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[House Report 106-125]
[From the U.S. Government Publishing Office]

106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    106-125
_______________________________________________________________________
 
 MAKING EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR MILITARY OPERATIONS, 
REFUGEE RELIEF, AND HUMANITARIAN ASSISTANCE RELATING TO THE CONFLICT IN 
 KOSOVO, AND FOR MILITARY OPERATIONS IN SOUTHWEST ASIA FOR THE FISCAL 
         YEAR ENDING SEPTEMBER 30, 1999, AND FOR OTHER PURPOSES

                                _______
                                

  May 4, 1999.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________

 Mr. Young of Florida, from the Committee on Appropriations, submitted 
                             the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 1664]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making emergency 
supplemental appropriations for military operations, refugee 
assistance, and humanitarian assistance relating to the 
conflict in Kosovo, and for military operations in Southwest 
Asia for the fiscal year ending September 30, 1999, and for 
other purposes.

                            Bill Highlights

    The bill accompanying this report provides $12,947,495,000 
to respond to the unfunded needs relating to the conflict in 
Kosovo and Operation Desert Fox as well as other urgent high 
priority military readiness matters. It provides $70,500,000 
for emergency diplomatic operations and security; $566,000,000 
for international economic, refugee, and disaster assistance; 
$9,401,569,000 for military personnel and equipment 
requirements; $1,838,426,000 for pay and retirement increases; 
and $1,071,000,000 for emergency military construction 
requirements.

                               CHAPTER 1

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs

                    diplomatic and consular programs

    The Committee recommends $17,071,000, to remain available 
until expended, as an emergency appropriation. This amount 
provides for the costs of diplomatic efforts related to the 
Kosovo crisis, including the costs of shutting down embassy 
operations in Belgrade and enhancing security at posts in the 
region, as requested.

           security and maintenance of united states missions

    The Committee recommends a total of $50,500,000, to remain 
available until expended, as an emergency appropriation. Of 
this amount, $5,000,000 is for the costs of security upgrades 
for post and housing facilities in the region, as requested.
    An additional $45,500,000 is provided above the request, 
and release of any portion of this funding is contingent upon a 
Presidential emergency designation. Of this amount, $36,000,000 
is for costs of site acquisition, design and construction of an 
additional secure embassy facility in Tirana, Albania. Embassy 
Tirana is a hub of U.S. Government operations in the region, 
and will serve an increasingly important role in supporting the 
military and diplomatic objectives of the U.S. Government and 
any subsequent peace process. The remaining $9,500,000 in this 
account is provided to make advance payment for the costs of 
repairing damage to post facilities resulting from civil unrest 
related to the Kosovo conflict. The Committee expects that host 
governments will be held accountable for such damages, and 
urges the Department to vigorously pursue full reimbursement. 
The Committee directs the Department to use these 
reimbursements and any remaining balance to fund a Marine 
Security Guard quarters in Tirana.

           emergencies in the diplomatic and consular service

    The Committee recommends $2,929,000, to remain available 
until expended, as an emergency appropriation. This amount 
provides for the costs of evacuating post personnel and 
dependents as a result of events related to the Kosovo 
conflict, as requested. Language is included, as requested, 
transferring $500,000 to the Peace Corps and $450,000 to the 
U.S. Information Agency for the costs of evacuating personnel 
and dependents of those agencies.

                               CHAPTER 2

                    DEPARTMENT OF DEFENSE--MILITARY

    The President requested $5,458,069,000 in emergency 
supplemental appropriations for the Department of Defense (DoD) 
to finance the unbudgeted personnel, operations, and equipment 
replacement and drawdown costs associated with fiscal year 1999 
operations in Southwest Asia (Operations Desert Thunder, Desert 
Fox, and Enhanced Northern and Southern Watch) and those 
operations concerning Kosovo (including Operations Allied Force 
and Allied Harbour, respectively NATO's ongoing military and 
humanitarian operations in the Balkans). Of this amount, 
$453,339,000 is for operations and the cost of munitions 
expended in Southwest Asia and $5,004,730,000 is for Kosovo 
operations and munitions replacement. The Committee notes that 
the Administration's estimates for Kosovo are premised on 
continued fiscal year 1999 operations at the current, planned 
level with the currently approved forces.
    The Committee recommends approving the full amount of the 
President's request (although it has realigned some funding to 
the proper appropriations accounts). The Committee also 
recommends an additional $461,800,000 for munitions, based on 
potential Operation Allied Force requirements identified by the 
military services, and $400,000,000 only for a new operational 
enhancements rapid response account, intended to support 
specific requests from U.S. regional commanders, for the rapid 
fielding and support of equipment needed for Operation Allied 
Force or to provide substitute capabilities in other theaters 
to replace assets diverted to this operation.
    Further, the Committee recommends an additional 
$3,081,700,000 to address existing and urgent shortfalls in key 
readiness categories (spare parts, depot maintenance of 
equipment, recruiting of military personnel, training and 
operational tempo support, and base operations). These 
represent unfunded requirements identified by the military 
services prior to the onset of Operation Allied Force, needs 
which will certainly be exacerbated by the operations against 
the Federal Republic of Yugoslavia. The Committee believes 
these demands must be addressed now, as they are directly 
related to the immediate capability of U.S. forces to meet 
their global commitments. The Committee notes there are many 
other unfunded requirements confronting the Department of 
Defense, not only affecting immediate and near-term 
preparedness but also long-term readiness (particularly in the 
weapons modernization accounts). The Committee expresses its 
determination to address these additional shortfalls as it 
develops its fiscal year 2000 appropriations bills.
    Finally, the Committee recommends $1,838,426,000 for the 
military personnel accounts, only for increases in military 
basic pay, targeted pay increases against certain grades, and 
for reform of the military retirement system. The obligation of 
these funds would be subject to the enactment of subsequent 
authorizing legislation and the designation of the funds as an 
emergency appropriation by the President.
    The following table summarizes the appropriations provided 
in this chapter of the bill.

                        [In thousands of dollars]
------------------------------------------------------------------------
                                           Supplemental      Committee
                                              request     recommendation
------------------------------------------------------------------------
Military Personnel:
    Army................................           2,920           2,920
    Navy................................           7,660           7,660
    Marine Corps........................           1,586           1,586
    Air Force...........................           4,303           4,303
                                         -------------------------------
      Total.............................          16,469          16,469
                                         ===============================
Overseas Contingency Operations Transfer
 Fund:
    Overseas Contingency Operations            4,591,600       3,907,300
     Transfer Fund (Emergency)..........
    Readiness/Munitions (Contingent)....         850,000       1,311,800
                                         -------------------------------
      Total.............................       5,441,600       5,219,100
                                         ===============================
Procurement:
    Weapons Procurement, Navy...........              --         431,100
    Aircraft Procurement, Air Force.....              --          40,000
    Missile Procurement, Air Force......              --         178,200
    Procurement of Ammunition, Air Force              --          35,000
                                         -------------------------------
      Total.............................                         684,300
                                         ===============================
Operational Rapid Response Transfer Fund              --         400,000
Sec. 207. (Spare Parts).................              --       1,339,200
Sec. 208. (Depot Maintenance)...........              --         927,300
Sec. 209. (Recruiting)..................              --         156,400
Sec. 210. (Readiness Training/OPTEMPO)..              --         307,300
Sec. 211. (Base Operations).............              --         351,500
Sec. 212. (Pay and Retirement)..........              --       1,838,426
                                         ===============================
      Grand total.......................       5,458,069      11,239,995
------------------------------------------------------------------------

                         Reporting Requirements

    The Committee recognizes that the specific budget estimates 
underlying the supplemental request for Kosovo operations may 
require adjustments due to the evolving nature of the air 
campaign, changes in deployment schedules and operational 
tempo, and other requirements associated with current 
operations and currently planned forces which were not 
identified at the time the supplemental request was developed. 
Accordingly, the Committee understands the need for some 
flexibility at this time and believes the funding and 
authorities provided in the Committee bill give the DoD the 
ability to make such adjustments as required. The Committee 
expects the Department to use these funds and authorities 
judiciously, with particular care given to ensure that other 
important, ongoing DoD activities, especially those relating to 
personnel, readiness, and important quality of life programs 
such as the Defense Health Program, are not adversely affected 
by the conduct of Operation Allied Force.
    The Committee directs the Secretary of Defense to submit a 
monthly report to the House and Senate Committees on 
Appropriations which provides a detailed description of 
Department of Defense obligations in support of operations in 
and around Kosovo and in Southwest Asia. This report shall 
indicate the cost of each operation for each affected 
appropriation account (including those accounts to which funds 
are transferred from the Overseas Contingency Operations 
Transfer Fund). For the acquisition accounts, the report should 
be provided at the R-1/P-1 level of detail. The first such 
report should be provided no later than May 31, 1999. In 
addition, language has been included under the Overseas 
Contingency Operations Transfer Fund which allows the transfer 
of funds to military construction. The Undersecretary of 
Defense (Comptroller) is directed to notify the Committee on 
Appropriations of any such transfers and the individual 
projects to be provided.

                           Military Personnel

    The supplemental budget request includes $16,469,000 for 
special pays and allowances for military personnel deployed to 
Southwest Asia in support of Operations Desert Thunder, Desert 
Fox, and Enhanced Northern and Southern Watch. In addition, the 
request includes $439,400,000 for personnel costs related to 
operations in and around Kosovo. The Committee recommends the 
budget request. Funding relating to Kosovo is provided in the 
Overseas Contingency Operations Transfer Fund as requested by 
the President.

                       Operation and Maintenance

    The supplemental budget request includes $259,900,000 for 
operations in and around Southwest Asia and $3,210,000,000 in 
support of NATO operations in Kosovo. All Operation and 
Maintenance funding for these operations is included in the 
Overseas Contingency Operations Transfer Fund. The Committee 
recommends the budget request.

             Overseas Contingency Operations Transfer Fund

    The President requested $5,441,600,000 for this account, 
along with authority to transfer funds as needed to a variety 
of appropriations accounts to meet estimated requirements. 
Included in this total is $684,300,000 of procurement funding 
requested to replace certain high value munitions expended 
during Operation Desert Fox and Operation Allied Force, to 
include air- and sea-launched cruise missiles, Joint Direct 
Attack Munitions, and decoys (there is also $13,600,000 in 
Operation and Maintenance funding requested to support these 
purchases). The request also includes a total of $850,000,000 
of contingent emergency appropriations to meet expected 
munitions and readiness-related Kosovo expenses, funds which 
would only be available after the subsequent submission of a 
budget request by the President, with only those funds 
requested being made available.
    The Committee recommends a total of $5,219,100,000 for the 
Overseas Contingency Operations Transfer Fund. This reflects 
the following adjustments to the supplemental budget request:
          --a deletion of $684,300,000 for procurement of 
        specific munitions as described above, which the 
        Committee recommends funding in the traditional 
        appropriations accounts as described elsewhere in this 
        report; and
          --an addition of $461,800,000 of contingent emergency 
        appropriations, based on potential Operation Allied 
        Force munition requirements identified by the military 
        services, premised on continued fiscal year 1999 
        operations at the current, planned level with the 
        currently approved forces.

              Contingency Operation Munitions Requirements

    As discussed above, the supplemental budget request for the 
Overseas Contingency Operations Transfer Fund includes 
$850,000,000 in contingent emergency appropriations, including 
an estimate of $700,000,000 to replace munitions expended in 
Operation Allied Force and in Southwest Asia in order to 
maintain adequate inventories for future operations. The 
Committee recognizes that the request for contingent emergency 
appropriations reflects the reality that additional funding 
will be required to replace munitions, but that the exact 
weapons types, quantities, and cost remain unknown at this time 
as operations continue. Use of the contingent designation thus 
ensures that funds will only be made available following a 
specific determination of munitions needs, and only after 
submission of a subsequent budget request by the President. The 
Committee believes that given this degree of control, it is 
prudent to provide a larger amount for potential munitions 
replacement, and therefore recommends $1,161,800,000, an 
increase of $461,800,000. The Committee makes this 
recommendation based on requirements specifically identified by 
the military services which may be required to support 
continued fiscal year 1999 operations at the current planned 
level with the currently approved forces, as follows:

Weapons Procurement, Navy:
    SLAM-ER.............................................     $40,000,000
    HARM Modifications..................................      81,000,000
    JSOW (baseline variant).............................      11,000,000
Procurement of Ammunition, Navy and Marine Corps:
    Laser Guided Bombs..................................     306,800,000
    Expendables.........................................      16,300,000
    Fuzes...............................................      10,000,000
Missile Procurement, Army:
    Army Tactical Missile System........................     135,000,000
Missile Procurement, Air Force:
    AGM-130 Acceleration................................         500,000
    Maverick Modifications..............................      28,100,000
    HARM Modifications..................................     147,300,000
Procurement of Ammunition, Air Force:
    GBU-15 Modifications................................      26,500,000
    Laser Guided Bombs..................................     165,700,000
    Combined Effect Munitions...........................      23,100,000
    Fuzes...............................................      10,000,000
    Training Munitions..................................     146,800,000
    General Purpose Bombs...............................      13,000,000
    Flares and Chaff....................................         700,000

    The Committee restates its intent that, at this time, the 
DoD has the flexibility to reallocate these funds as needed to 
meet emergent warfighting needs. However, should it be 
determined that funds are required to support programs other 
than those listed above, the Undersecretary of Defense 
(Comptroller) shall notify the House and Senate Committees on 
Appropriations in writing of any expected change, and the 
reason why, prior to any obligation of funds. In addition, the 
provision of these funds does not obviate the requirement for 
the Department to notify the Congress in advance of proposed 
new start programs.

                          Classified Programs

    The Committee's recommendations regarding classified 
programs are summarized in a classified annex accompanying this 
report.

                              Procurement

    As discussed earlier in this report, the Committee bill 
recommends shifting $684,300,000 in procurement funding 
allocated in the supplemental request for Tomahawk Land-Attack 
Missile upgrades, Conventional Air-Launched Cruise Missiles 
(CALCM), Joint Direct Attack Munitions, and towed decoys from 
the Overseas Contingency Operations Transfer Fund, as proposed 
in the request, to specific appropriations accounts, as 
described below.

                       Weapons Procurement, Navy

    The supplemental budget request includes $431,100,000 for 
Tomahawk upgrades. The Committee recommendation provides this 
amount. (The Committee also approves an additional $13,600,000 
in operation and maintenance funding associated with Tomahawk 
recertification, but has provided this funding in the Overseas 
Contingency Operations Transfer Fund, as proposed in the 
supplemental budget request.)

                    Aircraft Procurement, Air Force

    The supplemental budget request includes $40,000,000 for 
ALE-50 towed decoys. The Committee recommendation provides this 
amount.

                     Missile Procurement, Air Force

    The supplemental budget request includes $178,200,000 
associated with replacement of Conventional Air-Launched Cruise 
Missiles (CALCM). The Committee recommendation provides this 
amount.

                  Procurement of Ammunition, Air Force

    The supplemental budget request includes $35,000,000 for 
additional Joint Direct Attack Munitions (JDAMs). The Committee 
recommendation provides this amount.

         Congressional Oversight of Weapons System Performance

    To conduct its oversight and funding responsibilities, the 
Committee must receive accurate and timely information on 
weapons system performance in military operations. The military 
services, the Office of the Secretary of Defense, and the Joint 
Staff are all reminded of their obligation to be responsive to 
Congress' responsibilities and prerogatives in this regard, and 
their responsibility to comply on a prompt basis to Committee 
inquiries regarding weapons system performance (including 
failures, battle damage assessment, and targeting errors).

                Operational Rapid Response Transfer Fund

    The Committee recommends including a new appropriations 
account (Operational Rapid Response Transfer Fund) to enable 
the accelerated fielding of needed capabilities to U.S. forces 
engaged in, or in support of, Operation Allied Force; as well 
as to provide a potential means to rapidly deploy substitute or 
replacement capabilities to other regional commands (such as 
U.S. Central Command or U.S. Pacific Command) who have had 
assets diverted from their theaters to support Operation Allied 
Force.
    During Operations Desert Shield/Desert Storm, the 
Department of Defense accelerated the planned fielding of 
several weapons systems to meet warfighting requirements 
identified by the regional commander-in-chief (CINC). Among 
these was the rapid fielding of the PAC-2 anti-tactical 
ballistic missile variant of the PATRIOT surface-to-air missile 
system (originally developed to engage aircraft, not ballistic 
missiles), which was still in advanced development at the time. 
Without this capability, U.S. and allied nations during the 
Gulf War would have had no defense against the Iraqi SCUD 
tactical ballistic missile. The Committee notes that other 
systems, including then-advanced precision-guided ``bunker 
busting'' munitions, were conceived, developed, and deployed 
``from scratch'' during the timeframe of Operations Desert 
Shield/Desert Storm.
    At present, there are several broad, high-leverage 
operational categories which U.S. assets are in short supply or 
deficient, but which could be used to great effect if assets 
were made available in sufficient numbers for Operation Allied 
Force. These include (but are not limited to) tactical airborne 
electronic warfare and surveillance; tactical imagery and 
signals intelligence reconnaissance (particularly systems which 
can loiter over engagement areas such as unmanned aerial 
vehicles) and related communications datalinks which can 
rapidly disseminate information; and tactical communications 
systems in general.
    A related, but competing challenge is that, in order to 
meet the demands of Operation Allied Force, many U.S. military 
assets have been deployed to U.S. European Command. However, in 
many instances this has diverted forces and capabilities from 
other regional commands which have their own daunting set of 
operational requirements (for example, U.S. Central Command and 
Iraq, or U.S. Pacific Command and North Korea). In testimony 
before the Committee on April 21, 1999, the Chairman of the 
Joint Chiefs of Staff characterized Operation Allied Force as 
``a third MTW (major theater of war) where aviation assets are 
concerned''. Clearly, carrying out Operation Allied Force with 
the current ``two MTW'' force structure poses many risks at 
many levels for U.S. planners and potentially for U.S. forces 
in the field.
    The Committee recognizes that the current campaign against 
the Federal Republic of Yugoslavia is of uncertain duration. 
Nevertheless, it believes a dedicated, ``quick response'' 
appropriation, expressly intended to accelerate the fielding of 
systems, subsystems, support equipment or capabilities needed 
to meet the many operational challenges confronting U.S. 
European Command and other regional CINCs, could prove to be a 
valuable resource in fielding badly needed capabilities in the 
immediate future.
    Therefore, the Committee recommends $400,000,000, 
designated as a contingent emergency appropriation, only for 
the Operational Rapid Response Transfer Fund. These funds will 
only be available if designated as an emergency by the 
President, and may be used only to rapidly develop, deploy or 
field equipment or systems in response to specific requests 
made by U.S. regional commands and only if the obligation of 
funds is specifically approved by the Secretary of Defense or 
his designee. The Committee does not intend that any of these 
funds be used for systems or efforts which cannot be fielded 
expeditiously, nor to procure items which can and should be 
more appropriately budgeted in annual appropriations requests. 
The Committee's sole intent is to ensure that the Department of 
Defense and our warfighting CINCs, during this time of strained 
resources, be able to respond in innovative and rapid fashion 
to the operational challenges posed by Operation Allied Force.

                     Urgent Readiness Requirements

    Spare Parts Shortfalls.--The Committee recommends a general 
provision (Section 207) which appropriates $1,339,200,000, 
designated as contingent emergency appropriations, only for the 
provision of spare and repair parts and associated logistical 
support necessary to improve the operational status of 
Department of Defense weapons systems. For years the Committee 
has expressed its concern about the steady decline in mission 
capable rates of weapons systems, particularly Navy and Air 
Force aircraft. This has been driven largely in recent years by 
a combination of aging equipment, sustained high rates of 
operational tempo, and a shortage of spare parts. Despite 
having added hundreds of millions of dollars for spare parts in 
recent defense appropriations bills over the amounts requested 
in Administration budget submissions, the Committee is dismayed 
to observe that the services still suffer from large unfunded 
shortfalls in this area. These problems will clearly worsen as 
a result of Operation Allied Force as a result of the large 
number of aircraft deployed, at high rates of usage. 
Accordingly, the Committee provides this funding in order to 
preclude any additional degradation in readiness.
    Depot Maintenance.--The Committee recommends a general 
provision (Section 208) which provides $927,300,000, designated 
as contingent emergency appropriations, only for depot level 
maintenance and repair requirements of the Department of 
Defense. Similar to the problems discussed above in connection 
with spare parts, despite the Committee's having provided 
robust funding over proposed Administration budgets in recent 
years for depot maintenance, the services continue to identify 
substantial existing shortfalls in this area which will only be 
exacerbated by Operation Allied Force unless they are addressed 
in this bill.
    Recruiting and Advertising.--The Committee recommends a 
general provision (Section 209) which provides $156,400,000, 
designated as contingent emergency appropriations, only for 
Department of Defense recruiting programs based on shortfalls 
identified in the fiscal year 1999 program. With the exception 
of the Marine Corps, each of the services is currently 
experiencing recruiting difficulties which, combined with 
growing retention problems, have led to undermanning of units 
including deployed forces, as well as proposals to begin 
reducing quality standards for recruits. The appropriations 
provided in this section will fully fund an increased 
recruiting program, meeting shortfalls as defined by the 
military services in data provided the Committee.
    Readiness Training and Operations Tempo.--The Committee 
recommends a general provision (Section 210) which provides 
$307,300,000, designated as contingent emergency 
appropriations, only for readiness related training and 
operations tempo requirements of the Department of Defense. The 
Committee notes with concern that the level of current 
deployment activity coupled with the need to fund long-overdue 
infrastructure costs has resulted in shortfalls in the military 
services' training programs. The funding provided in this 
section is essential in order to alleviate pressure on the 
military services' readiness-related training programs and 
ensure that U.S. forces are trained to meet required readiness 
levels.
    Base Operations Support.--The Committee recommends a 
general provision (Section 211) which provides $351,500,000, 
designated as contingent emergency appropriations, only for 
base operations support requirements of the Department of 
Defense. The Committee notes that DoD has consistently 
underfunded base operations costs associated with facilities 
operations and maintenance, range operations and maintenance, 
utilities services, and a host of other critical infrastructure 
costs. This has created pressure on the training and other 
readiness related accounts, and has in recent years repeatedly 
resulted in the diversion of funds provided by the Congress 
from readiness accounts to these non-discretionary 
infrastructure costs. The appropriations in this section are 
needed to meet base operations shortfalls identified in service 
data provided to the Committee, which will not only support the 
Department's base infrastructure but also relieve pressure on 
the readiness accounts and ensure that readiness related 
activities are conducted at levels funded by the Congress.

                      Military Pay and Retirement

    The Committee recommends a general provision (Section 212) 
which provides $1,838,426,000 for the military personnel 
accounts, designated as contingent emergency appropriations, 
only for increases in military basic pay, targeted pay 
increases against certain grades, and for reform of the 
military retirement system. In his fiscal year 2000 budget 
submission, the President has proposed a military benefits 
package which includes a proposed increase in basic pay, 
targeted pay increases against certain grades (so-called ``pay 
table reform''), and the repeal of the 1986 Military Retirement 
Reform Act (commonly referred to as ``REDUX''). The Committee 
notes that the Senate has already passed an authorization bill 
dealing with these issues (S. 4), and that the House Armed 
Services Committee will soon address them in its consideration 
of the National Defense Authorization Act.
    The Committee is confident that the Congress will enact a 
comprehensive military pay and retirement package, and 
therefore, has included $1,838,426,000 in contingent emergency 
appropriations for a fiscal year 2000 increase in the military 
personnel accounts resulting from increased levels of military 
base pay, pay table reform, and repeal of the REDUX retirement 
system. The Committee believes that doing so will send a 
positive signal to our service menand women, not only those 
engaged in Operation Allied Force but in difficult missions around the 
world, that Congress is committed to providing an increase in military 
compensation and reforming the military pay and retirement system, and 
as a sign of that commitment, is providing funding to support these 
objectives in this bill. However, since at this time the President and 
the Senate have proposed substantively different approaches to these 
issues, and the House Armed Services Committee has yet to make its 
recommendations to the House, release of these funds is conditioned 
upon the enactment of authorizing legislation as well as the funds 
being designated as emergency appropriations by the President.

                        Nutrition and Food Needs

    The Committee recognizes that with the significant 
deployment of U.S. forces in the Balkan region, along with the 
increasing refugee camp population, nutrition and food needs 
are paramount international concerns. The Committee urges the 
Department of Defense to work with the Department of 
Agriculture to use all appropriate acquisition authorities to 
purchase food in ways that meet the humanitarian and military 
needs attendant to the Balkan engagement, and to do so in ways 
that also benefit U.S. farmers who are experiencing record low 
level prices for their products.

                    GENERAL PROVISIONS--THIS CHAPTER

    The Committee bill includes section 201, as requested in 
the supplemental request, which provides for an increase in the 
fiscal year 1999 transfer authority available to the Department 
of Defense.
    The Committee bill includes section 202, as requested in 
the supplemental request, which provides that $10,000,000 of 
the funds in the Committee bill may be available to the common 
funded budgets of NATO.
    The Committee bill includes section 203, as requested in 
the supplemental request, which provides authorization for 
funds in the Committee bill, or funds made available by the 
transfer of funds in the Committee bill, for intelligence 
activities.
    The Committee bill includes section 204, as requested in 
the supplemental request, which extends until June 30, 1999 
special authorities for contracts awarded or modified for the 
Joint Direct Attack Munition (JDAM) program.
    The Committee bill includes section 205, which requests the 
President to seek an equitable reimbursement from the North 
Atlantic Treaty Organization (NATO), member nations of NATO, 
and other appropriate organizations and nations for the costs 
incurred by the United States government in connection with 
Operation Allied Force. The Committee recognizes the valuable 
and important contributions made by our NATO allies, as well as 
other nations, in the conduct of Operation Allied Force and in 
humanitarian activities relating to Kosovo. However, in 
recognition of the disproportionate share of the military 
operations being currently carried out by U.S. forces, the 
Committee believes the President should seek an equitable 
burdensharing agreement with NATO members and other nations. 
For example, with respect to NATO members, in all likelihood 
the financial costs to the U.S. at present exceed the American 
contribution to NATO's common-funded budgets.
    Therefore, pursuant to section 205, the President is to 
seek a more equitable sharing of the financial costs of 
Operation Allied Force among NATO members and other countries. 
For purposes of this provision, the term ``costs incurred by 
the United States government in connection with Operation 
Allied Force'' shall also include the costs of refugee, 
humanitarian, and other assistance funded through non-military 
accounts, including assistance to the front line states. 
Further, this section requires the President to submit to 
Congress, not later than September 30, 1999, a report on all 
burdensharing measures taken by the President; the amount of 
reimbursement received to date from each organization and 
nation, including a description of any commitments made by any 
such organization or nation to provide reimbursement; and in 
the case of an organization or nation that has refused to 
provide, or to commit to provide, reimbursement, an explanation 
of the reasons therefor.
    The Committee bill includes section 206, which directs that 
within thirty days of enactment into law of the Committee bill, 
the President shall transmit to Congress a report, in both 
classified and unclassified format, on current United States 
government operations involving Kosovo, including:
          (1) A statement of the national security objectives 
        involved in U.S. participation in Operation Allied 
        Force;
          (2) An accounting of all current active duty 
        personnel assigned to support Operation Allied Force 
        and related humanitarian operations around Kosovo to 
        include total number, service component and area of 
        deployment (such accounting should also include total 
        numbers of personnel from other NATO countries 
        participating in the action);
          (3) Additional planned deployment of active duty 
        units in the European Command area of operations to 
        support Operation Allied Force, between the date of 
        enactment of this Act and the end of fiscal year 1999;
          (4) Additional planned Reserve component 
        mobilization, including specific units to be called up 
        between the date of enactment of this Act and the end 
        of fiscal year 1999, to support Operation Allied Force;
          (5) An accounting by the Joint Chiefs of Staff on the 
        transfer of personnel and materiel from other regional 
        commands to the United States European Command to 
        support Operation Allied Force and related humanitarian 
        operations around Kosovo, and an assessment by the 
        Joint Chiefs of Staff of the impact any such loss of 
        assets has had on the warfighting capabilities and 
        deterrence value of these other commands;
          (6) Levels of humanitarian aid provided to the 
        displaced Kosovar community from the United States, 
        NATO member nations, and other nations (figures should 
        be provided by country and the type of assistance 
        provided whether financial or in-kind); and
          (7) Any significant revisions to the total cost 
        estimate for the deployment of United States forces 
        involved in Operation Allied Force through the end of 
        fiscal year 1999.
    The Committee bill includes section 207, which appropriates 
$1,339,200,000, designated as contingent emergency 
appropriations, only for urgent shortfalls in Department of 
Defense spare and repair parts and associated logistical 
support, as described earlier in this report.
    The Committee bill includes section 208, which appropriates 
$927,300,000, designated as contingent emergency 
appropriations, only for urgent shortfalls in the depot level 
maintenance and repair requirements of the Department of 
Defense, as described earlier in this report.
    The Committee bill includes section 209, which appropriates 
$156,400,000, designated as contingent emergency 
appropriations, only for urgent shortfalls in Department of 
Defense recruiting programs, as described earlier in this 
report.
    The Committee bill includes section 210, which appropriates 
$307,300,000, designated as contingent emergency 
appropriations, only for urgent readiness related training and 
operations tempo requirements of the Department of Defense, as 
described earlier in this report.
    The Committee bill includes section 211, which appropriates 
$351,500,000, designated as contingent emergency 
appropriations, only for urgent base operations support 
requirements of the Department of Defense, as described earlier 
in this report.
    The Committee bill includes section 212, which appropriates 
$1,838,426,000, designated as contingent emergency 
appropriations, for the military personnel accounts, only for 
an increase in military basic pay, targeted pay increases 
against certain grades, and for reform of the military 
retirement system, as described earlier in this report.

                               CHAPTER 3

                Summary of Recommendation--This Chapter

    On April 19, 1999, the President transmitted to Congress an 
emergency supplemental funding request, which includes 
$566,000,000 for refugee, disaster, and economic assistance to 
respond to the humanitarian and economic crisis in the Balkans.
    The Committee recognizes that refugees fleeing Kosovo 
continue to burden neighboring nations. As of April 22, more 
than 359,000 refugees have fled to Albania, 132,000 have 
arrived in Macedonia, 68,000 have entered Montenegro, and 
32,000 have come into Bosnia. The State Department estimates 
the number of refugees could grow to more than 900,000, and 
international aid groups estimate that this total could rise 
much higher in the coming months if the conflict in the Balkans 
continues. Given these projections, the Committee believes the 
President's request for disaster and refugee assistance is 
inadequate. Therefore, the Committee has provided higher 
funding levels than the Administration requested for 
supplemental disaster and refugee assistance. These increases 
should provide the resources necessary to meet emergency needs 
for the remainder of the current fiscal year.
    These increases have been offset with a reduction in the 
request for assistance through the account for Eastern Europe.
    None of the funds appropriated herein are to be used to 
implement a long-term, regional program of development or 
reconstruction in Southeastern Europe. That is not the purpose 
of this Emergency Supplemental Appropriations Act. As the 
President's budget request clearly states: ``the supplementals 
provide FY 1999 funding to plan the reconstruction efforts in a 
post-conflict Kosovo, but would not fund the U.S. portion of a 
long-term reconstruction effort.''
    The refugee, SEED, and disaster assistance funds are 
appropriated for emergency support of refugees and displaced 
persons and the local communities directly affected by the 
influx of refugees. The Economic Support Funds are appropriated 
for short-term, emergency balance of payments support for the 
countries listed in the bill language.
    The Committee requests that the Administration keep it 
informed on a regular basis of refugee assistance and other 
funding commitments made by our NATO allies.

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

                  Agency for International Development

                   international disaster assistance

    The Committee is recommending $96,000,000 for an additional 
amount for International Disaster Assistance for fiscal year 
1999. The President requested $71,000,000. The Committee 
understands that this funding will ensure that AID's Office of 
Foreign Disaster Assistance will have the necessary resources 
to meet its worldwide commitments in fiscal year 1999, and to 
deal with the projections of possible refugee flows in the 
Balkans. These funds are to remain available until expended.

                  Other Bilateral Economic Assistance

                         economic support fund

    The Committee is recommending $105,000,000 for an 
additional amount for the Economic Support Fund as requested by 
the President. The Administration requested $100,000,000 of 
these funds to provide direct assistance to Albania, Bosnia, 
Bulgaria, Romania, Macedonia and Montenegro--the so-called 
front line states. The Committee notes that these front line 
nations have borne the brunt of the 700,000 refugees fleeing 
Kosovo and, even under the best of circumstances, these 
countries will be expected to deal with these refugees for many 
months. The conflict in the Balkans and the resultant refugee 
crisis have already created significant disruptions to normal 
commerce in the region and have increased economic hardship in 
these front line nations. This assistance is designed to help 
these governments meet balance of payments shortfalls and to 
partially offset costs of refugee assistance. The Committee 
strongly supports additional resources to support the 
democratic government of Montenegro.
    The Committee expects that up to $5,000,000 of these funds 
will be used to document war crimes and atrocities committed in 
Kosovo. These funds are to remain available for obligation 
until September 30, 2000. In addition, the Committee 
recommendation includes bill language waiving other provisions 
of law except section 533 of the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1999, for 
the purpose of obligating these funds. However, the requirement 
for a notification prior to obligation has been reduced from 15 
days to 5 days in order to provide the President with increased 
flexibility.

          assistance for eastern europe and the baltic states

    The Committee is recommending $75,000,000 for an additional 
amount for the account ``Assistance for Eastern Europe and the 
Baltic States''. The President requested $170,000,000 for this 
account. The Committee has provided up to $1,000,000 of these 
funds for administrative costs of AID. Funds appropriated under 
this account would be subject to the regular notification 
requirements of the Committees on Appropriations, and would 
remain available for obligation until September 30, 2000.
    The Committee has increased resources for other accounts in 
this bill to meet emergency needs in the Balkans. Therefore, 
the Committee is not in a position to provide the President's 
full request for this account due to the imperative to meet 
funding requirements for higher priority refugee and 
humanitarian assistance. In addition, the Committee is 
concerned that part of the request could be used to provide for 
long-term reconstruction programs in the Balkans. The Committee 
believes that the events in the region are changing so rapidly 
that it would be premature to consider additional long-term 
development programs at this time. Further, the Committee 
believes that European nations bear greater responsibility for 
the integration of these front line states into Europe's 
economy and for reconstruction programs in the region.

                          Department of State

                    migration and refugee assistance

    The Committee is recommending $195,000,000 for an 
additional amount for the Migration and Refugee Assistance 
account. The President requested $125,000,000. The Committee 
recommendation allows for not more than $500,000 from these 
supplemental funds for administrative expenses, and provides 
for the availability of funds through September 30, 2000.
    The Committee has been informed that funding for 
humanitarian assistance for refugees would face a significant 
shortfall if refugee levels continue to increase through the 
end of the fiscal year and into fiscal year 2000. As a result, 
the Committee has increased funding in this account and in the 
Disaster assistance account in order to ensure that adequate 
funds are available for refugee assistance--particularly if it 
becomes necessary to support large refugee populations through 
the winter. In order to fund these high priority activities, 
the Committee recommendation includes a reduction of 
$95,000,000 from the request for assistance for Eastern Europe.
    The massive outflow of refugees from Kosovo into 
surrounding territories has placed tremendous burdens on the 
surrounding governments. While these refugees have been 
generally well treated by host governments, the Committee is 
concerned about reports of the mistreatment of some Kosovar 
refugees. The continued and increased international funding for 
the care of these refugees will alleviate the burdens on host 
governments. The Committee urges that all governments respect 
the human rights of all refugees in this difficult situation.
    The Committee is deeply troubled by the use of a rape as a 
tool of war. There are widespread and credible reports that 
Serbian forces are targeting ethnic Albanian women for rape and 
using rape as a means of emptying communities. Many of the 
ethnic Albanian refugees have been the victims of rape, 
brutalization and other traumatic events. While the Committee 
understands that there are many pressing and immediate needs 
for shelter and food, it believes that psychological services 
for traumatized refugees, particularly women who have been 
raped, should not be neglected. The Committee urges the 
Administration to designate funds for those psychological 
services. In addition, the Committee believes the 
Administration needs to demonstrate leadership to ensure that 
rape is prosecuted as a war crime.

     united states emergency refugee and migration assistance fund

    The Committee is recommending $95,000,000 for an additional 
amount for the United States Emergency Refugee and Migration 
Assistance Fund, as requested by the President. These funds 
would be available until expended.

                    GENERAL PROVISION--THIS CHAPTER

    The Committee is recommending bill language requested by 
the President to provide that the value of commodities and 
services authorized by the President through March 31, 1999, 
drawn down pursuant to section 552(c)(2) of the Foreign 
Assistance Act of 1961 to support international relief efforts 
relating to the Kosovo conflict shall not be counted against 
the ceiling limitation of that section. This provision also 
provides that such assistance shall be made available 
notwithstanding any other provision of law.

                               CHAPTER 4

                         DEPARTMENT OF DEFENSE

                         Military Construction

     North Atlantic Treaty Organization Security Investment Program

    The Committee recommends $240,000,000, contingent on the 
Presidential declaration of an emergency, for the continued 
support of the North Atlantic Treaty Organization Security 
Investment Program.

             Overseas Contingency Operations Transfer Fund

    Language has been included under the ``Overseas Contingency 
Operations Transfer Fund'' which allows the transfer of funds 
to military construction. The Under Secretary of Defense 
(Comptroller) is directed to notify the Subcommittee on 
Military Construction of any such transfers and the individual 
projects to be provided.

                         military construction

    The Committee recommends a total of $831,000,000, 
contingent on the Presidential declaration of an emergency, for 
operations in Europe and Southwest Asia, for the following 
items:

------------------------------------------------------------------------
  Location/Account/Installation      Project title            Cost
------------------------------------------------------------------------
Bahrain Island:
    Navy:
        Southwest Asia Admin      BEQ (Security               24,550,000
         Support Unit.             Force).
        Southwest Asia Admin      BEQ (Transient)....         23,770,000
         Support Unit.
        Southwest Asia Admin      Operations Control          34,770,000
         Support Unit.             Center.
                                                      ------------------
          Subtotal, Bahrain       ...................         83,090,000
           Island.
                                                      ==================
Diego Garcia:
    Navy:
        Diego Garcia Naval        Aircraft                     8,150,000
         Support Facility.         Intermediate
                                   Maintenance
                                   Facility.
                                                      ------------------
          Subtotal, Diego Garcia  ...................          8,150,000
                                                      ==================
                                  ...................  .................
Germany:
    Army:
        Ansbach, Barton Barracks  Whole Barracks              21,000,000
                                   Complex Renewal.
        Bamberg Air Field.......  Whole Barracks               9,300,000
                                   Complex Renewal.
        Bamberg Air Field.......  Whole Barracks               8,200,000
                                   Complex Renewal.
        Bamberg, Warner Barracks  Whole Barracks               5,700,000
                                   Complex Renewal.
        Baumholder..............  Vehicle Maintenance         10,000,000
                                   Shop, Direct
                                   Support.
        Baumholder..............  Vehicle Maintenance         12,600,000
                                   Shop,
                                   Organizational.
        Baumholder..............  Vehicle Maintenance          9,600,000
                                   Shop, Organization.
        Baumholder..............  Vehicle Maintenance         10,400,000
                                   Shop,
                                   Organizational
                                   Addition.
        Grafenwoehr.............  Multipurpose Range          25,000,000
                                   Complex 118.
        Grafenwoehr.............  Multipurpose Range          23,000,000
                                   Complex 211.
        Hohenfels...............  Centralized Vehicle          7,600,000
                                   Wash Facility.
        Hohenfels...............  Objective                    8,600,000
                                   Instrumentation
                                   Building.
        Kaiserslautern..........  Vehicle Maintenance          9,000,000
                                   Shop,
                                   Organizational.
        Mannhein................  Organizational               7,600,000
                                   Vehicle Parking.
        Mannhein................  Vehicle Maintenance          9,300,000
                                   Shop,
                                   Organizational.
        Mannheim................  Vehicle Maintenance         11,400,000
                                   Shop,
                                   Organizational.
        Mannheim, Coleman         Whole Barracks               4,500,000
         Barracks.                 Complex Renewal.
        Schweinfurt.............  Centralized Vehicle          1,600,000
                                   Wash Facility.
        Schweinfurt.............  Close Combat                11,200,000
                                   Tactical Trainer.
        Schweinfurt.............  Vehicle Maintenance         12,000,000
                                   Shop, Direct
                                   Support.
        Schweinfurt.............  Vehicle Maintenance         20,000,000
                                   Shop,
                                   Organizational.
        Stuttgart...............  Deployment Storage           4,100,000
                                   Buildings.
        Stuttgart...............  Indoor Firing Range          3,000,000
        Stuttgart...............  USEUCOM                     10,800,000
                                   Communications
                                   Command Center.
        Vilseck.................  Non-Toe Maintenance          5,300,000
                                   Facility.
    Air Force:
        Ramstein Air Base.......  Aircraft Parts               3,800,000
                                   Storage Facility.
        Ramstein Air Base.......  CNS 3 Fire Stations         12,000,000
        Ramstein Air Base.......  Combat                      12,000,000
                                   Communications
                                   Squadron Complex.
        Ramstein Air Base.......  Contingency                  5,000,000
                                   Response Group
                                   Complex.
        Ramstein Air Base.......  C-130 Squadron               8,800,000
                                   Operations/AMU, 37
                                   AS.
        Ramstein Air Base.......  Reachback                   17,400,000
                                   Operations Support
                                   Center.
        Ramstein Air Base.......  Squadron Operations/         8,800,000
                                   AMU, 75 AS.
        Ramstein Air Base.......  Vehicle Maintenance          6,500,000
                                   Facility.
        Spangdahlem Air Base....  ACS Maintenance and         14,900,000
                                   Support Facilities.
        Spangdahlem Air Base....  CE Pavement/                 9,800,000
                                   Equipment Complex.
        Spangdahlem Air Base....  Mobility Processing          5,300,000
                                   Center.
        Spangdahlem Air Base....  Refueler                     2,600,000
                                   Maintenance
                                   Facility.
        Spangdahlem Air Base....  Squad Operations/           18,000,000
                                   AMU, 22/23 Flight
                                   Squadron.
                                                      ------------------
          Subtotal, Germany.....  ...................        385,700,000
                                                      ==================
Greece:
    Navy:
        Souda Bay, Crete Naval    Operational Support          6,380,000
         Support Activity.         Facilities.
                                                      ------------------
          Subtotal, Greece......  ...................          6,380,000
                                                      ==================
Italy:
    Navy:
        Naples Naval Support      Operational Support         26,750,000
         Activity.                 Facilities.
        Sigonella Naval Air       Base Level                   3,100,000
         Station.                  Communication
                                   Facility.
        Sigonella Naval Air       Base Operations             35,000,000
         Station.                  Support.
    Air Force:
        Aviano Air Base.........  Air Control                  3,900,000
                                   Squadron Warehouse.
        Aviano Air Base.........  Base Operations....          2.900,000
        Aviano Air Base.........  CNS Contingency             14,000,000
                                   Dorm (600 PNs).
        Aviano Air Base.........  Dormitory (120 PNs)          8,150,000
        Aviano Air Base.........  Indoor Firing Range          2,900,000
        Aviano Air Base.........  Radar Approach               3,700,000
                                   Control Facility.
        Aviano Air Base.........  Southside Ramp.....          7,000,000
        Aviano Air Base.........  Upgrade Airfield             4,000,000
                                   Lighting.
                                                      ------------------
          Subtotal, Italy.......  ...................        111,400,000
                                                      ==================
Portugal:
    Air Force:
        Lajes Field, Azores.....  Apron Security               1,800,000
                                   Lighting.
        Lajes Field, Azores.....  Transient Dormitory          9,000,000
    Defense-Wide:
        Lajes Field, Azores DESC  Replace Hydrant             13,000,000
                                   Fuel System.
                                                      ------------------
          Subtotal, Portugal....  ...................         23,800,000
                                                      ==================
Spain:
    Defense-Wide:
        Moron DESC..............  Replace Hydrant             15,200,000
                                   Fuel System.
                                                      ------------------
          Subtotal, Spain.......  ...................         15,200,000
                                                      ==================
Turkey:
    Air Force:
        Incirlik Air Base.......  Consolidated                 2,100,000
                                   Communications
                                   Facility.
        Incirlik Air Base.......  Force Protection:            3,000,000
                                   Perimeter
                                   Improvements.
        Incirlik Air Base.......  Indoor Firing Range          2,200,000
                                                      ------------------
          Subtotal, Turkey......  ...................          7,300,000
                                                      ==================
United Kingdom:
    Air Force:
        RAF Fairford............  CNS Contingency             13,000,000
                                   Dorm (576 PNs).
        RAF Feltwell............  Add/Alter CATM               3,100,000
                                   Facility.
        RAF Lakenheath..........  Add/Alter Main Fire          5,000,000
                                   Station/CNS Crash
                                   Station.
        RAF Lakenheath..........  Communications               5,200,000
                                   Facility.
        RAF Lakenheath..........  Consolidated                12,400,000
                                   Support Complex.
        RAF Lakenheath..........  Mobility Processing          1,500,000
                                   and Cargo Facility.
        RAF Lakenheath..........  Squad Operations/           18,633,000
                                   AMU, 492 & 494
                                   Flight Squadron.
        RAF Lakenheath..........  Supply Material              4,900,000
                                   Control.
        RAF Mildenhall..........  Communications               4,000,000
                                   Facility.
        RAF Mildenhall..........  CNS Avionics/               12,200,000
                                   Maintenance
                                   Complex, Phase II.
        RAF Mildenhall..........  Corrosion Control           10,200,000
                                   and Maintenance
                                   Complex.
        RAF Mildenhall..........  Control Tower/Base           9,500,000
                                   Ops Complex/Crash
                                   Rescue.
        RAF Mildenhall..........  Hazardous Material           1,000,000
                                   Storage Facility.
        RAF Mildenhall..........  Mobility Processing          4,500,000
                                   Center.
        RAF Mildenhall..........  Operations Facility          4,100,000
    Defense-Wide:
        RAF Mildenhall..........  Replace Hydrant              5,300,000
                                   Fuel System.
                                                      ------------------
          Subtotal, United        ...................        114,533,000
           Kingdom.
                                                      ==================
Worldwide Unspecified:
    Army:
        Unspecified Worldwide     Planning & Design..         25,000,000
         Locations.
        Unspecified Worldwide     Unspecified Minor           10,000,000
         Locations.                Construction.
    Navy:
        Unspecified Worldwide     Planning & Design..          3,800,000
         Locations.
    Air Force:
        Unspecified Worldwide     Planning & Design..         29,647,000
         Locations.
        Unspecified Worldwide     Unspecified Minor            5,000,000
         Locations.                Construction.
    Defense-Wide:
        Unspecified Worldwide     Planning & Design..          2,000,000
         Locations.
                                                      ------------------
          Subtotal, Worldwide     ...................         75,447,000
           Unspecified.
                                                      ==================
            Grand total.........  ...................        831,000,000
------------------------------------------------------------------------

         Compliance With Clause 3 of Rule XIII (Ramseyer Rule)

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):
    The accompanying bill would amend the Department of Defense 
Appropriations Act, 1999, Public Law 105-262, as follows:

                          DEPARTMENT OF DEFENSE

           *       *       *       *       *       *       *

                               TITLE VIII

                           GENERAL PROVISIONS

           *       *       *       *       *       *       *

                          (Transfer of Funds)

    Sec. 8005. Upon determination by the Secretary of Defense 
that such action is necessary in the national interest, he may, 
with the approval of the Office of Management and Budget, 
transfer not to exceed [$1,650,000,000] $2,450,000,000 of 
working capital funds of the Department of Defense or funds 
made available in this Act to the Department of Defense for 
military functions (except military construction) between such 
appropriations or funds or any subdivision thereof, to be 
merged with and to be available for the same purposes, and for 
the same time period, as the appropriation or fund to which 
transferred: Provided, That such authority to transfer may not 
be used unless for higher priority items, based on unforeseen 
military requirements, than those for which originally 
appropriated and in no case where the item for which funds are 
requested has been denied by Congress: Provided further, That 
the Secretary of Defense shall notify the Congress promptly of 
all transfers made pursuant to this authority or any other 
authority in this Act: Provided further, That no part of the 
funds in this Act shall be available to prepare or present a 
request to the Committees on Appropriations for reprogramming 
of funds, unless for higher priority items, based on unforeseen 
military requirements, than those for which originally 
appropriated and in no case where the item for which 
reprogramming is requested has been denied by the Congress.

               Changes in the Application of Existing Law

    Pursuant to clause 3(f) of rule XIII of the Rules of the 
House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill which directly or indirectly change the 
application of existing law.
    Language is included in various locations throughout the 
bill that declares appropriations as emergency requirements 
pursuant to the Congressional Budget Act.
    Language is included under the Department of State, 
Security and Maintenance of U.S. Missions, which makes portions 
of the appropriations subject to enactment upon receipt of an 
official budget request by the President to the Congress.
    Language has been included under chapter 2, Department of 
Defense--Military, to include a number of provisions which 
makes portions of the appropriations subject to enactment upon 
receipt of an official budget request by the President of the 
Congress.
    Language has been included (Section 201) under chapter 2, 
Department of Defense--Military, which increases the Secretary 
of Defense's transfer authority for funds provided in the 
Department of Defense Appropriations Act, 1999.
    Language has been included (Section 202) under chapter 2, 
Department of Defense--Military, which increases the funds 
available for contribution to the common funded budgets of 
NATO.
    Language has been included (Section 203) under chapter 2, 
Department of Defense--Military, concerning funds for 
intelligence-related programs.
    Language has been included (Section 204) under chapter 2, 
Department of Defense--Military, which extends the pilot 
program authority for the Joint Direct Attack Munition program.
    Language has been included (Section 205) under chapter 2, 
Department of Defense--Military, which addresses burdensharing 
for operations in Kosovo.
    Language has been included (Section 206) under chapter 2, 
Department of Defense--Military, which establishes reporting 
requirements regarding operations in Kosovo and their costs.
    Language has been included (Section 207) under chapter 2, 
Department of Defense--Military, which provides additional 
funding for spare parts for military equipment.
    Language has been included (Section 208) under chapter 2, 
Department of Defense--Military, which provides additional 
funding for depot maintenance of military equipment.
    Language has been included (Section 209) under chapter 2, 
Department of Defense--Military, which provides additional 
funding for military personnel recruiting initiatives.
    Language has been included (Section 210) under chapter 2, 
Department of Defense--Military, which provides additional 
funding for military readiness training and operations tempo.
    Language has been included (Section 211) under chapter 2, 
Department of Defense--Military, which provides additional 
funding for military base operations.
    Language has been included (Section 212) under chapter 2, 
Department of Defense--Military, which provides funding for 
adjustments to military pay and retirement programs.
    Under ``International Disaster Assistance'', funds are 
appropriated to remain available until expended, and are only 
available to the extent an official budget request for a 
specific dollar amount, that includes designation of the entire 
amount of the request as an emergency requirement, is 
transmitted by the President to the Congress.
    Under ``Economic Support Fund'', funds are appropriated to 
remain available until September 30, 2000, for assistance for 
Albania, Macedonia, Bulgaria, Bosnia-Herzegovina, Montenegro, 
and Romania; are made available notwithstanding any other 
provision of law except section 533 of the Foreign Operations, 
Export Financing, and Related Programs Appropriations Act, 
1999; and are available pursuant to the regular notification 
procedures of the Committees on Appropriations (except that the 
requirement for a 15 day notification is reduced to 5 days).
    Under ``Assistance for Eastern Europe and the Baltic 
States'', funds are appropriated to remain available until 
September 30, 2000, and up to $1,000,000 of such funds may be 
used for administrative costs.
    Under ``Migration and Refugee Assistance'', funds are 
appropriated to remain available until September 30, 2000, and 
not more than $500,000 are for administrative costs; and are 
only available to the extent an official budget request for a 
specific dollar amount, that includes designation of the entire 
amount of the request as an emergency requirement, is 
transmitted by the President to the Congress.
    Under ``United States Emergency Refugee and Migration 
Assistance Fund'', funds are appropriated subject to the terms 
and conditions that apply to the funds appropriated under the 
same head in the Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 1999.
    A general provision is included that exempts the value of 
commodities and services authorized by the President through 
March 31, 1999, to be drawn down under the authority of section 
552(c)(2) of the Foreign Assistance Act to support 
international relief efforts relating to the Kosovo conflict 
from the ceiling limitation of that section, and provides that 
such assistance may be made available notwithstanding any other 
provision of law.
    Language has been included (Section 401) under chapter 4, 
which provides funds for Military Construction, Army; Military 
Construction, Navy; Military Construction, Air Force; and 
Military Construction, Defense-Wide.
    Launguage is included in title V that addresses the 
availability of funds in the Act.
    Language is included in title V that states the Sense of 
Congress regarding pay parity between civilian and military 
employees.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f) of rule XIII of the Rules of the 
House of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law:

Department of State

Diplomatic and Consular Programs
Security and Maintenance of U.S. Missions
Emergencies in the Diplomatic and Consular Service

Department of Defense

Military Personnel, Army
Military Personnel, Navy
Military Personnel, Marine Corps
Military Personnel, Air Force
Overseas Contingency Operations Transfer Fund
Weapons Procurement, Navy
Aircraft Procurement, Air Force
Missile Procurement, Air Force
Procurement of Ammunition, Air Force
Operational Rapid Response Transfer Fund
Appropriations made in Chapter 2, Sections 207 through 212

International Disaster Assistance
Economic Support Fund
Assistance for Eastern Europe and the Baltic States
Migration and Refugee Assistance
United States Emergency Refugee and Migration Assistance Fund

Department of Defense

Military Construction, Army
Military Construction, Navy
Military Construction, Air Force
Military Construction, Defense-wide
North Atlantic Treaty Organization Security Investment Program

                               Transfers

    Pursuant to clause 1(b) of rule X of the Rules of the House 
of Representatives, the following table is submitted describing 
the transfers of unexpended balances in the accompanying bill:

                   Transfers recommended in the bill

    Language is included in chapter 2 that increases the 
limitation of funds included in the Department of Defense 
Appropriations Act, 1999, that can be transferred among 
accounts.

                        Constitutional Authority

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives states that:

          Each report of a committee on a bill or joint 
        resolution of a public character, shall include a 
        statement citing the specific powers granted to the 
        Congress in the Constitution to enact the law proposed 
        by the bill or joint resolution.

    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America which 
states:

          No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law * * *

    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

                 Comparison With the Budget Resolution

    Section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, requires that the report accompanying a bill providing 
new budget authority contain a statement detailing how that 
authority compares with the reports submitted under section 302 
of the Act for the most recently agreed to concurrent 
resolution on the budget for the fiscal year. All budget 
authority provided in the accompanying bill is designated 
emergency funding requirements under the procedures set forth 
in section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended. The Committee will 
receive an increased allocation to accommodate this budget 
authority and resulting outlays after reporting this bill.

                      Five-Year Outlay Projections

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following table contains 
five-year projections associated with the budget authority 
provided in the accompanying bill:
                                                                Millions
Budget Authority..............................................   $12,947
Outlays:
    1999......................................................     2,954
    2000......................................................     7,072
    2001......................................................     1,779
    2002......................................................       648
    2003 and beyond...........................................       253

               Assistance to State and Local Governments

    In accordance with section 308(a)(1)(C) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the financial assistance to 
State and local governments is as follows:
                                                                Millions
Budget Authority..............................................         0
Fiscal year 1999 outlays resulting therefrom..................         0

                          Full Committee Votes

    Pursuant to the provisions of clause 3(a)(1)(b) of rule 
XIII of the House of Representatives, the results of each 
rollcall vote on an amendment or on the motion to report, 
together with the names of those voting for and those voting 
against, are printed below:

                           ROLLCALL NUMBER: 1

    Date: April 29, 1999.
    Measure: Kosovo and Southwest Asia Emergency Supplemental 
Appropriations Bill, FY 1999.
    Motion by: Mr. Obey.
    Description of motion: To reduce amounts in the bill for 
spare parts, depot maintenance, recruiting, training, base 
operations, and military construction; and to insert 
authorization for military pay and retirement reform, funding 
for agricultural emergencies, funding for Hurricanes Mitch and 
Georges recovery, funding for several non-emergency matters, 
several rescissions and offsets, technical corrections to P.L. 
105-277, and funding for emergency food assistance.
    Results: Rejected, 20 Yeas to 35 Nays.
        Members Voting Yea            Members Voting Nay
Mr. Boyd                            Mr. Bonilla
Mr. Cramer                          Mr. Callahan
Ms. DeLauro                         Mr. Cunningham
Mr. Dixon                           Mr. DeLay
Mr. Edwards                         Mr. Dickey
Mr. Hinchey                         Mr. Dicks
Mr. Hoyer                           Mrs. Emerson
Mr. Jackson                         Mr. Forbes
Ms. Kaptur                          Mr. Frelinghuysen
Ms. Kilpatrick                      Ms. Granger
Mrs. Meek                           Mr. Hobson
Mr. Obey                            Mr. Istook
Mr. Olver                           Mr. Kingston
Mr. Pastor                          Mr. Knollenberg
Ms. Pelosi                          Mr. Kolbe
Mr. Price                           Mr. Latham
Ms. Roybal-Allard                   Mr. Lewis
Mr. Sabo                            Mr. Miller
Mr. Serrano                         Mr. Mollohan
Mr. Visclosky                       Mr. Moran
                                    Mr. Murtha
                                    Mr. Nethercutt
                                    Mr. Packard
                                    Mr. Peterson
                                    Mr. Porter
                                    Mr. Regula
                                    Mr. Rogers
                                    Mr. Skeen
                                    Mr. Sununu
                                    Mr. Tiahrt
                                    Mr. Walsh
                                    Mr. Wamp
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                                    
                                    

                            Dissenting Views

    There are several sets of issues raised by the President's 
request for emergency spending to deal with the current crisis 
in Kosovo. One set deals with current U.S. policies toward 
Kosovo and the adequacy of the funds requested to implement 
those policies. The other deals with the integrity of the 
congressional budget process and the use of the ``emergency 
spending'' designation to exempt certain spending items from 
the ceilings established within that process. This Committee, 
at the firm direction of the House Leadership, appears to have 
placed itself on both sides of both sets of issues.
    While many members of the Committee voted against 
resolutions supporting current military efforts in Yugoslavia, 
most of those same members are insisting on an enormous 
increase in the President's request for funding those efforts. 
At the same time, those members appear to have reversed 
themselves on the use of the emergency spending powers within 
the Budget Act.
    Only a month ago they were arguing (at the insistence of 
their leadership) that emergency spending authority should be 
used so sparingly that the Congress could not address the 
current farm crisis or the hurricane disaster which struck 
Central America without rewriting the budget for the current 
fiscal year. As a result, no action on either of those crises 
has yet been taken.
    Now the Committee Majority is arguing that the emergency 
designation procedure should be used to add billions to the 
President's request for Kosovo--even though most of that 
spending is unrelated to Kosovo and falls entirely outside the 
Budget Act requirements for emergency spending.
The President's request
    It is difficult to understand the magnitude of the 
inconsistency displayed by the Committee on either of these 
issues without first reviewing the President's request for 
Kosovo. That request--particularly with respect to military 
operations--is in a word, robust. It contains the funds needed 
to meet all costs and replace all items used thus far in the 
Kosovo conflict. It contains sufficient funds to fill 
Yugoslavian airspace with allied aircraft to virtual capacity 
between now and the end of the current fiscal year on September 
30th and to drop all of the munitions that those aircraft are 
capable of carrying for each of the remaining 148 days during 
that period. That includes funds for all of the 500 planes 
which have been in use since the beginning of the air conflict, 
the 82 additional planes that were requested last month, and 
the 300 new planes now being sent into the region.
    It contains sufficient funds to build and arm an Apache 
helicopter base near the Albanian border. There are funds to 
provide for as many as 50 Apache helicopters along with the 
tanks, infantry forces and ATACMS missiles to protect the base 
and support operations. It fully funds the callup of 33,000 
reservists. On top of every identified need, there is also an 
$850 million reserve fund to pay for additional parts, 
munitions or other possible contingencies if needed. In short, 
the air war against Yugoslavia will not be constrained by lack 
of funding under the President's $6 billion request.
    Additional funding will not intensify the air war. General 
Wesley Clark, the Supreme Allied Commander of NATO, may be 
prevented from conducting the most aggressive possible air 
campaign because of uncooperative weather, lack of political 
consensus among the allies or simply the lack of airspace over 
the targets, but he will not lack financial resources.
    In addition to these military items, the President has 
requested $591 million for Department of State refugee relief, 
economic support, and embassy security needs.
The Committee response
    The role of the Appropriations Committee has traditionally 
been to protect the public from the potentially excessive 
demands for spending by the Executive Branch. In most years, 
the Committee has not only cast a skeptical eye on 
administration spending proposals but has recommended spending 
levels well below the amounts requested. That tradition stands 
in sharp contrast to the contents of the legislation 
accompanying this report.
    For defense, the Committee has added $6.9 billion to the 
$5.5 billion that was requested for the Department of Defense 
for a total of $12.4 billion--a 125% increase above requested 
levels. It has provided $460 million for additional munitions, 
$400 million for unanticipated and unidentifiedprocurements, $1 
billion for a wide variety of military construction projects around the 
world, $1.3 billion for additional spare parts, $900 million for 
additional maintenance and about $800 million for several smaller 
items. It has also included $1.84 billion for the President's proposed 
increase in military pay and retirement benefits scheduled to take 
place next year; but it neglected to include the authorizing language 
which would actually deliver those benefits to the troops.
    The Majority members of the Committee insist that these 
funds are necessary because of critical worldwide shortages in 
U.S. military munitions, spare parts and maintenance funds. If 
such shortages do exist it is appropriate to ask why. And it is 
also appropriate to ask who is responsible.

JDAM cutback

    Recently, discussion of military shortages has focused on 
the potential shortage of Joint Direct Attack Munitions (JDAM). 
There is a possibility that the Pentagon may exhaust existing 
stocks of these all weather, satellite guided precision bombs 
before new shipments arrive later this month. If we have poor 
weather in the Balkans in the coming weeks, that shortage could 
impede the air war. The reason for the shortage however, is not 
a lack of defense spending but a lack of spending on the right 
items within the defense budget. While the Congress succeeded 
in spending well above the President's request for defense last 
year, they actually cut his request for JDAM procurement by 
13%--from $53.2 million to $46.2 million. Those funds were 
redirected to other large-scale procurement items that the 
Pentagon had not requested but which were produced in the 
states and districts of powerful Senators and Representatives.
    Over the last four fiscal years (FY1996 through 1999), 
Congress has added about $27 billion, or 2.5%, to military 
spending above the levels requested by the President. While 
many of the advocates talk about the desperate shortages in 
readiness when they argue for these sums, the nature of the 
emergency seems to change radically when it comes time to spend 
the money. According to CBO data only about $3.6 billion or 14% 
of these add-ons went for spare parts, training, equipment 
maintenance and other areas of defense readiness. Senator John 
McCain pointed out in Defense Daily last year:

          * * * pork barrel spending is at an all time high * * 
        * The lack of appreciation of the problems the men and 
        women in the military face--and now the belief that 
        somehow the defense budget is the way to fund home-town 
        pork projects and pump up the National Guard at the 
        expense of the regular forces--I think is really very 
        serious.

Military construction add-ons

    Also contained in this package is more than $1 billion for 
additional military construction spending. Only a tiny fraction 
of these funds have any arguable relevance to the current 
military activity in Yugoslavia. The 77 projects which are 
funded are scattered in locations ranging from Southwest Asia 
to Northern Europe. Few of the projects can be completed within 
a 12- or even 24-month timeframe and it is highly questionable 
whether they represent the most pressing military construction 
needs.
    Nearly half, or 37, of these projects representing $335 
million in total spending are not even contained on the 
Pentagon 5-year plan for upgrading physical infrastructure. 
These projects at U.S. bases in Germany are being pushed ahead 
of construction needs that the Pentagon's own methodical 
internal review process says are more important. This Committee 
does not have the expertise to make such judgments. They 
require massive amounts of information and planning. If the 
Committee believes that Pentagon prioritization of 
infrastructure needs is badly out of whack, it should demand 
that the Pentagon fix it. If it does not, it should largely 
abide by those judgments in allocating scarce resources.

Responsible use of emergency spending authority

    In 1990, the Congress adopted various reforms to the Budget 
Act. In order to permit the inclusion of rigid caps on 
discretionary spending, the Bush administration proposed that 
the flexibility necessary to respond to unforeseen emergencies 
be preserved by providing emergency spending authority. 
According to the President's OMB Director at the time, Richard 
Darman, that authority should be used only when the need for 
funds is ``urgent'', ``unanticipated'', and ``essential.''
    The current majority caucus in the House has had a great 
deal of difficulty over the years in coming to terms with this 
provision of the Budget Act. In1993, when vast areas of the 
Mississippi and Missouri River Valleys were under water and billions in 
crops, livestock, businesses and homes had been lost, a majority of 
House Republicans opposed the use of the emergency spending authority 
to provide relief to the flood victims. In the end they backed away 
from the insistence of some of their members that the aid be provided 
with a 16% across the board cut rather than through the use of the 
emergency clause.
    In 1996 they delayed action for months on a second flood 
that had struck communities in the Upper Midwest because of 
disagreements over this same provision allowing for emergency 
appropriations. They relented only after the public became 
outraged at congressional inaction.
    But in the fall of 1998, House Republicans reversed field 
entirely. In response to an administration request for a little 
more than $7 billion in emergency funding to deal with the 
bombing of U.S. embassies in Africa, cope with the year 2000 
computer bug, sustain U.S. military operations in Bosnia and 
relief for the victims of East Coast hurricane damage, 
Congressional Republicans demanded their own list of 
``emergency spending'' items. By the time the process was over 
a billion dollars had been added for anti-missile defense, a 
billion and a half dollars for various intelligence programs 
and $0.7 billion for anti-drug activities. The entire package 
came to $21.3 billion and none of it was offset.
    The field was reversed again this spring when the 
administration asked for $963 million to deal with problems 
created by Hurricanes Mitch and Georges and the devastation 
that they brought to Central America and the Caribbean. The 
original intention of the committee to proceed without offsets 
to this spending was reversed by a last minute leadership 
directive that they must be included. The offsets that were 
identified were unacceptable to not only House Democrats and 
the Administration but to Senate Republicans as well. Although 
the legislation passed the House by a very narrow margin, a 
conference committee to consider the differences between House 
and Senate versions has not met in the six weeks since it 
cleared both chambers.
    Now the House Republican Leadership has reversed course 
again. Rather than insisting on spending cuts to finance 
military operations in Yugoslavia they are insisting on 
doubling the amount of the surplus that will be used for that 
purpose. Furthermore, they are insisting that items that in no 
way qualify under the budget act definition of ``emergency'' be 
included. Of the $3 billion in additional Operations and 
Maintenance spending included in their package, $1.8 billion of 
that will not even be spent in the current year and is advance 
funding those activities for fiscal 2000. In the military 
construction category, of the more than $1 billion contained in 
the measure probably no more than $20 million is for projects 
that are related to Kosovo and could be built in a time frame 
that would conceivably make them useful to the current effort.
    While one might argue that nearly all of this $6.9 billion 
add on is nonemergency, there is clearly $2.9 billion that 
falls completely outside the definition. Whatever arguments one 
might make for appropriating a portion of next year's regular 
operations and maintenance funds in this fiscal year, that 
action cannot be justified as an ``unanticipated'' expense. The 
issue is even greater with respect to military construction 
projects that will take years to complete. Furthermore, if the 
committee really feels that there is an ``urgent'' need for 
more military construction they should at least pick projects 
that are on the Pentagon five-year plan and for which 
architectural and site development plans are available.
    The majority's alternating refusal to use emergency 
authority to address real emergencies when they occur and 
insistence on appropriating large sums under the emergency 
authority for items that clearly fail to meet the established 
criteria for emergency spending undercuts the credibility of 
the Congress on budget matters. It is also eating up 
significant portions of the surplus for questionable spending 
items. But most importantly, it is hamstringing our ability to 
act to protect the national interest in a consistent and timely 
manner--a failing that could be even more expensive in the long 
run.

                                                        David Obey.

                                
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