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Staff Contact: Brad Watson (x69719) May 15, 2008

**Appropriations Policy Brief**

***H.R. 2642---Iraq/Afghanistan Appropriations Bill***

**Amendment 1: War Funding**

**[Funding Levels for FY 2008 Supplemental
Appropriations:]{.underline}**

[]{.mark}

In millions

  ----------------------------------------------------- -----------------
  **Department of Defense**                             **Amendment 1**

  Military Personnel                                    17,554

  Operations & Maintenance                              30,250

  *Army*                                                16,344

  *Navy*                                                2,953

  *Marine Corps*                                        160

  *Air Force*                                           5,923

  *Defense-wide*                                        3,388

  *Army Reserve*                                        165

  *Navy Reserve*                                        110

  *Marine Corps Reserve*                                70

  *Air Force Reserve*                                   166

  *Army National Guard*                                 686

  *Air National Guard*                                  287

  Afghanistan Security Fund                             1,400

  Iraq Security Forces                                  1,500

  Iraq Freedom Fund                                     50

  Procurement                                           41,031

  Research, Development, Test, and Evaluation           1,624

  Defense Health Program                                1,439

  Revolving and Management Funds                        1,843

  Other Department of Defense Programs                  1,511

  **Total**                                             **98,202**
  ----------------------------------------------------- -----------------

**[Items of Note:]{.underline}**

**Transfer Authority:** Provides the Secretary of Defense with \$2.5
billion in transfer authority under this chapter---with the requirement
that the Secretary of Defense notify Congress promptly of each transfer
made.

**Commanders' Emergency Response Program (CERP)**: Limits to \$1.03
billion the amount of funding in the amendment that can be used for CERP
"for the purpose of enabling military commanders in Iraq, Afghanistan,
and the Phillippines to respond to urgent humanitarian relief and
reconstruction requirements..."

**Armored Vehicles:** Of the amounts provided for operations in
Afghanistan and Iraq, the bill would allow the Department of Defense to
purchase up to 20 heavy and light armored vehicles.

**Counterterrorist Operations:** Makes available, from funding provided
in the amendment, \$150 million for programs to build the capacity of a
foreign country's national military forces in order to conduct
counterterrorist operations.

**[Funding Levels for FY 2009 Supplemental
Appropriations:]{.underline}**

[]{.mark}

In millions

  ----------------------------------------------------- -----------------
  **Department of Defense**                             **Amendment 1**

  Military Personnel                                    1,194

  Operations & Maintenance                              51,916

  *Army*                                                37,300

  *Navy*                                                3,500

  *Marine Corps*                                        2,900

  *Air Force*                                           5,000

  *Defense-wide*                                        2,649

  *Army Reserve*                                        79

  *Navy Reserve*                                        42

  *Marine Corps Reserve*                                47

  *Air Force Reserve*                                   12

  *Army National Guard*                                 334

  *Air National Guard*                                  53

  Afghanistan Security Fund                             2,000

  Iraq Security Forces                                  1,000

  Procurement                                           4,435

  Research, Development, Test, and Evaluation           388

  Defense Health Program                                1,100

  Other Department of Defense Programs                  2,188

  Mine Resistant Ambush Protected Vehicle Fund          1,700

  **Total**                                             **65,921**
  ----------------------------------------------------- -----------------

**[Items of Note:]{.underline}**

**Transfer Authority:** Provides the Secretary of Defense with \$4
billion in transfer authority under this chapter---with the requirement
that the Secretary of Defense notify Congress promptly of each transfer
made.

**Reports on Progress Toward Stability in Iraq:** Requires the Secretary
of Defense to issue a quarterly report to Congress on "performance
indicators and measures for progress toward military and political
stability in Iraq." The specific elements for these reports are spelled
out on pages 28---34 of the
[amendment](http://www.rules.house.gov/110/text/sup/110_hr2462sup_amnd1.pdf).

**[General Provisions:]{.underline}**

**Intelligence Activities:** Deems intelligence activities funded by
this amendment as being authorized by the National Security Act of 1947.

**Authorized Spending for NATO:** Increases the authorized discretionary
spending level for the U.S. contribution to NATO from \$362.2 million to
\$435.3 million.

RSC Staff Contact for Amendment #1**:** Brad Watson,
<brad.watson@mail.house.gov>, (202) 226-9719.

[]{.mark}

**Amendment 2: Iraq Policy Section**

In general, Amendment #2 of the supplemental contains many of the same
provisions included in other Iraq-withdrawal measures considered by this
Congress. Highlights are as follows:

**Mission Capable Units in Iraq:**  Prohibits funds from being used to
deploy any unit of the Armed Forces to Iraq unless the President has
certified in writing to Congress at least 15 days in advance of the
deployment that the unit is "fully mission capable." The President could
waive this requirement for "reasons of national security."

**Time Limit on Combat Deployments:** Prohibits funds from being used to
initiate, continue, or execute any order that has the effect of
extending the deployment for Operation Iraqi Freedom of any Army unit
(including Reserve and National Guard) beyond 365 days---or beyond 210
days for any Marine unit (including the Reserve). The President could
waive this requirement for "reasons of national security."

**Time Off Between Combat Deployments:** Prohibits funds from being used
to initiate, continue, or execute any order that has the effect of
deploying for Operation Iraqi Freedom any Army unit (including Reserve
and National Guard) if it had been deployed within the previous 365
days---or within the previous 210 days for any Marine unit (including
the Reserve). The President could waive this requirement for "reasons of
national security."

**Interrogation:** Prohibits the U.S. government from using
interrogation techniques not authorized by and listed in the United
States Army Field Manual FM2-22.3 Human Intelligence Collector
Operations.

**Red Cross Notification:** Prohibits funds from being used by the U.S.
intelligence community to detain any individual to which the Red Cross
is denied access.

**No Permanent Bases:** Prohibits the U.S. from establishing a permanent
base in Iraq.

**No U.S. Control of Iraqi Oil:** Prohibits the U.S. from exercising
control over any oil resource of Iraq.

**Iraqi Matching Funds:** Conditions the provision of U.S. funds for
reconstruction in Iraq upon the Iraqi Government matching such funds
dollar-for-dollar (subject to certain exceptions, including grants to
promote democracy and human rights, humanitarian demining, refugee
assistance, and low-cost programs under the Commander's Emergency
Response Program).

**Iraqi Reimbursement for Fuel Costs:** Conditions the obligation of
funds under "Operation and Maintenance, Defense-Wide" on the completion
of an agreement with the Iraqi Government to subsidize fuel costs for
U.S. forces operating in Iraq.

**Withdrawal from Iraq:** Requires the President, within 30 days of this
bill's enactment, to commence an "immediate and orderly" withdrawal of
U.S. Armed Forces from Iraq, with a goal of completing the withdrawal
within 18 months. After such withdrawal, U.S. forces could remain in
Iraq only to:

[]{.mark}

-   Protect U.S. Armed Forces, U.S. diplomatic facilities, and American
    citizens;

-   Conduct limited training of, equip, and provide logistical and
    intelligence support to the Iraq Security forces; and

-   Engage in "targeted counterterrorism operations" against al-Qaeda,
    its affiliates, and other terrorist organizations in Iraq.

[]{.mark}

Requires the Secretary of Defense to report to Congress by July 1, 2008,
and then every 90 days thereafter, on the progress toward a presence in
Iraq that meets what is outlined in the bill and described above.

[]{.mark}

Requires the State Department, within 45 days of this bill's enactment,
to report to Congress on a strategy for civilian-led post-conflict
stabilization and reconstruction assistance for Iraq.

**Extension of Wartime Statute of Limitations:** Extends from three to
five years the length of time after the end of war (or authorization of
the use of military force) after which the suspension of the statute of
limitations on prosecuting war-related contract fraud would end. In
other words, this provision would allow contractors who commit fraud
related to war or the congressionally authorized use of military force
to be prosecuted for a longer time after the end of military action.

**War Profiteering:** Creates a new federal crime of "war profiteering
and fraud," for persons who knowingly attempts to defraud, or succeeds
at defrauding, the United States by materially overvaluing a good or
service. Punishment would be up to \$1 million or up to 20 years in
prison, or both. Also creates a separate crime for false war-time
contracting, with a punishment of up to \$1 million or up to 10 years in
prison, or both. [Allows such suits to be filed in any district where
any party to the contract in question or the provider of goods or
services is located]{.underline}.

**MEJA Expansion:** Includes language similar to the MEJA Expansion and
Enforcement Act (H.R. 2740), as it passed the House on October 4, 2007,
by a vote of [389-30](http://clerk.house.gov/evs/2007/roll940.xml). This
section would expand the Military Extraterritorial Jurisdiction Act
(MEJA, P.L. 106-523) to allow for the criminal prosecution of *all*
federal contractors who are serving in or near an area where the
Department of Defense (DoD) is conducting a "contingency operation" and
would require the establishment of investigative units overseas in areas
where contractors are operating. Currently, certain government employees
or contractors (e.g. State Department contractor Blackwater USA) are not
covered under MEJA law and thus cannot be prosecuted for alleged crimes
committed overseas in DoD contingency operation areas. For more
information, see the RSC Legislative Bulletin on H.R. 2740
[here](http://www.house.gov/hensarling/rsc/doc/lb_100307_meja.doc).

**Removal Procedures for Non-DoD Employees and Contractors:** Authorizes
the Attorney General to prescribe regulations governing the
investigation, apprehension, detention, delivery, and removal of non-DoD
employees and contractors accused of crimes.

**[Possible Conservative Concerns]{.underline}:** Some conservatives may
be concerned that this amendment would undermine the constitutional
authority of the President as Commander-in-Chief by requiring the
withdrawal from Iraq. Furthermore, some conservatives may be concerned
that this amendment would give strength to our enemy by showing American
weakness and encouraging our enemy to wait until after the deadlines in
this legislation to launch more attacks. Nothing in this amendment would
end hostilities in Iraq, just the extent of U.S. participation in
combating the hostilities.

Some conservatives may also be concerned at the language limiting the
remaining presence of U.S. forces in Iraq after the withdrawal. The way
the language is written, U.S. forces could only engage in
counterterrorism operations against terrorist organizations, leaving
open the question of whether our forces could fight against individual
terrorists or against the agents of foreign governments (such as Iran).

Some conservatives may also be concerned at the war profiteering
provisions in this amendment, especially the language allowing for
lawsuits to be filed in any jurisdiction in which a defendant entity has
a presence (which could allow for forum shopping when the defendant is
national company with operations in numerous states).

**RSC Staff Contact for Amendment #2:** Paul Teller,
<paul.teller@mail.house.gov>, (202) 226-9718.

**Amendment 3: Domestic Spending, Tax Increase**

**[Title 1: Funding Levels FY 2008:]{.underline}**

[]{.mark}

In millions

  ------------------------------------------- ------------- -------------
                                              **Request**   **Amendment
                                                            3**

  **Chapter 1**                                             

  Foreign Agriculture Service                 745           1,245

  **Chapter 2**                                             

  Office of Inspector General                 0             4

  General Legal Activities                    4             2

  United States Attorneys                     5             5

  United States Marshals Service              15            19

  FBI                                         140           175

  DEA                                         8             12

  ATF                                         4             4

  Federal Prison System                       9             9

  **Chapter 3**                                             

  Defense, Military Construction              2,011         3,275

  Family House Construction, Navy and Marine  12            12

  Base Realignment and Closure Account 2005   415           1,355

  Department of Veterans Affairs              0             120

  **Chapter 4**                                             

  State, Administration of Foreign Affairs    1,868         1,691

  State, International Organizations          387           387

  Bilateral Economic Assistance               2,050         2,093

  Democracy Fund                              0             75

  International Narcotics                     734           419

  Migration and Refugee Assistance            30            300

  U.S. Emergency Refugee and Migration        0             25
  Assistance                                                

  Nonproliferation, anti-terrorism, and       5             11
  related                                                   

  Foreign Military Financing Program          0             73

  **Total**                                   **8,393**     **11,310**
  ------------------------------------------- ------------- -------------

[]{.mark}

**[Title I: Funding Levels FY 2009---Bridge Fund Supplemental
Appropriations:]{.underline}**

[]{.mark}

In millions

  ------------------------------------------- ------------- -------------
                                              **Request**   **Amendment
                                                            3**

  Department of State                         1,121         1,062

  International Broadcasting Operations       0             8

  Bilateral Economic Assistance               1,838         1,716

  International Narcotics                     225           205

  Migration and Refugee Assistance            191           350

  Nonproliferation, anti-terrorism, and       0             5
  related                                                   

  Foreign Military Financing Program          170           170

  Peacekeeping Operations                     60            85

  **Total**                                   **3,605**     **3,600**
  ------------------------------------------- ------------- -------------

[]{.mark}

**[Title II: Funding Levels FY 2008:]{.underline}**

[]{.mark}

In millions

  ------------------------------------------- ------------- -------------
                                              **Request**   **Amendment
                                                            3**

  **Chapter 1**                                             

  Department of Commerce, Census              0             210

  Federal Prison System                       0             178

  **Chapter 2**                                             

  Corps of Engineers---Civil                  5,761         5,761

  **Chapter 3**                               4             2

  State unemployment insurance and employment 0             110
  service operations                                        

  **Total**                                   **5,761**     **6,259**
  ------------------------------------------- ------------- -------------

[]{.mark}

**Title III---Educational Assistance**

Provides \$51.6 billion over ten years in veterans educational
assistance. Specifically, the new entitlement provides up to 36 months
in lump-sum tuition payments equal to the highest in-state tuition rate
in each state, a monthly housing stipend, and a \$1,000 annual stipend
for books. The benefit would vary by the institution and the state, but
the Pentagon estimates that it would provide a monthly benefit of
approximately \$2,400---a 117% increase over the current MGIB allowance.
Those individuals serving an aggregate of at least 36 months commencing
on or after September 11, 2001, or who have been discharged for a
service-connected disability after 30 continuous days, would be eligible
for the full entitlement. These individuals would also be eligible for a
"Yellow Ribbon G.I. Education Enhancement Program" if the tuition
payments failed to cover the full cost of their chosen school. The
Department of Veterans Affairs and the institution would split the
remaining cost. A proportionally smaller entitlement would be extended
to those on active duty for less time, so long as the individual serves
an aggregate of 90 days after September 11, 2001.

Keeps the current MGIB program in place at current levels but creates an
*alternative* entitlement program for those who have served
post-September 11, 2001. Also provides up to \$1,200 in tutorial
assistance to eligible individuals, up to \$2,000 to pay for one
licensing or certification test, and certain supplemental education
services. Individuals would have up to 15 years after the individual's
release from active duty to take advantage of these new benefits.

The bill prohibits individuals from receiving educational assistance and
other current MGIB programs concurrently. Instead, each individual would
elect which program to receive educational assistance from. For those
electing to transition from the current MGIB program, the bill would
refund individuals for their current enrollment contributions. The bill
does not require an enrollment contribution.

For my information, see
[this](http://www.house.gov/hensarling/rsc/doc/gi_bill_policy_brief_5-07-08.pdf)
RSC Policy Brief.

[]{.mark}

**Title IV---Emergency Unemployment Compensation**

Provides thirteen weeks of unemployment compensation to workers who have
lost their jobs. For states with unemployment rates that exceed 6%, the
benefits would be extended for another thirteen weeks. CBO scores this
provision as costing \$14.5 billion over the FY 2008---2018 period.

**Title V---Medicaid**

Includes the House-passed version of H.R. 5613, which among other
things, blocks seven CMS Medicaid regulations that would otherwise save
taxpayers \$42 billion over ten years. For more information, see the RSC
Legislative Bulletin
[here](http://www.house.gov/hensarling/rsc/doc/lb_042208_medicaid_regs.doc).

**Title VI---Accountability and Transparency in Government Contracting**

Includes the text of two House-passed bills, [H.R.
5712](http://www.house.gov/hensarling/rsc/doc/lb_042308_suspensions.doc)
(Close the Contractor Fraud Loophole Act) and [H.R.
3928](http://www.house.gov/hensarling/rsc/doc/lb_042308_suspensions.doc)
(Government Funding Transparency Act of 2008).

**Title VII---Tax Increase**

Creates a surtax of 0.47% on individuals earning more than \$500,000 a
year (or married couples earning more than \$1 million). This would have
the effect of creating a new, seventh income tax bracket of 35.47%.
According to CBO, this provision would increase taxes by \$51.6 billion
over ten years.

**RSC Staff Contact for Amendment #3:** Brad Watson,
<brad.watson@mail.house.gov>, (202) 226-9719.