The House and Senate completed the fiscal year (FY) 2000 defense appropriations bill on October 7th. The House passed the conference bill, 372-55, on October 13th, the Senate will soon vote on the bill and send it to the president. It is not clear if the president will sign the bill which provides $267.8 billion for defense, including $7.2 billion in contingent “emergency” appropriations. To be used, this latter sum must be designated as emergency funding by the president and, once designated as such, will not count toward the 1997 balanced budget agreement’s caps on discretionary spending. Another $1.838 billion in FY 2000 contingent emergency funding was already provided in the May 1999 Kosovo supplemental. Combined with defense-related funding in the FY 2000 energy & water, military construction and several other appropriations bills, overall funding for national defense will total some $289.4 billion in FY 2000, including about $9 billion in contingent emergency appropriations. The president's February request was for $280.5 billion.

Highlights

• Procurement: The defense appropriations bill would provide $54.4 billion, $1.4 billion above the administration's $53.0 billion request for procurement. The House appropriations bill would have provided $53.0 billion and the Senate version, $54.9 billion.

• Research and Development (R&D): The administration requested $34.3 billion in research and development (R&D) funds, less than the $36.9 billion contained in the House bill and the $36.2 billion in the Senate bill. The defense appropriations conferees agreed to $37.4 billion, a $3 billion increase over the request.

• Kosovo Supplemental: In addition to the funding provided in the FY 2000 defense appropriations conference bill, Congress appropriated $1.838 billion in FY 2000 contingent emergency funding in the FY 1999 Kosovo supplemental enacted in May. This funding would cover the FY 2000 costs of the pay raise and retirement changes approved in the defense authorization act. But—because of its emergency designation—the funding would not count toward the FY 2000 discretionary spending caps specified in the 1997 balanced budget agreement.

• Military Personnel: The defense appropriations conference bill would provide $72.0 billion for military personnel, $1.8 billion less than the president's $73.7 billion request. This reduction is offset by $1.838 billion in FY 2000 funding that was included in the FY 1999 Kosovo supplemental. The defense authorization act approved a 4.8 percent pay raise, 0.4 percent higher than the request. The defense appropriations conference bill plus the Kosovo supplemental would provide funding for the pay raise.

• Ballistic Missile Defense (BMD): The administration requested about $4.25 billion in funding for BMD programs in FY 2000 (including $550 million in contingent emergency funding approved in the FY 1999 emergency supplemental). In addition to the $550 million, the House appropriations bill would have provided $3.694 billion and the Senate, $4.174 billion. The defense appropriations conference bill would provide $3.98 billion in new funding. As recommended in the House bill, the conference bill would also direct how $230 million of the contingent emergency funding be spent. (The supplemental did not specify which BMD programs should receive added monies.)

• Military Construction: The president signed the military construction appropriations bill into law on August 17, 1999. It provides $8.4 billion, $2.9 billion more than requested: $4.8 billion for military construction and $3.6 billion for family housing. This is consistent with the increases included in both the House and Senate versions of this bill, both of which added $2.5 billion to the $3.0 billion military construction request and $471 million to the $3.6 billion family housing request. For the most part, this change reflects Congress’ rejection of the administration’s proposal to incrementally fund military construction projects in FY 2000, rather than a significant expansion of military construction and family housing projects.

• Department of Energy (DoE): The administration's $12.4 billion request for DoE defense activities was reduced by $178 million to $12.2 billion for defense-related activities in the energy and water appropriations bill signed into law September 29, 1999.

• Conference bill additions: $375 million for partial funding of the LHD-8 amphibious assault ship (altogether this ship is projected to cost over $1.5 billion), $300 million to procure five F-15s (none requested), $15 million more to develop an alternative engine for the Joint Strike Fighter, $65 million for one unrequested KC-130J aircraft, $60 million for one unrequested MV-22 Osprey tilt-rotor aircraft, $116 million for 11 unrequested UH-60 helicopters, $76 million for four unrequested CH-60 helicopters, and an unrequested $40 million addition to the RAH-66 Comanche development.

• F-22 aircraft: The administration requested $1.222 billion in R&D funding, $1.575 billion to procure six aircraft in FY 2000 and $277 million in advance procurement funding for 10 aircraft in FY 2001. The conference bill would fully fund the R&D request and provide another $1 billion that could be used for additional R&D, to begin construction of the six requested aircraft (though as test—rather than low-rate initial production—aircraft), or as advance procurement funding (up to a maximum of $277 million). In addition, the bill provides $300 million to cover termination costs, or other contractual requirements if the program is not terminated. See Table

The Center for Strategic and Budgetary Assessments (CSBA) is an independent policy research institute established to promote innovative thinking about defense planning and investment strategies for the 21st century. The center is directed by Dr. Andrew F. Krepinevich.

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