From FY2006 through FY2010, Congress relied on the Department of Defense (DOD) to fund small-scale security and stabilization activities carried out by the State Department and USAID to prevent or stabilize conflict situations abroad. The "Section 1207" authority used for this funding expired at the end of FY2010. Congress first provided DOD with "Section 1207" authority in 2005. Section 1207 of the National Defense Authorization Act [NDAA] for Fiscal Year 2006, P.L. 109-163 , provided authority for DOD to transfer to the State Department up to $100 million in defense articles, services, training or other support in FY2006 and again in FY2007 to use for reconstruction, stabilization, and security activities in foreign countries. This authority was first extended through FY2008 by Section 1210 of the FY2008 NDAA ( P.L. 110-181 ) and again extended through FY2009 by Section 1207 of the FY2009 Duncan Hunter NDAA ( P.L. 110-417 ). The FY2009 Duncan Hunter NDAA provided special authority for up to $50 million to be spent under Section 1207 for Georgia, in addition to the up to $100 million authorized for other countries. Congress extended the $100 million transfer authority for one last time, through FY2010, in action on the FY2010 NDAA ( P.L. 111-84 ). Section 1207 authority was used to fund activities of the State Department's Office of the Coordinator for Reconstruction and Stabilization (S/CRS, established in 2004) and activities implemented by other agencies that were coordinated by S/CRS, including activities of USAID. These funds have supported activities in 14 countries and in two regions. (For further information on these countries and projects, see the text below and Table 1 at the end of this report.) According to a United States Institute of Peace (USIP) report, Section 1207 was introduced "in response to requests from Defense Secretary Donald Rumsfeld and Secretary of State Condoleezza Rice to help jump start S/CRS by providing authorization and funding for projects that would involve interagency coordination. This action was taken in recognition of the fact that Congress was unable to pass a State Department authorization bill that would authorize S/CRS to conduct a comparable program and "because of the perception that it was easier to obtain funding from Congress" in the DOD bill rather than the State Department bill. Section 1207 authority required that any services, defense articles, or funds provided or transferred to the Secretary of State comply with the authorities and limitations of the Foreign Assistance Act of 1961, the Arms Export Control Act, or any law making appropriations to carry out such Act. The Secretary of Defense was required to notify congressional armed services, foreign affairs, and appropriations committees when the authority was exercised; the notification had to be prepared "in coordination" with the Secretary of State. Section 1207 funds could not be used to support the budgets of foreign governments. Section 1207 legislation did not specify a funding source. From FY2006 to FY2008, DOD tapped operations and maintenance (O&M) funds from the three military services and from the DOD defense-wide account to make these transfers. For FY2009, Congress appropriated $100 million specifically for Section 1207 funding, although it had authorized up to $150 million in Section 1207 spending. For FY2010, Congress indicated that $97.09 million should be allocated for Section 1207 uses from the O&M Defense-wide, Defense Security Cooperation Agency (DSCA) appropriation. In FY2006, DOD transferred $10 million to the State Department for assistance to Lebanon in the midst of the Lebanese conflict. According to a spokesperson for S/CRS, DOD lacked the funds for further transfers through this authority in FY2006, even though the authorized amount was $100 million. In FY2007, DOD transferred a total of $99.7 million to the State Department for programs in seven countries and regions. DOD described the projects funded in FY2007 as "a few small focused activities in various critical countries/regions to demonstrate proof of concept" and judged that while largely successful, "most could have more significant impact if continued or expanded." Countries benefiting from FY2007 Section 1207 funds were Colombia, Haiti, Nepal, Somalia, and Yemen. In addition, FY2007 funds supported regional activities in Southeast Asia and in the Trans-Sahara region. In FY2008, DOD provided $100 million in transfers from the DOD budget. This included $50 million for Georgia and $50 million for activities in six other countries: Afghanistan, Colombia, Democratic Republic of Congo, Lebanon, Sri Lanka, and Tajikistan. In FY2009, DOD transferred a total of $143.3 million to the State Department: $50 million for activities in Georgia and $93.3 million for activities in 11 other countries. The other countries are Bangladesh, Colombia, Democratic Republic of Congo, Kenya, Lebanon, Morocco, Panama, Paraguay, Philippines, Sri Lanka, and Uganda. FY2010 Section 1207 funding totaled $92.2 million. This was used for activities in eight countries: Democratic Republic of the Congo, Ecuador, Guatemala, Kyrgyz Republic, Liberia, Somalia, Timor-Leste, and Yemen. Section 1207 authority was the result of a Senate floor amendment offered by Senator James Inhofe to the Senate version of the FY2006 NDAA ( S. 1042 ), which would have provided funding up to $200 million per fiscal year. (For FY2006, the Administration had asked for $200 million for a State Department Conflict response fund, but neither authority nor funding was provided in non-DOD legislation.) Conferees on the FY2006 DOD authorization bill stated in their explanatory statement ( H.Rept. 109-360 ), that they were providing "a temporary authority ... to the Department of State until S/CRS is fully stood up and adequately resourced." Further, the conferees on that bill stated that they were not inclined to continue authorizing DOD funds to enable the State Department to "fulfill its statutory authorities." Subsequently, the Senate Armed Services Committee (SASC), in its report on S. 1547 ( S.Rept. 110-77 ), the Senate version of the FY2008 NDAA, described Section 1207 as a "pilot project." In addition to extending the authority through FY2008, Section 1210 of the FY2008 NDAA ( P.L. 110-181 ) augmented the role played by the Secretary of Defense. Under the FY2006 NDAA, the Secretary of Defense's role was limited to providing services and transferring defense articles and funds to the Secretary of State. The FY2008 NDAA included a provision requiring the Secretary of State to "coordinate with the Secretary of Defense in the formulation and implementation of a program of reconstruction, security, or stabilization assistance to a foreign country that involves the provision of services or transfer of defense articles or funds" under this authority. In action on the FY2009 NDAA ( P.L. 110-417 , signed into law October 14, 2008), Congress extended the $100 million Section 1207 transfer authority for one fiscal year, through FY2009. In a March 20, 2008, letter, DOD requested that Congress double Section 1207 authorized funding to $200 million per year, extend the authority for five fiscal years, and broaden the authority to permit DOD to provide that services or transfer defense articles and funds to the head of any U.S. government department or agency, not just the Department of State. As reported by SASC, its version of the FY2009 NDAA ( S. 3001 ) would have doubled the authorized amount to $200 million, as requested by DOD, and would have extended Section 1207 authority three years, through September 30, 2011. The conference version of the bill conformed to the House Armed Services Committee (HASC) version of the FY2009 NDAA ( H.R. 5658 ), which did not change the authorized amount and provided for a one-year extension. Nevertheless, Congress did approve a special additional authority under Section 1207 to provide up to $50 million in Section 1207 assistance to Georgia in FY2009. In addition, Congress amended the original legislation to prohibit the use of Section 1207 funds to support the budgets of foreign governments. In early May, DOD indicated in the DOD Summary Budget Justification document that it was requesting a $200 million appropriation for Section 1207 FY2010 funding. Nevertheless, in action on the FY2010 NDAA, Congress again extended existing authority for up to $100 million in transfer authority through September 30, 2010. ( P.L. 111-84 , signed into law October 28, 2009). As noted above, congressional appropriators indicated that $97.09 million should be allocated for Section 1207 spending from DSCA appropriations in the Department of Defense Appropriations Act, 2010 ( P.L. 111-118 , signed into law December 19, 2009, H.Rept. 111-380 , December 15, 2009). In its February 2010 defense budget request, DOD did not ask for continued Section 1207 funding or authority. Instead, the State Department's FY2011 Foreign Assistance budget request asked for $100 million for a Complex Crises Fund, established in 2009 by Congress as a USAID account, "to respond to emerging or unforeseen crises through support for reconstruction, security, or stabilization needs." It notes that this fund is "similar to Section 1207 Authority." The Obama Administration decision to request Section 1207-type funding under the Foreign Assistance account mooted further discussion of Section 1207 authority.