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116th Congress    }                                  {   Rept. 116-120
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                  {          Part 2

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



 
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2020

                                _______
                                

 June 27, 2019.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Smith of Washington, from the Committee on Armed Services, 
                        submitted the following

                          SUPPLEMENTAL REPORT

                        [To accompany H.R. 2500]

      [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. 
2500), as reported, which was not included in part 1 of the 
report submitted by the Committee on Armed Services on June 19, 
2019 (H. Rept. 116-120, 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, June 26, 2019.
Hon. Adam Smith,
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. 2500, the National 
Defense Authorization Act for Fiscal Year 2020.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Kent 
Christensen.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    The bill would
           Authorize appropriations totaling an 
        estimated $727,569 million for 2020, mainly for the 
        military functions of the Department of Defense (DoD), 
        the atomic energy defense activities of the Department 
        of Energy, and the Maritime Administration
           Authorize an additional $538 million for the 
        Maritime Administration and other nondefense activities 
        and $24 million for DoD over the 2021-2024 period
           Prescribe personnel strengths for active-
        duty and selected-reserve components of the U.S. Armed 
        Forces
           Extend DoD's authority to pay various 
        bonuses and allowances to military personnel
           Make several changes to health benefits for 
        both active and retired military personnel and their 
        families
           Create a new military service to organize, 
        train, equip, and operate space forces
           Require DoD to sell Internet Protocol 
        version 4 (IPv4) addresses over the next 10 years
           Impose intergovernmental and private-sector 
        mandates by increasing the authorized end strength for 
        active-duty personnel, preempting state and local 
        authorities, and amending certain contracts for 
        military housing
    Estimated budgetary effects would primarily stem from
           New authorizations of appropriations for 
        defense programs
           Receipts from the sale of Internet Protocol 
        addresses
    Areas of significant uncertainty include
           Anticipating the timing and manner of the 
        establishment of the Space Corps
           Predicting the future market demand for and 
        global supply of IPv4 addresses

Bill summary

    H.R. 2500 would authorize appropriations totaling an 
estimated $728.1 billion over the 2020-2024 period. Of that 
amount, $726.9 billion would be specifically authorized for 
2020 for the military functions of the Department of Defense 
(DoD) and the atomic energy defense activities of the 
Department of Energy. An additional $0.7 billion for 2020 and 
$0.5 billion for the following four years would be specifically 
authorized for the Maritime Administration and various other 
nondefense programs. CBO estimates that appropriation of the 
authorized amounts would result in outlays of $704.4 billion 
over the 2020-2024 period.
    The bill also contains provisions that would affect the 
costs of defense programs funded through discretionary 
appropriations in 2021 and future years. Those provisions would 
affect force structure, compensation and benefits, the military 
health system, and various other programs. CBO has analyzed the 
costs of a select number of those provisions and estimates that 
they would, on a net basis, increase the cost of defense 
programs compared to current law by about $10.0 billion over 
the 2021-2024 period. The net costs of those provisions in 2021 
and beyond are not included in the total amount of outlays 
mentioned above because funding for those activities would be 
covered by specific authorizations in future years.
    In addition, enacting H.R. 2500 would reduce direct 
spending by $41 million over the 2020-2024 period and $9 
million over the 2020-2029 period. Enacting the bill would have 
an insignificant effect on revenues.

Estimated Federal cost

    The estimated budgetary effects of H.R. 2500 are shown in 
Table 1. Of the $727.6 billion that would be authorized for 
2020, nearly all--$726.9 billion--would be for activities 
within budget function 050 (national defense).
    Some authorizations, however, fall within other budget 
functions, including $512 million for the Maritime 
Administration in function 400 (transportation), $127 million 
for a medical facility demonstration fund in function 700 
(veterans benefits and services); $64 million for the Armed 
Forces Retirement Home in function 600 (income security); and 
$14 million for the Naval Petroleum Reserves in function 270 
(energy).

Basis of estimate

    For this estimate, CBO assumes that H.R. 2500 will be 
enacted near the start of fiscal year 2020 and that the 
authorized amounts will be appropriated each fiscal year.

Spending subject to appropriation

    H.R. 2500 would specifically authorize $727.6 billion for 
2020 (see Table 2). Of that amount, $726.9 billion would be for 
defense programs, and $0.7 billion would be for nondefense 
programs.
    For defense programs, $655.6 billion of the authorization 
for 2020 would, if appropriated, be counted against that year's 
defense cap set in the Budget Control Act (BCA), as amended. 
Another $71.3 billion would not be subject to that cap. Of 
amounts not subject to the BCA caps, $69.0 billion would be for 
DoD's costs related to overseas contingency operations 
(primarily in and around Afghanistan, Iraq, and Syria), and 
$2.3 billion in emergency authorizations would be for military 
construction projects related to damage caused by Hurricanes 
Florence and Michael.
    The $726.9 billion that would be specifically authorized 
for defense programs for 2020 is an increase of $17.0 billion 
(or 2 percent) compared to amounts appropriated for 2019. 
Authorizations for three of the four major categories of DoD 
spending would increase: operation and maintenance by $10.7 
billion (or 4 percent), research and development by $6.5 
billion (7 percent), and military personnel by $3.8 billion (3 
percent). Authorized funding for procurement would fall by $5.8 
billion (4 percent) compared to the current level of funding. 
Authorizations for all other categories combined would increase 
by $1.8 billion (5 percent).
    For nondefense programs, the bill would authorize $0.7 
billion for 2020 and $0.5 billion for the 2021-2024 period, 
primarily for programs of the Maritime Administration.
    H.R. 2500 also contains provisions that would affect the 
cost of various discretionary programs in future years. Most of 
those provisions would affect end strength (the number of 
military personnel at the end of a fiscal year), military 
compensation and benefits, and the military health system. The 
estimated effects of some of those provisions are shown in 
Table 3 and described below. The following sections discuss how 
those provisions would affect the need for discretionary 
appropriations in future years.
    Force Structure. The bill would affect the force structure 
of the military services by setting end-strength levels for 
2020 and modifying the minimum end-strength levels authorized 
in permanent law.
    Under title IV, the authorized end strength in 2020 for 
active-duty personnel and personnel in the Selected Reserves 
would total 1,339,500 and 800,800 respectively. Of those 
selected reservists, 86,715 would serve full time on active 
duty in support of the reserves. In total, selected-reserve end 
strength would decline by 16,900, although the number of 
selected reservists who would serve in full-time support 
positions would increase by 3,653, when compared with levels 
authorized under current law for 2020. Active-duty end strength 
would increase by 1,400. The specified end-strength levels for 
each component of the armed forces are detailed below with 
CBO's estimate of the effects of those changes on DoD's 
personnel and operation and maintenance costs. Those costs for 
additional personnel include components of military 
compensation such as basic pay, allowances, bonuses, and health 
care, as well as operating costs for training and maintenance.
    Active-Duty End Strengths. Section 401 would authorize the 
following increases in active-duty personnel for three of the 
four services: 5,100 more for the Navy, 3,700 more for the Air 
Force, and 100 more for the Marine Corps. The end strength 
authorized for the Army would decrease by 7,500. CBO estimates 
that the net growth in active-duty personnel of 1,400 service 
members would cost $0.8 billion over the 2020-2024 period.
    Selected Reserve End Strengths. Under section 411, the end 
strengths for three of the six reserve components would 
decrease: 10,000 fewer for Army Reserve, 7,500 fewer for Army 
National Guard, and 100 fewer for Navy Reserve. End strengths 
for the Air National Guard and Air Force Reserve would increase 
by 600 and 100, respectively, while the authorized level for 
the Marine Corps Reserve would not change. CBO estimates that 
the decrease of 16,900 reservists would reduce costs by $3.0 
billion over the 2020-2024 period.
    Full-Time Selected Reserve End Strengths. Section 412 would 
increase the number of full-time reservists who serve on active 
duty in support of the reserves by 3,653 compared with 
currently authorized end-strength levels for 2020. Those 
additional full-time reservists would increase costs by $2.4 
billion over that same period.
    Reserve Technician End Strengths. Section 413 would reduce 
the end strength for dual-status military technicians by 2,320. 
Those personnel are federal civilian employees who are required 
to maintain membership in a Selected Reserve component as a 
condition of their employment. CBO estimates that spending on 
salaries for dual status positions would decrease by $1.2 
billion over the 2020-2024 period. (Changing the number of 
dual-status technicians would not change the number of part-
time reservists set by section 411, discussed above. Thus, the 
only budget effects would be the reduction in civilian 
compensation.)
    Compensation and Benefits. H.R. 2500 includes several 
provisions that would affect compensation and benefits for 
uniformed personnel and civilian employees of DoD. The bill 
would specifically authorize regular appropriations of $150.1 
billion for the costs of military pay and allowances in 2020. 
For military personnel costs resulting from overseas 
contingency operations (primarily in and around Afghanistan, 
Iraq, and Syria), the bill would authorize the appropriation of 
an additional $4.5 billion for 2020.
    Expiring Bonuses and Allowance. Section 611 would extend 
for one year DoD's authority to enter agreements to pay certain 
bonuses and allowances to military personnel. The authority to 
enter into such agreements expires on December 31, 2019. Some 
bonuses are paid in lump sums, while others are paid in annual 
or monthly installments over several years of military service. 
On the basis of DoD's budget request for fiscal year 2020, CBO 
estimates that extending that authority for one year would cost 
$8.6 billion over the 2020-2024 period.
    Basic Needs Allowance. Section 602 would authorize DoD to 
pay a monthly allowance to service members whose gross incomes 
are less than 130 percent of the federal poverty guidelines 
established by the Department of Health and Human Services. The 
amount of the allowance would be the difference between a 
service member's monthly gross income and the monthly income 
level at 130 percent of poverty guidelines for the location in 
the United States where the member lives and the size of the 
member's household. The basic allowance for housing would be 
excluded from the calculation of gross income; DoD would 
determine what other compensation, such as the basic allowance 
for subsistence, hostile fire pay, or reenlistment bonuses, 
would be included in gross income to determine eligibility for 
the new allowance. CBO expects that, given the clear 
instruction to exclude the basic allowance for housing from 
gross income and the lack of guidance on what other 
compensation to exclude, DoD would choose a narrow definition 
of gross pay and only include basic pay.
    DoD would evaluate service members' income annually and 
notify candidates of their potential eligibility for the 
allowance by December 31 of each year. Candidates (those who 
received notification of potential eligibility and any other 
service members who want to apply) would have until January 31 
to submit applications with any required documentation to 
demonstrate eligibility. DoD would review those applications 
and notify the applicants of DoD's final eligibility 
determination by February 28. CBO expects that some service 
members who would meet eligibility requirements would not 
receive the allowance because they would decline to receive the 
allowance or they would not submit the required information by 
the application deadline. Recipients of the basic needs 
allowance would be awarded the benefit for a full year; monthly 
payments would start in April and end in March of the following 
year.
    CBO estimates that payments would begin in April of 2021 to 
allow time for DoD to develop regulations and procedures and to 
implement the new policy. On the basis of data about service 
members' pay and family sizes, CBO estimates that roughly 
10,200 service members would receive an average allowance of 
$400 each month. Those allowances would cost $175 million over 
the 2021-2024 period.
    If DoD used a broader definition of gross income, then the 
cost of the allowance would be lower because fewer service 
members would qualify. For example, if DoD included the basic 
allowance for subsistence in the gross income calculation, then 
CBO estimates the benefit would cost about $50 million over 
that same period.
    Benefits for Civilians in Combat Zones. Section 1104 would 
extend for one year the authority to grant benefits such as 
paid leave and travel for one trip home, and up to three leave 
periods each year for rest and recuperation to federal civilian 
employees who perform official duty in a combat zone. The 
authority to provide those benefits expires on September 30, 
2020. On the basis of information from DoD and the Office of 
Personnel Management, CBO estimates that about 1,000 civilian 
employees of DoD and 500 employees of other federal agencies 
will work in a designated combat zone in 2021 and, under this 
provision, would receive an average benefit that would cost 
about $20,000 a year.
    Thus, CBO estimates that section 1104 would increase the 
costs of civilian employees of DoD by $20 million and of other 
federal agencies by $10 million.
    Military Health System. Title VII of H.R. 2500 would make 
several changes to health benefits for both active and retired 
military personnel and their families. CBO estimates that if 
enacted, those provisions would increase DoD's health care 
costs by a total of about $160 million over the 2020-2024 
period.
    Contraception Cost Sharing. Section 701 would eliminate all 
cost sharing for contraceptive pharmaceuticals and devices for 
those who use TRICARE, beginning in 2020. On the basis of 
information from DoD, CBO estimates that beneficiaries 
currently pay about $13 million each year for their share of 
various contraceptive drugs and devices. Under the proposal, 
those costs would be borne by DoD.
    In addition, eliminating out-of-pocket costs would increase 
beneficiaries' use of brand-name drugs and decrease the use of 
generic drugs because beneficiaries would no longer face higher 
copayments for brand-name drugs. Currently, TRICARE 
beneficiaries receive about 850,000 generic contraception 
prescriptions each year (in 30-day equivalents). On the basis 
of an examination of various studies, CBO estimates that 
beneficiaries would change about 5 percent of those 
prescriptions to brand-name drugs under section 701. CBO 
estimates that the average cost to DoD for a 30-day 
prescription of a brand-name contraceptive is about $55 more 
than the average generic prescription. Therefore, this 
substitution towards brand-name drugs would initially increase 
annual costs by about $3 million. After adjusting for inflation 
and accounting for the time needed to implement the policy, CBO 
estimates that eliminating cost sharing for contraception would 
increase costs to DoD by $92 million over the 2020-2024 period.
    Section 701 also would affect direct spending for health 
care. Those effects are described below under the heading 
``Direct Spending and Revenues.''
    Lead Screening. Section 704 would set guidelines for 
screening and testing for lead among children covered by 
TRICARE. It also would require DoD to maintain records on the 
date of construction of all housing occupied by military 
personnel. On the basis of the costs of other government 
programs such as the Centers for Disease Control Lead Poisoning 
Prevention Program, CBO estimates complying with this section 
would cost about $10 million per year and by $45 million over 
the 2020-2024 period.
    PFAS Blood Test. Section 708 would require DoD to perform 
annual blood tests on military and DoD civilian firefighters to 
determine and document potential exposure to perfluoroalkyl and 
polyfluoroalkyl substances (PFAS). PFAS are chemical components 
of agents DoD uses to fight fuel fires. Recent studies suggest 
that PFAS are responsible for a number of adverse health 
effects. Using data from DoD, the Office of Personnel 
Management, and public sources, CBO estimates about 20,000 
personnel would require such testing each year and that each 
test would cost about $200. Thus, satisfying the requirement of 
section 708 would cost about $4 million each year and $20 
million over the 2020-2024 period.
    TRICARE Reserve Select. Section 703 would allow members of 
the Selected Reserve who are eligible for the Federal Employee 
Health Benefits Program (FEHB) to enroll in the TRICARE Reserve 
Select health benefit (TRS) beginning in 2030. Beneficiaries 
pay less for TRS plans than for FEHB. Using data from DoD, CBO 
estimates that about 110,000 members of the Selected Reserve 
are eligible for FEHB and that about one third would enroll in 
TRS if given the opportunity. On net, CBO estimates section 703 
would eventually reduce discretionary costs to the government 
by about $250 million per year beginning in 2030 because the 
cost of TRS is less than the government's share of the premiums 
for FEHB. Section 703 also would affect spending for other FEHB 
beneficiaries. Those effects are described in the ``Direct 
Spending and Revenues'' section of the estimate.
    Other Provisions. Several other provisions would affect 
spending subject to appropriation by establishing a Space Corps 
in the Department of the Air Force and by authorizing the Navy 
to acquire an amphibious ship.
    Space Corps. Sections 921 through 925 would create a new 
military service to organize, train, equip, and operate space 
forces. The new service would be established in the Department 
of the Air Force, similar to how the Marine Corps is a 
component of the Department of the Navy.
    Most of the personnel and assets for the Space Corps would 
be transferred to the new service from existing forces. CBO 
estimates that DoD has 22,900 military and civilian personnel 
who perform space-related activities. Many of those could be 
transferred to the new service and thus would not affect net 
costs. In addition, CBO estimates that the Space Corps would 
require between 4,100 and 6,800 additional personnel for new 
management and support positions. Those additional positions 
would increase costs. In total, CBO estimates the annual 
recurring costs and onetime costs of the new Space Corps would 
increase by about $3.6 billion over the 2020-2024 period.
    Annual Costs. In a previous study, CBO estimated that the 
additional management and overhead positions required for this 
new military service would increase annual costs by between 
$0.8 billion and $1.3 billion (in 2020 dollars).\1\ Those new 
positions would include new personnel to staff various 
headquarters and combatant commands, and personnel for 
recruiting, training, management, and other support functions. 
Those costs would increase over several years as additional 
positions are filled in phases. Based on information from DoD, 
CBO estimates that it would take about five years to fully 
staff the new service.\2\ By taking the midpoint of the range 
from CBO's prior estimate, and adjusting for inflation, CBO 
estimates that salaries and expenses for those additional 
personnel would cost $1.0 billion by 2024 and total about $2.3 
billion over the 2020-2024 period.
---------------------------------------------------------------------------
    \1\See Congressional Budget Office, The Personnel Requirements and 
Costs of New Military Space Organizations (May 2019), www.cbo.gov/
publication/55178. This report provides additional details on the 
methodology behind the estimates. In addition to the cost of standing 
up a new military service, the report also includes estimates of the 
cost of standing up a new combatant command and a new development 
agency for space assets.
    \2\See Department of Defense, United States Space Force (February 
2019), p. 9, https://media.defense.gov/2019/Mar/01/2002095012/-1/-1/1/
United-States-Space-Force-Strategic-Overview.pdf.
---------------------------------------------------------------------------
    Onetime Costs. In addition to those annual costs, there 
would be onetime costs for new construction and renovation of 
facilities to house the added personnel and any existing 
personnel that would be relocated. There also would be onetime 
costs for such items as uniforms, signs, and stationary. In its 
earlier study, CBO estimated the onetime costs of standing up 
the new service would be between $1.1 billion and $3.0 billion 
(in 2020 dollars). On the basis of information on the timelines 
for previous construction and relocation projects, CBO 
estimates those onetime costs would arise over a period of 
eight years. Using the midpoint of the range from CBO's prior 
estimate and accounting for inflation, CBO estimates that the 
onetime costs for the new Space Corps would total $1.4 billion 
over the 2020-2024 period; some onetime costs would occur after 
2024.\3\
---------------------------------------------------------------------------
    \3\The estimate of onetime costs in CBO's May 2019 study included 
the cost of transfer bonuses for those military personnel who join the 
new Space Corps from other services. While those costs may eventually 
be realized, those transfer bonuses cannot occur without further 
Congressional authorization. Therefore, they are not included in this 
estimate.
---------------------------------------------------------------------------
    The creation of the new military service is part of a 
proposal to improve the organization of DoD's space forces and 
assets. The Administration also has proposed two more space 
organizations in its budget for fiscal year 2020: a new 
combatant command and a new agency that would develop and 
acquire space systems. CBO recently estimated that adding those 
two organizations would increase annual costs by between $320 
million and $580 million (in 2020 dollars). Establishing those 
organizations also would incur onetime costs of between $740 
million and $1,620 million.\4\ However, CBO expects that the 
Administration can establish those organizations using 
authorities in current law; thus, CBO's estimate of enacting 
H.R. 2500 does not include costs for those organizations.
---------------------------------------------------------------------------
    \4\Ibid, 1.
---------------------------------------------------------------------------
    There is significant uncertainty associated with CBO's cost 
estimates for creating a new Space Corps. Many decisions about 
the new service would have to be made in the coming years. 
Decisions about which military units and agencies would be 
transferred to the new service and whether to repurpose 
existing infrastructure or construct new facilities would 
significantly affect costs. Also, CBO's estimates of the 
additional costs of establishing a new Space Corps focus on 
overhead and management costs, and do not include the cost of 
adding new capabilities. The results of future decisions could 
make the costs of the new Space Corps significantly higher or 
lower than the amounts shown here.
    Incrementally Fund the LPD-31 Amphibious Ship. Section 115 
would allow the Navy to enter into a contract to build an LPD-
17 amphibious ship (designated LPD-31) and to incrementally 
fund that contract over several years. CBO estimates that the 
LPD-31 will cost about $2 billion; in 2019, the Congress 
appropriated $350 million for its construction. The bill would 
authorize the appropriation of $247 million in 2020 for that 
purpose. CBO estimates that completing the ship would require 
appropriations of about $1.4 billion in 2021.

Direct spending and revenues

    Several provisions in H.R. 2500 would affect direct 
spending, and CBO estimates their enactment would decrease 
outlays by $9 million over the 2019-2029 period (see Table 4). 
In addition, enacting the bill would have an insignificant 
effect on revenues.
    Sale of Internet Protocol Addresses. Section 1088 would 
require the Secretary of Defense to sell at fair market value 
all of the department's Internet Protocol version 4 (IPv4) 
addresses over the next 10 years. The proceeds from those 
sales, after paying for sales transaction costs, would be 
deposited in the General Fund of the Treasury.
    IP addresses allow networked devices (such as computers and 
mobile phones) to communicate with each other. The original 
IPv4 address system was limited to only 4.3 billion potential 
addresses and the current supply is severely limited. DoD 
controls 13 blocks, each composed of approximately 17 million 
individual addresses.
    Several factors will determine the total value of IP 
address sales by DoD. There is currently a global market for 
IPv4 addresses; however, demand is expected to decline 
significantly over the next several years as more organizations 
adopt the new IPv6 configuration.
    To estimate the potential receipts from the sale of IP 
addresses, CBO examined the security risks and market factors 
that would affect the number of addresses and the price for 
those addresses that could be sold within the ten-year budget 
window. CBO expects that DoD would not be prepared to sell any 
addresses before 2022 for several reasons. First, over the next 
two years DoD plans to study the cybersecurity requirements and 
procedures that will support the department's transition of 
IPv4 addresses to the next generation of IPv6 addresses. 
Second, the agency would then have to update its internal 
network operations in order to mitigate the security risks of 
transferring DoD IP addresses to nonfederal entities.\5\ Third, 
DoD would have to amend its existing agreement with the 
American Registry for Internet Numbers (ARIN), which requires 
DoD to release unneeded IP addresses to ARIN for 
redistribution.
---------------------------------------------------------------------------
    \5\Specifically, many DoD cybersecurity practices limit trusted 
communication to IP addresses that are known to be within the DoD IP 
address ranges (also known as whitelisting).
---------------------------------------------------------------------------
    Section 1088 would require DoD to sell one block, or an 
equivalent number of addresses, within two years of enactment 
of the bill, a second block within three years of enactment, 
and all remaining addresses by 2029. On the basis of 
information from industry reports, market demand for IPv4 
addresses is expected to decline within several years. 
Therefore, CBO estimates that DoD could sell no more than the 
equivalent of one block of approximately 17 million addresses 
before their market value significantly decreases. The 
government also may impose conditions on the sales because of 
national security concerns related to future uses of addresses 
previously held by DoD, which could dampen demand or prices for 
DoD's IPv4 addresses.
    Potential proceeds from the sale of those IPv4 addresses 
are difficult to estimate for several reasons. First, the size 
and value of the secondary market after 2022 is uncertain. Some 
experts predict that prices will decline sharply in the next 
few years as a result of more users adopting IPv6, while others 
suggest that the market will change more slowly.\6\ Second, the 
total supply of addresses may increase and prices may drop if 
several large corporations, including pharmaceutical, 
automotive, and telecommunications firms, begin selling 
addresses that they no longer need.
---------------------------------------------------------------------------
    \6\Brendan Kuerbis and Milton Mueller, The Hidden Standards War: 
Economic Factors Affecting IPv6 Deployment (Georgia Institute of 
Technology, February 2019) pp. 37-38, https://
www.internetgovernance.org/wp-content/uploads/IPv6-Migration-Study-
final-report.pdf.
---------------------------------------------------------------------------
    To account for such uncertainties, CBO estimates that there 
is a 50 percent chance that demand will be sufficient after 
2022 for DoD to sell the equivalent of one block of 17 million 
IPv4 addresses, and that there is a 50 percent chance that 
those addresses would be sold without any restrictions on their 
subsequent use that would reduce or eliminate their value. In 
developing this estimate CBO considered a range of outcomes, 
from zero addresses selling for cash to one full block selling 
at the average price in the current market, and used the 
midpoint of that range. On balance, CBO estimates that such 
sales would generate net proceeds of about $100 million, after 
accounting for an estimated 10 percent fee paid to the private 
firms that would handle the transaction. That estimate would be 
equivalent to selling 8 million addresses at an average price 
of about $14.\7\ CBO expects that the proceeds from such sales 
would be collected over the 2022-2029 period.
---------------------------------------------------------------------------
    \7\Some industry experts estimate that the market price for 
addresses like those held by DoD will average $22 to $30 each in 2019. 
The median price over the 2015-2018 period was $17, up from $14 in 
2014.
---------------------------------------------------------------------------
    Reduced Age for Reserve Retirement. Members of the reserve 
components who qualify for retirement generally become eligible 
to receive retired pay at age 60. If members perform certain 
types of active duty or active service, the age at which they 
can begin to collect retired pay drops by three months for 
every 90 days of such service that is performed within two 
consecutive fiscal years. Section 627 would add active duty for 
preplanned missions in support of the combatant commands to the 
types of duty that reduce the eligibility age for reserve 
retirement.
    On the basis of information from DoD about the number of 
reservists expected to serve on those missions and the age of 
activated reservists, CBO expects that about 30 additional 
reservists would receive retired pay in fiscal year 2020 under 
section 627, increasing to about 180 additional recipients by 
2029. On the basis of information from the DoD Office of the 
Actuary, CBO expects that reserve retirees who become eligible 
for retired pay before age 60 would collect about $35,000 in 
retired pay in 2020, increasing to about $47,000 in 2029. In 
total, CBO estimates that section 627 would increase direct 
spending for reserve retired pay by $41 million over the 2020-
2029 period.
    Afghan Special Immigrant Visas. Section 1212 would amend 
the Afghan Allies Protection Act of 2009 to increase by 300 the 
total number of Special Immigrant Visas (SIVs) that could be 
issued to qualified applicants who applied before the end of 
calendar year 2021. Afghans who would be eligible under this 
provision are those who were employed by or on behalf of the 
U.S. government or the International Security Assistance Force 
at some point since 2001 and are experiencing an ongoing 
serious threat as a consequence of that employment. (Additional 
SIVs, not subject to limitation, are available to certain 
relatives of those employees who receive SIVs.)
    CBO estimates that approximately 1,300 people would receive 
SIVs under section 1212. On the basis of information from the 
State Department, CBO anticipates that aliens granted SIVs 
under section 1212 would arrive in the United States in fiscal 
year 2022, after the supply of SIVs that are available under 
current law is exhausted. Like refugees (but unlike most other 
categories of aliens), Afghan special immigrants are eligible 
for all federal benefits if they meet the other eligibility 
standards for those programs. Thus, upon arrival in the United 
States, they could apply for and begin to receive subsidies for 
health insurance purchased through the marketplaces established 
under the Affordable Care Act, and benefits from Medicaid, 
nutrition programs, and the Supplemental Security Income 
program. CBO uses a variety of administrative and survey data 
to estimate Afghan special immigrants' use rates and per-capita 
costs for those benefit programs. On that basis, CBO estimates 
that direct spending for those benefits would increase by $38 
million over the 2022-2029 period.
    Aviation Insurance. The Federal Aviation Administration's 
authority to insure carriers that participate in the Civil 
Reserve Air Fleet (CRAF) expires on December 31, 2019. The 
federal government bears the full cost of that insurance 
because carriers do not pay premiums for that coverage. Section 
354 would extend that authority through the end of fiscal year 
2023. Providing that insurance would result in mandatory 
obligations for the cost of losses because the Administration 
does not know the amount of the liability and thus cannot 
record an obligation against discretionary budget authority at 
the time it offers the insurance. Based on historical data on 
the cost of covered losses that have occurred, CBO estimates 
that the extension would increase direct spending by $2 million 
each year and by a total of $8 million over the 2020-2023 
period.
    Contraception Cost Sharing. Section 701 would eliminate all 
cost sharing for contraceptive pharmaceuticals and devices for 
TRICARE beneficiaries. Implementing this section would increase 
direct spending because it would lower the out-of-pocket cost 
for retirees of the other uniformed services (U.S. Coast Guard, 
National Oceanic and Atmospheric Administration, and Public 
Health Service) and their dependents. Health benefits for that 
population are paid from mandatory appropriations. The portion 
of costs that are covered by copayments from beneficiaries 
would instead be paid by the government. In total, CBO 
estimates that section 701 would increase direct spending by $3 
million over the 2020-2029 period.
    Implementing section 701 also would increase discretionary 
spending. Details of those effects, as well as additional 
details about the estimate in general, are described under the 
heading ``Spending Subject to Appropriation.''
    Board of Discharge Appeals. Veterans or their next of kin 
may request that a military service upgrade the 
characterizations of their discharge from the armed forces 
through each service's Discharge Review Board (DRB) and Board 
for Correction of Military (or Naval) Records (BCMR). Section 
521 would require the Secretary of Defense to establish a Board 
of Discharge Appeals to hear appeals from veterans whose 
requests for upgrades are denied by a DRB or BCMR. By creating 
a new body with different adjudicators from which veterans can 
seek discharge upgrades, section 521 would result in a small 
number of additional upgrades each year, CBO expects.
    Some of the veterans whose discharges would be upgraded 
would become eligible for additional benefits. On the basis of 
information from DoD, CBO expects that most of those veterans 
with upgraded discharges would become eligible for separation 
pay that they were denied when they left the service because of 
the original characterization of their discharge. Retroactive 
separation pay currently averages about $21,000. On that basis, 
and the expectation that a small number of veterans would be 
newly eligible, CBO estimates that section 521 would increase 
direct spending for retroactive separation pay by an 
insignificant amount each year and by $1 million over the 2020-
2029 period.
    National Defense Stockpile. Section 807 would authorize the 
manager of the National Defense Stockpile to sell 3 million 
pounds of tungsten from the stockpile. On the basis of 
information about prices and market demand, CBO estimates that 
the tungsten would sell for $37 million, which would be 
recorded as receipts in the National Defense Stockpile Fund. 
CBO expects that the stockpile manager would sell that tungsten 
in 2022 after it completes the sale of other tungsten required 
under current law. Section 807 also would allow the stockpile 
manager to spend up to $37 million from the Fund to purchase 
materials critical to defense and civilian industrial needs, 
including rare earth materials. That authority would expire in 
2024. On the basis of information from DoD, CBO estimates that 
DoD would spend $37 million to purchase those critical 
materials over the 2020-2024 period. CBO estimates that net 
effect of those transactions would almost completely offset 
over the 2020-2029 period. Section 807 would affect outlays but 
would not affect net budget authority.
    Amounts deposited in the Stockpile Fund are permanently 
appropriated under current law. Thus, authorization to purchase 
new materials from fund balances does not create new budget 
authority. In addition, budget authority from the receipts from 
newly authorized sales of materials would be fully offset by 
the permanent authority to spend those amounts once they are 
deposited in the fund.
    TRICARE Reserve Select. Section 703 would allow members of 
the Selected Reserve who are eligible for the Federal Employee 
Health Benefits Program to enroll in the TRICARE Reserve Select 
benefit beginning in 2030. Because members of the Selected 
Reserve are younger and healthier that the average federal 
employee, reservists and their family members who discontinue 
FEHB coverage would cause an increase in premiums for all 
remaining FEHB beneficiaries, including federal retirees and 
active postal employees, whose premiums are paid from mandatory 
accounts. When implemented, CBO estimates this section would 
increase direct spending by about $40 million each year 
beginning in 2030.
    Implementing section 703 also would affect discretionary 
spending. Those effects are described above, under the heading 
``Spending Subject to Appropriation.''
    Other Direct Spending Provisions. Several provisions in 
H.R. 2500 would have insignificant effects on direct spending 
or revenues, generally because very few people would be 
affected, or because the proposal would allow the spending of 
new receipts so that the net effect would be small.
     Section 313, 516 and 1222 would extend or add to 
DoD's authority to accept and spend contributions from 
nonfederal entities for various purposes. Because the 
department might not spend all the contributions it receives, 
those sections could reduce direct spending.
     Section 512 would permit DoD to retain in an 
active status certain medical specialists beyond their 
mandatory separation age. That change would affect when some 
service members would begin drawing retirement annuities.
     Section 524 would require DoD to certify within 
five days (or three weeks, in the case of a member in the 
reserve component) that a noncitizen service member has served 
honorably for purposes of naturalizing (becoming a citizen) 
through honorable service in the armed forces. Accelerating 
when a service member becomes a citizen could in turn 
accelerate when the service member's parents could arrive in 
the United States as lawful permanent residents (LPRs). LPRs 
are eligible for federal benefits such as subsidies for health 
insurance purchased through the market places established under 
the Affordable Care Act.
     Section 541 would increase protections from 
reprisal for whistleblowers who are military personnel. CBO 
estimates that enacting that section would increase the number 
of substantiated claims of reprisals and allow those victims to 
receive retroactive payments, benefits, or awards that were 
improperly denied.
     Section 573 would allow DoD to pay to transport 
the remains of certain individuals to two locations if the 
second destination is a national cemetery.
     Section 574 would prohibit DoD from implementing 
its policy to eliminate service members' eligibility to 
transfer Post-9/11 GI Bill benefits after 16 years of service. 
CBO expects that under that limitation, some beneficiaries 
would use benefits sooner, while others would use benefits 
later. The corresponding increases and decreases in direct 
spending would largely offset each other.
     Section 583 would require DoD to review the 
service records of certain service members who fought in World 
War I to determine whether they should be awarded the Medal of 
Honor. Those service members are African-American, Asian-
American, Hispanic-American, Jewish-American, and Native-
American veterans who were recommended for the Medal of Honor 
or who won the Distinguished Service Cross, Navy Cross, or 
French Croix de Guerre with Palm. One Hispanic-American and 
three Jewish-American veterans were awarded Medals of Honor at 
the conclusion of the war. Decades later, the first two 
African-American veterans (Freddie Stowers and Henry Johnson) 
and a fourth Jewish-American veteran (William Shemin) also were 
awarded the nation's highest award for valor following reviews 
of their service records. Any Medals of Honor awarded pursuant 
to the section 583 review would be awarded posthumously; the 
last United States veteran of World War I died in 2012. A 
remote possibility exists, however, that one of the veterans 
honored under section 583 could have a surviving widow. Such a 
widow could potentially receive expanded health benefits or 
increased survivor benefits.
     Section 704 would expand lead screening for 
children enrolled in the military health system. Among those 
are children of retirees of the Coast Guard, National Oceanic 
and Atmospheric Administration, and the Public Health Service, 
whose health benefits are funded with mandatory appropriations.
     Section 827 would eliminate the requirement that 
DoD initiate competitive procurement procedures for products 
for which Federal Prison Industries (FPI) has at least a 5 
percent market share. FPI is a government-owned corporation 
that produces goods and services with prison labor and its 
collections and spending are considered mandatory; thus, 
attempts to modify its market would likely result in changes in 
net direct spending.
     Section 895 would extend the sunset provision of 
the Federal Data Center Consolidation Initiative (FDCCI) from 
2020 to 2022. That initiative is intended to reduce costs, save 
energy, and decrease the number of federal data centers. 
Extending this authority would affect direct spending by 
agencies not funded through annual appropriations.
     Section 1110 would create new reporting and 
notification requirements for federal agencies relating to 
antidiscrimination matters. Those requirements could affect 
direct spending by some agencies (such as the Tennessee Valley 
Authority) that use receipts from fees, the sale of goods, and 
other collections to cover operations costs. Because most of 
those agencies can adjust the amounts they collect as operating 
costs change, CBO estimates that any net change in direct 
spending by those agencies would be insignificant.
     Section 2841 would authorize the Air Force to 
convey land located at Hill Air Force Base to the State of 
Utah. The State would be required to reimburse the Air Force 
for the costs of conveying the property.
     Section 2842 would authorize the Army to release 
all terms and conditions retained over land located at Camp 
Joseph T. Robinson to the State of Arkansas. The State would be 
required to reimburse the Army for the costs of releasing the 
terms and conditions.
     Sections 549 and 560 would require DoD to 
implement policies to provide victims of alleged sexual assault 
with immunity from charges stemming from collateral misconduct 
when reporting sexual assault. Fines and forfeitures adjudged 
against service members during military justice proceedings are 
classified as revenues. CBO expects the policies would change 
the number of cases that are adjudicated; that change could 
increase or decrease revenues in a given year.

Uncertainty

    As described above areas of significant uncertainty include 
accurately estimating the manner and timing by which DoD would 
establish the new Space Corps. Additionally, the timing and 
amount of proceeds from the sale of IPv4 addresses is affected 
by uncertainty about the supply and demand for those addresses 
and the DoD's ability to dispose of them in a manner that 
mitigates cybersecurity concerns. The estimate for the Basic 
Needs Allowance is also affected by uncertainty about the 
number of service members who would qualify for the benefit, 
and the amount of that benefit.

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 
Table 4.

Increase in long-term deficits

    CBO estimates that enacting H.R. 2500 would not increase 
on-budget deficits by more than $5 billion in any of the four 
consecutive 10-year periods beginning in 2030.

Mandates

    H.R. 2500 contains intergovernmental and private-sector 
mandates as defined in UMRA. CBO estimates that the aggregate 
cost of the mandates on would fall below the annual thresholds 
established for intergovernmental and private-sector mandates 
($82 million and $164 million respectively in 2019, adjusted 
annually for inflation).

Mandate that applies to public and private entities

    Section 401 would increase the costs of complying with 
existing intergovernmental and private-sector mandates by 
increasing the authorized end strength for active-duty 
personnel by about 1,400 relative to levels authorized for 
fiscal year 2019. Those additional service members would be 
eligible for existing protections under the Servicemembers 
Civil Relief Act (SCRA). Protections under SCRA require public 
and private entities to grant active-duty personnel various 
allowances for business and tax transactions and court 
procedures.
    For example, SCRA allows service members to maintain a 
single state of residence for paying state and local personal 
income taxes and to request deferrals for certain state and 
local fees. SCRA also requires creditors to charge no more than 
6 percent interest rate on service members' loan obligations 
when those obligations were incurred prior to active-duty 
service, and it allows courts to temporarily stay certain civil 
proceedings, such as evictions, foreclosures, and 
repossessions. The act also precludes the use of a service 
member's personal assets to satisfy the member's trade or 
business liability while he or she is in military service.
    Service members' utilization of the various provisions of 
the SCRA depends on a number of uncertain factors, including 
how often and how long they are deployed. However, the increase 
in the number of active-duty service members covered by SCRA 
would be small, so CBO estimates that the incremental cost of 
compliance for public or private entities also would be small.

Mandates that apply to public entities only

    CBO considers the residency benefits conferred on military 
spouses to be a preemption of the taxing authority of state and 
local governments. Section 624 would expand those benefits to 
allow military spouses to retain their state of residency for 
purposes of registering a business while living in another 
state with their spouse who has relocated under military or 
naval orders. CBO expects some spouses would elect to retain 
their residency if tax and fee rates in their home state are 
lower. Although the effect on revenue collections by individual 
state and local governments would vary, depending on the number 
and income of these individuals and where they reside, CBO 
estimates the net effect of this preemption would be small.

Mandates that apply to private entities

    Section 2812 and 2820 would retroactively change agreements 
between DoD and landlords that service military housing 
constructed under alternative authorities. Specifically, those 
sections would, for contracts that have already been executed, 
prohibit nondisclosure agreements in leases for such housing 
and grant DoD access to those facilities after construction is 
completed for health and safety inspections. Those retroactive 
changes to existing contracts would be private sector mandates 
under UMRA; CBO expects the cost to comply with the new 
requirements would be negligible.

Exclusion

    Section 4 of the Unfunded Mandates Reform Act excludes from 
the application of that act any legislative provision that 
would enforce constitutional rights of individuals. CBO has 
determined that section 575 falls within that exclusion because 
it enforces constitutional rights related to voting.

Estimate prepared by

    Federal Costs: Civilian Personnel--Dawn Regan, Defense 
Authorizations--Kent Christensen, Military Construction, IPv4 
Sales--Aldo Prosperi, Military Health Care--Matthew Schmit, 
Military Personnel--Dawn Regan, Military Retirement and 
Immigration--David Rafferty, Operation and Maintenance--William 
Ma, Procurement, Stockpile--Raymond Hall.
    Mandates: Brandon Lever.

Estimate reviewed by

    David Newman, Chief, Defense, International Affairs, and 
Veterans' Affairs Cost Estimates Unit; Susan Willie, Chief, 
Mandates Unit; Leo Lex, Deputy Assistant Director for Budget 
Analysis; Theresa Gullo, Assistant Director for Budget 
Analysis.

TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 2500, AS REPORTED BY THE HOUSE COMMITTEE ON ARMED SERVICES ON JUNE
                                                    19, 2019
----------------------------------------------------------------------------------------------------------------
                                                        By fiscal year, millions of dollars--
                                    ----------------------------------------------------------------------------
                                        2019       2020       2021       2022       2023       2024    2019-2024
----------------------------------------------------------------------------------------------------------------
                                 INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Authorization Levels for
 Appropriations Subject to the BCA
 Caps:
    Defense:
        Specified Authorizations
         for the Departments of
         Defense and Energy:
        Authorization Levela.......          0    655,552          6          6          6          6    655,576
        Estimated Outlays..........          0    379,889    156,105     56,401     28,196     12,673    633,264
    Nondefense:
        Specified Authorizations
         for Various Departments
         and Agencies:
        Authorization Levela,b.....          0        717         60        156        156        156      1,245
        Estimated Outlays..........          0        326        140        204        235        252      1,157
    Estimated Authorizations for
     Various Departments and
     Agencies:
        Estimated Authorization              0          0         10          0          0          0         10
         Levelc....................
        Estimated Outlays..........          0          0          9          1          0          0         10
            Subtotal:
            Estimated Authorization          0    656,269         76        162        162        162    656,831
             Level.................
            Estimated Outlays......          0    380,215    156,254     56,606     28,431     12,925    634,431
Specified Authorization for Defense
 Appropriations not Subject to the
 BCA Caps:
    Authorization Levela,d.........          0     71,300          0          0          0          0     71,300
    Estimated Outlays..............          0     39,624     20,338      6,272      2,658      1,103     69,995
    Total:
        Estimated Authorization              0    727,569         76        162        162        162    728,131
         Level.....................
        Estimated Outlays..........          0    419,839    176,592     62,878     31,089     14,028    704,426
 
                                 INCREASES OR DECREASES (-) IN DIRECT SPENDINGe
Estimated Budget Authority.........          0          3          4        -11        -21        -17        -41
Estimated Outlays..................          0         11         12        -15        -25        -25        -41
----------------------------------------------------------------------------------------------------------------
Except as described in footnote c, the authorization levels in this table reflect amounts that would be
  specifically authorized by the bill (as shown in Table 2). Some provisions in the bill also would affect the
  costs of defense programs in 2021 and subsequent years; estimates for a select number of those provisions are
  shown in Table 3, but are not included in the defense authorizations above because CBO expects that
  authorizations of appropriations for those costs will be provided in subsequent defense authorization acts.
  Enactment of H.R. 2500 would have an insignificant effect on revenues.
Components may not sum to totals because of rounding; BCA = Budget Control Act.
aAmounts that would be specifically authorized by the bill.
bAuthorizations for the Maritime Administration ($1,040 million), the Department of Veterans Affairs ($127
  million), the Armed Forces Retirement Home ($64 million) and the Naval Petroleum Reserves ($14 million).
cSection 1104 would extend by one year benefits such as paid leave to federal workers who perform official
  duties in a combat zone and are employed by departments and agencies other than the Department of Defense.
  That authority expires on September 30, 2020.
dOf this amount, $69,000 million is for costs of overseas contingency operations, primarily in and around
  Afghanistan, Iraq, and Syria. The remaining $2,300 million are emergency authorizations for the costs of
  military constructions projects related to damage from hurricanes Florence and Michael.
eIn addition to the changes in direct spending shown here, H.R. 2500 would have effects beyond 2024. CBO
  estimates that over the 2020-2029 period, H.R. 2500 would decrease outlays by $9 million (see Table 4).


  TABLE 2.--SPECIFIED AUTHORIZATIONS IN H.R. 2500, AS REPORTED BY THE HOUSE COMMITTEE ON ARMED SERVICES ON JUNE
                                                    19, 2019
----------------------------------------------------------------------------------------------------------------
                                                       By Fiscal Year, Millions of Dollars--
                                  ------------------------------------------------------------------------------
                                      2019       2020       2021       2022       2023       2024     2019-2024
----------------------------------------------------------------------------------------------------------------
Specified Authorizations Subject
 to the BCA Caps:
    Defense:
        Department of Defense:
        Military Personnel:
            Authorization Level..          0      0,065          0          0          0          0      150,065
            Estimated Outlays....          0    139,519      8,532        202         41          0      148,294
        Operation and
         Maintenance:
            Authorization Level..          0    237,724          6          6          6          6      237,748
            Estimated Outlays....          0    153,573     62,058     10,624      3,465      1,491      231,211
        Procurement:
            Authorization Level..          0    131,568          0          0          0          0      131,568
            Estimated Outlays....          0     24,105     39,320     31,701     18,430      8,117      121,673
        Research and Development:
            Authorization Level..          0    100,788          0          0          0          0      100,788
            Estimated Outlays....          0     45,906     37,121      9,027      4,269      2,028       98,351
        Military Construction and
         Family Housing:
            Authorization Level..          0     10,584          0          0          0          0       10,584
            Estimated Outlays....          0        932      2,215      2,842      1,934        992        8,915
        Revolving Funds:
            Authorization Level..          0      2,149          0          0          0          0        2,149
            Estimated Outlays....          0      1,535        427         90         51         44        2,147
            Subtotal Department
             of Defense:
                Authorization              0    632,879          6          6          6          6      632,903
                 Level...........
                Estimated Outlays          0    365,570    149,673     54,486     28,190     12,672      610,591
        Atomic Energy Defense
         Activities:
            Authorization Levela.          0     22,673          0          0          0          0       22,673
            Estimated Outlays....          0     14,319      6,432      1,915          6          1       22,673
            Subtotal, Defense:
                Authorization              0    655,552          6          6          6          6      655,576
                 Level...........
                Estimated Outlays          0    379,889    156,105     56,401     28,196     12,673      633,264
    Nondefense:
        Other Departments and
         Agencies:
            Authorization Levelb.          0        717         60        156        156        156        1,245
            Estimated Outlays....          0        326        140        204        235        252        1,157
            Subtotal (subject to
             caps):
                Authorization              0    656,269         66        162        162        162      656,821
                 Level...........
                Estimated Outlays          0    380,215    156,245     56,605     28,431     12,925      634,421
Specified Authorizations Not
 Subject to the BCA Caps:c
        Military Personnel:
            Authorization Level..          0      4,486          0          0          0          0        4,486
            Estimated Outlays....          0      4,136        295          3          1          0        4,435
        Operation and
         Maintenance:
            Authorization Level..          0     52,781          0          0          0          0       52,781
            Estimated Outlays....          0     32,403     15,971      2,860        810        367       52,411
        Procurement:
            Authorization Level..          0      9,901          0          0          0          0        9,901
            Estimated Outlays....          0      2,621      2,958      2,294      1,178        449        9,500
        Research and Development:
            Authorization Level..          0        891          0          0          0          0          891
            Estimated Outlays....          0        384        354         83         35         14          870
        Military Construction:
            Authorization Level..          0      3,221          0          0          0          0        3,221
            Estimated Outlays....          0         66        756      1,030        634        273        2,759
        Working Capital Funds:
            Authorization Level..          0         20          0          0          0          0           20
            Estimated Outlays....          0         14          4          2          0          0           20
            Subtotal (not subject
             to caps):
                Authorization              0     71,300          0          0          0          0       71,300
                 Level...........
                Estimated Outlays          0     39,624     20,338      6,272      2,658      1,103       69,995
                                  ------------------------------------------------------------------------------
Total Specified Authorizations:
    Authorization Level..........          0    727,569         66        162        162        162      728,121
    Estimated Outlays............          0    419,839    176,583     62,877     31,089     14,028      704,416
----------------------------------------------------------------------------------------------------------------
This table reflects the authorizations explicitly stated in the bill in specified amounts. Various provisions of
  the bill also would authorize activities and provide authorities that would affect costs in 2021 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.
Components may not sum to totals because of rounding; BCA = Budget Control Act.
aPrimarily for atomic energy defense activities of the Department of Energy.
bThe bill would authorize $1,040 million over the 2020-2024 period for the Maritime Administration. That amount
  excludes authorizations specified in the bill that are already authorized in current law. It also would
  authorize $127 million for the Department of Veterans Affairs, $64 million for the Armed Forces Retirement
  Home, and $17 million for the Naval Petroleum Reserves.
cUnder H.R. 2500, funding provided for 2020 pursuant to the authorizations in titles XV, XXIX, and XXX would not
  be subject to the BCA cap on defense appropriations for that year. Of the $71,300 million that would be
  authorized under those titles, $69,000 million would be for costs related to Overseas Contingency Operations
  (primarily military operations and related activities in and around Afghanistan, Iraq, and Syria), and $2,300
  million would be emergency authorizations for military construction projects.


   TABLE 3.--ESTIMATED COSTS FOR SELECTED PROVISIONS IN H.R. 2500, AS REPORTED BY THE HOUSE COMMITTEE ON ARMED
                                            SERVICES ON JUNE 19, 2019
----------------------------------------------------------------------------------------------------------------
                                                       By fiscal year, millions of dollars--
                                  ------------------------------------------------------------------------------
                                      2019       2020       2021       2022       2023       2024     2019-2024
----------------------------------------------------------------------------------------------------------------
                                                 FORCE STRUCTURE
 
Active-Duty End Strengths........          0         25        235        160        166        171          757
Selected Reserve End Strengths...          0       -430       -529       -646       -664       -682       -2,951
Full-time Selected Reserve End             0        247        505        521        536        552        2,361
 Strengths.......................
Reserve Technicians End Strengths          0       -126       -260       -268       -276       -284       -1,214
 
                                            COMPENSATION AND BENEFITS
 
Expiring Bonuses and Allowances..          0      3,123      2,166      1,462      1,440        402        8,593
Basic Needs Allowance............          0          0         25         50         50         50          175
Benefits for Civilians in Combat
 Zones:
    Defense......................          0          0         20          0          0          0           20
    Nondefense...................          0          0         10          0          0          0           10
 
                                             MILITARY HEALTH SYSTEM
 
Contraception Cost Sharing.......          0         13         18         19         20         22           92
Lead Screening...................          0          5         10         10         10         10           45
PFAS Blood Test..................          0          2          4          4          5          5           20
 
                                                OTHER PROVISIONS
 
Space Corps:
    Annual Costs.................          0          0        150        400        700      1,000        2,250
    Onetime Costs................          0         70        100        200        500        500        1,370
Incrementally Fund the LPD-31:
    Amphibious Ship..............          0        247      1,390          0          0          0        1,637
----------------------------------------------------------------------------------------------------------------
Amounts shown in this table for 2020--for costs that would be incurred by DoD--are included in the amounts that
  would be specifically authorized to be appropriated by the bill (as shown in Table 2 and summarized in Table
  1). Associated amounts shown in this table for 2021-2024 would not be specifically authorized by the bill (and
  therefore are not included in Tables 1 and 2); rather, those amounts would be covered by specified
  authorizations in future National Defense Authorization Acts.
For agencies other than DoD, the bill would not authorize appropriations (in specified amounts) to cover costs
  shown above. Table 1 summarizes CBO's estimate of those costs.
PFAS = perfluoroalkyl and polyfluoroalkyl substances.


  Table 4.--ESTIMATED INCREASES OR DECREASES IN DIRECT SPENDING UNDER H.R. 2500, AS REPORTED BY THE HOUSE COMMITTEE ON ARMED SERVICES ON JUNE 19, 2019
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, millions of dollars--
                                                --------------------------------------------------------------------------------------------------------
                                                  2019   2020   2021    2022     2023     2024    2025   2026   2027   2028   2029  2019-2024  2019-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      Increases or Decreases (-) in Direct Spending
 
Sale of Internet Protocol Addresses:
    Estimated Budget Authority.................      0      0      0      -20      -32      -25     -9     -4     -4     -3     -3       -77       -100
    Estimated Outlays..........................      0      0      0      -20      -32      -25     -9     -4     -4     -3     -3       -77       -100
Reduced Age for Reserve Retirement:
    Estimated Budget Authority.................      0      1      2        2        3        3      4      5      6      7      8        11         41
    Estimated Outlays..........................      0      1      2        2        3        3      4      5      6      7      8        11         41
Afghan Special Immigrant Visas:
    Estimated Budget Authority.................      0      0      0        5        6        5      5      5      4      4      4        16         38
    Estimated Outlays..........................      0      0      0        5        6        5      5      5      4      4      4        16         38
Aviation Insurance:
    Estimated Budget Authority.................      0      2      2        2        2        0      0      0      0      0      0         8          8
    Estimated Outlays..........................      0      2      2        2        2        0      0      0      0      0      0         8          8
Contraception Cost Sharing:
    Estimated Budget Authority.................      0      *      *        *        *        *      *      *      *      *      *         1          3
    Estimated Outlays..........................      0      *      *        *        *        *      *      *      *      *      *         1          3
Board of Discharge Appeals:
    Estimated Budget Authority.................      0      *      *        *        *        *      *      *      *      *      *         *          1
    Estimated Outlays..........................      0      *      *        *        *        *      *      *      *      *      *         *          1
National Defense Stockpile:
    Estimated Budget Authority.................      0      0      0        0        0        0      0      0      0      0      0         0          0
    Estimated Outlays..........................      0      8      8       -4       -4       -8      *      0      0      0      0         *          *
    Total Changes in Direct Spending:
        Estimated Budget Authority.............      0      3      4      -11      -21      -17      *      6      6      8      9       -41         -9
        Estimated Outlays......................      0     11     12      -15      -25      -25      *      6      6      8      9       -41         -9
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding; * = between -$500,000 and $500,000.
Other provisions in H.R. 2500 would have insignificant effects on direct spending and revenues.

                                                           [all]