(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item: 
‘‘4690. Recyclable munitions materials: sale; use of proceeds.’’. 
SEC. 344. CAPITAL SECURITY COST SHARING. 
(a) RECONCILIATION
REQUIRED.—For each fiscal 
year, the Secretary of Defense shall reconcile (1) the esti-
mate of overseas presence of the Secretary of Defense under 
subsection (b) for that fiscal year, with (2) the determina-
tion of the Secretary of State under section 604(e)(1) of the 
Secure Embassy Construction and Counterterrorism Act of 
1999 (22 U.S.C. 4865 note) of the total overseas presence 
of the Department of Defense for that fiscal year. 
(b) ANNUAL ESTIMATE OF OVERSEAS PRESENCE.— 
Not later than February 1 of each year, the Secretary of 
Defense shall submit to the congressional defense committees 
an estimate of the total number of Department of Defense 
overseas personnel subject to chief of mission authority pur-
suant to section 207 of the Foreign Service Act of 1980 (22 
U.S.C. 3927) during the fiscal year that begins on October 
1 of that year. 
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SEC. 345. PRIORITIZATION OF FUNDS WITHIN NAVY MIS-
SION 
OPERATIONS, 
SHIP 
MAINTENANCE, 
COMBAT SUPPORT FORCES, AND WEAPONS 
SYSTEM SUPPORT. 
(a) IN GENERAL.—The Secretary of the Navy shall 
take such steps as necessary through the planning, program-
ming, budgeting, and execution systems of the Department 
of the Navy to ensure that financial resources are provided 
for each fiscal year as necessary to enable the Navy to fund 
the following requirements of the Navy for that fiscal year: 
(1) 100 percent of the requirements for steaming 
days per quarter for deployed ship operations. 
(2) 100 percent of the requirements for steaming 
days per quarter for non-deployed ship operations. 
(3) 100 percent of the projected ship and air 
depot maintenance. 
(b) LIMITATION OF FUNDS FOR NAVY EXPEDITIONARY 
COMBAT COMMAND.—Of the funds appropriated for the De-
partment of Navy for any fiscal year after fiscal year 2006, 
no operation and maintenance funds may be expended for 
the Navy Expeditionary Combat Command until the fund-
ing priorities in subsection (a) are met for that fiscal year. 
(c) ANNUAL REPORT.—The Secretary of Navy shall 
submit to the congressional defense committees an annual 
report, to be submitted each year with the annual operation 
and maintenance justification of estimates material for the 
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next fiscal year, that certifies that the requirements in sub-
section (a) are satisfied for the fiscal year for which that 
material is submitted. 
SEC. 346. PRIORITIZATION OF FUNDS WITHIN ARMY RECON-
STITUTION AND TRANSFORMATION. 
(a) IN GENERAL.—The Secretary of the Army shall 
take such steps as necessary through the planning, program-
ming, budgeting, and execution systems of the Department 
of the Army to ensure that financial resources are provided 
for each fiscal year as necessary to enable the Army to meet 
its requirements in that fiscal year for each of the following: 
(1) The repair, recapitalization, and replacement 
of equipment used in the Global War on Terrorism, 
based on implementation of requirements based on a 
cost 
estimate 
for 
such 
purposes 
of 
at 
least 
$72,300,000,000 over the period of the five fiscal years 
beginning with fiscal year 2008. 
(2) The fulfillment of equipment requirements of 
units transforming to modularity in accordance with 
the Modular Force Initiative report submitted to Con-
gress in March 2006, based on implementation of re-
quirements based on a cost estimate for such purposes 
of $47,600,000,000 over the period of the five fiscal 
years beginning with fiscal year 2008. 
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(3) The reconstitution of equipment and materiel 
in prepositioned stocks by 2012 in accordance with 
requirements under the Army Prepositioned Stocks 
Strategy 2012 or a subsequent strategy implemented 
under the guidelines in section 2229 of title 10, 
United States Code. 
(b) ANNUAL REPORT.—The Secretary of the Army 
shall submit to the congressional defense committees an an-
nual report, until the requirements of subsection (a) have 
been met, setting forth the progress toward meeting those 
requirements. Any information required to be included in 
the report concerning funding priorities under paragraph 
(1) or (2) of subsection (a) shall be itemized by active duty 
component and reserve component. The report for any year 
shall be submitted at the time the budget of the President 
for the next fiscal year is submitted to Congress. Each such 
report shall include the following: 
(1) A complete itemization of the requirements 
for the funding priorities in subsection (a), including 
an itemization for all types of modular brigades for 
both active and reserve components. 
(2) A list of any shortfalls that exist between 
available funding, equipment, supplies, and indus-
trial capacity and required funding, equipment, sup-
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plies, and industrial capacity in accordance with the 
funding priorities in subsection (a). 
(3) A list of the requirements for the funding 
priorities in subsection (a) that the Army has in-
cluded in the budget for that fiscal year, including a 
detailed listing of the type, quantity, and cost of the 
equipment the Army plans to repair, recapitalize, or 
procure, set forth by appropriations account and 
Army component. 
(4) An assessment of the progress made during 
that fiscal year toward meeting the overall require-
ments of the funding priorities in subsection (a). 
(5) A description of how the Army defines costs 
associated with modularity versus the costs associated 
with modernizing equipment platforms and repair-
ing, recapitalizing, and replacing equipment used 
during the global war on terrorism. 
(6) The results of Army assessments of modular 
force capabilities, including lessons learned from ex-
isting modular units and any modifications that have 
been made to modularity. 
(7) The assessment of each of the Chief of the Na-
tional Guard Bureau and the Chief of the Army Re-
serve of each of the items described in paragraphs (1) 
through (6). 
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(c) LIMITATION ON FUNDS FOR FUTURE COMBAT SYS-
TEMS.—Of the funds appropriated for the Army for any 
fiscal year after fiscal year 2007, not more than 
$2,850,000,000 may be expended for the Future Combat 
Systems until the funding priorities in subsection (a) are 
met for that fiscal year. 
(d) USE OF EXCESS FUNDS FOR FUTURE COMBAT 
SYSTEMS.—Any funds appropriated for the Future Combat 
Systems for any fiscal year not expended in accordance 
with subsection (c) shall be used for programs specified in 
subsection (a). 
TITLE IV—MILITARY PERSONNEL 
AUTHORIZATIONS 
Subtitle A—Active Forces 
Sec. 401. End strengths for active forces. 
Sec. 402. Revision in permanent active duty end strength minimum levels. 
Sec. 403. Additional authority for increases of Army and Marine Corps active 
duty end strengths for fiscal years 2008 and 2009. 
Subtitle B—Reserve Forces 
Sec. 411. End strengths for Selected Reserve. 
Sec. 412. End strengths for Reserves on active duty in support of the reserve com-
ponents. 
Sec. 413. End strengths for military technicians (dual status). 
Sec. 414. Fiscal year 2007 limitation on number of non-dual status technicians. 
Sec. 415. Maximum number of reserve personnel authorized to be on active duty 
for operational support. 
Subtitle C—Authorization of Appropriations 
Sec. 421. Military personnel. 
Sec. 422. Armed Forces Retirement Home. 
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Subtitle A—Active Forces 
SEC. 401. END STRENGTHS FOR ACTIVE FORCES. 
(a) IN GENERAL.—The Armed Forces are authorized 
strengths for active duty personnel as of September 30, 
2007, as follows: 
(1) The Army, 512,400. 
(2) The Navy, 340,700. 
(3) The Marine Corps, 180,000. 
(4) The Air Force, 334,200. 
(b) LIMITATION.— 
(1) ARMY.—The authorized strength for the 
Army provided in paragraph (1) of subsection (a) for 
active duty personnel for fiscal year 2007 is subject 
to the condition that costs of active duty personnel of 
the Army for that fiscal year in excess of 482,400 
shall be paid out of funds authorized to be appro-
priated for that fiscal year for a contingent emer-
gency reserve fund or as an emergency supplemental 
appropriation. 
(2) MARINE CORPS.—The authorized strength for 
the Marine Corps provided in paragraph (3) of sub-
section (a) for active duty personnel for fiscal year 
2007 is subject to the condition that costs of active 
duty personnel of the Marine Corps for that fiscal 
year in excess of 175,000 shall be paid out of funds 
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100 
authorized to be appropriated for that fiscal year for 
a contingent emergency reserve fund or as an emer-
gency supplemental appropriation. 
SEC. 402. REVISION IN PERMANENT ACTIVE DUTY END 
STRENGTH MINIMUM LEVELS. 
Section 691(b) of title 10, United States Code, is 
amended by striking paragraphs (1) through (4) and insert-
ing the following: 
‘‘(1) For the Army, 504,400. 
‘‘(2) For the Navy, 340,700. 
‘‘(3) For the Marine Corps, 180,000. 
‘‘(4) For the Air Force, 334,200.’’. 
SEC. 403. ADDITIONAL AUTHORITY FOR INCREASES OF 
ARMY AND MARINE CORPS ACTIVE DUTY END 
STRENGTHS FOR FISCAL YEARS 2008 AND 
2009. 
Effective October 1, 2007, the text of section 403 of the 
Ronald W. Reagan National Defense Authorization Act for 
Fiscal Year 2005 (Public Law 108–375; 118 Stat. 1863) 
is amended to read as follows: 
‘‘(a) AUTHORITY.— 
‘‘(1) ARMY.—For each of fiscal years 2008 and 
2009, the Secretary of Defense may, as the Secretary 
determines necessary for the purposes specified in 
paragraph (3), establish the active-duty end strength 
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101 
for the Army at a number greater than the number 
otherwise authorized by law up to the number equal 
to the fiscal-year 2007 baseline plus 20,000. 
‘‘(2) MARINE CORPS.—For each of fiscal years 
2008 and 2009, the Secretary of Defense may, as the 
Secretary determines necessary for the purposes speci-
fied in paragraph (3), establish the active-duty end 
strength for the Marine Corps at a number greater 
than the number otherwise authorized by law up to 
the number equal to the fiscal-year 2007 baseline plus 
4,000. 
‘‘(3) PURPOSE OF INCREASES.—The purposes for 
which increases may be made in Army and Marine 
Corps active duty end strengths under paragraphs (1) 
and (2) are— 
‘‘(A) to support operational missions; and 
‘‘(B) to achieve transformational reorga-
nization objectives, including objectives for in-
creased numbers of combat brigades and battal-
ions, increased unit manning, force stabilization 
and shaping, and rebalancing of the active and 
reserve component forces. 
‘‘(4) FISCAL-YEAR 2007 BASELINE.—In this sub-
section, the term ‘fiscal-year 2007 baseline’, with re-
spect to the Army and Marine Corps, means the ac-
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102 
tive-duty end strength authorized for those services in 
section 401 of the National Defense Authorization Act 
for Fiscal Year 2007. 
‘‘(5) ACTIVE-DUTY END STRENGTH.—In this sub-
section, the term ‘active-duty end strength’ means the 
strength for active-duty personnel of one of the Armed 
Forces as of the last day of a fiscal year. 
‘‘(b) RELATIONSHIP TO PRESIDENTIAL WAIVER AU-
THORITY.—Nothing in this section shall be construed to 
limit the President’s authority under section 123a of title 
10, United States Code, to waive any statutory end strength 
in a time of war or national emergency. 
‘‘(c) RELATIONSHIP TO OTHER VARIANCE AUTHOR-
ITY.—The authority under subsection (a) is in addition to 
the authority to vary authorized end strengths that is pro-
vided in subsections (e) and (f) of section 115 of title 10, 
United States Code. 
‘‘(d) BUDGET TREATMENT.— 
‘‘(1) FISCAL YEAR 2008 BUDGET.—The budget for 
the Department of Defense for fiscal year 2008 as sub-
mitted to Congress shall comply, with respect to fund-
ing, with subsections (c) and (d) of section 691 of title 
10, United States Code. 
‘‘(2) OTHER INCREASES.—If the Secretary of De-
fense plans to increase the Army or Marine Corps ac-
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103 
tive duty end strength for a fiscal year under sub-
section (a), then the budget for the Department of De-
fense for that fiscal year as submitted to Congress 
shall include the amounts necessary for funding that 
active duty end strength in excess of the fiscal year 
2007 active duty end strength authorized for that 
service under section 401 of the National Defense Au-
thorization Act for Fiscal Year 2007.’’. 
Subtitle B—Reserve Forces 
SEC. 411. END STRENGTHS FOR SELECTED RESERVE. 
(a) IN GENERAL.—The Armed Forces are authorized 
strengths for Selected Reserve personnel of the reserve com-
ponents as of September 30, 2007, as follows: 
(1) The Army National Guard of the United 
States, 350,000. 
(2) The Army Reserve, 200,000. 
(3) The Navy Reserve, 71,300. 
(4) The Marine Corps Reserve, 39,600. 
(5) The Air National Guard of the United 
States, 107,000. 
(6) The Air Force Reserve, 74,900. 
(7) The Coast Guard Reserve, 10,000. 
(b) ADJUSTMENTS.—The end strengths prescribed by 
subsection (a) for the Selected Reserve of any reserve compo-
nent shall be proportionately reduced by— 
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104 
(1) the total authorized strength of units orga-
nized to serve as units of the Selected Reserve of such 
component which are on active duty (other than for 
training) at the end of the fiscal year; and 
(2) the total number of individual members not 
in units organized to serve as units of the Selected 
Reserve of such component who are on active duty 
(other than for training or for unsatisfactory partici-
pation in training) without their consent at the end 
of the fiscal year. 
Whenever such units or such individual members are re-
leased from active duty during any fiscal year, the end 
strength prescribed for such fiscal year for the Selected Re-
serve of such reserve component shall be increased propor-
tionately by the total authorized strengths of such units and 
by the total number of such individual members. 
SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE 
DUTY IN SUPPORT OF THE RESERVE COMPO-
NENTS. 
Within the end strengths prescribed in section 411(a), 
the reserve components of the Armed Forces are authorized, 
as of September 30, 2007, the following number of Reserves 
to be serving on full-time active duty or full-time duty, in 
the case of members of the National Guard, for the purpose 
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