A bill to amend title 10, United States Code, to authorize the Secretary of the Air Force to contract with air carriers to acquire civil aircraft to provide greater cargo capacity for national defense purposes in the event of war or national emergency, and to modify existing passenger aircraft for this purpose.

(Reported to House from the Committee on Armed Services with amendment, H. Rept. 95-776)

Authorizes the Secretary of the Air Force to enter into contracts to include cargo airlift characteristics suitable for defense purposes in new aircraft being manufactured for passenger and cargo use and to modify existing passenger aircraft to incorporate such characteristics for such purpose.

Stipulates that such aircraft shall be used for defense purposes in the event the full Civil Reserve Air Fleet is activated.

Sets forth the percentage of the costs of construction or modification which the Federal government shall bear pursuant to such contracts.

Requires the Secretary to report annually to the Committees on Armed Services of the Senate and House of Representatives regarding such program.