House Report 113-446, Part 2 - 113th Congress (2013-2014)
May 19, 2014, As Reported by the Armed Services Committee

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House Report 113-446 - HOWARD P. ``BUCK'' McKEON NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2015




[House Report 113-446]
[From the U.S. Government Publishing Office]


113th Congress  }                                     {   Rept. 113-446
  2d Session    }        HOUSE OF REPRESENTATIVES     {          Part 2

=======================================================================
 
HOWARD P. ``BUCK'' MCKEON NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL 
                               YEAR 2015 

                                _______
                                

  May 19, 2014.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

           Mr. McKeon, from the Committee on Armed Services, 
                        submitted the following

                          SUPPLEMENTAL REPORT

                        [To accompany H.R. 4435]

      [Including cost estimate of the Congressional Budget Office]

    This supplemental report shows the cost estimate of the 
Congressional Budget Office with respect to the bill (H.R. 
4435), as reported, which was not included in part 1 of the 
report submitted by the Committee on Armed Services on May 13, 
2014 (H. Rept. 113-446, pt. 1).

                  Congressional Budget Office Estimate

    In compliance with clause 3(c)(3) of rule XIII of the House 
of Representatives, the cost estimate prepared by the 
Congressional Budget Office and submitted pursuant to section 
402 of the Congressional Budget Act of 1974 is as follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 16, 2014.
Hon. Howard P. ``Buck'' McKeon,
Chairman, Committee on Armed Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4435, the Howard 
P. ``Buck'' McKeon National Defense Authorization Act for 
Fiscal Year 2015.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is David Newman.
            Sincerely,
                                         Robert A. Sunshine
                             (For Douglas W. Elemendorf, Director).
    Enclosure.

H.R. 4435--Howard P. ``Buck'' McKeon National Defense Authorization Act 
        for Fiscal Year 2015

    Summary: H.R. 4435 would authorize appropriations totaling 
$594 billion for fiscal year 2015 for the military functions of 
the Department of Defense (DoD), for certain activities of the 
Department of Energy (DOE), and for other purposes. That total 
includes $79 billion for the cost of overseas contingency 
operations, primarily in Afghanistan. In addition, H.R. 4435 
would prescribe personnel strengths for each active-duty and 
selected-reserve component of the U.S. armed forces. CBO 
estimates that appropriation of the authorized amounts would 
result in outlays of $581 billion over the 2015-2019 period.
    The bill also contains provisions that would increase or 
decrease the costs of defense programs funded through 
discretionary appropriations in 2016 and future years. Those 
implicit authorizations would affect force structure, DoD 
compensation and benefits, and other programs and activities. 
CBO has analyzed the costs of a select number of those 
authorizations and estimates that they would, on a net basis, 
lower the amount of appropriations needed to implement defense 
programs relative to current law by about $29 billion over the 
2016-2019 period. The effects of those reductions are not 
included in the total amount of outlays in the previous 
paragraph because funding for those activities would be covered 
by specific authorizations in future years.
    In addition, H.R. 4435 contains provisions that would 
affect direct spending. CBO estimates that, on net, those 
provisions would decrease direct spending by $35 million over 
the 2015-2019 period, but increase such spending by $1 million 
over the 2015-2024 period. Because enacting the legislation 
would affect direct spending, pay-as-you-go procedures apply. 
Enacting the bill would not affect revenues.
    The bill would impose an intergovernmental mandate as 
defined in the Unfunded Mandates Reform Act (UMRA) by 
preempting state laws governing child custody in some cases. 
Although the mandate would limit the application of state laws, 
it would impose no duty on states that would result in 
additional spending. Therefore, CBO estimates that the cost of 
the mandate would fall well below the threshold established in 
UMRA for intergovernmental mandates ($76 million in 2014, 
adjusted annually for inflation).
    Also, this bill contains a new private-sector mandate as 
defined in UMRA by imposing a time limit on filing claims 
against the United States for losses covered by the Federal 
Aviation Administration's War Risk Insurance Program. CBO 
estimates that the cost of this mandate would be small and 
would fall well below the private-sector threshold established 
in UMRA ($152 million in 2014, adjusted annually for 
inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary effects of H.R. 4435 are summarized in Table 1. 
Almost all of the $594 billion that would be authorized by the 
bill is for activities within budget function 050 (national 
defense). Some authorizations, however, fall within other 
budget functions, including: $226 million for the Maritime 
Administration (function 400--transportation); $147 million for 
activities within the Department of Veterans Affairs (function 
700--veterans benefits and services); $63 million for the Armed 
Forces Retirement Home (function 600--income security); and $20 
million for the Naval Petroleum Reserves (function 270--
energy).
    The provisions that would affect direct spending are 
primarily for activities within budget functions 050 and 600.
    Basis of estimate: For this estimate, CBO assumes that H.R. 
4435 will be enacted near the end of fiscal year 2014 and that 
the authorized and estimated amounts will be appropriated at 
about that time.

  TABLE 1--BUDGETARY EFFECTS OF H.R. 4435, THE HOWARD P. ``BUCK'' McKEON NATIONAL DEFENSE AUTHORIZATION ACT FOR
                                                FISCAL YEAR 2015
----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                          ------------------------------------------------------
                                                              2015       2016       2017       2018       2019
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Specified Authorization of Regular
 Appropriations for 2015, Primarily for the
 Departments of Defense and Energy:
    Authorization Level.....................     514,263           0          0          0          0    514,263
    Estimated Outlays.......................     329,991     106,494     39,146     18,397      8,343    502,372
Estimated Authorization of Additional
 Regular Appropriations for 2015 for Accrual
 Payments:a
    Estimated Authorization Level...........         727           0          0          0          0        727
    Estimated Outlays.......................         727           0          0          0          0        727
Specified Authorization of Appropriations
 for Overseas Contingency Operations:
    Authorization Level.....................      79,445           0          0          0          0     79,445
    Estimated Outlays.......................      40,017      24,784      8,778      3,066        958     77,602
Other Authorizations of Appropriations:b
    Estimated Authorization Level...........           0           8          0          0          0          8
    Estimated Outlays.......................           0           6          2          0          0          8
                                             -------------------------------------------------------------------
    Total
        Estimated Authorization Level.......     594,435           8          0          0          0    594,443
        Estimated Outlays...................     370,735     131,284     47,926     21,463      9,301    580,709

                                           CHANGES IN DIRECT SPENDINGc

Estimated Budget Authority..................          -1         -30        -11          *          7        -35
Estimated Outlays...........................          -1         -30        -11          *          7       -35
----------------------------------------------------------------------------------------------------------------
Notes: Except as noted below, the authorization levels in this table reflect amounts that would be specifically
  authorized by the bill. The bill also would implicitly authorize some defense activities in 2016 and future
  years; those authorizations are not included above (but estimates for a select number of them are shown in
  Table 3) because funding for those activities would be covered by specific authorizations in future years.
* = less than $500,000; Numbers may not add up to totals because of rounding.
\a\This authorization reflects CBO's estimate of the added cost of certain accrual payments required under
  current law but not fully reflected in the amounts specifically authorized by the bill.
\b\This authorization reflects the estimated cost for extending certain benefits to federal civilian workers who
  perform official duties in a combat zone and are employed by departments and agencies other than DoD.
\c\In addition to the changes in direct spending shown above (a decrease of $35 million over the 2015-2019
  period), H.R. 4435 would have effects beyond 2019. CBO estimates that over the 2015-2024 period, H.R. 4435
  would increase direct spending by $1 million (see Table 4).

Spending Subject to Appropriation

    The bill would authorize appropriations for 2015 totaling 
$594 billion, of which $51 billion would be specific 
authorizations of regular appropriations for ``base budget'' 
costs (not directly related to overseas contingency 
operations). Funding for base budget costs would be 
specifically authorized as follows: $496 billion for DoD and 
$18 billion for atomic energy defense activities of DOE and for 
various other programs (see Table 2).
    The funding that would be authorized for DoD's base budget 
is $1 billion above the appropriations enacted for 2014. For 
that comparison, the amount that would be authorized for DoD's 
base budget also reflects CBO's estimate of the additional 
amount needed--$727 million--to fully fund certain accrual 
payments required under current law but not fully reflected in 
the amounts specifically authorized by the bill. Funding would 
increase for both operation and maintenance ($4 billion, or 2 
percent) and for research and development ($1 billion, or 2 
percent), and would remain nearly unchanged for two other large 
categories of spending--military personnel and procurement. 
Funding for military construction, family housing, and the 
department's revolving funds would--on a combined basis--
decline by $4 billion, or about 30 percent.
    For DOE and other programs, the $18 billion that would be 
authorized for 2015 represents a $0.5 billion (3 percent) 
increase over the amount appropriated for 2014.
    The $79 billion that would be authorized for overseas 
contingency operations represents a $6 billion (7 percent) 
decline relative to current appropriations. Funding for 
operation and maintenance would decline by $4 billion (5 
percent), while funding for military personnel would decrease 
by $1 billion (12 percent). Appropriations for all other 
categories (combined) would also decline by $1 billion (12 
percent).
    H.R. 4435 also contains provisions that would affect the 
cost of various discretionary programs in future years. Most of 
those provisions would affect end strength, military 
compensation and benefits, and DoD's acquisition programs. The 
estimated effects of some of those provisions are shown in 
Table 3 and discussed below. The following discussion does not 
address the timing of outlays from those estimated 
authorizations. All such spending would be subject to 
appropriation action.

                        TABLE 2--SPECIFIED AUTHORIZATIONS OF APPROPRIATIONS IN H.R. 4435
----------------------------------------------------------------------------------------------------------------
                                                            By fiscal year, in millions of dollars--
                                               -----------------------------------------------------------------
                                                   2015       2016       2017       2018       2019    2015-2019
----------------------------------------------------------------------------------------------------------------
Authorization of Regular Appropriations:
    Department of Defense
        Military Personnel:\a\
            Authorization Level...............    135,244          0          0          0          0    135,244
            Estimated Outlays.................    125,358      8,053        676         37          0    134,125
        Operation and Maintenance:
            Authorization Level...............    196,987          0          0          0          0    196,987
            Estimated Outlays.................    138,400     40,295      9,797      3,592      1,342    193,426
        Procurement:
            Authorization Level...............     92,078          0          0          0          0     92,078
            Estimated Outlays.................     20,783     27,887     20,989     11,749      5,142     86,550
        Research and Development:
            Authorization Level...............     63,791          0          0          0          0     63,791
            Estimated Outlays.................     31,224     23,028      4,723      2,151      1,481     62,607
        Military Construction and Family
         Housing:
            Authorization Level...............      6,807          0          0          0          0      6,807
            Estimated Outlays.................        953      2,095      1,973        890        398      6,309
        Revolving Funds:
            Authorization Level...............      1,334          0          0          0          0      1,334
            Estimated Outlays.................      1,123        206          5          0          0      1,334
        General Transfer Authority:
            Authorization Level...............          0          0          0          0          0          0
            Estimated Outlays.................        200        -80        -60        -40        -20          0
            Subtotal, Department of Defense:
                Authorization Level...........    496,241          0          0          0          0    496,241
                Estimated Outlays.............    318,041    101,484     38,103     18,379      8,343    484,351
        Atomic Energy Defense Activities:
            Authorization Levelb..............     17,565          0          0          0          0     17,565
            Estimated Outlays.................     11,625      4,933      1,007          0          0     17,565
        Other Programs:
            Authorization Levelc..............        457          0          0          0          0        457
            Estimated Outlays.................        325         77         36         18          0        456
            Subtotal, Authorization of Regular
             Appropriations:
                Authorization Level...........    514,263          0          0          0          0    514,263
                Estimated Outlays.............    329,991    106,494     39,146     18,397      8,343    502,372
Authorization of Appropriations for Overseas
 Contingency Operations:
    Military Personnel:
        Authorization Level...................      7,140          0          0          0          0      7,140
        Estimated Outlays.....................      6,633        450          7          0          0      7,090
    Operation and Maintenance:
        Authorization Level...................     64,675          0          0          0          0     64,675
        Estimated Outlays.....................     31,238     21,925      7,114      2,264        517     63,058
    Procurement:
        Authorization Level...................      6,180          0          0          0          0      6,180
        Estimated Outlays.....................      1,607      2,095      1,421        618        315      6,056
    Other:d
        Authorization Level...................      1,450          0          0          0          0      1,450
        Estimated Outlays.....................        464        344        258        199        133      1,398
        Special Transfer Authority:
            Authorization Level...............          0          0          0          0          0          0
            Estimated Outlays.................         75        -30        -23        -15         -8          0
            Subtotal, Overseas Contingency
             Operations:
                Authorization Level...........     79,445          0          0          0          0     79,445
                Estimated Outlays.............     40,017     24,784      8,778      3,066        958     77,602
                                               -----------------------------------------------------------------
Total Specified Authorizations:
    Authorization Level.......................    593,708          0          0          0          0    593,708
    Estimated Outlays.........................    370,008    131,278     47,924     21,463      9,301   579,974
----------------------------------------------------------------------------------------------------------------
Notes: This table summarizes the authorizations of appropriations explicitly stated in the bill in specified
  amounts. Various provisions of the bill also would authorize activities and provide authorities that would
  result in additional costs in 2016 and in future years. Because the bill would not specifically authorize
  appropriations to cover those costs, they are not reflected in this table. Rather, Table 3 contains the
  estimated costs of some of those provisions.
Numbers may not add up to totals because of rounding.
a. The authorization of appropriations for military personnel in section 421 includes $6,237 million for accrual
  payments to the Medicare-Eligible Retiree Health Care Fund. However, CBO estimates that amount understates--by
  $727 million--the amount required for those payments; thus $727 million has been added to the estimated cost
  of the bill as reflected in Table 1.
b. This authorization is primarily for atomic energy activities of the Department of Energy.
c. This authorization is for the Maritime Administration ($226 million), veterans' benefits and services ($147
  million), the Armed Forces Retirement Home ($63 million), and the Naval Petroleum Reserves ($20 million). The
  authorized amount for the Maritime Administration does not include the $186 million specified in the bill for
  payments to shipping companies under the maritime security program because that program is authorized under
  current law for 2015.
d. This authorization is for the defense health program, drug interdiction and counter-drug activities, and
  equipment for the national guard and reserve.

    Force Structure. The bill would affect the force structure 
of the various military services by setting end strengths for 
2015 and modifying the minimum end strengths authorized in 
permanent law.
    Under title IV, the authorized end strengths in 2015 for 
active-duty personnel and personnel in the selected reserves 
would total 1,308,920 and 827,800 respectively. Of those 
selected reservists, 77,414 would serve on active duty in 
support of the reserves. In total, active-duty end strength 
would decrease by 52,480 and selected-reserve end strength 
(including the Coast Guard Reserve) would decrease by 14,900 
when compared with levels authorized under current law for 
2015. The specified end strengths for the components of the 
armed forces are detailed below.
    Active-Duty End Strengths. Compared with end strengths 
authorized under current law for 2015, section 401 would 
authorize reductions in active-duty personnel for three of the 
four services: 30,000 fewer for the Army; 6,100 fewer for the 
Marine Corps; and 16,380 fewer for the Air Force. The end 
strength authorized for the Navy would remain the same. CBO 
estimates that reducing the number of active-duty personnel by 
52,480 service members would decrease costs to DoD by $32.8 
billion over the 2015-2019 period, assuming appropriations are 
reduced by that amount. That estimate includes reduced costs 
for personnel compensation and benefits, as well as lower costs 
for operation and maintenance.

       TABLE 3--ESTIMATED CHANGES TO AUTHORIZATIONS OF APPROPRIATIONS FOR SELECTED PROVISIONS IN H.R. 4435
----------------------------------------------------------------------------------------------------------------
                                                            By fiscal year, in millions of dollars--
                                               -----------------------------------------------------------------
                                                  2015a       2016       2017       2018       2019    2015-2019
----------------------------------------------------------------------------------------------------------------
                                                 FORCE STRUCTURE

Active-Duty End Strengths.....................     -3,859     -6,381     -7,171     -7,584     -7,789    -32,784
Selected-Reserve End Strengths................       -239       -461       -550       -597       -614     -2,461
Reserve Technicians End Strengths.............        -53       -109       -112       -116       -120       -510
Coast Guard Reserve End Strength..............        -12        -27        -33        -37        -37       -146                                            COMPENSATION AND BENEFITSExpiring Bonuses and Allowances...............        750        469        274        246        123      1,862
Pilot Program to Assist Post-Service                    5         25         35         35          0        100
 Employment...................................
Civilian Benefits in a Combat Zone Department           0         35          0          0          0         35
 of Defenseb..................................                                                OTHER PROVISIONSIncrementally Fund a San Antonio Class Ship...        800      1,178          0          0          0      1,978
Delay Reorganization of Military Treatment             15         25         40         35         20        135
 Facilities...................................
Support of Foreign Military Liaison Officers..          4         10         10         10         10         44
Mental Health Assessments.....................          6          7          7          7          8         35
Integrated Disability Evaluation System Pilot.          5         15          5          1          1        27
----------------------------------------------------------------------------------------------------------------
Notes: Amounts shown in this table for 2016 through 2019 are not included in amounts that would be specifically
  authorized by the bill (and therefore are not reflected in Tables 1 and 2). Rather, those amounts would be
  covered by specific authorizations for defense programs in future years.
Numbers may not add up to totals because of rounding.
aAmounts shown in this table for 2015 are included in amounts specifically authorized to be appropriated by the
  bill (as reflected in Table 2 and summarized in Table 1).
bThis provision also would increase costs in 2016 for departments and agencies other than DoD by an estimated $8
  million. Those costs are included in Table 1 under ``Other Authorizations of Appropriations.''

    Selected-Reserve End Strengths. Sections 411 and 412 would 
set the end strengths for reserve components, including those 
who serve on active duty in support of the reserves. Under this 
bill, all six of the reserve components would experience 
decreases in end strength: 3,000 fewer reservists for the Army 
Reserve, 1,800 fewer for the Navy Reserve, 400 fewer for the 
Marine Corps Reserve, 3,300 fewer for the Air Force Reserve, 
4,000 fewer for the Army Guard, and 400 fewer for the Air 
Guard. The number of full-time reservists who serve on active-
duty in support of the reserves would decline by 972 compared 
with current authorized end strengths for 2015. CBO estimates 
that implementing those provisions would decrease costs for 
salaries and expenses for selected reservists by $2.5 billion 
over the 2015-2019 period, assuming appropriations are reduced 
by the same amount.
    Reserve Technicians End Strengths. Section 413 would set 
the minimum end strengths for dual-status military technicians, 
who are federal civilian personnel required to maintain 
membership in a selected-reserve component as a condition of 
their employment. The bill would lower the minimum number of 
technicians required by 1,223 relative to the number currently 
authorized. CBO estimates that implementing that change would 
decrease costs for civilian salaries and expenses by $510 
million over the 2015-2019 period.
    Coast Guard Reserve End Strength. Section 411 also would 
authorize an end strength in 2015 for the Coast Guard Reserve 
of 7,000 service members, compared with the 9,000 service 
members that are authorized under current law. However, the 
number of reservists in the Coast Guard is well below the 
authorized level--about 7,800 as of March 2014. Therefore, CBO 
estimates that implementing this provision would reduce the 
size of the Coast Guard Reserve by about 1,000 members. CBO 
estimates that reducing end strength by that amount would 
decrease costs by $146 million over the 2015-2019 period, 
assuming appropriations are reduced by the same amount.
    Compensation and Benefits. H.R. 4435 contains several 
provisions that would affect compensation and benefits for 
uniformed personnel and civilian employees of DoD. The bill 
would specifically authorize regular appropriations of $135 
billion for the costs of military pay and allowances in 2015. 
For related costs resulting from overseas contingency 
operations (primarily in Afghanistan), the bill would authorize 
the appropriation of an additional $7 billion for 2015.
    Expiring Bonuses and Allowances. Sections 611 through 615 
would extend for another year DoD's authority to enter into 
agreements to pay certain bonuses and allowances to military 
personnel. The authority to enter into such agreements is 
currently scheduled to expire on December 31, 2014. Some 
bonuses are paid in a lump sum, while others are paid in annual 
or monthly installments over a period of obligated service. 
Based on DoD's budget submission for fiscal year 2015, CBO 
estimates that extending that authority for one year would cost 
$1.9 billion over the 2015-2019 period.
    Pilot Program to Assist Post-Service Employment. Section 
552 would establish a pilot program to help current service 
members find a job following separation from military service 
in the case of active-duty members, or release from active duty 
in the case of part-time reserve members. Under the program, 
DoD would work with civilian employment agencies to place 
service members in post-service jobs. To encourage employers to 
hire members of the military, DoD would pay a portion of the 
employment agency's fee for up to 800 hours of work that an 
employee hired under this program completed.
    The amount of money that the Secretary of Defense could 
obligate under the pilot program would be limited to $35 
million in any fiscal year during the life of the program, 
which would expire on September 30, 2018. CBO estimates that 
implementing this pilot program would increase costs by $100 
million over the 2015-2019 period. The cost of the program 
would be small in the first year, $5 million, because DoD would 
need time to establish the program, including writing 
regulations and negotiating with employment agencies. The 
program would grow in 2016, and CBO expects it would reach full 
capacity in 2017.
    Civilian Benefits in a Combat Zone. Section 1102 would 
extend for one year the authority to grant certain benefits to 
federal civilian employees who perform official duty in a 
combat zone. Those benefits, which expire under current law on 
September 30, 2015, include death gratuities, paid leave and 
travel for one trip home, and up to three leave periods per 
year for rest and recuperation. Based on information from DoD 
and the Office of Personnel Management, CBO estimates that 
about 2,300 civilian employees of DoD and 500 employees of 
other federal agencies will work in a designated combat zone in 
2016 and, under this provision, would receive an average 
benefit that would cost about $15,000 a year. Thus, CBO 
estimates that in 2016, section 1102 would increase the costs 
of civilian employees of DoD by $35 million and of other 
federal employees by $8 million.
    Other Provisions. A number of other provisions in H.R. 4435 
would increase discretionary costs in 2015 and over the 2016-
2019 period.
    Incrementally Fund a San Antonio Class Ship. Section 122 
would allow the Navy to use incremental funding to enter into a 
contract, beginning in fiscal year 2015, for the construction 
of one additional San Antonio class amphibious ship (referred 
to as LPD-17 class ships). The bill also would authorize the 
appropriation of $800 million for 2015 for that purpose. 
Currently, nine of the LPD-17 class warships are in service and 
two more are nearing the end of construction. Based on 
information from the Navy, CBO expects that the Navy would 
build the additional ship and estimates that costs would total 
about $2 billion over the 2015-2016 period.
    Delay Reorganization of Military Treatment Facilities. In 
an effort to produce efficiencies and cost savings, DoD is 
planning to consolidate or eliminate some underutilized 
services offered through certain military treatment facilities. 
Based on information from DoD, CBO estimates those changes will 
result in savings of about $15 million in 2015, increasing to 
about $50 million in annual savings by 2019. Section 714 would 
delay those planned changes until various studies are 
completed, which CBO estimates would delay any savings by about 
three years, increasing costs to DoD by about $135 million over 
the 2015-2019 period.
    Support of Foreign Military Liaison Officers. Section 1203 
would expand DoD's authority to pay for certain expenses of 
military liaison officers from foreign militaries. Currently, 
DoD is allowed to cover travel, subsistence, and medical 
expenses of such officers if they are assigned to U.S. military 
commands in connection with a military operation. This 
provision would broaden that authority by allowing DoD to 
provide such support without the requirement that assignments 
be connected with a military operation. Section 1203 also would 
limit the number of officers who can receive such support to 60 
at any one time, and cap the amount of support per person at 
$200,000 annually, adjusted for inflation.
    CBO anticipates that as operations in Afghanistan are 
curtailed, the number of individuals receiving support pursuant 
to the existing authority--currently about 40--would be greatly 
reduced. Based on information from DoD, CBO expects that agency 
will fully utilize the amended authority, mostly in support of 
U.S. military engagements in areas where DoD has a relatively 
limited presence. On that basis, CBO estimates that DoD would 
provide support to an additional 45 officers a year under this 
authority at a cost of $44 million over the 2015-2019 period.
    Mental Health Assessments. Section 701 would require DoD to 
administer a mental health assessment to deployed personnel 
once every six months. Based on current deployment levels, CBO 
estimates DoD would need to deploy nearly 20 additional mental 
health professionals to conduct those assessments. Based on 
information from DoD, CBO estimates the annual cost to deploy 
each of those additional personnel would be about $130,000 in 
2015 and would increase to about $142,000 in 2019. In addition, 
there would be a cost to DoD to replace those personnel in the 
continental United States, so that current mental health 
caseload demands can be met. CBO estimates DoD would need to 
pay for an additional 35,000 hours per year of mental health 
services in the continental United States, at a hourly cost of 
about $115 in 2015, increasing to about $145 in 2019. In total, 
CBO estimates section 701 would cost $35 million over the 2015-
2019 period.
    Integrated Disability Evaluation System Pilot. Section 592 
would require DoD and the Department of Veterans Affairs (VA) 
to operate a three-year pilot program at the Walter Reed 
National Military Medical Center to improve the Integrated 
Disability Evaluation System (IDES). As part of the pilot, DoD 
and VA would be required to modify their information technology 
systems to create an interface between their data collection 
and tracking systems and also to track the performance of DoD 
and VA personnel. Based on information from DoD, CBO estimates 
that it would take about three years and cost about $25 million 
to make the software modifications required by section 592. 
Once the pilot program is up and running (in 2018), CBO 
estimates the operating costs would be about $1 million per 
year. Based on information from DoD, CBO expects that the 
program could be carried out with existing personnel, though 
there would be some costs for training, support activities, and 
a new working group. In total, CBO estimates that implementing 
section 592 would cost about $27 million over the 2015-2019 
period.

Direct Spending

    Several provisions in H.R. 4435 would affect direct 
spending. CBO estimates that those provisions would increase 
net direct spending by $1 million over the 2015-2024 period 
(see Table 4).
    Special Immigrant Visas (SIVs) for Afghan Allies. Section 
1218 would amend the Afghan Allies Protection Act of 2009 to 
make 1,080 SIVs available in fiscal year 2015 to certain 
Afghans. Those SIVs could be issued through the end of fiscal 
year 2016. Afghans eligible under this provision are those who 
were employed by the U.S. government at some point since 2001 
and are experiencing an ongoing serious threat as a 
consequence. (Additional SIVs, not subject to limitation, would 
be available to certain relatives of those workers.)
    CBO estimates that nearly 2,500 people would receive 
immigrant visas under section 1218. Because special immigrants 
(including their spouses and children) are eligible for public 
benefits to the same extent as refugees, they could receive 
subsidies through health insurance exchanges and benefits from 
Medicaid, nutrition programs, and the Supplemental Security 
Income program, if otherwise eligible, upon arrival in the 
United States. On that basis, CBO estimates that direct 
spending for those benefits would increase by $70 million over 
the 2015-2024 period.
    National Defense Stockpile. Enacting the bill would 
increase receipts from the sale of material in the National 
Defense Stockpile. Section 1411 would increase by $50 million 
the target contained in the National Defense Authorization Act 
for Fiscal Year 1999 (Public Law 105-261, as most recently 
amended by Public Law 110-417) for continued sales of tungsten 
from the stockpile, and extend those sales for an additional 
three years through fiscal year 2019.
    In addition, Section 1411 would increase by $20 million the 
target contained in the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65, as most recently amended 
by Public Law 112-81) for continued sales of chromium 
ferroalloy from the stockpile, and extend those sales for an 
additional three years through fiscal year 2019. CBO estimates 
that there would be sufficient quantities of tungsten and 
chromium in the stockpile so that sales could generate 
additional receipts of $2 million in 2015 and $70 million over 
the 2015-2018 period.

                                               TABLE 4--ESTIMATED EFFECTS OF H.R. 4435 ON DIRECT SPENDING
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2015    2016    2017    2018    2019    2020    2021    2022    2023    2024   2015-2019  2015-2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
Special Immigrant Visas for Afghan Allies:
    Estimated Budget Authority....................       1      10       9       8       7       7       7       7       7       7        35         70
    Estimated Outlays.............................       1      10       9       8       7       7       7       7       7       7        35         70
National Defense Stockpile:
    Estimated Budget Authority....................      -2     -40     -20      -8       0       0       0       0       0       0       -70        -70
    Estimated Outlays.............................      -2     -40     -20      -8       0       0       0       0       0       0       -70        -70
Purple Heart Awards:
    Estimated Budget Authority....................       *       *       *       *       *       *       *       *       *       *         *          1
    Estimated Outlays.............................       *       *       *       *       *       *       *       *       *       *         *          1
    Total Changes in Direct Spending:
        Estimated Budget Authority................      -1     -30     -11       *       7       7       7       7       7       7       -35          1
        Estimated Outlays.........................      -1     -30     -11       *       7       7       7       7       7       7       -35         1
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.

    Purple Heart Awards. Section 571 would require the 
Secretary of Defense to award the Purple Heart to members 
killed or wounded in attacks motivated or inspired by foreign 
terrorist organizations. This policy would be retroactive to 
September 11, 2001. In instances when a wounded member retires 
for medical reasons, the Purple Heart entitles that member to 
Combat-Related Special Compensation (CRSC), which is paid from 
the Military Retirement Trust Fund. Based on a review of the 
number of military personnel wounded during the November 2009 
shooting at Ft. Hood and other incidents, CBO estimates that 
about 10 former military members would receive CRSC because of 
this provision, and that the average monthly payment would be 
about $400 per person. After factoring in retroactive payments 
and cost-of-living adjustments, CBO estimates that section 571 
would increase direct spending by about $1 million over the 
2015-2024 period.
    Other Provisions. Other provisions in the bill would have 
insignificant effects on direct spending or revenues, generally 
because very few people would be affected.
    
 Sections 501 and 502 would modify rules related to 
the selective early retirement of military personnel. In 
certain circumstances, those changes might affect the number of 
former members drawing retired pay in a given year.
    
 Section 521 would establish certain rules for 
judicial review of military personnel decisions relating to the 
correction of military records. CBO expects that enactment of 
this section would have a small effect on the payment of 
mandatory benefits in the event of corrections, but it is 
unclear whether the net effect would be to increase or decrease 
those payments.
    
 Section 702 would, in certain circumstances, allow 
former service members and their dependents to receive free 
food and beverages at military treatment facilities. Spending 
at such facilities for some of those former members is 
classified in the budget as mandatory.
    
 Section 725 would require DoD to establish a pilot 
program to examine medication therapy management. 
Pharmaceutical spending for some of the beneficiaries covered 
by the pilot program is classified in the budget as mandatory.
    
 Section 815 would prohibit the use of reverse 
auctions for certain contracts. That prohibition would increase 
by an insignificant amount the administrative costs for certain 
agencies, some of which are funded from mandatory accounts.
    
 Section 1042 would allow DoD to accept the 
voluntary services of law students and those training to be 
paralegals. Because those volunteers would be eligible for 
mandatory compensation if they are injured while volunteering, 
CBO estimates that section 1042 would have an insignificant 
effect on direct spending.
    
 Section 2861 would authorize the Secretary of the 
Navy to establish a memorial to the victims of the shootings 
that occurred on September 16, 2013, at the Washington Navy 
Yard. The Secretary could accept and spend donations to 
establish and maintain the memorial. Such contributions are 
classified as offsetting receipts.
    Pay-as-you-go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table. 
Enacting H.R. 4435 would not affect revenues.

                CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4435 AS REPORTED BY THE HOUSE COMMITTEE ON ARMED SERVICES ON MAY 13, 2014
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              By fiscal year, in millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2014    2015    2016    2017    2018    2019    2020    2021    2022    2023    2024   2014-2019  2014-2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICITStatutory Pay-As-You-Go Effects...........       0      -1     -30     -11       0       7       7       7       7       7       7       -35          1
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Estimated impact on state, local, and tribal governments: 
Section 547 would preempt state laws governing child custody if 
those laws provide less protection to the rights of a parent 
who is a service member than those provided under the bill. 
That preemption would be an intergovernmental mandate as 
defined in UMRA. Although the mandate would limit the 
application of state laws, it would impose no duty on states 
that would result in additional spending. Therefore, CBO 
estimates that the cost of the mandate would fall well below 
the threshold established in UMRA for intergovernmental 
mandates ($76 million in 2014, adjusted annually for 
inflation).
    Estimated impact on the private sector: Section 1073 of the 
bill contains a private-sector mandate because it would impose 
a time limit on filing claims for losses covered by the Federal 
Aviation Administration's (FAA's) War Risk Insurance Program. 
Currently there is no statutorily required time frame. The bill 
would require most claims against the United States to be filed 
within two years of the loss. However, claimants who do not 
have a contractual relationship with the insured party would be 
allowed six years to file a claim. Information from the FAA 
indicates that in the past almost all cases have been filed 
soon after the loss occurred, in accordance with FAA 
requirements for insurance policies. Therefore, CBO estimates 
that the costs of this mandate would be small and would fall 
below the private-sector threshold established in UMRA ($152 
million in 2014, adjusted annually for inflation).
    Estimate prepared by: Federal Costs: Defense 
Authorizations--Kent Christensen, Immigrant Visas--David 
Rafferty, Military and Civilian Personnel--Dawn Regan, Military 
Construction--David Newman, Military Retirement and Health 
Care--Matthew Schmit, Naval Vessels and National Defense 
Stockpile--Raymond J. Hall, Operation and Maintenance--Jason 
Wheelock, Impact on State, Local, and Tribal Governments: 
J'nell L. Blanco, Impact on the Private Sector: Elizabeth Bass.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.