HR 2642 PCS 
ing during the current fiscal year may be used to pay real 
property taxes in any foreign nation. 
SEC. 110. None of the funds made available in this 
title may be used to initiate a new installation overseas 
without prior notification to the Committees on Appro-
priations of both Houses of Congress. 
SEC. 111. None of the funds made available in this 
title may be obligated for architect and engineer contracts 
estimated by the Government to exceed $500,000 for 
projects to be accomplished in Japan, in any North Atlan-
tic Treaty Organization member country, or in countries 
bordering the Arabian Sea, unless such contracts are 
awarded to United States firms or United States firms 
in joint venture with host nation firms. 
SEC. 112. None of the funds made available in this 
title for military construction in the United States terri-
tories and possessions in the Pacific and on Kwajalein 
Atoll, or in countries bordering the Arabian Sea, may be 
used to award any contract estimated by the Government 
to exceed $1,000,000 to a foreign contractor: Provided, 
That this section shall not be applicable to contract 
awards for which the lowest responsive and responsible bid 
of a United States contractor exceeds the lowest respon-
sive and responsible bid of a foreign contractor by greater 
than 20 percent: Provided further, That this section shall 
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not apply to contract awards for military construction on 
Kwajalein Atoll for which the lowest responsive and re-
sponsible bid is submitted by a Marshallese contractor. 
SEC. 113. The Secretary of Defense is to inform the 
appropriate committees of both Houses of Congress, in-
cluding the Committees on Appropriations, of the plans 
and scope of any proposed military exercise involving 
United States personnel 30 days prior to its occurring, 
if amounts expended for construction, either temporary or 
permanent, are anticipated to exceed $100,000. 
SEC. 114. Not more than 20 percent of the funds 
made available in this title which are limited for obligation 
during the current fiscal year shall be obligated during 
the last two months of the fiscal year. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 115. Funds appropriated to the Department of 
Defense for construction in prior years shall be available 
for construction authorized for each such military depart-
ment by the authorizations enacted into law during the 
current session of Congress. 
SEC. 116. For military construction or family housing 
projects that are being completed with funds otherwise ex-
pired or lapsed for obligation, expired or lapsed funds may 
be used to pay the cost of associated supervision, inspec-
tion, overhead, engineering and design on those projects 
and on subsequent claims, if any. 
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SEC. 117. Notwithstanding any other provision of 
law, any funds made available to a military department 
or defense agency for the construction of military projects 
may be obligated for a military construction project or 
contract, or for any portion of such a project or contract, 
at any time before the end of the fourth fiscal year after 
the fiscal year for which funds for such project were made 
available, if the funds obligated for such project: (1) are 
obligated from funds available for military construction 
projects; and (2) do not exceed the amount appropriated 
for such project, plus any amount by which the cost of 
such project is increased pursuant to law. 
SEC. 118. The Secretary of Defense is to provide the 
Committees on Appropriations of both Houses of Congress 
with an annual report by February 15, containing details 
of the specific actions proposed to be taken by the Depart-
ment of Defense during the current fiscal year to encour-
age other member nations of the North Atlantic Treaty 
Organization, Japan, Korea, and United States allies bor-
dering the Arabian Sea to assume a greater share of the 
common defense burden of such nations and the United 
States. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 119. In addition to any other transfer authority 
available to the Department of Defense, proceeds depos-
ited to the Department of Defense Base Closure Account 
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established by section 207(a)(1) of the Defense Authoriza-
tion Amendments and Base Closure and Realignment Act 
(10 U.S.C. 2687 note) pursuant to section 207(a)(2)(C) 
of such Act, may be transferred to the account established 
by section 2906(a)(1) of the Defense Base Closure and 
Realignment Act of 1990 (10 U.S.C. 2687 note), to be 
merged with, and to be available for the same purposes 
and the same time period as that account. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 120. Subject to 30 days prior notification to the 
Committees on Appropriations of both Houses of Con-
gress, such additional amounts as may be determined by 
the Secretary of Defense may be transferred to: (1) the 
Department of Defense Family Housing Improvement 
Fund from amounts appropriated for construction in 
‘‘Family Housing’’ accounts, to be merged with and to be 
available for the same purposes and for the same period 
of time as amounts appropriated directly to the Fund; or 
(2) the Department of Defense Military Unaccompanied 
Housing Improvement Fund from amounts appropriated 
for construction of military unaccompanied housing in 
‘‘Military Construction’’ accounts, to be merged with and 
to be available for the same purposes and for the same 
period of time as amounts appropriated directly to the 
Fund: Provided, That appropriations made available to 
the Funds shall be available to cover the costs, as defined 
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in section 502(5) of the Congressional Budget Act of 
1974, of direct loans or loan guarantees issued by the De-
partment of Defense pursuant to the provisions of sub-
chapter IV of chapter 169 of title 10, United States Code, 
pertaining to alternative means of acquiring and improv-
ing military family housing, military unaccompanied hous-
ing, and supporting facilities. 
SEC. 121. None of the funds made available in this 
title may be obligated for Partnership for Peace Programs 
in the New Independent States of the former Soviet 
Union. 
SEC. 122. (a) Not later than 60 days before issuing 
any solicitation for a contract with the private sector for 
military family housing the Secretary of the military de-
partment concerned shall submit to the Committees on 
Appropriations of both Houses of Congress the notice de-
scribed in subsection (b). 
(b)(1) A notice referred to in subsection (a) is a no-
tice of any guarantee (including the making of mortgage 
or rental payments) proposed to be made by the Secretary 
to the private party under the contract involved in the 
event of— 
(A) the closure or realignment of the installa-
tion for which housing is provided under the con-
tract; 
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(B) a reduction in force of units stationed at 
such installation; or 
(C) the extended deployment overseas of units 
stationed at such installation. 
(2) Each notice under this subsection shall specify 
the nature of the guarantee involved and assess the extent 
and likelihood, if any, of the liability of the Federal Gov-
ernment with respect to the guarantee. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 123. In addition to any other transfer authority 
available to the Department of Defense, amounts may be 
transferred from the accounts established by sections 
2906(a)(1) and 2906A(a)(1) of the Defense Base Closure 
and Realignment Act of 1990 (10 U.S.C. 2687 note), to 
the fund established by section 1013(d) of the Demonstra-
tion Cities and Metropolitan Development Act of 1966 (42 
U.S.C. 3374) to pay for expenses associated with the 
Homeowners Assistance Program. Any amounts trans-
ferred shall be merged with and be available for the same 
purposes and for the same time period as the fund to 
which transferred. 
SEC. 124. Notwithstanding this or any other provi-
sion of law, funds made available in this title for operation 
and maintenance of family housing shall be the exclusive 
source of funds for repair and maintenance of all family 
housing units, including general or flag officer quarters: 
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Provided, That not more than $35,000 per unit may be 
spent annually for the maintenance and repair of any gen-
eral or flag officer quarters without 30 days prior notifica-
tion to the Committees on Appropriations of both Houses 
of Congress, except that an after-the-fact notification shall 
be submitted if the limitation is exceeded solely due to 
costs associated with environmental remediation that 
could not be reasonably anticipated at the time of the 
budget submission: Provided further, That the Under Sec-
retary of Defense (Comptroller) is to report annually to 
the Committees on Appropriations of both Houses of Con-
gress all operation and maintenance expenditures for each 
individual general or flag officer quarters for the prior fis-
cal year. 
SEC. 125. Whenever the Secretary of Defense or any 
other official of the Department of Defense is requested 
by the subcommittee on Military Construction, Veterans 
Affairs, and Related Agencies of the Committee on Appro-
priations of the House of Representatives or the sub-
committee on Military Construction, Veterans Affairs, and 
Related Agencies of the Committee on Appropriations of 
the Senate to respond to a question or inquiry submitted 
by the chairman or another member of that subcommittee 
pursuant to a subcommittee hearing or other activity, the 
Secretary (or other official) shall respond to the request, 
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in writing, within 21 days of the date on which the request 
is transmitted to the Secretary (or other official). 
SEC. 126. Amounts contained in the Ford Island Im-
provement Account established by subsection (h) of sec-
tion 2814 of title 10, United States Code, are appro-
priated and shall be available until expended for the pur-
poses specified in subsection (i)(1) of such section or until 
transferred pursuant to subsection (i)(3) of such section. 
SEC. 127. None of the funds made available in this 
title, or in any Act making appropriations for military con-
struction which remain available for obligation, may be ob-
ligated or expended to carry out a military construction, 
land acquisition, or family housing project at or for a mili-
tary installation approved for closure, or at a military in-
stallation for the purposes of supporting a function that 
has been approved for realignment to another installation, 
in 2005 under the Defense Base Closure and Realignment 
Act of 1990 (part A of title XXIX of Public Law 101– 
510; 10 U.S.C. 2687 note), unless such a project at a mili-
tary installation approved for realignment will support a 
continuing mission or function at that installation or a 
new mission or function that is planned for that installa-
tion, or unless the Secretary of Defense certifies that the 
cost to the United States of carrying out such project 
would be less than the cost to the United States of cancel-
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ling such project, or if the project is at an active compo-
nent base that shall be established as an enclave or in the 
case of projects having multi-agency use, that another 
Government agency has indicated it will assume ownership 
of the completed project. The Secretary of Defense may 
not transfer funds made available as a result of this limi-
tation from any military construction project, land acquisi-
tion, or family housing project to another account or use 
such funds for another purpose or project without the 
prior approval of the Committees on Appropriations of 
both Houses of Congress. This section shall not apply to 
military construction projects, land acquisition, or family 
housing projects for which the project is vital to the na-
tional security or the protection of health, safety, or envi-
ronmental quality: Provided, That the Secretary of De-
fense shall notify the congressional defense committees 
within seven days of a decision to carry out such a military 
construction project. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 128. During the 5-year period after appropria-
tions available in this Act to the Department of Defense 
for military construction and family housing operation and 
maintenance and construction have expired for obligation, 
upon a determination that such appropriations will not be 
necessary for the liquidation of obligations or for making 
authorized adjustments to such appropriations for obliga-
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tions incurred during the period of availability of such ap-
propriations, unobligated balances of such appropriations 
may be transferred into the appropriation ‘‘Foreign Cur-
rency Fluctuations, Construction, Defense’’, to be merged 
with and to be available for the same time period and for 
the same purposes as the appropriation to which trans-
ferred. 
SEC. 129. None of the funds in this title shall be used 
for any activity related to the construction of an Outlying 
Landing Field in Washington County, North Carolina. 
TITLE II 
DEPARTMENT OF VETERANS AFFAIRS 
VETERANS BENEFITS ADMINISTRATION 
COMPENSATION AND PENSIONS 
(INCLUDING TRANSFER OF FUNDS) 
For the payment of compensation benefits to or on 
behalf of veterans and a pilot program for disability ex-
aminations as authorized by section 107 and chapters 11, 
13, 18, 51, 53, 55, and 61 of title 38, United States Code; 
pension benefits to or on behalf of veterans as authorized 
by chapters 15, 51, 53, 55, and 61 of title 38, United 
States Code; and burial benefits, the Reinstated Entitle-
ment Program for Survivors, emergency and other offi-
cers’ retirement pay, adjusted-service credits and certifi-
cates, payment of premiums due on commercial life insur-
ance policies guaranteed under the provisions of title IV 
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