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[House Document 110-19]
[From the U.S. Government Publishing Office]

110th Congress, 1st Session - - - - - - - - - - House Document 110-19
 
          A REQUEST FOR BUDGET AMENDMENTS FOR FISCAL YEAR 2008

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              TRANSMITTING

  A REQUEST FOR CONGRESS TO REVISE THE FY 2007 DEPARTMENT OF DEFENSE 
SUPPLEMENTAL REQUEST PROPOSED IN THE FY 2008 BUDGET--RECEIVED MARCH 12, 
                                  2007

   March 12, 2007.--Message and accompanying papers referred to the 
         Committee on Appropriations and ordered to be printed
                                           The White House,
                                         Washington, March 9, 2007.
Hon. Nancy Pelosi,
Speaker of the House of Representatives,
Washington, DC.
    Dear Madam Speaker: I ask the Congress to consider the 
enclosed revisions to the FY 2007 Department of Defense 
supplemental request proposed in my FY 2008 Budget. This 
revised request would better align resources based on the 
assessment of military commanders to achieve the goal of 
establishing Iraq and Afghanistan as democratic and secure 
nations that are free of terrorism. Overall, the discretionary 
budget authority in my FY 2007 supplemental proposal would not 
be increased by these requests.
    The details of these amendments are set forth in the 
enclosed letter from the Director of the Office of Management 
and Budget,
            Sincerely,
                                                    George W. Bush.
                [Estimate No. 3, 110th Cong., 1st Sess.]

                 Executive Office of the President,
                           Office of Management and Budget,
                                     Washington, DC, March 9, 2007.
The President,
The White House.
    Submitted for your consideration are amendments to the FY 
2007 supplemental appropriations request for the Department of 
Defense proposed in your FY 2008 Budget. These amendments 
reflect evolving requirements for the Global War on Terror.
    The proposals would reallocate $3.2 billion within the 
pending FY 2007 request; therefore, total discretionary budget 
authority for the FY 2007 supplemental would not be increased 
by these amendments. Items in the February 5, 2007, FY 2007 
supplemental request that have been used as offsets have been 
deemed less timely or lower priorities than those in the 
current request. As described below and in more detail in the 
enclosures, the requests include the following:
Iraq
    The total revised request covers funding for soldiers and 
their equipment that will deploy in support of our strategy in 
Iraq, as well as other initiatives integral to the counter-
insurgency strategy. The revised funding proposals would 
address:
     Operations and Personnel--$769 million to provide 
additional support to deployed Brigade Combat Teams such as 
military police, engineers, explosive ordinance disposal, 
personnel, aerial refueling, and division command and control 
elements;
     Equipment--$1.5 billion for additional armor kits 
and transport vehicles, including $500 million for Mine 
Resistant Ambush Protected vehicles, the newest generation of 
tactical vehicles designed to protect troops against mines and 
Improvised Explosive Devices;
     Provincial Reconstruction Teams--$150 million to 
cover the costs of secure transportation and force protection 
of the new Provincial Reconstruction Teams that are being 
established in Iraq; and
     State-Owned Enterprises (factory restarts)--$100 
million to help re-start state-owned factories and return 
unemployed Iraqis to work.
Afghanistan
    The request includes funding to cover the costs of combat 
soldiers and trainers who will deploy to Afghanistan in 
anticipation of increased combat operations against the 
resurgent Taliban. The revised funding proposals would address:
     Operations and Personnel--$272 million to cover 
the cost of deploying an additional Brigade Combat Team;
     Intelligence and Support Activities--$99 million 
to increase the number of linguists in Afghanistan, provide 
additional intelligence assets for operations, and support 
minor construction required for the additional Brigade Combat 
Team being deployed; and
     Accelerating the Development of the Afghan 
National Security Forces--$139 million to provide additional 
embedded trainers required to support the Afghan National 
Security Forces.
Pakistan
    This transmittal proposes $110 million to support 
Pakistan's efforts to combat terrorism through development of 
the regions bordering Afghanistan known as the Federally 
Administered Tribal Areas. In addition, the amendment would 
support the Frontier Corps.
Transfer Authority
    The revised request proposes to increase the General 
Transfer Authority level available in the FY 2007 Department of 
Defense appropriations by $3.5 billion. This increase would 
support funding transfers necessary to accelerate the training 
of Iraqi Security Forces and the activities of the Improvised 
Explosive Device Defeat Task Force.
Medical Care
    The President has created a bipartisan Commission to 
conduct a comprehensive review of the services America is 
providing our returning global war on terror service members. 
Pending the findings of the Commission, $50 million is included 
for a new medical care fund.
Reallocations
    The additional requested funding is fully offset by 
reallocations from lower priority activities within the 
original FY 2007 supplemental request. The funding 
reallocations remove several previously requested items, such 
as aircraft, a logistics system, and support equipment. The 
amendments also reflect updated cost estimates for naval 
forces, lower fuel prices, reduced requirements for 
transportation of coalition forces, and the removal of funding 
for support activities not associated with Iraq or Afghanistan.
Recommendation
    I have reviewed these proposals and I am satisfied that 
they are necessary at this time. Therefore, I join the 
Secretary of Defense in recommending that you transmit these 
amendments to the Congress.
            Sincerely,
                                       Rob Portman.
    Enclosures.
                        Revised FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                           Military Personnel

                        MILITARY PERSONNEL, ARMY

FY 2008 Budget Appendix Page: 1143
FY 2007 Pending Request: $8,305,899,000
Proposed Revision: $204,371,000
Revised Request: $8,510,270,000

    (In the appropriations language under the above heading, 
delete ``$8,305,899,000'' and substitute $8,510,270,000.)
    This amendment would provide $204.4 million to support the 
deployment of reinforcements to Iraq and Afghanistan. Multi-
National Forces--Iraq (MNF-I) operations require support forces 
such as military police, engineers, intelligence, and explosive 
ordinance disposal personnel to complement the previously 
announced increase in combat forces. Funds are also needed to 
support the plus-up of U.S. forces for Afghanistan and to 
provide for an additional training brigade to accelerate 
training of Afghanistan National Security Forces.
                        Revised FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                           Military Personnel

                     MILITARY PERSONNEL, AIR FORCE

FY 2008 Budget Appendix Page: 1144
FY 2007 Pending Request: $1,100,687,000
Proposed Revision: $600,000
Revised Request: $1,101,287,000

    (In the appropriations language under the above heading, 
delete ``$1,100,687,000'' and substitute $1,101,287,000.)
    This amendment would provide $0.6 million to support the 
plus-up of aerial refueling aircrews for Iraq. MNF-I operations 
require the deployment of tanker refueling personnel in support 
of combat forces.
                        Revised FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                       Operation and Maintenance

                    OPERATION AND MAINTENANCE, ARMY

FY 2008 Budget Appendix Page: 1147
FY 2007 Pending Request: $19,803,572,000
Proposed Revision: $619,807,000 (net)
Revised Request: $20,423,379,000

    (In the appropriations language under the above heading, 
delete ``$19,803,572,000'' and substitute $20,423,379,000.)
    This amendment would provide $1.1 billion to support the 
operation of forces in Iraq and Afghanistan, including military 
police, engineers, intelligence, and explosive ordinance 
disposal personnel to support combat forces. This amendment 
also reflects updated cost estimates.
    Funds are also needed to support the plus-up of U.S. forces 
for Afghanistan, to sustain the additional training brigade 
needed to accelerate training of the Afghan National Security 
Forces, to provide additional contract linguists, and to 
construct a forward operating base for an additional brigade 
combat team.
    To support higher priority emergency Global War on Terror 
needs, this revision would remove $436.3 million from the 
pending supplemental request for the Regional War on Terror, 
reflect the most recent reduction in fuel prices, and a re-
estimate of funds necessary to grow the size of the permanent 
force.
                        Revised FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                       Operation and Maintenance

                    OPERATION AND MAINTENANCE, NAVY

FY 2008 Budget Appendix Page: 1147
FY 2007 Pending Request: $5,945,397,000
Proposed Revision: -$904,915,000
Revised Request: $5,040,482,000

    (In the appropriations language under the above heading, 
delete ``$5,945,397,000'' and substitute $5,040,482,000.)
    This amendment would reduce the pending supplemental 
request by a total of $904.9 million to support higher priority 
emerging Global War on Terror needs. The reduction in this 
account includes: $99.8 million from the Regional War on Terror 
and reduced fuel costs to reflect the latest prices; and $805.1 
million as a result of the updated cost estimates for naval 
forces supporting combat forces in Iraq.
                        Revised FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                       Operation and Maintenance

                  OPERATION AND MAINTENANCE, AIR FORCE

FY 2008 Budget Appendix Page: 1148
FY 2007 Pending Request: $7,069,259,000
Proposed Revision: -$33,378,000 (net)
Revised Request: $7,035,881,000

    (In the appropriations language under the above heading, 
delete ``$7,069,259,000'' and substitute $7,035,881,000.)
    This amendment would remove $51.2 million from the pending 
supplemental request for the Regional War on Terror and reduce 
fuel costs to reflect the latest prices in order to support 
higher priority emerging Global War on Terror needs. In 
addition, the amendment would increase the account by $17.8 
million for additional Air Force operations (e.g., aerial 
refueling) in support of forces in Iraq and Afghanistan.
                        Revised FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                       Operation and Maintenance

                OPERATION AND MAINTENANCE, DEFENSE-WIDE

FY 2008 Budget Appendix Page: 1148
FY 2007 Pending Request: $3,378,307,000
Proposed Revision: -$99,000,000
Revised Request: $3,279,307,000

    (In the appropriations language under the above heading, 
delete ``$3,378,307,000'' and substitute $3,279,307,000.)
    This amendment would remove a total of $99.0 million to 
support higher priority emerging Global War on Terror needs. 
This reduction includes $50 million designated to transport and 
sustain coalition partners, due to a reduction in requirements; 
$38.3 million intended for a berthing barge at Guantanamo Bay, 
Cuba, which was determined to be of lower priority in FY 2007; 
and $10.7 million for the Regional War on Terror.
                          New FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                       Operation and Maintenance

                          MEDICAL SUPPORT FUND

    There is hereby established in the Treasury of the United 
States a fund to be known as the Medical Support Fund. For 
necessary expenses of the Medical Support Fund, $50,000,000, to 
remain available for transfer until September 30, 2008, to 
support programs and activities relating to the medical 
treatment, care, rehabilitation, recovery and support of the 
armed forces: Provided, That the Secretary of Defense may 
transfer the funds provided herein to appropriations for 
military personnel; operation and maintenance; procurement; 
research, development, test and evaluation; military 
construction; and the Defense Health Program: Provided further, 
That funds transferred shall be merged with and be available 
for the same purposes and for the same time period as the 
appropriation or fund to which transferred: Provided further, 
That this transfer authority is in addition to any other 
transfer authority available to the Department of Defense: 
Provided further, That upon a determination that all or part of 
the funds transferred from this appropriation are not necessary 
for the purposes provided herein, such amounts may be 
transferred back to this appropriation: Provided further, That 
the Secretary of Defense shall, not fewer than five days prior 
to making transfers from this appropriation, notify the 
congressional defense committees in writing of the details of 
any such transfer.
    This proposal would authorize a new Medical Support Fund to 
improve the effectiveness of efforts to transition returning 
servicemembers from deployment in support of the Global War on 
Terror to a successful return to productive military service or 
civilian society. This proposal also requests $50 million to be 
available through September 30, 2008.
                        Revised FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                       Operation and Maintenance

                           IRAQ FREEDOM FUND

FY 2008 Budget Appendix Page: 1152
FY 2007 Pending Request: $205,600,000
Proposed Revision: $360,000,000
Revised Request: $565,600,000

    (In the appropriations language under the above heading, 
delete ``$205,600,000'' and substitute $565,600,000; and add 
the following before the period: , of which, notwithstanding 
any other provision of law, not to exceed $100,000,000 may be 
used for the redevelopment of the Iraqi industrial sector by 
identifying, and providing assistance to, factories and other 
industrial facilities that are best situated to resume 
operations quickly and reemploy the Iraqi workforce; and not to 
exceed $110,000,000 may be transferred to the ``Economic 
Support Fund,'' Department of State, for use in programs in 
Pakistan.)
    This amendment would provide a total increase of $360.0 
million to support the Provincial Reconstruction Teams (PRTs) 
in Iraq ($150.0 million) and the Task Force to improve Business 
and Stability Operations in Iraq ($100.0 million), and provide 
economic assistance to the Federally Administered Tribal Areas 
(FATA) in Pakistan ($110.0 million).
    The PRT program is a critical element of the U.S. counter-
insurgency strategy jointly executed by the Department of State 
and the Department of Defense. Its purpose is to bolster 
moderates, promote reconciliation and shape the political 
environment, support economic development, and build the 
capacity of Iraqi provincial governments to hasten the 
transition to Iraqi self-sufficiency.
    These funds would support secure theater airlift and ground 
transportation for the PRTs in Iraq and provide force 
protection, body armor, and clothing for all PRT personnel 
collocated with the military, including those operating out of 
military forward operating bases and in embedded teams. In 
addition, these funds would provide special pay and benefits 
for 129 deployed civilians, personnel hired to backfill these 
civilians, travel, and training. The Department of State will 
fund operational and life support requirements for these PRT 
members.
    The Task Force to Improve Business and Stability 
Operations--Iraq will help re-start over 140 Iraqi factories 
during the next 6 to 18 months, employing up to 150,000 people. 
Most of these factories are viable industrial entities and can 
serve as an engine for private sector industry, agricultural 
production, and service sector economic activity in Iraq. Over 
the past six months, the Government of Iraq, and the 
Departments of Defense, State, and the Treasury have assessed 
Iraqi factories, prepared feasibility studies and business 
plans, and reached out to potential Iraqi and international 
firms that could purchase manufactured products. The requested 
funding would be used to procure machines, tools, and 
generators needed to re-start these factories. Generating 
employment for Iraqis is a key component of America's effort to 
help bring peace and stability to the country.
    To promote economic development and enhance security in 
Pakistan border areas, $110.0 million will be transferred to 
the Department of State to assist Pakistan's efforts to develop 
the autonomous FATA along the Pakistan-Afghanistan border. 
These funds are required to implement the Administration's 
strategy for defeating the Taliban and other insurgents in 
Afghanistan. Resources will enable the immediate launch and 
implementation of the Government of Pakistan's recently 
finalized FATA Development Plan. The funds would be used to 
build the capacity of institutions, build critical 
infrastructure in the region, and expand USAID projects 
currently underway. Despite the progress Pakistan has made 
toward economic and security reform overall, the Tribal Areas 
remain chronically underdeveloped and offer safe havens and 
recruiting grounds for terrorists. Lack of funding will allow 
the conditions to persist that have made the region a breeding 
ground for terrorists, hindering U.S. and coalition operations 
in the region and increasing the risk to allies and the 
homeland.
    The additional language now proposed is necessary to 
provide the additional authority needed to use funds 
appropriated to the Iraq Freedom Fund to fund the Task Force to 
Improve Business and Stability Operations--Iraq and promote 
economic development in Pakistan.
                        Revised FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                              Procurement

        PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY

FY 2008 Budget Appendix Page: 1155
FY 2007 Pending Request: $3,474,389,000
Proposed Revision: $27,926,000
Revised Request: $3,502,315,000

    (In the appropriations language under the above heading, 
delete ``$3,474,389,000'' and substitute $3,502,315,000.)
    This amendment would increase the pending request by $27.9 
million to procure additional small arms in support of the 
Embedded Training Teams that will train the Afghanistan 
National Security Forces.
                        Revised FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                              Procurement

                        OTHER PROCUREMENT, ARMY

FY 2008 Budget Appendix Page: 1155
FY 2007 Pending Request: $9,908,649,000
Proposed Revision: $1,038,038,000 (net)
Revised Request: $10,946,687,000

    (In the appropriations language under the above heading, 
delete ``$9,908,649,000'' and substitute $10,946,687,000.)
    This amendment would provide $1.2 billion to procure 
additional equipment to include non-tactical and heavy armored 
vehicles identified by the Joint Urgent Operational Needs 
process, and reflect the updated cost estimates to support 
forces deployed to Iraq and Afghanistan. It would also provide 
funds for additional add on armor kits and Mine Resistant 
Ambush Protected vehicles for enhanced force protection.
    The amendment would remove $189.2 million to finance higher 
priority emerging Global War on Terror needs. Specifically, the 
amendment would remove $176.0 million for the Single Army 
Logistics Enterprise system. The Army will continue to use 
existing logistics control systems. In addition, the amendment 
would remove $13.2 million for the Information Systems program, 
which are intended to improve efficiency, but are a lower 
priority than providing force protection for the troops.
                        Revised FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                              Procurement

                       AIRCRAFT PROCUREMENT, NAVY

FY 2008 Budget Appendix Page: 1156
FY 2007 Pending Request: $1,105,713,000
Proposed Revision: -$375,000,000
Revised Request: $730,713,000

    (In the appropriations language under the above heading, 
delete ``$1,105,713,000'' and substitute $730,713,000.)
    This amendment would reduce the pending request for five 
EA-18G fighter aircraft by $375.0 million to finance higher 
priority emerging Global War on Terror needs.
                        Revised FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                              Procurement

                        OTHER PROCUREMENT, NAVY

FY 2008 Budget Appendix Page: 1157
FY 2007 Pending Request: $846,874,000
Proposed Revision: -$101,449,000
Revised Request: $745,425,000

    (In the appropriations language under the above heading, 
delete ``$846,874,000'' and substitute $745,425,000.)
    This amendment would reduce the pending request by $101.4 
million. Specifically, the amendment would remove $46.8 million 
for Materiel Handling Equipment and $54.6 million for Command 
Support Equipment to finance higher priority emerging Global 
War on Terror needs. Purchase of this equipment can be deferred 
to future years because the Navy can continue to use existing 
systems. This proposed revision also reflects updated cost 
estimates related to support of combat forces in Iraq [and 
Afghanistan].
                        Revised FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                              Procurement

                       PROCUREMENT, MARINE CORPS

FY 2008 Budget Appendix Page: 1157
FY 2007 Pending Request: $1,805,715,000
Proposed Revision: $250,000,000
Revised Request: $2,055,715,000

    (In the appropriations language under the above heading, 
delete ``$1,805,715,000'' and substitute $2,055,715,000.)
    This amendment would increase the pending request by $250.0 
million to procure Mine Resistant Ambush Protected vehicles to 
provide improved protection for U.S. forces.
                        Revised FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                              Procurement

                    AIRCRAFT PROCUREMENT, AIR FORCE

FY 2008 Budget Appendix Page: 1158
FY 2007 Pending Request: $2,649,336,000
Proposed Revision: -$923,000,000
Revised Request: $1,726,336,000

    (In the appropriations language under the above heading, 
delete ``$2,649,336,000'' and substitute $1,726,336,000.)
    This amendment would reduce the pending request by a total 
of $923.0 million. Specifically, the amendment would remove 
$388.0 million for five C-130J aircraft, $146.0 million for one 
CV-22 aircraft, and $389.0 million for two Joint Strike Fighter 
aircraft to finance higher priority emerging Global War on 
Terror needs.
                        Revised FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                         Military Construction

                      MILITARY CONSTRUCTION, ARMY

FY 2008 Budget Appendix Page: 1161
FY 2007 Pending Request: $1,381,290,000
Proposed Revision: -$92,000,000
Revised Request: $1,289,290,000

    (In the appropriations language under the above heading, 
delete ``$1,381,290,000'' and substitute $1,289,290,000.)
    This amendment would reduce the pending request by $92.0 
million. Specifically, the amendment would remove funds for the 
following projects to finance emerging higher-priority Global 
War on Terror needs:

------------------------------------------------------------------------
              Project                       Location           Amount
------------------------------------------------------------------------
Consolidated Compound..............  Kabul, Afghanistan...   $25,600,000
Combat Air Ramp....................  Bagram, Afghanistan..    10,800,000
Strategic Air Ramp.................  Bagram, Afghanistan..    17,800,000
Ammunition Storage Facility........  Balad, Iraq..........    22,1OO,OOO
Airfield Over-Run..................  Balad, Iraq..........    15,700,000
                                                           -------------
    Total..........................  .....................    92,000,000
------------------------------------------------------------------------

                        Revised FY 2007 Proposal

                         DEPARTMENT OF DEFENSE

                         Military Construction

              MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

FY 2008 Budget Appendix Page: 1161
FY 2007 Pending Request: $412,500,000
Proposed Revision: -$22,000,000
Revised Request: $390,500,000

    (In the appropriations language under the above heading, 
delete ``$412,500,000'' and substitute $390,500,000.)
    This amendment would reduce the pending request by $22.0 
million. Specifically, the amendment would remove funding for 
the following project to finance higher priority emerging 
Global War on Terror needs:

------------------------------------------------------------------------
              Project                       Location           Amount
------------------------------------------------------------------------
Diesel Generator Facility..........  Guantanamo Bay, Cuba.   $22,OOO,OOO
------------------------------------------------------------------------

                       FY 2007 General Provisions

  New General Provisions under the heading, ``Department of Defense''

    Sec. ___. From funds made available in this title for the 
Department of Defense, not to exceed $71,500,000 may be used, 
notwithstanding any other provision of law, to provide 
equipment, supplies, and training for the Pakistan Frontier 
Corps to enhance the ability of those forces to conduct 
counterterrorist operations along the Pakistan-Afghanistan 
border.
    This provision would allow DOD to provide funds to finance 
the Pakistani Frontier Corps.
    Sec. ___. From funds made available for the ``Iraq Security 
Forces Fund'' for fiscal year 2007, not to exceed $155,500,000 
may be used, notwithstanding any other provision of law, to 
provide assistance to the Government of Iraq to support the 
disarmament, demobilization, and reintegration of militias and 
illegal armed groups.
    This proposal would specify that of the funds requested for 
the Iraq Security Forces Fund (ISFF), $155.5 million may be 
used to assist Iraq in the disarmament, demobilization, and 
reintegration of militias and illegal armed groups. This 
authority is necessary to help eliminate illegal armed groups 
or militias by returning former members to a productive, 
peaceful role in Iraqi society. Providing authority to use ISFF 
funds would enable using Iraqi Security Forces to provide 
security at disarmament locations, destruction of weapons, and 
other security-related missions at 22 demobilization and 
demilitarization sites.
    Sec. ___. Funds made available in this title to the 
Department of Defense for the purchase of heavy and light 
armored vehicles for force protection purposes may be used for 
such purchase, up to a limit of $250,000 per vehicle, 
notwithstanding other limitations applicable to the purchase of 
passenger carrying vehicles.
    This provision would allow the Department to purchase 
necessary vehicles to protect the forces deployed in theater.
Revised General Provisions under the heading, ``Department of Defense''

    The second General Provision under the heading, 
``Department of Defense,'' is amended to read as follows:
    Sec. ___. Section 8005 of the Department of Defense 
Appropriations Act, 2007 (Public Law 109-289; 120 Stat. 1257), 
is amended by striking ``$4,500,000,000'' and inserting 
[``$8,000,000,000''].
    This provision would provide the Department with increased 
flexibility in reallocating base resources in the future. Due 
to an acceleration of mission critical activities, such as the 
training of Iraqi Security Forces and the activities of the 
Explosive Device Defeat Task Force, the Department of Defense 
will need to reallocate funds to continue operations and 
address needs identified by our commanders in a timely way.

                                  
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