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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 11 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                 S. 11

 To amend title 10, United States Code, to ensure that the strength of 
 the Armed Forces and the protections and benefits for members of the 
Armed Forces and their families are adequate for keeping the commitment 
of the people of the United States to support their servicemembers, and 
                          for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 24, 2005

 Mr. Levin (for himself, Mr. Reid, Ms. Mikulski, Ms. Stabenow, Mr. 
        Inouye, Mr. Dorgan, Mr. Lautenberg, Mr. Leahy, Mr. Salazar, Mr. 
        Rockefeller, Mrs. Murray, Mr. Bingaman, Mrs. Feinstein, Mr. 
        Durbin, Mr. Kennedy, Mr. Corzine, Mr. Pryor, Mr. Nelson of 
        Nebraska, Mr. Reed, Mr. Schumer, and Mr. Dayton) introduced the 
        following bill; which was read twice and referred to the 
        Committee on FinanceYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

_______________________________________________________________________

                                 A BILL

 
 To amend title 10, United States Code, to ensure that the strength of 
 the Armed Forces and the protections and benefits for members of the 
Armed Forces and their families are adequate for keeping the commitment 
of the people of the United States to support their servicemembers, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Standing With Our Troops Act of 
2005''.

  DIVISION A--FULFILLMENT OF OBLIGATIONS TO THE MEMBERS OF THE ARMED 
                                 FORCES

     TITLE I--STRENGTHS OF THE ARMY AND MARINE CORPS ACTIVE FORCES

SEC. 101. FINDINGS.

    Congress makes the following findings:
            (1) While the United States Armed Forces remain the premier 
        fighting force in the world, the Defense Science Board, in a 
        study carried out in the summer of 2004, found that ``When we 
        match the existing and projected force structure with the 
        current and projected need for stabilization forces we see an 
        enduring shortfall in both total numbers of people and their 
        ability to sustain the continuity of stabilization efforts.''.
            (2) Between 1989 and 2004, the military personnel end 
        strength of the Army has been reduced by more than 34 percent, 
        and the Department of the Army's civilian workforce has been 
        reduced by more than 45 percent, while the mission rate of the 
        Army has increased by 300 percent.
            (3) Because of the personnel reductions, the Army National 
        Guard and the Army Reserve are repeatedly being called to 
        active duty to meet Army mission requirements that the active-
        duty force of the Army is no longer large enough to meet alone. 
        Army National Guard and Army Reserve units have provided up to 
        40 percent of the military personnel engaged in Operation Iraqi 
        Freedom while they have also been performing a dramatically 
        increased role in homeland defense and continuing to respond to 
        natural disasters, other domestic emergencies, and military 
        contingencies. As a result, the reserve components of the Army 
        have been pushed to the breaking point.

SEC. 102. ARMY.

    (a) Strength for Fiscal Year 2006.--Effective on October 1, 2005, 
section 691(b)(1) of title 10, United States Code, is amended by 
striking ``502,400'' and inserting ``522,400''.
    (b) Strength for Fiscal Years After Fiscal Year 2006.--Effective on 
October 1, 2006, section 691(b)(1) of such title is amended by striking 
``522,400'' and inserting ``532,400''.

SEC. 103. MARINE CORPS.

    (a) Strength for Fiscal Year 2006.--Effective on October 1, 2005, 
section 691(b)(3) of title 10, United States Code, is amended by 
striking ``178,000'' and inserting ``183,000''.
    (b) Strength for Fiscal Years After Fiscal Year 2006.--Effective on 
October 1, 2006, section 691(b)(3) of title 10, United States Code, is 
amended by striking ``183,000'' and inserting ``188,000''.

  TITLE II--FULL RECOGNITION OF SACRIFICE AND VALOR OF UNITED STATES 
                             SERVICEMEMBERS

                          Subtitle A--Findings

SEC 201. FINDINGS.

    Congress makes the following findings:
            (1) On November 21, 2004, the Columbia Broadcasting System 
        television program 60 Minutes reported that the staff of that 
        program had received from the Department of Defense a letter 
        containing the assertion that ``[m]ore than 15,000 troops with 
        so-called `non-battle' injuries and diseases have been 
        evacuated from Iraq.''.
            (2) This report was a rare disclosure by the Department of 
        Defense, as it is the policy of the Department of Defense not 
        to disclose publicly the number of Armed Forces personnel that 
        sustain non-combat injuries.

 Subtitle B--Accounting for Casualties Incurred in the Prosecution of 
                      the Global War on Terrorism

SEC. 211. MONTHLY ACCOUNTING.

    Not later than five days after the end of each month, the Secretary 
of Defense shall publish, for such month for each operation described 
in section 212, a full accounting of the casualties among the members 
of the Armed Forces that were incurred in such operation during that 
month.

SEC. 212. OPERATIONS COVERED.

    The operations referred to in section 211 are as follows:
            (1) Operation Iraqi Freedom.
            (2) Operation Enduring Freedom.
            (3) Each other operation undertaken by the Armed Forces in 
        the prosecution of the Global War on Terrorism.

SEC. 213. COMPREHENSIVE CONTENT OF ACCOUNTING.

    For the purpose of providing a full and complete accounting of 
casualties covered by a report under section 211, the Secretary of 
Defense shall include in the report the number of casualties in each 
casualty status in accordance with section 214.

SEC. 214. CASUALTY STATUS.

    (a) Status Types.--In a report under this title, each casualty 
among members of the Armed Forces shall be characterized by the most 
specific casualty status applicable to the member as follows:
            (1) Killed in action.
            (2) Killed in non-hostile duty.
            (3) Killed, self-inflicted.
            (4) Wounded in action, not returned to duty.
            (5) Wounded in action, returned to duty (to the extent that 
        data is available to support this characterization of casualty 
        status).
            (6) Evacuated for medical reasons.
    (b) Definitions.--In this section:
            (1) Killed in action.--The term ``killed in action'', with 
        respect to a member of the Armed Forces, means that the member 
        incurred one or more mortal wounds while involved in an action 
        against a hostile force, whether or not the wounds are 
        inflicted by the hostile force.
            (2) Killed in non-hostile duty.--The term ``killed in non-
        hostile duty'', with respect to a member of the Armed Forces, 
        means that the member incurred one or more mortal wounds that 
        were not self-inflicted and not inflicted during an action 
        against a hostile force.
            (3) Killed, self-inflicted.--The term ``killed, self-
        inflicted'', with respect to a member of the Armed Forces, 
        means a suicide of the member or the death of the member as a 
        result of one or more self-inflicted injuries.
            (4) Wounded in action, not returned to duty.--The term 
        ``wounded in action, not returned to duty'', with respect to a 
        member of the Armed Forces, means that the member, while 
        involved in an action against a hostile force, incurred one or 
        more non-mortal injuries that required medical attention and 
        that prevented the member from returning to duty within 72 
        hours after incurring the injury or injuries.
            (5) Wounded in action, returned to duty.--The term 
        ``wounded in action, returned to duty'', with respect to a 
        member of the Armed Forces, means that the member, while 
        involved in an action against a hostile force, incurred one or 
        more non-mortal injuries that required medical attention but 
        did not prevent the member from returning to duty within 72 
        hours after incurring the injury or injuries.
            (6) Evacuated for medical reasons.--The term ``evacuated 
        for medical reasons'', with respect to a member of the Armed 
        Forces, means that the member was evacuated from a theater of 
        operations for medical reasons.

SEC. 215. PUBLICATION AND RELEASE OF REPORT.

    The Secretary of Defense shall--
            (1) post the report under this title on the official 
        website of the Department of Defense; and
            (2) transmit a copy of the report to the chairmen and 
        ranking members of the Committees on Armed Services of the 
        Senate and the House of Representatives.

SEC. 216. SENSE OF CONGRESS.

    It is the sense of Congress that the Secretary of Defense has an 
obligation to ensure full and accurate reporting of casualties among 
the members of the Armed Forces to Congress and the people of the 
United States.

     Subtitle C--Advisory Panel on Military Awards and Decorations

SEC. 221. ESTABLISHMENT.

    The Secretary of Defense shall establish within the Department of 
Defense an Advisory Panel on Military Awards and Decorations.

SEC. 222. DUTIES.

    (a) Comprehensive Review of Military Decorations System.--The 
Advisory Panel shall conduct a comprehensive review of the standards 
and processes used in the Armed Forces to award medals and decorations 
to members of the Armed Forces. The review shall include the following 
matters:
            (1) An examination and evaluation of the standards of each 
        of the Armed Forces for awarding each medal and decoration.
            (2) A comparison of the standards of each of the Armed 
        Forces with the standards of each of the other Armed Forces for 
        awarding comparable medals and decorations.
            (3) An examination and evaluation of the speed with which--
                    (A) each of the Armed Forces identifies and 
                considers members for the awarding of medals and 
                decorations; and
                    (B) the medals and decorations are ultimately 
                awarded.
            (4) A review of the medals and decorations awarded by the 
        Armed Forces during 2002, 2003, and 2004, together with a 
        review of the ranks of the recipients and the mission-related 
        and other circumstances that are associated with the awarding 
        of the medals and decorations to those recipients.
    (b) Report.--
            (1) Requirement for report.--Not later than 18 months after 
        the date of the enactment of this Act, the Advisory Panel shall 
        submit a report on the results of the review under this section 
        to the Secretary of Defense and to Congress.
            (2) Content.--The report under this subsection shall 
        contain the findings and conclusions of the Advisory Panel 
        together with any recommendations for action that the panel 
        considers appropriate, and shall include the following matters:
                    (A) A discussion of the merits of maintaining for 
                each of the Armed Forces separate policies for the 
                awarding of comparable medals and decorations of the 
                Armed Forces, together with a discussion of the merits 
                of adopting uniform standards for awarding such medals 
                and decorations.
                    (B) Measures that can be taken by each of the Armed 
                Forces to expedite the process for timely identifying a 
                member who deserves a medal of decoration, determining 
                the appropriateness of awarding the medal or decoration 
                to the member, and, in each appropriate case, awarding 
                the medal or decoration to the member.
                    (C) Measures that can be taken to ensure that--
                            (i) members serving in combat are at least 
                        equally as likely to be considered for the 
                        awarding of medals and decorations as are 
                        personnel not exposed to combat; and
                            (ii) enlisted personnel are at least as 
                        likely to be considered for the awarding of 
                        medals and decorations as are officers.
                    (D) A recommendation regarding whether the Valor 
                device awarded by each of the Armed Forces should be 
                replaced by a separate class of medals honoring special 
                bravery in combat.
                    (E) A determination of the desirability of adding a 
                new class of medals, similar to the Purple Heart, to be 
                awarded to military personnel who incur non-combat 
                injuries in connection with performance of an official 
                mission or duty during a combat operation in order to 
                honor their sacrifice in service to the people of the 
                United States.
    (c) Scope Limited to Department of Defense.--The scope of the 
review and report under this section does not include the Coast Guard.

SEC. 223. COMPOSITION AND ADMINISTRATION.

    (a) Composition.--
            (1) Number; appointment.--The Advisory Panel shall be 
        composed of not more than seven members appointed by the 
        Secretary of Defense.
            (2) General and flag officers.--The Secretary shall ensure 
        that the membership of the task force includes a retired 
        general or flag officer from each of the Army, Navy, Air Force, 
        and Marine Corps who is familiar with the policies of the Armed 
        Forces regarding military awards and decorations.
            (3) Veterans.--The Secretary shall appoint at least one 
        representative of a leading veterans' advocacy organization as 
        a member of the Advisory Panel.
    (b) Time for Appointment.--All members of the Advisory Panel shall 
be appointed within 60 days after the date of the enactment of this 
Act.
    (c) Chairperson.--The chairperson of the Advisory Panel shall be 
selected from among the members of the Advisory Panel by a majority 
vote of the members.
    (d) Compensation and Expenses of Members.--Each member of the 
Advisory Panel shall serve without compensation, but shall be allowed 
travel expenses, including per diem in lieu of subsistence, at rates 
authorized for employees of agencies under subchapter I of chapter 57 
of title 5, United States Code, while away from the member's home or 
regular places of business in the performance of services for the 
Advisory Panel.
    (e) Federal Advisory Committee Act.--The Federal Advisory Committee 
Act (5 U.S.C. App) shall not apply to the Advisory Panel.

SEC. 224. COOPERATION OF FEDERAL AGENCIES.

    (a) Information.--The Advisory Panel may obtain directly from the 
Department of Defense, the Department of Veterans Affairs, or any other 
department or agency of the United States any information of such 
department or agency that the panel considers necessary for the panel 
to carry out its duties.
    (b) Other Cooperation.--The Secretary of Defense, the Secretary of 
Veterans Affairs, and any other official of the United States shall 
provide the Advisory Panel with full and timely cooperation requested 
by the panel in carrying out its duties under this section.

SEC. 225. TERMINATION.

    The Advisory Panel on Military Awards and Decorations shall 
terminate 30 days after the submission of the report to Congress under 
section 222(b).

               TITLE III--MILITARY EQUIPMENT AND MATERIEL

SEC. 301. FINDINGS.

    Congress makes the following findings:
            (1) United States military personnel serving in Operations 
        Iraqi Freedom have experienced significant shortages of 
        critical equipment, such as body armor, aircraft survivability 
        equipment, and armored trucks, including up-armored High 
        Mobility Multipurpose Wheeled Vehicles. In many cases the 
        shortages have lasted several months. For example, the 
        individual body armor needed for protecting every member of the 
        Armed Forces and Department of Defense civilians in Iraq was 
        not produced and fielded until February 2004, 11 months after 
        Operation Iraqi Freedom was launched. Shortages of armor for 
        Army trucks still existed as of the beginning of 2005.
            (2) Operation Iraqi Freedom and Operation Enduring Freedom 
        have taken a substantial toll on military equipment of the 
        Armed Forces. The commanding general of the Army Material 
        Command estimated in 2004 that the Army is wearing out its 
        equipment in Iraq and Afghanistan at a rate that could be up to 
        10 times faster than the rate at which it wears out its 
        equipment elsewhere during peacetime, and there are no 
        significant reserve stocks of that equipment remaining.
            (3) It is a solemn obligation of the United States 
        Government to ensure that, whenever the Armed Forces are called 
        into battle, the military personnel fighting or supporting the 
        battle are provided with the safest, most effective technology 
        and equipment.

SEC. 302. MOBILIZATION PLANNING AND PREPAREDNESS.

    (a) Director of Mobilization Planning and Preparedness.--Title I of 
the National Security Act of 1947 (50 U.S.C. 402 et seq.) is amended by 
striking section 107 and inserting the following new sections:

          ``director of mobilization planning and preparedness

    ``Sec. 107. (a) Definitions.--In this section:
            ``(1) The term `Director' means the Director of 
        Mobilization Planning and Preparedness referred to in 
        subsection (b)(1), except where the context clearly indicates 
        otherwise.
            ``(2) The term `national security emergency' means any 
        occurrence, including a natural disaster, a military or 
        terrorist attack against the territory of the United States, a 
        military operation carried out by the Armed Forces abroad, a 
        technological emergency, or any other emergency, that either 
        seriously degrades or threatens the security of the United 
        States or the Armed Forces.
            ``(3) The term `mobilization' means the act of assembling 
        and organizing national resources, including military personnel 
        and equipment, labor, transportation systems, industry, and 
        financial resources, to support national objectives of the 
        United States in time of a national security emergency.
            ``(4) The term `mobilization planning and preparedness' 
        means all aspects of planning and preparing for a mobilization 
        for a national security emergency, including the identification 
        of functions that would have to be performed during a national 
        security emergency, development of plans for performing such 
        functions, development of the capability to execute such plans, 
        and development of policies that maximize the speed and 
        efficiency with which such plans can be executed during a 
        national security emergency.
    ``(b) Position of Director.--
            ``(1) Establishment.--There is a Director of Mobilization 
        Planning and Preparedness on the staff of the National Security 
        Council.
            ``(2) Appointment.--The Director is appointed by the 
        Assistant to the President for National Security Affairs.
            ``(3) Relationship to national security advisor.--The 
        Director reports directly to the Assistant to the President for 
        National Security Affairs.
    ``(c) Duties.--
            ``(1) Principal duty.--The Director is the principal 
        adviser to the Assistant to the President for National Security 
        Affairs on matters of mobilization planning and preparedness.
            ``(2) Specific duties.--The duties of the Director include 
        the following:
                    ``(A) Identify which governmental and private 
                sector functions must be performed on a sustained basis 
                during a national security emergency.
                    ``(B) Develop plans for the sustained performance 
                of the identified functions.
                    ``(C) Provide guidance on the development of the 
                capability to execute the plans.
                    ``(D) Recommend policies for the maximization of 
                the speed and efficiency with which the plans can be 
                executed during a national security emergency.
                    ``(E) Recommend planning and policy guidance 
                regarding involvement of the National Guard in 2 or 
                more national security emergency operations 
                concurrently.
                    ``(F) Administer quarterly exercises simulating 
                mobilization for various types of national security 
                emergencies, including the following:
                            ``(i) A major military operation carried 
                        out in and around 1 or more foreign countries.
                            ``(ii) An occupation and reconstruction 
                        mission.
                            ``(iii) A terrorist attack within the 
                        United States.
                            ``(iv) A natural disaster within the United 
                        States.
                            ``(v) A major humanitarian crisis in 1 or 
                        more foreign countries.
                            ``(vi) A minor military intervention in a 
                        foreign country.
            ``(3) Related duties.--
                    ``(A) Mobilization planning and preparedness policy 
                coordinating committee.--The Director serves on the 
                Mobilization Planning and Preparedness Policy 
                Coordinating Committee as provided in section 107A.
                    ``(B) Department of defense primary allocation of 
                industrial resources task force.--The Director serves 
                as a member of the Primary Allocation of Industrial 
                Resources Task Force of the Department of Defense.
    ``(d) Office of Mobilization Planning and Preparedness.--
            ``(1) Establishment.--There is an Office of Mobilization 
        Planning and Preparedness within the National Security Council. 
        The Director is the head of the office.
            ``(2) Composition.--The Office of Mobilization Planning and 
        Preparedness is composed of the following personnel:
                    ``(A) Thirty employees appointed by the Assistant 
                to the President for National Security Affairs.
                    ``(B) An employee of the Department of Defense, who 
                shall be detailed to the Office by the Under Secretary 
                of Defense for Acquisition, Technology, and Logistics 
                to serve as liaison between the Department of Defense 
                and the Director to ensure that comprehensive and 
                accurate information on the needs of the Armed Forces 
                for equipment and materiel in a national security 
                emergency are timely communicated to the Director.
    ``(e) Coordination With National Counterterrorism Center.--
            ``(1) Liaison officer.--The Director shall detail an 
        employee of the Office to the National Counterterrorism Center 
        to serve as a liaison officer between the Director of 
        Mobilization Planning and Preparedness and the Director of the 
        National Counterterrorism Center for collaboration on 
        counterterrorism-related information and issues necessary for 
        effective mobilization planning and preparedness.
            ``(2) Responsibility of director of national 
        counterterrorism center.--The Director of the National 
        Counterterrorism Center shall ensure that the liaison officer 
        is accorded such privileges at the Center as are necessary to 
        ensure that the collaboration between the Director of the 
        National Counterterrorism Center and the Director of 
        Mobilization Planning and Preparedness on counterterrorism-
        related information and issues is effective.
    ``(f) Annual Report.--
            ``(1) Requirement for report.--The President, acting 
        through the Director, shall submit to Congress each year a 
        report on mobilization planning and preparedness.
            ``(2) Content.--The annual report under this subsection 
        shall include the following information:
                    ``(A) Funding needs for mobilization planning and 
                preparedness.
                    ``(B) An assessment of the state of mobilization 
                planning and preparedness in the United States.
                    ``(C) Any recommended policies on mobilization 
                planning and preparedness that the President, in 
                consultation with the Assistant to the President for 
                National Security Affairs and the Director, considers 
                appropriate.

 ``mobilization planning and preparedness policy coordinating committee

    ``Sec. 107A. (a) Mobilization Planning and Preparedness Defined.--
In this section, the term `mobilization planning and preparedness' has 
the meaning given that term in section 107(a).
    ``(b) Establishment.--There is in the executive branch an 
interagency committee known as the `Mobilization Planning and 
Preparedness Policy Coordinating Committee'.
    ``(c) Composition.--The Committee shall be composed of the 
following members:
            ``(1) The Director of Mobilization Planning and 
        Preparedness of the National Security Council, who shall chair 
        the committee.
            ``(2) The Under Secretary for Emergency Preparedness and 
        Response of the Department of Homeland Security.
            ``(3) The Under Secretary of State for Economic, Business, 
        and Agricultural Affairs.
            ``(4) The Under Secretary of Defense for Acquisition, 
        Technology, and Logistics.
            ``(5) The Associate Attorney General.
            ``(6) The Assistant Secretary of the Interior for Land and 
        Minerals Management.
            ``(7) The Under Secretary of Commerce for Industry and 
        Security.
            ``(8) The Deputy Secretary of Labor.
            ``(9) The Assistant Secretary of Health and Human Services 
        for Public Health Emergency Preparedness.
            ``(10) The Under Secretary of Transportation for Policy.
            ``(11) The Under Secretary of Energy for Energy, Science, 
        and Environment.
            ``(12) One member designated by the Assistant to the 
        President for National Security Affairs.
            ``(13) One member designated by the Director of National 
        Intelligence.
    ``(d) Duties.--The Committee has the following duties:
            ``(1) To review, at least once each year, the mobilization 
        planning and preparedness policies of the United States.
            ``(2) To make any recommendations for action to improve 
        mobilization planning and preparedness that the Committee 
        determines appropriate.
            ``(3) To participate in the exercises conducted by the 
        Director of Mobilization Planning and Preparedness of the 
        Department under section 510(b)(2)(F).''.
    (b) Clerical Amendment.--The table of contents in the first section 
of the National Security Act of 1947 is amended by striking the item 
relating to section 107 and inserting the following new items:

``Sec. 107. Director of Mobilization Planning and Preparedness.
``Sec. 107A. Mobilization Planning and Preparedness Policy Coordinating 
                            Committee.''.

SEC. 303. REPORT ON RECONSTITUTION NEEDS OF THE ARMED FORCES.

    (a) Report Required.--
            (1) Requirement for report.--Not later than March 1, 2005, 
        the Secretary of Defense shall submit to the congressional 
        defense committees a report on the needs of the Armed Forces 
        for reconstituting its stocks of military equipment and other 
        materiel in view of the attrition of military equipment and 
        other materiel experienced by the Armed Forces in Operation 
        Iraqi Freedom and Operation Enduring Freedom.
            (2) Consultation.--The Secretary shall consult with the 
        Chief of Staff of the Army, the Chief of Staff of the Air 
        Force, the Chief of Naval Operations, the Commandant of the 
        Marine Corps, and the Inspector General of each of the Armed 
        Forces in preparing the report under this section.
    (b) Content.--The report shall include an assessment of each of the 
following matters:
            (1) The extent of the damage and destruction of military 
        equipment and other military materiel in Operation Iraqi 
        Freedom and Operation Enduring Freedom.
            (2) The amount of such equipment, if any, that has become 
        ineffective or obsolete by age or other causes.
            (3) The needs of each of the Armed Forces, including the 
        reserve components as well as the regular components, for 
        repair and replacement of equipment.
            (4) The total cost of reconstituting the stocks of military 
        equipment and other materiel of the Armed Forces to meet the 
        needs of the Armed Forces.
            (5) The time needed to reconstitute such stocks to meet 
        those needs.
    (c) Form of Report.--The report shall be submitted in unclassified 
form, but may include a classified annex.

SEC. 304. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Army.--Funds are hereby authorized to be appropriated for 
fiscal year 2005 for the use of the Army for the repair, refurbishment, 
and replacement of equipment used by the Army in Operation Iraqi 
Freedom or Operation Enduring Freedom, as follows:
            (1) Operation and maintenance.--For expenses, not otherwise 
        provided for, for operation and maintenance, $6,000,000,000.
            (2) Procurement.--For procurement, $2,500,000,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2005 for the use of the Marine Corps for the repair, 
refurbishment, and replacement of equipment used by the Marine Corps in 
Operation Iraqi Freedom or Operation Enduring Freedom, as follows:
            (1) Operation and maintenance.--For expenses, not otherwise 
        provided for, for operation and maintenance, $640,000,000.
            (2) Procurement.--For procurement, $1,500,000,000.
    (c) Availability Through Fiscal Year 2006.--Amounts authorized to 
be appropriated under this section shall remain available until 
September 30, 2006.
    (d) Limitation.--None of the funds appropriated pursuant to an 
authorization of appropriations in this section may be obligated or 
expended until the date that is 15 days after the date on which the 
Secretary of Defense transmits to the congressional defense committees 
a report on the specific use for which the funds are to be obligated or 
expended, respectively.

SEC. 305. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

    In this title, the term ``congressional defense committees'' has 
the meaning given such term in section 101(a)(16) of title 10, United 
States Code.

         TITLE IV--PERIODS OF OVERSEAS DEPLOYMENTS OF RESERVES

SEC. 401. FINDINGS.

    Congress makes the following findings:
            (1) The Department of Defense failed to establish an 
        adequate troop deployment and rotation policy for Operation 
        Iraqi Freedom until several months after the operation had 
        begun. For several reserve component units involved in that 
        operation before 2005, the demobilization date was rescheduled 
        three or more times before the unit members were finally 
        allowed to return home.
            (2) Without an adequate deployment and rotation plan, the 
        Department of Defense has relied on a series of stop-gap 
        measures to retain a sufficient number of troops to carry out 
        the United States missions in Operation Iraqi Freedom and 
        Operation Enduring Freedom, including--
                    (A) institution of a so-called ``stop-loss'' policy 
                that prevents personnel from leaving their units during 
                deployment;
                    (B) extensions of deployments beyond scheduled 
                demobilization dates; and
                    (C) activation of members of the Individual Ready 
                Reserve.
            (3) In September 2004, the Government Accountability Office 
        reported that ``Many of DOD's policies that affect mobilized 
        reserve component personnel were implemented in a piecemeal 
        manner and were not linked within the context of a strategic 
        framework to meet the organizational goals. . . . Without a 
        strategic framework, OSD and the services made several changes 
        to their personnel policies to increase the availability of the 
        reserve components for the longer-term requirements of the 
        Global War on Terrorism, and predictability declined for 
        reserve component members.''.
            (4) Fairness to the men and women of the Armed Forces 
        deployed overseas requires that the Department of Defense--
                    (A) have clear policies regarding lengths of 
                deployment periods; and
                    (B) communicate these policies and other 
                deployment-related information to them and their 
                families.

SEC. 402. SENSE OF CONGRESS ON TWO-YEAR LIMIT ON MOBILIZATION.

    It is the sense of Congress that the Secretary of Defense should 
continue the existing Department of Defense policy of limiting to a 
total of 24 months the period for which members of the reserve 
components serve on active duty to which called or ordered in support 
of a contingency operation.

SEC. 403. COMMUNICATION OF LENGTHS OF DEPLOYMENT PERIODS TO RESERVES IN 
              OPERATION IRAQI FREEDOM.

    (a) Report of Department of Defense Policies.--
            (1) Requirement for report.--Not later than March 1, 2005, 
        the Secretary of Defense shall submit to the Committees on 
        Armed Services of the Senate and the House of Representatives a 
        report on--
                    (A) Department of Defense policies governing the 
                length of mobilization and deployment periods 
                applicable to members of reserve components of the 
                Armed Forces in connection with Operation Iraqi 
                Freedom, and on the communication between the 
                Department of Defense and reserve component personnel 
                and their families regarding the lengths of the 
                mobilization deployment periods; and
                    (B) Department of Defense stop-loss policies.
            (2) Consultation requirement.--In preparing the report, the 
        Secretary shall consult with the Chairman and other members of 
        the Joint Chiefs of Staff and with such other officials as the 
        Secretary considers appropriate.
    (b) Content of Report.--The report under this section shall contain 
a discussion of the matters described in subsection (a)(1), including a 
discussion of the following matters:
            (1) The process by which the Department of Defense 
        determined its policy regarding the lengths of mobilization 
        deployment periods.
            (2) The reason that an adequate troop deployment policy was 
        not in place before Operation Iraqi Freedom began.
            (3) A comparison of the policies during Operation Iraqi 
        Freedom with Department of Defense policies that applied to 
        previous contingency operations.
            (4) The timeliness of the process for notifying reserve 
        component units for activation.
            (5) The process for communicating with activated reserve 
        component members and their families about demobilization 
        schedules.
            (6) The justification for delaying demobilization after 
        members and their families have been notified of the 
        anticipated demobilization schedule.
            (7) The justification for current stop-loss policies, 
        together with a statement of the period for which those 
        policies are to remain in effect and the conditions under which 
        management of personnel under those policies would terminate.
            (8) The family support programs provided by the National 
        Guard and other reserve components for families of activated 
        Reserves.
            (9) An assessment of lessons learned about how the 
        increased operation tempos of the National Guard and other 
        reserve components can be expected to affect readiness, 
        recruitment and retention, civilian employers of Reserves, and 
        equipment and supply resources of the National Guard and the 
        other reserve components.
    (c) Matters for Particular Emphasis.--In the discussion of the 
matters included in the report under this section, the Secretary of 
Defense shall place particular emphasis on--
            (1) lessons learned, including deficiencies identified; and
            (2) near-term and long-term corrective actions to address 
        the identified deficiencies.
    (d) Form of Report.--The report under this section shall be 
submitted in unclassified form, but may include a classified annex.

                      TITLE V--TIMELY COMPENSATION

SEC. 501. FINDINGS.

    Congress makes the following findings:
            (1) In November 2003, the General Accounting Office 
        reported, in connection with a study conducted by that office, 
        that among Army National Guard soldiers ``450 of the 481 
        soldiers from our 6 case study units had at least 1 pay problem 
        associated with their mobilization. These pay problems severely 
        constrain the Army's and the Department of Defense's (DOD) 
        ability to provide a most basic service to these personnel, 
        many of whom were risking their lives in combat.''.
            (2) In August 2004, a second study by that office (by then 
        renamed the Government Accountability Office) found that among 
        Army Reserve soldiers ``332 of 348 soldiers (95 percent) we 
        audited at 8 case study units that were mobilized, deployed, 
        and demobilized at some time during the 18-month period from 
        August 2002 through January 2004 had at least 1 pay problem.''.
            (3) The August 2004 report concluded that ``These pay 
        problems often had a profound adverse impact on individual 
        soldiers and their families. For example, soldiers were 
        required to spend considerable time, sometimes while deployed 
        in remote, hostile environments overseas, seeking help on pay 
        inquiries or in correcting errors in their active duty pays, 
        allowances, and related tax benefits.''.

SEC. 502. CORRECTION OF MILITARY PAY PROBLEMS FOR ACTIVATED RESERVE 
              COMPONENT PERSONNEL.

    The Secretary of the Army shall designate a senior level official 
of the Department of the Army to implement--
            (1) the recommendations for executive action that are set 
        forth in the report of the Comptroller General of the United 
        States entitled ``Military Pay, Army National Guard Personnel 
        Mobilized to Active Duty Experienced Significant Pay 
        Problems'', dated November 2003; and
            (2) the recommendations for executive action that are set 
        forth in the report of the Comptroller General of the United 
        States entitled ``Military Pay, Army Reserve Soldiers Mobilized 
        to Active Duty Experienced Significant Pay Problems'', dated 
        August 2004.

SEC. 503. SUPERVISION BY COMPTROLLER OF DEPARTMENT OF DEFENSE.

    The official designated under section 502 shall report directly to, 
and be subject to the direction of, the Under Secretary of Defense 
(Comptroller) regarding performance of the duties that the official is 
designated to carry out under such section.

SEC. 504. TERMINATION OF REQUIREMENT.

    The designation under section 502 shall terminate upon the 
submission of a certification of the Under Secretary of Defense 
(Comptroller) to Congress that all recommendations referred to in such 
section have been implemented.

  TITLE VI--IMPROVED REPRESENTATION OF RESERVE PERSONNEL INTERESTS IN 
                   DEPARTMENT OF DEFENSE SECRETARIAT

SEC. 601. FINDINGS.

    Congress makes the following findings:
            (1) Since September 11, 2001, the National Guard and the 
        other reserve components of the Armed Forces have experienced 
        an expansion of their role in the total force structure of the 
        Armed Forces to an unprecedented level. In 2004, the reserve 
        components comprised 40 percent of the total force of the Armed 
        Forces. Reservists are experiencing a dramatic increase in 
        operation tempo and average length of deployment.
            (2) While the extent of the role of the reserve component 
        has changed so dramatically, the Department of Defense approach 
        to management of the reserve components has remained much the 
        same. No new senior leadership positions have been established 
        to manage the reserve components more effectively in the 
        expanded role.

SEC. 602. DEPUTY UNDER SECRETARY OF DEFENSE FOR PERSONNEL AND READINESS 
              (RESERVE AFFAIRS).

    (a) Establishment of Position.--
            (1) Position and duties.--Chapter 4 of title 10, United 
        States Code, is amended by inserting after section 136a the 
        following new section:
``Sec. 136b. Deputy Under Secretary of Defense for Personnel and 
              Readiness (Reserve Affairs)
    ``(a) There is a Deputy Under Secretary of Defense for Personnel 
and Readiness (Reserve Affairs), appointed from civilian life by the 
President, by and with the advice and consent of the Senate.
    ``(b) The Deputy Under Secretary of Defense for Personnel and 
Readiness (Reserve Affairs) shall have as his principal duty the 
overall supervision of reserve component affairs of the Department of 
Defense.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 136a the following new item:

``136b. Deputy Under Secretary of Defense for Personnel and Readiness 
                            (Reserve Affairs).''.
    (b) Executive Level IV.--Section 5315 of title 5, United States 
Code, is amended by inserting after ``Deputy Under Secretary of Defense 
for Personnel and Readiness.'' the following:
            ``Deputy Under Secretary of Defense for Personnel and 
        Readiness (Reserve Affairs).''.

SEC. 603. ELIMINATION OF POSITION OF ASSISTANT SECRETARY OF DEFENSE FOR 
              RESERVE AFFAIRS.

    (a) Repeal of Requirement for Position.--Subsection (b) of section 
138 of title 10, United States Code, is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraphs (3), (4), and (5), as 
        paragraphs (2), (3), and (4), respectively.
    (b) Reduction in Total Number of Assistant Secretaries of 
Defense.--
            (1) Authorized number.--Subsection (a) of such section is 
        amended by striking ``nine'' and inserting ``eight''.
            (2) Conforming amendment.--Section 5315 of title 5, United 
        States Code, is amended by striking ``(9)'' after ``Assistant 
        Secretaries of Defense'' and inserting ``(8)''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on the date on which a person is first appointed as 
Deputy Under Secretary of Defense for Personnel and Readiness (Reserve 
Affairs).

                DIVISION B--MILITARY FAMILY PROTECTIONS

          TITLE XXI--GUARDSMEN AND RESERVISTS FINANCIAL RELIEF

SEC. 2101. FINDINGS.

    Congress makes the following findings:
            (1) According to a Government Accountability Office report 
        in November 2004, ``The September 11, 2001, terrorist attacks 
        and the global war on terrorism have triggered the largest 
        activation of National Guard forces since World War II. As of 
        June 2004, over one-half of the National Guard's 457,000 
        personnel had been activated for overseas warfighting or 
        domestic homeland security missions in Federal and State active 
        duty roles.''. In all, over 400,000 reservists have been 
        mobilized between September 11, 2001, and the beginning of 
        2005.
            (2) In March 2003, the General Accounting Office reported 
        that among members of the National Guard and other reserve 
        components of the Armed Forces ``. . . data for past military 
        operations show that 41 percent of drilling unit members 
        reported income loss . . .''. The report further noted that 
        senior officers in the reserve component reported average 
        losses of $5,000 in income upon activation.
            (3) Not only has operation tempo drastically increased for 
        members of the reserve components, meaning that reservists are 
        being called away from their civilian jobs more often, but also 
        the durations of deployments have increased dramatically as 
        well, meaning that reservists are being called away from their 
        civilian jobs for longer periods. The Government Accountability 
        Office reported in September 2004 that the average annual days 
        of duty performed by members of the reserve components has 
        risen from approximately 40 days in 1989 to approximately 120 
        days in 2003. A consequence of both increased operations tempo 
        and increased duration of deployment has been a far greater 
        loss of income for reservists answering their country's call to 
        duty.

SEC. 2102. PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS FOR 
              INDIVIDUALS CALLED TO ACTIVE DUTY FOR AT LEAST 179 DAYS.

    (a) In General.--Paragraph (2) of section 72(t) of the Internal 
Revenue Code of 1986 (relating to 10-percent additional tax on early 
distributions from qualified retirement plans) is amended by adding at 
the end the following new subparagraph:
                    ``(G) Distributions from retirement plans to 
                individuals called to active duty.--
                            ``(i) In general.--Any qualified reservist 
                        distribution.
                            ``(ii) Qualified reservist distribution.--
                        For purposes of this subparagraph, the term 
                        `qualified reservist distribution' means any 
                        distribution to an individual if--
                                    ``(I) such distribution is from any 
                                qualified retirement plan (as defined 
                                in section 4974(c)),
                                    ``(II) such individual was (by 
                                reason of being a member of a reserve 
                                component (as defined in section 101 of 
                                title 37, United States Code)), ordered 
                                or called to active duty for a period 
                                in excess of 179 days or for an 
                                indefinite period, and
                                    ``(III) such distribution is made 
                                during the period beginning on the date 
of such order or call and ending at the close of the active duty 
period.
                            ``(iii) Application of subparagraph.--This 
                        subparagraph applies to individuals ordered or 
                        called to active duty after September 11, 2001, 
                        and before September 12, 2005.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to distributions after September 11, 2001.

SEC. 2103. INCOME TAX WITHHOLDING ON DIFFERENTIAL WAGE PAYMENTS.

    (a) In General.--Section 3401 of the Internal Revenue Code of 1986 
(relating to definitions) is amended by adding at the end the following 
new subsection:
    ``(i) Differential Wage Payments to Active Duty Members of the 
Uniformed Services.--
            ``(1) In general.--For purposes of subsection (a), any 
        differential wage payment shall be treated as a payment of 
        wages by the employer to the employee.
            ``(2) Differential wage payment.--For purposes of paragraph 
        (1), the term `differential wage payment' means any payment 
        which--
                    ``(A) is made by an employer to an individual with 
                respect to any period during which the individual is 
                performing service in the uniformed services while on 
                active duty for a period of more than 30 days, and
                    ``(B) represents all or a portion of the wages the 
                individual would have received from the employer if the 
                individual were performing service for the employer.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to remuneration paid after December 31, 2004.

SEC. 2104. TREATMENT OF DIFFERENTIAL WAGE PAYMENTS FOR RETIREMENT PLAN 
              PURPOSES.

    (a) Pension Plans.--
            (1) In general.--Section 414(u) of the Internal Revenue 
        Code of 1986 (relating to special rules relating to veterans' 
        reemployment rights under USERRA) is amended by adding at the 
        end the following new paragraph:
            ``(11) Treatment of differential wage payments.--
                    ``(A) In general.--Except as provided in this 
                paragraph, for purposes of applying this title to a 
                retirement plan to which this subsection applies--
                            ``(i) an individual receiving a 
                        differential wage payment shall be treated as 
                        an employee of the employer making the payment,
                            ``(ii) the differential wage payment shall 
                        be treated as compensation, and
                            ``(iii) the plan shall not be treated as 
                        failing to meet the requirements of any 
                        provision described in paragraph (1)(C) by 
                        reason of any contribution which is based on 
                        the differential wage payment.
                    ``(B) Special rule for distributions.--
                            ``(i) In general.--Notwithstanding 
                        subparagraph (A)(i), for purposes of section 
                        401(k)(2)(B)(i)(I), 403(b)(7)(A)(ii), 
                        403(b)(11)(A), or 457(d)(1)(A)(ii), an 
                        individual shall be treated as having been 
                        severed from employment during any period the 
                        individual is performing service in the 
                        uniformed services described in section 
                        3401(i)(2)(A).
                            ``(ii) Limitation.--If an individual elects 
                        to receive a distribution by reason of clause 
                        (i), the plan shall provide that the individual 
                        may not make an elective deferral or employee 
                        contribution during the 6-month period 
                        beginning on the date of the distribution.
                    ``(C) Nondiscrimination requirement.--Subparagraph 
                (A)(iii) shall apply only if all employees of an 
                employer performing service in the uniformed services 
                described in section 3401(i)(2)(A) are entitled to 
                receive differential wage payments on reasonably 
                equivalent terms and, if eligible to participate in a 
                retirement plan maintained by the employer, to make 
                contributions based on the payments. For purposes of 
                applying this subparagraph, the provisions of 
                paragraphs (3), (4), and (5), of section 410(b) shall 
                apply.
                    ``(D) Differential wage payment.--For purposes of 
                this paragraph, the term `differential wage payment' 
                has the meaning given such term by section 
                3401(i)(2).''.
            (2) Conforming amendment.--The heading for section 414(u) 
        of such Code is amended by inserting ``and to Differential Wage 
        Payments to Members on Active Duty'' after ``USERRA''.
    (b) Differential Wage Payments Treated as Compensation for 
Individual Retirement Plans.--Section 219(f)(1) of the Internal Revenue 
Code of 1986 (defining compensation) is amended by adding at the end 
the following new sentence: ``The term `compensation' includes any 
differential wage payment (as defined in section 3401(i)(2)).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2004.
    (d) Provisions Relating to Plan Amendments.--
            (1) In general.--If this subsection applies to any plan or 
        annuity contract amendment--
                    (A) such plan or contract shall be treated as being 
                operated in accordance with the terms of the plan or 
                contract during the period described in paragraph 
                (2)(B)(i), and
                    (B) except as provided by the Secretary of the 
                Treasury, such plan shall not fail to meet the 
                requirements of the Internal Revenue Code of 1986 or 
                the Employee Retirement Income Security Act of 1974 by 
reason of such amendment.
            (2) Amendments to which section applies.--
                    (A) In general.--This subsection shall apply to any 
                amendment to any plan or annuity contract which is 
                made--
                            (i) pursuant to any amendment made by this 
                        section, and
                            (ii) on or before the last day of the first 
                        plan year beginning on or after January 1, 
                        2007.
                    (B) Conditions.--This subsection shall not apply to 
                any plan or annuity contract amendment unless--
                            (i) during the period beginning on the date 
                        the amendment described in subparagraph (A)(i) 
                        takes effect and ending on the date described 
                        in subparagraph (A)(ii) (or, if earlier, the 
                        date the plan or contract amendment is 
                        adopted), the plan or contract is operated as 
                        if such plan or contract amendment were in 
                        effect; and
                            (ii) such plan or contract amendment 
                        applies retroactively for such period.

SEC. 2105. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT AND READY 
              RESERVE-NATIONAL GUARD REPLACEMENT EMPLOYEE CREDIT.

    (a) Ready Reserve-National Guard Credit.--
            (1) In general.--Subpart D of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 (relating to 
        business-related credits) is amended by inserting after section 
        45I the following new section:

``SEC. 45J. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT.

    ``(a) General Rule.--For purposes of section 38, in the case of an 
eligible taxpayer, the Ready Reserve-National Guard employee credit 
determined under this section for any taxable year with respect to each 
Ready Reserve-National Guard employee of such taxpayer is an amount 
equal to 50 percent of the lesser of--
            ``(1) the actual compensation amount with respect to such 
        employee for such taxable year, or
            ``(2) $30,000.
    ``(b) Definition of Actual Compensation Amount.--For purposes of 
this section, the term `actual compensation amount' means the amount of 
compensation paid or incurred by an eligible taxpayer with respect to a 
Ready Reserve-National Guard employee on any day when the employee was 
absent from employment for the purpose of performing qualified active 
duty.
    ``(c) Limitations.--No credit shall be allowed with respect to any 
day that a Ready Reserve-National Guard employee who performs qualified 
active duty was not scheduled to work (for reason other than to 
participate in qualified active duty).
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Eligible taxpayer.--
                    ``(A) In general.--The term `eligible taxpayer' 
                means a small business employer.
                    ``(B) Small business employer.--
                            ``(i) In general.--The term `small business 
                        employer' means, with respect to any taxable 
                        year, any employer who employed an average of 
                        50 or fewer employees on business days during 
                        such taxable year.
                            ``(ii) Controlled groups.--For purposes of 
                        clause (i), all persons treated as a single 
                        employer under subsection (b), (c), (m), or (o) 
                        of section 414 shall be treated as a single 
                        employer.
            ``(2) Qualified active duty.--The term `qualified active 
        duty' means--
                    ``(A) active duty under an order or call for a 
                period in excess of 179 days or for an indefinite 
                period, other than the training duty specified in 
                section 10147 of title 10, United States Code (relating 
                to training requirements for the Ready Reserve), or 
                section 502(a) of title 32, United States Code 
                (relating to required drills and field exercises for 
                the National Guard), in connection with which an 
                employee is entitled to reemployment rights and other 
                benefits or to a leave of absence from employment under 
                chapter 43 of title 38, United States Code, and
                    ``(B) hospitalization incident to such duty.
            ``(3) Compensation.--The term `compensation' means any 
        remuneration for employment, whether in cash or in kind, which 
        is paid or incurred by a taxpayer and which is deductible from 
        the taxpayer's gross income under section 162(a)(1).
            ``(4) Ready reserve-national guard employee.--The term 
        `Ready Reserve-National Guard employee' means an employee who 
        is a member of the Ready Reserve of a reserve component of an 
        Armed Force of the United States as described in sections 10142 
        and 10101 of title 10, United States Code.
            ``(5) Certain rules to apply.--Rules similar to the rules 
        of section 52 shall apply.
            ``(e) Termination.--This section shall not apply to any 
        amount paid or incurred after December 31, 2005.''.
            (2) Credit to be part of general business credit.--
        Subsection (b) of section 38 of the Internal Revenue Code of 
        1986 (relating to general business credit) is amended by 
        striking ``plus'' at the end of paragraph (18), by striking the 
        period at the end of paragraph (19) and inserting ``, plus'', 
        and by adding at the end the following:
            ``(20) the Ready Reserve-National Guard employee credit 
        determined under section 45J(a).''.
            (3) Denial of double benefit.--Section 280C(a) of the 
        Internal Revenue Code of 1986 (relating to rule for employment 
        credits) is amended by inserting ``45J(a),'' after ``45A(a),''.
            (4) Conforming amendment.--The table of sections for 
        subpart D of part IV of subchapter A of chapter 1 of the 
        Internal Revenue Code of 1986 is amended by inserting after the 
        item relating to section 45I the following:

                              ``Sec. 45J. Ready Reserve-National Guard 
                                        employee credit.''.
            (5) Effective date.--The amendments made by this subsection 
        shall apply to amounts paid or incurred after September 30, 
        2004, in taxable years ending after such date.
    (b) Ready Reserve-National Guard Replacement Employee Credit.--
            (1) In general.--Paragraph (1) of section 51(d) of the 
        Internal Revenue Code of 1986 (relating to members of targeted 
        groups) is amended by striking ``or'' at the end of 
        subparagraph (G), by striking the period at the end of 
        subparagraph (H) and inserting ``, or'' and by adding at the 
        end the following new subparagraph:
                    ``(I) a qualified replacement employee.''.
            (2) Qualified replacement employee.--Section 51(d) of the 
        Internal Revenue Code of 1986 is amended by redesignating 
        paragraphs (10), (11), and (12) as paragraphs (11), (12), and 
        (13), respectively, and by inserting after paragraph (9) the 
        following new paragraph:
            ``(10) Qualified replacement employee.--
                    ``(A) In general.--The term `qualified replacement 
                employee' means an individual who is certified by the 
                designated local agency as being hired by an eligible 
                taxpayer to replace a Ready Reserve-National Guard 
                employee of such taxpayer, but only with respect to the 
                period during which such Ready Reserve-National Guard 
                employee participates in qualified active duty, 
                including time spent in travel status.
                    ``(B) General definitions and special rules.--For 
                purposes of this paragraph--
                            ``(i) Eligible taxpayer.--The term 
                        `eligible taxpayer' means a small business 
                        employer.
                            ``(ii) Small business employer.--
                                    ``(I) In general.--The term `small 
                                business employer' means, with respect 
                                to any taxable year, any employer who 
                                employed an average of 50 or fewer 
                                employees on business days during such 
                                taxable year.
                                    ``(II) Controlled groups.--For 
                                purposes of subclause (I), all persons 
                                treated as a single employer under 
                                subsection (b), (c), (m), or (o) of 
                                section 414 shall be treated as a 
                                single employer.
                            ``(iii) Ready reserve-national guard 
                        employee.--The term `Ready Reserve-National 
                        Guard employee' has the meaning given such term 
                        by section 45J(d)(3).
                            ``(iv) Qualified active duty.--The term 
                        `qualified active duty' has the meaning given 
                        such term by section 45J(d)(1).
                    ``(C) Disallowance for failure to comply with 
                employment or reemployment rights of members of the 
                reserve components of the armed forces of the united 
                states.--No credit shall be allowed under subsection 
                (a) by reason of paragraph (1)(I) to a taxpayer for--
                            ``(i) any taxable year, beginning after the 
                        date of the enactment of this section, in which 
                        the taxpayer is under a final order, judgment, 
                        or other process issued or required by a 
                        district court of the United States under 
                        section 4323 of title 38 of the United States 
                        Code with respect to a violation of chapter 43 
                        of such title, and
                            ``(ii) the 2 succeeding taxable years.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to amounts paid or incurred to an individual who 
        begins work for the employer after September 30, 2004.
    (c) Study by GAO.--
            (1) In general.--The Comptroller General of the United 
        States shall study the following:
                    (A) What, if any, problems exist in recruiting 
                individuals for a reserve component of an Armed Force 
                of the United States.
                    (B) What, if any, problems exist as the result of 
                providing differential wage payments (as defined in 
                section 3401(i)(2) of the Internal Revenue Code of 1986 
                (as added by this Act)) to individuals described in 
                subparagraph (A) in the recruitment and retention of 
                individuals as regular members of the Armed Forces of 
                the United States.
                    (C) Whether the credit allowed under section 45J of 
                the Internal Revenue Code of 1986 (as added by this 
                section) is an effective incentive for the hiring and 
                retention of employees who are individuals described in 
                subparagraph (A) and whether there exists any 
                compliance problems in the administration of such 
                credit.
            (2) Report.--The Comptroller General of the United States 
        shall report on the results of the study required under 
        paragraph (1) to the Committee of Finance of the Senate and the 
        Committee on Ways and Means of the House of Representatives 
        before July 1, 2005.

SEC. 2106. NONREDUCTION IN PAY WHILE FEDERAL EMPLOYEE IS PERFORMING 
              ACTIVE SERVICE IN THE UNIFORMED SERVICES OR NATIONAL 
              GUARD.

    (a) Preservation of Pay Level.--
            (1) Requirements.--Subchapter IV of chapter 55 of title 5, 
        United States Code, is amended by adding at the end the 
        following:
``Sec. 5538. Nonreduction in pay while serving in the uniformed 
              services or National Guard
    ``(a) An employee who is absent from a position of employment with 
the Federal Government in order to perform active duty in the uniformed 
services pursuant to a call or order to active duty under a provision 
of law referred to in section 101(a)(13)(B) of title 10 shall be 
entitled, while serving on active duty, to receive, for each pay period 
described in subsection (b), an amount equal to the amount by which--
            ``(1) the amount of basic pay which would otherwise have 
        been payable to such employee for such pay period if such 
        employee's civilian employment with the Government had not been 
        interrupted by that service, exceeds (if at all)
            ``(2) the amount of pay and allowances which (as determined 
        under subsection (d))--
                    ``(A) is payable to such employee for that service; 
                and
                    ``(B) is allocable to such pay period.
    ``(b)(1) Amounts under this section shall be payable with respect 
to each pay period (which would otherwise apply if the employee's 
civilian employment had not been interrupted)--
            ``(A) during which such employee is entitled to 
        reemployment rights under chapter 43 of title 38 with respect 
        to the position from which such employee is absent (as referred 
        to in subsection (a)); and
            ``(B) for which such employee does not otherwise receive 
        basic pay (including by taking any annual, military, or other 
        paid leave) to which such employee is entitled by virtue of 
        such employee's civilian employment with the Government.
    ``(2) For purposes of this section, the period during which an 
employee is entitled to reemployment rights under chapter 43 of title 
38--
            ``(A) shall be determined disregarding the provisions of 
        section 4312(d) of title 38; and
            ``(B) shall include any period of time specified in section 
        4312(e) of title 38 within which an employee may report or 
        apply for employment or reemployment following completion of 
        service on active duty to which called or ordered as described 
        in subsection (a).
    ``(c) Any amount payable under this section to an employee shall be 
paid--
            ``(1) by such employee's employing agency;
            ``(2) from the appropriation or fund which would be used to 
        pay the employee if such employee were in a pay status; and
            ``(3) to the extent practicable, at the same time and in 
        the same manner as would basic pay if such employee's civilian 
        employment had not been interrupted.
    ``(d) The Office of Personnel Management shall, in consultation 
with Secretary of Defense, prescribe any regulations necessary to carry 
out the preceding provisions of this section.
    ``(e)(1) The head of each agency referred to in section 
2302(a)(2)(C)(ii) shall, in consultation with the Office, prescribe 
procedures to ensure that the rights under this section apply to the 
employees of such agency.
    ``(2) The Administrator of the Federal Aviation Administration 
shall, in consultation with the Office, prescribe procedures to ensure 
that the rights under this section apply to the employees of that 
agency.
    ``(f) For purposes of this section--
            ``(1) the terms `employee', `Federal Government', and 
        `uniformed services' have the same respective meanings as given 
        them in section 4303 of title 38;
            ``(2) the term `employing agency', as used with respect to 
        an employee entitled to any payments under this section, means 
        the agency or other entity of the Government (including an 
        agency referred to in section 2302(a)(2)(C)(ii)) with respect 
        to which such employee has reemployment rights under chapter 43 
        of title 38; and
            ``(3) the term `basic pay' includes any amount payable 
        under section 5304.''.
            (2) Clerical amendment.--The table of sections for chapter 
        55 of title 5, United States Code, is amended by inserting 
        after the item relating to section 5537 the following:

``5538. Nonreduction in pay while serving in the uniformed services or 
                            National Guard.''.
    (b) Effective Date.--
            (1) In general.--Section 5538 of title 5, United States 
        Code (as added by subsection (a)), shall apply with respect to 
        pay periods (as described in subsection (b) of such section) 
        beginning on or after the date of the enactment of this Act.
            (2) Conditional retroactive application.--
                    (A) Section 5538 of title 5, United States Code (as 
                added by subsection (a)), shall apply with respect to 
                pay periods (as described in subsection (b) of such 
                section) beginning on or after October 11, 2002 through 
                the date of the enactment of this Act, subject to the 
                availability of appropriations.
                    (B) There are authorized to be appropriated 
                $100,000,000 for purposes of subparagraph (A).

  TITLE XXII--NATIONAL GUARD AND RESERVE COMPREHENSIVE HEALTH BENEFITS

SEC. 2201. SHORT TITLE.

    This title may be cited as the ``National Guard and Reserve 
Comprehensive Health Benefits Act of 2005''.

SEC. 2202. FINDINGS.

    Congress makes the following findings:
            (1) According to the results of a Department of Defense 
        survey conducted in 2000, 20 percent of members of the reserve 
        components of the Armed Forces, including 40 percent of junior 
        enlisted personnel, had no health care coverage while not on 
        active duty.
            (2) In 2004, Congress passed legislation authorizing 
        reservists to obtain access to the military TRICARE health care 
        program for one year for each 90-day period of active duty 
        service. While the enactment of this law was an important step 
        forward, the law only provides eligibility for health care 
        after active duty has been completed and fails to provide the 
        complete health care coverage necessary to ensure that 
        reservists are medically ready to answer a future call to 
        active duty.
            (3) In September 2004, the Government Accountability 
        Office, after reviewing pre-deployment health screenings of 
        over 240,000 reservists, reported finding that nearly 7 percent 
        of activated reservists were categorized as nondeployable for 
        health reasons, including nearly 10 percent of the Army 
        Reserve.

SEC. 2203. TRICARE COVERAGE FOR MEMBERS OF THE READY RESERVE.

    (a) Eligibility.--Section 1076b of title 10, United States Code, is 
amended to read as follows:
``Sec. 1076b. TRICARE program: coverage for members of the Ready 
              Reserve
    ``(a) Eligibility.--Members of the Selected Reserve of the Ready 
Reserve of a reserve component of the armed forces and members of the 
Individual Ready Reserve described in subsection 10144(b) of this title 
are eligible, subject to subsection (h)(1), to enroll in the following 
TRICARE program options:
            ``(1) TRICARE Prime.
            ``(2) TRICARE Standard.
    ``(b) Types of Coverage.--(1) A member eligible under subsection 
(a) may enroll for either of the following types of coverage:
            ``(A) Self alone coverage.
            ``(B) Self and family coverage.
    ``(2) An enrollment by a member for self and family covers the 
member and the dependents of the member who are described in 
subparagraph (A), (D), or (I) of section 1072(2) of this title.
    ``(c) Open Enrollment Periods.--The Secretary of Defense shall 
provide for at least one open enrollment period each year. During an 
open enrollment period, a member eligible under subsection (a) may 
enroll in the TRICARE program or change or terminate an enrollment in 
the TRICARE program.
    ``(d) Scope of Care.--(1) A member and the dependents of a member 
enrolled in the TRICARE program under this section shall be entitled to 
the same benefits under this chapter as a member of the uniformed 
services on active duty or a dependent of such a member, respectively.
    ``(2) Section 1074(c) of this title shall apply with respect to a 
member enrolled in the TRICARE program under this section.
    ``(e) Premiums.--(1) The Secretary of Defense shall charge premiums 
for coverage pursuant to enrollments under this section. The Secretary 
shall prescribe for each of the TRICARE program options referred to in 
subsection (a) a premium for self alone coverage and a premium for self 
and family coverage.
    ``(2) The monthly amount of the premium in effect for a month for a 
type of coverage under this section shall be the amount equal to 28 
percent of the total amount determined by the Secretary on an 
appropriate actuarial basis as being reasonable for the coverage.
    ``(3) The premiums payable by a member under this subsection may be 
deducted and withheld from basic pay payable to the member under 
section 204 of title 37 or from compensation payable to the member 
under section 206 of such title. The Secretary shall prescribe the 
requirements and procedures applicable to the payment of premiums by 
members not entitled to such basic pay or compensation.
    ``(4) Amounts collected as premiums under this subsection shall be 
credited to the appropriation available for the Defense Health Program 
Account under section 1100 of this title, shall be merged with sums in 
such Account that are available for the fiscal year in which collected, 
and shall be available under subsection (b) of such section for such 
fiscal year.
    ``(f) Other Charges.--A person who receives health care pursuant to 
an enrollment in a TRICARE program option under this section, including 
a member who receives such health care, shall be subject to the same 
deductibles, copayments, and other nonpremium charges for health care 
as apply under this chapter for health care provided under the same 
TRICARE program option to dependents described in subparagraph (A), 
(D), or (I) of section 1072(2) of this title.
    ``(g) Termination of Enrollment.--(1) A member enrolled in the 
TRICARE program under this section may terminate the enrollment only 
during an open enrollment period provided under subsection (c), except 
as provided in subsection (h)(2).
    ``(2) An enrollment of a member for self alone or for self and 
family under this section shall terminate on the first day of the first 
month beginning after the date on which the member ceases to be 
eligible under subsection (a).
    ``(3) The enrollment of a member under this section may be 
terminated on the basis of failure to pay the premium charged the 
member under this section.
    ``(h) Relationship to Transition TRICARE Coverage Upon Separation 
From Active Duty.--(1) A member may not enroll in the TRICARE program 
under this section while entitled to transitional health care under 
subsection (a) of section 1145 of this title or while authorized to 
receive health care under subsection (c) of such section.
    ``(2) A member who enrolls in the TRICARE program under this 
section within 90 days after the date of the termination of the 
member's entitlement or eligibility to receive health care under 
subsection (a) or (c) of section 1145 of this title may terminate the 
enrollment at any time within one year after the date of the 
enrollment.
    ``(i) Regulations.--The Secretary of Defense, in consultation with 
the other administering Secretaries, shall prescribe regulations for 
the administration of this section.''.
    (b) Definitions.--
            (1) Tricare options.--Section 1072 of title 10, United 
        States Code, is amended by adding at the end the following new 
        paragraphs:
            ``(10) The term `TRICARE Prime' means the managed care 
        option of the TRICARE program.
            ``(11) The term `TRICARE Standard' means the Civilian 
        Health and Medical Program of the Uniformed Services option 
        under the TRICARE program.''.
            (2) Conforming amendments.--
                    (A) Section 1076d(f) of such title is amended--
                            (i) by striking ``(f) Definitions.--'' and 
                        all that follows through ``(1) The'' and 
                        inserting ``(f) Immediate Family Defined.--In 
                        this section, the''; and
                            (ii) by striking paragraph (2).
                    (B) Section 1097a(f) of such title is amended by 
                striking ``Definitions.--In this section:'' and all 
                that follows through ``(2) The term'' and inserting 
                ``Catchment Area Defined.--In this section, the term''.
    (c) Period for Implementation.--Section 1076b of title 10, United 
States Code (as added by subsection (a)), shall apply with respect to 
months that begin on or after the date that is 180 days after the date 
of the enactment of this Act.
    (d) Coordination With Overlapping Authority.--
            (1) Repeal.--Effective one year after the date of the 
        enactment of this Act--
                    (A) section 1076d of title 10, United States Code, 
                is repealed; and
                    (B) the table of sections at the beginning of 
                chapter 55 of such title is amended by striking the 
                item relating to section 1076d.
            (2) Transition coverage.--The Secretary of Defense shall 
        provide for an orderly transition to TRICARE coverage under 
        section 1076b of title 10, United States Code (as amended by 
        subsection (a)), for persons enrolled for TRICARE coverage 
        under section 1076d of such title before the repeal of such 
        section takes effect under paragraph (1)(A).

SEC. 2204. ALLOWANCE FOR CONTINUATION OF NON-TRICARE HEALTH BENEFITS 
              COVERAGE FOR CERTAIN MOBILIZED RESERVES.

    (a) Payment of Premiums.--
            (1) Requirement to pay premiums.--Chapter 55 of title 10, 
        United States Code, is amended by inserting after section 1078a 
        the following new section:
``Sec. 1078b. Continuation of non-TRICARE health benefits plan coverage 
              for certain Reserves called or ordered to active duty and 
              their dependents
    ``(a) Payment of Premiums.--The Secretary concerned shall pay the 
applicable premium to continue in force any qualified health benefits 
plan coverage for an eligible reserve component member for the benefits 
coverage continuation period if timely elected by the member in 
accordance with regulations prescribed under subsection (j).
    ``(b) Eligible Member.--A member of a reserve component is eligible 
for payment of the applicable premium for continuation of qualified 
health benefits plan coverage under subsection (a) while serving on 
active duty pursuant to a call or order issued under a provision of law 
referred to in section 101(a)(13)(B) of this title during a war or 
national emergency declared by the President or Congress.
    ``(c) Qualified Health Benefits Plan Coverage.--For the purposes of 
this section, health benefits plan coverage for a member called or 
ordered to active duty is qualified health benefits plan coverage if--
            ``(1) the coverage was in force on the date on which the 
        Secretary notified the member that issuance of the call or 
        order was pending or, if no such notification was provided, the 
        date of the call or order;
            ``(2) on such date, the coverage applied to the member and 
        dependents of the member described in subparagraph (A), (D), or 
        (I) of section 1072(2) of this title; and
            ``(3) the coverage has not lapsed.
    ``(d) Applicable Premium.--The applicable premium payable under 
this section for continuation of health benefits plan coverage in the 
case of a member is the amount of the premium payable by the member for 
the coverage of the member and dependents.
    ``(e) Maximum Amount.--The total amount that may be paid for the 
applicable premium of a health benefits plan for a member under this 
section in a fiscal year may not exceed the amount determined by 
multiplying--
            ``(1) the sum of one plus the number of the member's 
        dependents covered by the health benefits plan, by
            ``(2) the per capita cost of providing TRICARE coverage and 
        benefits for dependents under this chapter for such fiscal 
        year, as determined by the Secretary of Defense.
    ``(f) Benefits Coverage Continuation Period.--The benefits coverage 
continuation period under this section for qualified health benefits 
plan coverage in the case of a member called or ordered to active duty 
is the period that--
            ``(1) begins on the date of the call or order; and
            ``(2) ends on the earlier of the date on which--
                    ``(A) the member's eligibility for transitional 
                health care under section 1145(a) of this title 
                terminates under paragraph (3) of such section; or
                    ``(B) the member elects to terminate the continued 
                qualified health benefits plan coverage of the 
                dependents of the member.
    ``(g) Extension of Period of COBRA Coverage.--Notwithstanding any 
other provision of law--
            ``(1) any period of coverage under a COBRA continuation 
        provision (as defined in section 9832(d)(1) of the Internal 
        Revenue Code of 1986) for a member under this section shall be 
        deemed to be equal to the benefits coverage continuation period 
        for such member under this section; and
            ``(2) with respect to the election of any period of 
        coverage under a COBRA continuation provision (as so defined), 
        rules similar to the rules under section 4980B(f)(5)(C) of such 
        Code shall apply.
    ``(h) Nonduplication of Benefits.--A dependent of a member who is 
eligible for benefits under qualified health benefits plan coverage 
paid on behalf of a member by the Secretary concerned under this 
section is not eligible for benefits under the TRICARE program during a 
period of the coverage for which so paid.
    ``(i) Revocability of Election.--A member who makes an election 
under subsection (a) may revoke the election. Upon such a revocation, 
the member's dependents shall become eligible for benefits under the 
TRICARE program as provided for under this chapter.
    ``(j) Regulations.--The Secretary of Defense shall prescribe 
regulations for carrying out this section. The regulations shall 
include such requirements for making an election of payment of 
applicable premiums as the Secretary considers appropriate.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
item relating to section 1078a the following new item:

``1078b. Continuation of non-TRICARE health benefits plan coverage for 
                            certain Reserves called or ordered to 
                            active duty and their dependents.''.
    (b) Applicability.--Section 1078b of title 10, United States Code 
(as added by subsection (a)), shall apply with respect to calls or 
orders of members of reserve components of the Armed Forces to active 
duty as described in subsection (b) of such section, that are issued by 
the Secretary of a military department on or after the date of the 
enactment of this Act.

    TITLE XXIII--IMPROVED DEATH GRATUITY AND OTHER SURVIVOR BENEFITS

SEC. 2301. FINDINGS.

    Congress makes the following findings:
            (1) No amount of money can make up for the loss of a loved 
        one. But the United States can, and is obliged to, honor the 
        service of lost servicemembers by ensuring that their families 
        are financially supported at the time of great need occasioned 
        by those losses.
            (2) The Federal Government owes families of servicemembers 
        dying on duty a death gratuity that is sufficient to help each 
        family pay for costs associated with the death of the 
        servicemember and to help the members of the family adjust to 
        the financial instability that results from termination of the 
        servicemember's income.
            (3) Survivors of fallen military personnel who are eligible 
        for both a Survivor Benefit Plan annuity and Dependency and 
        Indemnity Compensation suffer a loss of income as a result of 
        the law that requires a reduction in the Survivor Benefit Plan 
        annuity by the amount of the Dependency and Indemnity 
        Compensation. This unjust prohibition against concurrent 
        receipt of two independent benefits prevents the United States 
        from fulfilling its obligation to the survivors during the time 
        of financial need that is occasioned by the deaths of the 
        fallen servicemembers.

SEC. 2302. INCREASED AMOUNT OF DEATH GRATUITY.

    (a) Amount of Death Gratuity.--Section 1478(a) of title 10, United 
States Code, is amended by striking ``$12,000'' in the first sentence 
and inserting ``$100,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as of September 11, 2001, and shall apply with respect to 
deaths occurring on or after that date.

SEC. 2303. DEATH GRATUITY EXCLUDABLE FROM FEDERAL INCOME TAXATION.

    (a) In General.--Paragraph (1) of section 134(b) of the Internal 
Revenue Code of 1986 (relating to certain military benefits) is amended 
by adding at the end the following new flush sentence:
        ``Such term shall include any death gratuity to which the 
        limitation in section 1478(a) of title 10, United States Code, 
        applies.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to amounts paid with respect to deaths occurring on or after 
September 11, 2001.

SEC. 2304. REPEAL OF REQUIREMENT OF REDUCTION OF SBP SURVIVOR ANNUITIES 
              BY DEPENDENCY AND INDEMNITY COMPENSATION.

    (a) Repeal.--Subchapter II of chapter 73 of title 10, United States 
Code is amended--
            (1) in section 1450(c)(1), by inserting after ``to whom 
        section 1448 of this title applies'' the following: ``(except 
        in the case of a death as described in subsection (d) or (f) of 
        such section)''; and
            (2) in section 1451(c)--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively.
    (b) Prohibition on Retroactive Benefits.--No benefits may be paid 
to any person for any period before the effective date provided under 
subsection (e) by reason of the amendments made by subsection (a).
    (c) Prohibition on Recoupment of Certain Amounts Previously 
Refunded to SBP Recipients.--A surviving spouse who is or has been in 
receipt of an annuity under the Survivor Benefit Plan under subchapter 
II of chapter 73 of title 10, United States Code, that is in effect 
before the effective date provided under subsection (e) and that is 
adjusted by reason of the amendments made by subsection (a) and who has 
received a refund of retired pay under section 1450(e) of title 10, 
United States Code, shall not be required to repay such refund to the 
United States.
    (d) Reconsideration of Optional Annuity.--Section 1448(d)(2) of 
title 10, United States Code, is amended by adding at the end the 
following new sentences: ``The surviving spouse, however, may elect to 
terminate an annuity under this subparagraph in accordance with 
regulations prescribed by the Secretary concerned. Upon such an 
election, payment of an annuity to dependent children under this 
subparagraph shall terminate effective on the first day of the first 
month that begins after the date on which the Secretary concerned 
receives notice of the election, and, beginning on that day, an annuity 
shall be paid to the surviving spouse under paragraph (1) instead.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on the later of--
            (1) the first day of the first month that begins after the 
        date of the enactment of this Act; or
            (2) the first day of the fiscal year that begins in the 
        calendar year in which this Act is enacted.

SEC. 2305. EFFECTIVE DATE FOR PAID-UP COVERAGE UNDER SURVIVOR BENEFIT 
              PLAN.

    Section 1452(j) of title 10, United States Code, is amended by 
striking ``October 1, 2008'' and inserting ``October 1, 2005''.

                    DIVISION C--TAXPAYER PROTECTION

             TITLE XXXI--FUNDING OF RECONSTRUCTION IN IRAQ

SEC. 3101. FINDINGS.

    Congress makes the following findings:
            (1) The international community's support for Iraq's 
        efforts to reconstruct the infrastructure of Iraq following the 
        overthrow of Saddam Hussein's regime is critical to the 
        achievement of regional and international stability and to the 
protection of national security interests of the United States.
            (2) United States taxpayers have borne a disproportionate 
        burden in supporting the reconstruction of Iraq. The United 
        States Government has committed to providing Iraq with grants 
        of financial assistance worth more than 500 percent more than 
        the grant assistance that has been committed by the governments 
        of all of the rest of the countries of the world combined.
            (3) The disproportionate contribution of the United States 
        to the reconstruction of Iraq has resulted in a commitment of 
        United States resources to reconstruction that otherwise would 
        be available for supporting the efforts of United States 
        military personnel to rid Iraq and Afghanistan of hostile 
        insurgents.
            (4) Iraq possesses the world's second largest reserve of 
        crude oil, with 112,000,000,000 barrels, and administration 
        officials have stated on several occasions that revenue from 
        Iraq's oil industry could fund a significant portion of the 
        costs of the reconstruction of Iraq.

SEC. 3102. REPORT ON ADDITIONAL NEEDS FOR FUNDING MILITARY AND 
              RECONSTRUCTION EFFORTS.

    (a) Requirement for Report.--Whenever the President submits to 
Congress a request for a supplemental appropriation of funds for use in 
connection with United States military or reconstruction efforts in 
Iraq, the President shall submit to the chairmen and ranking members of 
the appropriate committees of Congress in accordance with this section 
a report on the status of United States financial commitments to the 
reconstruction of Iraq.
    (b) Content.--The report under subsection (a) shall include the 
following information:
            (1) An estimate of the amount of the United States 
        Government funds spent for the reconstruction of Iraq between 
        March 19, 2003, and the date of the report that is attributable 
        to tax revenue collected from United States taxpayers.
            (2) An assessment of the activities funded by that amount, 
        together with a discussion of the results that such activities 
        have achieved.
            (3) An estimate of the amount of the funds that have been 
        contributed by all other foreign governments for the 
        reconstruction of Iraq and in relief of Iraq's national debt.
            (4) The amount of the crude oil that has been extracted by 
        Iraq since March 19, 2003, and the total value of that oil in 
        United States dollars.
    (c) Time for Report.--The President shall submit the report under 
this section not later than 24 hours after any proposed legislation to 
provide a supplemental appropriation of funds requested by the 
President for use in connection with United States military or 
reconstruction activities in Iraq is introduced in either the Senate or 
the House of Representatives.
    (d) Form.--The report under this section shall be submitted in 
unclassified form.

SEC. 3103. LIMITATION ON USE OF FUNDS.

    (a) Limitation.--Funds appropriated or otherwise available for 
providing financial assistance for reconstruction activities in Iraq 
may not be obligated or expended for providing financial assistance for 
such activities other than in the form of a collateralized loan until 
the President submits to the chairmen and ranking members of the 
appropriate committees of Congress a report that contains the following 
matters:
            (1) The President's plan for seeking increased financial 
        support for reconstruction activities in Iraq from the 
        international community.
            (2) The President's statement that he has determined that--
                    (A) Iraq is incapable of producing sufficient 
                revenues from its oil industry to pay for future 
                reconstruction activities; and
                    (B) it is not in the national security interests of 
                the United States for the United States to provide 
                financial assistance for reconstruction activities in 
                Iraq solely in the form of loans.
    (b) Waiver Authority.--The President may waive the applicability of 
the limitation in subsection (a) to an obligation or expenditure of 
funds if the President determines that the applicability of the 
limitation to such obligation or expenditure would adversely affect the 
physical safety of United States Armed Forces personnel operating in 
Iraq, except that any such waiver shall not take effect before the 
President submits a written notification of the waiver and 
determination to the chairmen and ranking members of the appropriate 
committees of Congress.

SEC. 3104. APPROPRIATE COMMITTEES OF CONGRESS DEFINED.

    In this title, the term ``appropriate committees of Congress'' mean 
the following committees:
            (1) The Committee on Foreign Relations Committee, the 
        Committee on Armed Services, and the Committee on 
        Appropriations of the Senate.
            (2) The Committee on International Relations, the Committee 
        on Armed Services, and the Committee on Appropriations of the 
        House of Representatives.
                                 <all>
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