To provide for a reduction in the number of members of the Armed Forces of the United States stationed in Europe unless the European member nations of NATO assume an increased share of the nonpersonnel costs of United States military installations in those nations.

Summary: Directs the Secretary of Defense, for each of FY 1996 through 1999, to reduce the European end strength level of U.S. armed forces in accordance with a reduction formula based on the allied contribution level achieved (the level of contributions toward nonpersonnel costs made to the United States by allied nations benefiting from the presence of such troops).  Directs the Secretary to cease such reductions if the allied level achieved is equal to or above a specified goal.  Urges the President to seek to have European member nations of NATO assume an increased share of nonpersonnel costs of U.S.  military installations in such countries in accordance with a specified timetable. Allows the Secretary to continually maintain a European end strength level of 25,000 members.  Authorizes the President or the Secretary to waive such reductions in the event of a significant threat to national security.  Provides for the allocation of such force reductions among military personnel.

SECTION 1. REDUCTION OF UNITED STATES MILITARY FORCES IN EUROPE.

    (a) End Strength Reductions for Military Personnel in Europe.--
Notwithstanding section 1002(c)(1) of the National Defense 
Authorization Act, 1985 (22 U.S.C. 1928 note), but subject to 
subsection (d), for each of the fiscal years 1996, 1997, 1998, and 
1999, the Secretary of Defense shall reduce the European end strength 
level of members of the Armed Forces in accordance with subsection (b).
    (b) Reduction Formula.--
            (1) Application of formula.--If the allied contribution 
        level determined under paragraph (2) for a fiscal year is below 
        the goal specified in subsection (c) applicable to that fiscal 
        year, the Secretary of Defense shall reduce the European end 
        strength level of members of the Armed Forces by 10 percent in 
        equal installments over the next four fiscal years. The 10-
        percent reduction shall be made from the end strength level in 
        effect pursuant to section 1002(c)(1) of the National Defense 
        Authorization Act, 1985 (22 U.S.C. 1928 note), as modified by 
        operation of this section, for the fiscal year in which the 
        Secretary determines that such reduction is required.
            (2) Allied contribution level.--To determine the allied 
        contribution level with respect to a fiscal year, the Secretary 
        of Defense shall calculate the aggregate amount of nonpersonnel 
        costs for United States military installations in European 
        member nations of NATO that are assumed during that fiscal year 
        by such nations, except that the Secretary may consider only 
        those cash and in-kind contributions by such nations that 
        replace expenditures that would otherwise be made by the 
        Secretary using funds appropriated or otherwise made available 
        in defense appropriations Acts.
            (3) Termination of reductions.-- The Secretary shall cease 
        making the reduction required by paragraph (1) for a fiscal 
        year if the allied contribution level is equal to or above the 
        goal specified in subsection (c) applicable to that fiscal 
        year.
    (c) Annual Goals for Force Reduction.--In continuing efforts to 
enter into revised host-nation agreements as described in section 
1301(e) of National Defense Authorization Act for Fiscal Year 1993 
(Public Law 102-484; 106 Stat. 2545) and section 1401(c) of the 
National Defense Authorization Act for Fiscal Year 1994 (Public Law 
103-160; 107 Stat. 1824), the President is urged to seek to have 
European member nations of NATO assume an increased share of the 
nonpersonnel costs of United States military installations in those 
nations in accordance with the following timetable:
            (1) By September 30, 1995, 15 percent of such costs should 
        be assumed by those nations.
            (2) By September 30, 1996, 30 percent of such costs should 
        be assumed by those nations.
            (3) By September 30, 1997, 40 percent of such costs should 
        be assumed by those nations.
            (4) By September 30, 1998, 50 percent of such costs should 
        be assumed by those nations.
    (d) Exceptions.--
            (1) Minimum end strength authority.--Notwithstanding 
        reductions required pursuant to subsection (a), the Secretary 
        of Defense may maintain a European end strength level of 
        members of the Armed Forces of at least 25,000 members of the 
        Armed Forces.
            (2) Waiver authority.--The President or the Secretary of 
        Defense may waive operation of this section in the case of a 
        significant threat to national security, as determined by the 
        President or the Secretary. The President or the Secretary 
        shall immediately inform Congress of the waiver and the reasons 
        for the waiver.
    (e) Allocation of Force Reductions.--To the extent that there is a 
reduction in the European end strength level of members of the Armed 
Forces in a fiscal year pursuant to subsection (a)--
            (1) half of the reduction shall be used to make a 
        corresponding reduction in the authorized end strength level 
        for active duty personnel for such Armed Force for that fiscal 
        year; and
            (2) half of the reduction shall be used to make a 
        corresponding increase in permanent assignments or deployments 
        of forces in the United States or other nations (other than 
        European member nations of NATO) for each such Armed Force for 
        that fiscal year, as determined by the Secretary of Defense.
    (f) Definitions.--For purposes of this section:
            (1) The term ``European end strength level of members of 
        the Armed Forces'' means the end strength level of members of 
        the Armed Forces of the United States assigned to permanent 
        duty ashore in European member nations of the North Atlantic 
        Treaty Organization.
            (2) The term ``nonpersonnel costs'', with respect to United 
        States military installations in European member nations of 
        NATO, means costs for those installations other than costs paid 
        from military personnel accounts.