On January 10, 2002, the President signed P.L. 107-117 , the FY2002 DOD Appropriations Act( H.R. 3338 ). On December 20, 2001, the House and the Senate passed H.R. 3338 by 408 to 6 and 94 to 2, respectively. In addition to providing the fundingrequested by the Administration for DOD, the act allocates $20 billion in Emergency TerrorismResponse supplemental ( P.L. 107-38 ) funding among all federal agencies to combat terrorism andprovide aid and recovery to the victims of the attacks. The debate on the FY2002 DOD appropriations act centered on the allocation of the $20 billion in funding to combat terrorism. The conferees resolved the significant differences betweenthe House and Senate versions by shifting $4.3 billion in funding requested by the Administrationfor DOD to non-defense agencies to combat terrorism and provide aid to New York city. Efforts inboth houses to increase funding for antiterrorism beyond the $20 billion already enacted in theemergency supplemental failed after President Bush threatened to veto any bill that exceeded thatamount. The final version of the bill provides $317.2 billion to the Department of Defense in regularappropriations. The DOD Authorization Act ( S. 1438 ) was passed on December 13 and also provided the amount requested by the Administration. The authorizers resolved the chief item ofcontention - base closures - by delaying the date to 2005. There was little controversy about the total amount of regular appropriations for DOD. Along with funds for military construction and other defense-related programs, the $317.2 billion for DODin the final version of H.R. 3338 provides $343.3 billion, about the same amount intotal as requested by the Administration. Because of the recession that began last spring, along withaccommodating the full defense request, emergency spending to combat terrorism, and lower taxrevenues because of the tax act, funding government expenditures in FY2002 will require not onlyusing all of the social security surplus but also returning to deficit spending. Congress provides funding for national defense programs in several annual appropriationsmeasures, the largest of which is the defense appropriations bill. Congress also acts every year ona national defense authorization bill, which authorizes programs funded in all of the regularappropriations measures. The authorization bill addresses defense programs in almost precisely thesame level of detail as the defense-related appropriations, and congressional debate about majordefense policy and funding issues usually occurs mainly in action on the authorization. Because thedefense authorization and appropriations bills are so closely related, this report trackscongressional action on both measures. The annual defense appropriations bill provides funds for military activities of the Department of Defense (DOD), including pay and benefits of military personnel, operation and maintenance ofweapons and facilities, weapons procurement, and research and development, as well as for otherpurposes. Most of the funding in the bill is for programs administered by the Department of Defense, though the bill also provides (1) relatively small, unclassified amounts for the Central IntelligenceAgency retirement fund and intelligence community management, (2) classified amounts for nationalforeign intelligence activities administered by the CIA and by other agencies as well as by DOD, and(3) very small amounts for some other agencies. Five other appropriations bills also provide fundsfor national defense activities of DOD and other agencies including: the military construction appropriations bill, which finances constructionof military facilities and construction and operation of military family housing, all administered byDOD; and the energy and water development appropriations bill, which funds atomicenergy defense activities administered by the Department of Energy. the VA-HUD-independent agencies appropriations bill, which finances civildefense activities administered by the Federal Emergency Management Agency, activities of theSelective Service System, and DOD support for National Science Foundation Antarctic research; the Commerce-Justice-State appropriations bill, which funds nationalsecurity-related activities of the FBI, the Department of Justice, and some other agencies; and the transportation appropriations bill, which funds some defense-relatedactivities of the Coast Guard. On January 10, 2002, the President signed P.L. 107-117 ( H.R. 3338 ), the FY2002DOD Appropriations Act, including both the regular funding for defense and the allocation of $20billion among all government agencies that was provided in the Emergency Terrorism Responsesupplemental to combat terrorism (see H.Rept. 107-350 and Table 1a ). On December 20, 2001,the House and the Senate passed H.R. 3338 / P.L. 107-117 , the conference version of theFY2002 Department of Defense (DOD) appropriations bill. Although Congress provided $343.3billion for National Defense, close to the total requested by the Administration, Congressre-allocated the funding - providing $1.7 billion less than requested for the Department of Defense,and $500 million more for military construction, and $750 million more for the Department ofEnergy's defense programs. (2) Of the $20 billion inemergency supplemental funding that wasallocated in H.R. 3338 , DOD received $3.5 billion. Although P.L. 107-117 ( H.R. 3338 ) makes various changes to the Administration's FY2002 request for regular DOD appropriations, the Administration's basic priorities are preserved,including a substantial increase in overall resources for defense, a large increase in military pay andfull funding of defense health benefits, and a major jump in spending for missile defense. Congressdoes, however, reduce spending on operations and maintenance on the basis of various pricingadjustments and efficiency measures in order to accommodate increases to the procurement andRDT&E accounts (see below for a fuller discussion). A week earlier, on December 13, 2001, both houses passed S. 1438 , the conference version of the FY2002 DOD authorization bill (see S.Rept. 107-333 and Table 1b ). The confereesresolved the chief issue in contention - authorizing another round of base closures as requested bythe Administration - by delaying the date to 2005. In addition, the authorizers set upward limits onthe amounts that could be provided in the emergency supplemental to combat terrorism. Table 1a. Status of FY2002 Defense Appropriations Table 1b. Status of FY2002 DefenseAuthorization During floor consideration of the bill in both houses, the debate centered on the adequacy and allocation of the $20 billion in emergency supplemental funding to combatterrorism. In response to concerns raised by members that more funding was needed for therecovery of New York and homeland defense, the conferees shifted $4.3 billion from fundingrequested by the Administration for DOD to those purposes. Several members suggested thatthe Administration could request additional funding for defense in a FY2002 supplemental.Earlier attempts to provide funding above the $20 billion already appropriated were stymiedby the threat of a presidential veto. Of the total $40 billion provided by the emergency supplemental, DOD received $17.5 billion, including $14 billion that was allocated at the discretion of the President and $3.5billion that was allocated in the FY2002 DOD appropriations act (see below). (3) Non-defenseagencies received a total of $22.5 billion, including $16.5 billion that was allocated in theFY2002 DOD bill. Within that $16.5 billion for non-defense agencies, the majorprogrammatic emphasis is for: recovery for New York and other affected areas ($5.0 billion); bioterrorism $2.8 billion); and investigatory activities ($2.3 billion). (See discussion below and CRS Report RL31187(pdf) , Terrorism Funding: Congressional Debate on Emergency Supplemental Allocations, by [author name scrubbed] and [author name scrubbed]). Total funding appropriated for the national defense function in FY2002, including the $3.5 billion of funding from the Emergency Terrorism Response supplemental that wasallocated in the DOD bill, is $346.8 billion (see Table 2 ). DOD also received $14.0 billionin funding from the Emergency Terrorism Response supplemental that was distributed by thePresident (see below). (4) Those funds are includedin DOD's FY2001 appropriations.Including those funds along with $5.8 billion provided last summer in a non-emergencysupplemental, funding for national defense in FY2001 totaled $330.5 billion, or $16.3 billionbelow the total for FY2002. Since the advent of the new Administration, resources available to DOD have increased by a total of $56 billion, including: $5.8 billion appropriated in the non-emergency supplemental in late June 2001; $32.6 billion increase for FY2002 provided by Congress in the regulardefense appropriations as requested by the Administration; and $17.5 billion in emergency supplemental funding to combatterrorism. President Bush's increase in resources for defense of $56 billion or 18% in real growth for defense within a year is comparable to the $61.6 billion, or 19% real growth in defenseresources, added by President Reagan between 1981 and 1982 in his first year in office (allfigures in FY2002 dollars). (5) In comparison to growthin defense spending between 1965 and1966, the beginning of the buildup for the Vietnam war, the additions by President Bush aresomewhat larger - $56 billion compared to $53.5 billion (in 2002 $) for Vietnam.