TABLE OF CONTENTS: 
     Title I:  Defense 
     Title II:  Other Discretionary Accounts 
     Title III:  Entitlements 
Title I:  Defense
 - Directs the Secretary of Defense to reduce: (1) by FY 2004 the Department of Defense (DOD) strategic nuclear force to include a maximum of 300 Minuteman III intercontinental ballistic missiles; and (2) DOD theater missile defense programs by terminating the Navy sea-based area theater missile defense system, the Army Medium Extended Air Defense System, the Air Force airborne laser for destruction of missiles system, and the Space and Missile Tracking System. 
(Sec. 102) Prohibits funds from being appropriated to DOD for fiscal years after 1998 for the production of Trident II (D-5) missiles for the Navy.  Requires the Secretary to retire eight Trident I submarines during FY 2001 through 2004. 
(Sec. 103) Prohibits funds from being appropriated to DOD for fiscal years after 1998 for:  (1) assistance to Israel for development of the Arrow missile; and (2) research, development, test, and evaluation or for procurement for the Marine Corps V-22 Osprey aircraft program. 
(Sec. 105) Requires the Secretary to retire 20 Air Force KC-135E aircraft during each of FY 1999 through 2003. 
(Sec. 106) Directs the Secretary to assign to a unit of the armed forces members who are:  (1) in transit during a scheduled move from one military installation to another; or (2) undergoing military training other than basic training. 
(Sec. 107) Amends the Arms Export Control Act to provide that any sale of major defense equipment approved under such Act shall include an appropriate charge for costs incurred by the United States in the research, development, and production of such equipment.  Provides an exception.  Repeals a provision of such Act which allows for the recovery of certain administrative expenses when such expenses are neither salaries of U.S. armed forces nor unfunded estimated costs of civilian retirement and other benefits. 
Title II:  Other Discretionary Accounts
 - Requires the Administrator of the National Aeronautics and Space Administration (NASA) to terminate U.S. participation in the International Space Station program.   Authorizes appropriations for termination costs. 
(Sec. 202) Amends the Rural Electrification Act of 1936 to require the interest rates on loans and advances under such Act to equal the coupon equivalent yield on Treasury obligations of comparable maturity at the most recent Treasury auction.  Provides for loan origination fees from borrowers of loans made under such Act. 
Eliminates references to existing interest rates under such Act. 
(Sec. 203) Amends the National Forest Management Act of 1976 to eliminate below-cost timber sales from National Forest System lands. 
(Sec. 204) Repeals provisions of the Agricultural Trade Act of 1978 regarding the foreign market development cooperator program. 
(Sec. 205) Repeals provisions of the Food, Agriculture, Conservation, and Trade Act of 1990 regarding the Cochran Fellowship Program. 
(Sec. 206) Prohibits the NASA Administrator from obligating funds for the Advanced Subsonic Technology Program, High-Speed Research, or the National Aeronautics Facility. 
(Sec. 207) Repeals the Appalachian Regional Development Act of 1965 effective September 30, 1998. 
(Sec. 208) Amends the Tennessee Valley Authority Act of 1933 to prohibit the authorization of appropriations to carry out such Act after September 30, 1998. 
Title III:  Entitlements
 - Requires, for any arrangement for the sale of electric power entered into by a Federal Power Marketing Administration after October 1, 1998, that:  (1) the rate for the sale of power be the market rate established by competitive bidding and no discount be provided to any purchaser; and (2) no entity be entitled to any preference or priority right to contract for or purchase such power. 
Makes certain provisions of the Pacific Northwest Electric Power Planning and Conservation Act regarding a residential power exchange program inapplicable to arrangements for the purchase or sale of electric power entered into after October 1, 1998. 
Prohibits Federal Power Marketing Administrations from entering into or renewing a power marketing contract for a term that exceeds five years. 
(Sec. 302) Repeals provisions of the Agricultural Trade Act of 1978 regarding a market access program. 
(Sec. 303) Amends the Agricultural Act of 1949 to extend and increase tobacco price support program marketing assessments on producers, purchasers, and importers. 
(Sec. 304) Amends the Higher Education Act of 1965 to provide for the payment of in-school interest by certain student loan borrowers. 
(Sec. 305) Amends Federal veterans' provisions to increase from $2 to $5 the prescription drug copayment required from certain veterans. Extends such requirement through FY 2003.
Output: To reduce Federal spending in several programs.