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Staff Contact: Brad Watson (x69719) June 19, 2008

**Appropriations Policy Brief**

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

**Amendment 1: Senate-Passed War Funding**

**[Funding Levels:]{.underline}**

In millions

  ----------------------------------------------------- -----------------
  FY 08, Department of Defense                          99,506

  FY 09, Department of Defense                          65,921

  **Total**                                             **165,427\***
  ----------------------------------------------------- -----------------

\****Note:*** Amendment 2 would reduce this total funding by \$3.58
billion

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

**"Prohibition of Permanent Bases in Iraq":** Prohibits funds from being
used to "establish any military installation or base for the purpose of
providing for the permanent stationing of United States Armed Forces in
Iraq" or to "exercise United States control over any oil resource of
Iraq."

**Iraq Withdrawal:** The supplemental does [NOT]{.underline} contain
language regarding the withdrawal of U.S. troops from Iraq.

**Amendment 2: Other Discretionary and Entitlement Spending**

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

In millions

  ------------------------------------------- ------------- -------------
                                              **Request**   **Amendment
                                                            2**

  **Chapter 1**                                             

  Foreign Agriculture Service                 745           850

  **Chapter 2**                                             

  Office of Inspector General                 0             4

  General Legal Activities                    4             2

  United States Attorneys                     5             5

  United States Marshals Service              15            29

  FBI                                         140           106

  DEA                                         8             30

  ATF                                         4             4

  Federal Prison System                       9             9

  **Chapter 3**                                             

  Defense, Military Construction              2,011         2,755

  Family House Construction, Navy and Marine  12            12

  Base Realignment and Closure Account 2005   415           1,279

  Department of Veterans Affairs              0             516

  **Chapter 4**                                             

  State, Administration of Foreign Affairs    1,868         1,553

  State, International Organizations          387           440

  International Broadcasting Operations       0             2

  Bilateral Economic Assistance               2,050         2,393

  Democracy Fund                              0             76

  International Narcotics                     734           776

  Migration and Refugee Assistance            30            315

  U.S. Emergency Refugee and Migration        0             31
  Assistance                                                

  Nonproliferation, Anti-terrorism, and       5             14
  related                                                   

  Foreign Military Financing Program          0             138

  **Total**                                   **8,393**     **11,339**
  ------------------------------------------- ------------- -------------

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

In millions

  ------------------------------------------- ------------- -------------
                                              **Request**   **Amendment
                                                            2**

  Foreign Agricultural Service                395           395

  FBI                                         0             83

  Department of State                         1,121         1,088

  International Broadcasting Operations       0             6

  Bilateral Economic Assistance               1,838         1,694

  International Narcotics                     225           199

  Migration and Refugee Assistance            191           350

  Nonproliferation, Anti-terrorism, and       0             5
  related                                                   

  Foreign Military Financing Program          170           303

  Peacekeeping Operations                     60            95

  **Total**                                   **3,605**     **4,218**
  ------------------------------------------- ------------- -------------

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

In millions

  ------------------------------------------- ------------- -------------
                                              **Request**   **Amendment
                                                            2**

  **Chapter 1**                                             

  USDA                                        0             150

  **Chapter 2**                                             

  Department of Commerce, Census              0             210

  Federal Prison System                       0             178

  NASA                                        0             63

  National Science Foundation                 0             63

  **Chapter 3**                                             

  Office of Science                           0             63

  Defense Environmental Cleanup               0             63

  **Chapter 4**                               0             63

  Employment and Training Administration      0             110

  NIH                                         0             150

  **Total**                                   **0**         **1,113**
  ------------------------------------------- ------------- -------------

**[Title III: Funding Levels FY 2008, FY 2009:]{.underline}**

In millions

  ------------------------------------------- ------------- -------------
                                              **Request**   **Amendment
                                                            2**

  **Chapter 1**                                             

  Farm Service Agency                         0             89

  Emergency Watershed Protection Program      0             390

  **Chapter 2**                                             

  Corps of Engineers (FY 2009)                5,761         5,761

  **Chapter 3**                                             

  Small Business                              0             267

  **Chapter 4**                                             

  FEMA, Disaster Relief                       0             1,297

  **Chapter 5**                                             

  HUD, Permanent Supportive Housing           0             73

  **Total**                                   **5,761**     **7,877**
  ------------------------------------------- ------------- -------------

**[Title IV---Emergency Unemployment Compensation:]{.underline}**

Title IV creates a temporary program to extend unemployment benefits
beyond the 26 weeks provided under current law for individuals (in all
states) who have exhausted their regular unemployment compensation
benefit. The extension would be for the lesser of thirteen weeks or half
the duration of their regular unemployment benefits. The amount of the
weekly benefit provided by Title IV would equal the benefit under the
regular unemployment compensation program. An individual whose regular
benefit was exhausted on or after May 1, 2007, would qualify for the
extended benefits. The program would terminate on April 1, 2009.

Title IV differs from [H.R.
5749](http://www.house.gov/hensarling/rsc/doc/lb_061108_unemployment.doc)
in two important respects. First, it limits the extension to a total of
13 weeks (instead of a potential 26 weeks in H.R. 5749) and places a
twenty-week work requirement to receive benefits under the extension
program. According to CBO, Title IV increases spending by \$11.5 billion
over eleven years and revenue by \$3.3 billion over eleven years.

**[Title V---Educational Assistance:]{.underline}**

Provides \$62.8 billion over eleven years for 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.

The main difference between Title V of this amendment and the previous
House-passed supplemental is that Title V allows members of the armed
services to transfer their benefits to their spouse or children, which
increases the cost of the benefit by \$11.2 billion. For more
information, see
[this](http://www.house.gov/hensarling/rsc/doc/gi_bill_policy_brief_5-07-08.pdf)
RSC Policy Brief.

**[Title VI---Accountability and Transparency in Government
Contracting:]{.underline}**

This title 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---Medicaid:]{.underline}**

This title is similar to the House-passed version of H.R. 5613. That
legislation, among other things, blocks seven CMS Medicaid regulations
which 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).

This title would block six of the seven regulations (it does not block
the outpatient hospital regulation) included in H.R. 5613. The six
regulations that are included in Title VII of this amendment would save
\$41 billion over ten years.

**[Title VIII---General Provisions:]{.underline}**

Reduces by *\$3.58 billion* Department of Defense funding provided by
Amendment 1. This reduction would be applied proportionately to funding
for Procurement; Research, Development and Test Evaluation; and Defense
Working Capital.

**[RSC Staff Contact:]{.underline}** Brad Watson,
<brad.watson@mail.house.gov>, (202) 226-9719.