Appropriations bill FY98, Defense

(On June 25, 1998, the Supreme Court ruled that the Line Item Veto Act (Public Law 104-130) is unconstitutional, thus restoring provisions that had been cancelled as summarized below.)

(On October 14, 1997, the President exercised his line item veto authority to cancel $144 million in discretionary budget authority for 13 projects in this Act, including one Air Force operation and maintenance and procurement project, four Army research, development, test, and evaluation (RDT&E) projects, two Navy RDT&E projects, three Air Force RDT&E projects, and three Defense-wide RDT&E projects. The following summary reflects the enacted version of H.R. 2266 as modified by the line item veto cancellations. (Note: The high degree of specificity of the items cancelled precluded their inclusion in the original law's summary. As a result, the original law's summary and the summary of the law after the item vetoes are identical. For more information on the specific items vetoed, see the text of the conference report for H.R. 2266, H.Rept. 105-265, and Presidential Cancellation Numbers 97-42 through 97-55.))

TABLE OF CONTENTS:

Title I: Military Personnel

Title II: Operation and Maintenance

Title III: Procurement

Title IV: Research, Development, Test and Evaluation

Title V: Revolving and Management Funds

Title VI: Other Department of Defense Programs

Title VII: Related Agencies

Title VIII: General Provisions

Department of Defense Appropriations Act, 1998 - Title I: Military Personnel - Appropriates funds for FY 1998 for active-duty and reserve personnel in the Army, Navy, Marine Corps, and Air Force and for National Guard personnel in the Army and Air Force.

Title II: Operation and Maintenance - Appropriates funds for FY 1998 for the operation and maintenance (O&M) of the Army, Navy, and Air Force (including a transfer of funds in each case), the Marine Corps, the defense agencies, the reserve components, and the Army and Air National Guards. Appropriates funds for: (1) overseas contingency operations (including a transfer of funds); (2) the U.S. Court of Appeals for the Armed Forces; (3) environmental restoration for the Army, Navy, Air Force, and defense-wide (including a transfer of funds in each case); (4) environmental restoration at former defense sites (including a transfer of funds); (5) overseas humanitarian, disaster, and civic aid; (6) nuclear threat reduction programs with respect to republics of the former Soviet Union; and (7) quality of life enhancements, defense.

Title III: Procurement - Appropriates funds for FY 1998 for procurement by the armed forces and its reserve components of aircraft, missiles, weapons, tracked combat vehicles, ammunition, shipbuilding and conversion, and for other procurement.

Appropriates funds for defense-wide procurement and for National Guard and reserve equipment.

Title IV: Research, Development, Test and Evaluation - Appropriates funds for FY 1998 for research, development, test and evaluation by the armed forces and defense agencies. Earmarks: (1) Navy V-22 funds to meet unique requirements of the Special Operations Forces; and (2) specified defense-wide funds for the Sea-Based Wide Area Defense (Navy Upper-Tier) program.

Appropriates funds for the Directors of Test and Evaluation and Operational Test and Evaluation.

Title V: Revolving and Management Funds - Appropriates funds for: (1) the defense working capital funds; and (2) programs under the National Defense Sealift Fund.

Title VI: Other Department of Defense Programs - Appropriates funds for: (1) the Department of Defense (DOD) medical and health care programs; (2) the destruction of lethal chemical agents and munitions; (3) drug interdiction and counter-drug activities, defense (including a transfer of funds); and (4) expenses and activities of the Office of the Inspector General in carrying out the Inspector General Act of 1978.

Title VII: Related Agencies - Appropriates funds for: (1) the Central Intelligence Agency Retirement and Disability System Fund; (2) expenses of the Intelligence Community Management Account (including a transfer of funds); (3) authorized payments to the Kaho'olawe Island Conveyance, Remediation, and Environmental Restoration Trust Fund; and (4) national security scholarships, fellowships, and grants (using funds derived from the National Security Education Trust Fund).

Title VIII: General Provisions - Specifies authorized, restricted, and prohibited uses of appropriated funds.

(Sec. 8008) Authorizes procurement funds appropriated under this Act to be used for multiyear procurement contracts for the Apache Longbow radar, AV-8B aircraft, and Family of Medium Tactical Vehicles.

(Sec. 8010) Prohibits during FY 1998 the management by end strengths of DOD civilian personnel.

(Sec. 8019) Authorizes the Secretary of Defense (Secretary) to establish with host governments of NATO-member countries an account for the deposit of residual value amounts negotiated in the return of U.S. military installations to such countries.

(Sec. 8033) Authorizes DOD to incur up to $350 million in obligations for DOD personnel compensation, military construction projects, and supplies and services in anticipation of receipts of contributions from the government of Kuwait.

(Sec. 8034) Earmarks funds from this Act for the Civil Air Patrol.

(Sec. 8035) Prohibits the use of funds from this Act to establish a new DOD federally funded research and development center (FFRDC). Limits the Federal compensation to be paid to DOD FFRDC members or consultants. Prohibits the use of FY 1998 DOD FFRDC funds for charitable contributions, new building construction, cost-sharing payments for projects funded by Government grants, or absorption of cost overruns. Limits the staff years of technical effort that may be funded for DOD FFRDCs from FY 1998 funds. Directs the Secretary to report to the defense committees concerning such staff year allocations.

(Sec. 8041) Reduces by $300 million the total amounts appropriated in titles I through IV of this Act to reflect savings from the DOD use of advisory and assistance services.

(Sec. 8043) Reduces by 1.5 percent the amounts provided in all appropriation accounts in titles III and IV of this Act. Requires the Undersecretary of Defense (Comptroller) to report to the defense committees on the specific funding reductions allocated to each appropriation category. Reduces by $474 million the total amount appropriated in title IV, requiring an allocation report from the Undersecretary.

(Sec. 8046) Directs the President to include within each fiscal year budget the amounts requested for administrative activities of DOD, the military departments, and the defense agencies.

(Sec. 8053) Prohibits the use of funds: (1) for the modification of an aircraft, weapon, ship, or other equipment that the military department concerned plans to retire or otherwise dispose of within five years after completion of the modification; (2) to transport chemical munitions to the Johnston Atoll for storage or demilitarization (with an exception and an authorized wartime waiver by the President); (3) by a DOD entity without compliance with the Buy American Act; (4) for assistance to the Democratic People's Republic of Korea unless specifically appropriated for such purpose; and (5) to reduce the civilian medical and medical support personnel assigned to military treatment facilities below the September 30, 1996 level.

(Sec. 8056) Earmarks funds appropriated under this Act for the mitigation of adverse environmental impacts on Indian lands resulting from DOD activities.

(Sec. 8063) Authorizes DOD to lease real and personal property at the Adak Naval Air Facility, Alaska.

(Sec. 8064) Rescinds specified funds from various accounts under prior defense appropriations Acts.

(Sec. 8078) Directs the Army, during the current fiscal year, to use the former George Air Force Base as the airhead for the National Training Center at Fort Irwin (California).

(Sec. 8079) Directs the Secretary to report quarterly to specified congressional committees setting forth all costs incurred by DOD in implementing or supporting United Nations (UN) Security Council resolutions.

(Sec. 8080) Prohibits FY 1997 DOD funds from being obligated or expended to transfer to another nation or international organization defense articles or services for use in any UN peacekeeping or peace enforcement operation, or for any other international peacekeeping, peace enforcement, or humanitarian assistance operation, unless specified congressional committees are given 15 days' advance notice.

(Sec. 8081) Directs the Secretary, to the extent authorized by law, to issue loan guarantees in support of U.S. defense exports not otherwise provided for, with a contingent liability limit of $15 billion. Requires quarterly reports to specified congressional committees on such loan guarantees.

(Sec. 8088) Provides that a specified amount appropriated for Air Force aircraft procurement under a prior-year defense appropriations Act which was obligated for the B-2 aircraft program shall remain available for expenditure until the end of FY 2003.

(Sec. 8090) Directs the Secretary, upon the enactment of this Act, to make specified transfers between various DOD appropriation accounts.

(Sec. 8091) Directs the Under Secretary of Defense (Comptroller) to report to the defense committees concerning any activity for which the FY 1999 budget request was reduced because the Congress appropriated funds above the President's budget request for that activity for FY 1998.

(Sec. 8092) Prohibits DOD funds from being used to reimburse a defense contractor for restructuring costs associated with a business combination unless: (1) certain DOD cost savings are achieved as a result of such restructuring; and (2) a related report required under prior law is submitted to the Congress. Directs the Comptroller General to submit to the Congress an analysis and breakdown of such restructuring costs to DOD.

(Sec. 8094) Authorizes the Secretary to waive reimbursement of certain educational costs of the Asia-Pacific Center for Security Studies for military officers and civilian officials of foreign countries if determined to be in the national security interest.

(Sec. 8097) Authorizes appropriations to the Navy for a grant for the refurbishment of the former U.S.S. Intrepid.

(Sec. 8100) Authorizes appropriations for the O&M of Fisher houses.

(Sec. 8104) Requires DOD to submit to the defense committees a budget justification for the active and reserve military personnel accounts.

(Sec. 8105) Reduces by $100 million the total amount appropriated under this Act, to be derived from the various military O&M accounts.

(Sec. 8106) Reduces by $75 million the total amount appropriated under title III to reflect savings achieved as the result of the repeal of a Federal provision requiring certain contractor guarantees with respect to major weapon systems.

(Sec. 8107) Authorizes the Secretary of the Army to exchange or sell one Army C-20 aircraft and apply the proceeds to the acquisition of one C-37 aircraft.

(Sec. 8109) Earmarks funds from this Act to assist a pilot project that will facilitate the transfer of commercial cruise ship shipbuilding technology and expertise to U.S. shipbuilding yards, utilize the experience and expertise of existing U.S.-flag cruise ship operators, and enable the operation of one U.S.-flag foreign-built cruise ship and two newly-constructed U.S.-flag cruise tooling to construct, or for the construction of, such vessels.

(Sec. 8110) Directs the Secretary to submit to the: (1) defense committees an aviation safety plan concerning navigational safety upgrades for all DOD aircraft; and (2) appropriations committees a report on alternatives for current theater combat simulations.

(Sec. 8113) Amends the Department of Defense Appropriations Act, 1997 to require, as of June 30, 1998, that each DOD disbursement in excess of $1 million (currently $3 million) be matched to a particular obligation before the disbursement is made.

(Sec. 8115) Expresses the sense of the Congress that all NATO member nations should contribute a proportionate share of the costs of the Partnership for Peace program and for any future costs attributable to NATO expansion. Requires each annual budget for FY 1999 and thereafter to separately identify all DOD costs incurred to support such expansion.

(Sec. 8117) Prohibits funds from this Act from being used to: (1) enter into or renew a contract with a contractor who has not submitted to the Labor Department its most recently required annual report concerning the employment of veterans; (2) approve or license the sale of the F-22 advanced tactical fighter to any foreign government; or (3) fund the United States Man and the Biosphere Program or related projects.

(Sec. 8120) Earmarks specified DOD funds for the payment of claims for loss or damage to personal property suffered by military personnel residing in the vicinity of Grand Forks Air Force Base, North Dakota, as a direct result of flooding in the Red River Basin during April and May of 1997.

(Sec. 8121) Earmarks specified Navy funds for a program to demonstrate the expanded use of multitechnology automated reader cards throughout the Navy and Marine Corps.

(Sec. 8122) Directs the Secretary to report to the defense committees concerning U.S. costs for the admission of the Czech Republic, Poland, and Hungary to NATO for FY 1998 through 2002, as well as any U.S. commitments for the admission of other new members.

(Sec. 8123) Authorizes the Secretary to waive limitations concerning procurements from a foreign country if: (1) they would invalidate either cooperative agreements entered into between DOD and the foreign country or arrangements for the reciprocal procurement of defense items; and (2) the country does not discriminate against the same or similar defense items produced in the United States for that country.

(Sec. 8124) Expresses the sense of the Congress that the Senate ratify NATO enlargement, that the proportional U.S. share of the NATO common budget should not increase, and that if any NATO member nation does not pay its share, the United States shall not pay either.

(Sec. 8125) Finds that the Defense Base Closure and Realignment Commission directed the transfer of only ten electro-magnetic test environment systems from Eglin Air Force Base, Florida to Nellis Air Force Base, Nevada.

(Sec. 8126) Expresses the sense of the Senate that: (1) the Secretary should ensure that printing costs of DOD and the military services are held to the lowest amount possible; (2) DOD should strictly comply with the Printing and Binding Regulations; and (3) the DOD budget submission for FY 1999 should reflect the savings that will result from such stricter printing guidelines.

(Sec. 8127) Rescinds specified funds under prior defense appropriations Acts, with conditions and a required report from the Under Secretary of Defense (Comptroller) on the programs, projects, and activities proposed for rescission.

(Sec. 8129) Authorizes the Secretary to enter into a contract during FY 1998 for the procurement of four submarines under the New Attack Submarine Program. Requires a teaming of contractor performance between the Electric Boat Corporation and the Newport News Shipbuilding and Dry Dock Company.

(Sec. 8130) Appropriates funds for defense-wide O&M to be used only for the establishment of the 21st Century National Security Study Group after the completion and implementation of a memorandum of agreement concerning the study's scope. Requires such memorandum to be completed by December 15, 1997.

(Sec. 8131) Establishes an independent panel to evaluate and report to the President and the Congress on the adequacy of current planning for U.S. long-range air power and the requirement for continued low-rate production of B-2 stealth bombers.

(Sec. 8132) Prohibits funds appropriated in this Act from being made available for the deployment of U.S. troops in Bosnia and Herzegovina after June 30, 1998, unless the President certifies to the Congress that the continued presence of such troops is required in order to meet U.S. national security interests.