186 
SEC. 592. ENTREPRENEURIAL SERVICE MEMBERS EM-
POWERMENT TASK FORCE. 
(a) ESTABLISHMENT.—The Secretary of Defense, in 
coordination with the Administrator of the Small Business 
Administration, shall establish a task force to provide time-
ly input to the Secretary and the Administrator with re-
spect to— 
(1) measures that would improve the programs 
and activities of the Department and the Administra-
tion that are designed to address the economic con-
cerns, as well as the business challenges and opportu-
nities, of entrepreneurial service members; and 
(2) measures that would improve the coordina-
tion of the programs and activities relating to entre-
preneurial service members conducted by— 
(A) the National Committee for Employer 
Support of the National Guard and Reserve; 
(B) Veterans Business Outreach Centers; 
(C) Federal procurement entities; and 
(D) any other elements within, or affiliates 
of, the Department of Defense or the Small Busi-
ness Administration. 
(b) PLAN.—The task force shall develop within 90 days 
after its first meeting, and revise as appropriate thereafter, 
a plan for carrying out the duty under subsection (a). 
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(c) CONSULTATION.—In carrying out the duty under 
subsection (a), the task force shall consult with appropriate 
Federal, State, and local agencies and appropriate elements 
of the private sector, including academic institutions and 
industry representatives. 
(d) COMPOSITION.— 
(1) CO-CHAIRS.—The task force shall have two 
co-chairs, one an officer or employee of the Depart-
ment of Defense assigned by the Secretary, and one 
an officer or employee of the Small Business Adminis-
tration assigned by the Administrator. The initial as-
signments shall be made within 60 days after the date 
of the enactment of this Act. 
(2) OTHER
MEMBERS.—The Secretary, in co-
ordination with the Administrator, shall appoint the 
remaining task force members, numbering not less 
than 8 and not more than 15. The selections shall be 
made within 120 days after the date of the enactment 
of this Act. The Secretary, in coordination with the 
Administrator, shall ensure that the task force in-
cludes individuals from both public service and the 
private sector, and that each of the following groups 
is represented on the task force: 
(A) Entrepreneurial service members who 
are owners of small businesses. 
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(B) Small businesses that employ entrepre-
neurial service members as essential employees. 
(C) Associations that further the interests of 
small businesses, members of the reserve compo-
nents of the Armed Forces, or both. 
(D) Any other entities that the Secretary, in 
coordination with the Administrator, considers 
appropriate. 
(3) COMPENSATION.—An individual serving as a 
member of the task force shall not receive compensa-
tion by reason of that service. 
(e) MEETINGS.— 
(1) FREQUENCY.—The task force shall meet not 
less frequently than twice per year. The initial meet-
ing shall be held within 150 days after the date of the 
enactment of this Act. 
(2) QUORUM.—A majority of the members of the 
task force shall constitute a quorum. 
(f) REPORTS.—The task force shall provide to the Sec-
retary and the Administrator not only the minutes of each 
meeting, but also a report of its findings and recommenda-
tions, should there be any, within 90 days of each meeting. 
Not later than 60 days after the receipt of such a report— 
(1) the Secretary shall submit a copy of the re-
port to the Committee on Armed Services of the House 
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189 
of Representatives and the Committee on Armed Serv-
ices of the Senate; and 
(2) the Administrator shall submit a copy of the 
report to the Committee on Small Business of the 
House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate. 
(g) DETAIL OF CERTAIN FEDERAL EMPLOYEES.—The 
Secretary may detail an officer or employee of the Depart-
ment of Defense, and the Administrator may detail an offi-
cer or employee of the Small Business Administration, to 
the task force without additional reimbursement and with-
out interruption or loss of civil status or privilege. 
(h) EXPENSES.—The Department of Defense and the 
Small Business Administration shall share equally in the 
cost of supporting the task force. 
(i) DEFINITION.—In this section, the term ‘‘entrepre-
neurial service member’’ means an individual who is 
both— 
(1) an actual or prospective owner of, or an es-
sential employee of, a small business; and 
(2) a member of a reserve component of the 
Armed Forces. 
(j) TERMINATION.—The task force shall terminate Sep-
tember 30, 2009. 
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190 
SEC. 593. COMPTROLLER GENERAL REPORT ON MILITARY 
CONSCIENTIOUS OBJECTORS. 
(a) REPORT REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Comptroller 
General shall submit to Congress a report concerning the 
frequency and consequences of members of the Armed Forces 
claiming status as a military conscientious objector between 
January 1, 1989, and December 31, 2006. 
(b) CONTENT OF REPORT.—The report shall specifi-
cally address the following: 
(1) The number of all applications for status as 
a military conscientious objector, even if the applica-
tion was not acted on or other discharge given, broken 
down by military branch, including the Coast Guard, 
and regular and reserve components. 
(2) Number of discharges or reassignments given. 
(3) The process used to consider applications, in-
cluding average time frame and any reassignment to 
non-combatant duties while claim pending. 
(4) Reasons for approval or disapproval of ap-
plications. 
(5) Any difference in benefits upon discharge as 
a military conscientious objector compared to other 
discharges. 
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(6) The effect of stop loss provisions in First 
Gulf War and currently, cancellation of orders to 
combat or rear attachment duty while claim pending. 
(7) Pre-war statistical comparisons. 
SEC. 594. COMMISSION ON THE NATIONAL GUARD AND RE-
SERVES. 
(a) SIX-MONTH EXTENSION OF COMMISSION.—Sub-
section (f)(2) of section 513 of the Ronald W. Reagan Na-
tional Defense Authorization Act for Fiscal Year 2005 (Pub-
lic Law 108–375; 118 Stat. 1882) is amended by striking 
‘‘one year’’ and inserting ‘‘18 months’’. 
(b) ADDITIONAL MATTERS TO BE REVIEWED BY COM-
MISSION.—The Commission on the National Guard and Re-
serves shall include among the matters it studies (in addi-
tion to the matters specified in subsection (c) of such section 
513) the following: 
(1) PROVISIONS
OF
H.R. 
5200, 
109TH
CON-
GRESS.—The advisability and feasibility of imple-
menting the provisions of H.R. 5200 of the 109th 
Congress, as introduced in the House of Representa-
tives on April 26, 2006. 
(2) CHIEF OF NATIONAL GUARD BUREAU.—As an 
alternative to implementation of the provisions of the 
bill specified in paragraph (1) that provide for the 
Chief of the National Guard Bureau to be a member 
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of the Joint Chiefs of Staff and to hold the grade of 
general, the advisability and feasibility of providing 
for the Chief of the National Guard Bureau to hold 
the grade of general in the performance of the current 
duties of that office. 
(3) NATIONAL GUARD EQUIPMENT AND FUNDING 
REQUIREMENTS.—The adequacy of the Department of 
Defense processes for defining the equipment and 
funding necessary for the National Guard to conduct 
both its responsibilities under title 10, United States 
Code, and its responsibilities under title 32, United 
States Code, including homeland defense and related 
homeland missions, including as part of such study— 
(A) consideration of the extent to which 
those processes should be developed taking into 
consideration the views of the Chief of the Na-
tional Guard Bureau, as well as the views of the 
54 Adjutant Generals and the views of the Chiefs 
of the Army National Guard and the Air Guard; 
and 
(B) whether there should be an improved 
means by which National Guard equipment re-
quirements are validated by the Joint Chiefs of 
Staff and are considered for funding by the Sec-
retaries of the Army and Air Force. 
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(c) PRIORITY REVIEW AND REPORT.— 
(1) PRIORITY REVIEW.—The Commission on the 
National Guard and Reserves shall carry out its 
study of the matters specified in paragraphs (1) and 
(2) of subsection (b) on a priority basis, with a higher 
priority for matters under those paragraphs relating 
to the grade and functions of the Chief of the National 
Guard Bureau. 
(2) REPORT.—In addition to the reports re-
quired under subsection (f) of section 513 of the Ron-
ald W. Reagan National Defense Authorization Act 
for Fiscal Year 2005 (Public Law 108–375; 118 Stat. 
1882), the Commission shall submit to the Committee 
on Armed Services of the Senate and the Committee 
on Armed Services of the House of Representatives an 
interim report, not later than March 1, 2007, specifi-
cally on the matters covered by paragraph (1). In 
such report, the Commission shall set forth its find-
ings and any recommendations it considers appro-
priate with respect to those matters. 
TITLE VI—COMPENSATION AND 
OTHER PERSONNEL BENEFITS 
Subtitle A—Pay and Allowances 
Sec. 601. Increase in basic pay for fiscal year 2007. 
Sec. 602. Targeted increase in basic pay rates. 
Sec. 603. Conforming change in general and flag officer pay cap to reflect in-
crease in pay cap for Senior Executive Service personnel. 
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Sec. 604. Availability of second basic allowance for housing for certain reserve 
component or retired members serving in support of contingency 
operations. 
Sec. 605. Extension of temporary continuation of housing allowance for depend-
ents of members dying on active duty to spouses who are also 
members. 
Sec. 606. Clarification of effective date of prohibition on compensation for cor-
respondence courses. 
Sec. 607. Payment of full premium for coverage under Servicemembers’ Group 
Life Insurance program during service in Operation Enduring 
Freedom or Operation Iraqi Freedom. 
Subtitle B—Bonuses and Special and Incentive Pays 
Sec. 611. Extension of certain bonus and special pay authorities for reserve 
forces. 
Sec. 612. Extension of bonus and special pay authorities for health care profes-
sionals. 
Sec. 613. Extension of special pay and bonus authorities for nuclear officers. 
Sec. 614. Extension of other bonus, special pay, and separation pay authorities. 
Sec. 615. Expansion of eligibility of dental officers for additional special pay. 
Sec. 616. Increase in maximum annual rate of special pay for Selected Reserve 
health care professionals in critically short wartime specialties. 
Sec. 617. Authority to provide lump sum payment of nuclear officer incentive 
pay. 
Sec. 618. Increase in maximum amount of nuclear career accession bonus. 
Sec. 619. Increase in maximum amount of incentive bonus for transfer between 
armed forces. 
Sec. 620. Clarification regarding members of the Army eligible for bonus for re-
ferring other persons for enlistment in the Army. 
Sec. 621. Pilot program for recruitment bonus for critical health care specialties. 
Sec. 622. Enhancement of temporary program of voluntary separation pay and 
benefits. 
Sec. 623. Additional authorities and incentives to encourage retired members and 
reserve component members to volunteer to serve on active duty 
in high-demand, low-density assignments. 
Subtitle C—Travel and Transportation Allowances 
Sec. 631. Authority to pay costs associated with delivery of motor vehicle to stor-
age location selected by member and subsequent removal of vehi-
cle. 
Sec. 632. Transportation of additional motor vehicle of members on change of 
permanent station to or from nonforeign areas outside the conti-
nental United States. 
Sec. 633. Travel and transportation allowances for transportation of family 
members incident to illness or injury of members. 
Subtitle D—Retired Pay and Survivor Benefits 
Sec. 641. Military Survivor Benefit Plan beneficiaries under insurable interest 
coverage. 
Sec. 642. Retroactive payment of additional death gratuity for certain members 
not previously covered. 
Sec. 643. Equity in computation of disability retired pay for reserve component 
members wounded in action. 
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Subtitle E—Commissary and Nonappropriated Fund Instrumentality Benefits 
Sec. 651. Treatment of price surcharges of tobacco products and certain other 
merchandise sold at commissary stores. 
Sec. 652. Limitation on use of Department of Defense lease authority to under-
mine commissaries and exchanges and other morale, welfare, 
and recreation programs and nonappropriated fund instrumen-
talities. 
Sec. 653. Use of nonappropriated funds to supplement or replace appropriated 
funds for construction of facilities of exchange stores system and 
other nonappropriated fund instrumentalities, military lodging 
facilities, and community facilities. 
Sec. 654. Report on cost effectiveness of purchasing commercial insurance for 
commissary and exchange facilities and facilities of other mo-
rale, welfare, and recreation programs and nonappropriated 
fund instrumentalities. 
Subtitle F—Other Matters 
Sec. 661. Repeal of annual reporting requirement regarding effects of recruitment 
and retention initiatives. 
Sec. 662. Pilot project regarding providing golf carts accessible for disabled per-
sons at military golf courses. 
Sec. 663. Enhanced authority to remit or cancel indebtedness of members of the 
Armed Forces incurred on active duty. 
Subtitle A—Pay and Allowances 
SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2007. 
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The ad-
justment to become effective during fiscal year 2007 re-
quired by section 1009 of title 37, United States Code, in 
the rates of monthly basic pay authorized members of the 
uniformed services shall not be made. 
(b) INCREASE IN BASIC PAY.—Effective on January 
1, 2007, the rates of monthly basic pay for members of the 
uniformed services are increased by 2.7 percent. 
SEC. 602. TARGETED INCREASE IN BASIC PAY RATES. 
Effective on April 1, 2007, the rates of monthly basic 
pay for members of the uniformed services within each pay 
grade are as follows: 
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196 
COMMISSIONED OFFICERS1 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2 
Over 3 
Over 4 
Over 6 
O–102 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
O–9 
0.00 
0.00 
0.00 
0.00 
0.00 
O–8 
8,494.20 
8,772.60 
8,957.10 
9,008.70 
9,239.10 
O–7 
7,058.40 
7,386.00 
7,538.10 
7,658.40 
7,876.80 
O–6 
5,231.40 
5,747.40 
6,124.50 
6,124.50 
6,147.60 
O–5 
4,361.10 
4,912.80 
5,253.00 
5,316.90 
5,529.00 
O–4 
3,762.90 
4,356.00 
4,646.40 
4,711.50 
4,981.20 
O–33 
3,308.40 
3,750.60 
4,048.20 
4,413.60 
4,624.50 
O–23 
2,858.10 
3,255.60 
3,749.70 
3,876.30 
3,956.10 
O–13 
2,481.30 
2,582.40 
3,121.80 
3,121.80 
3,121.80 
Over 8 
Over 10 
Over 12 
Over 14 
Over 16 
O–102 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
O–9 
0.00 
0.00 
0.00 
0.00 
0.00 
O–8 
9,624.00 
9,713.40 
10,079.10 
10,183.80 
10,498.80 
O–7 
8,092.20 
8,341.80 
8,590.80 
8,840.40 
9,624.00 
O–6 
6,411.30 
6,446.10 
6,446.10 
6,812.40 
7,460.10 
O–5 
5,656.20 
5,935.20 
6,140.10 
6,404.40 
6,809.70 
O–4 
5,270.40 
5,630.10 
5,911.20 
6,105.90 
6,217.80 
O–33 
4,856.70 
5,007.00 
5,253.90 
5,382.30 
5,382.30 
O–23 
3,956.10 
3,956.10 
3,956.10 
3,956.10 
3,956.10 
O–13 
3,121.80 
3,121.80 
3,121.80 
3,121.80 
3,121.80 
Over 18 
Over 20 
Over 22 
Over 24 
Over 26 
O–102 
$0.00 
$13,725.90 
$13,793.10 
$14,079.90 
$14,579.70 
O–9 
0.00 
12,005.10 
12,177.60 
12,427.80 
12,863.70 
O–8 
10,954.20 
11,374.50 
11,655.00 
11,655.00 
11,655.00 
O–7 
10,286.10 
10,286.10 
10,286.10 
10,286.10 
10,338.30 
O–6 
7,840.20 
8,220.00 
8,436.30 
8,655.00 
9,080.10 
O–5 
7,002.30 
7,192.80 
7,409.10 
7,409.10 
7,409.10 
O–4 
6,282.90 
6,282.90 
6,282.90 
6,282.90 
6,282.90 
O–33 
5,382.30 
5,382.30 
5,382.30 
5,382.30 
5,382.30 
O–23 
3,956.10 
3,956.10 
3,956.10 
3,956.10 
3,956.10 
O–13 
3,121.80 
3,121.80 
3,121.80 
3,121.80 
3,121.80 
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned 
oficers in pay grades 0–7 through 0–10 may not exceed the rate of pay for level II of the Executive Schedule and 
the actual rate of basic pay for all other officers may not exceed the rate of pay for level V of the Executive 
Schedule. 
2 Subject to the preceding footnote, while serving as Chairman or Vice Chairman of the Joint Chiefs of Staff, 
Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the Ma-
rine Corps, Commandant of the Coast Guard, or commander of a unified or specified combatant command (as de-
fined in section 161(c) of title 10, United States Code, basic pay for this grade is $16,037.40, regardless of cumu-
lative years of service computed under section 205 of title 37, United States Code. 
3 This table does not apply to commissioned officers in pay grade O–1, O–2, or O–3 who have been credited 
with over 4 years of active duty service as an enlisted member or warrant officer. 
COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE 
DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT 
OFFICER 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2 
Over 3 
Over 4 
Over 6 
O–3E 
$0.00 
$0.00 
$0.00 
$4,413.60 
$4,624.50 
O–2E 
0.00 
0.00 
0.00 
3,876.30 
3,956.10 
O–1E 
0.00 
0.00 
0.00 
3,121.80 
3,333.90 
Over 8 
Over 10 
Over 12 
Over 14 
Over 16 
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197 
COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE 
DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT 
OFFICER—Continued 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2 
Over 3 
Over 4 
Over 6 
0–3E 
$4,856.70 
$5,007.00 
$5,253.90 
$5,462.10 
$5,581.20 
0–2E 
4,082.10 
4,294.20 
4,458.90. 
4,581.00 
4,581.00 
0–1E 
3,456.90 
3,582.90 
3,706.80 
3,876.30 
3,876.30 
Over 18 
Over 20 
Over 22 
Over 24 
Over 26 
0–3E 
$5,743.80 
$5,743.80 
$5,743.80 
$5,743.80 
$5,743.80 
0–2E 
4,581.00 
4,581.00 
4,581.00 
4,581.00 
4,581.00 
0–1E 
3,876.30 
3,876.30 
3,876.30 
3,876.30 
3,876.30 
WARRANT OFFICERS1 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2 
Over 3 
Over 4 
Over 6 
W–5 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
W–4 
3,418.80 
3,677.70 
3,783.60 
3,887.40 
4,066.20 
W–3 
3,122.10 
3,252.30 
3,385.50 
3,429.60 
3,569.40 
W–2 
2,762.70 
3023.40 
3,104.40 
3,159.90 
3,338.70 
W–1 
2,425.20 
2,685.00 
2,756.40 
2,904.30 
3,080.10 
Over 8 
Over 10 
Over 12 
Over 14 
Over 16 
W–5 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
W–4 
4,242.90 
4,422.30 
4,691.40 
4,927.80 
5152.80 
W–3 
3,843.90 
4,130.10 
4,265.40 
4,421.40 
4,582.20 
W–2 
3,616.80 
3,754.80 
3,890.70 
4,056.60 
4,186.20 
W–1 
3,337.80 
3,458.40 
3,627.00 
3,792.90 
3,922.80 
Over 18 
Over 20 
Over 22 
Over 24 
Over 26 
W–5 
$0.00 
$6,078.30 
$6,386.10 
$6,615.60 
$6,869.70 
W–4 
5,336.40 
5,516.10 
5,779.50 
5,995.80 
6,242.70 
W–3 
4,870.50 
5,065.80 
5,181.90 
5,306.40 
5,475.30 
W–2 
4,303.80 
4,444.20 
4,536.90 
4,611.30 
4,611.30 
W–1 
4,042.80 
4,188.90 
4,188.90 
4,188.90 
4,188.90 
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for warrant officers 
may not exceed the rate of pay for level V of the Executive Schedule. 
ENLISTED MEMBERS1 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2 
Over 3 
Over 4 
Over 6 
E–92 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
E–8 
0.00 
0.00 
0.00 
0.00 
0.00 
E–7 
2,350.50 
2,565.60 
2,663.70 
2,794.20 
2,895.60 
E–6 
2,033.10 
2,236.80 
2,335.80 
2,431.50 
2,531.70 
E–5 
1,863.00 
1,987.50 
2,083.50 
2,181.90 
2,335.20 
E–4 
1,707.90 
1,795.20 
1,892.40 
1,988.10 
2,073.00 
E–3 
1,541.70 
1,638.90 
1,737.60 
1,737.60 
1,737.60 
E–2 
1,465.80 
1,465.80 
1,465.80 
1,465.80 
1,465.80 
E–13 
1,308.00 
1,308.00 
1,308.00 
1,308.00 
1,308.00 
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198 
ENLISTED MEMBERS1—Continued 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2 
Over 3 
Over 4 
Over 6 
Over 8 
Over 10 
Over 12 
Over 14 
Over 16 
E–92 
$0.00 
$4,130.70 
$4,224.30 
$4,342.50 
$4,481.40 
E–8 
3,381.30 
3,531.00 
3,623.70 
3,734.40 
3,854.70 
E–7 
3,070.20 
3,168.30 
3,326.70 
3,471.00 
3,569.70 
E–6 
2,757.60 
2,845.20 
3,000.00 
3,051.90 
3,089.70 
E–5 
2,483.70 
2,613.90 
2,630.10 
2,630.10 
2,630.10 
E–4 
2,073.00 
2,073.00 
2,073.00 
2,073.00 
2,073.00 
E–3 
1,737.60 
1,737.60 
1,737.60 
1,737.60 
1,737.60 
E–2 
1,465.80 
1,465.80 
1,465.80 
1,465.80 
1,465.80 
E–13 
1,308.00 
1,308.00 
1,308.00 
1,308.00 
1,308.00 
Over 18 
Over 20 
Over 22 
Over 24 
Over 26 
E–92 
$4,620.90 
$4,845.30 
$5,034.60 
$5,234.70 
$5,539.50 
E–8 
4,071.60 
4,181.40 
4,368.60 
4,472.40 
4,727.70 
E–7 
3,674.40 
3,715.50 
3,852.00 
3,944.40 
4,224.60 
E–6 
3,133.50 
3,133.50 
3,133.50 
3,133.50 
3,133.50 
E–5 
2,630.10 
2,630.10 
2,630.10 
2,630.10 
2,630.10 
E–4 
2,073.00 
2,073.00 
2,073.00 
2,073.00 
2,073.00 
E–3 
1,737.60 
1,737.60 
1,737.60 
1,737.60 
1,737.60 
E–2 
1,465.80 
1,465.80 
1,465.80 
1,465.80 
1,465.80 
E–13 
1,308.00 
1,308.00 
1,308.00 
1,308.00 
1,308.00 
1 Notwithstanding the pay rates specified in this table, the actual basic pay for enlisted members may not ex-
ceed the rate of pay for level V of the Executive Schedule. 
2 Subject to the preceding footnote, the rate of basic pay for an enlisted member in this grade while serving as 
Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of the Air Force, Ser-
geant Major of the Marine Corps, Master Chief Petty Officer of the Coast Guard, or Senior Enlisted Advisor to 
the Chairman of the Joint Chiefs of Statff is $6,675.00, regardless of cumulative years of service computed under 
section 205 of title 37, United States Code. 
3 In the case of members in pay grade E–1 who have served less than 4 months on active duty, the rate of 
basic pay is $1,209.90. 
SEC. 603. CONFORMING CHANGE IN GENERAL AND FLAG 
OFFICER PAY CAP TO REFLECT INCREASE IN 
PAY CAP FOR SENIOR EXECUTIVE SERVICE 
PERSONNEL. 
(a) INCREASE.—Section 203(a)(2) of title 37, United 
States Code, is amended by striking ‘‘level III of the Execu-
tive Schedule’’ and inserting ‘‘level II of the Executive 
Schedule’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on October 1, 2006. 
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SEC. 604. AVAILABILITY OF SECOND BASIC ALLOWANCE 
FOR HOUSING FOR CERTAIN RESERVE COM-
PONENT OR RETIRED MEMBERS SERVING IN 
SUPPORT OF CONTINGENCY OPERATIONS. 
Section 403(g) of title 37, United States Code, is 
amended— 
(1) by redesignating paragraphs (2), (3), and (4) 
as paragraphs (3), (4), and (5), respectively; 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
‘‘(2) The Secretary concerned may provide a basic al-
lowance for housing to a member described in paragraph 
(1) at a monthly rate equal to the rate of the basic allow-
ance for housing established under subsection (b) or the 
overseas basic allowance for housing established under sub-
section (c), whichever applies to the location at which the 
member is serving, for members in the same grade at that 
location without dependents. The member may receive both 
a basic allowance for housing under paragraph (1) and 
under this paragraph for the same month, but may not re-
ceive the portion of the allowance authorized under section 
404 of this title, if any, for lodging expenses if a basic allow-
ance for housing is provided under this paragraph.’’; and 
(3) in paragraph (3), as so redesignated, by 
striking ‘‘Paragraph (1)’’ and inserting ‘‘Paragraphs 
(1) and (2)’’. 
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200 
SEC. 605. EXTENSION OF TEMPORARY CONTINUATION OF 
HOUSING ALLOWANCE FOR DEPENDENTS OF 
MEMBERS 
DYING 
ON 
ACTIVE 
DUTY 
TO 
SPOUSES WHO ARE ALSO MEMBERS. 
(a) EXTENSION.—Section 403(l) of title 37, United 
States Code, is amended— 
(1) by redesignating paragraph (3) as para-
graph (4); and 
(2) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) An allowance may be paid under paragraph (2) 
to the spouse of the deceased member even though the spouse 
is also a member of the uniformed services. The allowance 
paid under such paragraph is in addition to any other pay 
and allowances to which the spouse is entitled as a mem-
ber.’’. 
(b) EFFECTIVE DATE.— 
(1) GENERAL RULE.—The amendments made by 
subsection (a) shall take effect on October 1, 2006. 
(2) TRANSITIONAL RULE.—After October 1, 2006, 
the Secretary of Defense, and the Secretary of Home-
land Security in the case of the Coast Guard, may 
pay the allowance authorized by section 403(l)(2) of 
title 37, United States Code, to a member of the uni-
formed services who is the spouse of a member who 
died on active duty during the one-year period ending 
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on that date, except that the payment of the allowance 
must terminate within 365 days after the date of the 
member’s death. 
SEC. 606. CLARIFICATION OF EFFECTIVE DATE OF PROHIBI-
TION ON COMPENSATION FOR CORRESPOND-
ENCE COURSES. 
Section 206(d) of title 37, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(3) The prohibition in paragraph (1), including the 
prohibition as it relates to a member of the National Guard 
while not in Federal service, applies to— 
‘‘(A) any work or study performed on or after 
September 7, 1962, unless that work or study is spe-
cifically covered by the exception in paragraph (2); 
and 
‘‘(B) any claim based on that work or study 
arising after that date.’’. 
SEC. 607. PAYMENT OF FULL PREMIUM FOR COVERAGE 
UNDER SERVICEMEMBERS’ GROUP LIFE IN-
SURANCE PROGRAM DURING SERVICE IN OP-
ERATION ENDURING FREEDOM OR OPER-
ATION IRAQI FREEDOM. 
(a) ENHANCED ALLOWANCE TO COVER SGLI DEDUC-
TIONS.—Subsection (a)(1) of section 437 of title 37, United 
States Code, is amended by striking ‘‘for the first $150,000’’ 
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202 
and all that follows through ‘‘of such title’’ and inserting 
‘‘for the amount of Servicemembers’ Group Life Insurance 
coverage held by the member under section 1967 of such 
title’’. 
(b) CONFORMING AMENDMENTS.—Such section is fur-
ther amended— 
(1) in subsection (a)— 
(A) by striking ‘‘(1)’’ before ‘‘in the case of’’; 
and 
(B) by striking paragraph (2); 
(2) by striking subsection (b); and 
(3) by redesignating subsection (c) as subsection 
(b) and in paragraph (2) of that subsection by strik-
ing ‘‘coverage amount specified in subsection (a)(1) or 
in effect pursuant to subsection (b),’’ and inserting 
‘‘maximum coverage amount available for such insur-
ance,’’. 
(c) CLERICAL AMENDMENTS.—The heading for such 
section, and the item relating to such section in the table 
of sections at the beginning of chapter 7 of such title, are 
each amended by striking the fourth and fifth words. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the first day of the first month 
beginning on or after the date of the enactment of this Act 
and shall apply with respect to service by members of the 
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203 
Armed Forces in the theater of operations for Operation En-
during Freedom or Operation Iraqi Freedom for months be-
ginning on or after that date. 
(e) FUNDING SOURCE.—Of the amounts authorized to 
be appropriated to the Department of Defense for military 
personnel accounts as emergency supplemental appropria-
tions for fiscal years 2006 and 2007 to provide funds for 
additional costs due to Operation Iraqi Freedom and Oper-
ation Enduring Freedom, $31,000,000 shall be available to 
cover the additional costs incurred to implement the amend-
ments made by this section. 
Subtitle B—Bonuses and Special 
and Incentive Pays 
SEC. 611. EXTENSION OF CERTAIN BONUS AND SPECIAL 
PAY AUTHORITIES FOR RESERVE FORCES. 
(a) SELECTED RESERVE REENLISTMENT BONUS.— 
Section 308b(g) of title 37, United States Code, is amended 
by striking ‘‘December 31, 2006’’ and inserting ‘‘December 
31, 2007’’. 
(b) SELECTED RESERVE AFFILIATION OR ENLISTMENT 
BONUS.—Section 308c(i) of such title is amended by strik-
ing ‘‘December 31, 2006’’ and inserting ‘‘December 31, 
2007’’. 
(c) SPECIAL PAY FOR ENLISTED MEMBERS ASSIGNED 
TO CERTAIN HIGH PRIORITY UNITS.—Section 308d(c) of 
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204 
such title is amended by striking ‘‘December 31, 2006’’ and 
inserting ‘‘December 31, 2007’’. 
(d) READY RESERVE ENLISTMENT BONUS FOR PER-
SONS WITHOUT PRIOR SERVICE.—Section 308g(h)(2) of 
such title is amended by striking ‘‘December 31, 2006’’ and 
inserting ‘‘December 31, 2007’’. 
(e) READY RESERVE ENLISTMENT
AND REENLIST-
MENT BONUS FOR PERSONS WITH PRIOR SERVICE.—Sec-
tion 308h(e) of such title is amended by striking ‘‘December 
31, 2006’’ and inserting ‘‘December 31, 2007’’. 
(f) SELECTED RESERVE ENLISTMENT BONUS
FOR 
PERSONS WITH PRIOR SERVICE.—Section 308i(f) of such 
title is amended by striking ‘‘December 31, 2006’’ and in-
serting ‘‘December 31, 2007’’. 
SEC. 612. EXTENSION OF BONUS AND SPECIAL PAY AU-
THORITIES 
FOR 
HEALTH 
CARE 
PROFES-
SIONALS. 
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—Section 2130a(a)(1) of title 10, United States Code, 
is amended by striking ‘‘December 31, 2006’’ and inserting 
‘‘December 31, 2007’’. 
(b) REPAYMENT OF EDUCATION LOANS FOR CERTAIN 
HEALTH PROFESSIONALS WHO SERVE IN THE SELECTED 
RESERVE.—Section 16302(d) of such title is amended by 
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205 
striking ‘‘January 1, 2007’’ and inserting ‘‘January 1, 
2008’’. 
(c) ACCESSION BONUS FOR REGISTERED NURSES.— 
Section 302d(a)(1) of title 37, United States Code, is 
amended by striking ‘‘December 31, 2006’’ and inserting 
‘‘December 31, 2007’’. 
(d) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of such title is amended by 
striking ‘‘December 31, 2006’’ and inserting ‘‘December 31, 
2007’’. 
(e) SPECIAL PAY FOR SELECTED RESERVE HEALTH 
PROFESSIONALS IN CRITICALLY SHORT WARTIME SPECIAL-
TIES.—Section 302g(e) of such title is amended by striking 
‘‘December 31, 2006’’ and inserting ‘‘December 31, 2007’’. 
(f) ACCESSION BONUS FOR DENTAL OFFICERS.—Sec-
tion 302h(a)(1) of such title is amended by striking ‘‘De-
cember 31, 2006’’ and inserting ‘‘December 31, 2007’’. 
(g) ACCESSION BONUS FOR PHARMACY OFFICERS.— 
Section 302j(a) of such title is amended by striking ‘‘De-
cember 31, 2006’’ and inserting ‘‘December 31, 2007’’. 
SEC. 613. EXTENSION OF SPECIAL PAY AND BONUS AU-
THORITIES FOR NUCLEAR OFFICERS. 
(a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFICERS 
EXTENDING PERIOD OF ACTIVE SERVICE.—Section 312(e) 
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206 
of title 37, United States Code, is amended by striking ‘‘De-
cember 31, 2006’’ and inserting ‘‘December 31, 2007’’. 
(b) NUCLEAR CAREER ACCESSION BONUS.—Section 
312b(c) of such title is amended by striking ‘‘December 31, 
2006’’ and inserting ‘‘December 31, 2007’’. 
(c) NUCLEAR CAREER ANNUAL INCENTIVE BONUS.— 
Section 312c(d) of such title is amended by striking ‘‘De-
cember 31, 2006’’ and inserting ‘‘December 31, 2007’’. 
SEC. 614. EXTENSION OF OTHER BONUS, SPECIAL PAY, AND 
SEPARATION PAY AUTHORITIES. 
(a) AVIATION OFFICER RETENTION BONUS.—Section 
301b(a) of title 37, United States Code, is amended by strik-
ing ‘‘December 31, 2006’’ and inserting ‘‘December 31, 
2007’’. 
(b) ASSIGNMENT INCENTIVE PAY.—Section 307a(g) of 
such title is amended by striking ‘‘December 31, 2007’’ and 
inserting ‘‘December 31, 2008’’. 
(c) REENLISTMENT BONUS FOR ACTIVE MEMBERS.— 
Section 308(g) of such title is amended by striking ‘‘Decem-
ber 31, 2006’’ and inserting ‘‘December 31, 2007’’. 
(d) ENLISTMENT BONUS FOR ACTIVE MEMBERS.— 
Section 309(e) of such title is amended by striking ‘‘Decem-
ber 31, 2006’’ and inserting ‘‘December 31, 2007’’. 
(e) RETENTION BONUS FOR MEMBERS WITH CRITICAL 
MILITARY SKILLS.—Section 323(i) of such title is amended 
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207 
by striking ‘‘December 31, 2006’’ and inserting ‘‘December 
31, 2007’’. 
(f) ACCESSION BONUS FOR NEW OFFICERS IN CRIT-
ICAL SKILLS.—Section 324(g) of such title is amended by 
striking ‘‘December 31, 2006’’ and inserting ‘‘December 31, 
2007’’. 
(g) MILITARY OCCUPATIONAL SPECIALTY CONVERSION 
INCENTIVE BONUS.—Section 326(g) of such title is amend-
ed by striking ‘‘December 31, 2006’’ and inserting ‘‘Decem-
ber 31, 2007’’. 
(h) TRANSFER BETWEEN ARMED FORCES INCENTIVE 
BONUS.—Section 327(h) of such title is amended by strik-
ing ‘‘December 31, 2006’’ and inserting ‘‘December 31, 
2007’’. 
SEC. 615. EXPANSION OF ELIGIBILITY OF DENTAL OFFI-
CERS FOR ADDITIONAL SPECIAL PAY. 
(a) REPEAL OF INTERNSHIP AND RESIDENCY EXCEP-
TION.—Section 302b(a)(4) of title 37, United States Code, 
is amended by striking the first sentence and inserting the 
following new sentence: ‘‘An officer who is entitled to vari-
able special pay under paragraph (2) or (3) is also entitled 
to additional special pay for any 12-month period during 
which an agreement executed under subsection (b) is in ef-
fect with respect to the officer.’’. 
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208 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on October 1, 2006. 
SEC. 616. INCREASE IN MAXIMUM ANNUAL RATE OF SPE-
CIAL PAY FOR SELECTED RESERVE HEALTH 
CARE PROFESSIONALS IN CRITICALLY SHORT 
WARTIME SPECIALTIES. 
(a) INCREASE.—Section 302g(a) of title 37, United 
States Code, is amended by striking ‘‘$10,000’’ and insert-
ing ‘‘$25,000’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2006. 
SEC. 617. AUTHORITY TO PROVIDE LUMP SUM PAYMENT OF 
NUCLEAR OFFICER INCENTIVE PAY. 
(a) LUMP SUM PAYMENT OPTION.—Subsection (a) of 
section 312 of title 37, United States Code, is amended in 
the matter after paragraph (3)— 
(1) by striking ‘‘in equal annual installments’’ 
and inserting ‘‘in a single lump-sum or in annual in-
stallments of equal or different amounts’’; and 
(2) by striking ‘‘with the number of installments 
being equal to the number of years covered by the con-
tract plus one’’ and inserting ‘‘and, if the special pay 
will be paid in annual installments, the number of 
installments may not exceed the number of years cov-
ered by the agreement plus one’’. 
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209 
(b) CLERICAL AND CONFORMING AMENDMENTS.—Such 
section is further amended— 
(1) by redesignating subsections (b) through (e) 
as subsections (c) through (f), respectively; 
(2) in subsection (a)— 
(A) by striking ‘‘an officer’’ in the matter 
before paragraph (1) and inserting ‘‘the Sec-
retary may pay special pay under subsection (b) 
to an officer’’; 
(B) by striking the semicolon at the end of 
paragraph (3) and inserting a period; 
(C) by striking ‘‘may, upon’’ and all that 
follows through ‘‘The Secretary of the Navy 
shall’’ and inserting the following: 
‘‘(b) PAYMENT AMOUNT; PAYMENT OPTIONS.—(1) The 
total amount paid to an officer under an agreement under 
subsection (a) or (e)(1) may not exceed $30,000 for each 
year of the active-service agreement. Amounts paid under 
the agreement are in addition to all other compensation to 
which the officer is entitled. 
‘‘(2) The Secretary shall’’; 
(D) by striking ‘‘Upon acceptance of the 
agreement by the Secretary or his designee’’ and 
inserting the following: 
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210 
‘‘(3) Upon acceptance of an agreement under sub-
section (a) or (e)(1) by the Secretary ’’; 
(E) by striking ‘‘The Secretary (or his des-
ignee)’’ and inserting the following: 
‘‘(4) The Secretary’’; 
(3) in subsection (c), as redesignated by para-
graph (1), by striking ‘‘subsection (a) or subsection 
(d)(1)’’ and inserting ‘‘subsection (b) or (e)(1)’’; and 
(4) in the first sentence of subsection (e)(1), as 
redesignated by paragraph (1)— 
(A) by striking ‘‘such subsection’’ and in-
serting ‘‘subsection (b)’’; and 
(B) by striking ‘‘that subsection’’ and in-
serting ‘‘this subsection’’. 
(c) STYLISTIC AMENDMENTS.—Such section is further 
amended— 
(1) in subsection (a), by inserting ‘‘SPECIAL PAY 
AUTHORIZED; ELIGIBILITY.—’’ after ‘‘(a)’’; 
(2) in subsection (c), as redesignated by sub-
section (b)(1), by inserting ‘‘REPAYMENT.—’’ after 
‘‘(c)’’; 
(3) in subsection (d), as redesignated by sub-
section (b)(1), by inserting ‘‘RELATION TO SERVICE 
OBLIGATION.—’’ after ‘‘(d)’’; 
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211 
(4) in subsection (e), as redesignated by sub-
section (b)(1), by inserting ‘‘NEW AGREEMENT.—’’ 
after ‘‘(e)’’; and 
(5) in subsection (f), as redesignated by sub-
section (b)(1), by inserting ‘‘DURATION OF AUTHOR-
ITY.—’’ after ‘‘(f)’’. 
SEC. 618. INCREASE IN MAXIMUM AMOUNT OF NUCLEAR CA-
REER ACCESSION BONUS. 
(a) INCREASE.—Section 312b(a)(1) of title 37, United 
States Code, is amended by striking ‘‘$20,000’’ and insert-
ing ‘‘$30,000’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on October 1, 2006. 
SEC. 619. INCREASE IN MAXIMUM AMOUNT OF INCENTIVE 
BONUS FOR TRANSFER BETWEEN ARMED 
FORCES. 
(a) INCREASE.—Section 327(d)(1) of title 37, United 
States Code, is amended by striking ‘‘$2,500’’ and inserting 
‘‘$10,000’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect on October 1, 2006. 
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212 
SEC. 620. CLARIFICATION REGARDING MEMBERS OF THE 
ARMY ELIGIBLE FOR BONUS FOR REFERRING 
OTHER PERSONS FOR ENLISTMENT IN THE 
ARMY. 
Section 645(a) of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 
3310) is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—The Secretary’’; 
(2) by striking ‘‘, whether in the regular compo-
nent of the Army or in the Army National Guard or 
Army Reserve,’’ and inserting ‘‘described in para-
graph (2)’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(2) MEMBERS ELIGIBLE FOR BONUS.—Subject 
to subsection (c), the following members of the Army 
are eligible for a referral bonus under this section: 
‘‘(A) A member in the regular component of 
the Army. 
‘‘(B) A member of the Army National 
Guard. 
‘‘(C) A member of the Army Reserve. 
‘‘(D) A member of the Army in a retired 
status, including a member under 60 years of 
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213 
age who, but for age, would be eligible for retired 
pay.’’. 
SEC. 621. PILOT PROGRAM FOR RECRUITMENT BONUS FOR 
CRITICAL HEALTH CARE SPECIALTIES. 
(a) PILOT PROGRAM.—Section 2121 of title 10, United 
States Code, is amended by adding at the end the following 
new subsection: 
‘‘(e)(1) The Secretary of Defense may carry out a pilot 
program for payment of a recruitment incentive bonus to 
increase participation in the program. The Secretary shall 
prescribe regulations specifying the amount and terms of 
the bonus. The bonus shall be used to improve recruitment 
for critical health care specialties. A bonus under the pilot 
program shall be in addition to the stipend under sub-
section (d). 
‘‘(2) The amount prescribed under paragraph (1) for 
the bonus under the pilot program shall be determined by 
the Secretary. 
‘‘(3) The scope of the pilot program shall be limited 
to no more than 100 total participants in no more than 
five critical medical specialties. The program shall last no 
more than two years, beginning on the earlier of the date 
the first participant is selected or January 1, 2010. ’’. 
(b) REPORTS.—The Secretary of Defense shall prepare 
a mid-term report and a final report on the findings and 
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