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Staff Contact: Russ Vought (x68581) June 12, 2006

**Appropriations Policy Brief**

**H.R. 4939 --- Global War on Terror and Hurricane Relief Supplemental
for FY06**

***Conference Report***

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

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**Budget Deeming Language:** Includes a deeming resolution so that the
Senate cannot exceed a discretionary level of \$873 billion. The Senate
had included a gimmick in the budget resolution allowing for \$7 billion
in extra spending. **Note**: The House has already deemed a budget
resolution for the FY 2007 appropriations cycle.

**Highway Funding:** Provides \$702 .4 million for the Emergency Relief
(Highway) Program to fund back-logged highway projects, including \$100
million to respond to damage caused by Hurricane Dennis and winter
storms in California. The bill proposed to pay for this funding with a
rescission of excess highway contract authority. However, since the
language does not also adjust the annual obligation limitations, it is
unlikely to result in outlay savings and thus real savings to the
taxpayer. The back-logged highway projects include:

-   \$11.5 million for three projects in AL

-   \$6.6 million for three projects in AK

-   \$1.9 million for a project in American Samoa

-   \$227,823 for a project in AR

-   \$309.1 million for four projects in CA (for damage dating back to
    2002)

-   \$4.0 million for two CO projects

-   \$735,464 for a project in CT

-   \$118.5 million for a project in FL

-   \$4.9 million for two projects in ID

-   \$756,055 for a project in KS

-   \$3.9 million for a project in MA

-   \$15.5 million for two projects in MO

-   \$546,588 for a project in NV

-   \$18.6 million for two projects in NH

-   \$3.8 million for a project in NJ

-   \$585,584 for a project in NM

-   \$11.8 million for five projects in NY (for damage dating back to
    1999)

-   \$6.2 million for two projects in NC

-   \$51.5 million for two projects in OH

-   \$944,098 for a project in OK (for damage dating back to 2001)

-   \$38.0 million for one project in OR

-   \$8.8 million for two projects in PA

-   \$2.5 million for one project in Puerto Rico

-   \$1.7 million for one project in RI

-   \$846,316 for two projects in SC

-   \$5.1 million for one project in UT

-   \$3.5 million for three projects in VT

-   \$19.4 million for four projects in WA

-   \$6.1 million for two projects in WV (for damage dating back to
    2001)

-   \$16.6 million for projects on "federal lands"

**Border Security:** Provides \$1.9 billion for border security and port
security as follows: \$708 million for the Border Security Initiative
(cost of deploying the National Guard as proposed by the President),
\$1.2 billion for border security and enforcement at the Department of
Homeland Security, and \$20 million for the Department of Justice.

**Flood Insurance:** Includes language allowing the National Flood
Insurance Program to repay interest on the amounts borrowed from the
Treasury by removing a \$30 million cap (included in the FY 2006
Homeland Security Appropriations bill, P.L. 109-90) and allowing "such
sums as necessary for interest on Treasury borrowings."

**Securing Nuclear Warheads in Russia:** Provides \$44.5 million, as
requested, "to fund urgent activities to secure nuclear warheads" in
Russia.

**Security Forces Funding:** Provides \$3.0 billion for the Iraq
Security Forces Fund and \$1.9 billion for the Afghanistan Security
Forces Fund to train and provide equipment to the security forces in
each country.

**Defense Research & Development Funding:** Provides \$710.7 million for
research and development (R&D) activities, \$291.3 million below the
House-passed level. It is unclear how such R&D funding is urgent,
unforeseen, or temporary, therefore meriting inclusion in a war
supplemental as opposed to being funded through regular order.

**Death Gratuity Benefits:** Provides for retroactive death gratuity
benefits to those military members who died on active duty from May 12,
2005 to August 31, 2005.

**Rescissions:** Relies on various rescissions to offset the cost of new
spending, including a \$119.4 million rescission of unobligated defense
funds, \$37 million of Export-Import Bank funds, and \$7 million from
peacekeeping operations. Since a CBO score is not yet available, it is
unclear whether these rescissions result in outlay savings and therefore
real savings to the taxpayer.

**Guatemala Relief Funds:** Provides for \$6 million for relief and
reconstruction activities in Guatemala resulting from Hurricane Stan.

**International Disaster & Famine Assistance:** Provides \$17.5 million
for police and judicial reform in Haiti, \$50 million for Jordan, \$40.5
million for Pakistan to meet needs resulting from earthquakes, and \$50
million for Liberia.

**Democracy Promotion:** Provides \$20 million for promoting democracy
in Iran and \$2.5 million for "immediate electoral assistance" in the
Democratic Republic of Congo. In addition, \$36.1 million is provided
for international broadcasting activities promoting democracy in Iran.

**International Narcotics Activities:** Provides \$107.7 million for
international narcotics control activities, including \$3.3 million for
the Peace and Justice Unit of the Columbia Fiscalia (supporting criminal
investigations and prosecutions involved with demobilizing paramilitary
organizations) and \$13 million to purchase an aircraft for the
Columbian Navy.

**Bar on Funding the Palestinian Authority:** Prohibits funding for the
Palestinian Authority until it has complied with the Quartet's standards
contained in its January 2006 report. The President may waive this
section if it is in the interest of national security and none of the
funds would flow to Hamas or any entity effectively controlled by Hamas.

**Oyster Activities:** Provides \$38 million to the National Oceanic and
Atmospheric Administration (NOAA) for "activities involving oysters."

**Katrina Defense R&D Funds:** Provides \$19 million for R&D defense
activities affected by Hurricane Katrina, including \$12 million for a
Littoral Combat Ship.

**Shipyard Infrastructure/Northrop Grumman:** Provides \$140 million for
infrastructure improvements at Gulf Coast shipyards with Navy
shipbuilding contracts damaged by Hurricane Katrina. According to press
reports, this funding will help primarily Northrop Grumman facilities.

**Projects:** Provides Army Corps of Engineers funds for North Padre
Island, TX (\$1.5 million), Sacramento, CA (\$30.4 million), and the
Hawaii Water Systems Technical Assistance Program (\$2 million). In
addition, the bill provides \$16 million for hurricane-damaged projects
in Pennsylvania.

**FEMA Funding:** Provides \$6 billion for the Disaster Relief Fund
(DRF) and \$279.8 million for the Disaster Assistance Loan Program. The
Administration originally requested \$9.7 billion for these two accounts
and later revised their request (to pay for additional Army Corps of
Engineer spending) to equal \$7.5 billion. Since much of this funding is
mandated by the Stafford Act after natural disasters, it will likely
have to be "back-filled" at a later date, increasing the pressure to
pass further supplementals.

**Satellite Phones:** Provides \$4 million for Community Health Centers
to purchase satellite phones.

**AmeriCorps Funding:** Provides \$10 million for AmeriCorps funding.

**Armed Forces Retirement Home:** Provides \$176 million for a new Armed
Forces Retirement Home in Gulfport, MS---of which a *portion* (\$64.7
million) is paid for unobligated defense balances.

**Stennis Center/NASA:** Provides \$35 million to repair and
rehabilitate the Stennis Space Center and Michoud Assembly Facility.

**Community Development Block Grants:** Provides \$5.2 billion for CDBG
funding, \$1 billion more than the House passed or the Administration
requested.

**Agriculture Assistance:** Provides \$500 million for agriculture
disaster assistance, including: \$40 million for sugar producers in
Florida, \$40 million for sugar producers in Louisiana, \$400,000 for a
"farmer-owned sugar cane cooperative" in Texas, \$95 million for the
Livestock Compensation Program, \$45 million for the Livestock Indemnity
Program, \$95 million for specialty crops, \$17 million for dairy
producers, \$15 million for cotton seed producers, \$35 million for a
tree assistance program, \$9.6 million to cover FSA administrative
costs, \$100 million for a forestry conservation program, and \$8
million for aquaculture producers.

**Avian Flu:** Provides \$2.3 billion for avian flu preparedness and
response activities.

**Legislative Branch Funding:** Provides \$27.6 million to make
improvements in the utility steam tunnels at the Capitol Power Plant.

**Mine Safety Funding:** Provides \$35.6 million for mine safety
activities (additional inspectors, training, equipment, research, etc.)
at the Department of Labor and CDC.

**Single Holder Rule:** Repeals the "single holder rule" under the
Higher Education Act which allows one's current lender the first
opportunity to consolidate one's loan.

**Technical Corrections for Various Earmarks:** Makes technical
corrections to various *existing* earmarks. For example, the bill
strikes "Clark County Department of Aviation, Las Vegas" and inserts
"University of Nevada, Las Vegas." For more information, please see
Title VII "General Provisions."