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Staff Contact: Russ Vought (x68581) June 20, 2006

**Appropriations Policy Brief**

**H.R. 5631 --- Defense Appropriations Act for FY 2007**

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

**Contingency Operations Reserve Fund:** Includes \$50 billion "for the
first six months of fiscal year 2007 in order to ensure the
uninterrupted delivery of resources to our troops in the field, and to
avoid any disruption in funding for the global war on terrorism." This
is the second year of providing such a defense reserve fund as a down
payment on future war supplemental spending.

**Rescissions**: Relies on roughly \$707.9 million in rescissions to
offset the cost of new spending in order to comply with the budget
resolution. According to CBO, these rescissions result in outlay savings
and therefore, real savings to the taxpayer.

[]{.mark}

**Competitive Sourcing**: Prohibits funds from being made available to
perform any cost study pursuant to the provisions of OMB Circular A--76
(competitive sourcing), if the study being

performed exceeds a period of 24 months after initiation of such study
with respect to a single function activity or 30 months after initiation
of such study for a multi-function activity.

[]{.mark}

**Wind Demonstration Program**: Provides \$6.3 million "to coordinate a
wind demonstration project on a U.S. Air Force installation using
domestically manufactured turbines that are new to the U.S. market and
to execute the renewable energy purchasing plan."

**F/A-22 Sales:** Prohibits funds from being used to approve or license
the sale of the F/A-22 advanced tactical fighter to any foreign
government.

**Dyslexia Report:** Requires the Pentagon to submit a report within 90
days detailing its efforts to address dyslexia in students at DoD
Education Activity Schools.

**[Earmarks:]{.underline}**

**Note:** The following earmarks are located in the text of the bill.
There are additional earmarks listed in the Committee Report.

-   \$2.5 million to the Fisher House Foundation (construction of
    housing for ill or hospitalized military beneficiaries)

-   \$4.5 million to the Intrepid Sea-Air-Space Foundation

-   \$4.0 million to the Center for Applied Science and Technologies at
    Jordan Valley Innovation Center

-   \$1.0 million to the Women in Military Service for America Memorial
    Foundation

-   \$2.0 million to the Presidio Trust

-   \$1.5 million to the Red Cross Consolidated Blood Services Facility

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

*Dollars in Thousands*

  -------------------------------------------------------------------------- ------------- ------------- ------------- ----------- ------------- -------- -------------
                                                                             **FY 2006**   **FY 2007**   **FY 2007**   **Cmte      **Cmte Vs.**  **Cmte   **Cmte Vs.**
                                                                                                                       Vs.**                     Vs.**    

                                                                             **Enacted**   **Request**   **Cmte**      **FY 2006** **Request**   **FY     **Request**
                                                                                                                                                 2006**   

  Military Personnel, Total\...\...\...\...\...\...\...\...\...\.....        83,017,553    86,088,114    84,914,949    1,897,396   -1,173,165    2.29%    -1.36%

  Operations and Maintenance, Total\...\...\...\...\....                     114,433,394   122,449,410   120,541,265   6,107,871   -1,908,145    5.34%    -1.56%

  Procurement, Total\...\...\...\...\...\...\...\...\...\...\...\...\.....   75,774,023    82,919,502    81,781,819    6,007,796   -1,137,683    7.93%    -1.37%

  Research, Develop., Test & Evaluation, Total                               71,410,904    73,156,008    75,336,246    3,925,342   2,180,238     5.50%    2.98%

  Revolving and Management Funds\...\...\...\...\...\....                    2,221,556     2,436,430     2,436,430     214,874     0             9.67%    0.00%

  Chemical                                                                   1,386,819     1,277,304     1,277,304     -109,515    0             -7.90%   0.00%
  Agents\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...                                                                                      

  Drug                                                                       908,474       926,890       936,990       28,516      10,100        3.14%    1.09%
  Interdiction\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...                                                                                

  Related Agencies (intelligence, etc.)\...\...\...\...\....                 662,721       891,211       853,511       190,790     -37,700       28.79%   -4.23%
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