not later 
than the end of fiscal year 2006 and includes $70,500,000 to 
sustain AMIS until that time, as well as $8,500,000 for vital 
security upgrades at AMIS camps. The Committee recommendation 
also includes $14,000,000 to train current AMIS peacekeepers 
for inclusion into the UN mission.

                    GENERAL PROVISIONS--THIS CHAPTER


              (INCLUDING TRANSFER AND RESCISSION OF FUNDS)

    The Committee recommends a provision that makes funds 
appropriated or made available by transfer in this chapter 
available notwithstanding section 313 of the Foreign Relations 
Authorization Act, Fiscal Years 1994 and 1995.
    The Committee recommends a transfer of $185,500,000 in 
unobligated funds in the Iraq Relief and Reconstruction Fund 
made available in the Emergency Supplemental Appropriations Act 
for Defense and for the Reconstruction of Iraq and Afghanistan, 
2004. These funds are to be transferred to and merged with 
funds contained in this Act under the heading ``Economic 
Support Fund''.
    The Committee recommends a rescission of $17,000,000 from 
funds made available for the Coalition Solidarity Initiative 
under the heading ``Peacekeeping Operations'' in the Emergency 
Supplemental Appropriations Act for Defense, the Global War on 
Terror, and Tsunami Relief, 2005.
    The Committee does not recommend a provision proposed in 
the supplemental request to make foreign assistance funds for 
Sudan in this Act available not withstanding any other 
provision of law.
    The Committee does not recommend a provision proposed in 
the supplemental request to make adjustments in the sectoral 
allocations of the Iraq Relief and Reconstruction Fund (IRRF) 
and to extend the availability of funds for an additionalsa 
four years from the date on which the availability of funds 
would otherwise have expired, if such funds are initially 
obligated before the expiration of the period of availability, 
except that after initial obligation, any subsequent obligation 
may be made without regard to legislated sectoral limitations. 
In lieu of the provision proposed in the supplemental request, 
the Committee recommends a provision that extends the 
availability of funds for an additional year from the date on 
which the availability of funds would otherwise have expired, 
if such funds are initially obligated before the expiration of 
the period of availability. In addition, the provision extends 
the reporting requirements of section 2207 of Public Law 108-
106 for one additional year.

                               CHAPTER 4


                    DEPARTMENT OF HOMELAND SECURITY


                       United States Coast Guard


                           OPERATING EXPENSES

    The Committee recommends an additional $26,692,000 in 
``Operating Expenses'' to provide for the United States Coast 
Guard's share of the enhanced death gratuity benefit as 
authorized by section 664 of the National Defense Authorization 
Act for fiscal year 2006 (P.L. 109-163) and for upgrades to 
necessary intelligence systems.

                               CHAPTER 5


                         DEPARTMENT OF DEFENSE


                         MILITARY CONSTRUCTION

    Use of Supplemental Appropriations for Wartime Military 
Construction.--The recently submitted 2006 Quadrennial Defense 
Review (QDR) states that we are in the fifth year of what the 
Department of Defense (DOD) is now referring to as ``the long 
war.'' The QDR further asserts that the United States must ``be 
prepared and arranged to successfully defend our Nation and its 
interests around the globe for years to come,'' though 
Afghanistan and Iraq will remain ``crucial battlegrounds'' for 
an indeterminate period of time. Although the QDR further 
expresses DOD's intent to move ``from dependence on large, 
permanent overseas garrisons toward expeditionary operations 
utilizing more austere bases abroad,'' it has become clear in 
recent years that these expeditionary operations can result in 
substantial military construction expenditures of a magnitude 
normally associated with permanent bases. Excluding the current 
request, Congress has already provided well over $1,000,000,000 
in military construction funds through emergency supplemental 
appropriations for the Central Command (CENTCOM) area of 
responsibility. This total does not include the approximately 
$275,000,000 of operation and maintenance funds spent on 
construction within the same area using special legislative 
authority. Although emergency supplemental appropriations for 
many of these requirements were unavoidable, the Committee 
believes that military construction for contingency operations 
in the CENTCOM area, as well as other requirements supporting 
``the long war,'' can and should be incorporated into the 
regular authorization and appropriation process, especially as 
the long-term footprint in the region begins to form.
    Update to CENTCOM Master Plan.--The conference report on 
the Military Construction, Military Quality of Life, and 
Veterans Affairs Appropriations Act, 2006 directed CENTCOM to 
provide the Committees on Appropriations with an update report 
on the CENTCOM master plan for facilities. The Committee has 
not yet received that report. In order to maintain proper 
oversight of military construction in the CENTCOM area of 
responsibility, it is vital that the Committee be kept up-to-
date on the implementation of, and any changes to, the master 
plan. The Committee has therefore included provisions under 
Military Construction, Army and Military Construction, Air 
Force prohibiting the obligation or expenditure of funds on 
projects until that report is received.
    Proper Use of Emergency War Appropriations.--The Committee 
believes that funds appropriated for emergency wartime military 
construction requirements in the CENTCOM area of responsibility 
should be used solely for that purpose to the fullest extent 
possible. When funds become available due to scope reductions 
or cancellations, they should not be reprogrammed for domestic 
or overseas requirements that are not emergency needs directly 
supporting contingency operations.

                      Military Construction, Army

    The Committee recommends $287,100,000 for Military 
Construction, Army instead of $413,400,000 as requested by the 
Administration. The funds are provided as follows:


    Camp Taqaddum, Iraq.--Air Control Tower. The Committee 
understands that this project is no longer required.
    Counter IED/Urban Bypass Roads, Iraq.--The Administration 
requested $167,000,000 for the construction of roads in Iraq to 
bypass urban areas and reduce casualties caused by Improvised 
Explosive Devices (IEDs). While the Committee fully supports 
efforts to counter IEDs by all means available, the plan for 
constructing such roads and data on how these roads would in 
fact reduce IED threats as presented to the Committee remains 
unclear. Moreover, the Committee is concerned that the amount 
requested is arbitrary and based on no specific identified 
requirement. The Committee has therefore reduced the amount to 
$60,000,000 and included a provision prohibiting the 
expenditure of funds for this purpose until CENTCOM delivers a 
detailed report to the Committees on Appropriations fully 
explaining how urban bypass roads will mitigate the IED threat, 
and the construction plan for such roads.

                    Military Construction, Air Force

    The Committee recommends $35,600,000 for Military 
Construction, Air Force instead of $36,100,000 as requested by 
the Administration. The funds are provided as follows:


                  Military Construction, Defense-wide

    The Committee recommends no funds for Military 
Construction, Defense-wide. The Administration requested 
$35,200,000 to correct power supply problems at the National 
Security Agency station at Menwith Hill, United Kingdom. While 
the Committee understands the need for additional power 
capacity at Menwith Hill, the requirements at this station have 
been known for some time and should have been incorporated into 
the regular military construction authorization and 
appropriation process. The information provided to the 
Committee did not justify emergency consideration of this 
request at this time.

                    GENERAL PROVISION--THIS CHAPTER

    The Committee recommendation includes a general provision 
to expand the use of funds previously appropriated for Medical 
Services in Public Law 109-148. This change will allow the use 
of $122,000,000, previously restricted for expenses related to 
the consequences of hurricanes in the Gulf region, to be used 
for unanticipated medical care for personnel returning from the 
conflicts in Iraq and Afghanistan. The supplemental request had 
proposed extending the availability of these funds so they 
could be used for activation costs associated with a new 
hospital in New Orleans in fiscal year 2010.
    The Committee does not recommend inclusion of two general 
provisions requested by the Administration to increase the 
authorized amounts for two National Security Agency projects. 
The Committee believes that these provisions do not merit 
emergency consideration and should be subject to the regular 
military construction authorization process.

                               CHAPTER 6


                         DEPARTMENT OF JUSTICE


                            Legal Activities


             SALARIES AND EXPENSES, UNITED STATES ATTORNEYS

    The recommendation includes $3,000,000 for the United 
States Attorneys for necessary costs associated with national 
security investigations and prosecutions.

                    Federal Bureau of Investigation


                         SALARIES AND EXPENSES

    The recommendation includes $99,000,000 for the Federal 
Bureau of Investigation (FBI) for operations in Iraq and 
Afghanistan and for enhanced counterterrorism activities. The 
recommendation includes language providing that funding shall 
not be available for obligation for an information technology 
program without a certification from the Deputy Attorney 
General and the Department's investment review board that the 
information technology program has appropriate program 
management and contractor oversight mechanisms in place, and 
that the program is compatible with the enterprise architecture 
of the Department of Justice and the Federal Bureau of 
Investigation.

                    Drug Enforcement Administration


                         SALARIES AND EXPENSES

    The recommendation includes $5,000,000 to improve the Drug 
Enforcement Administration's ability to exchange information 
with other Federal intelligence and law enforcement agencies, 
particularly in the areas of drug enforcement and national 
security intelligence.

          Bureau of Alcohol, Tobacco, Firearms and Explosives


                         SALARIES AND EXPENSES

    The recommendation provides $4,100,000 for the Bureau of 
Alcohol, Tobacco, Firearms and Explosives for necessary costs 
of the operations in Iraq including firearms and explosives 
tracking and enforcement.

                          DEPARTMENT OF STATE


                   Administration of Foreign Affairs


                    DIPLOMATIC AND CONSULAR PROGRAMS

    The recommendation includes $1,380,500,000 under this 
heading for expenses relating to Iraq, Afghanistan, and Iran. 
The recommendation includes $1,116,074,000 for necessary 
expenses for the operations of the United States Mission in 
Iraq, including $217,698,000 for logistics support; 
$736,000,000 for security-related costs, including equipment, 
armored vehicles, protective details, common area security 
improvements and contract support; $28,956,000 for information 
technology and country-wide emergency radio connectivity; and 
$133,420,000 for the State Department operations in Iraq. In 
addition, the recommendation includes $1,326,000 for transfer 
to the United States Institute of Peace for activities relating 
to Iraq. Further, the recommendation includes $50,100,000 for 
security requirements in Afghanistan; $208,000,000 for security 
costs associated with the Provincial Reconstruction Teams (PRT) 
in Iraq; and $5,000,000 to expand public diplomacy information 
programs relating to Iran.
    The Committee directs the Department, no later than 60 days 
after the date of enactment of this Act, to provide a report to 
the Committee describing how, within these categories, the 
Department allocated the funds provided under this heading. The 
report shall also describe how the Department intends to 
allocate any remaining balances.

                      OFFICE OF INSPECTOR GENERAL

    The recommendation includes $25,300,000 under this heading 
including, $24,000,000 for the Special Inspector General for 
Iraq Reconstruction to conduct oversight work on reconstruction 
projects related to Iraq, and $1,300,000 for the State 
Department's oversight work related to operations in Iraq and 
Afghanistan.

               EDUCATIONAL AND CULTURAL EXCHANGE PROGRAMS

    The recommendation includes $5,000,000 for academic, 
professional and cultural exchanges focused on Iran.

                      International Organizations


        CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING ACTIVITIES

    The recommendation includes $129,800,000 for assessed costs 
of United Nations peacekeeping operations, including increased 
costs of peacekeeping operations in southern Sudan and for the 
transition from the current African Union peacekeeping mission 
in Darfur, Sudan to a United Nations mission.

                             RELATED AGENCY


                    Broadcasting Board of Governors


                 INTERNATIONAL BROADCASTING OPERATIONS

    The recommendation includes $7,600,000 for United States 
for international broadcasting efforts to Iran, including 
$5,600,000 for Voice of America television and $2,000,000 for 
Radio Free Europe/Radio Liberty's Radio Farda.

                   BROADCASTING CAPITAL IMPROVEMENTS

    The recommendation includes $28,500,000 for capital 
improvements relating to United States international 
broadcasting to Iran, including $12,700,000 for increased 
transmission investments for Radio Free Europe/Radio Liberty's 
Radio Farda, and $15,800,000 for Voice of America television 
broadcasting infrastructure.

                    GENERAL PROVISION--THIS CHAPTER

    The recommendation includes language to allow funds to be 
expended notwithstanding certain provisions of law.

                               CHAPTER 7


                       DEPARTMENT OF THE TREASURY


                          Departmental Offices


                         SALARIES AND EXPENSES

    The Committee recommends $1,800,000 for Salaries and 
Expenses, as requested by the President. Of this amount, 
$1,300,000 is to support the Department's participation as co-
lead agency in the Iraq Threat Finance Cell, an interagency 
initiative to identify and disrupt sources of insurgency 
finance; and $500,000 is to establish a Deputy Treasury Attache 
in Iraq, to provide critical support for fiscal, monetary, and 
financial sector reform efforts.

        TITLE II--FURTHER HURRICANE DISASTER RELIEF AND RECOVERY


                               CHAPTER 1


                       DEPARTMENT OF AGRICULTURE


                          WORKING CAPITAL FUND

    The Committee provides $25,000,000, to remain available 
until expended, for Working Capital Fund for necessary expenses 
related to the consequences of Hurricane Katrina and other 
hurricanes of the 2005 season.

                     Agricultural Research Service


                        BUILDINGS AND FACILITIES

    The Committee provides $20,000,000, to remain available 
until expended, for ``Agricultural Research Service, Buildings 
and Facilities'' for necessary expenses related to the 
consequences of Hurricane Katrina and other hurricanes of the 
2005 season.

                 Natural Resources Conservation Service


                 EMERGENCY WATERSHED PROTECTION PROGRAM

    The Committee provides $10,000,000, to remain available 
until September 30, 2008, for the Emergency Watershed 
Protection Program, for the purchase of easements on floodplain 
lands in disaster areas affected by Hurricane Katrina and other 
hurricanes of the 2005 season.

                               CHAPTER 2


                    DEPARTMENT OF DEFENSE--MILITARY


                       Committee Recommendations

    In title II, chapter 2, the Committee recommends total new 
appropriations of $1,154,593,000, provided within 30 
appropriations accounts. Funding by category is as follows:

Military Personnel......................................     $68,982,000
Operation and Maintenance...............................     123,611,000
Procurement.............................................     887,387,000
Research and Development................................      18,980,000
Trust Funds and Revolving and Management Funds..........      21,752,000
Defense Health Program..................................      33,881,000

    The following table summarizes, by appropriations account 
or general provision, the Committee's recommendations compared 
to the President's request.


                         REPORTING REQUIREMENTS

    The Committee directs the Secretary of Defense to provide a 
report to the congressional defense committees within 30 days 
of enactment of this legislation on the allocation of the funds 
within the accounts listed in this chapter. The Secretary shall 
submit updated reports 30 days after the end of each fiscal 
quarter until funds listed in this chapter are no longer 
available for obligation. The Committee directs that these 
reports shall include: a detailed accounting, by programs and 
subactivity groups, of obligations and expenditures of 
appropriations provided in this chapter for the continuation of 
relief and recovery operations from the storm damage; and a 
listing of equipment procured using funds provided in this 
chapter.

                           MILITARY PERSONNEL

    The Committee recommends a total of $68,982,000 for the 
military personnel accounts for incremental costs for projected 
Basic Allowance for Housing rate increases in the hurricane-
affected military housing areas in the Gulf Region.
    The following table provides details of the recommendations 
for the military personnel accounts:


                       OPERATION AND MAINTENANCE

    The Committee recommends a total of $123,611,000, as 
requested by the President, for operation and maintenance 
accounts.
    The following table provides details of the recommendations 
for the operation and maintenance accounts:


                              PROCUREMENT

    The Committee recommends a total of $887,387,000, which is 
$250,000,000 below the request, for various procurement 
appropriations.
    The following table provides details of the recommendations 
for the procurement accounts:


                   Shipbuilding and Conversion, Navy

    The Committee recommendation includes $775,236,000 for 
additional funding to address the consequences of Hurricane 
Katrina and other hurricanes of the 2005 season on Gulf Coast 
shipyards. This is a reduction of $250,000,000 from the budget 
request. Funding of $1,689,000,000 was previously provided in 
Public Law 109-148, bringing the total amount available for 
this program to $2,464,236,000.
    While acknowledging the substantial impact to Navy programs 
from these hurricanes, the Committee believes the total 
budgetary requirements are far from clear at this time, and 
adequate resources are being provided to address near-term and 
intermediate-term needs. The Committee notes that private 
insurance claims have not been resolved, six months after the 
disaster. Many of the original cost estimates have not been 
verified by visual or engineering inspection. And shipyard 
delay and disruption estimates have not been revised despite 
actual workforce conditions that are more favorable than 
originally assumed.
    The Committee believes the funding provided in this and 
previous Acts is sufficient to address urgent and emergency 
requirements that arise over the coming year at these 
shipyards. If additional requirements become clear in the 
future, and are validated and requested as emergency 
requirements, the Committee would entertain such requests as 
part of a future emergency supplemental appropriations bill.
    The Committee notes that funds under this heading are 
provided, among other things, for any shipyard in the Gulf 
Coast region impacted by Hurricane Katrina and other hurricanes 
of the 2005 season.
    The Committee believes strongly that funds in this Act and 
under this heading in prior Acts should not be used to 
substitute for private insurance benefits. The Committee is 
aware that some shipyards have business interruption insurance 
coverage that could potentially overlap with the Navy's budget 
for increased delay and disruption costs. On March 1, 2006, the 
Committee received the Navy's certification that there is no 
overlap between shipyard insurance claims and the Navy's 
funding plan, and that costs covered by private insurers were 
not included in supplemental request estimates. Once again in 
this bill, the Committee directs the Navy not to obligate funds 
under this heading until the Secretary of the Navy certifies 
that no such funds will be used for activities or costs that 
are subject to reimbursement by any third party, including a 
private insurer.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

    The Committee recommends a total of $18,980,000 for various 
research, development, test and evaluation appropriations.
    The following table provides details of the recommendations 
for these accounts:


                     REVOLVING AND MANAGEMENT FUNDS


                     Defense Working Capital Funds

    The Committee recommends $1,222,000, as requested, for the 
Defense Working Capital Funds. These funds are needed for 
hurricane related transportation costs of the Defense Logistics 
Agency to distribute excess property in support of relief 
efforts, and to assist the Defense Commissary Agency in the 
replacement of shelf stock destroyed by Hurricane Katrina.

                     National Defense Sealift Fund

    The Committee recommends $10,000,000, as requested, for the 
National Defense Sealift Fund. These funds are needed to 
replace damaged or destroyed contractor furnished equipment for 
T-AKE ships and for labor disruption costs associated with 
equipment delivery delays.

                              TRUST FUNDS


       SURCHARGE COLLECTIONS, SALES OF COMMISSARY STORES, DEFENSE

    The Committee recommends $10,530,000, as requested, for 
Surcharge Collections, Sales of Commissary Stores, Defense. 
These funds are provided to cover costs to clear grounds and 
other debris at the commissaries at Keesler Air Force Base and 
the Naval Construction Battalion Center located in Mississippi, 
as well as other commissaries that were damaged by the 
hurricanes in the Gulf of Mexico in 2005.

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS


                         Defense Health Program

    The Committee recommends $33,881,000, as requested, for 
health care costs associated with active duty personnel and 
beneficiaries who previously received care at Keesler Medical 
Center and now are receiving health care and pharmaceuticals 
through private sector contracts.

                    GENERAL PROVISION--THIS CHAPTER

    Title II, chapter 2, includes a general provision, Section 
2201, which prohibits the initiation of new start programs 
without prior congressional approval.
    The budget submission includes a request for additional 
transfer authority of $300,000,000, which would have applied to 
all funds appropriated to the Department of Defense in this 
title. In addition, language is proposed to expand the scope of 
transfer authority contained in Division B of Public Law 109-
148. The Committee does not recommend inclusion of these 
requests due to inadequate justification of the need for these 
additional authorities. The Committee notes that special 
transfer authority of $500,000,000 was previously provided in 
Public Law 109-148 to allow for flexibility in the execution of 
funds appropriated to respond to Hurricane Katrina. There has 
been no demonstrated need for additional transfer authority.

                               CHAPTER 3


                      DEPARTMENT OF DEFENSE--CIVIL


                         DEPARTMENT OF THE ARMY


                       Corps of Engineers--Civil

    This chapter provides $1,460,000,000 in emergency funding 
to address water resource projects damaged by Katrina and other 
hurricanes of the 2005 season. The funding provided for items 
in the Administration's request shall not be available until 
authorized.

                              CONSTRUCTION

    Funds totaling $100,000,000 are provided to reduce the risk 
of storm damage to the greater New Orleans metropolitan area by 
restoring the surrounding wetlands through measures to begin to 
reverse wetland losses in areas affected by navigation, oil and 
gas, and other channels and through modification of the 
Caernarvon Freshwater Diversion structure or its operations, to 
remain available until expended. Funds provided under this 
heading are subject to authorization. The Committee encourages 
the Administration to pursue a legislative proposal to the 
appropriate authorizing committees for full and further 
consideration.

                 FLOOD CONTROL AND COASTAL EMERGENCIES

    Funds totaling $1,360,000,000 are provided to fund 
necessary expenses related to the consequences of Hurricane 
Katrina and other hurricanes of the 2005 season, to remain 
available until expended. Funds provided under this heading are 
subject to authorization. Within the funds provided, 
$530,000,000 shall be available to modify the 17th Street, 
Orleans Avenue and London Avenue drainage canals and install 
permanent pumps and closure structures at or near the 
lakefront; $250,000,000 shall be available for storm-proofing 
interior pump stations to ensure their operability during 
hurricanes, storms and high water events; $170,000,000 shall be 
available for armoring critical elements of the New Orleans 
hurricane and storm damage reduction system; $350,000,000 shall 
be available to improve protection at the Inner Harbor 
Navigation Canal; $60,000,000 shall be available for 
incorporation of certain non-Federal levees in Plaquemines 
Parish into the existing Federal levee system.

                               CHAPTER 4


                    DEPARTMENT OF HOMELAND SECURITY


                      Office of Inspector General

    The Committee recommends $13,500,000 for the Department of 
Homeland Security's Inspector General to support audits and 
investigations related to Hurricane Katrina and other 
hurricanes of the 2005 season. The Inspector General may 
transfer funding to other Federal Inspector General's offices 
in the Departments of Agriculture, Defense, Education, Health 
and Human Services, Housing and Urban Development, Justice, 
Labor, Transportation, the Environmental Protection Agency, the 
General Services Administration, and the Social Security 
Administration to carry out necessary audits and investigations 
of funding and programs undertaken by these respective agencies 
for response and recovery activities from the 2005 Gulf Coast 
hurricanes.

                     Customs and Border Protection


                         SALARIES AND EXPENSES

    The Committee recommends an additional $12,900,000 for the 
relocation of personnel and equipment related to the New 
Orleans laboratory facility and for the repair and replacement 
of critical information technology, equipment, and property 
damaged by Hurricane Katrina and other hurricanes of the 2005 
season. Of the funds recommended under this heading, 
$10,200,000 is for the relocation of the New Orleans laboratory 
facility, the build-out of the new facility in Houston, Texas, 
and the transfer of personnel from New Orleans, Louisiana. The 
remaining $2,700,000 are provided for equipment, furniture, 
recovery and disposal costs, interim information technology 
connectivity, and security related to Customs and Border 
Protection's (CBP) New Orleans Customshouse, office, and dock 
facilities.

                              CONSTRUCTION

    The Committee recommends an additional $4,800,000 for 
planning, engineering, and other equipment for structures 
damaged by Hurricane Katrina and other hurricanes of the 2005 
season instead of $16,000,000 as proposed by the President. Of 
the funds recommended under this heading, $2,500,000 are for 
site improvements and information technology connectivity 
related to CBP's New Orleans Customshouse, office, and dock 
facilities and $2,300,000 are for temporary office space, site 
improvements, information technology connectivity, and 
equipment related to the CBP Air and Marine facility located in 
Gulfport, Mississippi. Funds are available until expended.

                       United States Coast Guard


                           OPERATING EXPENSES

    The Committee recommends an additional $14,300,000 in 
``Operating Expenses'' for clean-up and repair needs at 
facilities that were damaged by Hurricane Katrina, basic 
allowances for housing, temporary facilities and logistics, and 
the repair or replacement of equipment, materials, and supplies 
that were lost. Within this funding, the Committee recommends 
$267,000 to be transferred to the Environmental Compliance and 
Restoration appropriation for removal of contaminated soil at 
Coast Guard facilities in New Orleans and Gulfport. The 
Committee also recommends a transfer of $500,000 to the 
Research, Development, Test, and Evaluation appropriation for 
additional costs to reposition the vessel State of Maine at the 
Fire Safety and Test Detachment after its grounding.

               ACQUISITION, CONSTRUCTION AND IMPROVEMENTS

    The Committee recommends an additional $80,755,000 in 
``Acquisition, Construction, and Improvements'' for major 
repair and reconstruction of the New Orleans Integrated Support 
Center damaged by Hurricane Katrina.

                  Federal Emergency Management Agency


                 ADMINISTRATIVE AND REGIONAL OPERATIONS

    The Committee recommends $70,000,000 for Administrative and 
Regional Operations to reconstruct and improve existing public 
alert, warning, and crisis communications systems in the Gulf 
region. The Committee is aware of the on-going pilot project 
for the Geo-Targeted Alerting System (GTAS) and that this pilot 
will not be complete until the end of fiscal year 2006. Prior 
to the obligation of funds for GTAS, the Committee expects to 
be briefed on the findings of this pilot.

            PREPAREDNESS, MITIGATION, RESPONSE AND RECOVERY

    The Committee recommends $10,000,000 for Preparedness, 
Mitigation, Response and Recovery, including $5,000,000 for the 
immediate hiring of 60 additional positions including, but not 
limited to, logistics management, inventory management, 
telecommunications and contract management specialists. The 
Committee also includes $5,000,000 to begin the process of 
immediately reviewing and revising the National Response Plan 
(NRP) and the National Incident Management System (NIMS), as 
discussed below.

     NATIONAL RESPONSE PLAN AND NATIONAL INCIDENT MANAGEMENT SYSTEM

    The Committee has reviewed the findings of the Select 
Bipartisan Committee on Hurricane Katrina and the White House's 
``The Federal Response to Hurricane Katrina Lessons Learned''. 
Three years after issuing Homeland Security Presidential 
Directive 5, more than a year after issuing the National 
Response Plan (NRP), and nearly two years after issuing the 
National Incident Management System (NIMS), critical failures 
were identified at all levels of government. In short, we were 
unprepared for the catastrophic consequences of Hurricane 
Katrina.
    In preparation for the upcoming hurricane season, the 
Committee believes it is critical to immediately review and 
revise both the NRP and the NIMS. Consistent with the findings 
of the Bipartisan Committee and the White House's ``Lessons 
Learned'', the Committee directs the Department of Homeland 
Security (DHS) to conduct a comprehensive review, including 
necessary revisions, of the NRP and the NIMS to ensure that the 
NRP and NIMS are properly integrated and executed at all levels 
of government and among all homeland security partners. The 
Committee expects DHS to initiate revisions as needed and to 
include independent emergency response experts in this review. 
The Committee also expects DHS to ensure that revisions to the 
NRP and NIMS are implemented prior to the start of the 2006 
hurricane season. The Committee directs DHS to begin this 
process immediately and report its findings and recommendations 
within 90 days of enactment of this Act.

                            DISASTER RELIEF

    The Committee recommends $9,550,000,000 for Disaster 
Relief, $150,000,000 above the amounts requested by the 
President. The Committee includes bill language in the Disaster 
Assistance Direct Loan Program Account authorizing the transfer 
of up to $150,000,000 for the Community Disaster Loan Program 
from the Disaster Relief Fund.
    The Committee is concerned that FEMA may not be considering 
life cycle costs for the procurement of certain structures. 
FEMA is directed to consider the most cost effective options 
for providing structures, including total life cycle costs that 
demonstrate best value.
    The Committee is concerned that law enforcement agencies in 
areas that took in a high volume of evacuees may not receive 
full compensation for costs associated with increased police 
presence. The Department of Justice and FEMA are directed to 
work with affected state and local law enforcement agencies to 
ensure that funds provided are distributed in an equitable 
manner and that eligible costs are addressed.

                            WEEKLY REPORTING

    The Committee remains disappointed with the lack of 
supporting documentation included in the weekly Disaster Relief 
Report and the lack of information regarding the assumptions 
DHS is using to estimate total disaster relief funding needed 
this fiscal year. Specifically, the Committee has been 
requesting information on the methodology used and assumptions 
made to estimate allocations by program and the Department has 
failed to respond. Beginning immediately, the Committee directs 
DHS to include an explanation of the methodology used to 
calculate estimated yearly allocations by program area and 
program name. This explanation shall include the total yearly 
cost estimate, the amount allocated and obligated to date, and 
a written explanation of the assumptions and methodology used 
to estimate the total yearly cost.

            DISASTER ASSISTANCE DIRECT LOAN PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

    The Committee recommends $150,000,000 to subsidize not to 
exceed $200,000,000 in direct loans for the Community Disaster 
Loan program. The Committee includes an additional $1,000,000 
for administrative costs of this program and bill language 
allowing the transfer of up to $150,000,000 from the Disaster 
Relief appropriation. In total, the Committee's recommendation 
provides an additional $400,000,000 in loan volume for the 
Community Disaster Loan program, as requested by the President.

                    GENERAL PROVISIONS--THIS CHAPTER

    Section 2401. The Committee includes bill language 
authorizing FEMA to pay for utility costs for those leases 
negotiated by State and local governments on FEMA's behalf.
    Section 2402. The Committee includes bill language amending 
P.L. 109-90 to allow the National Flood Insurance Fund to pay 
sufficient interest on the amounts the program has borrowed 
from the Treasury.

                               CHAPTER 5


                       DEPARTMENT OF THE INTERIOR


                United States Fish and Wildlife Service


                              CONSTRUCTION

    The Committee recommends $132,400,000, as requested, for 
construction, including cleanup and facility repair needs at 
National Wildlife Refuges, related to the consequences of 
Hurricane Katrina and other hurricanes of the 2005 season and 
for repayment of advances to other appropriation accounts from 
which funds were transferred for such purposes.

                         National Park Service


                       HISTORIC PRESERVATION FUND

    The Committee recommends $3,000,000, as requested, for 
historic preservation needs. These funds are for financial 
assistance to State Historic Preservation Offices in States 
that were damaged by Hurricane Katrina and other hurricanes of 
the 2005 season. These funds will assist the States in 
completing reviews under section 106 of the National Historic 
Preservation Act.

                              CONSTRUCTION

    The Committee recommends $55,400,000, as requested, for 
construction, including immediate cleanup and facility repair 
needs at National Parks, related to the consequences of 
Hurricane Katrina and other hurricanes of the 2005 season.

                    United States Geological Survey


                 SURVEYS, INVESTIGATIONS, AND RESEARCH

    The Committee recommends $10,200,000, as requested, for 
surveys, investigations, and research for facility and 
equipment repair needs related to the consequences of Hurricane 
Katrina and other hurricanes of the 2005 season and for 
repayment of advances to other appropriation accounts from 
which funds were transferred for such purposes.

                      Minerals Management Service


                ROYALTY AND OFFSHORE MINERALS MANAGEMENT

    The Committee recommends $15,000,000, as requested, for 
royalty and offshore minerals management for costs associated 
with the temporary relocation of the Minerals Management 
Service's Gulf of Mexico regional office from Louisiana to 
Houston, Texas, including costs to purchase new equipment and 
find temporary offices, and for other disaster related expenses 
and for repayment of advances to other appropriation accounts 
from which funds were transferred for such purposes.

                    ENVIRONMENTAL PROTECTION AGENCY


                 Environmental Programs and Management

    The Committee recommends $6,000,000, as requested, for 
environmental programs and management for increased 
environmental monitoring, assessment, and analytical support 
necessary to protect public health during the ongoing recovery 
and reconstruction efforts related to the consequences of 
Hurricane Katrina and other hurricanes of the 2005 season.

                LEAKING UNDERGROUND STORAGE TANK PROGRAM

    The Committee recommends $7,000,000, as requested, for the 
leaking underground storage tank program to assess the most 
immediate underground storage tank needs in areas affected by 
Hurricane Katrina and other hurricanes of the 2005 season and 
to initiate appropriate corrective actions.

                       DEPARTMENT OF AGRICULTURE


                             Forest Service


                         NATIONAL FOREST SYSTEM

    The Committee recommends $20,000,000 for the national 
forest system for necessary expenses of debris cleanup and 
related activities on National Forests affected by Hurricane 
Katrina and other hurricanes of the 2005 season.

                               CHAPTER 6


                         DEPARTMENT OF DEFENSE


                         MILITARY CONSTRUCTION

    Armed Forces Exchanges.--The Committee does not recommend 
providing $55,890,000 as requested by the Navy and Air Force 
for the rebuilding of permanent base exchange facilities 
destroyed by Hurricane Katrina. While current Department of 
Defense instructions allow for the use of appropriated funds to 
rebuild exchanges destroyed by natural disasters, the capital 
costs for Armed Forces exchanges are normally funded with non-
appropriated funds (NAF). The Committee notes that the fiscal 
year 2006 capital budget for Navy Exchange (NEX) is 
approximately $68,000,000 and the respective budget for the 
Army and Air Force Exchange Service (AAFES) is approximately 
$251,000,000. The Committee directs NEX and AAFES to fund 
construction of the necessary facilities at Keesler Air Force 
Base, Mississippi and Naval Construction Battalion Center 
Gulfport, Mississippi through NAF and to make these facilities 
first priority.
    The Committee further understands that exchanges, like 
other NAF facilities, are ``self-insured,'' meaning that when 
such facilities are damaged or destroyed, taxpayers may be 
forced to bear the burden of reconstruction if NAF accounts are 
insufficient. The Committee believes that the option of 
privately insuring NAF facilities, especially in areas at high 
risk of natural disasters, should be explored. The Committee 
therefore directs the Department of Defense to report to the 
Committees on Appropriations no later than September 1, 2006 on 
the feasibility, options and cost for privately insuring such 
facilities.

              Military Construction, Navy and Marine Corps

    The Committee recommends $28,880,000 for Military 
Construction, Navy and Marine Corps, instead of $53,430,000 as 
requested by the Administration. The funds are provided as 
follows:

----------------------------------------------------------------------------------------------------------------
                    Location                             Project description           Request    Recommendation
----------------------------------------------------------------------------------------------------------------
MS: Bay St. Louis..............................  Seclusion Berthing................   $3,240,000     $3,240,000
MS: NCBC Gulfport..............................  Fitness Center....................   32,800,000     24,140,000
MS: NCBC Gulfport..............................  Navy Exchange Cold Storage            2,290,000             --
                                                  Facility.
MS: NCBC Gulfport..............................  Navy Exchange Complex.............   13,600,000             --
Worldwide: Unspecified.........................  Planning and Design...............    1,500,000      1,500,000
                                                                                    ----------------------------
    Total......................................  ..................................   53,430,000     28,880,000
----------------------------------------------------------------------------------------------------------------

                    Military Construction, Air Force

    The Committee recommends $57,300,000 for Military 
Construction, Air Force, instead of $111,240,000 as requested 
by the Administration. The funds are provided as follows:

----------------------------------------------------------------------------------------------------------------
                    Location                             Project description           Request    Recommendation
----------------------------------------------------------------------------------------------------------------
MS: Keesler AFB................................  Base Exchange.....................  $40,000,000             --
MS: Keesler AFB................................  Consolidated Aircraft Maintenance    29,000,000    $29,000,000
                                                  Facility.
MS: Keesler AFB................................  Fire Crash Rescue Station.........   19,600,000     19,600,000
MS: Keesler AFB................................  Library...........................    5,500,000      5,500,000
Worldwide: Unspecified.........................  Planning and Design...............   17,140,000      3,200,000
                                                                                    ----------------------------
    Total......................................  ..................................  111,240,000     57,300,000
----------------------------------------------------------------------------------------------------------------

               Military Construction, Army National Guard

    The Committee recommends $67,800,000 for Military 
Construction, Army National Guard, instead of $210,071,000 as 
requested by the Administration. The funds are provided as 
follows:

----------------------------------------------------------------------------------------------------------------
                    Location                             Project description           Request    Recommendation
----------------------------------------------------------------------------------------------------------------
LA: Hammond....................................  Army Aviation Support Facility....  $67,800,000    $67,800,000
LA: Jackson Barracks...........................  Joint Forces HQs/USPFO............   84,200,000             --
LA: Jackson Barracks...........................  Readiness Center..................   51,600,000             --
Worldwide: Unspecified.........................  Planning and Design...............    6,471,000             --
                                                                                    ----------------------------
    Total......................................  ..................................  210,071,000     67,800,000
----------------------------------------------------------------------------------------------------------------

    The Committee notes that although the Administration's 
request for emergency appropriations for Hurricane Katrina 
response was submitted on February 16, the Committee did not 
receive the finalized DD 1391 forms justifying Army National 
Guard military construction projects included in that request 
until February 27. This delay has made the Committee's 
responsibility to analyze the request unnecessarily difficult. 
Because of the minimal time allowed by the delay for analysis 
and discussion, the Committee is unable to recommend the 
construction of two Guard facilities for Jackson Barracks, 
Louisiana at this time. The Committee further directs the Army 
National Guard as well as all other services, components, and 
Defense agencies to ensure that 1391 forms for any future 
supplemental military construction requests are submitted in a 
timely manner.

               Military Construction, Air National Guard

    The Committee recommends $5,800,000 for Military 
Construction, Air National Guard as requested by the 
Administration. The funds are provided as follows:

----------------------------------------------------------------------------------------------------------------
                    Location                             Project description           Request    Recommendation
----------------------------------------------------------------------------------------------------------------
MS: CRTC Gulfport..............................  Upgrade Storm Water System........     $600,000       $600,000
MS: Key Field..................................  Replace Medical Training Facility.    4,700,000      4,700,000
Worldwide: Unspecified.........................  Planning and Design...............      500,000        500,000
                                                                                    ----------------------------
    Total......................................  ..................................    5,800,000      5,800,000
----------------------------------------------------------------------------------------------------------------

                  Military Construction, Navy Reserve


                    (INCLUDING RESCISSION OF FUNDS)

    The Committee recommends $24,270,000 for Military 
Construction, Navy Reserve as requested by the Administration. 
The funds are provided as follows:

----------------------------------------------------------------------------------------------------------------
                    Location                             Project description           Request    Recommendation
----------------------------------------------------------------------------------------------------------------
LA: NAS/JRB New Orleans........................  Command and Control Center........   $3,610,000     $3,610,000
LA: NAS/JRB New Orleans........................  Crash/Fire/Rescue Station.........    7,360,000      7,360,000
LA: NAS/JRB New Orleans........................  Public Works Complex..............   12,600,000     12,600,000
Worldwide: Unspecified.........................  Planning and Design...............      700,000        700,000
                                                                                    ----------------------------
    Total......................................  ..................................   24,270,000     24,270,000
----------------------------------------------------------------------------------------------------------------

    The Committee understands that the Navy Reserve will not 
expend $40,210,000 in emergency funds appropriated in P.L. 109-
148 for five military construction projects at Naval Support 
Activity New Orleans, as well as $9,320,000 for a fitness 
center at Naval Air Station/Joint Reserve Base New Orleans 
(Belle Chasse). These facilities will instead be repaired with 
operation and maintenance funds. The Committee therefore 
rescinds the $49,530,000 provided for those projects.

                     Department of Veterans Affairs


                      DEPARTMENTAL ADMINISTRATION

                      CONSTRUCTION, MAJOR PROJECTS

                     (INCLUDING TRANSFER OF FUNDS)

    The Committee recommendation includes $550,000,000 for a 
new hospital in New Orleans, Louisiana. The recommendation is 
$50,000,000 less than the supplemental request. Subsequent to 
submission of the supplemental, the Department submitted a 
report on construction options which recommended construction 
of a new medical center as a ``shared facility,'' subject to 
completion of a final report from the VA/Louisiana Medical 
Center Study Group. This option has a price estimate of 
$635,000,000, but includes excess funding for a 300 car parking 
garage. In addition, this estimate can be reduced by the amount 
of the advance funding already provided in the previous 
supplemental. These two reductions result in a net total of 
$550,000,000 necessary in additional funding.
    In addition, the Committee has included language making 
these funds available only upon enactment of an authorization 
for construction of the hospital.
    The Committee recommendation also includes a provision 
which allows the Secretary of Veterans Affairs to transfer up 
to $275,000,000 from this account to the Medical Services 
account for unanticipated medical costs of returning veterans 
fighting the Global War on Terror.

                    GENERAL PROVISIONS--THIS CHAPTER

    The Committee has not included a general provision, 
proposed in the supplemental request, to provide the Department 
of Veterans Affairs with authority to transfer previously 
appropriated funds from the Veterans Health Administration--
Medical Services account to other accounts of the Department. 
The provision would also allow $122,000,000 to be available 
until expended, for activation costs associated with a new 
hospital in New Orleans.
    The Committee has not included a proposed general provision 
to consolidate unobligated balances previously appropriated to 
the Armed Forces Retirement Home for capital costs for 
Gulfport, Mississippi and Washington, District of Columbia. The 
Committee will consider such consolidation when a final 
decision has been made regarding the plan of action for housing 
former residents of the Gulfport facility and appropriate 
authorization legislation is enacted.

                               CHAPTER 7


                         DEPARTMENT OF JUSTICE


                            Legal Activities


            SALARIES AND EXPENSES, GENERAL LEGAL ACTIVITIES

    The recommendation includes $2,000,000 for the Criminal 
Division and the Civil Division for necessary expenses to 
investigate and prosecute fraud cases stemming from the 
hurricanes in the Gulf Coast region. The budget request 
included $3,200,000 for under the Salaries and Expenses, United 
States Attorneys to be transferred to this account for these 
activities.

             SALARIES AND EXPENSES, UNITED STATES ATTORNEYS

    The recommendation includes $5,000,000 for necessary 
expenses of United States Attorneys Offices to investigate and 
prosecute fraud cases stemming from the hurricanes in the Gulf 
Coast region. The budget request proposed bill language 
authorizing the Attorney General to transfer funds from this 
account to other Department of Justice appropriations for fraud 
investigations and prosecutions. The recommendation does not 
provide this authority. Instead, the recommendation fully funds 
the level requested for United States Attorneys activities 
under this account, and provides $2,000,000 for the activities 
of the Criminal Division and Civil Division, under the General 
Legal Activities account.

                         DEPARTMENT OF COMMERCE


            National Oceanic and Atmospheric Administration


               PROCUREMENT, ACQUISITION AND CONSTRUCTION

    The recommendation includes $11,800,000 to complete the 
repair and reconstruction of the National Oceanic and 
Atmospheric Administration fisheries laboratory in Pascagoula, 
Mississippi. This amount is in addition to $13,200,000 provided 
for the same purpose in Public Law 109-148.

                                SCIENCE


             National Aeronautics and Space Administration


                        EXPLORATION CAPABILITIES

    The recommendation includes $30,000,000 for repair and 
rehabilitation of National Aeronautics and Space Administration 
facilities and other high priority requirements resulting from 
recent hurricanes.

                            RELATED AGENCIES


                     Small Business Administration


                     DISASTER LOANS PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

    The recommendation includes $1,254,000,000 for additional 
lending authority for the Small Business Administration's (SBA) 
disaster loan program. Language is included that transfers 
funds to the Federal Emergency Management Agency's Disaster 
Relief Fund to replenish funds that were transferred to the SBA 
pursuant to Public Law 109-174. Language is also included that 
allows up to $190,000,000 to be used for administrative 
expenses of the disaster loan program.
    The Committee is concerned by dramatic fluctuations in 
SBA's disaster lending subsidy estimates and will continue to 
monitor lending activity and expenditures. The Committee 
expects the SBA to expand its current reporting to include the 
following information related to all open disaster 
declarations: number of loan applications received; number and 
amount of loans approved, denied, and disbursed; loan subsidy 
obligations; and the costs associated with administering the 
loan program (including salaries, travel, and information 
systems). SBA should continue to keep the Committee apprised of 
pertinent disaster lending information in real-time.
    The Committee is aware that SBA's rate of processing 
disaster loan applications in the Gulf Coast hurricane-affected 
region has not kept pace with the intake of applications, 
resulting in an application backlog. The Committee directs the 
SBA to reduce the application backlog in half within 45 days of 
enactment of this Act, and, when that 45-day period expires, 
the SBA shall immediately submit to the Committee an action 
plan to resolve any remaining backlog.

                               CHAPTER 8


              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT


                   Community Planning and Development


                       COMMUNITY DEVELOPMENT FUND

                     (INCLUDING TRANSFER OF FUNDS)

    The Committee recommends $4,200,000,000 for necessary 
expenses related to disaster relief, long-term recovery, 
restoration of infrastructure, and mitigation in communities in 
any declared disaster area related to Hurricanes Katrina, Rita 
or Wilma. Not more than five percent of the funds granted may 
be used for administrative expenses.
    The Committee recommends not less than $1,000,000,000 for 
the repair, rehabilitation, and reconstruction of affordable 
rental housing. In addition, the Committee directs the 
Secretary to ensure that in each State's spending plan, 
priority is given to the restoration of affordable rental 
housing and infrastructure repair. The Committee's intent is to 
ensure that States are investing in not just homeownership, but 
in the housing needs of all affected residents and community 
rebuilding. The Committee strongly encourages the Governors of 
States receiving emergency community development funds to take 
advantage of the $20,000,000 provided in Public Law 109-148 for 
activities and programs by LISC and the Enterprise Foundation, 
in concert with the $1,000,000,000, to effectively leverage 
more private funds to expand affordable housing opportunities.
    The Committee's recommendation includes a transfer of up to 
$15,000,000 to the Office of Inspector General and the salaries 
and expenses account in order to fund oversight and 
administration activities. The Committee stresses the 
importance that these funds be spent in accordance with the 
underlying statutes and devoid of waste, fraud, and abuse.
    The Committee's recommendation includes a provision which 
prohibits States from using the funds under this heading as the 
State or local matching requirement, share, or contribution 
required by any other Federal program. It is the intent of the 
Committee that these funds are to be used for redevelopment of 
the hurricane affected areas.
    Similar to the terms and conditions of community 
development funds provided in Public Law 109-148, the Committee 
directs HUD, upon request by the state and a finding by the 
Secretary that such waiver would not be inconsistent with the 
overall purpose of the program, to issue certain waivers and to 
review the waivers after two years. In addition, the Committee 
requires several notification and reporting requirements prior 
to and during the period in which any waiver is in effect.

                           INDEPENDENT AGENCY


                    General Services Administration


                         FEDERAL BUILDINGS FUND

    The bill provides $37,000,000 for the short- and long-term 
repair and alterations of buildings damaged by the hurricanes 
of 2005.Multiple Federal buildings in the Gulf Coast received 
significant water and wind damage as a result of the hurricanes during 
2005. These funds will pay for the continuing clean-up and repair work 
that is necessary to make these facilities safe and fully functional.
    Other Matter.--While the Committee has not specifically 
addressed the issue of foreign control of U.S. airlines as 
proposed by the Department of Transportation, the Committee 
believes that the U.S. aviation industry is part of our 
critical infrastructure as are the ports. For this reason, it 
is critical that any final rule regarding foreign control of 
U.S. airlines not only comply with current laws regarding 
foreign ownership, but also comply with statutes recently 
passed by the Congress which require that all U.S. airlines be 
under the ``actual control'' of U.S. citizens. Therefore, the 
Committee directs the Secretary of Transportation to refrain 
from issuing a final rule for 120 days. The Committee is 
seriously concerned about the promulgation of any rule which 
would allow any minority foreign investor to exercise control 
or decision making authority over any aspect of a U.S. carrier 
operation.

        TITLE III--GENERAL PROVISIONS AND TECHNICAL CORRECTIONS

    Sec. 3001. Language is included language limiting the 
availability of funds provided to one year unless expressly 
provided for herein.
    Sec. 3002. Language is included making a technical 
correction related to the emergency watershed program.
    Sec. 3003. Language is included for Department of Defense--
Military concerning funds for intelligence related activities.
    Sec. 3004. Language is included rescinding $43,620,000 from 
the unobligated balances available in the Immigration and 
Customs and Enforcement ``Automation Modernization'' account 
and reappropriates these funds for United States Secret Service 
``Salaries and Expenses''. The Committee notes that the 
Department has been unable to program and obligate prior year 
funds for Immigration and Customs Enforcement ``Automation 
Modernization''.
    The recommendation includes $43,626,000 for critical 
investigative and protective operations of the United States 
Secret Service. The Committee is wholly disappointed with the 
Secret Service's budgetary formulation process and the 
performance of its Chief Financial Officer (CFO). While the 
workload of the agency has continued to grow significantly 
since 9/11, the Secret Service has failed miserably in 
presenting budget requests that align with investigative and 
protective requirements. This failure is evidenced not only by 
the Secret Service's inability to effectively plan for 
increases to protective mission requirements, but also the 
absence of proper notification of the reprogrammings in fiscal 
year 2005. This is unacceptable.
    Funds provided in this or any Act are unavailable to 
support the Secret Service CFO until the Committees on 
Appropriations receive a workload re-balancing report and 
budget formulation model for National Special Security Events 
as well as a comprehensive analysis of the methodology used to 
estimate current workloads and develop annual operating 
budgets.
    Funds provided in this section are unavailable for 
obligation until the Committees on Appropriations receive a 
revised Program, Project, and Activity schedule based on 
current investigative and protective workload requirements, 
including a comprehensive analysis of the methodology used to 
estimate those requirements.
    Sec. 3005. The Committee includes a provision expanding the 
households eligible for assistance to include HUD assisted 
project-based multifamily properties and waiving the 
requirements of Section 8(o)(7)(a) of the United States Housing 
Act of 1937 to enable the Department to establish voucher 
leases for 18 months.
    Sec. 3006. The Committee includes a provision making 
technical changes to transit grant funds awarded to the New 
York City Department of Transportation to be made available to 
the New York Metropolitan Transportation Authority for eligible 
capital projects.
    Sec. 3007. The Committee includes a provision making 
technical changes to economic development grants in Public Law 
108-447.
    Sec. 3008. The Committee includes a provision making 
technical changes to Public Law 109-115 and Public Law 109-148.
    Sec. 3009. The Committee has included a provision making 
technical changes to Public Law 109-115.
    Sec. 3010. The Committee includes a provision permitting 
the allocation of emergency funds provided under section 
9001(a)(2) of the Deficit Reduction Act of 2005 to be available 
during the remainder of Fiscal Year 2006 and Fiscal Year 2007 
and designating such funds as an emergency requirement.
    Sec. 3011. The Committee has included language prohibiting 
Dubai Ports World from purchasing an American subsidiary 
company that is involved in the operations of certain U.S. 
ports.
    Sec. 3012. The Committee has included language limiting the 
availability of funds for the Palestinian Authority or its 
successor until certain conditions are met.

               CHANGES IN THE APPLICATION OF EXISTING LAW

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill that directly or indirectly change the 
application of existing law.
    The bill includes several appropriations that are not 
authorized by law and as such may be construed as legislative 
in nature.
    The bill includes several emergency appropriation 
designations that may be construed as legislative in nature.
    Language is included that restricts the availability of the 
funds to the current fiscal year unless otherwise provided.
    Language is included for Department of Defense--Military, 
in title I, chapter 2, ``Operation and Maintenance, Navy'' 
which provides that up to $75,020,000 shall be available for 
operating expenses of the United States Coast Guard.
    Language is included for Department of Defense--Military, 
in title I, chapter 2, ``Operation and Maintenance, Defense-
Wide'' which provides $25,000,000 for the Combatant Commander 
Initiative Fund; includes language which provides additional 
authority for extraordinary and emergency expenses to support 
emergent requirements associated with the ongoing war on 
terrorism; provides up to $1,200,000,000 for reimbursements to 
other nations for logistical, military and other support 
provided for operations in Iraq; and provides $44,500,000 for 
the Cooperative Threat Reduction program.
    Language is included for Department of Defense--Military, 
in title I, chapter 2, ``Afghanistan Security Forces Fund'' 
which allows for the transfer of funds to other appropriations 
accounts of the Department of Defense.
    Language is included for Department of Defense--Military, 
in title I, chapter 2, ``Iraq Security Forces Fund'' which 
allows for the transfer of funds to other appropriations 
accounts of the Department of Defense.
    Language is included for Department of Defense--Military, 
in title I, chapter 2, which provides $2,000,000,000 of 
additional transfer authority for funds made available in this 
Act.
    Language is included for Department of Defense--Military, 
in title I, chapter 2, which provides that funds made available 
in ``Drug Interdiction and Counter-Drug Activities, Defense'' 
be available for assistance to the counter-narcotics forces of 
Afghanistan and Pakistan.
    Language is included for Department of Defense--Military, 
in title I, chapter 2, which provides that working capital 
funds of the Department may increase the limitation on advance 
billing.
    Language is included for Department of Defense--Military, 
in title I, chapter 2, which amends the amount of funds 
provided for the Commander's Emergency Response Program (CERP).
    Language is included for Department of Defense--Military, 
in title I, chapter 2, which allows the Department to use 
Afghanistan Security Forces Funds and Iraq Security Forces 
Funds for supervision and administration costs of construction 
projects which will be completed after fiscal year 2006.
    Language is included for Department of Defense--Military, 
in title I, chapter 2, which prohibits the initiation of new 
start programs without prior congressional approval.
    Language is included in title I makings funds appropriated 
or made available by transfer in this Act available 
notwithstanding section 313 of the Foreign Relations 
Authorization Act, Fiscal Years 1994 and 1995.
    Language is included in title I transferring $185,500,000 
from funds appropriated under the heading ``Iraq Relief and 
Reconstruction Fund'' in P.L. 108-106 to ``Economic Support 
Fund'' in this Act.
    Language is included in title I rescinding $17,000,000 from 
funds made available under the heading ``Peacekeeping 
Operations'' and made available for the Coalition Solidarity 
Initiative in P.L. 109-13.
    Language is included in title I that (1) extends the 
availability of funds provided for the Iraq Relief and 
Reconstruction Fund for an additional year from the date on 
which the availability of funds would otherwise have expired, 
if such funds are initially obligated before the expiration of 
the period of availability; and (2) extends the reporting 
requirements of section 207 of Public Law 108-106 for one 
additional year.
    Language is included in titles I and II under all 
Department of Defense, Military Construction accounts, which 
allows for the expenditure of funds for projects not otherwise 
authorized.
    Language is included in title I under Department of 
Defense, Military Construction, Army; Military Construction, 
Air Force; and Department of Veterans Affairs, Construction, 
Major Projects, which place conditions on the use of funds.
    Language is included under Department of Defense, General 
Provision--This Chapter, which expands the use of Department of 
Veterans Affairs, medical services funds provided in Public Law 
109-148.
    Language is included under Department of Defense, Military 
Construction, Army National Guard and Military Construction, 
Navy Reserve, which extend the availability of funds provided 
in Public Law 109-148.
    Language is included under the Department of Justice, 
Federal Bureau of Investigation, regarding funding availability 
for new or enhanced information technology systems.
    Language is included under Department of State, Diplomatic 
and Consular Programs, making funds available for transfer.
    Language is included under Department of State, Office of 
Inspector General, making funds available for transfer.
    Language is included in title I under Chapter 6, General 
Provisions, waiving certain requirements for authorization of 
appropriations.
    Language is included for Department of Defense--Military, 
in title II, chapter 2, ``Shipbuilding and Conversion, Navy'', 
which provides that funds are available for transfer within 
this account to replace destroyed or damaged equipment, prepare 
and recover naval vessels under contract; provides for cost 
adjustments for naval vessels for which funds have been 
previously appropriated; and requires notification to the 
congressional defense committees of any such transfer.
    Language is included for Department of Defense--Military, 
in title II, chapter 2, ``General Fund Payment, Surcharge 
Collections, Sales of Commissary Stores, Defense'', which 
provides funds for commissaries that were affected by the 
hurricanes.
    Language is included for Department of Defense--Military, 
in title II, chapter 2, which prohibits the initiation of new 
start programs without prior congressional approval.
    Language is included in title II, under Department of the 
Army, Corps of Engineers, which makes funds subject to 
authorization, requires certain reports, and sets forth certain 
conditions related to non-federal interests.
    Language is included in title II, under Department of 
Homeland Security, Office of Inspector General which provides 
for certain transfers.
    Language is included in title II, under Department of 
Homeland Security, United States Coast Guard which provides for 
certain transfers.
    Language is included in title II, under Federal Emergency 
Management Agency, Disaster Assistance Direct Loans regarding 
certain activities and transfers.
    Language is included in title II, under Chapter 4, General 
Provisions, which provides for funding for certain activities.
    Language is included in title II, under Chapter 4, General 
Provisions, regarding certain interest payments.
    Language is included in title II, under Department of 
Veterans Affairs, Departmental Administration, Construction, 
Major Projects which allows for the transfer of funds to 
Medical Services under certain conditions.
    Language is included in title II, under Small Business 
Administration, Disaster Loans Program Account, regarding 
certain transfers of funds.
    Language is included in title II, under Department of 
Housing and Urban Development, Community Development Fund, 
which provides for the allocation, use, and transfer of funds 
provided.
    Language is included in title II, under General Services 
Administration, concerning the repair and alternation of 
affected buildings.
    Language is included in title III for Department of 
Defense--Military concerning funds for intelligence related 
activities.
    Language is included in title III for Immigration and 
Customs Enforcement, Automated Modernization, rescinding 
certain funds.
    Language is included in title III making the use of funds 
provided in this Act, and prior appropriations Act, for the 
United States Secret Service subject to certain reporting 
requirements.
    Language is included in title III changing the eligible 
uses of certain funds previously appropriated for the 
Department of Housing and Urban Development related to disaster 
relief.
    Language is included in title III making technical changes 
to the allowable uses of certain funds provided in previous 
appropriations Acts.
    Language is included in title III change the availability 
of certain appropriations included in the Deficit Reduction Act 
of 2005.
    Language is included in title III prohibiting the 
acquisition of certain United States seaports.
    Language is included in title III relating to the 
availability of funds for the Palestinian Authority or its 
successor until certain conditions are met.

                           TRANSFER OF FUNDS

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following is submitted describing 
the transfer of funds provided in the accompanying bill.
    Language is included in Department of Defense--Military, in 
title I, chapter, ``Operations and Maintenance, Navy'' which 
provides for the transfer of funds to the United States Coast 
Guard.
    Language is included in Department of Defense--Military, in 
title I, chapter 2, ``Afghanistan Security Forces Fund'' which 
provides for the transfer of funds to other appropriations 
accounts of the Department of Defense.
    Language is included in Department of Defense--Military, in 
title I, chapter 2, ``Iraq Security Forces Fund'' which 
provides for the transfer of funds to other appropriations 
accounts of the Department of Defense.
    Language is included in Department of Defense--Military, in 
title I, chapter 2, ``Drug Interdiction and Counter-Drug 
Activities, Defense'' which transfers funds to other 
appropriations accounts of the Department of Defense.
    Language is included in Department of Defense--Military, in 
title I, chapter 2, in section 1201 which provides the 
Department with additional general transfer authority for funds 
made available in this Act.
    Language is included in title I transferring $185,500,000 
from funds appropriated under the heading ``Iraq Relief and 
Reconstruction Fund'' in P.L. 108-106 to ``Economic Support 
Fund'' in this Act.
    Language is included in Department of Defense--Military, in 
title II, chapter 2, ``Shipbuilding and Conversion, Navy'' 
which provides for the transfer of funds within this account to 
replace destroyed or damaged equipment and provide for cost 
adjustments for naval vessels for which funds have been 
previously appropriated.
    Language is included in title III for the Department of 
Defense--Military concerning funds for intelligence related 
activities.

                              RESCISSIONS

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following table is submitted 
describing the rescissions recommended in the accompanying 
bill:

                   Rescissions Recommended in the Bill

        Department/Activity           Amounts Recommended for Rescission
Peacekeeping Operations (P.L. 109-13)...................     $17,000,000
Department of Defense, Military Construction, Naval 
    Reserve (P.L. 109-148)..............................      49,530,000
Immigration and Customs Enforcement, Automation 
    Modernization (P.L. 109-90).........................      43,620,000

                  APPROPRIATIONS NOT AUTHORIZED BY LAW

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law:


                 COMPARISON WITH THE BUDGET RESOLUTION

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives requires an explanation of compliance with 
section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, which requires that the report accompanying a bill 
providing new budget authority contain a statement detailing 
how that authority compares with the reports submitted under 
section 302 of the Act for the most recently agreed to 
concurrent resolution on the budget for the applicable fiscal 
year.
    Appropriations in this bill are either designated emergency 
or offset in budget authority therein. Total fiscal year 2006 
emergency spending in this bill is $91,832,491,000 in budget 
authority. Emergency spending is not measured against the 
section 302 allocations.
    Nonemergency budget authority totals $43,620,000, offset by 
a $43,620,000 rescission for no net increase in budget 
authority measured against the 302 allocations. Nonemergency 
outlays increase by $7,000,000. The nonemergency spending and 
rescission are within the jurisdiction of the Homeland Security 
subcommittee, and the status of spending within that 
subcommittee relative to the 302(b) suballocations, including 
the effect of this bill, is as follows:

                                         FY 2006 DISCRETIONARY SPENDING
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  302(b) allocation       This bill and regular
                                                             --------------------------      appropriations
                                                                                       -------------------------
                                                                 Budget      Outlays       Budget
                                                               authority                 authority     Outlays
----------------------------------------------------------------------------------------------------------------
Homeland Security subcommittee..............................       30,846       33,233       30,846       33,191
----------------------------------------------------------------------------------------------------------------

                      FIVE-YEAR OUTLAY PROJECTIONS

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following table contains 
five-year projections associated with the budget authority 
provided in the accompanying bill:
                                                                Millions
Budget Authority..............................................   $91,832
Outlays:
    2006......................................................    23,336
    2007......................................................    36,048
    2008......................................................    17,958
    2009......................................................     7,955
    2010 and beyond...........................................     5,594

               ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

    In accordance with section 308(a)(1)(C) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the financial assistance to 
State and local governments is as follows:
                                                                Millions
Budget Authority..............................................   $13,239
Fiscal Year 2006 outlays resulting therefrom..................       624

                        CONSTITUTIONAL AUTHORITY

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives states that:

          Each report of a committee on a bill or joint 
        resolution of a public character, shall include a 
        statement citing the specific powers granted to the 
        Congress in the Constitution to enact the law proposed 
        by the bill or joint resolution.

    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America which 
states:

          No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law . . .

    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

          Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

DEPARTMENT OF DEFENSE, EMERGENCY SUPPLEMENTAL APPROPRIATIONS TO ADDRESS 
   HURRICANES IN THE GULF OF MEXICO, AND PANDEMIC INFLUENZA ACT, 2006


                          (Public Law 109-148)

                               DIVISION B


EMERGENCY SUPPLEMENTAL APPROPRIATIONS TO ADDRESS HURRICANES IN THE GULF 
                 OF MEXICO AND PANDEMIC INFLUENZA, 2006

  That the following sums are appropriated, out of any money in 
the Treasury not otherwise appropriated, to address hurricanes 
in the Gulf of Mexico and pandemic influenza for the fiscal 
year ending September 30, 2006, and for other purposes, namely:

TITLE I

           *       *       *       *       *       *       *



                               CHAPTER 7


                         DEPARTMENT OF DEFENSE


                     Veterans Health Administration


                            MEDICAL SERVICES

  For an additional amount for ``Medical Services'', 
$198,265,000, for necessary expenses related to the 
consequences of hurricanes in the Gulf of Mexico in calendar 
year 2005 and for unanticipated costs related to the Global War 
on Terror: Provided, That the amount provided under this 
heading is designated as an emergency requirement pursuant to 
section 402 of H. Con. Res. 95 (109th Congress), the concurrent 
resolution on the budget for fiscal year 2006.

           *       *       *       *       *       *       *


                               CHAPTER 9


DEPARTMENT OF TRANSPORTATION

           *       *       *       *       *       *       *



              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT


                       Public and Indian Housing


                     TENANT-BASED RENTAL ASSISTANCE

  For an additional amount for housing vouchers for households 
within the area declared a major disaster under the Robert T. 
Stafford Disaster Relief and Emergency Act (42 U.S.C. 5121 et 
seq.) resulting from hurricanes in the Gulf of Mexico during 
calendar year 2005, $390,299,500, to remain available until 
September 30, 2007: Provided, That such households shall be 
limited to those which, prior to Hurricanes Katrina or Rita, 
received assistance under section 8 or 9 of the United States 
Housing Act of 1937 (Public Law 93-383), section 801 or 811 of 
the Cranston-Gonzalez National Affordable Housing Act (Public 
Law 101-625), the AIDS Housing Opportunity Act (Public Law 101-
625), [or the Stewart B. McKinney Homeless Assistance Act 
(Public Law 100-77)] the McKinney-Vento Homeless Assistance 
Act, section 221(d)(3), 221(d)(5), or 236 of the National 
Housing Act, or section 101 of the Housing and Urban 
Development Act of 1965; or those which were homeless or in 
emergency shelters in the declared disaster area prior to 
Hurricanes Katrina or Rita: Provided further, That these funds 
are available for assistance, under section 8(o) of the United 
States Housing Act of 1937, except that paragraph (7)(A) of 
such section shall not apply: Provided further, That in 
administering assistance under this heading the Secretary of 
Housing and Urban Development may waive requirements for income 
eligibility and tenant contribution under section 8 of such Act 
for up to 18 months: Provided further, That all households 
receiving housing vouchers under this heading shall be eligible 
to reoccupy their previous assisted housing, if and when it 
becomes available: Provided further, That the amount provided 
under this heading is designated as an emergency requirement 
pursuant to section 402 of H. Con. Res. 95 (109th Congress), 
the concurrent resolution on the budget for fiscal year 2006.

           *       *       *       *       *       *       *


                                TITLE V


GENERAL PROVISIONS AND TECHNICAL CORRECTIONS

           *       *       *       *       *       *       *


  Sec. 5023. The statement of the managers correction 
referenced under the second paragraph of the heading 
``Community development fund'' [in title III of Public Law 109-
115 (as in effect pursuant to H. Con. Res. 308, 109th 
Congress)] in title III of division A of Public Law 109-115 is 
deemed to be amended--
          (1) * * *

           *       *       *       *       *       *       *

                              ----------                              


        DEPARTMENT OF HOMELAND SECURITY APPROPRIATIONS ACT, 2006


                          (Public Law 109-90)

TITLE III--PREPAREDNESS AND RECOVERY

           *       *       *       *       *       *       *



FEDERAL EMERGENCY MANAGEMENT AGENCY

           *       *       *       *       *       *       *



                     National Flood Insurance Fund


                     (INCLUDING TRANSFER OF FUNDS)

  For activities under the National Flood Insurance Act of 1968 
(42 U.S.C. 4001 et seq.), not to exceed $36,496,000 for 
salaries and expenses associated with flood mitigation and 
flood insurance operations; not to exceed $40,000,000 for 
financial assistance under section 1361A of such Act to States 
and communities for taking actions under such section with 
respect to severe repetitive loss properties, to remain 
available until expended; not to exceed $10,000,000 for 
mitigation actions under section 1323 of such Act; and not to 
exceed $99,358,000 for flood hazard mitigation, to remain 
available until September 30, 2007, including up to $40,000,000 
for expenses under section 1366 of the National Flood Insurance 
Act of 1968 (42 U.S.C. 4104c), which amount shall be available 
for transfer to the National Flood Mitigation Fund until 
September 30, 2007, and which amount shall be derived from 
offsetting collections assessed and collected pursuant to 
section 1307 of that Act (42 U.S.C. 4014), and shall be 
retained and used for necessary expenses under this heading: 
Provided, That in fiscal year 2006, no funds in excess of: (1) 
$55,000,000 for operating expenses; (2) $660,148,000 for 
commissions and taxes of agents; and (3) [$30,000,000 for 
interest on Treasury borrowings] such sums as necessary for 
interest on Treasury borrowings shall be available from the 
National Flood Insurance Fund.

           *       *       *       *       *       *       *

                              ----------                              


TRANSPORTATION, TREASURY, HOUSING AND URBAN DEVELOPMENT, THE JUDICIARY, 
THE DISTRICT OF COLUMBIA, AND INDEPENDENT AGENCIES APPROPRIATIONS ACT, 
                                  2006


                          (Public Law 109-115)

 DIVISION A--TRANSPORTATION, TREASURY, HOUSING AND URBAN DEVELOPMENT, 
THE JUDICIARY, AND INDEPENDENT AGENCIES APPROPRIATIONS ACT, 2006

           *       *       *       *       *       *       *



                               TITLE III


DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

           *       *       *       *       *       *       *



Community Planning and Development

           *       *       *       *       *       *       *



                       COMMUNITY DEVELOPMENT FUND

                     (INCLUDING TRANSFER OF FUNDS)

  For assistance to units of State and local government, and to 
other entities, for economic and community development 
activities, and for other purposes, $4,220,000,000, to remain 
available until September 30, 2008, unless otherwise specified: 
Provided, That of the amount provided, $3,748,400,000 is for 
carrying out the community development block grant program 
under title I of the Housing and Community Development Act of 
1974, as amended (the ``Act'' herein) (42 U.S.C. 5301 et seq.): 
Provided further, That unless explicitly provided for under 
this heading (except for planning grants provided in the second 
paragraph and amounts made available under the third 
paragraph), not to exceed 20 percent of any grant made with 
funds appropriated under this heading shall be expended for 
planning and management development and administration: 
Provided further, That $1,600,000 shall be transferred to the 
Working Capital Fund: Provided further, That $60,000,000 shall 
be for grants to Indian tribes notwithstanding section 
106(a)(1) of such Act, of which, notwithstanding any other 
provision of law (including section 305 of this Act), up to 
$4,000,000 may be used for emergencies that constitute imminent 
threats to health and safety; $50,000,000 shall be available 
for YouthBuild program activities authorized by subtitle D of 
title IV of the Cranston-Gonzalez National Affordable Housing 
Act, as amended, and such activities shall be an eligible 
activity with respect to any funds made available under this 
heading: Provided, That local YouthBuild programs that 
demonstrate an ability to leverage private and nonprofit 
funding shall be given a priority for YouthBuild funding: 
Provided further, That no more than eight percent of any grant 
award under the YouthBuild program may be used for 
administrative costs: Provided further, That of the amount made 
available for YouthBuild not less than $4,000,000 is for grants 
to establish YouthBuild programs in underserved and rural areas 
and $1,000,000 is to be made available for a grant to 
YouthBuild USA for capacity building for community development 
and affordable housing activities as specified in section 4 of 
the HUD Demonstration Act of 1993, as amended.
  Of the amount made available under this heading, $310,000,000 
shall be available for grants for the Economic Development 
Initiative (EDI) to finance a variety of targeted economic 
investments in accordance with the terms and conditions 
specified in the [statement of managers accompanying this Act] 
statement of managers correction for H.R. 3058 relating to the 
Economic Development Initiative submitted to the House of 
Representatives by the Chairman of the Committee on 
Appropriations of the House on November 18, 2005, and printed 
in the House section of the Congressional Record on such date: 
Provided, That none of the funds provided under this paragraph 
may be used for program operations: Provided further, That, for 
fiscal years 2004, 2005 and 2006, no unobligated funds for EDI 
grants may be used for any purpose except acquisition, 
planning, design, purchase of equipment, revitalization, 
redevelopment or construction.
  Of the amount made available under this heading, $50,000,000 
shall be available for neighborhood initiatives that are 
utilized to improve the conditions of distressed and blighted 
areas and neighborhoods, to stimulate investment, economic 
diversification, and community revitalization in areas with 
population outmigration or a stagnating or declining economic 
base, or to determine whether housing benefits can be 
integrated more effectively with welfare reform initiatives: 
Provided, That amounts made available under this paragraph 
shall be provided in accordance with the terms and conditions 
specified in the statement of managers accompanying this Act.

           *       *       *       *       *       *       *


           SECTION 9001 OF THE DEFICIT REDUCTION ACT OF 2005


SEC. 9001. FUNDING AVAILABILITY.

  (a) In General.--In addition to amounts otherwise made 
available, there are appropriated, out of any money in the 
Treasury not otherwise appropriated, to the Secretary of Health 
and Human Services [for a 1-time only obligation and 
expenditure]--
          (1) * * *
          (2) $750,000,000 [for fiscal year 2007] for 
        allocation under section 2604(e) of the Low-Income Home 
        Energy Assistance Act of 1981 (42 U.S.C. 8623(e)), to 
        remain available until September 30, 2007.
  [(b) Sunset.--The provisions of this section shall terminate, 
be null and void, and have no force and effect whatsoever after 
September 30, 2007. No monies provided for under this section 
shall be available after such date.]
  (b) Emergency Designation.--The amount provided under 
subsection (a)(2) is designated as an emergency requirement 
pursuant to section 402 of H. Con. Res. 95 (109th Congress), 
the concurrent resolution on the budget for fiscal year 2006.



                 ADDITIONAL VIEWS OF HON. DAVID R. OBEY

    In the wake of the attacks on the World Trade Center and 
the Pentagon, the President launched military action that 
destroyed the Taliban regime and dislodged Al Qaeda from 
Afghanistan. No thinking American could have or should have 
opposed the Afghanistan invasion that marked the first battle 
in the post-September 11th fight against terrorism.
    Soon after, however, this Administration led us into Iraq--
a country without proven links to the September 11th attacks or 
Al Qaeda. The intelligence used to justify the invasion was 
seriously flawed at best, purposefully manipulated at worst. 
The rationale for war--Saddam Hussein's arsenal of weapons of 
mass destruction--had no proven basis in fact. Yet we find 
ourselves in Iraq just the same.
    Today, after more than 2,300 American military deaths, 
nearly 17,000 Americans wounded, and $334 billion spent, our 
nation remains entangled in a thicket of insurgent and 
sectarian violence. The Administration's mistakes and 
mischaracterizations have the American people deeply troubled 
by our involvement in Iraq.
    The vast majority of this supplemental bill--$67.7 
billion--is for Defense Department's activities in Iraq and 
Afghanistan. Just as with earlier war supplementals, this 
funding will be provided in a manner that allows the 
Administration and the Secretary of Defense significant 
flexibility. It should be clear by now that Congress went far 
beyond what was reasonable in that regard. What did the nation 
get for it?
         A $20 billion bill for Iraq reconstruction 
        when we were told it would cost between $1 billion and 
        $2 billion and be financed by Iraqi oil revenues. 
        Secretary Rumsfeld told us, ``We just had no idea how 
        bad the Iraqi economy was.'' Billions of dollars later, 
        electricity and oil production remain below prewar 
        levels and unemployment ranges between 60 and 90 
        percent in many parts of the country.
         A claim that we would be greeted as liberators 
        and that we could begin withdrawing troops six months 
        after the invasion. Despite the warnings of General 
        Shinseki and others, Secretary Rumsfeld testified 
        before our Committee that we could reduce our troop 
        deployment to about 35,000 by December 2003. Today, our 
        deployment is roughly 130,000, down only slightly from 
        the 150,000 of the year before.
         A failure to plan that has left our Army 
        stretched thin. The lack of manpower resulted in the 
        Abu Ghraib scandal, which was fostered by untrained 
        manpower guarding prisoners. Poor planning also left 
        our troops salvaging scrap metal to protect unarmored 
        Humvees. Even today, questions remain about whether our 
        entire force is equipped with adequate armor.
    With the passage of this supplemental, Congress will have 
appropriated over $400 billion for the wars in Iraq and 
Afghanistan and related reconstruction. Yet over the next 
several months this Congress will squabble over a fraction of 
that amount to strengthen homeland security, provide heating 
for our elderly, educate our children, and deliver medical care 
for our veterans. The security of our country will not be 
appreciably strengthened if while spending billions on Iraq, we 
are neglecting needed investments here at home. During the 
Committee's consideration of this bill, Democrats repeatedly 
attempted to reorder the nation's priorities in ways that more 
accurately reflected our security and domestic needs. Yet each 
time these efforts were opposed by the Republican Majority.

                 Reducing Vulnerabilities to Terrorism

    When the President spoke to the nation from New Orleans 
after Hurricane Katrina, he said: ``Four years after the 
frightening experience of September the 11th, Americans have 
every right to expect a more effective response in a time of 
emergency.'' Unfortunately, neither the President's request nor 
this bill addresses known vulnerabilities.

                             PORT SECURITY

    U.S. ports handle over 95 percent of overseas trade and the 
volume of goods imported and exported through ports is expected 
to double over the next 20 years. Democrats have made securing 
America's ports a top priority, but the Administration and the 
Republican Leadership of the Congress have left us dangerously 
underprotected.
    For example, a Democratic amendment offered by 
Representative Sabo would have expanded the Container Security 
Initiative (CSI) and the MegaPorts program. CSI identifies high 
risk shipping containers for inspection while MegaPorts places 
radiation detection equipment at ports to detect illegal 
shipments of nuclear and radiological materials. Today, CSI is 
operating in only 42 of 140 overseas ports that ship directly 
to the U.S. and MegaPorts will only have 13 radiation monitors 
in place by the end of FY 2007. The Sabo amendment would have 
provided $300 million to expand the CSI program to all ports 
that ship to the U.S. and $300 million to bring radiation 
detectors to 29 additional foreign ports. The amendment would 
have also provided an additional $375 million for port security 
improvements and $125 million to expand the Coast Guard's port 
security inspections and exercises. Republicans defeated the 
amendment.

     PREPARING FOR AND RESPONDING TO NATURAL AND TERRORIST ATTACKS

    The 2002 Hart-Rudman report concluded that ``America's own 
ill-prepared response could hurt its people to a much greater 
extent than any single attack by terrorists.'' Katrina revealed 
the truth of this statement.
    After Katrina, America should be moving to help improve 
emergency communications, bolster disaster planning by State 
and local governments, invest in emergency managers,and 
mitigate disaster damage through improved disaster development. This 
supplemental falls short in each of these areas.
    The Sabo amendment would have provided an additional $300 
million to fund emergency communications backup capability 
nationwide, $50 million to improve disaster plan coordination, 
$260 million for Emergency Management Performance Grants, $140 
million for fire grants, and $50 million for Project Impact 
disaster mitigation efforts. Republicans defeated the 
amendment.

                 TRANSIT, AVIATION AND BORDER SECURITY

    While there have been improvements, large vulnerabilities 
remain in commercial aviation. Out of the 448 commercial 
airports in the United States, only 25 have received new 
checkpoint technologies to screen passengers for explosives. In 
addition, only a small percentage of cargo carried on passenger 
aircraft is screened for explosives, leaving a huge security 
loophole. The Sabo amendment defeated in Committee would have 
provided an additional $350 million to expand the screening of 
passengers and checked bags for explosives, expand the 
screening of air cargo carried on passenger aircraft, and 
provide for more efficient in-line explosive detection systems.
    Aviation security has seen improvements for obvious 
reasons. Rail security, however, remains virtually unaddressed. 
While there were 181 terrorist attacks on rail targets 
worldwide from 1998 to 2003 only about $600 million of the 
estimated $6 billion needed has been invested by the Department 
of Homeland Security and the Department of Transportation in 
improving transit security. The Sabo amendment defeated in 
Committee would have provided an additional $350 million to 
close critical transit security problems, close to 50 percent 
more funding than has been provided to date.
    Committee Democrats also sought to bolster security along 
America's borders by putting better technology to work. Today, 
radiation portal monitors are not installed at all land entry 
points in the United States. DHS does not plan to compete this 
until at least 2011. The Sabo amendment defeated in Committee 
would have provided an additional $600 million to ensure 
greater air surveillance of our borders and that each land 
entry point is able to inspect containers for radiation using 
sophisticated portal monitors.

      STRENGTHENING REVIEW OF FOREIGN TAKEOVERS OF CRITICAL ASSETS

    The recent Dubai Ports World controversy makes clear that 
the process by which foreign takeovers of critical assets and 
operations are approved is not what is best for homeland 
security. The current review process is very loose in that none 
of the top officials in the Executive Branch, including the 
President, are informed of the transactions under review or 
even of those that have been approved.
    An amendment offered in Committee by Representative Sabo 
would have strengthened the current review process by requiring 
mandatory notification of all proposed takeovers; Presidential 
approval or disapproval; and, Congressional notification and an 
opportunity for Congress to overturn Presidential decisions. 
All but one Committee Republican opposed this amendment.

              Helping Families Deal With High Energy Costs

    As American consumers know, energy prices are though the 
roof. Compared to last winter, average prices are up 23 percent 
for natural gas, 24 percent for home heating oil, and 16 
percent for propane. Unfortunately, LIHEAP, which provides 
energy assistance to the most vulnerable in our society, was 
cut by $21 million this year. LIHEAP currently serves only 16 
percent of those eligible for help and, due to increased demand 
for assistance, the amount of help a household receives has 
shrunk by 10 percent over the last four years.
    A Democratic amendment would have provided $1 billion for 
LIHEAP heating assistance grants this year. A Republican 
amendment cut the Democratic amendment by $250 million, most of 
which would have gone to Southern and Western states, and makes 
the remaining $750 million available over two years, allowing 
the Administration to avoid releasing much, if any, of that 
funding this year to deal with the current crisis in home 
energy prices.

     Giving Seniors the Chance To Make Good Decisions About Their 
                        Prescription Drug Plans

    There is a real need to provide affordable prescription 
drug coverage to senior citizens and people with disabilities, 
but the privately-run prescription drug plans set up by the 
Republican Medicare legislation are a mess. Republicans chose 
to deliver drug coverage through a bewildering array of 
insurance companies and private drug benefit managers. As a 
result, seniors in most states must select among more than 40 
different private drug plans, each with a different premium, 
its own list of covered drugs, its own prices, and its own 
policies regarding which drugs will require prior approval or 
higher co-payments. Further, the plans are permitted to keep 
changing their policies regarding covered drugs throughout the 
year.
    An amendment sponsored by Representative Berry offered a 
fundamental fix for all this confusion: have Medicare operate 
the drug benefit program itself, just as it has operated a 
health insurance program for the past 40 years. This plan would 
have uniform premiums, co-payments, and drug coverage policies 
throughout the nation. Enrollment in this Medicare-operated 
drug plan would be voluntary, but it would be available to any 
beneficiary seeking an alternative to navigating the myriad of 
competing private plans each year. It would have also allowed 
Medicare to use the united purchasing power of what is likely 
to be tens of millions of beneficiaries to negotiate lower drug 
prices.
    The amendment also offered interim improvements for seniors 
and people with disabilities seeking coverage this year through 
the system now in place. First, it gave those eligible 
additional time to sign up for Medicare drug plans this year 
without paying a penalty. Under current law, beneficiaries must 
pick a plan and sign up by May 15 orface higher premiums. Given 
the complicated choices, offering seniors until the end of the year to 
enroll without penalty is only fair. In addition, seniors would be 
allowed to change plans once during 2006 if they find that a different 
option is more appropriate for them than their original choice.
    This amendment was defeated by the Republican Majority.

           Fighting Back Against Special Interest Protections

    Last year, Republicans attached a provision to the FY 2006 
Defense Appropriations Act that gives the Secretary of Health 
and Human Services power to confer sweeping liability 
protection on manufacturers of drugs and other medical 
products.
    This provision was written by very powerful people in the 
Congress. It was never considered by any Committee of the House 
or Senate. There were no markups, where members with expertise 
in the subject deliberated and voted in public. It was simply 
inserted into the Defense bill one night after the bill had 
already been approved by the conference Committee charged with 
its drafting. In a democratic institution, that should not have 
happened.
    A Democratic amendment offered by Representative DeLauro 
and defeated by the Republican Majority would have repealed the 
flawed provision effective September 30th, to give Congress 
ample time to enact a reasonable substitute through the normal 
legislative process.

           Protecting Taxpayers From Waste, Fraud, and Abuse

    Once this supplemental is passed we will have spent almost 
half a trillion dollars in total executing the wars in Iraq and 
Afghanistan and rebuilding after Hurricanes Katrina and Rita. 
In both cases, there are serious questions about how the 
taxpayer's money is being spent. To date, however, Congress has 
failed to conduct appropriate oversight that would root out 
waste, fraud and abuse.

 A NEW ``TRUMAN'' INVESTIGATIVE COMMITTEE FOR THE GLOBAL WAR ON TERROR 
                       AND KATRINA RECONSTRUCTION

    History provides a good model of just how Congress can go 
about protecting the taxpayer from wasteful spending and 
unscrupulous contractors. In early 1941, Senator Harry S. 
Truman began questioning whether there was favoritism, fraud 
and waste in the nation's rearmament effort. The outgrowth of 
his inquiries became the Senate Special Committee to 
Investigate the National Defense Program, later known as the 
Truman Committee.
    The Truman Committee uncovered instances of powerful 
interests influencing contract awards, businesses overcharging 
for services, and government failing to be a good steward of 
the taxpayer's money. From its creation in 1941 until it 
expired in 1948, the Committee held 432 public hearings and 300 
executive sessions, went on hundreds of fact-finding missions, 
and issued 51 reports--earning high marks for its thoroughness 
and efficiency throughout. By the time of its dissolution, the 
Committee's recommendations saved an estimated $15 billion, and 
likely even saved lives.
    The need for a modern day Truman Committee could not be 
clearer. Representative Kaptur offered an amendment 
establishing a select Committee of the House to conduct ongoing 
studies and investigations of the awarding and carrying out of 
contracts by the Government for military operations and relief 
and reconstruction activities related to the global war on 
terrorism (including all activities in Afghanistan and Iraq), 
and Hurricane Katrina recovery, relief, and reconstruction 
efforts. The amendment was defeated by the Republican Majority 
on a party line vote.

           SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION

    The Office of the Special Inspector General for Iraq 
Reconstruction (SIGIR) oversees the majority of the $40 billion 
of U.S. taxpayer funds meant for Iraq reconstruction. The SIGIR 
is a notable success amid the numerous failures of 
reconstruction efforts. Recent SIGIR investigations and 
initiatives include establishing a database to monitor all Iraq 
contracts, undertaking a comprehensive analysis of the 
reconstruction program, and pursuing waste fraud and abuse of 
Iraqi funds under US management during the Coalition 
Provisional Authority governorship of Iraq.
    The SIGIR has proven its value, and Congress acknowledged 
this last year when it extended its authorization. However, the 
Majority has inexplicably decided to exempt the $1.7 billion 
for reconstruction and development assistance for Iraq in this 
bill from the SIGIR's oversight. Without the SIGIR, it is not 
clear who would be the watchdog over American taxpayer dollars. 
The USAID IG only has eight staff in Iraq. The State Department 
IG has not staff in Iraq. The SIGIR has 100 staff in Iraq. An 
amendment offered by Representative Lowey would have allowed 
the SIGIR oversight of these new reconstruction funds. It was 
defeated by the Republican Majority on a party line vote.

                               Conclusion

    The Democratic amendments offered in Committee were common-
sense proposals to improve our nation's security and the 
quality of life for Americans. A responsible Congress would 
have found a way to support these suggested improvements to the 
bill.

                                                         Dave Obey.

               ADDITIONAL VIEWS OF HON. MARTIN OLAV SABO

    Regardless of how one feels about Dubai Ports World's 
attempt to acquire U.S. port terminal operations, the deal 
shined a bright spotlight on the obscure process by which the 
Bush Administration analyzes critical U.S. industry takeovers 
by foreign entities.
    We now know that the Administration appeared to be 
sleepwalking, instead of conducting a rigorous national 
security review of the DP World transaction to acquire shipping 
terminals at six major U.S ports. The President and the 
secretaries of Homeland Security, Treasury and Defense were 
unaware of the deal until DP World issued a press release 
announcing it.
    In fact, the foreign investment review process may be less 
rigorous today than for reviews that took place before 9/11. 
The last port operation takeover examined prior to 2001 appears 
to have taken twice as long as the analysis of the proposed 
Dubai acquisition. It also appears that some critical foreign 
takeover transactions in recent years may not even have been 
reviewed by the Bush Administration.
    The Committee approved overwhelmingly an amendment to kill 
the DP World port terminal acquisition. However, I am 
disappointed that it did not address the larger, underlying 
problem of the broken foreign investment review process. I 
offered an amendment to strengthen this process to analyze, 
review and approve or disapprove of foreign takeover 
transactions.
    My amendment, which was defeated by a 35 to 30 vote, would 
have strengthened the current review process in the following 
ways:
         By requiring all foreign transactions that 
        could result in foreign control of any person engaged 
        in interstate commerce to undergo a full CFIUS 
        (Committee on Foreign Investment in the United States) 
        review. Today, foreign firms voluntarily notify us of 
        these transactions. I believe notification must be 
        mandatory to ensure that our government knows about all 
        of them.
         By requiring the President to approve or 
        disapprove of all transactions. Today, if the President 
        takes no action the transaction is automatically 
        approved.
         By making the full 75-day review automatic. 
        Current practice allows most transactions to be 
        reviewed within 30 days, with an additional 45 days 
        only if flags are raised.
         By requiring that Congress be notified of 
        Presidential approvals, and providing for Congress to 
        overturn decisions within 30 days by a joint 
        resolution. Today, Congress is notified of a CFIUS 
        transaction only when the President disapproves one.
         By requiring a report to Congress within 90 
        days of foreign ownership of all US critical 
        infrastructure. Today, no one really knows how much of 
        our critical infrastructure is in the hands of foreign 
        companies and foreign governments.
    Failing to fix the inherent flaws in the CFIUS review 
process could leave our nation in a vulnerable security posture 
in the future. We shouldn't take that chance.
    Fixing CFIUS is only part of the solution, however. 
Congress should also provide additional resources to more 
quickly close the many homeland security gaps that we know 
terrorists would like to exploit.
    I also offered an amendment to provide $3.4 billion in 2006 
to beef up port, aviation, transit and border security and 
improve terrorism and disaster preparedness. My amendment, 
which was defeated by a party line vote of 27-34, would have 
strengthened our nation's security in the following ways:
         By providing more customs agents and equipment 
        at all overseas ports that ship directly to the US. 
        Today, only 42 of the 140 overseas ports that ship 
        directly to the US have this system in place.
         By installing radiation detectors at the top 
        42 overseas ports, compared to the 13 planned for by 
        the Department of Energy, and at all of our land 
        borders.
         By increasing Coast Guard inspections of 
        foreign and domestic ports and by funding port security 
        projects that the Captains of the Ports believe are top 
        priorities.
         By updating flood maps in high risk locations 
        and improving our nation's emergency communication 
        back-up capabilities.
         By improving the capabilities of our emergency 
        responders and firefighters.
         By assessing and improving the preparedness of 
        our localities with more exercises.
         By correcting some of the most catastrophic 
        transit security deficiencies.
         By increasing the number of airports where 
        both air cargo and passengers are more likely to be 
        screened for explosives.
         By expanding air patrolling and surveillance 
        of our borders.
    No one can disagree that we should make these homeland 
security investments. The question is WHEN. I believe we should 
strengthen our defenses now. Apparently, the Republican 
Congress and the White House think we can wait. I hope the 
American people will not suffer consequences because of their 
decision to delay.

                                                  Martin Olav Sabo.